REACT-EU is a programme to repair the social and economic damage caused by the COVID-19 pandemic, and to prepare for a green, digital and resilient recovery. REACT-EU seeks to mobilise an additional EUR 47.5 billion from the structural funds for the years 2021 and 2022, and to increase flexibility in cohesion policy spending. Source : © European Union, 2024 - EP

The Just Transition Fund is a financial instrument within the Cohesion Policy, which seeks to provide support to territories facing serious socio-economic challenges arising from the transition towards climate neutrality. The Just Transition Fund will facilitate the implementation of the European Green Deal, which aims to make the EU climate-neutral by 2050. Source : © European Union, 2024 - EP

Progress on the United Nations Sustainable Development Goals has been insufficient, not least because of shocks such as the COVID 19 pandemic and recent wars. The cost of this lack of progress is borne by 'least developed countries' – low-income countries with low indicators of socio-economic development, as defined by the UN. This study reviews the European Union's role in policies that affect poverty in these contexts. It identifies 12 challenges that could be addressed to some extent by further EU action on development policy, climate action, trade and global value chains, and by the EU as an actor in multilateral forums, in line with the policy coherence for development principle. Source : © European Union, 2024 - EP

The emergence of quantum information science and technologies marks a pivotal moment in technological progress. As the strategic importance of quantum gains global recognition, efforts are intensifying to harness its potential while also addressing security and regulatory challenges. With China, the United States and the European Union investing heavily in quantum, the race for technological dominance is well under way. Source : © European Union, 2024 - EP

Directive 2009/138/EC – also known as Solvency II – sets out the prudential regulatory framework for the insurance sector in the EU. The framework aims to establish the single market for insurance services further, while strengthening policyholders' protection. On 22 September 2021, the European Commission tabled a proposal for a directive that would amend Solvency II in essentially three ways: i) lowering regulatory obligations on small and low-risk profile insurance companies, ii) taking into account long-term and climate change risks, and iii) enhancing group-level and cross-border supervision. In the European Parliament, the Committee on Economic and Monetary Affairs (ECON) was assigned the file on 22 November 2021, with Markus Ferber (EPP, Germany) as rapporteur. After Council and Parliament reached a provisional agreement on the text in December 2023, the ECON committee approved it on 29 January 2024. Parliament is set to vote on the adoption of the text at its April II plenary session, and the Council will put the text to the vote as well. Once adopted, the text will be signed by the co-legislators and published in the Official Journal. Third edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure. Source : © European Union, 2024 - EP

In December 2021, the European Commission presented a proposal to amend the Schengen Borders Code, which lays down the rules governing controls at the EU internal and external borders. While debates on the reform of Schengen have been going on for a while, recent challenges – relating to the coronavirus pandemic on the one hand, and attempts to instrumentalise migrants as a way to put pressure on the EU's external borders, on the other – have created new momentum for reform. The Commission's proposal aims to improve the Schengen system's resilience to serious threats, and to adapt it to new challenges. It introduces a new coordination mechanism to deal with health threats at the external borders and a new Schengen safeguard mechanism to provide a common response at the internal borders in situations of threats affecting Member States, including the possibility to transfer irregular migrants apprehended at the internal borders directly back to the competent authorities in the EU country from which it is assumed they just came, without undergoing an individual assessment. Following the provisional agreement reached by the co-legislators in December 2023, Parliament is scheduled to vote on the agreed text during its April II plenary session. Second edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure. Source : © European Union, 2024 - EP

In October 2022, under the European Green Deal, the European Commission tabled a proposal for a recast of the Urban Wastewater Treatment Directive. Dating back to 1991, and instrumental to the achievement of European Union water policy objectives, the directive needs to be updated and adapted to new challenges and realities. The recast proposal would introduce new obligations to do more to control pollution due to rainwater, impose stricter standards for nutrient removal and require advanced treatment for the removal of micro-pollutants. To cover treatment costs, a system of extended producer responsibility (EPR) targeting pharmaceuticals and cosmetics would be set up. To align the directive with the Green Deal's ambitions, an energy neutrality obligation would be introduced for wastewater treatment plants. Water reuse and sludge management requirements would be clarified to enhance circularity. Health parameters would be monitored in wastewater to support public health action. The European Parliament and the Council reached a provisional agreement on 29 January 2024. The text was endorsed by Member State representatives on 1 March and by Parliament's Committee on the Environment, Public Health and Food Safety on 11 March 2024. It now awaits formal adoption by the co-legislators. The plenary vote is scheduled for the April I 2024 session. Third edition. The 'EU Legislation in Progress' briefings are updated at key stages in the legislative procedure. Source : © European Union, 2024 - EP

