The EU is reshaping its regulatory framework in response to economic challenges, geopolitical dynamics and technological disruption. Recent initiatives signal a stronger focus on competitiveness and security, shifting from an earlier emphasis on climate neutrality and standard-setting. While sustainability commitments remain part of the agenda, they are increasingly assessed against economic priorities, making regulatory outcomes harder to predict.
For businesses, understanding these priorities is essential because opportunities and risks coexist. Simplification measures and investment incentives may create growth potential, while accelerated reforms could introduce compliance challenges and legal uncertainty. Trade-offs are significant. Greater emphasis on competitiveness and security may delay or reshape sustainability objectives, with implications for sectors dependent on green regulation. Political fragmentation adds complexity. Coalition dynamics and lobbying efforts could slow reforms or alter their scope.
Strategic insight into these developments will enable businesses to manage risks, identify opportunities, and navigate Europe’s changing regulatory environment.
We believe the four forces steering EU regulatory activity are:
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
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