European Union

Written by Clare Ferguson with Sara Raja.

The 28th regime is a proposed EU-level legal framework that would allow innovative companies to operate across the EU under a single set of rules. Companies would not have to deal with differing regulations across Member States, which would help boost the single market. On Monday, Parliament is set to debate a  legislative-initiative report on the 28th regime from the Committee on Legal Affairs (JURI). The report suggests national limited liability companies be able to register as ‘Societas Europaea Unificata’ (S.EU), which would be automatically recognised in all Member States. It recommends a harmonised EU legal framework for corporate law to align national rules across all Member States, while ensuring safeguards for national laws to avoid undermining labour and social laws. It proposes a common digital direct entry point allowing entrepreneurs to establish companies within 48 hours, and harmonised rules on employee financial participation schemes.

On Monday, Parliament is expected to debate a legislative-initiative report from the Committee on Employment and Social Affairs (EMPL) proposing a new directive to protect workers who may become unemployed in the move towards a greener and more digital society. The report calls on the European Commission to create a comprehensive framework to ensure EU countries create jobs in regions where jobs are most likely to disappear. This framework should ensure the development of viable economic alternatives and attract the necessary investment. The report also calls to set certain workplace conditions, including the right to training during working hours, health and safety measures, the right to worker consultation and collective bargaining and stronger protections against unfair dismissal. It also calls for increased support for a just transition in the 2028-2034 multiannual financial framework (MFF). Lastly, the proposed directive would require Member States to develop national strategies and business support programmes for small and medium-sized businesses.

Critical medicine shortages and the EU’s growing reliance on external suppliers for critical ingredients pose a threat to EU public health. The proposed ‘critical medicines act’ aims to improve the availability and security of supply of critical medicines in the EU by decreasing dependency on single suppliers and non-EU countries, such as India and China, and improving pharmaceutical manufacturing in the EU. On Monday, Members are scheduled to debate a report from the Committee on Public Health (SANT) regarding the proposed regulation, and set Parliament’s position for trilogue negotiations. The report expands the definition of a ‘strategic project’ to improve EU manufacturing capacity and calls for the creation of a critical medicines security fund within the 2028-2034 MFF and an EU coordination mechanism for national stockpiles and contingency stocks of critical medicines.

Proposed reform of EU air passenger rights to address issues such as delays, cancellations, weak enforcement and unclear rules had been stalled in the Council for over a decade due to disagreements on compensation, extraordinary circumstances and enforcement. Members are now scheduled to consider the reform on Tuesday with a debate on the recommendation from the Committee on Transport and Tourism (TRAN) on second reading. The report rejects the Council’s position in favour of higher delay thresholds and reduced compensation, and supports distance-based compensation of €300-€600, a closed list of exemptions, and stronger passenger protections, such as free hand luggage, bans on unfair fees and longer claim deadlines.

On Tuesday, Members are scheduled to consider the 2025 annual implementation reports on common security and defence policy from the Committee on Security and Defence (SEDE) and on common foreign and security policy from the Committee on Foreign Affairs (AFET). Both reports identify Russia’s war against Ukraine as a primary threat to the EU and Member States, and call for stronger support for Ukraine to protect European security. They both acknowledge the importance of EU relations with the United States in securing peace in Ukraine, with the SEDE report noting the risks of isolationist US foreign policy and expressing concern at the US government’s threats against Greenland’s sovereignty. The AFET report highlights the current global geopolitical instability and accelerated erosion of democratic norms, stating that the EU’s credibility depends on its ability to act coherently and decisively. It calls for a gradual transition to qualified majority voting for common foreign and security policy decisions without military or defence implications, while encouraging greater use of constructive abstention.

On Tuesday, Members are set to consider a resolution on the AFET committee’s annual report on human rights and democracy in the world. The report aims at informing a post-2027 EU action plan for human rights and democracy, and reiterates Parliament’s call for a stronger plan based on a full review of the current framework, with clear benchmarks, indicators and timelines. It highlights growing threats to human rights and the international system, proposes improvements to EU tools such as human rights dialogues, support for human rights defenders, conditionality in EU trade and international agreements and human rights sanctions. It also stresses the need for earmarked funding for human rights and democracy support in the next MFF, notably through the proposed Global Europe instrument.

