Welcome to Better Europe’s weekly update on EU Affairs.
EUDR DELAYED: EU STRIKES DEAL TO KEEP LANDMARK LEGISLATION IN PLACE
EU member states and the Parliament this week reached a crucial agreement to delay the implementation of the EU Deforestation Regulation (EUDR) by one year, setting a new deadline of 30 December 2025. Despite the delay, the legal text remains unchanged and the regulation’s ambitious goal of ensuring deforestation-free supply chains remains intact. The European People’s Party (EPP), which had pushed for amendments to weaken the law, eventually withdrew its proposals, signalling a political defeat after failing to garner enough support. The agreement includes a political statement from the European Commission committing to finalise country risk benchmarks six months ahead of the new deadline and to explore ways to reduce administrative burdens in the 2028 review. An “emergency break” will also apply if the online system for businesses is not fully operational by the end of December 2025 or if the country classification is not published at least six months in advance. While companies welcome the extra time to prepare, critics warn that the delay gives deforestation another year to continue unchecked, undermining the urgency of climate action. The agreement will now go to the plenary session of the European Parliament between 16 and 19 December for final approval before being formally adopted by Member State ambassadors on 20 December.
BARNIER’S FALL: FRANCE AT A POLITICAL CROSSROADS
In a stunning political upheaval, the government of French Prime Minister Michel Barnier collapsed this week, following a vote of no confidence passed by 331 votes out of 577. The motion, driven by an unusual alliance between the left and the far right, condemned Barnier’s controversial social security budget and resulted in the shortest tenure of a prime minister in modern French history. Barnier’s resignation is a major blow to President Emmanuel Macron, who was already facing growing calls for his own resignation. Despite extensive negotiations with the far-right on migration and fiscal issues, Barnier’s attempts to stabilise the political landscape have failed, leaving France in a state of governance paralysis. The government is now unable to pass a budget for 2025, with a looming deficit of 6.1% of GDP. The timing of Barnier’s resignation, just before crucial votes in the National Assembly, raises concerns about Macron’s ability to secure a fragile parliamentary majority. With Barnier gone, Macron’s political strategy is now in jeopardy and his opponents are likely to push for a change in leadership. Without the power to dissolve parliament until July 2025, and with no clear path to new elections, France faces an uncertain future. The collapse of Barnier’s government has triggered a profound crisis for both Macron’s presidency and France’s standing within the EU. As political paralysis deepens, the country faces an increasingly uncertain future, with its influence in European affairs now hanging in the balance.
MEP HAVE BEEN GOOD THIS YEAR AND WANT THEIR GIFTS
Whether your gifts are coming from Saint Nicholas, Santa Claus, or the Three Kings, ’tis the season and as everyone else, politicians have their wish list ready. Now that the new European Commission has started and a first draft of the Commission’s Work Programme shows what the VDL2.0 Commission is planning for their first 100 days in office, MEPs also want to have their say. In the Parliament’s Economic Committee, the first two own-initiative reports aim to set the scene for the coming mandate: on the future of the EU’s Banking Union, and on the ECB’s macro-economic, financial stability, and digital euro policy. More reports are coming soon, on competition policy and the European Investment Bank. Compared to previous election cycles, the Commissioner hearings have resulted in almost no policy commitments from new Commissioners, so MEPs and outside stakeholders seem to be keen on using the “INI” reports as agenda-setting tools. And if MEPs don’t get the gifts they wanted, they can still opt for legislative initiative reports, because Commission President von der Leyen promised to follow-up on such requests even better than last time.