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Von der Leyen’s Surprise Deregulation Drive Sparks Controversy in Brussels


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Ursula von der Leyen has kicked off her second term as European Commission president with a sweeping and rapid deregulation push—one that took many in Brussels by surprise. Few officials had prior knowledge of the plan before it was already in motion, leaving policymakers scrambling to catch up with the new direction.

 

Facing pressure from right-wing governments, von der Leyen has made cutting bureaucratic red tape a cornerstone of her second term, aiming to boost Europe's economic competitiveness. However, this shift in focus has come at the expense of environmental regulations and other long-standing priorities, raising concerns among various stakeholders in the European policymaking community.

 

POLITICO spoke with a range of Brussels insiders, including Commission officials, national diplomats, European Parliament lawmakers, industry representatives, and NGO figures. Their accounts describe a centralized, fast-moving agenda designed to "simplify" European Union regulations while easing burdens on businesses. The rapid nature of these changes has alarmed many in Brussels, particularly those who have spent years crafting the very regulations now being reconsidered.

 

Some Commission staffers have been left “depressed” as years of regulatory efforts are swiftly undone. Cabinet officials, too, have struggled to exert influence over von der Leyen’s highly centralized approach to policymaking. This top-down strategy has raised transparency concerns across EU institutions. “When we’re going that fast, how can we be sure we’re getting it right?” questioned a senior national regulator, who, like others interviewed, spoke anonymously due to the sensitivity of the discussions.

 

The deregulation push began in November during a meeting in Budapest, where von der Leyen announced a major shift in EU green policy. The move surprised many, as it signaled a departure from some of the Commission’s previous environmental priorities. The plan has the backing of key EU member states, including France and Germany, as well as von der Leyen’s political allies in the center-right European People’s Party (EPP).

 

At the heart of the effort is an “omnibus” bill aimed at simplifying a set of laws designed to hold companies accountable for environmental and social damages. Von der Leyen has insisted that the bill will not weaken existing regulations but will streamline them by eliminating unnecessary duplication and paperwork. She argues that this will make the EU a more attractive place to do business. However, critics warn that reopening these files could ultimately lead to a dilution of the laws themselves.

 

The suddenness of this initiative has caught even Commission officials off guard. Four officials admitted to POLITICO that they first learned of the plan—which directly affects their work—through von der Leyen’s Budapest speech. Since then, the deregulation push has expanded, with promises of “at least” five omnibus packages in 2025 and the scrapping of previous Commission proposals deemed too burdensome.

 

Despite the criticism, von der Leyen’s push for a faster, more agile approach to EU lawmaking has its supporters. Jean-Paul Servais, head of the global securities watchdog IOSCO, defended the urgency of the effort, stating: “In wartime, speed is maybe the most important aspect.” European Central Bank President Christine Lagarde also voiced her support, co-authoring an op-ed in the Financial Times alongside von der Leyen. In it, they argued that the EU has “too much at stake” to allow excessive regulation to hold back economic growth. They praised the deregulation effort as an “unprecedented simplification” initiative aimed at keeping Europe competitive on the global stage, promising to “do whatever is necessary to bring Europe back on track.”

 

Still, as one senior Commission official noted, the EU executive branch is “only one player in this game.” The official pointed out that EU governments and Members of the European Parliament (MEPs) often dilute legislative proposals during negotiations. “If they want ambition, we give them ambition. But then they have to be ambitious.”

 

As von der Leyen forges ahead with her deregulatory agenda, the debate over the balance between economic growth and regulatory oversight is set to intensify. While some see the push as a necessary step to maintain Europe’s global standing, others fear it could come at the cost of hard-won environmental and social protections. The speed and scope of these changes ensure that the controversy surrounding them is far from over.

 

Based on a report by Politico  2025-02-19

 

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