EU overhauls corporate law and energy policies to slash red tape and fossil fuel reliance

The EU is introducing major changes to corporate law and energy policies in response to recent crises. A new proposal will allow businesses to register digitally within 48 hours for under €100, with no minimum capital rules. Meanwhile, energy reforms aim to stabilise costs and speed up the shift away from fossil fuels after years of high expenses and supply disruptions.

Since Russia's invasion of Ukraine in February 2022, the EU has drastically cut its reliance on Russian energy. Pipeline gas imports from Russia dropped from 40% to under 15% by 2024, while Russian LNG fell from 16% to 5%. Oil imports also declined from 27% to about 3% by early 2026. Overall, Russian gas now makes up less than 20% of EU imports, down from 45% before the war. The US now supplies around 45-50% of the EU's LNG, with Norway providing 30% of pipeline gas. Qatar, Australia, and Algeria have also become key suppliers.

The EU's Emissions Trading System (ETS) will be adjusted to give businesses more flexibility. A strengthened Market Stability Reserve will help control costs during extreme price spikes. Revenues from the ETS will fund decarbonisation efforts, particularly in lower-income countries. Long-term power purchase agreements (PPAs) for renewable energy are also being promoted to shield industries from volatile consumer prices. On corporate law, the 28th EU proposal (EU Inc.) will simplify business registration. Companies can set up digitally in two days for no more than €100, with no minimum capital requirements. The goal is to reduce bureaucracy and encourage new ventures. The EU has already spent an extra €6 billion on fossil fuels due to geopolitical tensions, including the US-Israel conflict with Iran. Leaders are now pushing for targeted, time-limited measures to avoid repeating mistakes from the 2022-2023 energy crisis. Keeping operational nuclear plants running remains a priority for reliable, low-cost, and low-emission electricity.

The EU's new policies aim to cut red tape for businesses while securing stable, affordable energy. Digital company registration will lower costs and speed up setups. Energy reforms focus on reducing dependence on fossil fuels, supporting industries, and preventing future price shocks. The changes reflect lessons learned from recent crises and the push for a faster green transition.