This Week in the Single Market — Brussels (#26, 2026)
Commission takes Hungary to EU Court for retail margin caps; new Regulation bans municipal waste exports except to Switzerland; Parliament backs updated trade with Mexico; ECOFIN approves Hungary recovery plan.
July 05, 2026 to July 11, 2026
Commission takes Hungary to EU Court for retail margin caps; new Regulation bans municipal waste exports except to Switzerland; Parliament backs updated trade with Mexico; ECOFIN approves Hungary recovery plan.
📋 In This Week's Newsletter
• 📅 This Week's Calendar in Brussels
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🏛️ European Parliament
• 🤝 EU Council
• ✒️ EP Committee Work
This Week's Calendar in Brussels
- Committee on International Trade (INTA): On July 13, the European Parliament's Committee on International Trade (INTA) is scheduled to meet. Agenda includes: Annual report on export controls of dual-use items- Presentation by Denis Redonnet, Chief Trade Enforcement Officer; Chair’s announcements; Chair’s announcements concerning coordinators’ decisions.
- Committee on the Internal Market and Consumer Protection (IMCO): On July 14, the European Parliament's Committee on the Internal Market and Consumer Protection (IMCO) is scheduled to meet. Agenda includes: Amending Regulations (EC) No 1272/2008, (EC) No 1223/2009 and (EU) 2019/1009 as regards simplification of certain requirements and procedures for chemical products; Chair’s announcements; Date of next meetings.
- Committee on the Internal Market and Consumer Protection (IMCO): On July 14, the European Parliament's Committee on the Internal Market and Consumer Protection (IMCO) is scheduled to meet. Agenda includes: * * ; Chair’s announcements; *** End of electronic vote **.
- Committee on the Internal Market and Consumer Protection (IMCO): On July 14, the European Parliament's Committee on the Internal Market and Consumer Protection (IMCO) is scheduled to meet. Agenda includes: Coordinators' meeting; *** In camera ***.
- Committee on the Internal Market and Consumer Protection (IMCO): On July 14, the European Parliament's Committee on the Internal Market and Consumer Protection (IMCO) is scheduled to meet. Agenda includes: Amending Directives 2000/14/EC, 2011/65/EU, 2013/53/EU, 2014/29/EU, 2014/30/EU, 2014/31/EU, 2014/32/EU, 2014/33/EU, 2014/34/EU, 2014/35/EU, 2014/53/EU, 2014/68/EU and 2014/90/EU of the European Parliament and of the Council as regards digitalisation and common specifications; Amending Regulations (EU) No 765/2008, (EU) 2016/424, (EU) 2016/425, (EU) 2016/426, (EU) 2023/1230, (EU) 2023/1542 and (EU) 2024/1781 as regards digitalisation and common specifications; Chair’s announcements.
- Committee on International Trade (INTA): On July 14, the European Parliament's Committee on International Trade (INTA) is scheduled to meet. Agenda includes: Annual report on export controls of dual-use items- Presentation by Denis Redonnet, Chief Trade Enforcement Officer; Chair’s announcements; Chair’s announcements concerning coordinators’ decisions.
- Committee on Legal Affairs (JURI): On July 15, the European Parliament's Committee on Legal Affairs (JURI) is scheduled to meet. Agenda includes: * * *; Amending Directives 2009/43/EC and 2009/81/EC, as regards the simplification of intra-EU transfers of defence-related products and the simplification of security and defence procurement; Amending Regulation (EU) 2019/1753 as regards amendments adopted by the Assembly of the Lisbon Union on 14 July 2025 to the Common Regulations under the Lisbon Agreement on Appellations of Origin and Geographical Indications.
European Commission
Commission refers Hungary to Court of Justice for price margin restrictions in food and retail
On 7 July 2026, the European Commission decided to refer Hungary to the Court of Justice of the EU in cases INFR(2025)2052 and INFR(2025)2102 for imposing statutory caps on price margins for certain food and non-food products, applied respectively to food retailers (10%) and drugstores (15%). These restrictions predominantly affect non-Hungarian undertakings by locking margins well below market levels, in breach of Article 49 TFEU and Directive 2006/123/EC. Hungary justifies the limits as a profit control mechanism, not accounting for all related costs. Originally temporary (Government Decrees 42/2025 and 93/2025) and repeatedly extended, these measures became permanent via Act CLXIV of 2005 on commerce in May 2026. After letters of formal notice (June 2025) and reasoned opinions (December 2025), the Commission now seeks a judgment from the CJEU for restricting market access in violation of freedom of establishment rules.
