This Week in Hospitality & Retail — Brussels (#21, 2026)
VAT fraud debate—reverse charge extensions and digital reporting in focus; New rules for fire resistance of construction products; GMO soybean decision enters into force.
May 31, 2026 to June 06, 2026
VAT fraud debate—reverse charge extensions and digital reporting in focus; New rules for fire resistance of construction products; GMO soybean decision enters into force.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Eurobarometer highlights SMEs’ international recruitment obstacles and EU Talent Pool initiative
The European Commission published new Eurobarometer survey findings on 31 May 2026, showing that 46% of European SMEs face difficulties finding workers with the right skills, and only 14% had tried hiring staff from outside the EU in the past two years. The main obstacles cited by SMEs were administrative complexity (31%), difficulty finding suitable candidates (25%), and language barriers (24%). While most firms handle recruitment themselves, awareness of public support tools remains limited. The Commission references actions under the EU Visa Strategy (2026) and the Strategy on European Asylum and Migration Management to simplify international recruitment. The upcoming EU Talent Pool, the first EU-wide platform for matching skilled third-country workers with job vacancies, was presented as an avenue to address labour shortages and boost competitiveness. Eurobarometer figures indicate companies believe improvements could be achieved through financial support, better guidance, and practical integration assistance for international hires.
Eurobarometer survey highlights strong support for EU biodiversity policy
On 2 June 2026, the European Commission released a Special Eurobarometer surveying public attitudes toward biodiversity, coinciding with the start of EU Green Week. The survey, conducted in all 27 Member States among 26,500 respondents, shows over 90% regard biodiversity protection as essential for public health, the economy, and climate resilience. Protected areas and the Natura 2000 network recorded approval rates of 94-96% as critical tools for safeguarding species and habitats. These findings will inform the continuing stress-test of the Birds Directive and the Habitats Directive, with a public consultation open until 10 August 2026. The Eurobarometer also reflects expectations that biodiversity policies focus on restoration, integration into planning, and robust safeguards for protected sites.
Commission issues opinions on temporary internal border controls in the Schengen Area
On 1 June 2026, the Commission issued formal opinions on the continued reintroduction of internal border controls by Austria, Denmark, France, Germany, Italy, the Netherlands, Norway, Slovenia, and Sweden under Article 25a(4) of the Schengen Borders Code. Controls have been maintained due to concerns over security and migrant flows. The Commission assessed the necessity and proportionality of the measures and underlined that modern systems—such as the Entry-Exit System and ETIAS—now strengthen oversight and provide alternatives to traditional controls. Recommendations were included to phase out controls in favour of risk-based, non-systematic checks aligned with the Pact on Migration and Asylum.
EU launches largest wildfire response with pre-positioned resources in southern Europe
On 1 June 2026, the Commission announced the deployment of 777 firefighters from 14 participating countries across Cyprus, Greece, Italy, France, Spain, and Portugal, supported by 22 aircraft and 5 helicopters under the EU Civil Protection Mechanism. The operation includes real-time risk monitoring from the Emergency Response Coordination Centre and scientific support from the European Forest Fire Information System and Copernicus satellites. In addition to the operational response, a new regional firefighting station in Cyprus will be inaugurated during summer 2026, set to host aircraft and provide training for first responders. The Commission notes the deployment reflects Europe's integrated approach to wildfire prevention, preparedness, and rapid crisis management.
EU Legislation (Official Journal)
Commission Implementing Decision (EU) 2026/1185 authorises GMO soybean MON 94637 for food and feed
On 2 June 2026, Commission Implementing Decision (EU) 2026/1185 (CELEX: 32026D1185) allows the market placement of products containing, consisting of, or produced from genetically modified soybean MON 94637 under Regulation (EC) No 1829/2003. The decision grants a ten-year authorisation to Bayer CropScience LLC, effective upon notification. No cultivation is permitted within the EU, and labelling must state the product is "not for cultivation." The European Food Safety Authority had issued a positive scientific opinion in October 2025.
Commission Delegated Regulation (EU) 2026/557 sets fire resistance performance classes for construction products
Published on 3 June 2026, Regulation (EU) 2026/557 supplements Regulation (EU) 2024/3110 by defining detailed classes of performance for resistance to fire, aligning with the system under the repealed Regulation (EU) No 305/2011. The new regulation enters into force 20 days after publication, providing harmonised criteria for manufacturers to declare the fire resistance of construction materials across all Member States.
EU Council
Justice and Home Affairs Council discusses migration, Schengen, and internal security
On 4 June 2026, Justice and Home Affairs ministers reviewed the management of migration, Schengen governance, internal security, the status of displaced persons from Ukraine, and progress on drugs strategy implementation.
EP Committee Work
FISC hearing assesses the effectiveness and future of the VAT reverse charge mechanism
On 2 June 2026, the Subcommittee on Tax Matters (FISC) organised a public hearing in Brussels titled “Combating VAT Fraud: Evaluating the Impact and Future of the Reverse Charge Mechanism.” Expert witnesses, including Prof. Dr. Rita de la Feria (University of Leeds), Christine Weinzierl (Accountancy Europe), and Marta Val Jiménez (Repsol Group), discussed the application of the reverse charge mechanism under Articles 199a and 199b of Directive 2006/112/EC, currently in place until 31 December 2026. Key topics included its impact on missing trader intra-Community (MTIC) fraud, risks of fraud displacement, administrative cost to SMEs, the advantages of digital reporting requirements, and case studies such as Spain’s fuels sector. The hearing forms part of the review ahead of a possible extension beyond 2026 and is supported by research from the European Parliamentary Research Service.
IMCO and HOUS committee hearing: Safe and sustainable construction materials for EU housing stock
On 4 June 2026, the Committee on the Internal Market and Consumer Protection (IMCO) and the Special Committee on the Housing Crisis (HOUS) held a joint public hearing in Brussels, focusing on the role of construction materials in housing affordability, the application of EU funding, and future standards under the revised Construction Products Regulation. Panel participants included Commission officials, construction sector representatives, and standards bodies (CEN/CENELEC), who examined market access, digital innovation, and supply chain impacts for SMEs in the construction industry.
What We're Reading This Week
- Faith and finance: The surprising economic boost from a papal visit: A papal visit can generate significant economic benefits for local communities through increased tourism, spending, and global attention.
