Welcome to Better Europe’s weekly update on EU Affairs.
OMBUDSMAN CHECKS OMNIBUS BLIND SPOT
The European Commission is under scrutiny after the European Ombudsman opened an investigation into how the Commission prepared its first Omnibus reform package. The investigation follows a complaint filed on 23 May by eight civil society groups who accuse the Commission of circumventing its own Better Regulation rules. What are their grievances? The Commission failed to conduct a public consultation, an impact assessment, or a check on whether the package aligns with the EU Climate Law. The NGOs also argue that the Commission prioritized industry input over a balanced stakeholder approach. Ombudswoman Teresa Anjinho has asked the Commission to explain how it engaged with stakeholders before proposing the reforms. Her findings, which are expected after her meeting with the Commission in June, may not be binding, but they could generate political pressure and demand greater transparency regarding what some view as a hasty legislative shortcut. And it could be an important precedent for the traffic jam of omnibuses still to come, redefining the power balance between the three main EU institutions.
NO HOLIDAYS FOR MEPS THIS WEEK
Although Brussels was rather quiet this week due to the long holiday weekend, MEPs were not off but supposed to work in their constituency or attend delegation visits. Some went across the Atlantic, such as the Committee on International Trade and the Committee on the Internal Market and Consumer Protection, while the majority of other delegates remained within the EU. The Trade delegation arrived in the US capital on Tuesday for a two-day back-to-back with US partners to discuss political and trade relations, a.k.a. tariffs. And what a time to do that, for one can only assume the US federal court’s slap down ruling on Trump’s tariffs, caused some chaos in DC. A delegation of the Budget Control committee went to Slovakia to check on the use of EU funds. Unsurprisingly, meetings with Prime Minister Fico’s SMER party ‘did not alleviate concerns’ and were described as ‘tense’ by German Green MEP Daniel Freund, as Slovakian lawmakers copied the Hungarian tradition of wearing sunglasses during their meetings.
EU PREPARES TO RESHAPE GREEN INVESTMENT PRODUCTS
Amidst the fleet of Omnibuses arriving in Brussels this year, with the fourth one helping the poor “small mid-caps” published last week, one would forget that the first major building blocks of the EU’s sustainable finance regulation are already up for their regular scheduled evaluations. The main one expected for later this year is the Sustainable Finance Disclosure Regulation and its famous Article 6, 8 and 9 disclosures to help consumers better understand the sustainability of investment products sold to them by financial intermediaries. Originally conceived as a catch-all anti-greenwashing framework, it has become a labelling tool that has actually led to institutionalised greenwashing. Now, the Commission seems ready to end the confusion, and introduce a new regime based on two or three clean classes of products, including not only those that are clearly green but also those that have a good chance of becoming green, the transition category. After four knee-jerk deregulation-driven omnibuses, it’s refreshing for the Brussels bubble to be looking at a genuine recalibration of well-intended rules. The Commission closes its final consultation today, so be quick if you want to Have Your Say.