Officials are seeking to boost competitiveness and reduce the regulatory burden on businesses during what a European commissioner called a “perilous” time.
The European Commission on Wednesday proposed to substantially loosen the requirements on companies to report on the social and environmental impacts of their operations.
The proposal would limit the rules to companies with more than 1,000 employees and revenue over 50 million euros ($53 million), which means that about 80 percent of companies currently covered by the directive would be exempt.
The commission is trying to simplify regulations that businesses say impede investment and growth. European officials have become increasingly concerned about waning economic competitiveness, particularly when compared with the United States and China. These worries have been exacerbated since President Trump’s return to the White House.
Mr. Trump’s push to relax the rules on companies has widened the regulatory gap with Europe. E.U. commissioners also said changes were needed to strengthen the region’s economy, which has been sluggish.
“The world is changing in front of our eyes,” said Valdis Dombrovskis, the European commissioner for the economy, citing U.S. opposition to a United Nations resolution condemning Russian aggression in Ukraine.
Building a more competitive economy and cutting red tape are important parts of navigating this “complex” environment, he said. “We cannot hope or expect to successfully compete in a perilous world with one hand tied behind our backs,” he added.