Brussels is shifting its focus in 2026, moving away from ambitious green and social policies and prioritizing a reduction in EU regulation and a boost to economic competitiveness. This change in direction follows the June 2024 European elections, which saw a victory for the centre-right European People’s Party (EPP). The EPP is now driving the legislative agenda, signaling a significant alteration in the approach to policymaking within the European Union.
The implications of this shift are far-reaching, impacting everything from trade deals to artificial intelligence policy and defense strategies. Experts predict that simplification efforts will continue throughout the year, alongside increased attention to security and migration concerns. This new course was discussed in a recent episode of the Euronews podcast, “Brussels, My Love?”.
The Drive to Reduce EU Regulation
The EPP’s commitment to reducing EU regulation stems from a belief that excessive bureaucracy hinders economic growth and innovation. According to the party’s platform, streamlining processes and removing unnecessary burdens on businesses will unlock potential and improve the EU’s global competitiveness. This focus is a direct response to concerns raised by industry leaders and member states about the cost and complexity of complying with EU laws.
This simplification momentum is expected to affect a wide range of policy areas. Areas like environmental standards and labor laws, previously central to the EU agenda, are now likely to face increased scrutiny and potential revisions. The aim is to create a more business-friendly environment, attracting investment and fostering job creation.
Impact on Trade
One key area where this shift is already visible is in trade policy. The pending Mercosur trade deal with South American nations, for example, is being re-evaluated with a greater emphasis on economic benefits for European businesses. Negotiations, which have been stalled for years due to concerns over environmental protections and labor standards, may see renewed progress with a more pragmatic approach.
However, this doesn’t necessarily mean a complete abandonment of sustainability considerations. Rather, the focus is likely to be on finding a balance between economic growth and environmental responsibility, potentially through the implementation of more targeted and less restrictive regulations. The European Commission is currently assessing the potential economic impact of the Mercosur agreement, as reported by the European Parliament.
Defense and Migration Priorities
Alongside economic reforms, defense and migration are expected to dominate the EU agenda in 2026. The ongoing geopolitical instability, particularly the war in Ukraine, has underscored the need for increased investment in defense capabilities and closer cooperation among member states. Euronews defense expert Alice Tidey predicts a continued focus on bolstering the EU’s security architecture.
Migration remains a contentious issue, with member states divided over how to manage the influx of asylum seekers and economic migrants. The EPP favors a more restrictive approach, emphasizing border control and the return of irregular migrants. Euronews’ migration expert Eleonora Vasques suggests that finding a common ground on migration policy will be a major challenge for the EU in the coming year.
Navigating the AI Conundrum
The EU is also grappling with the complex task of regulating artificial intelligence (AI). The AI Act, a landmark piece of legislation aimed at establishing a legal framework for AI development and deployment, is nearing completion. However, the EPP’s emphasis on competitiveness could lead to calls for a more flexible approach to AI regulation, allowing European companies to innovate without being unduly constrained.
EU regulation expert Andrea Renda from the Centre for European Policy Studies highlights the delicate balance between fostering innovation and mitigating the risks associated with AI. The final form of the AI Act will likely reflect this tension, potentially incorporating provisions that promote responsible AI development while also encouraging investment and growth in the sector. This is a key area of EU policy and will shape the future of technology within the bloc.
The shift towards prioritizing competitiveness and reducing EU regulation represents a significant turning point for the European Union. While the long-term consequences remain to be seen, it is clear that the EPP’s agenda will have a profound impact on the EU’s economic, security, and technological landscape. The coming months will be crucial in determining how these changes are implemented and whether they will achieve the desired results. Stay informed about these developments and listen to “Brussels, My Love?” for ongoing analysis of European Union affairs and the evolving regulatory landscape.
