Stop-the-clock: a new initiative for business and sustainable development in the EU

The EU Council has approved the European Commission's Stop-the-clock initiative aimed at simplifying business reporting and strengthening competitiveness. The solution involves postponing corporate sustainability reporting requirements: by two years for large companies and small businesses that do not yet provide such data (CSRD), and by one year for the initial phase of the Integrated Sustainability Review Directive (CSDDD). EU states need to introduce the changes by the end of 2025.

In September 2024, former Italian Prime Minister and former ECB president Mario Draghi presented a report on EU competitiveness. He noted that the European Union imports 40% of key materials and technologies, which increases dependence. Economic growth is slowing, and the gap with the United States is growing due to geopolitical crises, competition with China, the loss of Russian energy resources, and omissions in digitalization. 

Draghi stressed that the EU is facing a reduction in the workforce – by 2040 it will be reduced by almost 2 million workers per year. The inability to adapt can force you to abandon ambitious goals. The loss of values such as prosperity, freedom, equality and environmental sustainability threatens the EU's existence.