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Circular economy act

Briefing 27-01-2026

The circular economy aims to break away from the traditional linear 'take make use dispose' model by keeping resources in circulation for as long as possible. Its goal is twofold: to lower environmental pressures and increase economic resilience by reducing reliance on virgin materials and unstable global supply chains. Against this backdrop, the planned circular economy act (CEA) must address several structural challenges currently at the centre of the EU policy debate.

In June 2025, EU Member States that are members of NATO committed to a significant increase in spending on defence to 5% of GDP to be reached withing a decade. 3.5% of GDP would be spent on core defence items, 1.5% on defence-related items. Obviously, such commitments come on top of already tight public finances in most of the economies concerned. Against this background, in autumn 2025, the ECON Committee requested external expertise to better understand the potential synergies and tensions between ...

This study explores the competitiveness gap faced by the EU’s seafood sector. Five case studies illustrate how high input costs and relatively low productivity mean that imports, now supply over 80% of the EU’s consumption of fisheries and aquaculture products (FAPs). The policy recommendations provided aim to help secure a more self-sufficient, sustainable, and resilient seafood system. This document was prepared at the request of the Committee on Fisheries (PECH).

Tax obstacles in the single market

At a Glance 20-01-2026

Tax fragmentation across Member States continues to undermine the functioning of the EU single market. Legal uncertainty and administrative complexity create persistent obstacles to cross-border activity. On 27 January 2026, the European Parliament's Subcommittee on Tax Matters (FISC) will host a public hearing on this topic.

In May 2025, the Commission announced its intention to develop the 28th regime initiative for innovative companies as part of its startup and scaleup strategy. In January 2026, Parliament is set to vote on a legislative-initiative report with recommendations to the Commission on the design of the 28th regime.

The ECB’s Governing Council set up a High-Level Task Force to recommend simplifications of banking regulation and supervision, chaired by Vice-President Luis De Guindos. On 11 December 2025, the ECB published the task force’ report. This briefing reviews and analyses the proposals and provides context in view of the ECON committee exchange of views with Vice-President De Guindos on 15 January 2026.

This study examines how PFAS support European industrial competitiveness and the potential impact of a full or partial restriction. Focusing on six key fluoropolymers and F-gases used in aerospace, defence, green energy, and semiconductor sectors, it finds that substitution is often unfeasible, particularly in aerospace, defence and semiconductors. Substantial economic losses and job impacts are predicted under both above restriction options, with risks to Europe’s global competitiveness. The study ...

This study examines housing needs across the EU, focusing on inequalities in affordability, accessibility, and quality. It provides a mapping of the current housing needs in the EU across territories, including across Member States, rural and urban areas, outermost regions, and islands and across population groups. The study analyses key factors affecting housing demand and supply challenges, and the impacts of housing scarcity on health, education and employment. It also reviews how EU legislation ...

This study examines housing needs across the EU, focusing on inequalities in affordability, accessibility, and quality. It provides a mapping of the current housing needs in the EU across territories, including across Member States, rural and urban areas, outermost regions, and islands and across population groups. The study analyses key factors affecting housing demand and supply challenges, and the impacts of housing scarcity on health, education and employment. It also reviews how EU legislation ...

Escalating security threats have revealed defence dependencies that constrain choices and allow for coercion. While there has been progress on the competitiveness agenda, the EU must increase military and economic autonomy further. Industrial policy should move centre stage, drawing past lessons to gain scale and productivity and, with multilateralism stalled, bilateral trade deals are vital. Organising swiftly is needed to strengthen Europe’s standing and enable increased competitiveness. Economic ...