POLITICAL UPDATE: THE EUROPEAN PARLIAMENT - March 2025

Written By Ollie Rackham

Declan Johnson, Consultant

Legislative & Policy Developments

  • AI Act Implementation Guidelines Finalised: The EP adopted technical standards for enforcing the AI Act, focusing on high risk systems, transparency, and penalties for non-compliance.

  • Green Deal Industrial Plan Expanded: New measures approved to boost clean tech manufacturing, including subsidies for European battery production and renewable hydrogen.

  • Corporate Sustainability Due Diligence Directive (CSDDD) Amendments: Stricter rules passed requiring large firms to monitor environmental and human rights impacts across supply chains.

  • Digital Services Act (DSA) Enforcement Strengthened: New oversight mechanisms introduced to tackle illegal content and disinformation ahead of EU-wide elections.

2. Economic & Financial Policies

  • Eurozone Fiscal Rules Reform: Agreement reached on more flexible debt reduction targets, allowing member states longer adjustment periods.

  • Anti-Money Laundering (AML) Package: Final approval given to a centralised EU AML Authority and expanded crypto currency oversight.

  • Banking Union Progress: Proposal for a European Deposit Insurance Scheme (EDIS) advanced to reduce financial fragmentation.

3. Climate & Energy

  • 2035 Combustion Engine Ban Confirmed: No further exemptions granted, solidifying the phase-out of new petrol/diesel car sales by 2035.

  • Carbon Border Adjustment Mechanism (CBAM) Expanded: New sectors (chemicals, plastics) added to the levy on carbon-intensive imports.

  • Renewable Energy Targets Increased: Binding 45% renewables share by 2030 endorsed, with faster permitting for wind/solar projects.

4. Foreign Affairs & Security

  • Ukraine Facility Fund Activated: €50 billion package approved for 2025–2027, combining grants, loans, and military aid.

  • EU-China Trade Safeguards: New anti-subsidy probes launched on Chinese EVs and solar panels, with provisional tariffs expected by mid-2025.

  • Defence Industrial Strategy Unveiled: Joint procurement incentives and €3 billion fund to ramp up ammunition production.

5. Social & Rights Based Initiatives

  • European Media Freedom Act (EMFA): Rules to protect journalists from spyware and political interference adopted.

  • Right to Repair Directive Passed: Manufacturers required to provide spare parts and repairs for electronics/appliances for up to 10 years.

  • LGBTQ+ Rights Resolution: Non-binding vote urging member states to recognize same-sex parenthood EU-wide.

6. Institutional & Electoral Updates

  • 2024 Election Review Published: Report on disinformation threats and voter turnout trends ahead of the 2029 cycle.

  • EP Seat Reallocation Post-Brexit: Final agreement on redistributing 14 vacant seats among 12 member states.

7. Health & Consumer Protection

  • Pharmaceutical Strategy Reform: Faster approvals for generics and measures to prevent drug shortages passed.

  • Food Waste Reduction Targets: Binding 30% cut by 2030 agreed, with stricter monitoring for supermarkets.

8. Digital & Innovation

  • European Chips Act Funding Released: €4 billion allocated for semiconductor R&D and manufacturing.

  • Data Act Enters Force: Rules on fair access to industrial/data-sharing take effect, with GDPR-aligned safeguards

9. Next Steps

  • April plenary to focus on migration pact implementation and defence cooperation.

  • Critical votes expected on the EU budget revision and nature restoration law.

 

Ollie Rackham
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