COUNCIL OF THE EUROPEAN UNION,update

 

Press material Tuesday, 27 May 2025

● Council of the EU   27/05/2025 12:20 | Press release | Simplifying EU’s carbon border adjustment mechanism: Council agrees negotiating position   The Council adopted today its negotiating position (general approach) on one of the proposals of the so-called ‘Omnibus I’ legislative package, which simplifies and strengthens the EU’s carbon border adjustment mechanism (CBAM). The proposal seeks to provide simplification and cost-efficient compliance improvements to the CBAM regulation, without compromising its climate goals, as about 99% of embedded emissions in the imported CBAM goods would remain covered. The overall aim is to reduce the regulatory and administrative burden, as well as compliance costs for EU companies, especially SMEs. “Simplification and reduction of the administrative burden for our companies to boost EU competitiveness remain among the priorities of the Polish presidency. Today’s agreement sends a clear signal that the Council is determined to advance on this path as fast as possible.” — Adam Szłapka, Minister for the European Union of Poland Content of the proposal The Commission proposes, as the main simplification of CBAM rules, a broader ‘de minimis’ exemption from CBAM obligations by exempting importers, which do not exceed a single mass-based threshold set at a level of 50 tonnes of imported goods per importer per year. This new threshold would replace the current and much narrower provisions of the CBAM regulation exempting goods of negligible value. The proposed measure is expected, in most cases, to exempt from CBAM obligations SMEs and individuals, which import small or negligible quantities of goods covered by the CBAM regulation. Furthermore, the proposal contains several simplifications for all importers of CBAM goods above the threshold. This concerns particularly the authorisation procedure, the data collection processes, the calculation of embedded emissions, the emission verification rules, the calculation of the authorised CBAM declarants’ (parties wishing to import goods subject to the CBAM) financial liability during the year of imports into the EU, and the claim by authorised CBAM declarants for carbon prices paid in third countries. The Council’s negotiating mandate contains several amendments to the Commission proposal, with the purposes of further simplifying and clarifying the rules on CBAM. The Council also supports the new de minimis mass threshold of 50 tonnes of imported goods, as proposed by the Commission. Next steps Following today’s adoption of the Council’s position, the presidency will start negotiations with the European Parliament on this file. Background In October 2024, the European Council called on all EU institutions, member states and stakeholders, as a matter of priority, to take work forward, notably in response to the challenges identified in the reports by Enrico Letta (‘Much more than a market’) and Mario Draghi (‘The future of European competitiveness’).  The Budapest declaration of 8 November 2024 subsequently called for ‘launching a simplification revolution’, by ensuring a clear, simple and smart regulatory framework for businesses and drastically reducing administrative, regulatory and reporting burdens, in particular for SMEs. On 26 February 2025, as a follow-up to EU leaders’ call, the Commission put forward two ‘Omnibus’ packages, aiming to simplify existing legislation in the fields of sustainability and investment, respectively. Regulation on simplifying and strengthening the carbon border adjustment mechanism, Council general approach, 27 May 2025 Regulation amending regulation (EU) 2023/956 as regards simplifying and strengthening the carbon adjustment mechanism, Commission proposal, 26 February 2025

● Council of the EU

27/05/2025 11:25 | Press release | EU defence readiness: Council launches 6th wave of new PESCO projects   The Council today adopted a decision to launch the sixth wave of projects under the Permanent Structured Cooperation (PESCO), the EU’s key framework for defence capability development. With 11 new collaborative projects, the total number of PESCO initiatives now amounts to 75. This signals participating member states’ continuous, collective and resolute commitment to strengthening the EU’s defence readiness. In line with the strategic guidance provided by the European Council on 6 March 2025, the EU is stepping up its efforts to strengthen its military capabilities in the face of immediate and future challenges. The new projects span across various domains such as land, air, maritime, strategic enablers and force multipliers, and training facilities, as well as cutting-edge technologies such as quantum systems and directed energy weapons. This new wave includes the following projects: Joint European Electromagnetic Warfare Convergence Initiative (JEEWCI) Substitute for Lead in Infantry Ammunition (SLIA) Common Handheld Optronic Interface (CHOI) Infantry Navigation w/o GNSS (InfNav w/o GNSS) Directed Energy Systems (DES) Next