On July 18, 2024, Ursula von der Leyen, freshly re-elected as President of the EU Commission, presented the Commission’s Political Guidelines for the term of 2024-2029.
President von der Leyen describes Europe as facing a situation where clear choice is needed, under the heading “Europe’s Choice”. Outlining the Commission’s political priorities for this new term, they are grouped around seven core themes:
- Competitiveness and sustainable prosperity for the EU
- Strengthening the EU’s defense and security capabilities
- Supporting social fairness
- Preserving food security, water, and nature
- Protecting the EU’s democratic values
- Asserting the EU’s strategic and global role
- Reforming the EU budget and treaties
In view of the current geopolitical situation, defense and social justice is given a more prominent position within the realm of political priorities.
On the highly debated EU Green Deal, the EU Commission announces that it will continue pursuing the goals set out. However, President von der Leyen emphasizes that the focus must now be on implementing what has been agreed during the previous mandate.
An overall objective of the new mandate is to advance the European economy in a sustainable manner while maintaining competitiveness. This is expected to be achieved by providing funding, harmonizing market rules and accelerating permitting processes. The new strategy should see a shift in focus from producing new legislation to effectively implementing existing policies. Additionally, the “Better Law-making” concept is also making a comeback, as President von der Leyen is calling for a Union that is simpler and faster.
It will be strategically important for companies doing business in the EU to engage with future legislation and anticipate upcoming changes. We have selected the following five items as of particular importance in that regard.
1. Sustainable Prosperity and Competitiveness
President von der Leyen reiterates that the EU must and will stay the course on goals set out in the European Green Deal, which guided her precedent mandate.
Still, in consequence of mounting political and economic pressure, the Commission wants a new European Prosperity Plan, with a significant emphasis on the sustainable competitiveness of the European economy. The new Commission will work towards a new Clean Industrial Deal with the objective of stimulating investment and ensuring affordable and sustainable raw materials and energy supplies. This should be supplemented by a Decarbonization Accelerator Act, with an aim to channel investment in infrastructure and industry, notably in energy intensive sectors.
A noticeable reference is made to the need for new Clean Trade and Investment Partnerships, emphasizing a willingness to step up EU’s green diplomacy, for a mandate which will likely be driven by important trade related concerns.
The pending revision of Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), which was placed on hold during the precedent mandate, is also addressed. In rather ambiguous terms, the President announced that a new Chemicals Industry Package should be put forward, with the aim to “simplify” REACH and “provide clarity” on per-and poly fluoroalkyl substances (PFAS). The direction to be taken by the Chemicals Strategy for Sustainability is noticeably not addressed.
2. Single Market
The EU Commission wants to create a new momentum to complete the Single Market and will undertake measures to alleviate the burden of bureaucracy, streamline legislation and expedite the permitting process. An emphasis is placed on sectors like services, energy, defense, finance, electronic, communications and digital. She also called for a new approach to competition policy, which should be more supportive of companies scaling up in global markets.
3. Circular Economy
In a context of increasing demand for recycled materials and the need to improve waste management, the EU has already put forward a plethora of measures to facilitate the transition to a circular economy under the umbrella of the EU Green Deal. The president calls on continuing the efforts. A new Circular Economy Act should be proposed, notably envisaging solutions to simplify use of secondary materials and importantly seeking to create a single market for waste.
4. Affordable Housing:
To support social fairness, the EU Commission announced that it will put forward an Affordable Housing Plan. As an immediate step, the Commission intend to allow Member States to double their planned cohesion policy investments in affordable housing. To further stimulate investment, EU State aid rules would be revised to support housing measures. The primary focus will be on affordable, energy-efficient, and social housing. Central to this effort will be the swift and effective roll-out of the Social Climate Fund, which will assist with renovations and access to affordable, energy-efficient housing.
5. Climate Change
Although the competitiveness of the EU economy takes a more prominent position in the new political agenda, the future EU Commission will continue to pursue ambitious objectives in relation to the continent’s climate goals. The cabinet of Ursula von der Leyen will put forwards and support an EU-wide 90% net GHG emission reduction target for 2040, relative to 1990.
A strong emphasis is also placed on boosting the blue economy and ensuring the sustainable governance of oceans in a European Oceans Pact.
Preparedness and resilience are presented as key for the next year, with the president announcing a European Climate Adaptation Plan as well as a European Water Resilience Strategy to strengthen Europe’s water security.