This Week in the Single Market — Brussels (#24, 2026)
Regulation on screening of foreign investments (2026/1386) enters into force; Digital Single Market advances with Digital Networks Act hearing; Parliament committees review VAT and military mobility.
June 21, 2026 to June 27, 2026
Regulation on screening of foreign investments (2026/1386) enters into force; Digital Single Market advances with Digital Networks Act hearing; Parliament committees review VAT and military mobility.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
European Commission
Commission advances VAT fraud fight via interinstitutional cooperation
At a joint Budgetary Control (CONT) and Tax Matters (FISC) committee session on 25 June 2026, the Commission discussed coordinated action to better prevent, detect and prosecute VAT fraud in the EU. European Chief Prosecutor Laura Kövesi, OLAF Director General Petr Klement, and Eurofisc Chair Marina Marinelić highlighted the need for stronger administrative and judicial cooperation, greater use of digital tools, and improved EU–national exchange of information. Kövesi stressed VAT fraud as the most lucrative area for organized crime and a central threat to the EU budget. The Commission was urged to make VAT fraud a priority as part of the EU’s Single Market integrity efforts.
EU Legislation (Official Journal)
Regulation (EU) 2026/1386 on screening of foreign investments
Regulation (EU) 2026/1386, adopted on 17 June 2026, establishes a harmonized Union framework for Member States to screen foreign investments on grounds of security or public order, repealing Regulation (EU) 2019/452. The new rules, published 26 June 2026 (OJ L 2026/1386, CELEX: 32026R1386), introduce common criteria for assessing investment risks, set out core elements of screening mechanisms (Article 4), and require prior authorisation for certain sensitive sectors. The Regulation also sets up a coordinated cooperation mechanism among Member States and the Commission, including secure digital information exchange. It applies from 17 January 2028, with certain procedural articles effective 16 July 2026.
EU Council
Employment, Social Policy, Health and Consumer Affairs Council to address cyber violence and housing
At its 29 June 2026 meeting, the Employment, Social Policy, Health and Consumer Affairs Council will approve conclusions on cyber violence against girls, examine demographic trends’ impact on housing policy, and exchange views on student and middle-income housing security, labour mobility, and the EU Anti-Poverty Strategy.
EP Committee Work
IMCO Public Hearing on Protection of Minors Online in the Single Market
On 24 June 2026, the IMCO Committee held a hearing on protection of minors online. The hearing assessed enforcement of existing EU legislation and the Digital Services Act, identified gaps in consumer protection for children, and gathered input from the Commission, industry stakeholders (Meta, BEUC, CDT Europe, EDRi, DOT Europe, Kids Unplugged), and the Chair, Anna Cavazzini. The session discussed the fragmentation of enforcement, the effectiveness of guidelines to safeguard minors, and explored possible policy and legislative solutions for more coherent and futureproof EU-level minors’ protection.
ITRE Committee Public Hearing on Digital Networks Act proposal
On 24 June 2026, the ITRE Committee organised a public hearing supporting scrutiny of the Digital Networks Act (DNA) proposal. Independent experts—including Marko Mišmaš (BEREC Chair 2026), Alexandre de Streel (CERRE), Anna Renata Pisarkiewicz (European University Institute), and Peter Alexiadis (CERRE/King’s College London)—discussed harmonisation of Single Market digital rules, regulatory simplification, technological sovereignty, and ways to boost digital infrastructure and market competitiveness. The hearing provided a forum for examining the DNA’s potential to address regulatory fragmentation and foster innovation.
