EU Insight 23 October 2026

Brussels, 23 October 2026

COMMISSION REVAMPS ARCTIC POLICY AS GEOPOLITICAL STAKES GROW

The Commission and High Representative Kallas have unveiled a new Arctic strategy, updating the EU’s approach for the first time since 2021. The document reflects how drastically the region’s geopolitical landscape has shifted, with Russia and China increasing their presence and new sea routes opening as ice retreats. It gives greater weight to security, including a maritime security hub to monitor subsea cables, shadow fleets and illegal activities. Beyond security, it also addresses climate research, transport links and economic development in areas such as critical raw materials and renewable energy. The Commission underlined that more than half a million EU citizens live in Arctic regions of Denmark, Finland and Sweden, and framed the strategy as part of a closer partnership with Arctic partners and local communities.

COUNCIL AND PARLIAMENT AGREE TARGETED CHANGE TO ETS MARKET STABILITY RESERVE

The Council and the European Parliament agreed on a targeted amendment to the Market Stability Reserve (MSR) of the EU emissions trading system. Under the current rules, any allowances in the reserve above 400 million are invalidated. The deal raises this threshold to 700 million, allowing a larger buffer to be kept in the reserve to support market stability while still limiting oversupply. The change is intended to make the carbon market more resilient and predictable over the coming decade, in line with the Commission’s competitiveness agenda. It does not alter the overall design of the MSR, and a broader review of the emissions trading system, including the reserve’s functioning, is being negotiated separately.

CO‑LEGISLATORS REACH DEAL ON EU SECURITISATION RULES

Banks and investors in Europe are getting a new rulebook for securitisation, a way for banks to turn loans into tradable securities by pooling them into packages that investors can buy and sell. Negotiators from the Council and the European Parliament struck a deal that rewrites part of the framework built after the 2008 financial crisis. Banks will have to hold less capital against transactions classified as low risk, reporting requirements are reduced, and a new label is introduced for securitisations that meet stricter criteria. The aim is to free up room on bank balance sheets so more credit can flow to households and smaller firms. The deal now goes back for legal drafting, with formal adoption expected in the months ahead.

PARLIAMENT TIGHTENS CRITICAL RAW MATERIALS ACT AS COMMISSION STRIKES NEW PARTNERSHIP

The European Parliament backed changes to the Critical Raw Materials Act, the legislation intended to reduce Europe’s dependence on imported metals and minerals, from battery inputs to magnets and defence equipment. MEPs want a dedicated EU critical raw materials centre that can stockpile and coordinate joint purchasing, a €2 billion fund in the next long‑term EU budget, and a conditional export‑control clause to keep certain recyclable permanent‑magnet scrap within the Union. Parliament is now ready to start negotiations with national governments. In parallel, the Commission signed its seventeenth raw materials partnership since 2021, this time with New Caledonia. The Pacific territory supplied just over 3% of global nickel output in 2024, a key input for batteries and stainless steel.

COUNCIL AGREES POSITION TO SIMPLIFY EU DATA, PRIVACY AND CYBER REPORTING RULES

The Council has agreed its position on the Digital Omnibus, the proposal to simplify EU rules on data protection, privacy and cybersecurity. Part of the wider simplification agenda, it aims to make the digital rulebook easier to apply while maintaining strong protection for personal data. Under the Council text, the GDPR’s current definition of personal data stays unchanged, while a principle‑based definition of scientific research is introduced. Cookie rules would list more cases where consent is not needed, such as audience measurement, reducing the number of banners. For incident reporting, the Council replaces the proposed single EU entry point with one in each Member State. Negotiations with the European Parliament will begin once it has adopted its position.

COMING UP NEXT WEEK

• 26-27 October: Agriculture and Fisheries Council. On the agenda: Post-2027 common agricultural policy (CAP), trade, and fisheries.
• 27 October: College of Commissioners. On the agenda: Climate resilience framework and border and migration package.
• 29 October: Transport, Telecommunications and Energy Council. On the agenda: Network charges, energy security, and post-2030 framework.
• 29-30 October: EU-Canada Summit.