EU Insight 24 July 2026

Brussels, 24 July 2026

EU ADOPTS 21^ST SANCTIONS PACKAGE AGAINST RUSSIA

EU Member States this week adopted the bloc’s 21^st package of sanctions against Russia, further tightening restrictions linked to the war of aggression in Ukraine. The new measures concentrate on energy, financial services, including crypto, trade and Russia’s military‑industrial base. They include maintaining the current oil price cap level for another year, adding 41 ‘shadow fleet’ tankers to the list of vessels barred from EU ports and services, and extending transaction bans to more than 100 Russian banks, which will also lose access to key financial messaging systems. The package also creates the legal basis for an EU‑wide visa ban on Russian combatants and ex‑combatants, which will only apply once the Council adopts separate implementing measures.

ELECTRIFICATION PLAN & ETS REVIEW PRESENTED TO SUPPORT DECARBONISATION

The Commission presented a proposal to revise the EU Emissions Trading System (ETS) alongside a new Electrification Action Plan. The ETS review would adjust the post‑2030 emissions reduction trajectory, maintain free allocation beyond 2030 under stricter conditions linked to decarbonisation investments, and set up an Industrial Decarbonisation Bank expected to provide around €100 billion for low‑carbon projects. The Electrification Action Plan responds to stagnating electrification rates and Europe’s exposure to volatile fossil fuel imports. It outlines an indicative electrification target of 46% by 2040 and measures to narrow the price gap between electricity and gas, modernise electricity grids and support the roll‑out of technologies such as electric vehicles, batteries and heat pumps.

COMMISSION SETS OUT BANKING COMPETITIVENESS RECOMMENDATIONS FOR 2027 PACKAGE

The Commission adopted a Communication on the competitiveness of the EU banking sector and the single market in banking, delivering on a commitment under the Savings and Investments Union Strategy. The text sets out a diagnosis of the EU banking sector’s competitiveness, and direction for a legislative package in the first quarter of 2027. It also confirms the Commission’s vision of a more integrated, resilient and innovative EU banking market that better supports growth, capital‑markets development and the financing of the EU’s strategic priorities. It is structured around three pillars: market integration with safeguards, implementation of international standards reflecting EU specificities and proportionality, and simplification of microprudential, macroprudential, resolution and reporting rules.

COMMISSION IMPOSES €1.4 BILLION IN DMA/DSA FINES ON GOOGLE AND ALIEXPRESS

The Commission imposed over €1.4 billion in fines on Google and AliExpress for breaches of the Digital Markets Act and the Digital Services Act. Google received two fines totalling €890 million after the Commission found that it gave preferential treatment to its own services in search results and restricted app developers’ ability to steer users towards alternative, often cheaper purchase channels outside Google Play. AliExpress was fined €550 million for failing to properly assess and mitigate systemic risks linked to the sale of illegal, unsafe and counterfeit products on its platform, including shortcomings in moderation systems and enforcement of penalties against traders. Both companies must adjust their practices within set deadlines or face further penalties.

MEPS DISCUSS UKRAINE AND TRADE IMBALANCES WITH CHINESE COUNTERPARTS

The European Parliament’s Foreign Affairs Committee spent three days in China for a series of high‑level meetings with Chinese authorities. MEPs discussed the geopolitical implications of EU-China relations, Russia’s war in Ukraine, human rights concerns and trade imbalances. MEPs called for more balanced trade relations and urged their counterparts to use their influence over Russia to seek a ceasefire in Ukraine and a just peace in line with the UN Charter. They also raised concerns about transfers of dual‑use goods to Russia and stressed the need for greater reciprocity in economic ties. Both sides signalled interest in a more structured political dialogue, with the Committee due to adopt its recommendation on EU‑China relations in the autumn.

COMING UP NEXT WEEK

• 28-29 July: Informal meeting of fisheries ministers.

The EU Insight will return after the summer break. We wish you a lovely Summer.