EU Insight 26 June 2026

The Commission presented a new simplification package aimed at reducing compliance burdens for businesses by bringing simplification to the EU tax rules. The package includes an Omnibus on Direct Taxation and a Recast of the Directive on Administrative Cooperation (DAC). It intends to modernise the EU’s direct tax framework and is expected to bring around EUR 8 billion annually of savings for EU businesses. Among other elements, the proposal exempts certain cross-border payments from withholding tax, simplifies the interest limitation rule under the Anti-Tax Avoidance Directive (ATAD), and removes certain reporting obligations for cross-border activities and improves taxpayer identification. The proposal has now been submitted to the Parliament for consultation and to the Council for adoption.

The Council and the European Parliament reached an agreement on the update of the EU’s legal framework to combat child sexual abuse crimes. The revision of the rules aims to tackle the challenges that the rapid surge in technological developments has brought by broadening the definition of sexual offences, extending the limitation periods for certain sexual crimes, as well as ensuring a more targeted protection of child victims and expanded legal and medical assistance for them. Technical finalisation has started, after which formal endorsement by co-legislators will follow before final publication. Once published, Member States will have 3 years to transpose the rules into national law.

The Council and the European Parliament achieved a political agreement on the new rules to improve the implementation of passenger rights across all modes of transport in the EU. The revised framework aims to improve the consistency and effectiveness of the existing rules by simplifying complaint procedures, enhancing enforcement by national authorities, and ensuring passengers receive clear information about their rights. It also clarifies reimbursement rules for airline tickets purchased through intermediaries, and introduces standardised claim forms across the EU. In addition, it strengthens protections for persons with disabilities and reduced mobility through improved assistance and service quality standards. The provisional agreement must now be formally endorsed and adopted by both institutions before the new rules can apply.

The European Parliament’s Public Health Committee adopted its own-initiative report, in response to the Commission’s first cardiovascular health plan. In their report, MEPs advocate for a more integrated approach towards cardiovascular diseases (CVDs) prevention, considering their interconnected risk factors and non-communicable diseases. The report calls for increased measures to reduce access to key risk factors such as tobacco or alcohol consumption, and suggests Member States should implement initiatives such as communication and education campaigns. Moreover, the report calls for the introduction of early detection systems, improved access to high-quality care, and for the wide deployment of public awareness preparedness and response programmes.

The Commission, together with senior representatives from Black Sea, Caucasus, and Central Asian countries, launched the Connectivity Agenda Platform, laying the foundations for investments and policy support along the strategic Trans-Caspian Transport Corridor. Against a backdrop of geopolitical tensions and ongoing conflict in the Middle East, EU leaders welcomed the Platform as a step forward in Europe-Asia relations, reinforcing the EU’s objectives on energy security, competitiveness, and trade diversification. Embedded in the EU Global Gateway strategy, the Platform is expected to mobilise up to €2 billion to support new transport infrastructure, enhance connectivity, foster regulatory cooperation, and facilitate trade across multiple regions.

 

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