Centre for European Policy Studies CEPS

What the Commission proposes

The European Commission has published an impact assessment and legislative review concerning Directive 2003/87/EC and Decision (EU) 2015/1814 on the EU Emissions Trading System (EU ETS) and the Market Stability Reserve. This initiative serves as the first part of a broad post-2030 framework package aimed at driving competitiveness and cost-effective decarbonisation. It evaluates how stationary installations, aviation, and maritime sectors can deliver necessary emission reductions while ensuring carbon leakage protection and orderly market functioning. The review addresses the shrinking supply of allowances and adapts the system to align with intermediate 2040 targets and 2050 climate neutrality goals.

• Reviews the EU ETS and the Market Stability Reserve to prepare for post-2030 climate targets.
• Assesses pathways toward the 2050 climate neutrality goal and the intermediate 2040 target.
• Focuses on industrial sectors, maritime transport, and aviation to ensure cost-effective decarbonisation.
• Examines carbon leakage protection, free allocation benchmarks, and the funding transition through EU revenues.
• Analyzes market functioning and allowance supply adjustments to prevent trading frictions and price volatility.
• Accompanies related proposals simplifying monitoring, reporting, and verification regulations.

Summary written by AI from the Commission's document.

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1. EN 87 EN The Competitiveness Seal referred to in Article 8 Regulation (EU) […]/[…] of the European Parliament and of the Council* may be awarded to projects which have been assessed in an award procedure under the Innovation Fund and comply with the minimum quality requirements of that award procedure. The documents related to the award procedure may set out additional conditions. 7. Projects funded under this Article shall be required to share knowledge with other relevant projects and with Union-based researchers who have a legitimate interest. 8. The Commission shall report annually to the Climate Change Committee, the European Parliament and the Council on the implementation of the Innovation Fund, providing an analysis of funded projects by sector and Member State and an assessment of their expected contribution to Union climate neutrality under Regulation (EU) 2021/1119.

   Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE..., page 88 (EN)

2. In addition, targeted interviews were conducted and the Commission participated in multiple (virtual) bilateral and multilateral stakeholder meetings and conferences to discuss the revision of the EU ETS, including with companies and business associations across different sectors, trade unions, non-governmental organisations and public authorities of Member States. To support the revision in relation to maritime-related topics, a joint meeting of the European Sustainable Shipping Forum sub-group on the implementation of MRV and ETS Maritime (ESSF) and the Climate Change Expert Group (CCEG Maritime) 29 The details of the public consultation can be found at: EU emissions trading system for maritime, aviation and stationary installations, and market stability reserve - review.

   Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE..., page 13 (EN)

3. These principles underpin the policy design, supporting investment, innovation, and competitiveness. The framework is further supported by a robust governance structure that integrates planning, financing, cooperation, and progress monitoring, while strengthening resilience to the growing impacts of climate change. Given the EU’s enlargement ambitions, the framework’s design and implementation must also consider the integration of candidate and potential candidate countries. Consideration should be given in the accession process to how the EU ETS solidarity mechanisms and funds should cover enlargement countries. Overall, it is aligned with the 2040 objectives, covers all sectors of society, and maintains an appropriate balance between national and EU-level legislation.

   Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE..., page 9 (EN)

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What the Commission proposes

The European Commission proposes the Cloud and AI Development Act to establish a framework of measures aimed at strengthening Europe's cloud and artificial intelligence ecosystem. The initiative focuses on three pillars, which include research and innovation for greening infrastructure, industrial investments to triple EU data processing capacity, and actions to increase secure data processing capacities for cloud providers in the EU. Ultimately, the proposal seeks to address infrastructure gaps, reduce critical dependencies on non-European providers, and enhance the Union's digital sovereignty and competitiveness.

• Addresses the EU gap in cloud and AI infrastructure capacity through three distinct pillars.
• Promotes research and innovation to accelerate sustainable cloud and AI computing technologies.
• Aims to triple the EU data processing capacity over the next 5 to 7 years via industrial investments.
• Introduces measures to increase secure data processing capacities for high-critical use cases.
• Establishes common criteria for sovereign cloud computing services to reduce extraterritorial dependencies.
• Promotes open-source solutions and joint public procurement activities across the public sector.

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1. European Commission ⎯ Administrative costs (e.g. design and monitor EU-level funding instruments; setting up and overseeing the repository of audited sovereign services; financial and coordination support) ⎯ Adjustment costs (e.g., setting targets; monitoring progress; new supervisory capacity to enforce EU-level targets; design of training programme; setting up the certification framework; developing and deploying the federation platform; setting up the voucher scheme for SMEs; setting up the cloud and AI toolbox) ⎯ Enforcement costs (e.g. running EU-level infrastructure, defining targets and ensuring compliance) ⎯ Harmonisation of practices and approaches across the EU ⎯ Increased ability to steer the market towards EU priorities and accelerated innovation ⎯ Reduced duplication of efforts at national level ⎯ Faster and more reliable procurement processes;

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2. Building on the annex, the report should better analyse the impact of these measures on public authorities, including the need for specialised expertise and interplay with envisaged Open-Source Programme Offices, as well as how a uniform approach across the EU will be ensured. The impact of these measures on the companies offering the relevant IT services should also be discussed. (3) Regarding external coherence: as the policy measure PM11, defining the sovereignty levels and the associated requirements, includes criteria based on the European Cybersecurity Certification Scheme for Cloud Services (EUCS), which has not yet been adopted, the report should describe in more detail the interplay of the two initiatives as well as implementation uncertainties for EUCS.

