Brussels: The European Council has approved a proposal from the European Commission to simplify EU regulations aimed at enhancing the bloc’s competitiveness.

According to Emirates News Agency, the proposal, known as the ‘stop-the-clock’ directive, postpones the implementation deadlines for certain corporate sustainability reporting and due diligence requirements. It forms part of a broader package adopted by the European Commission in late February to streamline EU sustainability legislation.

Due to the significant impact on the business community, both the Council and the European Parliament prioritised the proposal to provide EU companies with legal certainty regarding their reporting and due diligence obligations.

EU lawmakers backed the Commission’s proposal to delay, by two years, the implementation of corporate sustainability reporting requirements for large companies that have not yet started reporting, and for listed small and medium-sized enterprises. It also includes a one-year postponement for the transposition deadline and the first phase of application of the Corporate Sustainability Due Diligence Directive, covering the largest firms.