Generation Dismounted Soldier System (NGDSS) Modular Seabed Vessel (MSV) Future (unmanned) Air-to-Air refuelling Capability Unmanned Air Transport of Injured Soldiers (UNATIS) Quantum Enablers for Strategic Advantage (QUEST) Medical Treatment Facility Role 2 Forward-Capability Development (MTF R2F-CD) Several of these projects directly respond to capability priorities identified by EU leaders, reinforcing PESCO’s role in strengthening EU’s defence posture and deepening its strategic sovereignty. Today’s decision demonstrates that PESCO continues to be a central instrument for addressing the EU’s capability gaps through cooperation. It mobilises participating member states to pool resources, coordinate investments, and improve their armed forces’ interoperability, while reinforcing the European Defence Technological and Industrial Base (EDTIB). Background The Permanent Structured Cooperation (PESCO) is a key EU defence initiative. It provides a framework for defence cooperation among the 26 participating EU member states who have entered into more binding commitments between one another. It enhances operational readiness and interoperability, defence spending and investment, capability development, and the contribution of armed forces to the most demanding missions, while also fostering a common strategic culture. With today's decision, the number of collaborative projects totals 75 and covers various areas such as: training facilities, land formation systems, maritime and air systems, cyber, and enabling joint multiple services and space. The 26 member states participating in PESCO are: Austria, Belgium, Bulgaria, Croatia, Czechia, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden. PESCO Website Permanent Structured Cooperation (PESCO) (background information) Permanent Structured Cooperation (PESCO) – Factsheet (EEAS website)  Council of the EU   27/05/2025 11:21 | Press release | SAFE: Council adopts €150 billion boost for joint procurement on European security and defence   The Council has adopted today a regulation setting up the Security Action for Europe (SAFE) instrument. SAFE is a new EU financial instrument that will support those member states that wish to invest in defence industrial production through common procurement, focusing on priority capabilities. SAFE will finance urgent and large-scale investments in the European defence technological and industrial base (EDTIB). The aim is to boost production capacity, making sure defence equipment is available when needed, and to address existing capability gaps - ultimately strengthening the EU’s overall defence readiness. Furthermore, SAFE will allow the EU to further support Ukraine by associating its defence industry to the instrument from the start. “We have adopted the first large-scale defence investment programme on the EU level worth €150 billion. This is not only a success of the presidency, but of the EU as a whole. This is unprecedented instrument which will boost our defence capabilities and support our defence industry. The more we invest in our security and defence, the better we deter those who wish us harm.” — Adam Szłapka - Polish Minister for the European Union Functioning of SAFE Through SAFE the EU will provide up to €150 billion that will be disbursed to interested member states upon demand, and on the basis of national plans. The disbursements will take the form of competitively priced long-maturity loans, to be repaid by the beneficiary member states. To ensure economies of scale and interoperability, and reduce possible fragmentation of the EDTIB, beneficiary member states will have to carry out, in principle, common procurements involving at least two participating countries to qualify for the loans. In response to current geopolitical situation and urgent need for massive investment in defence equipment, SAFE will also allow procurement involving only one member state for a limited period of time. Involvement of third countries SAFE opens up a new chapter in the cooperation with third countries. Ukraine and EEA-EFTA countries will be treated on the same terms as member states. Not only they will be able to join common procurements, but also it will be possible to buy from their industries. SAFE will also allow acceding countries, candidate countries, potential candidates and countries that have signed a Security and Defence Partnerships with the EU, such as the United Kingdom, to join common procurements. Furthermore, SAFE offers the possibility to conclude an additional bilateral or multilateral agreement with those third states, under which the eligibility conditions could be opened. Eligible action The eligible activities financed through SAFE will relate to the first list of priority areas identified by the European Council on 6 March 2025 and will be divided into two categories of defence products: 1) ammunition and missiles; artillery systems, including deep precision strike capabilities; ground combat capabilities and their support systems, including soldier equipment and infantry weapons; critical