MBB welcomes EU simplification push but warns island realities remain ignored

The Malta Business Bureau (MBB) welcomes the European Commission’s Work Programme for 2026, published last Tuesday, which sets out its legislative plans for the coming year.

The 2026 programme maintains a strong focus on regulatory simplification, building on this year’s progress, while also introducing targeted measures in strategic areas such as energy, raw materials, digitalisation, and labour shortages.

Reacting to the programme, MBB CEO Mario Xuereb said,

“We are glad to see a continued emphasis on simplification and competitiveness in the Commission’s plans. While several legislative revisions have already been proposed this year, the work is far from complete. EU policymakers must remain committed to making Europe a more attractive and competitive place to do business.”

Despite these positive elements, the Commission has once again failed to put forward legislative proposals to address the specific challenges that island states such as Malta face in complying with EU legislation and integrating into the Single Market, due to their geographic and connectivity limitations.

In this regard, MBB expects the European Commission to revise the Combined Transport Directive to reflect island states’ realities. It is crucial for Malta to ensure that EU simplification and competitiveness progress together. Proportionality means that withdrawing the proposal or ignoring any state’s territorial realities would not serve Europe’s best interest. MBB therefore urges the Commission and Member States to uphold the principles it advocates for to the letter and ensure that simplification efforts remain fair and inclusive across all Member States.

“This is a message which must be consistently reiterated if we truly aim for a cohesive and prosperous Union. On our part, the MBB has repeatedly emphasised this point to both the Maltese government and EU policymakers”, Mr Xuereb added.

EU simplification efforts continue

While these challenges persist, the Commission is also pursuing further initiatives to reduce administrative burdens across the EU. To date, the Commission has published six Omnibus proposals aimed at simplifying EU rules ranging from ESG reporting requirements and EU funds, to chemicals and small mid-cap company definitions.

The 2026 programme now outlines additional efforts to simplify energy policy, with the aim of lowering prices and accelerating the uptake of renewables.

However, EU policymakers have yet to reach an agreement on the first six Omnibus proposals, leaving much of the simplification agenda still to be delivered.

The MBB is committed to continue monitoring such EU legislative developments to represent the interests of the Maltese business community.