Today, the European Commission and the United Kingdom have signed the EU-UK Agreement in respect of Gibraltar.
This Agreement, which will enter into provisional application on 15 July 2026, is the result of more than four years of negotiations and completes the legal framework of the relations between the EU and the United Kingdom following the United Kingdom’s withdrawal from the EU.
Gibraltar is not included in the scope of the EU-UK Trade and Cooperation Agreement, signed in 2020 and in force since 2021.
The main objective of this Agreement is to secure the future prosperity of the whole region. It will bring confidence and legal certainty to the lives and well-being of the people of the whole region.
It will promote shared prosperity and closer and more constructive relations between the Gibraltar and Spanish authorities, while fully safeguarding Schengen, the EU’s Single Market and its Customs Union.
Next steps
Following the adoption of the proposal for the signing and provisional application of the EU-UK Agreement by the Council on 1 July, the Agreement was submitted to the European Parliament for its consent, in accordance with the EU treaties.
Once the Parliament’s consent is obtained, the Council can proceed with the adoption of its decision on conclusion of the Agreement.
Background
Following a political agreement on key principles of the EU-UK Agreement in June 2025 between Commissioner Maroš Šefcovic and Spanish Minister for Foreign Affairs, José Manuel Albares with UK Foreign secretary Lammy and Gibraltar Chief Minister Picardo, the Commission adopted its proposals on the signing, provisional application and conclusion of the EU-UK Agreement in respect of Gibraltar in February this year.
Quote(s)
Today marks a truly historic moment. I am proud to sign this Agreement with the United Kingdom on Gibraltar. It has taken four years of patient, complex negotiation, but the outcome speaks for itself: shared prosperity, closer cooperation, and no more barrier for some 15,000 people who cross between Spain and Gibraltar every single day. It is a very special feeling to see a fence come down. I now look forward to the successful implementation of this agreement.
Maroš Šefcovic, Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency
Commission publishes guidelines for sustainable tourism in Natura 2000 areas
Today, the European Commission published new guidelines on how Europe’s Natura 2000 network of protected areas can act as a powerful driver of sustainable tourism, while safeguarding resilient ecosystems that protect habitats and species.
Tourism represents a substantial share of the EU economy, generating around pound 807 billion in 2024 and supporting more than 20 million jobs. Natura 2000 is the largest network of protected areas in the world, bringing together more than 27,000 sites across Member States embodying the rich diversity of Europe’s wildlife and habitats. Within Natura 2000 sites, visitor activity generates between pound 50 and pound 85 billion annually and sustains up to two million full-time equivalent jobs, particularly in rural, coastal and mountainous regions.
Today’s guidelines aim to support site managers and national authorities in striking a balance between economic activities, including tourism, and keeping conservation and restoration goals. This includes, for instance, preventing increased pressures on the habitats and species that make those well-managed protected areas attractive for tourists in the first place. The guidelines provide a framework for the planning and management of Natura 2000 sites. This approach integrates tourism and recreational activities, and also highlights the growing importance of ecotourism, meaning travelling responsibly to natural areas in a way that conserves the environment and benefits local communities.
You can find more information on the new guidelines on Natura 2000 and sustainable tourism online.
(For more information: Anna-Kaisa Itkonen – Tel.: +32 2 295 75 01; Maëlys Dreux – Tel.: +32 2 295 46 73)
Commission adopts new exemptions to EU rules on removability of batteries for safer consumer and industrial products
Today, the European Commission adopted a delegated act with new rules exempting six additional products categories from EU requirements on the removability and replaceability of portable batteries. These products include smartwatches and fitness trackers, electric toys, and explosion-proof industrial equipment. Today’s decision follows a public consultation and thorough discussions with consumer associations, industry stakeholders and Member States.
Under the Batteries Regulation, portable batteries in products sold in the EU must generally be removable and replaceable by consumers – and this general rule remains. Indeed, by making portable batteries easy to remove and replace, products can last longer, and batteries can be recycled more easily. However, exemptions are justified where opening a device could create safety risks or where technical limits make consumer access unrealistic. That includes products that expose children to risks, products that can be exposed to water, devices designed for very compact use, and equipment used in hazardous industrial environments.