In July 2023, the European Commission tabled a package of proposals aimed at greening freight transport. One of these proposals focuses on improving the use of rail infrastructure capacity. The proposed text suggests changes to the rules governing the planning and allocation of railway infrastructure capacity, which are currently outlined in Directive 2012/34/EU and Regulation (EU) No 913/2010. The goal of the changes is to enhance the management of rail infrastructure capacity and traffic as a way to ensure improved service quality, optimised railway network usage, increased traffic capacity and the possibility for the transport sector to contribute to decarbonisation. In the European Parliament, the file was referred to the Committee on Transport and Tourism (TRAN), which appointed Tilly Metz (Greens/EFA, Luxembourg) as rapporteur. The TRAN committee adopted its report on 4 March 2024. Parliament adopted its first-reading position during its March 2024 plenary session. Third edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure. Source : © European Union, 2024 - EP

Eurodac is a biometric database in which Member States are required to enter the fingerprint data of asylum-seekers or irregular migrants in order to identify where they entered the EU, and whether they have previously submitted asylum applications elsewhere in the EU. In 2016, the Commission proposed to review the Eurodac Regulation to enhance the practical implementation of the Dublin system, facilitate returns and use the database to tackle irregular migration. During the April I plenary session, the European Parliament is due to vote its first-reading position on the agreement resulting from interinstitutional negotiations. Source : © European Union, 2024 - EP

The 2015 migration crisis in Europe called into question existing EU legislation on asylum, in particular the criteria according to which asylum applicants can qualify for international protection status, as recognised in the Qualification Directive. In July 2016, the Commission put forward a proposal to replace the directive with a regulation, setting uniform standards for the recognition of people in need of protection and for the rights granted to beneficiaries of international protection. The December 2023 trilogue agreement is scheduled to be voted by Parliament at first reading during the April I plenary session. Source : © European Union, 2024 - EP

Sustained pressure at the EU's external borders and high numbers of asylum applications have revealed shortcomings at the borders and deficiencies in and imbalances between Member States' asylum systems. In December 2020, the Commission presented a pact on migration and asylum, including a proposal for a regulation establishing a screening procedure for third-country nationals who arrive irregularly at the EU's external borders. The aim is to streamline the EU migration and asylum processes by swiftly identifying and channelling irregular migrants and asylum-seekers into the appropriate procedures. Parliament is to vote in April on the agreement reached by the co-legislators in December. Source : © European Union, 2024 - EP

During the April I plenary session, as part of the discharge procedure for the 2022 financial year, the European Parliament is due to vote on discharge for 33 EU decentralised agencies and 9 joint undertakings. The Committee on Budgetary Control (CONT) recommends granting discharge to all decentralised agencies, bodies and joint undertakings, and presents some observations to further improve sound financial management. Source : © European Union, 2024 - EP

The Commission's proposal to introduce screening of third-country nationals at the external borders provides for identity and security checks based on the consultation of relevant national and European information systems. To implement these checks, the legal bases of the relevant EU systems for border management and security need to be amended, and Parliament is due to vote on a trilogue agreement on this in April. Source : © European Union, 2024 - EP

During the April I plenary session, the European Parliament is due to vote on two proposals to strengthen national equality bodies' powers and mandate to fight discrimination on grounds of sex, race, religion or belief, disability, age and sexual orientation. Source : © European Union, 2024 - EP

In September 2020, as part of the EU pact on migration and asylum, the European Commission adopted a proposal on asylum and migration management. It would replace the 2013 Dublin Regulation that determines the EU Member State responsible for examining asylum applications. While the proposal 'essentially preserves' the current criteria for determining this responsibility, it would also make additions to the existing regulation, in particular on solidarity and responsibility-sharing for asylum-seekers among Member States. During the April I plenary session, the European Parliament is due to vote its first-reading position on the December 2023 agreement resulting from interinstitutional negotiations. Source : © European Union, 2024 - EP

