This Week in the Single Market — Brussels (#20, 2026)
Fertiliser tariff suspension under Regulation (EU) 2026/1181; Spanish €9bn electricity capacity aid approved; Commission opens JD.com foreign subsidies probe; Single Market reforms advance; E-commerce scrutiny rises.
May 24, 2026 to May 30, 2026
Fertiliser tariff suspension under Regulation (EU) 2026/1181; Spanish €9bn electricity capacity aid approved; Commission opens JD.com foreign subsidies probe; Single Market reforms advance; E-commerce scrutiny rises.
📋 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
The European Commission approved a €9 billion capacity mechanism for Spain, aiming to ensure sufficient capacity to produce, store or flexibly consume electricity and to meet expected demand. The mechanism, running for 10 years from May 2026, remunerates all capacity needed to meet Spain’s reliability standard, as established by Spain's national resource adequacy assessment and approved by the Agency for the Cooperation of Energy Regulators (ACER). Projects eligible include generation, demand-side response, and storage, selected via transparent bidding processes. The Commission assessed the scheme under Article 107(3)(c) TFEU and the Guidelines on State aid for climate, environmental protection and energy 2022 (CEEAG), finding it necessary, appropriate, and proportionate. The measure aligns with EU Electricity Regulation and Clean Industrial State Aid Framework (CISAF). Non-confidential details will be published under case number SA.112483.
Commission opens in-depth foreign subsidies probe into JD.com’s proposed acquisition of CECONOMY
The Commission launched an in-depth investigation under the Foreign Subsidies Regulation (FSR) into JD.com’s acquisition of CECONOMY AG, notified on 17 April 2026. Preliminary concerns relate to potential foreign subsidies received by JD.com, including preferential financing and tax incentives from entities possibly attributable to the People’s Republic of China, which may distort the EU internal market. The Commission will assess whether these subsidies affected the acquisition process and could improve the competitive position of the merged entity in the EU market. The decision is expected by 2 October 2026. More information will be available under case number FS.100253.
Commission approves €500 million Spanish State aid for agricultural companies facing increased fertiliser prices
A €500 million Spanish State aid scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF), adopted on 29 April 2026. The scheme targets agricultural companies facing higher fertiliser prices due to the Middle East crisis and runs until 31 December 2026. Direct grants will be provided based on land type and up to 70% of additional fertiliser costs. The scheme was assessed under Article 107(3)(c) TFEU and METSAF Sections 1 and 2.1, found to be necessary and proportionate. Details will be released under case number SA.122723.
Commission approves €15 million French State aid for agricultural and aquaculture companies facing increased fuel prices
The Commission approved a €15 million French State aid scheme under METSAF, supporting agricultural and aquaculture companies affected by increased non-road diesel prices from the Middle East crisis. The scheme provides direct grants based on fuel purchased, covering up to 70% of added costs, and operates until 31 December 2026. The scheme was reviewed under Article 107(3)(c) TFEU and METSAF. Non-confidential versions will be available under case number SA.123240.
Commission unconditionally approves Arla’s acquisition of DMK and DOC
Arla Foods amba’s acquisition of Deutsches Milchkontor eG and Drents Overijsselse Coöperatie Kaas U.A. was unconditionally cleared under the EU Merger Regulation. The Commission found no significant reduction in competition in raw milk procurement or supply markets for dairy products and whey-based ingredients in Denmark, Finland, Germany, Netherlands, and Sweden. The transaction, notified on 17 April 2026, was reviewed under Article 1 of the EU Merger Regulation. Arla’s cooperative structure and competitive market dynamics were key factors. Details are available under case number M.12115.
Read-out of College orientation debate on EU-China relations
Commissioners reviewed EU-China relations, focusing on opportunities and challenges. The Commission’s strategy remains de-risking, not decoupling. Economic and security interests require robust and coherent responses, with further discussions planned for G7 and European Council in June.
Commission takes action to ensure timely transposition of EU directives
The Commission sent letters of formal notice to Member States for failing to notify measures transposing three directives: (EU) 2024/825 on empowering consumers for the green transition, (EU) 2024/782 updating training for nurses, dental practitioners, and pharmacists, and (EU) 2024/869 on worker protection from lead and diisocyanates. Deadlines for transposition had expired and Member States have two months to respond.
