This Week in Manufacturing — Brussels (#28, 2026)
AI Omnibus Regulation (EU) 2026/1744 adopted; major end-of-life vehicle law (EU) 2026/1738 enters into force; anti-dumping measures on Chinese chemicals and fasteners; expanded sanctions on Russia/Belarus.
July 19, 2026 to July 25, 2026
AI Omnibus Regulation (EU) 2026/1744 adopted; major end-of-life vehicle law (EU) 2026/1738 enters into force; anti-dumping measures on Chinese chemicals and fasteners; expanded sanctions on Russia/Belarus.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
European Commission
Commission opens public consultation on revised State aid guidelines for undertakings in difficulty
The European Commission has launched a public consultation on proposed updates to the Rescue and Restructuring State aid Guidelines, which provide the conditions for State aid to non-financial companies in difficulty. The draft revision, presented on 23 July 2026, proposes key changes including expanding eligibility to the steel sector, excluding certain innovative startups from solvency tests, and allowing for more flexible assessment tools such as hybrid financial instruments. The consultation, open until 4 September 2026, follows feedback gathered since August 2025. The Commission aims to adopt the revised Guidelines before the current framework expires on 31 December 2026. Executive Vice-President Teresa Ribera underscored the balance between market adaptation and limiting competition distortions. Meetings with Member States and stakeholders are planned during the process.
Commission launches investigation into merger of Saipem and Subsea7
On 21 July 2026, the Commission opened a phase II investigation under the EU Merger Regulation into the proposed merger of Saipem and Subsea7, which would form a new entity, 'Saipem7.' The Commission is concerned the deal could further concentrate the market for subsea umbilicals, risers, and flowlines (SURF) services, critical for offshore oil, gas, and carbon capture and storage projects. Preliminary analysis finds that Saipem and Subsea7 are two of only three major global players, with high barriers to entry and limited spare capacity among rivals. The formal notification was made on 16 June 2026. The Commission now has until 26 November 2026 to make a decision. The investigation will also assess potential risks for related services and examine vertical effects. The Commission's case reference is M.12236.
Commission issues guidance on implementation of the EU Methane Regulation for industry and Member States
On 19 July 2026, the European Commission published recommendations to aid Member States and importers in applying the EU Methane Regulation (Regulation (EU) 2024/1787), citing ongoing global LNG and oil supply disruptions. The first recommendation details evidence importers can present to national authorities to demonstrate compliance with monitoring and abatement obligations, including certification and 'trace-and-claim' approaches. The second recommendation advises Member States to suspend penalties for non-compliance for 2027–2029 to allow industry time for adjustment, without removing underlying obligations. The recommendations follow consultation with national authorities and stakeholders, and address challenges arising from the closure of the Strait of Hormuz and broader Middle East instability.
Commission sends Statements of Objections in suspected cartel in construction chemicals sector
Several manufacturers of construction chemicals in France, Germany, and Spain, plus three national trade associations, received Statements of Objections from the European Commission on 19 July 2026 for allegedly coordinating price increases for chemical additives and admixtures for cement, concrete, and mortar during 2021–2022. The investigation, opened after unannounced inspections in October 2023, focuses on potential breaches of Article 101 TFEU (Regulation 1/2003). The main concern is suspected coordination on future price rises in response to cost increases driven by global crises. If confirmed, the conduct could result in fines of up to 10% of annual worldwide turnover. The parties can now respond formally; the case is registered as AT.40861.
Commission clarifies implementation of EU Methane Regulation rules amid supply fears
On 19 July 2026, the Commission published further recommendations for application of the EU Methane Regulation in response to volatile global energy markets. The recommendations offer guidance on compliance solutions for oil, gas, and coal supply chain operators—such as non-physical tracking using certification and 'trace and claim' systems—and suggest that penalties for non-compliance be temporarily suspended for three years, pending industry adaptation. These measures seek to prevent regulatory uncertainty from disrupting energy imports in the current tight supply context. The Commission emphasises that all compliance obligations remain in place. The Regulation is the first EU law to cover methane emissions from both domestic and imported oil, gas, and coal.
Commission welcomes adoption of 21st sanctions package against Russia
On 22 July 2026, the Commission welcomed the 21st EU sanctions package against Russia. The package expands restrictions on energy, finance, trade, and critical infrastructure, and includes bans on additional Russian ports, refineries, and LNG tanker resales. Financial and cryptorestrictions are widened, affecting over 100 banks and many third-country entities. The package also introduces export bans on critical materials and targets 218 new individuals and entities, bringing overall listings close to 3,000. Parallel measures mirror Belarusian sanctions. The Council retains responsibility for entry into force of visa and specific import bans. The Commission will report on implementation of certain measures, including legal protection for EU operators.
