Welcome to Better Europe's weekly update on EU Affairs. CUTTING THROUGH RED TAPE, OR JUST CUTTING TREES? Just months before the EU Deforestation Regulation (EUDR) takes effect, conservative MEPs are already pushing to prune it. Earlier this week, the Parliament’s environment committee backed an EPP-led resolution calling for a new “negligible risk” country category, designed to spare most EU countries from the regulation’s strict controls. The non-binding text, passed with the help of far-right groups, urges the Commission to rethink its risk classification, currently based on 2020 data. But critics say the move reeks of political convenience. “Hypocritical,” said Green MEP Thomas Waitz, noting that the same parties had fought hard against a forest monitoring law that would have provided more up-to-date data in the first place. The Commission says…

Welcome to Better Europe's weekly update on EU Affairs. BRUSSELS PUTS ITS GREEN MONEY WHERE ITS TANKS ARE The Commission is tearing down bureaucratic barriers to accelerate defence investment across the bloc, with a fresh Omnibus package aimed at strengthening Europe’s military readiness and deterring external threats (notably, a resurgent Russia). Unveiled in Strasbourg on Tuesday, the package — the fifth of its kind — streamlines rules on competition, state aid and mergers to create a more predictable and investment-friendly framework for public and private players. It’s all part of the EU’s plan to foster a joint “industrial and technological defence base,” as laid out in its White Paper on Defence and Preparedness back in March. The Commission also wants to settle a long-standing ESG debate: defence is now officially…

Welcome to Better Europe's weekly update on EU Affairs. SUMMIT SEASON KICKS OFF This Sunday, G7 leaders will gather in Alberta, Canada, where newly elected Prime Minister Mark Carney will host his first summit. He will not be the only G7 newbie – Shigeru Ishiba and Friedrich Merz are in the same boat. Trump will be there too, along with Zelensky, who will be discussing Ukraine, trade disputes, climate goals and the digital race. However, the summit is just the beginning of this diplomatic marathon. NATO leaders will meet in The Hague from 24 to 25 June, and the EU Council will meet from 26 to 27 June. The timing is unfortunate: Member States won't have had a chance to agree on common EU positions before chatting with NATO and…

Welcome to Better Europe's weekly update on EU Affairs. THE EU’S CLIMATE TARGET: WAITING FOR GODOT? The EU’s ambitious climate targets are facing serious obstacles as the Commission's continued delay in proposing a 2040 climate target has left many questioning whether the bloc is dragging its feet on its green promises. With mounting political opposition and reluctant member states, the EU's climate agenda seems to be stuck. Meanwhile, the Green Finance Observatory warns that the EU's plan to privatize conservation policies might be putting the cart before the horse. They are concerned about the risks of making nature "investable" and the potential pitfalls of biodiversity offsetting. Adding fuel to the fire, climate scientists are urging the EU not to rely on international carbon offsets, calling them "not worth the paper…

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…

Welcome to Better Europe's weekly update on EU Affairs. THE EU’S NEW MOTTO: GROW FIRST, COMPLY LATER In a move seen as a boost for business, but likely to raise eyebrows among environmental and data rights advocates, the Commission this week unveiled a new category of companies, the "small mid-caps", in its fourth “simplification” proposal Omnibus IV. Instead of stretching the SME definitions are previously considered, 38 000 companies in Europe with up to 750 staff and 150 million euro turnover will benefit from major reporting exemptions across eight EU laws. By also applying the current SME exemptions in these laws to “SMCs”, only some 10 000 companies will be left to actually (fully) comply. Internal Market Commissioner Stéphane Séjourné praised the initiative as the EU’s “most significant economic strategy” to date,…

Welcome to Better Europe's weekly update on EU Affairs. FARMERS GET THEIR OWN OMNIBUS TO 'SIMPLIFY' AGRICULTURAL POLICY The Commission’s latest Omnibus package promises €1.5 billion in annual savings for farmers, but critics say the only thing being cut is environmental ambition. Dubbed a simplification of the Common Agricultural Policy (CAP), the proposal relaxes environmental regulations and gives member states more leeway on farm aid. Key changes include raising the flat-rate payment for small farmers from €1,250 to €2,500 and exempting them from several environmental requirements. Protections for peatlands and waterways are now at the discretion of each country, and crisis payments could replace preventive climate measures. Critics warn that the easing of environmental safeguards, designed to protect soil, water, and biodiversity, risks making farms more fragile amid growing climate…

Welcome to Better Europe's weekly update on EU Affairs. WHEN EVERYTHING IS URGENT, NOTHING IS What do shooting wolves, reducing penalties for excessive car emissions, and delaying bank regulation have in common? Well, all three initiatives were on Parliament's plenary agenda in Strasbourg this week, and all three made it through in record speed thanks to the urgent procedure, which allows Parliament to move fast on a Commission proposal when there are "unforeseen developments". In a space of three days, MEPs agreed to use the urgent procedure and waive their right to amend these three legislative initiatives. Because no one could foresee that a wolf would kill a Very Important Pony in Germany three years ago, that a war on European soil would start nine years ago and intensify three…

Welcome to Better Europe's weekly update on EU Affairs. ECB VP: DIGITAL EURO ESSENTIAL FOR EU AUTONOMY It’s an excellent time to push for the EU’s role as a global currency, ECB Vice President Luis de Guindos told MEPs this week. The central banker sees growing threats to Europe’s financial autonomy, so Europe should deepen capital markets, complete the banking union and unify the internal market. And, “with a more integrated approach, the euro can play a bigger role globally”. His remarks come as investors are fleeing the dollar and turning to eurozone assets, a shift that could strengthen the EU’s position as a global safe haven. De Guindos also warned that dependence on U.S. payment systems and dollar-backed stable coins risks undermining Europe’s financial sovereignty. In his view, the…

Welcome to Better Europe's weekly update on EU Affairs. GREEN ON PAPER: CAN TAX BREAKS REALLY DRIVE SUSTAINABILITY? It's already been seven months since the Draghi report highlighted the crucial intersection between financing the green transition and maintaining competitiveness – and these issues are still very much on the table. As Brussels continues its deregulatory frenzy, with Omnibuses piling up across sectors, the questions raised by the Draghi report are more relevant than ever. Next week, the Parliament’s FISC subcommittee will hold a public hearing to explore whether tax incentives for clean energy can truly support the green transition. While the Draghi report suggested that these fiscal measures could help align these sectors with sustainability goals, the hearing will discuss whether they're enough to ensure real progress, or if they're…