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DRAFT REPORT (2026/2103(INI))

On the European Union regulatory fitness and subsidiarity and proportionality – report on Better Law-Making covering 2025 and 2026

JURI-PR-790903

Committee on Legal Affairs · Rapporteur: Jörgen Warborn

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✦ In short · AI summary of this text, generated 16 Oct 2026

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A draft report on EU regulatory fitness, subsidiarity and proportionality covering 2025 and 2026. It reaffirms subsidiarity and proportionality, backs 'simplicity by design' and a regulatory deep cleaning, and calls for stronger impact assessments, less gold-plating and a shift to 'one in, two out'. It asks the Commission to report twice yearly on codification, recast and repeal proposals, to run the deep cleaning beyond 2027, and to study mechanisms to offset companies' regulatory costs. It wants SME exemptions or simplified regimes, the 'once-only' and 'digital-by-default' principles, fewer delegated and implementing acts, and real-world testing of draft legislation.

Committee position. The rapporteur proposes that Parliament back 'simplicity by design' and the regulatory deep cleaning, strengthen impact assessments and the Regulatory Scrutiny Board, move from 'one-in, one-out' to 'one-in, two-out', reduce gold-plating and apply the Think Small First principle for SMEs.

Key points

  1. Reaffirms that EU action is justified only when objectives cannot be sufficiently achieved by member states alone and can be better achieved at EU level.
  2. Recalls that national parliaments guard subsidiarity through interparliamentary dialogue and the early warning system, allowing a reasoned opinion on a proposal.
  3. Calls for impact assessments to examine the baseline scenario and non-regulatory alternatives, for revised guidelines to strengthen this, and for the Regulatory Scrutiny Board to check it.
  4. Notes the Commission's commitment to cut corporate administrative obligations by 25% overall and up to 35% for SMEs, and its omnibus proposals, competitiveness check and SME filter.
  5. Suggests a common methodology for assessing substantial amendments covering full regulatory cost, with clear criteria and the same method for Parliament and the Council.
  6. Takes the view that Commission proposals should as a rule have a positive Regulatory Scrutiny Board opinion and should not proceed where the board's concerns remain unaddressed.
  7. Welcomes the Commission communication of 28 April 2026, endorses 'simplicity by design', supports the regulatory deep cleaning action plan and asks for biannual reporting on codification, recast and repeal.
  8. Calls for burden reduction to be a core objective of the deep cleaning, covering cumulative costs, quantifying costs to be removed, and running beyond 2027 throughout the mandate.
  9. Reiterates that major initiatives need a cost-benefit analysis, and that where no impact assessment is done one must be prepared later and accompany the proposal.
  10. Calls for the 'think small first' principle at all stages, systematic SME exemptions or simplified regimes where full compliance is disproportionate, and operationalising 'once-only' and 'digital-by-default'.
  11. Calls for a move from 'one in, one out' to 'one in, two out' covering direct administrative burden and regulatory compliance costs, with a clear methodology and monitoring.
  12. Deplores gold-plating, requests a standardised reporting tool to flag it and help clean transposition, and calls for fewer delegated and implementing acts, real-world testing, and a joint commitment by the three institutions.

Who is affected

  • Small and medium-sized enterprises: the report seeks exemptions or simplified regimes and a 35% cut in administrative obligations.
  • Member states: asked to avoid gold-plating, transpose cleanly and follow the institutions' commitment in the implementation phase.
  • The Commission: asked to report biannually, develop a gold-plating reporting tool and study offsetting regulatory costs.
  • National parliaments: recalled as guardians of subsidiarity through the early warning system.

Figures and deadlines

  • '25 %' — the Commission's commitment to reduce corporate administrative obligations overall.
  • '35 %' — the reduction commitment for SMEs.
  • '12 omnibus proposals' — already put forward, reducing administrative burden by around EUR 17 billion per year according to the Commission.
  • '99.8 %' — SMEs' share of the total business population.
  • 'beyond 2027' — the deep cleaning exercise should run beyond this and continue throughout the mandate.

Legal basis: Article 5 of the Treaty on European Union, in particular the principles of subsidiarity and proportionality.