by Ross Elwood
BRUXELLES (Public Policy Europe) – It’s been a week more dominated by outside events, with the political crisis in the UK and Trump’s China visit both taking centre stage. Back in the EU, life went on with an informal energy council discussion on gas (see below), COREPER planning for the June summit, and new compromise texts on energy permits and grid funding.
Read more below for an analysis of the upcoming parliamentary plenary session next week.
The Facts
The following facts are compiled from hundreds of updates on the Public Policy Europe Newswires this week. Find out more about the newswire here.
Energy Permits: The Cypriot presidency of the EU Council has circulated a new compromise draft on the revision of the renewables permitting directive, known as the grid package, according to documents seen by Public Policy. The draft makes it easier to approve renewable energy projects by allowing exceptions to some environmental rules, giving more time for permit approvals, and expanding cases where silence from authorities counts as automatic approval. Public Policy subscribers can read the full breakdown here.
C02 emissions: The MEP leading the file has proposed amendments to EU rules on car and van emissions, modifying reduction targets for 2030 and 2035, redefining what counts as a zero-emission vehicle, extending the credits manufacturers can use to meet their targets, and adjusting the timeframes for calculating compliance. Public Policy subscribers can read the full breakdown here.
Emission Trading System: On Monday The European Commission proposed the long-awaited update of the benchmarks of the European Union Emissions Trading System (ETS) for the period 2026-2030. Heavy industry (steel, aluminium) gets stricter benchmarks, meaning they’ll have to buy more permits, while energy producers (heating, fuel) receive far more free permits, with some benchmarks tripling. This rewards energy producers while putting more financial pressure on heavy industry. The updated benchmarks are out for public consultation, then approval by EU countries to be finalised by end of June. By July 2026, the whole ETS system gets a broader review, which will also introduce tailored benchmarks for specific sectors.
OpenAI/Mythos: On Monday the Commission noted that OpenAI had proposed to give it access to its new ChatGtp model so that it can address security issues. When asked about Mythos the Commission said it still did not have access .
Pensions: Public Policy understands that the EU’s pension reforms (PEPP, a personal pension, and IORP II, for workplace pensions) are being voted on in the European Parliament’s economics committee, but on different timelines. IORP II votes in October, following amendments in June and negotiation rounds in July, September and October. PEPP votes in November, with amendments due in mid-June and final changes by 20 July. This makes it difficult to reach a final deal with EU countries by end of 2026, which was the agreed deadline. The Council wants to stick to the timeline, but Parliament’s schedule is putting that at risk.
Energy Council: On Wednesday an informal energy council was held, the council discussed the work of the Energy union task force, energy storage for decarbonisation and most interestingly “a strategic discussion on the role of natural gas in the EU’s energy mix beyond 2030” with Osama Mobarez, Secretary General of the East Mediterranean Gas Forum, also discussing the potential of the Mediterranean region in ensuring reliable flows of natural gas to the EU.
Minors Online: Speaking in Copenhagen, von der Leyen noted that the EU may set a minimum age for social media (modelled on Australia’s 16-year threshold) following requests from ten member states, with a proposal possible by summer. Age verification would use an open-source app integrated into national digital wallets, launching first in Denmark. A separate Digital Fairness Act, due by year-end, will target manipulative practices like addictive features and subscription traps.
Energy Grids: The Networks Package which covers EU rules to improve electricity grids so they can handle more renewable energy is expected to be finalised at the formal Council in June, according to the Cypriot presidency.
Housing: The European Commission has launched a call for members to join its new European Housing Alliance, which will bring together national, regional and local authorities alongside housing sector actors to share knowledge and coordinate efforts to tackle the EU’s housing affordability crisis.
EU Leaders Summit June: COREPER on Wednesday discussed the agenda for the upcoming European Council on 18 and 19 June. Leaders will discuss Ukraine’s accession process, competitiveness in line with the joint legislative timeline agreed in March, energy prices, and unfair trading practices from China. They will also take up the Multiannual Financial Framework (MFF 2028-2034), with a negotiating package from the Cypriot presidency expected at the beginning of June serving as the basis for discussions. On foreign policy, leaders will assess the latest developments in the Middle East. With the NATO summit two weeks away, they will also review progress on European defence. Finally, the agenda includes the fight against illicit drugs, with leaders expected to welcome the adoption of the new EU strategic framework on drugs.
The Analysis – Plenary Preview
Next week is a plenary week in the EU bubble, with a lot of content and policy movement being generated. On Tuesday morning the debate will be on cybersecurity and preparedness for risks posed by advanced artificial intelligence systems, specifically Anthropic’s Mythos model, which has industry and cybersecurity experts worried and to which the EU does not have access, whereas the US and a number of US companies do. Parliament will push for using legislative rules to force access to models such as Mythos, while the Council and Commission will focus on a more balanced, cooperative approach. It will be interesting to hear all institutions’ positions on this new and developing issue.
In the afternoon, the European Commission will present its new plan on fertilisers to the plenary. This is tied into the current energy crisis, as the situation in the Strait of Hormuz is also causing a fertiliser crisis with effects on EU food security and food prices. The plan is expected to outline the use of carbon market revenues to subsidise farmers, the creation of green ammonia supply corridors with Africa and the Middle East, strategic stockpiling, and stronger market monitoring. This is tied into the wider political wrangling over EU environmental and emissions policy, which a number of member states are looking to water down in the wake of the energy crisis.
On Wednesday afternoon there will be a debate on the revision of the European Emissions Trading System. This comes in the wake of Parliament rapporteur Massimiliano Salini (EPP) presenting his draft report on CO2 standards for vehicles earlier this week, which includes some quite controversial elements. This is a major issue in Parliament, as the biggest ideological divide within the ruling voting coalition (the EPP, S&D and Renew) is on environmental legislation, with the S&D and sometimes Renew viewing the competitiveness drive as deregulation of environmental rules in disguise. The positioning of the groups will be very interesting during this debate as it will reflect the wider EU environmental legislative picture.
As an interesting side note, Angela Merkel, the former German Chancellor, will be in town, as on Tuesday morning she will receive the European Parliament’s award of merit. (Public Policy Europe)
