Luxembourg Calls for Simplification of EU's Regulatory Framework

On Wednesday 12 March 2025, Luxembourg's Minister of the Economy, SMEs, Energy and Tourism, Lex Delles, attended the first meeting of the European Union's Competitiveness Council under the Polish Presidency in Brussels, Belgium.

In a press release, Luxembourg’s Ministry of the Economy stated that political news dominated the EU ministers’ discussions, which took place in the wake of the European Commission's announcement that it would increase customs duties on a large number of American products, a retaliatory measure in response to the tariffs imposed by the United States on steel and aluminium from the EU. The current situation of customs tariffs on both sides of the Atlantic is "regrettable", according to Minister Delles. He spoke in favour of increased support for the steel sector, which is already facing overcapacity on the global market and fierce competition: "Urgent action is needed to combat circumvention of the Carbon Border Adjustment Mechanism. Waiting until 2026 is too risky."

Minister Delles also called for the simplification of the EU's regulatory framework, which primarily requires simple common rules. "Our companies need to operate in a clear and simple environment, one that doesn't resemble a layered mess of divergent national rules. It is time to fully utilise the strength of the internal market," he said.

Minister Delles emphasised Luxembourg's support for the "omnibus" package of measures put forward by the European Commission, which aims to simplify the administrative and regulatory burdens set out in several European directives, including the "Duty of Vigilance" Directive and the Sustainability Reporting Directive. He stressed: "We must find simpler and more proportionate ways to achieve our political objectives, such as industrial decarbonisation and respect for human rights. It's not about diluting or undermining the objectives, but about allowing our companies to focus on what matters most by minimising red tape”.

The press release added that in the face of current geopolitical challenges, the 27 Member States must work together to create common legislative action: "one in, 27 out," as Minister Delles called it. He also urged the Member States to move forward quickly and to go further, through a harmonised approach. Territorial restrictions on supply are an example of the continued lack of an internal market: the European Union remains fragmented by structural barriers that prevent distributors from freely choosing their suppliers, he said. Minister Delles urged the Commission to present a legislative initiative aimed at banning these practices, which primarily affect SMEs and end consumers.

HOM