In 2020, the European Commission proposed a new pact on asylum and migration, which includes a proposal for a regulation dealing with crisis and force majeure in the area of migration and asylum. The aim is to establish a mechanism for dealing with mass irregular arrivals of migrants in a Member State. The December 2023 agreement is scheduled to be voted by Parliament at first reading during the April I plenary session. Source : © European Union, 2024 - EP

European Commission President Ursula von der Leyen met with President Abdel Fatah al-Sisi of Egypt, in Cairo on 17 March 2024, joined by the prime ministers of Austria, Belgium, Cyprus, Greece and Italy. This meeting sealed the €7.4 billion EU-Egypt Strategic and Comprehensive Partnership (the Partnership) to help boost Egypt's faltering economy and avert another migration crisis in Europe. Critics have raised concerns over the declared urgency of disbursing funds under this partnership without the approval of the European Parliament, as well as over Egypt's poor human rights record and the dubious effects of such partnerships on irregular migration. Source : © European Union, 2024 - EP

As part of its fight against harmful substances, on 13 February 2023 the European Commission tabled a proposal for a directive aimed at protecting workers' health by lowering occupational exposure to lead and diisocyanates. In Parliament, the Committee on Employment and Social Affairs, which is responsible for the file, adopted its report on 7 September 2023. The mandate to enter into interinstitutional negotiations was endorsed by the plenary the following week. On 14 November 2023, Parliament and the Council reached a provisional agreement. Parliament approved the agreed text on 7 February 2024; the Council followed on 26 February 2024. The final act was signed on 13 March 2024. The directive sets, for the first time, occupational limit values for diisocyanates, while revising the limit values for lead for the first time in more than 40 years. It also includes a review mechanism to guarantee regular revisions from now on to make sure that those limit values will be regularly updated, taking into account the latest scientific data. Fourth edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure. Source : © European Union, 2024 - EP

Russia's invasion of Ukraine, including the military build-up before the invasion began on 24 February, dominated every one of the nine meetings of the European Council in 2022. It affected most issues with which the European Council dealt during the year, ranging from energy policy to the broader economy, to security and defence, to enlargement, to external relations. The extent of the EU's humanitarian, economic, political (notably in the form of EU candidacy), and even military assistance to Ukraine was extraordinary. But it came at a cost for the European Council, as leaders grappled with the nature, amount, and timing of the EU's support, and with the ancillary energy crisis and economic distress. Many eastern European leaders, passionate in their support for Ukraine and critical of what they saw as the long-standing naivety towards Russia of several of their western European counterparts, chafed at the traditional leadership in the European Council of France, Germany, and the fabled Franco-German engine. By the end of 2022, the European Council had taken many consequential decisions in the shadow of a large-scale war raging just outside the EU's eastern border. The fallout from that war was bound to affect not only the EU as an entity, but also the European Council as an institution. Source : © European Union, 2024 - EP

On 1 June 2023, the European Commission presented a legislative package to modernise and reinforce maritime rules on safety and pollution prevention. The package contains proposals to revise five legal acts, including the Port State Control Directive (PSCD). The aim is to update them so that they are in line with the requirements of the International Maritime Organization and the regional organisation for port state control set up under the Paris Memorandum of Understanding (MoU). The proposal refers to the inspection of foreign ships in national ports, to verify that the ships' condition complies with international regulations, including for crews. The PSCD would be extended to cover additional international rules such as new conventions on ballast water and removal of wrecks, and updated rules under the Paris MoU. It would give more importance to ships' environmental performance in determining their risk profile, and boost Member States' capacity to detect and address cases of non-compliance with standards and rules on safety, environmental protection and pollution prevention. The scope would be extended to fishing vessels. The European Parliament's Committee on Transport and Tourism (TRAN) adopted its report on 7 December 2023. On 27 February 2024, Parliament and Council reached a provisional agreement, which was endorsed by TRAN on 20 March 2024. Parliament is expected to vote on the text during its April I 2024 session. Third edition of a briefing originally drafted by Karin Smit-Jacobs and subsequently updated by Monika Kiss. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure. Source : © European Union, 2024 - EP

