EU Parliament Rejects Omnibus Compromise

The European Parliament has rejected the Omnibus compromise that would have allowed it to move directly to trilogue negotiations. The vote was 309 in favor, 318 opposed, and 34 abstentions.

On October 13, 2025, the European Parliament Committee on Legal Affairs (JURI) approved its position on the Omnibus, intending for it to move to trilogue negotiations with the European Commission and the European Council for implementation by the end of 2025.

The Parliament's proposal included significant changes to both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). For the CSRD, these changes included limiting the scope to companies with at least 1,000 employees and €450 million in turnover, aligning it with the Council's position and excluding more companies from reporting obligations.

For the CSDDD, Parliament proposed limiting the scope to companies with at least 5,000 employees and a net turnover of €1.5 billion. It also proposed eliminating both the civil liability scheme for class-action lawsuits and Tier 1 requirements for information requests in favor of a risk-based approach.

The European Parliament Committee on Legal Affairs’ (JURI) proposal came after some sharp diplomacy by European People's Party (EPP) lead negotiator Jörgen Warborn, who presented two proposals: one aligned with the centrist position of the council and the other aligned more closely with the right-wing parties demanding deregulation. Warborn secured reluctant support for the centrist position after issuing an ultimatum to the left-wing Socialists and Democrats (S&D): either support his proposal or allow him to seek backing from the right for a more radical alternative. His approach drew criticism from S&D and policy analysts, who said it undermined the democratic foundation of the European Union.

With today's vote representing a failure to move forward with his proposal, Warborn will need to engage in further consultations to find a compromise. At a press conference, European Parliament President Roberta Metsola said that deep divisions remain.

“As you can see today, today's vote showed that for a huge section of Parliament, this compromise simply did not go far enough, and for some sections, it went too far from the status quo,” said Metsola. “Majorities are always stronger from the center out, because we believe that this is the way to move Europe forward. Now we need to see how to deliver.”

Metsola stressed the urgency of restarting negotiations to meet the deadline for the next plenary vote in Brussels at the start of November.

At the same conference, Warborn expressed disappointment with the vote and emphasized the need to find a new solution to provide clarity for businesses. He also noted the difficulty of finding a compromise between conflicting viewpoints and placed the responsibility for the failed vote on the left-wing parties.

“It was complicated, and I acknowledge that, from EPP, from S&D, and from Renew, but we reached a final agreement, and that's why it's of course disappointing when that agreement doesn't hold in plenary,” said Warborn. “That's once again why I would like to ask S&D how they see the result of this vote, and how they see their relationship with the platform parties.”

Interim Head of EU Policy at ShareAction Richard Gardiner said in a statement to 3E that the results of the vote are a reality check, showing that real progress toward a sustainable, competitive economy requires genuine compromise and consultation rather than sharp negotiation tactics. 

“MEPs must now return to the table for proper and transparent negotiations that strengthen, rather than weaken, the EU's flagship sustainability laws. Simplification should never come at the expense of accountability,” said Gardiner. “Europe's competitiveness and credibility depend on rules that work for people, the planet, and investors alike. This vote opens the door to rebuild trust and craft reforms that make the EU's sustainability framework simpler, smarter, and stronger - not gutted in the name of speed.”