Exemptions already apply, mainly for safety reasons, to products such as medical devices and so-called ‘wet appliances’ – for instance electric toothbrushes or water flossers. For these products, and the ones now added to the existing list, batteries only need to be removable and replaceable by independent professionals, not consumers themselves.
Following today’s adoption of the delegated act, the European Parliament and Council have two months to formulate any objections. If they do not, it will enter into force 20 days after its publication in the Official Journal of the EU.
The Commission also adopted an update to the existing guidelines on the removability and replaceability of portable batteries to provide guidance to product manufacturers on how to apply the new derogations.
You can find more information on the new exemptions under the Batteries Regulation online.
(For more information: Anna-Kaisa Itkonen – Tel.: +32 2 295 75 01; Maëlys Dreux – Tel.: +32 2 295 46 73)
Commission adopts simpler rules for EU agri-food promotion policy
Today, the European Commission has adopted simpler rules for EU agri-food promotion policy, reducing administrative and financial requirements for beneficiaries and Member States. The changes will make the programmes easier to implement, and benefit organisations applying for EU funding.
Drawing on 10 years of experience in managing these programmes, the rules also simplify administrative procedures.
Member States and beneficiaries will have more time to conclude contracts and complete necessary procedures. The simplified rules will help in particular smaller beneficiaries in the implementation of their programmes by allowing higher pre-financing, with the maximum rate increased to 30%. Lastly, the Commission reduced the reporting obligations on the impact of simple programmes. The beneficiaries will now be obliged to notify the Commission with only one final notification.
EU promotion policy co-finances programmes that promote EU agri-food products and rewards farmers and agri-food businesses for their efforts to meet the highest quality, safety and environmental standards on a competitive global market. Since 2016, more than 650 campaigns have been co-financed by the European Commission with the common signature – ‘Enjoy, it’s from Europe’, strengthening the reputation of EU agri-food products within the Union and around the world. The promotion policy has also supported the implementation of free trade agreements and helped with the positive evolution of the EU’s agri-food trade balance in agri-food over the past decade.
More information is available online.
(For more information: Louise Bogey – Tel.: +32 2 296 97 76; Katerina Horáková – Tel.: +32 2 299 93 10)
Commission Demography Report highlights the challenges and opportunities of Europe’s demographic transformation
Today, the European Commission published its third report on demographic transformation in the EU, highlighting both the challenges and the opportunities it presents for competitiveness, innovation, social cohesion and sustainable development if addressed early and effectively.
Europe’s population is set to shrink and age, creating challenges for the labour market, healthcare, care systems and public finances. But longer, healthier lives also offer opportunities to boost participation, innovation and growth. Through targeted policies on skills, care, housing and regional development, the EU is helping Member States mitigate the effects of demographic change.
European population declining, but living longer than ever
The report, drawn up by the Joint Research Centre, confirms that Europe’s population is currently at its peak; with 450.6 million people today, the EU’s population is projected to be around 445 million by 2050, and 398.8 million by 2100, representing an overall decrease of about 11.7%, to a level experienced in the 1970s.
At the same time, Europeans are living longer than ever before, with life expectancy at birth reaching 81.5 years in 2024, reflecting progress in healthcare, living standards and social conditions. By 2050, nearly one in three EU residents will be 65 or older – compared to one in five today, while life expectancy could exceed 90 years for women and 86 for men by 2100. A child born in the EU in 2023 could expect to live a life without major illness until 75.3 years.
These trends present significant challenges, from labour shortages and strained public budgets, to pressure on care systems, education and training systems and regional cohesion. At the same time, these shifts also bring opportunities. One example is the growing longevity economy which is unlocking new markets for products, services and innovations designed specifically for older citizens, creating new avenues for economic growth and job creation. This can drive innovation in healthcare, technology and financial services.
EU population ageing reshapes workforce and care needs
The report notes that the EU is undergoing a major demographic shift that is reshaping its labour market, requiring to boost participation and productivity. Around 20% of working-age people are outside the labour market, with a 10% gender gap in employment, while 8 million young people are not in education, employment or training. At the same time, employment among people aged 55-64 is rising compared with few decades ago. The EU is supporting these trends by promoting women’s participation, helping young people gain skills, enabling older workers to stay active if they choose, and boosting productivity through innovation and AI.