Commission refers Romania to the Court of Justice for overdue payments to pharmacies
The European Commission referred Romania (INFR(2024)4004) to the Court of Justice of the EU on 7 July 2026 for consistent late payments by the National Health Insurance House (CNAS) to pharmacies, breaching Directive 2011/7/EU on combating late payment in commercial transactions. The Directive requires public authorities operating in healthcare to pay within 60 days; analysis showed routine overrun of this deadline, leaving pharmacies exposed and the pharmaceutical supply chain at risk. Romania had received a letter of formal notice (April 2024), a reasoned opinion (February 2025), and an additional reasoned opinion (January 2026). Despite these steps, systemic payment delays persist, affecting hundreds of independent pharmacies and undermining Single Market competitiveness.
Commission adopts EU Livestock Strategy and Protein Action Plan for sector resilience
On 6 July 2026, the European Commission approved its first Livestock Strategy together with the Protein Action Plan, setting a framework for the sector's long-term competitiveness and sustainability. The strategy’s five priorities are: crisis preparedness, sector competitiveness, sustainability improvements, support across all regions and farm sizes, and excellence in production. Actions include improved risk management, alignment of standards with trade partners, investment in animal welfare, and harmonised emissions accounting at farm level. The Protein Action Plan targets a 10 percentage point rise in EU-grown protein supply (from 25% in 2025 to 35% by 2035). Vice-President Raffaele Fitto, Health Commissioner Olivér Várhelyi, and Agriculture Commissioner Christophe Hansen oversee delivery. The strategy follows extensive stakeholder engagement announced in the Vision for Agriculture and Food.
EU Legislation (Official Journal)
EU Regulation prohibits export of mixed municipal waste except to Switzerland
Regulation (EU) 2026/1703, adopted on 8 July 2026 and published in OJ L on 10 July 2026 (CELEX: 32026R1703), amends Regulation (EU) 2024/1157. It clarifies that the prohibition on exports of mixed municipal waste destined for recovery outside the EU, in force since 21 May 2026, shall not apply to Switzerland. This adjustment preserves existing cross-border management practices between Union border regions and Switzerland, preventing unintentional shifts to longer-distance transport and higher emissions.
Commission imposes definitive anti-dumping duty on Chinese tyres for passenger cars and light lorries
Commission Implementing Regulation (EU) 2026/1540, of 6 July 2026 (OJ L 2026/1540; CELEX: 32026R1540), introduces a definitive anti-dumping duty on imports of new pneumatic tyres (load index up to 121) from China, following an investigation initiated on 21 May 2025. The inquiry found significant distortions in Chinese cost structures and material injury to the EU industry. Duties apply to all relevant customs codes, with detailed justifications regarding the selection of a representative country and exclusion of temporary tyres from scope.
European Parliament
Parliament consents to modernised EU-Mexico trade agreement
On 8 July 2026, Parliament approved both the modernised global agreement (MGA) and interim trade agreement (iTA) with Mexico. The MGA replaces the 2000 framework and covers strategic cooperation, trade, and sustainable development. The iTA, by 474 votes to 131, enables new market access terms in advance of full ratification. The agreements remove nearly all tariffs and extend geographical indication protection to 568 EU products. Rapporteurs: Javi López (AFET) and Borja Giménez Larraz (INTA). Next, the Council will formally conclude the agreements pending ratification by all parties.
EU Council
ECOFIN approves Hungary recovery plan, adopts country-specific recommendations
At its 10 July 2026 meeting, the Economic and Financial Affairs Council (ECOFIN) approved Hungary’s new recovery and resilience plan under the RRF. Ministers also adopted the 2026 European Semester recommendations for each member state and launched an excessive deficit procedure for Bulgaria, setting a correction deadline to 2029.
EP Committee Work
ENVI committee adopts draft reports on CBAM downstream extension and Temporary Decarbonisation Fund
The Committee on the Environment, Climate and Food Safety (ENVI) held an extraordinary meeting in Strasbourg on 6 July 2026. Members voted on the provisional agreement to amend Decision (EU) 2015/1814 on the market stability reserve, adopted a draft report on extending Regulation (EU) 2023/956 (CBAM) to more downstream goods (Rapporteur: Mohammed Chahim, S&D), and endorsed the draft report for establishing the Temporary Decarbonisation Fund (Rapporteur: Pascal Canfin, Renew). The session also considered opinions from ITRE and BUDG and addressed related fisheries and industrial decarbonisation legislation.
INTA committee recommends conclusion of EU-Mexico Interim Agreement
The International Trade Committee (INTA) met in Strasbourg on 6 July 2026 and adopted its recommendation (Rapporteur: Borja Giménez Larraz, PPE) to consent to the Council's draft decision on the Interim Agreement on Trade between the EU and Mexico. The adoption of the recommendation precedes Parliament’s plenary approval, enabling the provisional application of new trade terms ahead of full MGA ratification.
