The European Commission has focused on competitiveness, eliminating unnecessary regulations, and economic security by reducing its legal targets for 2027. This change comes as the end of Ursula von der Leyen's second term approaches.
New Legal Priorities
According to the Commission's annual work program, the body intends to strengthen the single market, reduce unnecessary regulations, and modernize industry. Additionally, in light of geopolitical risks and economic uncertainty, it aims to enhance its defense capabilities. The Commission has emphasized that "it must maintain the ability to chart its own course" and that "independence is our priority for the European economy."
Abandoning Failed Proposals
While some existing initiatives, such as the Industrial Acceleration Law, have faced delays, Brussels has focused on finalizing laws that are in preparation. The Commission has also abandoned several proposals that have little chance of acceptance and has repealed some old regulations. For example, the unsuccessful attempt to reform energy taxation is among those that caused disagreements among member states.
The work program also includes new laws for 2027, which feature a "simplification energy package" and reforms for climate and energy laws to achieve the EU's climate goals for 2040. This package includes a mechanism to support the adoption of heat pumps and a European company for the purchase and storage of essential raw materials.
The Commission is also officially abandoning the Green Claims Directive. This law, proposed in March 2023, was intended to assist companies in providing evidence for environmental claims but was set aside due to disagreements between the Commission and EU governments.
Furthermore, the Commission will address other reforms in the area of digital taxation and financial services, planning a package for digital transformation in mid-2027. This package will include simplifications related to AI, data, and cybersecurity regulations.
Brussels is also seeking ways to simplify transport regulations and remove trade barriers between member states. This program aims to enhance competitiveness and reduce unnecessary regulations at the EU level.
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