The Single European Sky (SES) initiative seeks to make EU airspace less fragmented and to improve air traffic management in terms of safety, capacity, cost-efficiency and the environment. Its current regulatory framework is based on two legislative packages: SES I (adopted in 2004), which set up the principal legal framework, and SES II (adopted in 2009), which aimed to tackle substantial air traffic growth, increase safety, and reduce costs and delays and the impact of air traffic on the environment. Nonetheless, European airspace remains fragmented, costly and inefficient. The European Commission presented a revision of the SES in 2013 (the SES 2+ package). While the Parliament adopted its first-reading position in March 2014, in December 2014 the Council agreed only a partial general approach, owing to disagreement between the UK and Spain over the application of the text to Gibraltar airport. With Brexit having removed this blockage, the Commission has amended its initial proposal. Following lengthy negotiations, the Council and Parliament negotiating teams reached a provisional agreement on 6 March 2024 which needs the formal approval of both institutions. Parliament is scheduled to vote on the text during its April II 2024 plenary session. Third edition of a briefing originally drafted by Maria Niestadt. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure. Source : © European Union, 2024 - EP

On 1 June 2023, the European Commission presented a maritime safety package, including a proposal on a revised directive for compliance with flag state requirements. Revision of the rules is needed to take account of digitalisation, improve inspections and cooperation between flag states, and align with international rules on safety, pollution prevention, and working conditions, through inspections and surveys. This is to ensure EU flag states discharge their international law obligations. The proposal covers requirements for flag state inspections, based on International Maritime Organization rules. The objective is to improve maritime safety and reduce the risk of environmental pollution, ensuring that EU flag states continue to provide high quality shipping services. The proposal facilitates information sharing between flag states on the results of inspections and compliance issues in general. The European Maritime Safety Agency is to support this cooperation through revised training programmes for flag state inspectors. The European Parliament's Transport and Tourism Committee (TRAN) adopted its report on 7 December 2023. On 27 February 2024, Parliament and Council negotiators reached a provisional agreement on the conditions under which flag and port states check if vessels are safe to sail. On 20 March 2024, the TRAN committee endorsed the provisional agreement, which is now scheduled for a plenary vote during the April I 2024 part-session. Third edition of a briefing originally drafted by Karin Smit Jacobs and subsequently updated by Monika Kiss. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure. Source : © European Union, 2024 - EP

On 26 April 2023, the European Commission put forward a 'pharmaceutical package' to revise the EU's pharmaceutical legislation and make medicines more available, accessible and affordable, while supporting the competitiveness and attractiveness of the EU pharmaceutical industry, with higher environmental standards. The package includes proposals for a new directive and a new regulation, which would replace the existing pharmaceutical legislation, including the legislation on medicines for children and for rare diseases. The European Parliament is expected to vote on its position at first reading during its April I plenary session. Second edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure. Source : © European Union, 2024 - EP

In absolute figures, Italy's national recovery and resilience plan (NRRP) is the largest national plan under the ground-breaking Next Generation EU (NGEU) instrument. In December 2023, a revision brought about various changes to the plan: it is now endowed with EU resources worth €194.4 billion in grants and loans, representing 26.1 % of the Recovery and Resilience Facility (RRF), or 10.8 % of the country's gross domestic product (GDP) in 2019 (the RRF being 5.2 % of EU 27 GDP in 2019). A slight upward revision of Italy's grant allocation in June 2022 and the inclusion of a new energy-focused REPowerEU chapter resulted in a €2.9 billion increase on the initial plan. In addition, Italy has earmarked national resources worth €30.6 billion to strengthen a vast programme of reforms and investment designed to promote Italy's economic recovery, while addressing a number of structural weaknesses and pursuing major objectives such as the green transition and digital transformation. Measures under the plan are to be completed by 2026. Italy has so far received 52.7 % of the resources (€102.5 billion in pre-financing and four payments for both grants and loans); this is well above the EU average (34.5 %). Another six payments each for grants and loans will depend on further progress in implementation. At the end of 2023, Italy had spent €43 billion or 22 % of the EU resources available for its NRRP, which suggests the importance of the period through to August 2026 for full implementation, not least of its investment measures. A major advocate of creating a common EU recovery instrument, the European Parliament participates in interinstitutional forums for cooperation and discussion on its implementation and scrutinises the European Commission's work. This briefing is one in a series covering all EU Member States. Sixth edition. The 'NGEU delivery' briefings are updated at key stages throughout the lifecycle of the plans. Source : © European Union, 2024 - EP

