Giorgos Kallis, signatory of the warning to the European Commission on the risks of the Omnibus I package
ICTA-UAB researcher Professor Giorgos Kallis is among more than 90 prominent economists from the European Union who have signed a joint statement warning about the serious risks posed by the European Commission’s Omnibus I package. They argue that it represents a significant step backward that could jeopardize the EU’s global leadership in environmental and human rights matters.
In their common statement, the economists argue that attempts to dilute the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD) within the Omnibus I package are not only politically short-sighted but also economically unfounded. They urged the European Commission, the EU Council, and the members of the European Parliament to ensure a timely and ambitious implementation of the CSDDD and other regulations of the European Green Deal.
The economists’ joint statement dismantles the assertion that sustainability regulations adversely impact competitiveness. Instead, they elucidate the underlying structural factors contributing to Europe’s economic deceleration — from decades of investment backlog in public infrastructure and public services due to the decline in domestic demand in Europe, to low-wage policies and the redistribution of welfare gains from bottom to top. Furthermore, they stress that sustainability regulations are beginning to take effect, and any modifications to existing frameworks could significantly undermine the legal structure and create uncertainty for investors.
Key findings
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Negligible compliance costs for large companies in implementing due diligence obligations — just 0.009% of revenues on average (London School of Economics study).
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Companies support due diligence obligations that require legal accountability and liability for potential harm to third parties; for example, only 7% of German firms oppose such measures (Handelsblatt Research Institute, 2024).
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Risks to investor confidence and regulatory coherence if sustainability rules are rolled back.