EU Legislation (Official Journal)
Regulation (EU) 2026/1744 (Digital Omnibus on AI) streamlines sectoral compliance for manufacturing industries
Regulation (EU) 2026/1744 (OJ L 2026/1744, 24 July 2026) amends Regulations (EU) 2024/1689 (Artificial Intelligence Act), (EU) 2018/1139 (Civil Aviation), and (EU) 2023/1230 (Machinery Regulation) to facilitate implementation of harmonised AI legislation. The law clarifies definitions for safety components in high-risk systems, adjusts compliance deadlines, and enables sectoral acts to take precedence where they provide equivalent protection. Special attention is given to streamlining conformity assessment for industrial machinery and aviation, extending micro- and SME-friendly provisions, and introducing a new code system for notified bodies. Transitional arrangements and guidance are planned for industry adaptation by 2028.
Regulation (EU) 2026/1738 establishes new circular economy obligations for automotive sector and end-of-life vehicles
Regulation (EU) 2026/1738 (OJ L 2026/1738, 24 July 2026) introduces comprehensive circularity requirements for vehicle design and management of end-of-life vehicles, repealing Directives 2000/53/EC and 2005/64/EC. The law mandates enhanced recyclability, recoverability, and reusability rates, requires integration of recycled content in new vehicles, and sets stricter rules for manufacturer responsibility throughout the value chain. The regulation also includes new tracking and reporting rules, extended producer responsibility obligations, restrictions on hazardous substances, and export requirements for used vehicles. These measures apply to all major vehicle categories and take effect in phases from 2029 onward.
Commission Implementing Regulation (EU) 2026/1785 adjusts antidumping duties on iron or steel fasteners from China
Commission Implementing Regulation (EU) 2026/1785 (OJ L 2026/1785, 24 July 2026) amends Regulation (EU) 2022/191 by granting Zhejiang Yitai Mechanical Technology Co., Ltd new exporting producer treatment for certain iron or steel fasteners from China. The company now receives the 39.6% duty applicable to cooperating firms not included in the sample, after demonstrating it did not export during the original investigation period, is not related to sanctioned producers, and has exported post-investigation. The amendment applies upon publication.
Commission Implementing Regulation (EU) 2026/1747 introduces registration of Chinese copolyester imports for possible antidumping measures
On 23 July 2026, Implementing Regulation (EU) 2026/1747 (OJ L 2026/1747) makes imports of certain aliphatic-aromatic copolyesters—specifically PBAT and PBSeT—from China subject to customs registration. This measure follows the initiation of an antidumping investigation based on a complaint by BASF. Registration will enable duties to be applied retroactively if investigation findings substantiate injury and dumping.
Commission Implementing Regulation (EU) 2026/1788 clarifies scope of anti-dumping duties on iron or steel fasteners
Implementing Regulation (EU) 2026/1788 (OJ L 2026/1788, 24 July 2026) removes two TARIC codes (7318 22 00 31 and 7318 22 00 95) related to iron or steel fasteners from Malaysia from the scope of anti-dumping duties imposed under Regulation (EU) 2022/191. This correction applies retroactively to 18 February 2022, instructing customs to repay any anti-dumping duties collected under these codes from that date onward.
Commission opens circumvention inquiry into hardwood plywood imports from China
Commission Implementing Regulation (EU) 2026/1840 (OJ L 2026/1840, 24 July 2026) opens an investigation into possible circumvention of antidumping measures on hardwood plywood from China, targeting imports of slightly modified products (with certain modifications to outer plies). The regulation subjects such imports to customs registration for up to nine months pending the outcome. The inquiry was initiated following a request from the Greenwood Consortium.
Commission Implementing Regulation (EU) 2026/1782 amends rules for the European Chemicals Agency Board of Appeal
Implementing Regulation (EU) 2026/1782 (OJ L 2026/1782, 24 July 2026) updates Regulation (EC) No 771/2008 to reflect the transition of the European Chemicals Agency Board of Appeal to a new operating model. The amendments modernise rules of procedure, clarify the process for designating alternates, and establish greater administrative independence for the Board, including revised rules for confidential information and correction of decisions.
Commission Implementing Regulation (EU) 2026/1787 introduces CO2 emissions data collection for heavy-duty vehicles
Implementing Regulation (EU) 2026/1787 (OJ L 2026/1787, 24 July 2026) sets the procedure for collection and reporting of real-world CO2 emission data from new heavy-duty vehicles, per Regulation (EU) 2019/1242. Member States and designated roadworthiness testing bodies are required to begin collecting such data from 1 July 2028, with first reporting to the Commission due by 30 November 2029. Privacy and data retention rules are specified in line with GDPR.
EU Council
Environment ministers hold informal meeting under Environment Council
Environment ministers met informally on 23 July 2026 under the auspices of the Environment Council. No public summary was made available.
