EU Insight 24 January 2025

Brussels, 24 January 2025

EU LEADERS ADDRESS TRUMP’S START IN THE OVAL OFFICE

All eyes were on Donald Trump on Monday, as he officially took office as the 47^th President of the US. What ensued was a swath of executive orders including the US withdrawal from the Paris Agreement and the World Health Organisation (WHO), as well as further announcements on the future of US trade and energy policy. Throughout the week, EU leaders took to different stages to (in)directly address Trump’s fiery start as President. For instance, speaking at the World Economic Forum, Commission President Ursula von der Leyen emphasised the importance of the Paris Agreement, while Council President Antonio Costa stressed the relevance of a stable, balanced EU-US trade relationship, in front of the European Parliament.

COMMISSION TO TARGET SUSTAINABILITY REPORTING IN THE UPCOMING OMNIBUS PROPOSAL

In an effort to foster competitiveness across Europe, the Commission is eyeing a considerable reduction of red tape as part of the upcoming so-called Omnibus Simplification package. Speaking about the package, announced by von der Leyen back in November, the Commission President, as well as Commissioner Dombrovskis, publicly clarified the package’s aim to streamline requirements under the Corporate Sustainability Reporting Directive, the Taxonomy, and the Corporate Sustainability Due Diligence Directive – although additional items could also be covered. While the Commission is yet to provide further details on the proposal, many stakeholders have already warned against sacrificing sustainability ambitions for the sake of competitiveness. Set to be presented on 26 February, the package is likely to spur lively political discussions across all stakeholders.

LAUNCH OF THE STRATEGIC DIALOGUE FOR THE AUTOMOTIVE INDUSTRY

The Commission announced the establishment of its Strategic Dialogue on the Future of the Automotive Industry, with the first meeting scheduled for 30 January. This initiative will aim to bring together major players from the automotive sector with the objective of tackling the industry’s toughest challenges while remaining committed to EU’s climate and broader societal goals. More specifically, the Dialogue comes as the Commission has faced significant push-back on the EU’s target to phase out the combustion engine by 2035. Chaired by the President von der Leyen, the goal of the first meeting will be to establish objectives for future action across a series of pillars: including innovation, clean transition, decarbonization, competitiveness, resilience, and international trade relations.

POLITICIANS CALL FOR EU RESPONSE TO SOCIAL MEDIA RISKS FOR DEMOCRACY

EU politicians are being increasingly vocal on the dangers of foreign interference in the electoral process through social media. This follows several interference instances over the past couple of months on the continent, including the manipulation of Romania’s presidential election in November, as well as Elon Musk’s recent meddling ahead of the German elections. Referring to the latter, Tech Sovereignty Commissioner Henna Virkkunen declared that “foreign interference requires a powerful response” from the EU. Similarly, several MEPs called on the Commission to closely examine the degree of compliance of X and its CEO with the EU’s Digital Services Act. Lastly, in Davos, Spanish Prime Minister Pedro Sanchez suggested ending user anonymity on social media, amongst other proposals to tackle the risks social media places on the democratic process.

EUROPEAN HEALTH UNION: COUNCIL ADOPTS INITIATIVE ON HEALTH DATA

The Council adopted the European Health Data Space (EHDS) regulation, which represents an important step towards the completion of the European Health Union. Proposed by the Commission in 2022, the EHDS aims to empower individuals in their access and control of their personal electronic health data, improve research and patient care as well as foster cross-border exchange and access of digital health services across the EU. The adoption of the initiative, which was one of the key priorities of the Polish Presidency, implies more broadly progress towards the creation of a Union-wide single market for electronic data record systems.

COMING UP NEXT WEEK

• 27 January: Agriculture and Fisheries Council. On the agenda: work programme of the Polish Presidency; trade; performance clearance.
• 27 January: Foreign Affairs Council. On the agenda: Russian aggression against Ukraine; EU-US relations; situation in the Middle East.
• 28 January: General Affairs Council. On the agenda: Presidency priorities; annual rule of law dialogue.
• 29 January: College of Commissioners. On the agenda: Competitiveness Compass.
• 29 January: European Parliament Plenary. On the agenda: Holocaust Remembrance Day.
• 30-31 January: Informal meeting of Justice and Home Affairs Ministers.

Tuomas Tierala, Managing Partner Brussels, Kreab

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Kreab • Tel: +32 2 737 6900 • tuomas.tierala@kreab.com • www.kreab.com/brussels • X: @KreabEU  •  LinkedIn: Kreab Worldwide

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