infrastructure protection; cyber; military mobility including counter-mobility; 2) air and missile defence systems; maritime surface and underwater capabilities; drones and anti-drone systems; strategic enablers, such as, but not limited to, strategic airlift, air-to-air refuelling and C4ISTAR systems as well as space assets and services; space assets protection; artificial intelligence and electronic warfare. Defence products belonging to category 2 will be subject to stricter eligibility conditions, requiring for the contractors to have the ability to decide on the definition, adaptation and evolution of the design of the defence product procured. For both categories of the products, procurement contracts will have to ensure that the cost of the components originating outside the EU, EEA-EFTA states and Ukraine is not higher than 35 % of the estimated cost of the components of the end-product The EU is committed to further strengthening and deepening transatlantic cooperation and engagement on security and defence, as well as complementarity with NATO. Against this background, SAFE will strive to enhance interoperability, continue industrial cooperation, and ensure reciprocal access to state-of-the-art technologies with trusted partners. Next steps SAFE will enter into force on the day following that of its publication in the Official Journal of the European Union, i.e. on 29 May 2025. Background and in its conclusions of 6 March 2025, the European Council stressed that Europe must become more sovereign, and more responsible for its own defence and better equipped to act and deal autonomously to cope with immediate and future challenges and threats. At that European Council, all member states committed to strengthening their overall defence readiness, reducing strategic dependencies, while addressing critical capability gaps and strengthening the EDTIB accordingly so that the EU is in a position to better supply equipment in the quantities and at the accelerated pace needed. SAFE is the first pillar of the European Commission's ReArm Europe Plan/Readiness 2030, which proposes to leverage over €800 billion in defence spending. The other pillars are: boosting national defence funding by activating the Stability and Growth Pact's national escape clause; making EU instruments such as the cohesion funds more flexible to allow greater defence investment; complementing public funding with contributions from the European Investment Bank; and mobilising private capital. Council Conclusions (6 March 2025) Questions and answers on ReArm Europe Plan/Readiness 2030 (European Commission website) Europe Security and defence (background information) European defence industry (background information) Defence numbers (background information)

● Council of the EU

27/05/2025 11:00 | Press release | CO2 emissions in cars: Council gives final approval to additional flexibility for carmakers   The Council has today adopted a targeted amendment to the regulation on CO2 standards for new passenger cars and vans, which aims to grant car manufacturers the flexibility required to meet their emissions targets for 2025. This is the last step in the decision-making procedure. The amended regulation provides that compliance with car manufacturers’ specific emissions targets as regards the three years 2025, 2026 and 2027 will be assessed based on an average of the performance of each manufacturer over these three years, instead of annually. Next steps Following the Council’s approval, the amended act was adopted. The regulation will enter into force on the 20thday following its publication in the Official Journal. Background The targeted amendment of the regulation on CO2 standards is one of the initiatives announced in the Industrial Action Plan for the European automotive sector, which was presented on 5 March 2025. In that context, the Commission underlined the urgency of adopting the proposal to provide car manufacturers with certainty as regards the 2025 target. CO2 emissions in cars: Council adopts position on Commission’s proposal without changes (press release, 7 May 2025) ‘Fit for 55’: Council adopts regulation on CO2 emissions for new cars and vans (press release, 28 March 2023) ● General Secretariat of the Council   New books added to the Council Library's collection - May 2025   Discover our selection of books recently added to the Council Library collection. ● Council of the EU   26/05/2025 21:13 | Meetings | Main results - Agriculture and Fisheries Council, 26 May 2025   The Council held a discussion on the vision for agriculture and food, welcoming the vision's emphasis on the need for dialogue with farmers. Ministers also took stock of the latest developments on agricultural markets. Furthermore, the Council received information on a number of 'other business' points, notably the simplification package for the agricultural sector. ● Council of the EU   26/05/2025 19:32 | Meetings | Main results - Foreign Affairs Council (Development), 26 May 2025   The Foreign Affairs (Development) Council addressed financing for