This Week in Manufacturing — Brussels (#12, 2026)
Commission investigates French nuclear subsidy; €6bn Italian hydrogen aid approved; new State aid Regulation (EU) 2026/562 for transport; EU ETS Market Stability Reserve reform proposed; guidance on Packaging Regulation published.
March 29, 2026 to April 04, 2026
Commission investigates French nuclear subsidy; €6bn Italian hydrogen aid approved; new State aid Regulation (EU) 2026/562 for transport; EU ETS Market Stability Reserve reform proposed; guidance on Packaging Regulation published.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission opens formal State aid assessment of French support to new nuclear programme
The European Commission has launched an in-depth investigation into France's plan to support the construction and operation of six new nuclear reactors, as notified in November 2025. The project, with estimated costs of €72.8 billion and a total capacity of 9,990 MW, would be implemented by EDF through a Special Purpose Vehicle. France's support involves a subsidised loan, a 40-year two-way contract for difference, and a risk-sharing mechanism. The Commission is examining whether the package is necessary, proportionate, and compliant with Article 107(3)(c) TFEU and the design principles in Regulation 2024/1747. Concerns include potential reinforcement of EDF's market power and market distortions. The case is registered under SA.119469.
Commission approves €6 billion Italian State aid scheme for renewable hydrogen
The Commission has approved a €6 billion Italian scheme to support production of renewable hydrogen for transport and industry. The programme aims to produce 200,000 tons of renewable hydrogen annually using both electrolysis and biogenic sources, with aid awarded via two-way contracts for difference determined through competitive bidding. Approved under Article 107(3)(c) TFEU and the 2022 CEEAG, the scheme runs until 31 December 2029 and is intended to facilitate decarbonisation of hard-to-abate sectors. The decision is listed under case SA.118992.
Commission takes preparatory steps on financial support for Ukraine and boosting drone production
On 31 March, the Commission advanced preparations for the €90 billion Ukraine Support Loan, approving a proposal to mobilise €45 billion in 2026. This includes up to €16.7 billion in budget support (split between the Ukraine Facility and Macro-Financial Assistance) and €28.3 billion for defence industrial capacity, with a focus on drone procurement. The support will be underpinned by rule of law and anti-corruption conditions. The Commission also authorised Ukraine to use procurement derogations for drones, with further schedules on missiles and ammunition expected. Regulations (EU) 2026/467 and 2026/468 underpin the package.
EU reinforces the stability and predictability of its carbon market
The Commission has proposed an amendment to the Market Stability Reserve (MSR) Decision for the EU Emissions Trading System (EU ETS). The draft would end the invalidation of allowances above 400 million in the MSR, allowing them to be retained as a buffer for future market stability. This follows President von der Leyen's announcement at the March European Council. The legislative proposal will now be considered by the Parliament and Council through the ordinary legislative procedure. A full review of the EU ETS is scheduled for July 2026.
Commission publishes guidance to support implementation of new packaging rules
On 29 March, the Commission published guidelines to facilitate uniform application of the Packaging and Packaging Waste Regulation (PPWR), which entered into force on 11 February 2025. The guidance clarifies definitions, single-use packaging restrictions, enforcement of PFAS bans, re-use targets, producer responsibility, and deposit systems. FAQs address practical issues since adoption. Several delegated and implementing acts are under preparation, including formats for registration, labelling, recycled content, and recyclability criteria.
EU Legislation (Official Journal)
Commission Regulation (EU) 2026/562 on State aid in sustainable land transport
Commission Regulation (EU) 2026/562 of 16 March 2026 sets out categories of State aid in the rail, inland waterways, and multimodal transport sectors deemed compatible with the internal market under Articles 93, 107, and 108 TFEU. The Regulation covers operating and investment aid for sustainable land transport, including block exemptions, aid intensities, eligible costs, and transparency requirements. It applies from 30 March 2026 to 31 December 2034.
Regulation (EU) 2026/715 of the European Parliament and of the Council on European Union designs (codification)
Regulation (EU) 2026/715 codifies the framework for protection of European Union designs, repealing and replacing Regulation (EC) No 6/2002. It updates provisions on design registration, rights, limitations, enforcement, and procedures, and aligns with recent directives and the EU's intellectual property strategy. The regulation enters into force on 1 July 2026.
EU Council
Informal video conference of energy ministers on Middle East energy market volatility
On 31 March, Transport, Telecommunications and Energy Council ministers held an informal video conference to discuss impacts of the Middle East conflict on energy markets. Ministers assessed market volatility, ongoing security of supply, and the need for coordinated EU and national responses to price spikes and gas storage injections ahead of winter.
Informal meeting of Competitiveness Council (Research)
The Competitiveness Council (Research) convened informally via video conference on 31 March. Topics included EU competitiveness, industry, and global trade, alongside the impact of Russia's war against Ukraine.
EP Committee Work
JURI draft opinion on European Business Wallets Regulation
On 1 April, the Committee on Legal Affairs (JURI) published a draft opinion (rapporteur: Axel Voss) on the proposal for a regulation establishing European Business Wallets. The opinion addresses legal and technical aspects of secure digital business identity and access to services across the EU.
AGRI draft opinion on tracking and performance framework for the EU budget
On 31 March, the Committee on Agriculture and Rural Development (AGRI) published a draft opinion (rapporteur: Maria Noichl) on the proposal for a regulation establishing a budget expenditure tracking and performance framework for Union programmes. The opinion proposes amendments on performance indicators, climate and biodiversity targets, impact measurement, and transparency regarding CAP subsidies and land ownership.
CONT opinion on Horizon Europe 2028–2034 Regulation
On 31 March, the Committee on Budgetary Control (CONT) adopted its opinion (rapporteur: Olivier Chastel) on the proposal for a regulation establishing Horizon Europe, the Framework Programme for Research and Innovation for 2028–2034. The opinion addresses rules for participation, dissemination, and programme evaluation.
CULT opinion on Horizon Europe 2028–2034 Regulation
On 30 March, the Committee on Culture and Education (CULT) published its opinion (rapporteur: Laurence Farreng) on the Horizon Europe 2028–2034 proposal. The opinion highlights cultural and educational dimensions of research and innovation policy.
ITRE draft report on European Business Wallets Regulation
On 1 April, the Committee on Industry, Research and Energy (ITRE) published a draft report (rapporteur: Eero Heinäluoma) on the proposal for a regulation establishing European Business Wallets, focusing on digitalisation and interoperability in industrial and business services.
What We're Reading This Week
- EDIP | Forging Europe’s Defence: European nations intensify collaboration to strengthen collective defense capabilities through the EDIP initiative.
- Listen: Why France is falling behind on cadmium?: France struggles to meet EU cadmium limits, raising concerns about public health and compliance with environmental standards.
