EC 2026 annual progress report on simplification, implementation and enforcement

The European Commission (EC) sent the Council of the EU its second annual progress report on simplification, implementation and enforcement for Financial Services and the Savings and Investments Union (SIU). The report covers 1 August 2025 to 31 July 2026. In that period, the EC states it intensified efforts to simplify the regulatory framework for financial services, with particular emphasis on reducing unnecessary reporting burdens.

A key milestone for the EC was the Omnibus I Directive, which entered into force in March and which, the EC states, cut the number of companies subject to mandatory reporting under the Corporate Sustainability Reporting Directive by about 85%. The EC also adopted a significantly simplified set of European Sustainability Reporting Standards in July. It proposed the Market Integration and Supervision Package to tackle cross-border regulatory and supervisory barriers and reduce market fragmentation. In addition, it adopted a communication on the competitiveness of the banking sector and the single market in banking. Building on its simplification agenda, following last year's screening, 115 Level 2 acts were deprioritised and will not be adopted before October 2027.

The report also covers other areas relating to implementation and enforcement. Looking ahead, the EC will: propose a package of measures to amend the banking regulatory framework in Q1 2027; publish an SIU mid-term review during 2027; complete its taxonomy reporting review and publish an amended Taxonomy Disclosures Delegated Act in Q1 2027; and issue a report to the European Parliament and the Council on the application of the Markets in Crypto-Assets Regulation in 2027, accompanied, if necessary, by a legislative proposal. You may also wish to read our blog post titled "EC publishes 2027 work programme".

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