This Week in the Single Market — Brussels (#12, 2026)
EU adopts new insolvency Directive; EU design rights codified; major State aid regulation for transport; Commission acts on carbon market, tobacco, packaging waste; Parliament committees advance digital business wallet.
March 29, 2026 to April 04, 2026
EU adopts new insolvency Directive; EU design rights codified; major State aid regulation for transport; Commission acts on carbon market, tobacco, packaging waste; Parliament committees advance digital business wallet.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission proposes changes to EU carbon market stability mechanism
On 31 March 2026, the European Commission presented a proposal to amend the Market Stability Reserve (MSR) Decision, part of the EU Emissions Trading System (EU ETS). The proposed amendment seeks to reinforce the MSR by ending the existing mechanism that invalidates allowances above the 400 million threshold. Under this change, such allowances would remain as a buffer to support market stability. The MSR, operational since 2019, adjusts the supply of allowances to address market imbalances. Following significant reductions in emissions and increased energy independence, the Commission aims to modernise and make the EU ETS more agile in response to heightened energy price volatility and geopolitical risks. The proposal will now proceed through the ordinary legislative procedure in the European Parliament and the Council. A comprehensive review of the EU ETS, including the MSR, is scheduled for July 2026.
Commission opens State aid probe into France’s new nuclear programme
On 30 March 2026, the European Commission launched a formal in-depth investigation into France’s planned support for the construction and operation of six new nuclear reactors with a combined capacity of 9,990 MW. The support measures include a subsidised loan, a two-way contract for difference for 40 years, and a risk-sharing mechanism. The Commission is examining the appropriateness and proportionality of the aid, its potential impact on competition, and compliance with Article 19d(2) of the Electricity Regulation and Regulation 2024/1747. The beneficiary is Électricité de France S.A. (EDF). The Commission will assess whether the measures are limited to what is necessary and whether sufficient safeguards exist to prevent market distortions. The investigation follows notification by France in November 2025.
Commission publishes evaluation of EU tobacco control rules
On 1 April 2026, the European Commission released its evaluation of the current EU tobacco control framework, including the Tobacco Products Directive and Tobacco Advertising Directive. The assessment found a decrease in smoking rates and tobacco-related deaths since 2012, with harmonised internal market rules contributing to this trend. However, the report identifies challenges from novel tobacco and nicotine products, especially among youth, and increased digital promotion circumventing advertising bans. The evaluation concludes that while current measures have been effective, legislative adaptation is needed to address emerging products and persistent risks. The Commission will conduct an impact assessment and consider revising the legislative framework in line with the Safe Hearts Plan.
Commission issues guidance for new packaging rules under PPWR
On 29 March 2026, the European Commission published guidelines to assist Member States and businesses in implementing the Packaging and Packaging Waste Regulation (PPWR), which entered into force on 11 February 2025. The guidance clarifies definitions, enforcement of PFAS restrictions, re-use targets, and deposit and return systems, aiming to enhance regulatory uniformity across the Single Market. The document is accompanied by FAQs, with ongoing updates planned. The Commission is also preparing delegated and implementing acts on reporting formats, waste sorting labelling, recycled content, and recyclability criteria. The PPWR sets mandatory recyclability by 2030 and minimum recycled content in plastics, targeting a reduction in packaging waste and environmental impacts.
Commission approves €6 billion Italian State aid scheme for renewable hydrogen
On 29 March 2026, the European Commission approved a €6 billion Italian State aid scheme to support the production of renewable hydrogen for transport and industry, in line with Article 107(3)(c) TFEU and the 2022 CEEAG. The measure supports up to 200,000 tons of renewable hydrogen per year via two-way contracts for difference, with a strike price set by competitive bidding. The scheme is set to run until the end of 2029 and aims to advance the objectives of the EU Hydrogen Strategy and the Clean Industrial Deal. The decision follows notification under case SA.118992.
EU Legislation (Official Journal)
Directive (EU) 2026/799: Harmonising certain aspects of insolvency law
Directive (EU) 2026/799, adopted on 30 March 2026 and published in OJ L 2026/799 on 1 April 2026 (CELEX: 32026L0799), establishes minimum harmonisation rules regarding avoidance actions, tracing of assets, pre-pack proceedings, directors’ duties, creditors’ committees, and key information factsheets in insolvency proceedings. It aims to improve internal market integration and cross-border legal certainty. Member States must implement the Directive by January 2029.
