EU Insight 22 May 2026

Brussels, 22 May 2026

COUNCIL AND PARLIAMENT REACH PROVISIONAL DEAL ON EU-US TARIFFS AGREEMENT

The Council and Parliament have reached a provisional agreement to implement the tariff elements of the August 2025 EU‑US Joint Statement on Trade, so-called Turnberry Agreement. The deal would remove remaining customs duties on US industrial goods and grant preferential access, including tariff‑rate quotas and reduced tariffs, for certain US seafood and non‑sensitive agricultural products. It also builds in a dedicated safeguard mechanism, reinforced suspension powers and a sunset clause to the end of 2029, giving the EU tools to respond if imports from the US surge or Washington fails to respect its commitments, including on steel and aluminium derivatives. Bernd Lange, Chair of Parliament’s trade committee and rapporteur, welcomed the compromise and expressed hope that it can be fully implemented by June.

COMMISSION ANTICIPATES ECONOMIC SLOWDOWN IN ITS 2026 SPRING FORECAST

PARLIAMENT APPROVES NEW RULES ON SCREENING FOREIGN INVESTMENTS IN STRATEGIC SECTORS

MEPs approved new EU rules on foreign investment screening during this week’s plenary, aimed at protecting sensitive sectors such as defence, financial services, artificial intelligence and semiconductors. The revised framework makes screening mandatory for all Member States in these areas, with the goal of identifying and addressing possible security or public‑order risks while remaining open to foreign capital and simplifying procedures for investors. It also strengthens cooperation between national screening authorities and the Commission, including on cross‑border cases. The new rules expand the range of information to be shared between authorities and set clearer deadlines for reviews. The regulation now awaits formal Council approval before entering into force, with application foreseen 18 months later.

COMMISSION ADOPTS FERTILISER ACTION PLAN AMID SUPPLY CONCERNS

The Commission has adopted a Fertiliser Action Plan to help protect farmers from high fertiliser costs and reduce Europe’s dependence on imports. The initiative follows recent supply disruptions and price volatility, which have exposed how vulnerable EU agriculture remains to external shocks. The plan combines immediate support for farmers, including liquidity relief and more flexible use of CAP funds, with longer-term efforts to strengthen domestic production and shift towards low-carbon, bio-based, and circular fertilisers. The Commission also plans to improve market monitoring, assess options such as stockpiling, and launch a fertilisers value chain partnership bringing together producers, farmers and Member States. A financial support package and a targeted legislative proposal to adjust CAP rules are expected to be presented before the summer.

EUROPEAN INNOVATION COUNCIL FINALISES €5 BILLION SCALEUP EUROPE FUND

The European Innovation Council (EIC) has selected Sweden‑based investment firm EQT to act as investment adviser and fund manager for the €5 billion Scaleup Europe Fund. Described as the largest fund of its kind in the EU, the vehicle is a joint initiative of the Commission and leading European private investors and will focus on late‑stage deep‑tech companies. It is expected to invest across sectors such as AI, semiconductors, biotech and clean energy, helping to address the financing gap facing high‑growth European tech firms. While the Commission remains among the founding investors, day‑to‑day management and the investment strategy will largely lie in EQT’s hands, with the aim of ensuring independent, market‑based investment decisions. The fund’s first investments are planned for autumn 2026.

COMING UP NEXT WEEK

• 26 May: General Affairs Council. On the agenda: June European Council, Multiannual Financial Framework, EU-UK relations, rule of law dialogue, municipal elections and future of Europe.
• 26 May: Agriculture and Fisheries Council. On the agenda: Fertilisers and trade-related agricultural issues.
• 27 May: College of Commissioners. On the agenda: Communication on humanitarian aid.
• 27 May: European Economic Area Council.
• 27-28 May: Informal meeting of foreign affairs ministers.
• 28 May: Competitiveness Council. On the agenda: Industrial Accelerator Act, 28^th regime, sustainable tourism and impact of Middle East crisis on tourism, and challenges of the EU chemical industry.
• 29 May: College of Commissioners. On the agenda: Orientation debate on EU-China relations.
• 29 May: Competitiveness Council. On the agenda: Horizon Europe, science diplomacy, Space Act, and space for economic security.

ALSO NEXT WEEK – KREAB’S 20KM RUN IN SUPPORT OF PELICANO

On Sunday 31st of May, 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