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As regulatory complexity dissuades investment, Europe demands simplicity

The goal is clear: to enhance economic competitiveness

Photograph: iStock
Photograph: iStock

The six-month presidency of the European Council affords Ireland an opportunity to sit at the centre of the European legislative agenda, helping to deliver EU laws and policies that will impact on the lives of more than 440 million people. There are a number of key areas of legislation where debate and amendment are likely during the presidency.

According to Aidan Sweeney, head of infrastructure and environmental sustainability at Ibec, at the heart of the agenda for Ireland’s presidency are two critical legal pillars: regulatory simplification and the reform of infrastructure permitting.

Ireland’s EU presidency could not have come at a more crucial time, he says. “Governments across the globe are refocusing on the ‘better regulation’ agenda and the strategic priority has shifted toward simplification for success.”

The goal is clear, Sweeney says; to enhance economic competitiveness. “Complex regulatory frameworks are a primary barrier to achieving this and driving further investment,” he says. “When over 60 per cent of EU companies view regulation as an obstacle to investment, and 55 per cent of SMEs name it their greatest challenge, it is a fundamental drag on competitiveness.”

To further unlock the single market, Sweeney says the Irish presidency also aims to advance negotiations on the “EU Inc” proposal, also known as the 28th Regime. This initiative seeks to enable companies to operate and scale seamlessly across the EU by overcoming the patchwork of national rules.

Aidan Sweeney, head of infrastructure and environmental sustainability at Ibec. Photograph: Conor McCabe
Aidan Sweeney, head of infrastructure and environmental sustainability at Ibec. Photograph: Conor McCabe

According to Sweeney, the past decade has seen intensified legislation enacted across complex areas, causing significant difficulties from compliance and business costs perspectives. He says businesses urgently need simplification to streamline requirements and reduce unnecessary administrative burdens. “We do not advocate for deregulation, but rather better regulation,” he says. “When done well, regulation creates the stable, predictable environment that businesses need for long-term strategic decisions.”

Rob Cain, partner in financial regulation with law firm Arthur Cox, says a key legislative priority for the financial services sector is the Savings and Investments Union (SIU). “The presidency will be expected to advance key legislative files connected to the SIU, potentially including measures on retail investment, financial data access (the FiDA regulation) and long-term savings products,” he says. “For Ireland, with one of the largest funds industries in the EU, the SIU is extremely relevant and has a genuine interest in it moving ahead – so this is probably the central priority for the financial services industry in Ireland.”

Rob Cain, partner in financial regulation with law firm Arthur Cox
Rob Cain, partner in financial regulation with law firm Arthur Cox

The competitiveness agenda is already extremely important to Ireland, given that we are such an open economy, he adds.

Niamh McGovern, Arthur Cox’s energy and infrastructure partner, points out that global competitiveness is key for the EU, and secure and affordable energy is a cornerstone of that goal.

“The programme for the presidency contains a concentrated and ambitious energy legislative agenda, delivered primarily through the Transport, Telecommunications and Energy (TTE) Council,” she says.

For example, the European Grids Package is the central infrastructure instrument that is intended to unlock vast onshore and offshore renewable energy capacity waiting to deploy across the continent. “The Irish presidency directly echoes the European Council’s call for the co-legislators to agree and adopt this package in 2026, including the ambitious timeline outlined in the One Europe, One Market Roadmap,” she says. “This is not aspirational language; it is a hard delivery target.”

The programme also acknowledges that twice in recent years European energy markets have been directly exposed to the actions of external forces, and it commits to progressing a new Energy Security Framework to update gas and electricity security legislation. “The protection and resilience of energy infrastructure, including subsea cables, is explicitly identified as a core priority within this framework,” McGovern adds.

“In terms of Ireland’s specific presidency focus, the legislative priorities now on the table are important for unlocking infrastructure development. Without expanded grid capacity deployed in an economically efficient way, we will not have the enabling infrastructure we need to realise energy resilience and economic growth.”

Sweeney points out that during the last Irish presidency of the EU, back in 2013, Ireland made big progress in delivering legal reforms and leaving a big legacy by concluding the Unified Patent Court Agreement (UPCA).

“This landmark agreement paved the way for the commencement of the new pan-European system for patent registration and enforcement,” he notes.

Yet achievements during the presidency are only half the battle; Sweeney says Ireland must then take advantage of these reforms at home. “Ireland is still waiting to hold the necessary referendum to ratify the UPCA and unlock its economic benefits.”


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