Boosting productivity and unlocking untapped talent will be key to addressing the impact of a shrinking workforce, helping sustain economic growth and strengthen public finances.
The report also shows that birth rates have fallen, while European society gets older, which means the workforce age population is decreasing. Skilled migration is already playing an important role in helping address labour shortages. By attracting talent from outside the EU, skilled migration can support key sectors, strengthen innovation, and help offset the effects of an ageing population. While it can ease demographic pressures, the priority should remain to upskill and reskill people already in the EU.
The shift to a longevity society also increases demand for healthcare and long-term care, with the number of people needing support expected to rise from 36 to 48 million by 2070 and the share of people aged 80+ doubling. While this brings fiscal challenges, it also drives innovation and more efficient care systems.
EU in action to turn demographic change into opportunity
The EU is helping Member States respond to demographic change through a broad set of policies that support people at every stage of life. This latest report provides evidence for the policy response.
The Demography Toolbox, adopted by the Commission in October 2023 and welcomed by all Member States, provides a set of EU policy tools to help national, regional and local authorities integrate demographic trends into policymaking and with coordinated actions across the EU.
Building on this foundation, the Commission has pursued targeted initiatives across key areas:
European Affordable Housing Plan: making quality, sustainable housing more accessible, especially for young people and vulnerable households.
Intergenerational Fairness Strategy: strengthening solidarity between generations, and ensuring today’s policy create opportunities for the future.
EU Anti-Poverty Strategy: reducing poverty across different age groups, by recognising challenges faced by different generations.
Union of Skills strategy: investing in lifelong learning, vocational training and quality jobs to build a competitive workforce.
European Care Strategy: improving access to affordable, high-quality care services across the EU, through programmes like EU4Health (pound 5.3 billion, 2021-2027) and the European Health Data Space.
Long-term vision for rural areas: addressing challenges arising from population decline, ageing and outmigration in rural regions.
Harnessing Talent initiative: focusing on EU regions facing a working-age population decline in combination with a low and stagnating share of people with tertiary education, it allows for tailor-made solutions.
The Commission’s proposal for the next Multi-Annual Financial Framework (2028-2034) includes addressing demographic change as an objective of National and Regional Partnership Plans.
For More Information
Report page
The impact of demographic change in Europe – European Commission
Demography Toolbox
Joint Research Centre
Quote(s)
Europe’s population is changing, and Europe’s policies must change with it. We are living longer, healthier lives than ever before – one of our greatest achievements. But demographic change is reshaping our societies, our economies and our labour markets, and we must act now to turn this transformation into an opportunity. This report provides the evidence to help Member States prepare for the future. Demography is no longer a standalone issue – it must be part of every major policy decision. By investing in skills, care, talent, productivity and regional cohesion, we can strengthen Europe’s competitiveness, resilience and wellbeing for decades to come.
Dubravka Šuica, Commissioner for the Mediterranean
Review finds Foreign Subsidies Regulation fit for purpose, Commission considers targeted changes
The European Commission’s first review of the Foreign Subsidies Regulation (FSR) has found that the regulation is fit for purpose to address distortions in the internal market caused by foreign subsidies. Its objective of maintaining a level playing field in the internal market is widely acknowledged and remains relevant.
The review of the first three years of FSR enforcement shows the instrument is working well in practice. The procedures for reviewing concentrations and foreign financial contributions in public procurement procedures are important components of the FSR framework, enabling the Commission to identify and address potentially distortive foreign subsidies before a merger is concluded or a high-value public contract is awarded. The Commission’s ‘ex officio’ powers provide an effective complementary framework to investigate and address potential distortive foreign subsidies in the internal market.
At the same time, the review shows certain concerns about complexity and administrative burden, so the Commission is looking into ways to simplify where possible.
Stakeholders confirm FSR’s relevance while calling for simplification
Feedback from most stakeholders through targeted consultations underlines that the FSR framework is overall fit for purpose.