New scoreboard shows success of European startup policies
The European Startup and Scaleup Scoreboard (ESSS) published by the Commission highlights progress in startup ecosystems since 2020. Twenty Member States improved performance; Estonia, Sweden, Finland, Netherlands, and Denmark rank high in digital infrastructure, talent, and funding. Policy gaps persist in countries such as Greece, Latvia, Bulgaria, Slovakia, and Romania. The Scoreboard informs strategic actions and upcoming legislation including the European Innovation Act.
Commission proposes new authorisation for mobile satellite services for EU's resilience and competitiveness
The Commission adopted a proposal for selection of mobile satellite service (MSS) providers for the 2 GHz band after current licences expire in May 2027. The proposal establishes EU-level selection and divides spectrum: one third for governmental use (critical communications, security, military), two thirds for commercial use (Direct-to-Device, IoT). Integration with IRIS² infrastructure is planned. The regulation aligns with the Digital Networks Act and responds to Radio Spectrum Policy Group opinions.
EU Legislation (Official Journal)
Council Regulation (EU) 2026/1181 suspends Common Customs Tariff duties on fertilisers
Council Regulation (EU) 2026/1181 of 22 May 2026 suspends Common Customs Tariff duties for urea, ammonia, certain nitrogen-based fertilisers, and mixtures containing nitrogen, opening autonomous tariff quotas until 31 May 2027. Imports from the Russian Federation and Belarus are excluded. The suspension is limited to Union most-favoured-nation volumes for 2024, with a 20% top-up. The Commission will monitor market conditions and may extend or modify the suspension.
Commission Implementing Regulation (EU) 2026/1124 suspends inward processing arrangements for raw cane sugar
Implementing Regulation (EU) 2026/1124 of 26 May 2026 suspends inward processing arrangements for raw cane sugar (CN codes 1701 13 90 and 1701 14 90) used to obtain white sugar, effective for 12 months until 27 May 2027. The measure responds to increased imports under inward processing, market disturbances, and oversupply. A 30-day transitional period applies for existing authorisations.
Commission Implementing Regulation (EU) 2026/1116 lists products and waste streams for critical raw materials recovery
Implementing Regulation (EU) 2026/1116 of 26 May 2026 defines products, components, and waste streams considered to have relevant critical raw materials recovery potential under Regulation (EU) 2024/1252. The list guides Member States’ national circularity programmes and may be updated for technological developments.
EU Council
Competitiveness Council adopts conclusions on tourism and debates industrial accelerator
Competitiveness Council (Internal Market and Industry) ministers approved 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.
EP Committee Work
IMCO Committee Chair reacts to Commission investigation and fine against Temu
Anna Cavazzini (Greens/EFA, DE), Chair of the Committee on Internal Market and Consumer Protection, commented on the Commission’s investigation and fine against Temu for breaches of EU law. Cavazzini noted that the Digital Services Act is delivering consumer protection, while also stating that implementation lags behind e-commerce sector developments. She referenced the need for further tools such as the Digital Fairness Act and customs reform to enhance scrutiny of mega-platforms.
Committee opinions on the European Competitiveness Fund proposal
The Committee on Public Health (rapporteur: Radan Kanev) and the Committee on Employment and Social Affairs (rapporteur: Grégory Allione) issued opinions on the proposal for a regulation establishing the European Competitiveness Fund (ECF), which includes a specific programme for defence research and innovation activities. The proposal repeals Regulations (EU) 2021/522, 2021/694, 2021/697, 2021/783, and amends Regulations (EU) 2021/696, 2023/588, and [EDIP].
www.europarl.europa.eu | www.europarl.europa.eu
What We're Reading This Week
- Strait of Hormuz turmoil 'serious' risk for Europe, top UAE adviser warns: A senior UAE official cautions that escalating tensions in the Strait of Hormuz could threaten Europe's energy security.
- Video. EU fines Temu €200m for dangerous baby toys and faulty chargers: Temu faces a €200 million EU penalty after selling unsafe baby toys and defective electronic chargers across European markets.
- Video. EU cuts GDP forecast as Strait of Hormuz crisis pushes inflation up: Escalating tensions in the Strait of Hormuz drive inflation higher, prompting the EU to lower its economic growth outlook.