The EU is facing a rising drone threat linked to Russian provocations and is boosting drone and counter-drone capabilities. On Thursday, Parliament is scheduled to debate an own-initiative report from the Committee on Security and Defence (SEDE) setting out a comprehensive strategy to prepare the EU for drone-enabled conflict, calling for the rapid integration of drone and counter-drone capabilities across EU defence planning and stronger protection of civilian infrastructure. It stresses the need to build a robust, autonomous European drone industry, reduce reliance on non-EU suppliers and shift from a primarily regulatory approach to a security model focused on operational capabilities and strategic autonomy.

Quick links to all our publications for this plenary session:

• Outcome of the European Council of 17-18 December 2015: Post-European Council Briefing
• The Parliament of Cyprus and EU affairs
• Priority dossiers under the Cyprus EU Council Presidency
• 40th anniversary of Spain’s EU accession
• 40th anniversary of Portugal’s EU accession
• The 28th regime: A new legal framework for innovative companies
• Just transition directive in the world of work: Creating jobs and revitalising local economies
• Proposal for a critical medicines act: Addressing shortages, building a more resilient supply chain
• Air passenger rights
• Implementation of the common security and defence policy – Annual report 2025
• Implementation of the common foreign and security policy – Annual report 2025
• Human rights and democracy in the world: Annual report 2025
• Drones and new systems of warfare: Adapting the EU to today’s security challenges

On Monday 19 January, MEPs and Commissioners will discuss proposals for grouping together different EU funds in the next multiannual budget.
Committee on Agriculture and Rural Development
Committee on Budgets
Committee on Regional Development

Source : © European Union, 2026 - EP

Spokespersons for Parliament and for the political groups will hold a briefing on the 19 - 22 January plenary session, on Friday at 11.00 in Parliament’s Anna Politkovskaya press room.

Source : © European Union, 2026 - EP

Length of video : 120'

Disclaimer : The interpretation of debates serves to facilitate communication and does not constitute an authentic record of proceedings. Only the original speech or the revised written translation is authentic.
Source : © European Union, 2026 - EP

DRAFT REPORT containing a motion for a non-legislative resolution on the draft Council decision on the conclusion, on behalf of the Union, of the Enhanced Partnership and Cooperation Agreement between the European Union and its Member States, of the one part, and the Republic of Uzbekistan, of the other part
Committee on Foreign Affairs
Ilhan Kyuchyuk

Source : © European Union, 2026 - EP

Length of video : 105'

Disclaimer : The interpretation of debates serves to facilitate communication and does not constitute an authentic record of proceedings. Only the original speech or the revised written translation is authentic.
Source : © European Union, 2026 - EP

Length of video : 15'

Disclaimer : The interpretation of debates serves to facilitate communication and does not constitute an authentic record of proceedings. Only the original speech or the revised written translation is authentic.
Source : © European Union, 2026 - EP

By David Howarth (University of Luxembourg) and Lucia Quaglia (University of Bologna)

Financial market integration has been a core objective of European integration since the 1950s. Over several decades, the European Union (EU) has adopted hundreds of legislative acts aimed at removing barriers to cross-border finance and harmonising the regulation and supervision of capital markets. Yet progress has been uneven, contested, and repeatedly repackaged.

The most recent example is the transformation of the Capital Markets Union (CMU)—launched in 2015, relaunched in 2020, and rebranded as the Savings and Investments Union (SIU) in early 2025. Our recent article with JCMS examines key policy narratives—the causal stories policymakers use to justify and promote specific reforms— that have been used to promote CMU over time. We find it surprising that—despite the importance of financial market integration for EU economic growth—the Commission has strategically promoted the policy through a variety of narratives linked to policy goals that have greater support among member state governments and public opinion.