On 23 January 2024, the European Commission put forward a proposal for a regulation amending Regulations (EU) 2017/745 and (EU) 2017/746, to give manufacturers time to apply the EU legislation on, respectively, medical devices and in vitro diagnostic medical devices (IVDs) under certain conditions, without compromising safety requirements. IVDs are non-invasive tests used on biological samples (such as blood, urine or tissues) to determine the status of a person's health. A considerable number of IVDs currently on the market do not yet comply with the new rules adopted in 2017, nor have they been replaced by new devices. The situation is especially critical for high-risk IVDs, used, for example, to test for infections in blood and organ donations. The proposed regulation aims to address risks of IVD shortages in the EU and speed up the launch of some elements of the European database on medical devices (Eudamed). The proposal is now with the co-legislators. In the Council, Coreper agreed on the text of the proposal without amendments on 14 February 2024. In the European Parliament, the file was assigned to the Committee on the Environment, Public Health and Food Safety. It is expected to be voted during the April II plenary, under the urgent procedure – Rule 163 of the Rules of Procedure. First edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure. Source : © European Union, 2024 - EP

At the March European Council meeting, discussions focussed on the war in Ukraine, security and defence, the Middle East and enlargement. With a new sense of urgency, EU leaders reiterated their steadfast support for Ukraine, calling on the Council to rapidly adopt an eighth support package for Ukraine. Regarding security and defence, they agreed on the need to increase defence readiness and boost the defence industry, but did not agree on ways of promoting the defence sector. On the Middle East, EU leaders finally agreed on a common message, notably calling for an ‘immediate humanitarian pause leading to a sustainable ceasefire’. On enlargement, they decided to open accession negotiations with Bosnia and Herzegovina. EU leaders also adopted conclusions on migration, agriculture and the European Semester. The meeting was followed by a Euro Summit. Source : © European Union, 2024 - EP

The Markets in Financial Instruments Directive (MiFID) and the Markets in Financial Instruments Regulation (MiFIR) are the principal texts regulating investment services and financial markets activities in the EU. Following a European Commission proposal to amend the MiFID and the MiFIR. a provisional trilogue agreement was reached on 29 June 2023, and the final act was published in March 2024. The new rules establish an EU-wide consolidated tape for EU financial markets, as well as making changes to their market structure so as to increase their transparency and competitiveness. Consolidated tape is a high-speed electronic system that reports the latest price and volume data on transactions. Fourth edition of a briefing originally drafted by Angelos Delivorias. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure. Source : © European Union, 2024 - EP

The European Court of Auditors (ECA) is in charge of the audit of EU finances. As the EU’s external auditor, it contributes to improving EU financial management and acts as the independent guardian of the financial interests of the citizens of the Union. Source : © European Union, 2024 - EP

Economic indicators show that the United States (US) is the front-runner for both private investment in artificial intelligence (AI) and venture capital in generative AI, followed by China. US companies are also developing most of the large languages models (LLMs) underpinning AI innovation. EU starts-up are beginning to scale up. Source : © European Union, 2024 - EP

