News

With the entry into force of Directive (EU) 2026/470 on 18 March 2026, the Omnibus I package has become operational, launching a significant review of the European framework on sustainability and sustainable finance.

The intervention particularly affects the CSRD and CSDDD, aiming to reduce compliance burdens and narrow the scope of companies subject to the related obligations.

CSRD (Corporate Sustainability Reporting Directive) Amendments

Regarding the CSRD, the new framework limits its scope to large companies exceeding 1,000 employees and €450 million in annual net turnover, significantly reducing the number of entities required to report ESG under European standards. In Italy, the perimeter shrinks to just a few hundred companies, mainly concentrated among major groups and the most economically significant entities.

CSDDD  Amendments

As for the CSDDD, the review introduces more selective criteria, applying due diligence obligations only to companies with at least 5,000 employees and €1.5 billion in turnover. In Italy, the obligations will focus on a very limited number of large operators, excluding almost all SMEs.

The European Commission has presented a proposal for a regulation on the EU Inc., marking the first concrete legislative development of the 28th regime. This optional, digital and harmonised legal framework is designed to facilitate operations within the single market. The main objective of this initiative is to reduce regulatory fragmentation across the 27 national legal systems, by simplifying the establishment, operation and cross-border growth of businesses, particularly for start-ups and scale-ups.

According to the proposal, EU Inc. is a company form that allows for the incorporation of an EU Inc. entirely online within 48 hours, at a maximum cost of €100, with no minimum capital requirements and simplified procedures throughout the company’s entire lifecycle. The regulation also provides for extensive use of digitalisation, the BRIS system and the ‘once-only’ principle to facilitate the cross-border circulation of company information. The proposal confirms the role of national business registers as the competent authorities for registration and the conferral of legal personality, whilst placing them within a more harmonised framework at EU level.

The European Commission has launched two new strategic initiatives to strengthen the future of the maritime sector: the EU Maritime Industrial Strategy and the EU Ports Strategy. Together, these initiatives set out a vision and a series of concrete actions to support and safeguard Europe’s maritime sector, with the aim of enhancing the competitiveness, sustainability and resilience of the entire EU shipping, port and shipbuilding ecosystem.

The Maritime Industrial Strategy is designed to foster innovation, competitiveness and decarbonisation across the shipbuilding and shipping industries. It promotes the uptake of advanced technologies and low-emission fuels, alongside the establishment of a maritime industrial alliance.

The Ports Strategy, in parallel, focuses on modernising European ports through digitalisation, the electrification of infrastructure and better integration with rail and road networks. These changes will be supported by investments in training and workforce reskilling, helping to drive the transition towards a more sustainable and digitalised maritime system.

The European Commission presented the Industrial Accelerator Act (IAA), a legislative proposal designed to reinforce the EU's industrial base and to increase demand for low-carbon, European-made technologies and products. The measure introduces "Made in EU" preferences in public procurement for strategic sectors such as steel, cement, cars and net-zero technologies, simplifies authorisations with a single digital gateway and imposes conditions on foreign investments exceeding €100 million, including minimum European employment and technology transfer.

The objective is to minimise external dependencies, encourage innovation and increase the share of manufacturing to 20% of European GDP by 2035.

The European Commission has put forward a new package of measures to strengthen the EU’s cybersecurity, responding to the growing number of cyber and hybrid attacks targeting essential services and democratic institutions. The central element is a revision of the Cybersecurity Act, intended to make ICT (information and communications technology) supply chains more secure and to ensure products and services are protected by design from the outset. The proposal introduces a simpler and faster EU-wide certification system, aimed at reducing costs and administrative burdens for businesses. It also places particular emphasis on limiting risks linked to suppliers from third countries considered sensitive, especially in mobile telecommunications networks. The package further strengthens the role of ENISA (the European Union Agency for Cybersecurity), which will support Member States and businesses in preventing and managing cyber incidents, including ransomware attacks.

Following the signing of the EU–Mercosur Agreement on 17 January, the European Parliament approved a motion to request the judicial review of the Court of Justice of the European Union (CJEU) in order to verify the agreement’s compliance with the EU Treaties. The referral to the Court could affect the timeline for implementation, potentially delaying the agreement’s entry into force by up to two years.

Cyprus will hold the rotating Presidency of the Council of the European Union from 1 January to 30 June 2026. Its agenda focuses on building a more autonomous and resilient Europe, able to act more effectively in strategic areas—starting with security and defence—while continuing to engage in international dialogue. Another priority is to boost competitiveness through a more efficient Single Market, simpler rules and targeted support for SMEs. The Presidency also highlights innovation and digital transformation as key drivers of growth, alongside investment in skills. Externally, Cyprus aims to strengthen partnerships with third countries and promote a balanced trade policy. It will also pay particular attention to social and territorial cohesion, seen as essential to ensuring fair and inclusive transitions.

On 17 January, the European Union and the Mercosur countries signed a Partnership Agreement (EMPA) and an Interim Trade Agreement (iTA), marking a historic step forward in relations between the two regions. The deal creates one of the largest free trade areas in the world, covering around 700 million consumers and potentially increasing EU exports to Mercosur by an estimated 39%. It also strengthens geopolitical cooperation and support for multilateralism, with expected benefits for economic growth, employment, environmental sustainability, and the green and digital transitions. The agreements must now go through the respective ratification processes in the EU and the Mercosur countries before they can fully enter into force.