The European Parliament voted 318 to 309 to reject the Omnibus I simplification package, which aimed to reduce corporate reporting and due-diligence obligations. A secret ballot revealed deep divisions within the centrist coalition supporting the European Commission’s plan, delaying talks with EU governments and creating uncertainty for companies preparing for CSRD and CSDDD compliance.
What was rejected
The Parliament narrowly rejected a compromise on its negotiating position for the Commission’s Omnibus I package, intended to simplify and streamline sustainability reporting across the EU. The vote (318 against, 309 in favour, 34 abstentions) sends the proposal back to parliamentary committees and postpones planned discussions with the Council and Commission.
Proposals under Omnibus I
Launched in February 2025 as part of the Commission’s “simplification agenda,” Omnibus I sought to enhance competitiveness by easing reporting burdens. The package proposed changes to:
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CSRD: Raising the reporting threshold from 250 to 1,000 employees and introducing a €450 million revenue limit, which would have removed roughly 80% of companies from scope.
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CSDDD: Retaining the 1,000-employee threshold but focusing due diligence on direct business partners and limiting data requests from smaller suppliers.
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Other areas: EU Taxonomy and Carbon Border Adjustment Mechanism.
Why the deal failed
A compromise brokered by the centre-right EPP, Socialists and Democrats (S&D), and Renew Europe aimed to preserve main simplifications while avoiding deeper cuts demanded by the far right. However, dissent from some S&D and Renew members fractured the agreement during the secret ballot. Greens and The Left opposed the package for weakening the EU’s sustainability framework, while ECR and Patriots for Europe argued it did not go far enough in easing business obligations.
Political reactions
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EPP rapporteur Jörgen Warborn: “Businesses need clarity now” and urged swift progress.
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Parliament President Roberta Metsola: The vote shows the compromise “did not go far enough for some, and too far for others.”
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Greens MEP Kira Marie Peter-Hansen: Called the rejection “a success for democracy” and stated Parliament is “not ready to rubber-stamp a deal that weakens Europe’s sustainability framework.”
Next steps
The Parliament must now draft a new position and vote again at the plenary session in Brussels on 13 November 2025. Amendments will be tabled and voted on before trilogue negotiations with EU governments can begin. The Council adopted its position on 23 June, with institutions still aiming to finalise the legislation by end of 2025.
Until a final agreement is reached, companies preparing for CSRD and CSDDD compliance face continued uncertainty regarding reporting thresholds and the scope of due diligence.
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