Insights

On February 26, the European Commission presented its Clean Industrial Deal (CID). As a follow-up to the European Green Deal, the CID aims to strengthen the competitiveness of European industry while at the same time accelerating the decarbonization of the economy.

On October 4, 2024, the Court of Justice of the EU (CJEU) ruled in the Diarra case that the transfer rules of the Fédération Internationale Football Association (FIFA) regarding the termination of player contracts without just cause were incompatible with EU internal market and competition laws. Following this landmark ruling, FIFA published temporary changes to its transfer rules on December 23, 2024. This judgment could have a significant impact on the economic model for football in Europe, and on the balance of power both between clubs, and between clubs and their players.

Since Donald Trump’s election to a second term as President of the United States, the possibility of U.S. trade measures against the European Union became more tangible. The new administration is reportedly considering imposing sanctions on certain EU Member States and imposing additional tariffs on EU exports to the U.S.

Just over a year ago, the notification obligations under the EU Foreign Subsidies Regulation (FSR) became applicable. Since then, M&A transactions and bids for government contracts above certain thresholds must be notified to the European Commission. Pending the Commission’s review, the transaction cannot be completed, or the contract cannot be awarded. What lessons can be learned from the application of the FSR to date? Has the FSR proved to be an effective tool in leveling the playing field, or has its main effect been to burden companies with red tape, at the risk of discouraging investment in Europe?

Cattle, cocoa, coffee, oil palm, soya, wood, rubber?  Do you sell any of these commodities? Do you sell any products derived, containing or using any of these commodities? Are there any companies in your supply chain which sell or use these commodities, or derivative products?  Do you (or others in your supply chain) sell products in the EU/EEA, or export products from the EU/EEA?  If so, you – and your supply chain – must likely comply with the Deforestation Regulation.[1] And getting ready is no easy feat – even despite the recent actions to postpone some of the application deadlines of concern. 

After a somewhat turbulent adoption process, on 25 July 2024 the Corporate Sustainability Due Diligence Directive (“CS3D”)[1] finally entered into force.  The CS3D requires certain companies operating in the EU/EEA, to identify and address adverse impacts on human rights and the environment as regards their actions both inside and outside of Europe. This includes obligations for companies to issue publicly available annual statements on human rights and environmental issues, and to adopt and put into effect transition plans for climate change mitigation.

EU member states must transpose the directive into national law within two years of its entry into force.  Compliance with the Directive will be introduced in stages, as follows:

At the beginning of the year, we brought to your attention that a number of important Belgian and EU legislative changes are likely to have an impact in 2024: there are new laws that have been adopted and proposals that are expected to firm up into law.

On June 20, 2023, the European Commission and the High Representative for Foreign Affairs and Security Policy published a Joint Communication on the European Economic Security Strategy. The Strategy was adopted to reduce risks to the European Union’s economic security amid rising geopolitical tensions and rapid technological changes. The Strategy is structured according to a three-pillar approach: promoting competitiveness, protecting against risks and partnering with like-minded countries.

On March 13, 2024, the EU legislators reached a provisional agreement on the content of the regulation prohibiting products made with forced labour (“the FL Regulation”). This piece of legislation is part of a series of proposed directives addressing human rights in supply chains which also incorporates recent European ESG efforts (CSRD, CBAM, Regulation against deforestation).

A number of important Belgian and EU legislative changes are likely to have an impact in 2024. On the one hand, there are new laws that have been adopted and will start to bite, and, on the other, there are proposals that are expected to firm up into law.

On October 3, 2023, the European Parliament adopted a report on a new trade defense instrument in the European Union (herein referred to as the “EU” and the “Union”): the so-called “anti-coercion instrument” (“ACI”). The ACI is expected to enter into force before the end of 2023 as a new addition in the EU’s trade defense toolkit.

On July 6, 2023, members of the European Parliament’s Civil Liberties Committee (CLC) adopted a draft negotiating mandate that would target those violating or circumventing EU Sanctions.

On March 30, 2023, Advocate General (AG) Tamara Capeta of the Court of Justice of the European Union (CJEU) published her opinion in relation to a preliminary reference submitted by the Budapest High Court (Case C-106/22).

Days before the recent UN Biodiversity Conference (COP15), the European Parliament and the Council reached an agreement on the terms of a new Regulation on deforestation-free products. First initiated in 2021 within the Green Deal framework, this Regulation is part of a wider effort from the European legislator to regulate international supply chains (see our previous alert on the Corporate Sustainability Reporting Directive).