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France Calls for 'Massive' Regulatory Pause as Economy Flags

Jan 24, 2025 - financialpost.com
France is advocating for a significant overhaul of European regulations, particularly focusing on ESG rules, to enhance the bloc's competitiveness amid global deregulation trends led by the US. The French government suggests a "massive regulatory pause" and a reassessment of existing laws, which they argue are not suited to the current international competitive landscape. This push aligns with the EU's plans to simplify regulations, aiming to reduce reporting obligations by 25%. France's proposals include creating a new category for mid-cap companies to ease regulatory burdens and revising state-aid and chemical regulations.

The French initiative coincides with the EU's upcoming enforcement of new ESG reporting requirements, which many businesses claim hinder competitiveness. France, along with Germany, is pressuring the EU to scale back the Corporate Sustainability Reporting Directive (CSRD), which mandates extensive ESG data reporting. The French government also seeks to delay the Corporate Sustainability Due Diligence Directive and review the green asset ratio, arguing these measures could negatively impact competitiveness. The EU is under increasing pressure to reduce regulatory burdens to foster investment in a sustainable economy.

Key takeaways:

  • France is advocating for a major overhaul of European regulations, starting with ESG rules, to enhance competitiveness amid deregulation in the US.
  • The French government suggests a "massive regulatory pause" and revisions to recent legislation to adapt to international competition.
  • The EU plans to simplify regulations, aiming to reduce reporting obligations by at least 25% as part of its competitiveness strategy.
  • France and Germany are pressuring the EU to ease the Corporate Sustainability Reporting Directive, citing concerns over competitiveness and resource demands.
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