On 26 June 2025, the European Parliament’s Committee on Employment and Social Affairs published a draft report recommending that the European Commission initiate the legislative process for an EU directive on algorithmic management in the workplace. Dan Cooper, partner, Antonio Michaelides, of counsel, Sam Jungyun Choi and Matthieu Coget, associates, and Matsumoto Ryoko, visiting lawyer, of Covington & Burling LLP, review the report’s findings.

The European Parliament’s Environment, Public Health and Food Safety Committee (ENVI) has adopted its position on  the European Commission’s proposal to amend the EU Climate Law by introducing a binding 2040 target to reduce net greenhouse gas emissions by 90% compared to 1990 levels, aiming to ensure progress towards climate neutrality by 2050. The Committee supports increased flexibility for member states, including the use of up to 5% points of international carbon credits from 2036 and domestic permanent carbon removals to offset hard-to-abate emissions within the EU Emissions Trading System. It also backs the postponement of ETS2 implementation from 2027–28. Members of the European Parliament (MEPs) have called for biennial progress reviews by the Commission, which may lead to adjustments to the 2040 target or additional measures to safeguard EU competitiveness and social cohesion.

The European Parliament's Environment, Public Health and Food Safety Committee (ENVI) will vote on 4 November 2025 on its opinion regarding the Commission's Critical Medicines Act proposal adopted on 11 March 2025. The Act aims to strengthen EU manufacturing capacity for critical medicinal products by facilitating company investments and making supply chains more resilient. ENVI's opinion focuses on permit-granting procedures for environmental assessments and environmental legislation compliance, with 119 amendments tabled to the draft opinion considered on 4 September 2025.

The European Parliament’s Internal Market and Consumer Protection Committee (IMCO) has invited a Temu representative to a discussion on 16 April 2026 as part of increased scrutiny of major online marketplaces over the sale of unsafe or illegal products in the EU. The invitation follows earlier appearances by Shein and AliExpress before IMCO. Members of the European Parliament are also examining the European Commission’s enforcement of rules on product safety, consumer protection and digital platforms within the EU single market. They have called for stronger action against illegal and unsafe goods entering the EU, including those sold through large online platforms, as well as improved co-operation between authorities, updates to customs rules and ongoing engagement with platforms. IMCO intends to continue holding regular scrutiny sessions on this issue with the Commission and stakeholders.

The European Parliament’s Legal Affairs Committee (JURI) has adopted its position on the European Commission’s omnibus proposal to streamline requirements under the EU Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CS3D).

The European Parliament's Legal Affairs Committee (JURI) have adopted proposals that mandate transparency and fair remuneration for copyrighted work used by generative artificial intelligence (AI) systems.

The European Parliament has adopted its negotiating position on proposals to simplify EU sustainability reporting and due diligence requirements, streamline qualitative disclosures, and make sector-specific reporting voluntary. Under the proposals, smaller companies would not be required to provide information to larger business partners unless identified as posing a specific risk.

The European Parliament has adopted the 2026 EU budget, which totals €192.8bn in commitments and €190.1bn in payments. This follows an agreement with member states that secured an additional €372.7m in funding beyond the European Commission's initial proposal. The budget prioritises competitiveness, research, and security, and features increased allocations for key programmes, including Horizon Europe, transport and energy networks, and humanitarian aid.

The European Parliament has adopted guidelines for the 2027 EU budget with 389 votes in favour, 191 against and 75 abstentions. The priorities emphasise social cohesion, competitiveness and security, calling for additional investment in defence, critical infrastructure, housing and healthcare. MEPs highlighted cohesion policy as a key investment tool and requested increased support for small and medium enterprises, startups, civil society organisations and independent media. The guidelines reaffirm the EU's commitment to climate neutrality by 2050 and call for strengthened security and defence capabilities through common investment in research and dual-use technologies. MEPs warned that rising borrowing costs linked to the Next Generation EU recovery instrument must not compromise established EU programmes and stressed the need for new revenue sources. The guidelines also reminded EU governments of their agreement to provide Ukraine with a €90 billion loan and emphasised that rule-of-law conditionality must apply to all EU funds.

The European Parliament has adopted recommendations, by a vote of 460 to 71, calling for fair remuneration and greater transparency for copyrighted material used in generative artificial intelligence (AI) training. The recommendations assert that EU copyright law should apply to all generative AI systems offered on the EU market, regardless of where the training occurs. Additionally, AI providers would be required to supply detailed, itemised lists of the copyrighted works used, along with comprehensive records of web crawling activities.

The European Parliament adopted amendments to the EU Common Agricultural Policy (CAP), with 576 votes in favour, 62 against and 15 abstentions, aimed at alleviating the impact of rising fertiliser prices on EU farmers. The measures, fast-tracked from a European Commission proposal, allow farmers to receive liquidity support of up to 80% of additional fertiliser costs incurred. Advances on direct payments will increase from 70% up to 75% and may be paid immediately upon application rather than after 16 October as current rules require. Member States will also gain flexibility to adjust direct payment budgets for the following year. The amended CAP now requires formal Council adoption and publication in the Official Journal before entering into force the day after publication.

The European Parliament has adopted new Common Agricultural Policy (CAP) rules by 629 votes to 17, introducing simplified compliance requirements for EU farmers. The measures, based on a provisional agreement with the Council, increase flexibility and financial support by raising annual aid for small farms to €3,000 and extending the one-off business development payment to €75,000. The rules maintain arable land status from 1 January 2026 without requiring ploughing, and organic farms will automatically meet Good Agricultural and Environmental Condition standards for certified or converting areas, subject to limited national restrictions. Oversight is streamlined through a single annual on-the-spot inspection. The agreement awaits formal Council approval and will take effect the day after publication in the Official Journal.