A technical project with broad ambitions

Financial market integration is, at its core, a technical policy area. It primarily concerns banks, non-bank financial firms (e.g., asset management), stock exchanges, clearing houses, and supervisors. For most citizens—and many politicians—it remains remote and opaque. Yet over time, EU institutions have increasingly presented financial integration as a solution to a wide range of broader economic and political challenges — notably, the digital and green transitions, and European competitiveness in relation to the United States and China.

This expanding ambition is also visible in the shift from CMU to SIU. What began as a project to deepen European capital markets has been reframed as a tool to support economic growth, finance the green and digital transitions, strengthen Europe’s geopolitical position, and mobilise household savings for long-term investment. Rather than abandoning a stalled project, EU policymakers have repeatedly changed the story told about it.

To explain this strategy, we adopt an actor-centred constructivist perspective, which highlights how purposeful actors deploy ideas strategically to build political support for a policy. In particular, we examine how EU supranational actors use policy narratives to widen support for a highly contested integration project.

Five narratives for one project

Drawing on a qualitative and quantitative analysis of 421 public speeches delivered between 2014 and 2024 by senior officials at the European Commission, the European Central Bank (ECB), and the three European Supervisory Authorities (ESAs), we identify five main policy narratives used to promote financial market integration.

First, CMU has been framed as a way to create new opportunities for European financial firms, enhancing their competitiveness and scale. Second, it has been presented as a mechanism to increase private funding for the real economy, especially for small and medium-sized enterprises. Third, EU officials have linked CMU to the green and digital transitions, portraying integrated capital markets as essential to financing climate action and technological innovation. More recently, a fourth narrative has gained prominence: financial integration as a response to geopolitical and geoeconomic challenges, notably Europe’s lagging competitiveness relative to the United States and China. Finally, a fifth narrative focuses on long-term investment and savings, emphasising the need to channel Europe’s high household savings into productive investment—an argument central to the rebranding of CMU as SIU.

These narratives overlap, but their relative importance has shifted over time, reflecting changing economic conditions and political priorities. The evolution of CMU narratives closely tracks broader shifts in EU policy priorities. In its early phase, CMU was tied to post-crisis economic recovery and investment, notably through the Juncker Plan. After 2020, it became increasingly linked to financing the green and digital transitions. Following the pandemic, Russia’s invasion of Ukraine, and growing global economic fragmentation, geopolitical narratives moved to the fore.

The latest rebranding as Savings and Investments Union builds on these earlier narratives while adding a new emphasis on retail savings. Influential reports by Enrico Letta and Mario Draghi have reinforced the argument that Europe must better mobilise household savings to support long-term investment and competitiveness. The shift also reflects an effort to make financial integration appear more relevant to citizens, not only as workers or consumers but as savers and investors.

Why progress towards CMU has been so difficult

The repeated reframing of CMU reflects the deeply contested political economy of financial market integration. CMU is not a single reform but a bundle of measures, including supervisory centralisation, tax harmonisation, insolvency law reform, market infrastructure consolidation, and the expansion of non-bank finance.

Each of these elements creates winners and losers across and within member states. Large economies may favour stronger EU-level supervision, while smaller states resist it. Countries with low corporate taxes oppose harmonisation, while others push for it. Banks often support securitisation reforms but resist measures that increase competition from non-bank intermediaries.

As a result, stable coalitions in favour of CMU have been hard to build. EU officials themselves have acknowledged that national vested interests have repeatedly stalled or diluted reforms. In this context, policy narratives become a key political tool. By linking financial market integration to widely supported objectives—such as climate policy, innovation, or strategic autonomy—EU institutions seek to expand the boundaries of the issue and attract new supporters beyond the financial sector.

The limits of narrative power

Our findings highlight both the strategic use and the limits of policy narratives. EU supranational actors clearly act as ideational entrepreneurs, flexibly reframing financial market integration to align with the priorities of the moment. This confirms the importance of ideational power for institutions that lack strong coercive tools. At the same time, repeated shifts in narrative have not delivered a decisive breakthrough in financial market integration. Despite more than a decade of reframing, CMU—and now SIU—remains incomplete. Narratives can attract attention and broaden debate, but they cannot eliminate underlying distributional conflicts.

