This Week in Manufacturing — Brussels (#24, 2026)
Steel overcapacity regulation adopted; major overhaul of EU investment screening; new rules on tariff preferences and anti-dumping; expanded worker protection for chemicals.
June 21, 2026 to June 27, 2026
Steel overcapacity regulation adopted; major overhaul of EU investment screening; new rules on tariff preferences and anti-dumping; expanded worker protection for chemicals.
📋 In This Week's Newsletter
• 📅 This Week's Calendar in Brussels
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
This Week's Calendar in Brussels
- Committee on Industry, Research and Energy (ITRE): On June 29, the European Parliament's Committee on Industry, Research and Energy (ITRE) is scheduled to meet. Agenda includes: Chair’s announcements; Establishing a framework of measures for strengthening Union’s biotechnology and biomanufacturing sectors particularly in the area of health and amending Regulations (EC) No 178/2002, (EC) No 1394/2007, (EU) No 536/2014, (EU) 2019/6, (EU) 2024/795 and (EU) 2024/1938 (European Biotech Act).
European Commission
EU Adopts Regulation to Address Global Steel Overcapacity
Regulation (EU) 2026/1384 was adopted on 17 June 2026, establishing a new framework to counteract the negative trade effects of global overcapacity on the Union steel market. The measure, published in the Official Journal L on 24 June 2026, opens tariff quotas and raises the out-of-quota duty to 50% for various steel imports. Notable features include strategic product-specific quotas, a new 'melt and pour' origin requirement, and the strengthening of the safeguard mechanism. Existing annual quotas are set at over 18.3 million tonnes, with flexibility to adapt depending on market conditions. The regulation enters into force on 1 July 2026. The act amends Regulation (EU) 2020/2170 regarding the treatment of goods originating in the United Kingdom in Northern Ireland.
Commission Approves €76 Million German State Aid for Semiconductor Testing Facility
On 22 June 2026, the European Commission authorised €76 million in German State aid to QuantumDiamonds GmbH for a first-of-a-kind semiconductor testing equipment facility in Munich. The measure was approved under Article 107(3)(c) TFEU and aligns with the European Chips Act objectives. The project involves novel quantum sensor-based inspection systems for semiconductors, with commitments to support supply chain resilience and research collaboration. The aid is conditioned on capacity access for SMEs and start-ups, with a mechanism for monitoring and compliance. QuantumDiamonds also seeks recognition as an Integrated Production Facility under the Chips Act Regulation.
European Commission Simplifies Tax, Energy, and Tyre Labelling Rules
On 23 June 2026, the Commission announced a tax simplification package including the Taxation Omnibus and the recast of the Directive on Administrative Cooperation (DAC), expected to save businesses €8 billion annually. Simultaneously, proposed simplifications to energy and tyre labelling will reduce administrative burdens in product compliance, including digitalisation options and clarified responsibilities for non-EU suppliers. The total savings from these measures and previous simplification proposals exceed €18 billion. The Commission press conference was delivered by Commissioners Dombrovskis and Hoekstra.
ec.europa.eu | ec.europa.eu | ec.europa.eu
Commission Approves State Aid for Romania's Investment and Development Bank
On 25 June 2026, the Commission approved a €1 billion State aid package for Romania's Banca de Investiții și Dezvoltare S.A. (BID), under Article 107(3)(c) TFEU. The approval extends the State guarantee to 2032 and broadens BID’s mandate to cover strategic sectors such as defence, high-tech manufacturing, and cybersecurity. The package is partly funded by the Recovery and Resilience Facility (RRF) and includes safeguards to avoid negative effects on competition and trade.
EU Legislation (Official Journal)
Regulation (EU) 2026/1386: Overhaul of EU Investment Screening Framework
Regulation (EU) 2026/1386, adopted 17 June 2026, revises the FDI screening framework and repeals Regulation (EU) 2019/452. The new rules harmonise national mechanisms, extend coverage to intra-Union investments controlled by third country investors, and strengthen procedures for screening, reporting, and information exchange among Member States and the Commission. The regulation enters into force on 17 January 2028, with preparatory provisions effective from 16 July 2026.
Regulation (EU) 2026/1395: New EU Generalised Scheme of Preferences (GSP) Adopted
Regulation (EU) 2026/1395, published on 22 June 2026, updates the EU's GSP, applying from 1 January 2027 through 31 December 2036. The scheme refines eligibility criteria, strengthens monitoring, and introduces product graduation and new withdrawal mechanisms. It incorporates additional international conventions for GSP+ eligibility and reinforces conditionalities on human rights and good governance.
Definitive Anti-Dumping Duties Imposed on 1,4-Butanediol from China, Saudi Arabia, and the USA
Commission Implementing Regulation (EU) 2026/1373, adopted 22 June 2026, imposes definitive anti-dumping duties on imports of 1,4-Butanediol from the People’s Republic of China, the Kingdom of Saudi Arabia, and the United States. Duties range from 52.4% to 142.5% depending on the country and producer. The measure follows a detailed injury and causation analysis and also includes provisions for new exporting producer reviews.
Sixth Revision of Carcinogens, Mutagens, and Reprotoxic Substances Directive (CMRD) Agreed
A revised directive introduces new exposure limit values for cobalt compounds, polycyclic aromatic hydrocarbons, 1,4-dioxane, and isoprene, as well as specific rules for welding fumes. The revision also enhances personal protective equipment requirements and calls for further assessment on occupational exposure to hazardous substances. Formal adoption by Parliament and Council is pending.
EU Council
Council Agrees Position on European Grids Package
On 26 June 2026, the Transport, Telecommunications and Energy Council (Energy configuration) agreed on a negotiating mandate for the European grids package. Ministers discussed post-2030 decarbonisation and assessed the energy sector impact arising from the Middle East crisis.
Environment Council Progresses on CO2 Emissions Standards and REACH
At its 25 June 2026 meeting, environment ministers exchanged views on amendments to CO2 emission standards for cars and vans, nature as an economic asset, and strategic directions for water resilience and the ongoing revision of the REACH regulation.
EP Committee Work
ENVI Hearing Examines Policy, Industry Challenges for EU Circular Economy Act
On 23 June 2026, the Committee on the Environment, Climate and Food Safety (ENVI) conducted a public hearing: 'Less waste, more value: Towards an EU Circular Economy Act'. Experts and industry representatives addressed gaps in the legislative framework and practical challenges in waste management, product design, and implementation. Panel discussions included business case studies from Ecoembes and Novamont.
ITRE Public Hearing Addresses Digital Networks Act and EU Connectivity Policy
On 24 June 2026, the Committee on Industry, Research and Energy (ITRE) held a public hearing on the Digital Networks Act. Distinguished speakers from BEREC, CERRE, academia, and industry examined harmonisation, simplification, and the impact of regulatory proposals on the digital infrastructure value chain, competition, and European technological capabilities.