Since mid-November 2023, the Iran-backed Houthi militia, which controls large parts of Yemen, has attacked numerous Western commercial ships near the Bab el-Mandeb Strait in the Red Sea. In response, major shipping companies have temporarily suspended Suez transits and diverted their trade. This diversion coincides with decreasing freight in another maritime chokepoint, the Panama Canal, provoked by lowered water levels. Rounding South Africa via the Cape of Good Hope is the shortest alternative route for travel by ship between Asia and Europe, a route that increases shipping time by 10 to 14 days. Shipping prices had already been on the rise recently, owing to increased fuel and insurance costs. The diversion has caused delays that have disrupted global supply chains, with certain companies choosing to halt production in their factories. If the situation persists or worsens, it could further affect energy supplies and prices, all this potentially contributing to higher inflation. This could, in turn, hamper the efforts of central banks to achieve a 'soft landing'. If, in addition, United States (US) and European Union (EU) central banks decide to keep interest rates high, developing countries will have to pay premium prices for international debt, raising repayment risks for many countries in Africa that have maturity deadlines this year. The attacks have reduced income from maritime fees and could affect commodity exports for some countries in the region, worsening an already precarious economic situation. If the situation persists or worsens, it could also impact trade for other countries in east Africa and aggravate food security challenges, generating social unrest in countries in the region. In addition to the attacks on ships, there are suspicions that the Houthis have been involved in damage to submarine communications cables. This damage – to what is categorised as critical infrastructure – could represent a significant cost to the EU and other economies. Following calls by the European Parliament and Council, the European Commission has recently adopted a recommendation on the security and resilience of submarine cable infrastructures. Source : © European Union, 2024 - EP

The Artificial Intelligence (AI) Act moved close to final adoption when the European Parliament voted in favour of the text on 13 March. It will become law after the final endorsement of the Council of the European Union, making the Union the first major world power to adopt horizontal legislation governing AI. The act defines the rules for using and selling artificial intelligence systems in the EU, and regulates general-purpose AI tools such as ChatGPT and AI-based biometric surveillance. It also requires much more transparency than up to now in high-risk AI systems, and delineates unacceptable risks of AI. This note offers links to recent reports and commentaries from some major international think tanks and research institutes on artificial intelligence. More publications on the topic can be found in a previous edition of What think tanks are thinking. Source : © European Union, 2024 - EP

In areas in which the European Union does not have exclusive competence, the principle of subsidiarity, laid down in the Treaty on European Union, defines the circumstances in which it is preferable for action to be taken by the Union, rather than the Member States. Source : © European Union, 2024 - EP

In the Common Foreign and Security Policy (CFSP), as well as in several other fields such as enhanced cooperation, certain appointments and treaty revision, the decision-making procedure is different from that prevailing in the ordinary legislative procedure. The dominant feature in these fields is a stronger component of intergovernmental cooperation. The challenge of the public debt crisis has led to increased use of such decision-making mechanisms, notably in the framework of European economic governance. Source : © European Union, 2024 - EP

On 15 December 2021, the Commission presented a proposal to regulate methane emissions reductions in the energy sector. The proposal is part of the second batch of proposals in the 'fit for 55' package, seeking to align EU climate and energy laws with the EU Climate Law's 2030 target. The proposal addresses gaps in the current legislation: those relating to methane emissions from upstream exploration and the production of oil and fossil gas, but also those from the gathering and processing of fossil gas, the transmission, distribution and underground storage of gas, and liquid gas terminals operating with fossil and/or renewable methane. In Parliament, the proposal was referred to the Committees on Environment, Public Health and Food Safety (ENVI) and on Industry, Research and Energy (ITRE). On 26 April 2023, they adopted their joint report, which introduced several amendments to the proposal. Parliament adopted its position for the trilogue negotiations on 9 May 2023, without changes to the joint committee report. On 15 November 2023, Parliament and Council reached a provisional agreement on the proposal. Coreper endorsed it on 15 December 2023 and ENVI and ITRE on 11 January 2024. Parliament is expected to vote on the agreed text during its April I plenary session. Fourth edition. The 'EU Legislation in Progress' briefings are updated at key stages in the legislative procedure. Source : © European Union, 2024 - EP

To evaluate the European Union’s (EU) policy framework towards China, this study analyses the varied facets of bilateral relations and the EU’s approach towards China, including its policy of de-risking, together with issues relating to China’s domestic politics and foreign policy. It highlights the need for the EU to adopt a coherent vision and a comprehensive and consistent long-term China strategy that can guide its future actions towards China and on the world stage. Based on its findings, it also provides a series of specific recommendations for the EU on the numerous topics analysed in the study. Source : © European Union, 2024 - EP