The story of CMU and SIU thus illustrates a broader dynamic of European integration: when political consensus is elusive, projects persist not by succeeding, but by being continuously reinterpreted. Whether the latest narrative centred on savings and investment will finally unlock significant progress remains an open question.

David Howarth has been a Full Professor of Political Science at the University of Luxembourg since 2012 and was previously a Jean Monnet Chair at the University of Edinburgh. He researches on European economic governance / political economy topics and specifically financial regulation and Economic and Monetary Union. He is the author or co-author of six monographs, a textbook, over seventy peer-reviewed journal articles and dozens book chapters. He has also edited or co-edited fifteen journal special editions and six volumes on these topics including, most recently (with Judith Clifton and Daniel Fuentes), Regional Development Banks in the World Economy (OUP, 2021). His most recent monographs are Banking on Europe: How the European Commission became a semi-sovereign borrower (OUP, 2026, with Dermot Hodson et al.), Bank Politics (OUP, 2023, with Scott James) and The Political Economy of Banking Union (OUP, 2016, with Lucia Quaglia).

Lucia Quaglia (DPhil Sussex, MA Sussex) is Professor of Political Science at the University of Bologna. Previously, she was Professor at the University of York. She has published 9 books, 7 of which with Oxford University Press. Her most recent book is The Perils of Internal Regime Complexity in Shadow Banking, Oxford University Press. She has guest co-edited seven special issues of academic journals, including the Journal of European Public Policy, New Political Economy, Review of International Political Economy, Journal of Common Market Studies, and Journal of European Integration. She has published more than 60 articles in refereed academic journals in the fields of public policy, political economy, and EU studies. Together with Manuela Moschella and Aneta Spendzharova she has edited the textbook European Political Economy, Oxford University Press, 2024.

The post From Capital Markets Union to Savings and Investments Union: Why the EU keeps changing the story on financial integration appeared first on Ideas on Europe.

On 14 January 2026, European Council President António Costa delivered a speech at the New Year's reception co-hosted by the Presidents of the European Council and the European Commission.

The President of the European Council, António Costa, together with the President of the European Commission, Ursula von der Leyen, will attend the EU-Mercosur signature ceremony in Asunción, Paraguay on 17 January 2026. Ahead of the ceremony, on 16 January, President Costa and President von der Leyen will visit Rio de Janeiro to meet President Lula of Brazil.

Press briefing ahead of the Eurogroup meeting will take place on 15 January 2026 at 14.00. 

Statement by the High Representative on behalf of the European Union on the situation in Iran.

President of the Eurogroup, Kyriakos Pierrakakis, issued a statement on the nominations for the post of ECB Vice-President.

The Council adopted the decisions authorising the signature of the EU-Mercosur Partnership and Interim Trade Agreements, advancing political cooperation, trade partnership and sustainable development between the EU and Mercosur.

Weekly schedule of President António Costa, 12-18 January 2026.

European Council President António Costa and President of the European Commission, Ursula von der Leyen met with the President of Lebanon, Joseph Aoun, in Beirut, Lebanon, as part of the official visit to Lebanon on 9 January 2026.

European Council President António Costa and President of the European Commission, Ursula von der Leyen met with the President of Syria, Ahmed al-Sharaa in Damascus, Syria, as part of the official visit to Syria on 9 January 2026.

The Council prolonged EU restrictive measures in view of the situation in Guatemala until 13 January 2027.

On 8 January 2026, European Council President António Costa attended the EU-Jordan summit in Amman, Jordan. In his opening remarks, he emphasised that EU-Jordan relations are strong and will only get stronger. Our strategic and comprehensive partnership is a key milestone. 

At the Jordan-EU summit in Amman, Jordan on 8 January 2026, the President of the European Council, António Costa, and the President of the European Commission, Ursula von der Leyen, representing the EU, and King Abdullah II of Jordan, issued a joint statement.