   Opinion of the Regulatory Scrutiny Board, page 4 (EN)

3. Divergent national procurement practices complexify the market for European providers and the underlying situation of imperfect information is a market failure requiring an EU- level response. Calls for EU-action to address these challenges were also made in the public consultation. EU action is expected to have a clear added value in addressing the problem of limited and geographically concentrated availability of computing capacity. By providing a common approach to data centre deployment, it would enable the coherent planning and deployment of computing capacity in a geographically balanced way, while avoiding a race to the bottom and reducing regulatory complexity for investors and data centre operators. The EU is uniquely positioned to ensure that investment and acceleration policies reflect collective priorities and avoid fragmentation.

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 80 (EN)

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What the Commission proposes

The European Commission has proposed a new regulation on the European Union Agency for Law Enforcement Cooperation (Europol) to reinforce its operational role in combating serious cross-border crime and terrorism. The initiative replaces Regulation (EU) 2016/794, updates Europol's mandate to address a changing security landscape, and provides for increased resources and staff. It also establishes structured cooperation between Europol and eu-LISA for information management and ICT services while ensuring full alignment with EU data protection frameworks.

• Replaces Regulation (EU) 2016/794 to establish a revised mandate for Europol.
• Aims to enhance Europol's operational capabilities against online and offline serious crime and terrorism.
• Establishes structured cooperation between Europol and eu-LISA for information systems and communication infrastructure.
• Allocates an estimated EUR 1.053 billion and 910 additional staff posts over the 2028-2034 MFF.
• Maintains alignment with the EU data protection framework and fundamental rights standards.

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1. EN 159 EN the Financial Regulation90 and in line with the Common Approach on decentralised agencies91. Europol will annually submit a Single Programming Document (SPD) to the Commission, the European Parliament, and the Council, setting out its multiannual and annual work programmes, objectives, expected results, and performance indicators. This document is prepared taking into account the opinion of the Commission and the Joint Parliamentary Scrutiny Group (JPSG). Additionally, Europol will adopt a Consolidated Annual Activity Report (CAAR), which assesses progress against the SPD’s objectives. The Management Board approves this report before it is transmitted to the Commission, the European Parliament, the Council, the Court of Auditors, and national parliaments by 1 July each year.

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 160 (EN)

2. During the evaluation period, Europol cooperated with the European Union Agency for Law Enforcement Training (CEPOL) to deliver training programmes addressing priority crime areas such as cybercrime, financial crime and counterterrorism. In 2024, more than 800 law enforcement officers participated in Europol-supported training activities. The implementation of this support to EU agencies and EU-level frameworks developed progressively during the evaluation period and was influenced by differences in institutional mandates, data access conditions and the maturity of inter-agency working arrangements. The focus group with EU agencies and bodies noted that cooperation is often operationally close, but that data protection arrangements, mandate boundaries and data ownership principles continue to shape how information can be exchanged and used across institutional actors.

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3. The provision significantly strengthens Europol’s role in supporting Member States through specialised expertise, while reinforcing cooperation with the European Union Agency for Law Enforcement Training (CEPOL) in areas requiring coordinated EU-level support and specialised training. Articles 65 to 67 establish the coordination and governance layer through the creation of a dedicated Capabilities and Innovation Service and a Capabilities and Innovation Advisory Group bringing together Member States, relevant EU bodies, and experts within a common EU innovation ecosystem for internal security. Chapter V - Organisation of Europol Chapter V aligns Europol’s governance model with the common approach applicable to decentralised EU agencies.

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 22 (EN)

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What the Commission proposes

The European Commission proposes a new regulation on the European Union Agency for Criminal Justice Cooperation (Eurojust) to repeal and replace Regulation (EU) 2018/1727. This initiative responds to an evaluation showing that while Eurojust is indispensable, its operations need greater efficiency and a wider mandate to tackle modern cross-border crime. The proposal expands Eurojust's competence into emerging areas such as cybercrime, gender-based violence, and violations of EU restrictive measures, while transforming it into a more proactive analytical hub. It also aims to streamline the agency's internal structure and improve cooperation with partners like Europol and the European Public Prosecutor Office.

• Repeals and replaces Regulation (EU) 2018/1727 to establish a renewed legal framework for Eurojust.
• Expands Eurojust's mandate to cover emerging crime areas including cybercrime, gender-based violence, and violations of EU restrictive measures.
• Transforms Eurojust from a reactive coordination body into a strategic and analytical hub for cross-border judicial cooperation.
• Standardises National Members' status and powers to improve governance and operational efficiency.
• Addresses findings from the 2025 evaluation regarding complex decision-making, wide case scope, and slow procedures with third countries.
• Aligns with related revisions of the Europol Regulation, the European Investigation Order Directive, and the European Union Data Protection Regulation.

