European Union

The debt situation in developing countries (low- and middle-income countries) has come under immense stress. The International Monetary Fund (IMF) and World Bank have estimated that the proportion of low-income countries (LICs) that are at high risk of debt distress or are already in debt distress has increased from 30 per cent in 2015 to more than 50 per cent in 2024 (IMF, 2024). About 25 per cent of middle-income countries (MICs) are also at risk. There are many reasons for this, including the Covid-19 pandemic and the climate crisis. However, some countries have taken on excessive debt in the good times, in some cases on unfavourable terms. The rise in interest rates over the last two years has further increased the debt burden and made refinancing more difficult. Despite this mounting debt crisis, recent debt restructurings have been slow to materialise and has so far been limlited to very few countries.

Digital technologies are used in arguably all sectors of the economy and the private sphere. They connect people all over the world, alter production structures and facilitate new business models. As the digitalisation of the economy has the potential to profoundly change global economic interactions, it is likely to also change distributional outcomes. This chapter analyses possible distributional consequences of the globalised digital economy along different dimensions, including intra- and intergenerational socioeconomic distributions and the distribution of political control. We discuss the resulting national and international policy options to address potentially undesired distributional consequences. Specifically, we offer empirical predictions that can be evaluated against normative theories of justice, therby contributing to the analysisof justice in global economic governance. Our conjectures build on the application of basic economic theory to what we consider characteristic, specific features of the digital economy.

The disruptions to the earth’s system have reached an unprecedented scale, posing enormous challenges around the globe. The world has entered the Anthropocene, a new geological age in which human activity is recognised as the dominant force driving the negative changes in climate and environment, and the very earth system upon which our existence depends. In such an era of planet-wide transformation, some scholars have argued for a new model for planet-wide environmental politics: earth system governance (Biermann, 2007). Earth system governance is broader than traditional environmental policy and emphasises the complexities of integrated socio-ecological systems (for a focus on natual resources see Armstrong, Chapter 21 in this volume). Key concerns of earth system governance are broad and often include interdependent challenges such as land use change, food system disruptions, climate change, environment-induced migration, species extinction and air pollution.[...]. This chapter expands with three main goals: first, we discuss how the global economic system affects the allocation of environmental benefits and burdens among people and countries around the world. Second, we analyse varying approaches to earth system governance and their distinctive proposals for an effective and just earth system governance. We conclude by laying out our policy proposals for earch system governance in this field, focusin on redistribution in a pro-poor manner.

 

 

 

Offers to buy and distribute the contraceptives in crisis-hit countries were ignored with Washington paying to have them burned instead

The country’s data protection authorities are revolting against a draft law to implement the EU's AI Act but the German government isn't backing down

Des mudstones inhabituels trouvés sur la planète rouge pourraient être associés à d'anciens microbes martiens.

The gunman fired a single, fatal shot killing Kirk – a 31-year-old who rallied youth support for Trump – during an appearance at a Utah university on Wednesday

US Energy Secretary Chris Wright tells Euractiv that $750 billion of EU purchases of American energy is just the start

Friday's rare summoning was the strongest in a chorus of condemnations as anger boils in the Gulf over Israel's strike on a region long shielded from Middle Eastern conflicts

Because of a legal loophole, Sánchez’s ban is unlikely to stop the flow of US weapons to Israel through southern Spain

Written by Clare Ferguson and Katarzyna Sochacka.

The highlight of the September 2025 session was the debate on the State of the Union, following Ursula von der Leyen’s first address under her current mandate as President of the European Commission. Another important debate took place to express Parliament’s solidarity with Poland following Russia’s deliberate violation of Polish airspace, added to the agenda in reaction to drone attacks the previous day.

Maia Sandu, President of the Republic of Moldova addressed Parliament in a formal sitting. On external policy, Members debated: EU action to ensure security guarantees and a just peace for Ukraine; the situation in Gaza; strengthening Moldova’s resilience against Russian hybrid threats and malign interference; the violence against protesters in Serbia; and the situation in Colombia following recent terrorist attacks.

Among other debates were: implementation of the recent EU-United States trade deal; the need for a strong European Democracy Shield to enhance democracy, protect the EU from foreign interference and hybrid threats, and protect electoral processes in the EU; serious threats to aviation and maritime transport from global navigation satellite system interference; the rule of law and management of EU funds in Slovakia; and the devastating wildfires in southern Europe and summer of heatwaves in the EU.

Cohesion policy

Members held a joint debate and later adopted three reports from Parliament’s Committee on Regional Development (REGI) calling for increased EU cohesion policy support for citizens. The first proposed strengthened cohesion policy support for regions most affected by the need to transition towards a climate-neutral economy. Acknowledging that geopolitical shifts are disrupting the economy, the committee recommends prioritising just transition funding for areas where traditional industries are disappearing, and calls for continued and increased cohesion policy funding for a just transition, beyond 2027. It also proposed simplifying access to cohesion funding, establishing special economic zones, and greater investment in education and training. The second REGI report recommended increased and more flexible cohesion policy funding for housing, beyond the current focus on social housing and energy efficiency. As housing availability has become a major issue throughout the EU, the committee also suggested cohesion policy funding for housing prioritises increased access to housing, through innovative approaches that increase affordability. Finally, the third report considered plans to simplify EU cohesion funds more generally, where the REGI committee sought assurance that modernisation to improve implementation can be carried out without sacrificing the current focus on long-term investment and place-based rationale. The report reiterated the importance of local involvement in programming, delivering and monitoring projects, and recommended simplifying cohesion funds by earmarking resources for integrated territorial development tools, direct funding for cities, and eliminating duplication of national oversight.

