In light of the geopolitical and global economic upheavals, the EU is increasingly focusing on the issues of sovereignty and economic security. A revision of the rules on foreign direct investment screening was recently approved. In addition, the Industrial Accelerator Act proposed by the Commission sets out conditions for foreign investment in certain sectors. AK welcomes these developments but sees scope for further improvement.

On 10 December 2025, the European Commission presented the European Grids Package. The package includes proposals to improve the governance of cross-border energy infrastructure planning, speed up permitting procedures and ensure more effective mechanisms to share the costs and benefits of cross-border projects.

While the European Union and Member States are strengthening their defence capabilities, concerns are growing over the social implications of increased security spending. This should not come at the expense of social expenditure, emphasized Claes-Mikael Ståhl in an AK EUROPA interview. Instead, security spending should be tied to social conditionalities, trade unions should be involved in decision-making, and a broad understanding of security should be developed.

After a prolonged delay, the European Commission unveiled its proposal for the ‘Industrial Accelerator Act’ (IAA) on 4 March 2026. The proposed legislation is designed specifically to boost demand for low-carbon technologies and for products manufactured in Europe. The aim is to ensure resilient supply chains in strategic sectors, strengthen European industry and safeguard jobs in the EU. Although an effective industrial policy strategy is long overdue, AK warns that the social dimension is being sidelined.

As geopolitical tensions rise, the European Union and Member States are taking steps towards strengthening their defence. Alongside other important questions, this also raises concerns about trade-offs between defence spending and other areas, such as social spending, at both EU and national levels. AK EUROPA spoke with Claes-Mikael Ståhl, Deputy General Secretary of the European Trade Union Confederation (ETUC), about current EU defence policy from a workers’ perspective.

With its proposal for the Multiannual Financial Framework 2028–2034, the European Commission launched the important yet controversial debate on the EU budget in mid-2025. The focus is on increased investment in competitiveness, security and defence. However, the European Parliament considers the draft to be insufficiently ambitious and is calling for a larger budget. In particular, the planned consolidation of funding programmes and cuts in traditional policy areas have met with criticism.

China is rapidly driving forward developments in the fields of artificial intelligence and robotics. Within this framework, the government's development initiatives emphasize strategic planning, targeted assistance, and systematic execution.

Since the new Middle East conflict and the Hormuz Strait blockade, fossil fuel prices in the EU have surged. The EU Commission is now responding with the ‘AccelerateEU’ initiative. Alongside short-term measures, the focus is once again on accelerating the energy transition.

As part of the EU’s current deregulation agenda, there is a risk that efforts toward sustainable finance will be undermined. Financial market stability could also be jeopardized. Meanwhile, the financial lobby is pushing to lower key regulations, such as the capital requirements for banks. We spoke with Isabelle Buscke about these and other challenges.

Due to a shortage of affordable and sustainable housing, Europe is facing a housing crisis. Over the past ten years, rents in the EU have risen by more than 20 per cent on average, whilst residential property prices have increased by more than 60 per cent. In view of this precarious situation, the EU has taken action: shortly before Christmas, the Commission presented its plan for affordable housing, and in mid-March the final report of the European Parliament’s Special Committee on the Housing Crisis was adopted in plenary.