What is asked: The Commission sought the views of citizens, Member States, and other relevant stakeholders on Eurojust and the Eurojust Regulation via an online public consultation to inform the impact assessment for the revision of the Eurojust Regulation.

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1. 53 challenges, such as the increased involvement of cross-border and organised crime groups targeting EU funds or the use of advanced technologies, including artificial intelligence tools. In this context, the Commission is finalising its evaluation of the EPPO and OLAF Regulations and, based on their findings, will propose a revision of both Regulations, which will also likely encompass proposals to revamp the relations between Eurojust and the EPPO and OLAF. A.PO3 highlights a moderate external coherence: extending competences to emerging crime areas (e.g. cybercrime) aligns with EU policy priorities, but expanding analytical or operational roles may risk overlap with the mandate of Europol. Concerning the new analytical competence of judicial data on the field of organised crime, overlaps and/or duplication of work may occur with Europol’s role.

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2. Stakeholders also stressed the need for Eurojust to prioritise cooperation with third countries and invest in technological tools to respond to the evolving nature of crime. The online survey, which was open until 4 March 2026, targeted practitioners, Eurojust administration representatives and National Members, and public officials from both EU and non-EU countries. The survey results indicated broad support for governance reform, including the introduction of a Management Board to alleviate the College from administrative burden, and clarify the division of tasks. Stakeholders also agreed on the need to harmonise the status and powers of National Members and to strengthen cooperation with relevant EU agencies and bodies, such as Europol and the EPPO.

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 7 (EN)

3. 10 • Criminal use of the digital space, AI and new technology was, almost unanimously, seen as one of the main challenges that criminal investigations and prosecutions in Europe will face in the coming years. 3.2. Call for evidence Call for Evidence was launched by the Commission and made available on the “Have Your Say” website from 28 October 2025 until 3 December 2025, with 42 replies received. Responses were submitted by members of the general public covering 21 EU countries, of which the majority were stakeholders representing public authorities (22), followed by EU citizens (9). Other respondents included academic/research institutions (3), companies/businesses (3), one environmental organisation, and two NGOs. The main points raised by the stakeholders concerned the European Judicial Network (EJN), Eurojust’s mandate, and governance-related issues.

   COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT REPORT..., page 11 (EN)

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What the Commission proposes

The European Commission proposes a revision of EU public procurement rules through a new regulation that repeals the existing 2014 directives on public procurement, utilities, and concessions. The initiative aims to modernize and simplify rules, reduce administrative burdens, and enable preferences for European products in strategic sectors to secure supply chains and add EU value. It also amends multiple sector-specific regulations and directives containing procurement provisions to improve coherence and transparency. Furthermore, the proposal addresses high administrative burdens and legal uncertainty identified in previous evaluations regarding public buyers and businesses.

• Revises and replaces Directives 2014/23/EU, 2014/24/EU, and 2014/25/EU with a single Public Procurement Act regulation.
• Enables preference for European products in strategic sectors to ensure security of supply and EU added value.
• Aims to modernize and simplify rules, specifically considering EU start-ups and innovators.
• Amends various sector-specific regulations and directives that contain public procurement provisions.
• Addresses administrative burdens and legal uncertainty that currently affect public buyers and businesses, including SMEs.

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1. • eProcurement network: Pan-European digital infrastructure designed to enable cross-border procurement by connecting national eProcurement platforms, ensuring interoperability and standardised data exchange. • EU services: Public Procurement Buyer Platform (PPBP) and Public Procurement Supplier Platform (PPSP). Voluntary services offered by the European Commission for contracting authorities and economic operators, which are connected to the eProcurement Network. • PPES: Public Procurement Eligibility Service. EU service that integrates the functionalities of the ESPD and eCertis tools to improve cross-border procurement. It connects both the Business Wallet Network and the eProcurement Network, achieving the Once-Only Principle (OOP). • PPDS: Public Procurement Data Space.

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2. • Strategic sectors, without specifying particular ones • Personal protective equipment and healthcare • Steel, energy infrastructure, and construction, where demand certainty can accelerate decarbonisation and the circular economy • Key technologies such as AI, cloud, quantum, semiconductors, digital infrastructure and platforms, cybersecurity, defence, and space These respondents generally emphasized the importance of focusing on sectors that are critical to the EU's economic and technological development, as well as those that are essential for ensuring the EU's security and resilience. Overall, the comments suggest that the scope of Made in Europe provisions should be targeted and strategic, with a focus on promoting the EU's competitive advantages and protecting its critical interests.

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3. [BEU.2] offers a framework for coherent European preference in selected sectors in future acts, through a toolbox of mechanisms to public buyers, while standardising definitions, origin rules and documentation and integrating these tools into the EU digital procurement infrastructure. [BEU.3] makes European preference mandatory by requiring the exclusion of non-EU/EEA or non-covered third-country economic operators, subject only to limited safeguards such as lack of competition or excessive cost. • MPL - [MPL.1] establishes a decentralised network of interconnected national eProcurement platforms linked through an EU interoperability layer.

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 11 (EN)

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