The European Commission has eased the reporting obligations for member states on their financial relations with state-owned companies. With this change, the Commission stops the obligation for member states to provide annual reports with financial information relating to certain companies in the manufacturing sector. This way it relieves administrative burdens for the member states and those companies. The change is implemented through a Directive amending Directive 2006/111/EC on the transparency of financial relations between member states and state-owned companies, in order to reduce unnecessary reporting obligations.
This move contributes to the Commission’s target of reducing burdens associated with reporting requirements by 25%, without undermining policy objectives. The ongoing action to simplify the EU regulatory framework is outlined in the Commission’s Communication on Implementation and Simplification. The Communication sets out the Commission’s approach to tackle all sources of regulatory burdens, such as reporting obligations, recurring administrative costs or compliance costs more generally.
The updated rules continue to ensure the transparency of financial relations between member states and state-owned companies, by maintaining the conditions set to ensure the transparency of financial transactions.