Headlines
EU countries split over whether to delay green reporting rules
Published by Global Banking & Finance Review®
Posted on February 19, 2025
3 min readLast updated: January 26, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 19, 2025
3 min readLast updated: January 26, 2026
EU countries are split on delaying green reporting rules, with Spain and Italy opposing Germany and France's proposals to weaken regulations.
By Kate Abnett
BRUSSELS (Reuters) - The European Union's biggest economies are split over whether the bloc should weaken its sustainability reporting rules for companies, with Spain and Italy defending some rules that Germany and France want to delay, documents seen by Reuters showed.
The European Commission plans to publish an "omnibus" proposal next week to simplify green rules for businesses, aiming to make local industries more competitive and respond to U.S. President Donald Trump's promise to scrap regulations.
The proposal will address the EU's corporate sustainability reporting rules (known as CSRD), its due diligence law, and its "taxonomy" system for labelling climate-friendly investments.
In a letter to the Commission, seen by Reuters, Spain's government urged Brussels not to weaken the due diligence law, which from 2027 will require companies to check human rights and environmental issues in their supply chains.
"It supports the values and the priorities of the European Union even beyond our borders, setting an example of leadership," said the letter, signed by Spain's Environment Minister Sara Aagesen and Economy Minister Carlos Cuerpo.
"Its revision should be avoided," it said.
On the corporate sustainability reporting rules, Spain said the EU should delay when the policy applies to smaller companies, but that after this deadline it should become mandatory for "all companies".
Separately, Italy has urged the EU not to delay the CSRD for the tens of thousands of companies which will report under the rules this year, a letter by Italy's finance minister Giancarlo Giorgetti to the European Commission showed.
However, Rome said that smaller companies due to start reporting later, in 2026, should get more time and simpler rules than currently planned - and the EU should also delay its due diligence policy.
"Companies have identified potential risks stemming from these new [due diligence] requirements, which could weigh on their competitiveness," said the letter, dated February 6.
The interventions by Madrid and Rome add to pressure on Brussels, which is also facing calls from Germany and France to rewrite some of its green laws. Germany, France, Italy and Spain are the EU's four biggest economies.
Germany in December called for a two-year delay to the CSRD - which it said would affect 13,000 German companies - among other changes. France last month asked the EU to delay indefinitely its due diligence rules and to delay by two years the CSRD.
(Reporting by Kate Abnett; Editing by Alexandra Hudson)
Spain and Italy are concerned that weakening the sustainability reporting rules could impact competitiveness and undermine the EU's leadership in sustainability.
The corporate sustainability reporting rules (CSRD) are set to apply to smaller companies starting in 2026, while larger companies will report under the rules this year.
Spain and Italy are advocating for a delay in the implementation of the corporate sustainability reporting rules, while Germany and France have also called for changes to the EU's green laws.
The European Commission plans to publish an 'omnibus' proposal to simplify green rules for businesses, which will address the CSRD, due diligence law, and taxonomy system for climate-friendly investments.
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