This Week in the Single Market — Brussels (#28, 2026)
Council and Parliament legislate on AI implementation; End-of-life vehicles Regulation published; Euro 7: brake and battery testing rules; Russia 21st sanctions adopted; Anti-dumping, animal health updates.
July 19, 2026 to July 25, 2026
Council and Parliament legislate on AI implementation; End-of-life vehicles Regulation published; Euro 7: brake and battery testing rules; Russia 21st sanctions adopted; Anti-dumping, animal health updates.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
European Commission
Commission opens consultation on revised Rescue and Restructuring State aid guidelines
The European Commission published draft revised Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty. The update proposes including the steel sector within scope, adapting criteria for innovative startups, and allowing more flexibility in hybrid financial instruments when determining a company's risk status. Stakeholders can comment until 4 September 2026. Executive Vice-President Teresa Ribera underlines the importance of adapting the framework ahead of its expiry at end 2026. Adoption is planned for later this year, with discussions also scheduled with Member States. The guidelines derive from Article 107(3)(c) TFEU.
Commission approves €54 million Luxembourg State aid for transport sector
A €54 million State aid scheme for Luxembourgish road and rail transport companies threatened by rising fuel prices was approved by the Commission under the Middle East Crisis Temporary State Aid Framework (METSAF), adopted on 29 April 2026. The scheme, notified under case SA.123838, will run until 31 December 2026 and covers up to 70% of qualifying fuel costs incurred from March to December 2026. The measure was found compatible with Article 107(3)(c) TFEU, and is part of wider efforts to mitigate crisis-led energy price shocks in exposed sectors.
EU and Member States adopt 21st package of Russia sanctions
The Commission reported on the entry into force of the EU’s 21st package of sanctions against Russia, expanding sectoral restrictions affecting energy, finance, trade, and the military-industrial complex. The package places new export bans on critical commodities and technologies, introduces LNG tanker sale notification and port access restrictions, adds over 200 entities and individuals to the asset freeze list, extends certain measures to Belarus, and implements anti-circumvention steps involving entities in several third countries. The price cap on Russian oil remains suspended until July 2027. The cumulative number of EU listings relating to Russian aggression is now close to 3,000.
Commission clears Paramount's acquisition of Warner Bros. Discovery, subject to remedies
The European Commission conditionally approved Paramount Skydance Corporation's acquisition of Warner Bros. Discovery, under Regulation (EC) No 139/2004 (EU Merger Regulation), case M.12278. The transaction was cleared following Paramount's commitment to withdraw from a key distribution joint-venture (UIP) within 13 months post-closing to address concerns over movie distribution market concentration in the EEA. Further restrictions on joint distribution agreements were imposed for a 10-year period. Oversight will be conducted by an independent trustee under Commission supervision.
Commission registers Citizens’ Initiative on digital identity and age-checks, refuses migration initiative
The Commission ruled admissible the Citizens' Initiative ‘Stop Killing The Internet: No Digital ID & No Age Verification', allowing it to proceed to the signature collection stage. A parallel initiative calling for a moratorium on non-Western migration on ethnic or cultural grounds was rejected on legal grounds, being manifestly contrary to Article 2 TEU and Article 21 of the Charter of Fundamental Rights. The eligibility decision does not prejudge Commission legislative action, which is conditional on the collection of at least one million valid signatures.
EU Legislation (Official Journal)
Regulation (EU) 2026/1744: Digital Omnibus on AI facilitates application of AI Act
Regulation (EU) 2026/1744, published 24 July 2026, amends several legislative acts including the AI Act (2024/1689) to clarify and simplify implementation. The omnibus modifies compliance pathways, streamlines obligations for SMEs and 'small mid-caps,' introduces a grace period for certain providers, refines definitions for safety components, and further develops provisions for regulatory sandboxes, post-market monitoring, and committee governance. The Regulation adjusts AI system data requirements, bias detection, and processing of special categories of data, and details the interplay with product legislation. Entry into force is immediate, with staged application dates through August 2028.
Regulation (EU) 2026/1738: New rules for circularity and end-of-life management for vehicles
Regulation (EU) 2026/1738, adopted 8 July 2026, establishes circularity requirements for automotive design and end-of-life vehicles, repealing Directives 2000/53/EC and 2005/64/EC. It sets out recovery, recyclability, and material content obligations for manufacturers, introduces new producer responsibility rules, and delivers harmonised targets for the integration of recycled materials. The Regulation extends the scope beyond passenger and light vehicles, mandates digital vehicle passports, specifies reporting duties, and strengthens export, registration, and cross-border monitoring for vehicles within the single market.
EU Council
Council Regulation (EU) 2026/1848 amends Russia restrictive measures, adds sectoral and circumvention controls
The Council amended Regulation (EU) No 833/2014 on 23 July 2026 with Regulation (EU) 2026/1848, introducing expanded sectoral bans on exports critical to Russia’s military-industrial complex and crypto-asset services, restrictions on LNG trading and refineries, strengthened anti-circumvention provisions, and refined humanitarian derogations. The updated measures implement new procedures for oil and LNG trade, third-country vessel monitoring, compliance enforcement, and judicial protection for Union operators against litigation related to sanctions compliance.