Future of agriculture and the post-2027 CAP

In line with the EU’s simplification priority, several files on the agenda focused on streamlining EU policy and cutting red tape. One such initiative responded to the need to simplify EU funding, as well as to widespread farmer protests, by proposing new rules for the common agricultural policy (CAP) from 2028. Members adopted a report from the Committee on Agriculture and Rural Development (AGRI) that opposes the Commission’s plans to include agricultural funding in a single fund covering structural and cohesion policy, fisheries, security and defence. The AGRI committee suggested increasing funding for agriculture in the post-2027 CAP budget instead, and to reinforce direct income support for farmers, regardless of their size, as well as increasing support for smaller and family-run farms.

Public procurement

National, regional or local public bodies spend around €2 trillion of citizens’ contributions per year in the EU through the public procurement process. Open public procurement in a competitive market should deliver good quality works or goods and services that represent value for money. However, complexity may have contributed to a decline in competitive procedures where EU rules apply to contracts above a certain threshold. Members debated a report from Parliament’s Internal Market and Consumer Protection Committee (IMCO), which calls on the Commission to simplify the procedures to make it easier for companies to bid for such contracts. The IMCO report also highlights the need to uphold social and environmental standards and support local economic development through public procurement rules.

2023 and 2024 Commission reports on Ukraine

Following a statement by the High Representative of the Union for Foreign Affairs and Security Policy/Vice-President of the Commission on EU action to ensure security guarantees and just peace for Ukraine, Members also debated and adopted a Committee on Foreign Affairs (AFET) report on the Commission’s 2023 and 2024 reports on Ukraine. The committee noted Ukraine’s consistent commitment to its European path, despite Russia’s war of aggression, and stressed the need for a peaceful solution that respects the will of the Ukrainian people. It also called for an EU contribution to robust security guarantees for Ukraine, and recommended opening negotiating clusters. Nevertheless, the AFET committee also emphasised that Ukraine needs to step up its fight against corruption, including by granting greater independence to the Specialised Anti-Corruption Prosecutor’s Office.

Revising rules on food and textile waste

In the EU, we waste 60 million tonnes of food, and 12.6 million tonnes of textiles, every year. To protect the environment and ensure the sustainable use of our resources, the Commission has proposed to update the Waste Framework Directive. Members adopted a provisional agreement, reached between Committee on the Environment, Public Health and Food Safety (ENVI) and Council negotiators earlier this year. The agreed text introduces binding food waste reduction targets, where Parliament succeeded in ensuring the rules will facilitate donations of unsold food. The revised Waste Framework Directive also includes new, harmonised extended producer responsibility rules covering fast fashion practices for all producers – even if not based in the EU – except, on Parliament’s insistence, those involved in reuse and recycling.

Taxation of large digital platforms in light of international developments

On behalf of the Economic Affairs (ECON) Committee, Members asked questions of the Commission regarding the fair taxation of large digital platforms. As international corporate tax rules were comprehensively overhauled under the umbrella of the Organisation for Economic Co-operation and Development in 2021, Members asked the Commission if a unilateral EU-level digital tax could be considered in the absence of an international agreement on taxation of digital platforms. Currently, under Pillar One, countries where customers or users are located are granted the right to tax a share of those profits, irrespective of the company’s physical presence. Pillar Two establishes a 15 % minimum effective corporate tax rate for multinational companies. While Pillar Two is in force in the EU since 2024, Pillar One has yet to be enforced, as the US argues it disproportionately targets American firms.

Opening of trilogue negotiations

One decision to enter into interinstitutional negotiations from the AGRI committee, on unfair trading practices in business-to-business relationships in the food supply chain: cooperation among enforcement authorities, was approved by a vote.

Another, from the Committee on Fisheries (PECH) on the subject of a General Fisheries Commission for the Mediterranean, was approved without vote.

Read this ‘at a glance’ note on ‘Plenary round-up – July 2025‘ in the Think Tank pages of the European Parliament.

Delegations

Source : © European Union, 2025 - EP

Recent studies suggest Berlin’s €1 trillion defence and infrastructure splurge is struggling to revive the EU’s largest economy

Belgium is a major importer of kangaroo products

In today's edition: Germany key to CSAM file, GPT-5 vs AI Act, France, France goes after TikTok

Could the EU get off Russian gas sooner than 2028? 'I think it could,' the US energy secretary said

The country is already among Europe's top defence spenders by percentage of GDP, with 2.37% in 2024

Microsoft will now offer its Office 365 suite without the Teams app

"We will hold substantial talks today about our shared security, Ukraine's EU and NATO accession, and pressure on Moscow", said Radosław Sikorski

In today's edition: Parliament debates, life expectancy, deadly fungus