EU Insight 27 February 2026

US SUPREME COURT RULING PUTS ‘LIBERATION DAY’ TARIFFS & AND EU‑US DEAL IN QUESTION

Last Friday, the US Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) cannot serve as a legal base for the ‘Liberation Day’ tariffs, introduced by the Trump Administration. In response, the Commission has requested clarity from Washington on its intended next steps, while stressing that “a deal is a deal” and that the EU stands by its commitments under the so‑called Turnberry deal. By contrast, the European Parliament’s INTA Committee has frozen its work on ratifying the EU‑US agreement, citing uncertainty over the main US instrument underpinning the negotiations and the Administration’s plan for new 15% across‑the‑board tariffs.

EU LEADERS VISIT KYIV ON THE 4TH ANNIVERSARY OF RUSSIA’S WAR AGAINST UKRAINE

Commission President Ursula von der Leyen and European Council President António Costa joined Ukrainian President Volodymyr Zelenskyy in Kyiv on the fourth anniversary of Russia’s full‑scale invasion. In a joint declaration with Parliament President Roberta Metsola, they reiterated EU support for Ukraine and condemnation of Russia’s aggression. EU leaders underlined that the Union remains Ukraine’s main financial backer, citing close to €200 billion in support since 2022 and the recently agreed €90 billion loan for 2026‑27. Their visit and statements come as the 20th EU sanctions package against Russia and the new loan are facing resistance from Hungary, which is pressing for faster repairs to the Druzhba oil pipeline after repeated Russian attacks.

COMMISSION SIGNS EU-UK COMPETITION AGREEMENT AS ALLIES SEEK CLOSER COOPERATION

The Commission and the United Kingdom have signed an EU‑UK Competition Cooperation Agreement. It creates a formal cooperation framework between the Commission, national competition authorities and the UK Competition and Markets Authority, including notifications of significant antitrust and merger investigations, while preserving confidentiality of shared information. The Council must now adopt a decision for the agreement to enter into force, with the European Parliament’s consent. The agreement supplements the broader Trade and Cooperation Agreement and is part of a wider UK debate on closer alignment with EU rules, as the UK Chancellor Rachel Reeves recently argued that, in trade, “the biggest prize is clearly with the EU”.

NEW EU-WIDE FRAMEWORK SEEKS TO STRENGTHEN ACTION AGAINST ILLICIT FIREARMS

The Commission has tabled a proposal to establish EU‑wide legislation against trafficking and other crimes involving illicit firearms, which are linked to organised crime, terrorism and rising gang violence across Europe. The initiative aims to harmonise how Member States define and penalise offences such as trafficking, illegal manufacture, tampering with markings, and the misuse of 3D‑printed weapons, which are currently treated differently across national legal systems. The draft rules also call for stronger cross‑border cooperation through national firearms focal points, and for improved data collection on seized weapons to identify trends and support investigations. The proposal now moves to the European Parliament and Council for negotiation.

COUNCIL SETS DIRECTION FOR 2030 CONSUMER AGENDA

The Council has adopted conclusions to guide the Commission in implementing the five‑year 2030 consumer agenda. The text updates EU consumer policy for the digital and green transitions by strengthening protections online, promoting sustainable consumption, and reinforcing enforcement across borders while seeking to reduce administrative burdens for SMEs. Priorities include tackling dark patterns and unsafe online products, with extra safeguards for minors, and boosting trusted circular options such as second‑hand, repaired and refurbished goods, alongside firm action against misleading environmental claims. Enforcement should be stepped up through closer EU‑national coordination, possible use of AI in market surveillance, and deeper cooperation with third‑country authorities. The Commission will now translate this guidance into concrete initiatives.

COMING UP NEXT WEEK

• 2-3 March: Informal meeting of European Affairs Ministers.
• 4 March: College of Commissioners. On the agenda: Industrial Accelerator Act, industrial maritime strategy, ports strategy, gender equality strategy 2026-2030, intergenerational fairness strategy.
• 5 March: Justice and Home Affairs Council. On the agenda: Schengen, migration, security issues, EU Drugs Strategy.
• 5-6 March: Informal Meeting of Culture Ministers.
• 6 March: College of Commissioners. On the agenda: Orientation debate on energy prices.
• 6 March: Justice and Home Affairs. On the agenda: Protection of adults, fight against Russian impunity, fundamental rights, fight against organised crime.