In concentration cases, replies to consultations and early enforcement practice highlight the value of prenotification engagements, which improve clarity and efficiency in the notification process. Stakeholders have also welcomed the available exceptions to reporting obligations and the possibility of requesting waivers for certain information requirements.
In public procurement cases, the Commission successfully reviewed over 5,000 submissions, ensuring public authorities could secure essential goods and services without delays. While formal prenotifications remained low, the Commission proactively managed numerous requests from companies and public authorities to guarantee smooth and efficient procedures.
In ex officio cases, the recent opening of in-depth investigations in two cases, one concerning threat detection systems and the other in the wind sector, offers further insight into the Commission’s approach when assessing potentially distortive foreign subsidies.
At the same time, the review highlighted some areas of concern:
the administrative burden in the collection and reporting of data on foreign financial contributions (FFC);
the length and complexity of certain procedures linked to the investigations;
the uncertainty over the Commission’s call-in powers for below-threshold concentrations, despite their legitimate aim; and
the need for enhanced clarity regarding certain reporting obligations, as well as greater transparency in enforcement practice.
Commission to propose adjustments to FSR framework
Considering these findings, the Commission will launch initiatives to make some targeted adjustments to the FSR procedural framework. These adjustments may include, in particular:
Under the concentration chapter:
Increasing the turnover notification threshold through a delegated act;
Introducing a simplified notification possibility for specific cases or FFCs;
Moderately increasing the reporting thresholds for FFCs;
Introducing additional exemptions from reporting requirements for FFCs not categorised as foreign subsidies most likely to distort the internal market.
Under the public procurement chapter:
Introducing simplifications and clarifications in the forms used for notifications and declarations;
Revising the framework for companies to request waivers to limit the disclosure of information of certain FFCs;
Clarifying and limiting the reporting of FFCs not categorised as foreign subsidies most likely to distort the internal market;
Clarifying the rights and obligations of companies and the contracting authority, including for processing of confidential information, in the context of access to files.
These adjustments would reduce the administrative burden related to the number of submissions, streamline reporting requirements and ensure a focus on cases that are more likely to raise concerns, while preserving the effectiveness of the FSR.
The Commission has started work on the targeted adjustments. The draft targeted adjustments will be published in the autumn, giving stakeholders the possibility to submit comments. Based on the feedback and any additional evidence gathered, the Commission will adopt the targeted adjustments in 2027.
Background
Under Article 52(2) of the FSR, the Commission is obliged to review its practice of implementing and enforcing the rules every three years, and present a report to the European Parliament and the Council. This is to ensure that the regulation meets its objectives and remains effective in preventing distortions in the internal market caused by foreign subsidies.
The present review is based on a comprehensive analysis, including the assessment of 103 contributions received from two consultations, and on an independent study conducted by an external party. This input has helped the Commission assess the impact of the FSR and identify targeted adjustments to its framework.
For more information
Report on the first review of the FSR
Staff working document
Q and A on the first FSR review
Consultation on the first review of the FSR
FSR Review Study
Quote(s)
The first three years of implementation confirm that the FSR is delivering on its objectives. It helps protect the integrity of the internal market and ensures that Europe’s competitiveness and economic security are not undermined by distortive foreign subsidies. Europe remains open to investment, but openness requires fair competition, and we will continue to ensure that the framework remains robust so that it delivers effective enforcement and legal certainty alike.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition
The review, drawing on three years of implementation, confirms that the FSR is fulfilling its promise: it is safeguarding the integrity of the internal market from distortions caused by foreign subsidies and preserving a genuine level playing field for businesses across the Union. This is particularly important in public procurement, where European taxpayers must be confident that public contracts are awarded through fair and undistorted competition. Europe remains open to investment, but openness must go hand in hand with fairness. Moving forward, we will continue listening to calls for simplification and strengthening awareness, while ensuring that the FSR remains a strong and effective shield for our market.
Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy
Commission greenlights Cyprus’s sixth payment request for pound 120 million under NextGenerationEU
The Commission positively assessed Cyprus’s sixth payment request under the Recovery and Resilience Facility, the centrepiece of NextGenerationEU.
The reforms and investments tied to this payment request will drive positive change for citizens and businesses in Cyprus, notably in the areas of health, business environment, public administration, renewable energy and education.
