European Council urges year-end deal on competitiveness files

Competitiveness agenda

The European Council reviewed implementation of the One Europe, One Market agenda and welcomed progress on key proposals, while calling for more ambition and adherence to agreed timelines from co-legislators and the Commission. It highlighted deliverables for 2026 including the 28th regime for company law, the Industrial Accelerator Act, the European grids package and the digital, environmental and automotive simplification packages.

Leaders invited co-legislators to conclude negotiations on all roadmap files, plus the automotive package, by the end of the year and to maintain momentum for 2027. They also called for further Commission initiatives to streamline planning and permitting, avoid gold-plating and cut reporting obligations, particularly for SMEs.

On energy, the European Council welcomed the Commission proposal to postpone certain obligations in the Methane Regulation and the Commission's stated intention to prolong the temporary state aid framework for exposed industrial sectors, develop a short-term framework for EU refinery capacity and efficiency, and take initiatives to bundle energy demand voluntarily. It also urged acceleration of the legislative process on the Market Stability Reserve and an updated assessment of ETS2 impacts.

Financial framework and enlargement

Following an updated draft Negotiating Box from the Irish Presidency, the European Council discussed elements needed for a balanced compromise on the next multiannual financial framework. It invited its president to take negotiations forward, stating that agreement before the end of 2026 would allow legislative acts to be adopted in 2027, needed to ensure funding reaches beneficiaries without interruption in January 2028.

On enlargement, leaders held a strategic discussion and stressed that enlargement remains a geostrategic investment. They recalled that accession is merit-based and each candidate advances on individual progress, and took note of the Commission communication on preparing for a wider Union, calling on the Council to analyse all strands. They welcomed ongoing work on the accession treaty with Montenegro and noted the Presidency's intention to work toward provisional closure of remaining negotiating chapters, subject to Montenegro implementing corresponding reforms.