Simplification

Clearer regulation supporting growth and innovation.

For American businesses in Europe – 84% of which cite the EU’s regulatory burden as a primary barrier to further investment in the region – simplification is an opportunity to realign EU legislation with the foundational principles of only acting at EU-level when it brings clear value and ensuring rules are limited to what is necessary. Over the past years, the EU has introduced more and more unclear, duplicative and prescriptive regulation that has a disproportionate impact on businesses. A simplified regulatory environment should still ensure the EU's goals are met, but just in a manner that is predictable and practical for companies. 

AmCham EU recommends six principles to ensure simplification by design for upcoming legislation and the streamlining of existing legislation. When combined with systematic competitiveness checks, focusing on these areas will help the EU deliver speed and flexibility and reduce regulatory burdens for companies operating in the region.

Six principles to guide simplification across all sectors

Avoid overly prescriptive rules

Regulation should be focused on creating ways to achieve policy objectives that don’t depend on rigid compliance mechanisms. To encourage investment and innovation, the EU should reduce obligations that disproportionately hinder business operations.

Streamline regulatory obligations

Regulation should be predictable and practically feasible for companies to implement. For example, abolishing overlapping or duplicative regulations; or enabling ‘single agency’ reporting so that companies only have to produce one report for one authority on similar matters.

Prioritise enforcement and implementation

Before introducing any new directives or regulations that are similar or parallel to existing regulatory frameworks, the Commission should take stock of whether existing frameworks are being properly enforced and implemented, with all necessary guidelines in place.

Reinforce the Single Market

EU regulation must ensure greater harmonisation across Member States. Where legislation is necessary, it should avoid a patchwork of differing national or regional frameworks.

Pause enforcement during revisions

While simplification is underway, businesses should not be made to comply with legislation that could materially change. Compliance with regulatory requirements requires costly investments from companies that diverts resources away from core business operations.

Strengthen international regulatory cooperation

Many EU regulatory frameworks have significant implications for global business operations and compliance. Simplification gives EU policymakers an opportunity to find regulatory alignment with other countries and avoid significant conflicts that create complexity for businesses with a global footprint.

Simplification advocacy

Blog
14 Oct 2026

The Single Market is only as simple as its Member States make it

This blog is authored by Malte Lohan, CEO, AmCham EU.

What exactly is ‘single’ about a market where the same product needs different national markings, a cyber incident can require dozens of reports and a professional qualification may stop being recognised at the border?

These examples come from different sectors, but they point to the same contradiction. The EU creates common rules, yet companies still encounter national requirements that divide Europe into separate markets in practice.

The stakes are high for American companies invested in Europe. The United States is the largest single source of inward foreign direct investment (FDI) into the EU. In 2025, American companies invested more in Europe (53%) than they did the rest of the world combined. This has been the case for decades. Much of this appeal lies in the promise of a large, prosperous Single Market.

Yet there are signs that this position is coming under pressure. While Europe remains the leading destination for US investment, its share of total US outward FDI has fallen to its lowest level in more than four decades. More recent indicators point in the same direction too. EY’s 2026 European Investment Monitor found that 943 US companies invested in Europe last year, 16% below the annual average of 1,124 over the previous five years. To reverse these trends, Europe needs to make itself a more attractive place to invest, beginning with a more integrated Single Market.

That is why the simplification agenda cannot lose steam – in Brussels and national capitals. In her September State of the Union address, European Commission President Ursula von der Leyen highlighted the need for EU-wide coordination. ‘Simplification cannot be a one-way street’, she said. ‘All levels have to have skin in the game’.

As EU leaders check in on progress under the ‘One Europe, One Market’ roadmap at this week’s European Council meeting, they should look closely at how national choices affect companies operating across borders. That means addressing three related but distinct problems: gold-plating, uneven implementation and the national barriers that continue to fragment the Single Market.

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News
29 Sep 2026

Building trust without slowing innovation

At RAID 2026, Thibaut L’Ortye, Chief Policy and Public Affairs Officer, AmCham EU joined a panel discussion on EU-US regulatory approaches to technology. Taking place on Tuesday, 29 September 2026, the discussion explored how transatlantic cooperation can focus on shared outcomes rather than identical rulebooks, including on cybersecurity, AI safety, consumer protection and resilient supply chains. Mr L’Ortye also highlighted the wider conditions needed to strengthen Europe’s competitiveness.

Industry
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Position Paper
24 Sep 2026

Gold-plating in practice

"Gold-plating" of EU legislation has become a structural challenge for companies operating across the Single Market. While Member States are often permitted to introduce additional national measures when implementing EU law, these divergences frequently create fragmented compliance requirements, administrative burdens and increased costs for businesses.

Drawing on examples from AmCham EU member companies across digital policy, cybersecurity, data protection, telecommunications, environmental regulation, consumer protection, tax transparency and labour law, the paper shows how national additions to EU rules can result in parallel compliance systems, duplicate reporting obligations, country-specific product adaptations and barriers to cross-border operations.

The paper highlights four key findings:

  • Divergence between Member States is often a bigger cost driver than any single regulatory requirement.

  • Fragmentation extends beyond directive transposition and also arises through opening clauses, national guidance, administrative practices and regional measures.

  • Minimum-harmonisation legislation can still create significant Single Market fragmentation.

  • Gold-plating occurs at both national and sub-national levels.

The European Commission should address these issues through greater consistency in implementation, increased transparency around national additions, reduced duplication in reporting and registration requirements, stronger implementation dialogue and the use of Single Market enforcement tools where appropriate. The objective is not to remove legitimate national discretion, but to prevent unnecessary regulatory barriers within the Single Market.

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