Regulation (EU) 2026/715 on European Union designs (codification)
Regulation (EU) 2026/715, adopted on 11 March 2026 and published in OJ L 2026/715 on 30 March 2026 (CELEX: 32026R0715), codifies the EU framework for design protection, including registered and unregistered rights, scope, validity, transfer, and enforcement. The regulation updates and consolidates prior legislation, aligning with Directive 98/71/EC and Regulation (EU) 2017/1001. The new codified text enters into force on 1 July 2026.
Commission Regulation (EU) 2026/562: State aid in rail, inland waterways and multimodal transport
Commission Regulation (EU) 2026/562, adopted on 16 March 2026 and published in OJ L 2026/562 on 30 March 2026 (CELEX: 32026R0562), exempts certain categories of State aid in sustainable land transport from notification requirements under Articles 93, 107, and 108 TFEU. The regulation covers operating and investment aid for rail, inland waterway, and multimodal transport, with detailed compatibility and transparency conditions. The rules apply from 30 March 2026 until 31 December 2034.
Commission Decision (EU) 2026/724: Modification of Association Agreement with Moldova
Commission Decision (EU) 2026/724 of 24 March 2026, published in OJ L 2026/724 on 1 April 2026 (CELEX: 32026D0724), approves amendments to Annexes XXX-A, XXX-C, and XXX-D of the EU–Moldova Association Agreement, including updates to geographical indications and references to applicable legislation. The changes were agreed by the Geographical Indications Sub-Committee on 12 November 2025.
Commission Implementing Regulation (EU) 2026/756: PGI registration for ‘Sapin de Noël du Morvan’
Commission Implementing Regulation (EU) 2026/756 of 24 March 2026, published in OJ L 2026/756 on 31 March 2026 (CELEX: 32026R0756), registers ‘Sapin de Noël du Morvan’ (PGI) in the Union register of geographical indications for agricultural products, under Regulation (EU) 2024/1143. No opposition was received following publication.
Commission Implementing Regulation (EU) 2026/772: Poultry trade lists updated for UK and USA
Commission Implementing Regulation (EU) 2026/772 of 26 March 2026, published in OJ L 2026/772 on 30 March 2026 (CELEX: 32026R0772), amends Annexes V and XIV to Implementing Regulation (EU) 2021/404 regarding authorised zones for entry of poultry and germinal products from the UK and US. The changes reflect recent outbreaks and lifting of restrictions following disease control measures.
EU Council
Competitiveness ministers convene informal Research Council
On 31 March 2026, an informal meeting of competitiveness ministers (Research configuration) was held by video conference under the Council presidency. Discussions focused on the EU's role in global trade, industrial competitiveness, research, and the impact of Russia’s war against Ukraine. This format allowed ministers to exchange views on boosting EU competitiveness and related policy initiatives.
EP Committee Work
JURI committee issues draft opinion on European Business Wallets Regulation
On 1 April 2026, the Committee on Legal Affairs (JURI) published its draft opinion (rapporteur: Axel Voss) regarding the proposal for a regulation establishing European Business Wallets (COM(2025)0838, 2025/0358(COD)). The opinion addresses amendments on digital identification, interoperability, SME access, and procedural safeguards. It proposes clarifications on the assignment of unique company identifiers, the relationship with the Digital Product Passport, and the timeline for technical implementation acts. The draft opinion will inform the lead committee's further legislative work.
ITRE committee drafts report on European Business Wallets proposal
On 1 April 2026, the Committee on Industry, Research and Energy (ITRE) published a draft report (rapporteur: Eero Heinäluoma) on the Commission proposal for a regulation establishing European Business Wallets. The draft report addresses the technical, legal, and market aspects of creating a harmonised digital tool for business identification and secure data exchange in the single market. The report will be considered in committee before advancing to plenary.
What We're Reading This Week
- [tax_ec_func] Tax revenue by economic function: Governments analyze tax revenue distribution across economic functions to inform fiscal policy and budgetary decisions.
- European Union customs authority: EU unveils new centralized customs authority aiming to streamline cross-border trade and strengthen enforcement across member states.
