EU Insight, 15 March 2024

Brussels, 15 March 2024

COUNCIL ENDORSES AGREEMENT ON CORPORATE SUSTAINABILITY DUE DILIGENCE

Following weeks of uncertainty and debate, the Council endorsed the interinstitutional agreement on the Corporate Sustainability Due Diligence Directive reached in December. The Directive aims to improve the protection of human rights and the environment by requiring companies to conduct due diligence checks across their global value chains. The Parliament is expected to provisionally endorse the text in the last plenary session before under the so-called corrigendum procedure. The Directive will likely be published in the EU Official Journal sometime in autumn 2024.

PACKAGING WASTE LAW AGREED BY COUNCIL

The Council endorsed the revision of the Packaging and Packaging Waste Regulation. To recall, the Council and the Parliament reached a provisional agreement on the file in March. The revision will make packaging used in the EU safer and more sustainable by requiring all packaging to be recyclable, minimising the presence of harmful substances, reducing unnecessary packaging, boosting the uptake of recycled content, and improving collection and recycling. The Parliament is slated to rubberstamp the text later this month. Publication in the EU’s Official Journal will follow shortly thereafter.

EUROGROUP ADOPTS STATEMENT ON THE FUTURE OF THE CAPITAL MARKETS UNION

The Eurogroup adopted a statement on the future of the Capital Markets Union, outlining its priorities for the next legislative term. In the statement, the Finance Ministers warn that the EU “is at risk of falling further behind globally in terms of competitiveness, growth, and prosperity of its citizens” unless action is taken. The document lays out 13 new measures under three priority areas for action, most notably on the securitisation market, the promotion of supervisory convergence, and the reduction of regulatory burden for financial institutions.

FIRST EUROPEAN CLIMATE RISK ASSESSMENT PUBLISHED

The European Environmental Agency published its European Climate Risk Assessment which aims to identify policy priorities for climate change adaptation and for climate-sensitive sectors. The assessment warns of heightened risks, including economic repercussions such as increased insurance costs and government expenditures, due to climate extremes. Following the report, the Commission issued a communication setting out how the EU and the Member States can better anticipate, understand and address growing climate risks, including pledges to integrate climate resilience into EU programs, optimize public spending, and review procurement regulations. The Commission also plans to establish a reflection group on climate-resilient financing and to strengthen fiscal sustainability efforts.

NEW RULES ON TRANSPARENCY AND TARGETING OF POLITICAL ADVERTISING

The Council adopted the regulation on transparency and targeting of political advertising, paving the way for its publication in the EU Official Journal. The Regulation aims to counter information manipulation and foreign interference in elections at the EU and Member State level. According to the new rules, (i) political advertisements should be made available with a transparency label and a retrievable transparency notice; (ii) targeting political advertising online will be permitted only under strict conditions and; (iii) there will be a ban on the provision of advertising services to third country sponsors three months before an election to prevent foreign interference.

COMING UP NEXT WEEK

• 18 March: Foreign Affairs Council. On the agenda: Russia/Ukraine, Belarus, Middle East and current affairs.
• 19 March: General Affairs Council. On the agenda: European Council, European Semester, economic policy of the euro area, and the future of Europe.
• 20 March: Tripartite Social Summit. On the agenda: Green Deal, single market, and tackling skills and labour shortages.
• 20 March: EU-Ukraine Association Council.
• 20 March: College of Commissioners. On the agenda: EU biotech and biomanufacturing initiative Skills and labour shortages, and framework for traineeships.
• 21 March: European Central Bank Governing Council. 
• 21 – 22 March: European Council On the agenda: Ukraine, Middle East, security and defence.
• 22 March: Euro Summit. On the agenda: Eurogroup report on the future of the Capital Markets Union (CMU), discussion on the economic situation and exchange of views on policy coordination

Karl Isaksson, Managing Partner Brussels, Kreab

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Kreab • Tel: +32 2 737 6900 • karl.isaksson@kreab.com • www.kreab.com/brussels • Twitter: @KreabEU.