Germany Urges EU to Ease Green Reporting Rules Amid Economic Struggles
Source: DairyNews.today
Germany has called on the European Union to ease its sustainability reporting requirements, citing the challenges faced by its economy, which is grappling with a downturn. The country is pushing for a delay in the implementation of the EU's Corporate Sustainability Reporting Directive (CSRD) and is seeking exemptions for small- and medium-sized businesses from the reporting obligations.
In a letter dated December 17, seen by Bloomberg, the German government requested a two-year postponement of the CSRD and proposed raising the thresholds for the reporting requirements, which include criteria related to net revenue, balance sheet size, and employee numbers. The letter stresses that these changes are necessary to alleviate the burden on businesses, particularly as Germany’s economy faces a second consecutive year of contraction, driven by reduced demand from key export markets such as China and the ongoing impact of high energy prices following Russia’s cessation of gas supplies due to the war in Ukraine.
The letter, sent to European Commissioner for Financial Services, Mairead McGuinness, and European Commission Executive Vice President Valdis Dombrovskis, was signed by four senior ministers from Chancellor Olaf Scholz’s coalition government. These include Vice Chancellor and Economy Minister Robert Habeck, a member of the Greens, as well as Finance Minister Joerg Kukies, Labor Minister Hubertus Heil, and Justice Minister Volker Wissing.
The push for regulatory adjustments is part of broader efforts to streamline sustainability regulations, as European Commission President Ursula von der Leyen recently announced initiatives to reduce bureaucratic red tape, including changes to the EU Taxonomy and the EU Supply Chain Directive. However, the German government stressed that these regulatory changes should not undermine the fundamental goals of the European Green Deal.
Germany's economy, Europe’s largest, faces growing challenges as a result of global economic pressures, including energy disruptions and a slowing export market. The country’s ruling coalition also faces internal political uncertainty, following the loss of its Bundestag voting majority in November. Chancellor Scholz's government is set to hold early elections in February, as the chancellor’s minority administration continues until the formation of a new government.
The letter, sent to European Commissioner for Financial Services, Mairead McGuinness, and European Commission Executive Vice President Valdis Dombrovskis, was signed by four senior ministers from Chancellor Olaf Scholz’s coalition government. These include Vice Chancellor and Economy Minister Robert Habeck, a member of the Greens, as well as Finance Minister Joerg Kukies, Labor Minister Hubertus Heil, and Justice Minister Volker Wissing.
The push for regulatory adjustments is part of broader efforts to streamline sustainability regulations, as European Commission President Ursula von der Leyen recently announced initiatives to reduce bureaucratic red tape, including changes to the EU Taxonomy and the EU Supply Chain Directive. However, the German government stressed that these regulatory changes should not undermine the fundamental goals of the European Green Deal.
Germany's economy, Europe’s largest, faces growing challenges as a result of global economic pressures, including energy disruptions and a slowing export market. The country’s ruling coalition also faces internal political uncertainty, following the loss of its Bundestag voting majority in November. Chancellor Scholz's government is set to hold early elections in February, as the chancellor’s minority administration continues until the formation of a new government.