Following its assessment of the payment request, the Commission found that Cyprus has satisfactorily completed 22 milestones and 5 targets set out in the Council Implementing Decision.
Flagship measures include:
Establishing a new school evaluation system: laying the groundwork for improving the quality of education and enhancing student learning outcomes.
Setting up a cross-border patient health data exchange system: enabling the use of e-prescriptions, e-dispensation and patient summaries.
Introducing flexible working arrangements in the public sector: through the entry into force of the relevant legal acts.
Expanding the electronic services of the building permit e-system: with additional functionalities, including e-signature and e-consultation, improving the efficiency and digitalisation of planning and building permit procedures.
Expanding and connecting the renewable energy and smart grids testing infrastructure at the University of Cyprus to the existing grid.
Next steps
Cyprus submitted its sixth payment request on 17 December 2025. The Commission concluded that Cyprus met the milestones and targets needed for this payment and shared its preliminary assessment of the milestones and targets that it considers satisfactorily fulfilled to the Economic and Financial Committee (EFC).
The EFC has now four weeks to deliver its opinion. The payment to Cyprus can take place following the EFC’s positive opinion and the adoption of a payment decision by the Commission.
Background
The Cyprus’ recovery and resilience plan includes a wide range of investment and reform measures. The plan will be financed by pound 1.02 billion in grants.
Cyprus’ recovery and resilience plan has a strong emphasis on investments in the areas of green transition, digital transformation, health, education, social resilience, economic competitiveness and innovation.
Key reforms and investments focus on improving energy efficiency in buildings, expanding renewable energy generation and energy storage, promoting sustainable transport, including electric mobility, digitalising public administration and government services, expanding high-speed broadband infrastructure, modernising healthcare infrastructure and services and improving the efficiency of the justice system.
This payment request would bring the funds paid out to Cyprus under the RRF to pound 683 million (including the pound 131 million in pre-financing, received in September 2021, and pound 21 million pre-payment under REPowerEU, received in January 2024). This amount corresponds to 67% of all funds in the Cypriot plan, with 62% of all milestones and targets in the plan fulfilled.
With a view to the closure of the Facility at the end of 2026, Member States must implement all outstanding milestones and targets by August 2026 and submit last payment requests by the end of September.
For more information
Commission’s preliminary assessment of Cyprus’s sixth payment request
Cyprus’ recovery and resilience plan
Plan overview, full plan and all other related documents
Recovery and Resilience Facility
Recovery and Resilience Facility project map
Recovery and Resilience Scoreboard
Recovery and Resilience Facility Regulation
Recovery and Resilience payment claim process
The EU as a borrower
Joint Statement of the European Union and the United Kingdom on United Kingdom participation under the Ukraine Support Loan
The European Union and the United Kingdom stand firm in their support of Ukraine and our commitment to support Ukraine as long as it takes to bring Russia’s illegal war of aggression to an end and secure a comprehensive, just and lasting peace.
Today, we welcome the signature of a contractual agreement marking the end of negotiations on the UK’s participation under the pound 90 billion Ukraine Support Loan.
This is an important step towards the participation of the UK allowing Ukraine to procure, under the Ukraine Support Loan, from a larger pool of defence manufacturers, ensuring they have the capabilities to withstand Russian aggression. The UK will provide a fair and proportionate contribution to the costs arising from borrowing, commensurate with the value of contracts awarded to UK companies.
The loan is providing Ukraine with the predictable financial support it needs, both for budget support and defence spending, over the next two years. pound 7.1 billion was disbursed in June with pound 3.2 billion for budget and nearly pound 3.9 billion for defence, with a further defence disbursement expected this week.
The European Union and the United Kingdom jointly recognise today’s agreement as a demonstration of their shared commitment to Ukraine, and of the closely interconnected and interdependent nature of the defence industrial bases of the Union and of the UK.
We continue to work closely with international partners to strengthen Ukraine’s resilience, support its economy, and help meet its immediate and longer-term needs.
European security is strongest when allies stand together. The Ukraine Support Loan is also a vital investment in European security – a strong, sovereign and secure Ukraine is essential to the security and stability of Europe as a whole, and to deterring future aggression.