JUNE 2025, BRUSSELS

Welcome to the June-July 2025 edition of our EU Affairs Newsletter. This month, we bring you a comprehensive update that mixes key developments from the EU energy, climate and digital policy space with targeted updates on the European legislative files CEC is actively monitoring in your interest as managers and social partners.

This edition covers:

  • The latest EU policy news relevant to our four strategic priorities (AI & digitalisation, innovation & competitiveness, diversity/equality/equity, climate & sustainable leadership)
  • Progress on key legislative files: European Works Councils, Traineeships Directive, Quality Jobs Roadmap, and the Pact for Social Dialogue

Strategic Priorities – Latest EU Developments

Innovation & Competitiveness

  • New EU State Aid Framework to Boost Industrial Flexibility
    The Commission unveiled a revised state aid regime (Cisaf) to support energy-intensive industries with up to 50% cost coverage for electricity, provided they invest in demand-side flexibility. This is a critical lever for companies to manage decarbonisation and competitiveness simultaneously.
    Implication for managers: strategic leadership is key to implement these transformations and make best use of public incentives.

 

  • EU Circular Economy Dialogue (2 July)
    A closed-door strategic meeting with 25 key stakeholders will help prepare the EU’s next major legislation on circular economy. The law is expected in late 2026.
    For CEC members, this is a signal to strengthen circular thinking in business models and management systems.

 

  • Green Claims Directive Faces Political Block
    The Commission has threatened to withdraw its proposal due to lack of political agreement. The directive aimed to tackle greenwashing and ensure environmental claims are substantiated.
    Transparency and sustainability leadership are core to managers’ communication responsibilities.

AI & Digitalisation

  • Sweden Pushes for Delay of the AI Act
    Ahead of the June European Council, Sweden called for postponing parts of the AI Act, arguing that the absence of common standards risks stifling innovation.
    Managers will need support and training to handle AI responsibly and in compliance with future EU rules.

 

  • Google’s AI Tool Investigated Under DMA
    The Commission is reviewing Google’s AI-generated summaries under the Digital Markets Act (DMA), suspecting it may unfairly reduce visibility for competing services.
    This raises the stakes for fair competition in digital markets where many CEC members operate.

 

  • Start-ups Warn Against Weakening the DMA
    European start-up associations urge the Commission not to dilute the DMA under US pressure. They stress the importance of digital sovereignty.
    A fair digital environment is essential for leadership and entrepreneurial activity.

Climate & Sustainable Leadership

  • EU 2040 Climate Target: France Calls for High-Level Discussion
    France has requested that EU leaders debate the 90% emissions reduction target proposed by the Commission. Concerns include the competitiveness impact and lack of transition support.
    Executives must anticipate climate policy scenarios when planning for the next 15 years.

 

  • Carbon Market Reform (ETS2) Under Scrutiny
    Sixteen Member States have proposed changes to the carbon market covering buildings and transport, aiming to soften social impacts and improve predictability.
    Managers will need to align corporate strategies with evolving EU carbon pricing instruments.

 

  • Parliament Supports Gas Phase-Out by 2028
    A broad majority in the Parliament’s ITRE Committee supports the ban on Russian gas imports and the dismantling of Nord Stream. The vote in plenary is scheduled for 8 July.
    Energy diversification and risk management remain central to sustainable industrial leadership.

European EU flags in front of the Berlaymont building, headquarters of the European commission in Brussels

Key Legislative Updates

European Works Councils (EWC) Directive Revision

On 20 May 2025, Parliament and Council reached a provisional political agreement on the EWC revision. Final formal approval is still pending.

  • Clarifies “transnational matters” and strengthens consultation rights
  • Removes EWC exemptions; existing agreements must be renegotiated
  • Introduces access to justice and financial penalties (details remain vague in Council version)
  • Gender balance target of 40% preserved, but subject to national rules

CEC supports a stronger EWC framework to ensure managers have a voice in transnational company decisions, with legal clarity and operational capacity.

Traineeships Directive & Quality Framework

The Parliament’s EMPL Committee is expected to vote in June 2025 on the report led by Alicia Homs Ginel (S&D). The report strengthens definitions, training requirements, and non-discrimination rules.

  • Still no explicit ban on unpaid internships
  • Emphasises fair compensation, social protection and non-exploitative practices
  • National inspections to identify misuse and abusive practices

CEC advocates for high-quality, fairly compensated internships that contribute to long-term talent development.

Quality Jobs Roadmap

  • The Commission is currently consulting social partners (CEC included)
  • Focus areas: digital transformation, working conditions, just transition, social dialogue
  • Final roadmap expected by Q4 2025

CEC insists that quality work must include recognition of managerial responsibilities, investment in lifelong learning, and a balanced approach to flexibility.

Pact for Social Dialogue – Update from the 25 June Meeting

  • 19 hearings held but lack of follow-through criticised
  • Still no Social Dialogue Envoy appointed
  • No operational alert mechanism as foreseen
  • Structural reforms promised now under pressure to be delivered

CEC continues to push for more robust and responsive social dialogue structures where managerial voices are fully represented.

We hope this integrated update supports your work and dialogue with national institutions and social partners. As always, we remain at your disposal for further information or joint initiatives.

Stay Engaged

Feel free to reach out if you would like more detailed information on any agenda item or wish to connect with key stakeholders in the European Parliament, Commission, or Council.

We are here to support your interests and ensure your voice is heard in the European policy arena.