EU Insight 17 July 2026

Brussels, 17 July 2026

COMMISSION REVIEWS FOREIGN SUBSIDIES REGULATION

The Commission has published its first review of the Foreign Subsidies Regulation, concluding that the framework broadly delivers on its objective of addressing distortive foreign subsidies in the single market. Covering the first three years of enforcement, the report points to a growing body of case practice in concentrations, public procurement and ex officio reviews, and underlines the FSR’s role in tackling potentially distortive foreign subsidies. At the same time, feedback from companies and public authorities points to complex reporting obligations, tight deadlines and overlapping information requests, notably on foreign financial contributions. The Commission therefore plans a set of targeted procedural adjustments, including higher notification thresholds and simplified forms, to reduce administrative burden while maintaining its ability to intervene in sensitive cases.

COUNCIL SETS OUT ITS POSITION ON THE 2027 DRAFT BUDGET

The Council has agreed its position on the EU’s draft budget for 2027, which will be the last annual budget under the current multiannual financial framework. The position sets commitments at €191.88 billion and payments at €202.07 billion, excluding instruments outside the MFF. It is presented as a cautious budget that maintains funding for long-term EU priorities while preserving room to react to an uncertain geopolitical environment. As part of the same package, member states also endorsed targeted changes to the 2026 budget, including measures to accelerate cohesion funding and provide extra support for farmers facing higher fertiliser costs. Negotiations with the European Parliament will start once the Council formally adopts its position in September.

EU INSTITUTIONS RAMP UP EFFORTS TO STRENGTHEN CHILDREN’S SAFETY ON SOCIAL MEDIA

Parliament’s Committee on Culture and Education (CULT) has adopted a report calling for stronger EU rules to protect minors online. MEPs propose a so‑called ‘youth mode’ that would switch off targeted advertising and limit addictive design features. The report also calls for an EU code of conduct for influencers, common ethical standards for AI tools that interact with children, and clearer limits on commercial practices that rely on intensive digital exposure of minors. In parallel, following a report by the Special Panel on Child Safety Online, the Commission President signalled that the Commission would table new measures after the summer, including a legally defined minimum age for social media use, phased access for different age groups and an EU‑wide age‑verification app to support enforcement.

GOOGLE FACES BINDING MEASURES ON AI AND SEARCH DATA

The Commission has issued two binding decisions under the Digital Markets Act (DMA) to ensure that competitors can operate on more equal terms with Google in AI assistants and online search. The DMA is the EU’s framework for keeping digital markets fair and contestable by limiting how dominant ‘gatekeeper’ platforms use their position. The first decision requires Google to give rival AI assistants similar access to Android features as its own Gemini service. The second requires Google to share anonymised search data that only it can collect at scale, so alternative search providers and AI tools can improve their services. Data sharing will begin in January 2027, with Android changes following in July.

COMMISSION LAUNCHES NEW DEFENCE PARTNERSHIP AND DRONE DEAL WITH UKRAINE
The Commission and Ukraine have signed a new defence partnership, presented as a major step in integrating their defence industries. Building on bilateral agreements between Ukraine and individual Member States, it creates a single framework to develop advanced defence capabilities, scale up production of battle‑tested systems and strengthen protection against drone and missile attacks. The two sides also launched an EU-Ukraine Drone Deal to connect Ukrainian expertise and innovation with the EU’s industrial base and mobilise investment in joint ventures. In addition, the Commission disbursed a further €1 billion for drone procurement under the Ukraine Support Loan. EU leaders also pointed to progress under BraveTechEU, which supports faster development and deployment of defence technologies.

COMING UP NEXT WEEK

• 20-21 July: Informal meeting of competitiveness ministers.
• 22 July: College of Commissioners. On the agenda: European Pillar of Social Rights action plan
• 23-24 July: Informal meeting of environment ministers.