EU Insight, 26 April 2024

Brussels, 26 April 2024

LAST PLENARY OF THE TERM ADOPTS NEW CIRCULAR ECONOMY RULES

This week the European Parliament concluded its last plenary session ahead of its dissolution in preparation for the EU elections which are six weeks away. As such, members endured a voting marathon to formally adopt all legislation finalised in the past couple of month. Notably the Parliament adopted several initiatives in the field of circular economy. Amongst others, a new right to repair regulation making repair easier and more appealing to consumers while imposing repair obligations on producers. The Parliament also adopted a revised product eco-design framework, aiming to improve the durability, reusability, upgradeability, repairability and recyclability of products within the EU. Lastly, members adopted new rules on packaging and packaging waste, aiming to reduce overall packaging and make it more sustainable.

PARLIAMENT ADOPT VARIOUS INITIATIVES FOSTERING THE GREEN TRANSITION

The Parliament adopted two key initiatives aiming to advance the energy and green transition within the Union. First and foremost, members endorsed the Net-Zero Industry Act, which aims to strengthen the EU’s net-zero technology manufacturing capacity. Concretely, as a response to the US Inflation Reduction Act, the initiative aims to foster investments into EU manufacturing of selected strategic net-zero technologies, and thus accelerate their deployment while securing the EU’s supply chains. On a similar note, the Parliament also adopted revised rules to improve air quality across the Union. As such, the rules set stricter limits for air pollutants, aiming to restrain air polluting activities.

NEW DUE DILIGENCE RULES AND A BAN TO PRODUCTS MADE WITH FORCED LABOUR

Corporate governance was also on the plenary’s agenda as the parliament formally adopted two initiatives aiming to strengthen businesses supply chain governance. Firstly, members endorsed the controversial Corporate Sustainability Due Diligence Directive. Notably, the initiative aims to improve the protection of human rights and the environment by requiring companies to conduct due diligence checks across their global value chains. Additionally, members adopted new rules aiming to ban products made with forced labour from EU markets, reinforcing the EU’s commitment to combatting modern slavery. While not imposing additional due diligence requirements, it empowers Member States and the Commission to investigate suspicions of forced labour, and to impose fines and intercept such products.

NEW ANTI-MONEY LAUNDERING RULES AND BANKING REFORMS ADOPTED

Continuing the voting marathon, members endorsed the final texts on numerous key legislations for the financial sector. Amongst these, new rules on dirty money, known as the Anti-Money Laundering Package, as well as banking reforms stand out. The former aims to reinforce, update and harmonize EU anti-money laundering rules, while also establishing a new EU supervisor, aptly named the Anti-Money Laundering Authority. As for the latter, the reforms aim to enhance EU bank’s resilience in times of crises by limiting variability in banks’ capital levels, promoting orderly management of credit, market, and operational risk, as well as harmonizing requirements for branches of third-country banks in the EU.

PARLIAMENT ADOPTS NEW MEASURES TO ENHANCE TRANSPORT AND ROAD SAFETY

The Parliament approved plans to complete major EU transport projects by 2030s. The initiative’s aim is to strengthen connectivity, security and competitiveness in the EU’s transport sector. Notably, the new rules focus on enhancing train mobility, connecting airports to the railway network, as well as shifting away from Russian infrastructure links in favour of increased connectivity with Ukraine and Moldova. The European Parliament also adopted new rules to strengthen EU cooperation on cross-border traffic offences. As a significant number of these offences are in-effectively dealt with, the new rules aim to facilitate communication between Member State authorities and thus educe dangerous driving across the Union.

COMING UP NEXT WEEK

• 29 April: Agriculture and Fisheries Council. On the agenda: rapid and structural responses to the current situation in the agricultural sector
• 29 – 30 April. Informal meeting of the General Affairs Council. On the agenda: rule of law within the enlargement process and upholding the rule of law in the Union of the future.

Karl Isaksson, Managing Partner Brussels, Kreab

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