The Council of the EU has approved a protocol to facilitate cross-border data flows between the EU and Japan. This protocol is to be added in the agreement between the EU and Japan for an economic partnership. The protocol aims to provide greater legal certainty, ensuring that data flows between them will not be hampered by unjustified data localisation measures, and also ensuring the benefit from the free flow of data according to the EU and Japan’s rules on data protection and the digital economy. Companies will be able to handle data efficiently without cumbersome administrative or storage requirements, and deal with a predictable legal framework. It will remove data localisation requirements—the physical storage of their data locally, thus saving costs and complexities. At the same time, the protocol seeks to ensure that the rules on the protection of personal data and privacy of both the EU and Japan, which contribute to trust in the digital economy, will be fully respected. The agreement will enter into force once ratified by Japan and when the two parties have notified each other about the completion of their internal procedures.

The Council of the EU has given final approval to legislation reforming the EU customs framework to modernise customs controls, facilitate trade and strengthen the collection of duties, particularly for e-commerce. Non-EU e-commerce platforms selling into the EU will be treated as importers and made responsible for customs formalities and duty payments, with non-compliant operators potentially facing fines of up to 6% of annual import value, loss of customs privileges and online access restrictions. An EU-wide handling fee for small parcels will be introduced by 1 November 2026, while a new EU Customs Authority, based in Lille and due to begin operating in 2027, will use a central customs data hub to support risk-based controls and coordinate crisis management. The legislation also creates a ‘trust and check trader’ category, allowing qualifying businesses to access simplified procedures and, in some cases, release goods without active customs intervention. Subject to European Parliament approval and publication, use of the data hub will be mandatory for e-commerce businesses from 1 July 2028 and for all traders from 1 March 2034.

The Council of the European Union has approved a regulation amending the Capital Requirements Regulation (Regulation (EU) 575/2013) (CRR) as regards requirements for securities financing transactions under the net stable funding ratio.

The Council of the EU has given its final approval to a regulation reinstating a temporary derogation from data protection rules, allowing online service providers to voluntarily detect, report and remove child sexual abuse material on their platforms until 3 April 2028. The Council of the EU said that the measure addresses the legal gap created when the previous derogation expired on 3 April 2026 and ensures the continuation of voluntary activities that support the identification, investigation and prosecution of offenders, the rescue of victims and the prevention of further abuse. The regulation reflects amendments adopted by the European Parliament, including excluding number-independent interpersonal communications where end-to-end encryption is, has been or will be applied, but the Council of the EU said this does not prejudice ongoing negotiations on a permanent legislative framework. The regulation will be published in the Official Journal of the EU, enter into force three days later, and remain in force until 3 April 2028 while negotiations on long-term rules continue.

The Council of the EU has adopted a revision to Council Directive 91/271/EEC (the Urban Waste Water Treatment Directive). The revised Directive will better tackle pollution, prevent discharges of untreated urban wastewater into the environment, ensure that producers of pharmaceuticals and cosmetics contribute a minimum of 80% of the additional costs for the quaternary treatment of micropollutants via an extended producer responsibility scheme, and help the EU achieve its climate neutrality objective. The revised Directive will come into force 20 days after it is published in the Official Journal of the EU. Member States will then have 31 months to transpose the revised Directive into their national legislation.

The Council of the European Union has granted final approval to a directive that modernises the EU’s alternative dispute resolution (ADR) framework for consumer disputes. The revised directive streamlines procedures, improve accessibility and imposes a new requirement on traders to respond to ADR communications within 20 days. The directive also expands the scope of ADR to include disputes between EU-based consumers and traders from third countries and obliges member states to encourage greater ADR participation in sectors with low engagement or high complaint volumes. To facilitate cross-border dispute resolution, the European Commission will establish a multilingual IT platform designed to support users and simplify processes.

The Council of the EU has formally authorised the European Commission to open negotiations with the UK on two agreements: a common sanitary and phytosanitary (SPS) area for agricultural products and linking emissions trading systems (ETS). The SPS agreement aims to align Great Britain's standards with EU standards, removing most certificates and checks on agricultural products. The ETS agreement would facilitate trading of emissions allowances and allow mutual exemptions from Carbon Border Adjustment Mechanisms. Both negotiations follow a Common Understanding reached between the Commission and UK Government.

The Council of the European Union (EU) has adopted a decision authorising the European Commission and member states to sign the United Nations Convention against cybercrime. The Convention aims to harmonise laws across countries by criminalising specific cyber-related offences such as IT fraud, illegal interception and online child sexual abuse. It also promotes international cooperation in gathering and sharing electronic evidence for criminal investigations, including serious crimes like organised crime, provided they carry a minimum four-year prison sentence. The Convention will be open for signatures from 25 October 2025 and will come into force once ratified by forty signatories.

The Council of the EU has endorsed, without amendment, the European Commission’s proposal for temporary trade-liberalisation measures for Armenian products following Russian restrictions that disrupted Armenia’s exports and transit routes. The proposed regulation would suspend import duties on a broad range of goods for two years, liberalising around 80% of Armenian exports to the EU, including selected agricultural products subject to tariff-rate quotas. The preferential treatment would depend on Armenia complying with rules of origin, cooperating with the EU, refraining from imposing new restrictions on EU imports and respecting democratic principles, the rule of law and human rights under the EU-Armenia Comprehensive and Enhanced Partnership Agreement. Safeguards would protect EU producers from harmful increases in imports. The European Parliament is expected to approve the proposal without amendment in September 2026, after which the Council may formally adopt the regulation.

The European Council has approved an amendment to the regulation governing the EuroHPC Joint Undertaking, paving the way for the establishment of up to five artificial intelligence (AI) gigafactories across Europe. This amendment introduces a robust framework for funding and procurement, incorporates safeguards for start-ups and scale-ups, and allows for the redirection of unused EU funds towards AI projects.

The Council of the EU’s Special Committee on Agriculture has announced its endorsement of a targeted review of the Common Agricultural Policy (CAP) as proposed by the European Commission to address issues such as the implementation of the CAP strategic plans. The review will also address the Regulation on the financing, management and monitoring of the CAP. The Committee also endorsed the changes to the Good agricultural and environmental conditions (GAEC) standards including the introduction of a general provision allowing Member States to grant temporary and targeted derogations from certain conditionality requirements in the event of unforeseen climate conditions preventing compliance by farmers. The review also allows for Member States to amend their CAP strategic plans twice a year. The chair of the Special Committee on Agriculture will now send the offer letter to the European Parliament.

The Council of the European Union has formally approved the Ecodesign Regulation. The Ecodesign Regulation will set requirements for sustainable products and replace the existing Directive (EC) 2009/125 (the Ecodesign Directive), extending its scope beyond energy products to cover nearly all types of products with the exception of cars and defence and security related products. As the Council and European Parliament have both formally approved the agreement, it is now adopted. Once signed by Presidents of the European Parliament and Council, it will be published in the Official Journal of the European Union, enter into force 20 days later, and apply from 24 months after it enters into force.