development, EU-Africa relations, the situation in Ukraine, and the external action post-2027. ● Council of the EU   26/05/2025 15:35 | Press release | Council calls for a reform of the international financial architecture for development   The Council of the European Union has approved conclusions ahead of the 4th International Conference on Financing for Development (FfD4) that will take place in Seville from 30 June to 3 July 2025. The Council reaffirmed the EU’s commitment to multilateralism and a rules-based international order, emphasising the United Nations’ role in achieving global prosperity. The EU is committed to remaining a reliable partner in international development, ensuring that no one is left behind and shaping a fairer, more inclusive global financial system. The EU also reaffirmed its commitment to the 2030 Agenda for Sustainable Development, the Paris Agreement, and other global frameworks aimed at reducing poverty, promoting sustainable development, and tackling climate change. It also called for improved financing mechanisms, including enhanced private investment, innovative financial instruments, and continued efforts to fulfil Official Development Assistance (ODA) commitments. The Council emphasised that the FfD4 is a critical opportunity to accelerate global efforts to reform the international financing framework for sustainable development, addressing the widening global financing gap of USD 4 trillion annually. The conclusions also call for greater inclusion and reform of the international financial institutions, notably Multilateral Development Banks (MDBs), to enhance the voice and representation of developing countries while ensuring effectiveness and accountability. In its conclusions, the Council urged the international community to address challenges in global finance and systemic issues hindering progress towards the Sustainable Development Goals (SDGs). The Council underlined the urgent need to tackle pressing global challenges, including growing geopolitical tensions, the proliferation of conflicts, and disruptions to the international financial system. In the context of the upcoming FfD4 conference, the Council expressed its support for reducing SDGs financing gap by making better use of both public and private resources, leveraging public-private partnerships, blended finance, and other tools. The Council also underlined the need for continued reforms in the international tax system to combat illicit financial flows, improve domestic resource mobilisation, and ensure that all financing sources contribute effectively to development. Finally, the Council highlighted the critical role of the private sector in financing development, particularly in sectors such as infrastructure, climate, and education, urging international financial institutions to enhance their efforts and coordination to ensure that financing reaches the countries and communities that need it most. Council conclusions 27/05/2025 17:32 | Press release | Presidency conclusions on strengthening EU democratic resilience   In the context of the challenges faced by today’s EU democracies, the Polish presidency proposed to prepare a set of Council conclusions on strengthening EU democratic resilience. Despite broad support to the text in the General Affairs Council, the Ministers did not reach a consensus on the document. The presidency decided to issue the text as presidency conclusions supported by 25 Member States. Presidency conclusions on strengthening EU democratic resilience, 27 May 2025 ● Council of the EU   27/05/2025 19:35 | Meetings | Main results - General Affairs Council, 27 May 2025   The Council started preparations for the June European Council, adopted a general approach on the EU’s carbon border adjustment mechanism, discussed the request by Spain to include Catalan, Basque and Galician in the EU’s language regime, held the 8th hearing of Hungary as part of the article 7 TEU procedure and a country-specific discussion on the rule of law situation in Slovakia, Sweden and Belgium. ● Council of the EU   28/05/2025 12:37 | Press release | Syria: EU adopts legal acts to lift economic sanctions on Syria, enacting recent political agreement   The Council has adopted legal acts lifting all economic restrictive measures on Syria, with the exception of those based on security grounds. The adoption formalises the political decision announced on 20 May 2025, and aims at supporting the Syrian people in reuniting and rebuilding a new, inclusive, pluralistic and peaceful Syria. As part of the same approach, the Council has also removed 24 entities from the EU list of those subject to the freezing of funds and economic resources. Several of these entities are banks, including the Central Bank of Syria, or companies operating in key sectors for Syria’s economic recovery -such as oil production and refining, cotton, and telecommunications- while others are media and tv outlets. “This decision is simply the right thing to do, at this historic time, for the EU to genuinely support Syria’s recovery and a