EU Insight 08 May 2026

Brussels, 8 May 2026

EU-US TRADE TALKS STALL AS TRUMP THREATENS HIGHER TARIFFS

Trilogue talks between the European Parliament, Council and Commission on legislation to implement the EU‑US trade deal ended without agreement on Wednesday. The setback comes as President Trump has warned he will significantly raise tariffs on EU car and truck imports if the bloc does not deliver on the tariff cuts agreed at Turnberry by 4 July. Parliament had given the deal conditional approval in March, adding safeguards to ensure Washington upholds its side of the bargain, including on steel and aluminium duties and broader respect for EU territorial integrity. Lawmakers, led by trade committee chair Bernd Lange, are pushing for stronger suspension and termination clauses while a recent US court ruling questioning the legal basis of some of Trump’s latest tariffs has added to the uncertainty.

COMMISSION UNVEILS SIMPLIFICATION PACKAGE FOR DEFORESTATION REGULATION

The Commission has unveiled a simplification package for the revised EU Deforestation Regulation (EUDR), ahead of its application from 30 December 2026. The initiative is intended to make compliance less burdensome for companies while preserving the regulation’s aim of keeping deforestation‑linked products off the EU market. The package combines an updated guidance document and FAQs with draft changes to the EUDR product scope and an upgraded Information System. According to the Commission, the adjustments could cut annual compliance costs for firms by around three-quarters compared with the original rules. The draft delegated act would bring in additional products such as soluble coffee and certain palm oil derivatives, while removing items including leather, waste, and used or second‑hand goods from the scope.

COMMISSION CONSULTS ON DRAFT UPDATE OF EU MERGER GUIDELINES

The Commission has opened a public consultation on its draft EU Merger Guidelines, which will replace the current horizontal and non‑horizontal merger guidance. The draft is presented as a major update of the EU merger framework, reflecting debates on European competitiveness and the need for firms to scale and compete globally. It proposes a more dynamic assessment of mergers, placing greater emphasis on innovation and investment and addressing issues such as potential ‘killer acquisitions’. The guidelines also explain how sustainability and resilience considerations can be factored into merger reviews and refine the analysis of market power and efficiencies. The text further clarifies the limited circumstances in which Member States may intervene on public‑interest grounds. Stakeholders can submit comments until 26 June 2026.

EU INSTITUTIONS AGREE ON SIMPLER AI ACT IMPLEMENTATION RULES

Parliament and Council negotiators have reached a provisional agreement on part of the digital omnibus package, adjusting how the AI Act will apply in practice. The deal delays the application of certain rules for high‑risk AI systems, giving more time for technical standards and support tools to be developed. Most high‑risk rules would now start to apply from late 2027, with a longer transition for AI embedded in products. At the same time, the agreement introduces a ban on AI systems that generate non‑consensual intimate content or child sexual abuse material. The text also extends some existing flexibilities for SMEs to small mid‑cap firms, broadens access to regulatory sandboxes, and clarifies overlaps between the AI Act and sector‑specific product safety rules.

FINANCE MINISTERS MEET IN BRUSSELS TO DISCUSS CAPITAL MARKETS & WAR IMPACTS

EU finance ministers met in Brussels for back-to-back Eurogroup and ECOFIN meetings. Ministers held a further policy debate on the Market Integration and Supervision Package (MISP), a central element of the Savings and Investments Union, confirming broad support for its objectives but diverging on the extent of stronger EU‑level supervision of capital markets. They also agreed on new rules to step up cooperation against VAT fraud by giving EU‑level investigative bodies more direct access to cross‑border VAT data. Ministers discussed the economic and financial impact of Russia’s war against Ukraine and the conflict in the Middle East, including the rollout of the €90 billion EU support loan to Ukraine and the broader implications of higher energy prices and geopolitical uncertainty for the EU economy.

COMING UP NEXT WEEK

• 10-11 May: Informal meeting of ministers for European Affairs.
• 11-12 May: Foreign Affairs Council. On the agenda: Western Balkans, Russia’s war of aggression against Ukraine, and the Middle East.
• 11-12 May: Education, Youth, Culture and Sport Council. On the agenda: Erasmus+, teachers and AI, EU Youth Strategy, AgoraEU, and mental health in sport among others.
• 12-13 May: Informal meeting of energy ministers.
• 13 May: College of Commissioners. On the agenda: Global health resilience initiative, and Passenger package.

LET’S MAKE EVERY KILOMETER COUNT! SUPPORT OUR 20KM RUN

This year, Kreab will be taking part in the 20 km of Brussels with an amazing team of 14 runners! Our team has decided to run in support of Pelicano, an organization that helps children growing up in poverty.

For many children, having a filled lunchbox, wearing appropriate clothing, or joining activities with friends is not a given. In Belgium, more than 300,000 children grow up in poverty. Pelicano is working to change this by providing direct financial support, helping break the cycle of poverty — one child at a time.

With every step we take during the 20 km of Brussels, we want to contribute to giving these children the opportunities they deserve.

If you believe that every child deserves equal opportunities, we would be incredibly grateful for your support. Every contribution truly makes a difference.

Donate here