EU Insight 13 March 2026

Brussels, 13 March 2026

EU STEPS UP COORDINATION ON ENERGY SUPPLY AMID CONTINUED IRAN CONFLICT

As the conflict in Iran and escalation in the region continue, EU leaders are monitoring the impacts, especially related to gas and oil supply and energy prices. In this context, during a European Parliament plenary debate, Commission President Ursula von der Leyen stressed the need to stay the course on the EU’s energy strategy while delivering short-term relief to households and businesses facing rising costs. Meanwhile, the Commission and Member States met in the Gas and Oil Coordination Groups and assessed no immediate concerns, as oil stocks remain high and EU gas storage levels are stable. They will follow the situation and assess a potential release of oil and gas from the EU security supply in the event of a prolonged closure of the Strait of Hormuz or further disruptions.

COMMISSION UNVEILS MEASURES TO SECURE ENERGY INDEPENDENCE AND AFFORDABILITY

As geopolitical turmoil and energy dependencies continue to affect EU Member States, the Commission presented a set of initiatives to boost investments in homegrown clean energy while ensuring the affordability of energy bills for EU citizens. The package consists of a Clean Energy Strategy, a Citizens Energy Package and a Small Modular Reactors (SMRs) Strategy and aims at channelling investments into clean energy solutions and to reduce energy prices. It includes several measures to bridge the investment gap for the EU’s clean energy transition, to decrease energy bills and tackle energy poverty and to support technologies for developing nuclear SMRs to increase clean energy sources in Europe.

COMMISSION INVESTS IN SEVERAL STRATEGIC EUROPEAN ENVIRONMENT AND CLIMATE PROJECTS

The Commission has approved over €103 million of funding under the LIFE programme for investments in seven strategic projects contributing to environmental and climate objectives. The projects will be developed in Finland, France, Greece, the Netherlands, Portugal, Slovakia and Spain. The initiatives will contribute to accelerating the implementation of key targets focused on climate and water resilience, nature restoration, circular economy and sustainable land use. The Commission’s funding will be complemented by national public and private investment, seeking to strengthen the EU’s economic stability and its climate, food and environmental ecosystems resilience, also improving public health and delivering a liveable sustainable environment.

PARLIAMENT PAVES THE WAY TO FINALISE SMALL MEDIUM COMPANIES SIMPLIFICATION RULES

The European Parliament endorsed a set of proposals introducing the category of the so-called small and medium-sized enterprises (SMCs) and notably easing procedures by extending some exemptions that until now were only applicable to SMEs. The initiatives have been agreed as part of the Parliament’s position on the Omnibus simplification package proposed by the Commission in May 2025, with the Council having already reached its negotiating position in September last year. The measures notably include simplified obligations on record-keeping data, improved access to capital markets or support for critical infrastructure entities. Negotiations between Parliament and Council will begin towards reaching a final agreement in the coming months.

PARLIAMENT CALLS TO ACTION ON COMMON DEFENCE MARKET AND FLAGSHIP DEFENCE PROJECTS

The European Parliament adopted two own-initiative reports including recommendations towards a common EU defence market. The Parliament notably calls on the Commission to propose initiatives to build a more integrated EU single market for defence, with increased long-term EU funding, common procurement and life-cycle management, simplified rules, and incentives for cross-border industrial integration, including a “buy European” approach. In addition, the Parliament also identifies major EU capability gaps in areas such as air and missile defence, artillery, drones, cyber and AI, and supports EU readiness flagship projects, while calling for greater clarity on several ongoing projects such as the European Drone Defence Initiative or the Air and Space Defence Shields.

COMING UP NEXT WEEK

• 16 March. Foreign Affairs Council. On the agenda: Russia’s war of aggression against Ukraine, Situation in the Middle East, EU-Southern Neighbourhood.
• 16 March. Transport, Telecommunications and Energy Council (Energy). On the agenda: European grid package.
• 17 March. Environment Council. On the agenda: Climate post-2030, Bioeconomy, Global environmental diplomacy.
• 17 March. General Affairs Council. On the agenda: preparation of the March European Council.
• 18 March. Tripartite Social Summit.
• 18 March. College of Commissioners. On the agenda: Orientation debate on the review of the Merger Guidelines, 28th Regime proposal.
• 19 March. Euro Summit.
• 19-20 March. European Council. On the agenda: Ukraine, Middle East, Competitiveness and Single Market, Next Multiannual Financial Framework, European Defence and security, Migration.