BRUSSELS — Political groups in the European Parliament failed to reach a common position on a simplification bill Tuesday, exposing fault lines in Commission President Ursula von der Leyen’s centrist coalition.

Lawmakers had geared up for an all-nighter to reach a deal on how far to roll back several EU green laws as part of the first “omnibus” simplification package. But the meeting ended after less than four hours as relations between the Conservatives, Liberals and Socialists broke down.

The center-right European People’s Party (EPP) threatened to side with right-wing groups to pass massive cuts to the rules, unless its traditional coalition partners — the centrist Renew group and the center-left Progressive Alliance of Socialists and Democrats (S&D) — agreed to an alternative with fewer cuts. While Renew seemed willing to accept the second option with some caveats, S&D refused.

The omnibus bill aims to reduce reporting obligations for companies under the bloc’s sustainability disclosure and supply chain transparency rules. Cutting red tape for businesses has become a top priority for von der Leyen in her second mandate, as the EU strives to boost competitiveness and aid flaccid economies.

“My goal has always been to simplify and cut cost for business. I have presented two packages that deliver on that,” said the EPP’s Jörgen Warborn, who leads negotiations on this file. The first option — which exempts even more companies from having to report on their environmental footprint — has the backing of right-wing and far-right groups.

“I do not exclude any majority as long as we cut costs for businesses and strengthen Europe’s competitiveness,” Warborn added.

The so-called von der Leyen majority includes the three moderate groups and the Greens that backed her for a second term, after last year’s European election results saw the balance of power in the Parliament tilt to the right. The EPP has since flirted on some issues with forming an alternative majority with conservative and far-right parties.

Threats and theater

The S&D’s Lara Wolters said that during the meeting, there was “not a single decent conversation. Only threats and theater.” But “these are serious matters. So let’s not waste more time, and start real negotiations,” she added.

Pascal Canfin, who leads Renew’s work around the omnibus, said: “The far-right-leaning ‘option one’ is totally unacceptable.”

This sustainability omnibus bill is the first major piece of legislation the three parties need to agree on, and the breakdown could set a precedent for future contentious bills.

There was tension in the room. One Parliament official — granted anonymity to speak freely about the closed-door meeting — said it was clearly “badly prepared” and that negotiations were “a waste of time.” The lawmakers needed a break just 10 minutes after the meeting had started, the official said.

At the heart of the dispute is a push from the EPP to scrap the so-called civil liability regime, which leaves companies across the EU legally liable for possible environmental or human rights violations in their supply chains.

The European Commission proposed to scrap this possibility for lawsuits in the omnibus; a position EU governments agree with. However, the S&D — backed by the Greens — want to keep this safeguard to hold companies accountable for their supply chains.

“We have been nothing but constructive in the negations, while EPP has constantly been flirting with the far right and threatening with an alternative majority,” said the Greens’ Kira Marie Pieter Hansen.

The EPP, Renew and S&D said they remained open to further negotiations, which are expected to continue.

EU lawmakers in the legal affairs committee are expected to vote on a final text on Oct. 13.