Aligning strategies with EU principles of high standards, sustainability, and resilience supports is essential to maintaining market access. These priorities are deeply rooted in EU policymaking and will shape legislation for years to come. An additional benefit is that to be seen as a trusted, EU-aligned global player can strengthen consumer confidence and support growth.
Right now, the EU’s focus is on competitiveness is a response to key structural gaps. Once progress is made, attention is likely to swing back to sustainability and social objectives. For businesses, this means maintaining compliance with stricter security and environmental standards.
At the same time, recent crises have changed the EU’s mindset. While framed as a ‘moment of independence’ and ‘sovereignty’, these highlight an existential challenge: the EU must reform to stay globally competitive. This suggests lawmakers may stick with business-friendly measures for longer, including efforts to cut administrative burdens and to boost growth.
The emerging ‘gold standard’ combines socio-environmental goals with policies that strengthen competitiveness and security. For businesses this offers a degree of certainty: investments aligned with these twin objectives are likely to remain viable. The main unknowns that remain are political. Geopolitical tensions and internal fragmentation could slow legislative process.
In this evolving landscape, businesses that integrate competitiveness with sustainability and security will be best positioned for long-term success. By anticipating regulatory shifts and aligning with EU priorities, organisations can not only mitigate risks but also unlock strategic advantages, ensuring resilience and growth in a complex global market.
Opportunities for consideration:
Access to EU funding and incentives through instruments like InvestEU, SAFE, and NextGenerationEU for clean tech, AI, and advanced manufacturing.
Risk: Regulatory uncertainty due to political fragmentation and shifting priorities may delay or reshape compliance requirements. Strategic actions: Engage early with EU initiatives and explore partnerships or consortia to leverage funding and scale operations.
Growth potential in strategic sectors such as cloud services, semiconductors, quantum computing, and renewables.
Risk: Compliance costs and complexity as high standards and sustainability requirements remain embedded in legislation. Strategic actions: Treat compliance as a strategic investment—anticipate global norms and participate in standard-setting discussions.
First-mover advantage in low-carbon products and supply chain resilience as EU accelerates permitting and procurement favouring sustainable solutions.
Risk: Geopolitical shocks and supply chain disruptions could impact sourcing and market access. Strategic actions: Diversify supply chains and invest in resilience measures to reduce exposure to systemic risks.
Enhanced consumer trust by aligning with EU principles on data privacy, digital fairness, and protection of vulnerable groups.
Risk: Enforcement and reputational risks for non-compliance, especially in digital and sustainability domains. Strategic actions: Strengthen transparency and governance frameworks to position as a trusted EU-aligned global player.
Key contacts
Dr. Alexander Niethammer, LL.M. Managing Partner Rechtsanwalt, Attorney-at-Law (New York), Managing Partner Germany T: +49 89 54565 318 E: alexanderniethammer@ eversheds-sutherland.com
Pia Krökel Caruana Knowledge Lawyer Member of the EU Knowledge Hub T: +32 472 88 87 37 E: PiaKroekelCaruana@ eversheds-sutherland.com
© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.
Connect with us
