This Week in Manufacturing — Brussels (#20, 2026)
Commission approves €9bn Spanish capacity mechanism; new Critical Raw Materials recovery list published; Regulation (EU) 2026/1165 extends biocidal data protection; copper tube imports from China, Mexico, Vietnam, Uzbekistan under registration.
May 24, 2026 to May 30, 2026
Commission approves €9bn Spanish capacity mechanism; new Critical Raw Materials recovery list published; Regulation (EU) 2026/1165 extends biocidal data protection; copper tube imports from China, Mexico, Vietnam, Uzbekistan under registration.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission approves €9 billion Spanish capacity mechanism for electricity supply
On 28 May 2026, the European Commission authorised a €9 billion capacity mechanism for Spain under EU State aid rules. The scheme, running for ten years from May 2026, aims to ensure sufficient electricity production, storage, or demand-side response to meet reliability standards, as established by Spain’s national resource adequacy assessment and approved by the Agency for the Cooperation of Energy Regulators (ACER). Eligible projects are selected via transparent bidding processes, with a yearly estimated budget of €900 million. The mechanism supports flexibility services and is open to projects in Spain, with future cross-border participation planned. The Commission assessed the measure under Article 107(3)(c) of the Treaty on the Functioning of the EU and the Guidelines on State aid for climate, environmental protection and energy 2022 (CEEAG), finding the mechanism necessary, appropriate, and proportionate. Commissioner Valdis Dombrovskis stated that capacity providers will be selected competitively to ensure effective competition.
Commission publishes scoreboard tracking European startup and scaleup progress
The European Commission released the inaugural European Startup and Scaleup Scoreboard (ESSS) on 28 May 2026. The scoreboard, a deliverable of the EU Startup and Scaleup Strategy ('Choose Europe to Start and Scale'), compiles performance indicators from 2020-2025 using Eurostat, the Joint Research Centre, and private market insights. Twenty Member States improved their scores since 2020, with Estonia, Sweden, Finland, the Netherlands and Denmark leading. The ESSS reveals persistent gaps in venture capital access, scaling bottlenecks, and brain drain in several Member States. The results will inform upcoming initiatives including EU Inc., the European Business Wallet, and the EU Visa Strategy. Commissioner Ekaterina Zaharieva remarked that the EU is closing the gap with global leaders and building new instruments to strengthen its innovation ecosystem.
Commission takes action to ensure complete and timely transposition of EU directives
On 27 May 2026, the European Commission initiated infringement procedures against multiple Member States over unnotified transposition of three directives. Letters of formal notice were sent regarding Directive (EU) 2024/825 on empowering consumers for the green transition (deadline: 27 March 2026; 20 Member States), Directive (EU) 2024/782 amending Directive 2005/36/EC on professional qualifications (deadline: 4 March 2026; 8 Member States), and Directive (EU) 2024/869 amending Directive 2004/37/EC and 98/24/EC on protection from lead and diisocyanates (deadline: 9 April 2026; 10 Member States). The Commission provided two months for responses, with potential escalation to reasoned opinion if compliance is not achieved.
College of Commissioners holds orientation debate on EU-China relations
The College of Commissioners met on 28 May 2026 for an orientation debate on EU-China relations. The Commission reaffirmed its focus on de-risking rather than decoupling, citing the critical importance of China as a partner and the need for continued engagement. The current trade and investment relationship is judged unsustainable, and both economic and security interests require a more robust response. Outcomes from the debate will inform preparations for the G7 and European Council meetings in June.
EU Legislation (Official Journal)
Regulation (EU) 2026/1165 extends biocidal data protection periods
Regulation (EU) 2026/1165, adopted on 20 May 2026, amends Regulation (EU) No 528/2012 to extend certain data protection periods for biocidal active substances. Protection is prolonged until 31 December 2030 for active substance/product-type combinations not yet approved by 7 June 2018. The extension addresses delays in the review programme and compensates data owners, with provisions for retrospective claims during the unprotected period from 1 January to 15 June 2026.
Commission Implementing Regulation (EU) 2026/1116 lists products and waste streams for critical raw materials recovery
Published on 27 May 2026, Commission Implementing Regulation (EU) 2026/1116, pursuant to Regulation (EU) 2024/1252, identifies products, components, and waste streams with relevant potential for critical raw materials recovery. The list serves as reference for Member States’ national circularity programmes and may be updated as technologies evolve. Extractive waste is excluded, being regulated separately.
Commission Implementing Regulation (EU) 2026/1161 registers copper tube imports for potential anti-dumping duties
On 26 May 2026, the Commission directed customs authorities to register imports of copper tubes from China, Mexico, Vietnam, and Uzbekistan under CN code ex 7411 10 90. Registration is intended to enable retroactive anti-dumping duties, pending investigation findings. The measure is valid for nine months, following a complaint by the EU Copper Tubes Defence Committee.
Council Regulation (EU) 2026/1181 suspends tariff duties for certain fertilisers
Council Regulation (EU) 2026/1181, adopted 22 May 2026, temporarily suspends Common Customs Tariff duties for specific nitrogen-based fertilisers, opening autonomous tariff quotas until 31 May 2027. Imports from Russia and Belarus are excluded. The regulation aims to support supply diversification, address market disturbances, and boost agricultural competitiveness.
EU Council
Competitiveness Council approves conclusions on tourism and debates industrial policy
On 28 May 2026, Competitiveness Council ministers adopted conclusions on tourism and held political debates on the Industrial Accelerator Act, the 28th regime, and the impact of the Middle East crisis on tourism.
Agriculture and Fisheries Council discusses fertiliser availability and trade issues
On 26 May 2026, ministers exchanged views on fertiliser availability and affordability, reviewed the Commission’s fertiliser action plan, and addressed trade-related agricultural matters.
EP Committee Work
Committee on Public Health issues opinion on European Competitiveness Fund proposal
On 27 May 2026, the Committee on Public Health (SANT), rapporteur Radan Kanev, issued an opinion on the proposal for a regulation establishing the European Competitiveness Fund (ECF), including defence research and innovation programmes. The opinion covers repeal and amendment of several existing regulations, addressing impacts on environment and health.
Committee on Employment and Social Affairs delivers opinion on European Competitiveness Fund
On 28 May 2026, the Committee on Employment and Social Affairs (EMPL), rapporteur Grégory Allione, adopted its opinion on the ECF regulation proposal, focusing on labour market and industrial competitiveness implications.
Committee on Agriculture and Rural Development drafts opinion on EU budget 2027
On 27 May 2026, the Committee on Agriculture and Rural Development (AGRI), rapporteur Wouter Beke, published a draft opinion on the general EU budget for 2027, covering all sections and implications for agricultural policy.
IMCO Committee Chair responds to Commission action against Temu
On 28 May 2026, Anna Cavazzini (Greens/EFA, DE), Chair of the Internal Market and Consumer Protection Committee (IMCO), issued a press release following the Commission’s enforcement action against Temu under the Digital Services Act. Cavazzini welcomed the progress and called attention to the need for improved enforcement and market surveillance.
What We're Reading This Week
- KTM derestricting: 'Tom,' the 'climate' whistleblower exposing highly polluting motorcycles: A whistleblower reveals that derestricted KTM motorcycles emit far more pollution than allowed, raising concerns over environmental compliance.