political transition that fulfils the aspirations of all Syrians. The EU has stood with the Syrian people throughout the last 14 years, and it will continue to do so. Today the EU reaffirms its commitment as a partner for the transition, one that helps the Syrian people to reunite and rebuild a new, inclusive, peaceful Syria.” — Kaja Kallas, High Representative for Foreign Affairs and Security Policy and President of the Foreign Affairs Council In line with its call for accountability and its support to a peaceful transition, the Council has extended the listings of individuals and entities linked to the Assad regime until 1 June 2026. In addition, in relation to the wave of violence that took place in Syria’s coastal region in March 2025, the Council has introduced new restrictive measures under the EU Global Human Rights Sanctions Regime, targeting two individuals and three entities for serious human rights abuses. The Council will continue monitoring developments on the ground and stands ready to introduce further restrictive measures against human rights violators and those fueling instability in Syria. The legal acts will soon be published in the Official Journal. Background The EU has stood with the Syrian people throughout the last 14 years, engaging in the search for a political solution and leading financial assistance. Following the fall of this regime, the Council on 24 February 2025 eased a number of EU restrictive measures in view of the situation in Syria in order to facilitate engagement with the country, its people and businesses. On 20 May 2025, the Council affirmed its continued commitment to supporting the Syrian people and the peaceful transition by announcing the political decision to lift economic sanctions, marking a historic shift toward aiding Syria’s transition and recovery following the fall of the Assad regime. The EU has continued to reaffirm its longstanding commitment to accountability, dating back to the crimes of the Assad regime, and monitored developments on the ground, including the steps undertaken by the transitional authorities following recent violence outbreaks. The EU has also consistently expressed its readiness to engaging with Syria’s transitional government and supporting a peaceful, inclusive future free from harmful foreign interference. Council Decision (CFSP) 2025/1096 of 27 May 2025 amending Decision 2013/255/CFSP concerning restrictive measures in view of the situation in Syria Council Implementing Decision (CFSP) 2025/1095 of 27 May 2025 implementing Decision 2013/255/CFSP concerning restrictive measures in view of the situation in Syria Council Regulation (EU) 2025/1098 of 27 May 2025 amending Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria Council Implementing Regulation (EU) 2025/1094 of 27 May 2025 implementing Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria Syria: Council statement on the lifting of EU economic sanctions, 20 May 2025 Syria: Statement by the High Representative on behalf of the European Union on the recent wave of violence, 11 March 2025 Syria: EU suspends restrictive measures on key economic sectors, 24 February 2025 Syria (background information) ● Council of the EU   28/05/2025 10:53 | Press release | Cyber: Statement by the High Representative on behalf of the European Union on malicious behaviour in cyberspace against Czechia   The European Union and its Member States, together with international partners, stand in solidarity with Czechia regarding the malicious cyber campaign that targeted its Ministry of Foreign Affairs. Czechia determined the cyber-attack has been perpetrated by the Advanced Persistent Threat 31 (APT31) that is associated with the Ministry of State Security of China. In recent years, malicious cyber activities linked to this country and targeting the EU and its Member States have increased. In 2021, we urged Chinese authorities to take action against malicious cyber activities undertaken from their territory. Since then, several Member States have attributed similar activities at their national level. We have repeatedly raised our concerns during bilateral engagements and we will continue to do so in the future. We strongly condemn malicious cyber activities, which are contrary to the United Nations framework of responsible state behaviour in cyberspace, and which all UN Member States have endorsed. We call upon all states, including China, to refrain from such behaviour, to respect international law and to adhere to the UN norms and principles, including those related to critical infrastructure. In this context, we reiterate that states should not allow their territory to be used for malicious cyber activities. The European Union reaffirms its strong commitment to prevent, deter and respond to malicious behaviour in cyberspace and stands ready to take further action when necessary. We will continue to cooperate with our international partners to promote due diligence and responsible state behaviour in cyberspace, with the aim to ensure a global, open, free, stable and secure cyberspace.