Introduction

At the end of this week (6-9 June), millions of citizens across the European Union (EU) will cast their vote to elect a total of 720 representatives to the European Parliament.

As the EU gears up for its upcoming elections, stakeholders across sectors are closely monitoring potential shifts in policy and governance. With an anticipated right-ward shift of the European Parliament and a change in political priorities towards increasing the EU’s defence capabilities and boosting industrial competitiveness of the EU, these elections will be particularly significant, with implications that could reverberate throughout the EU's political landscape and beyond. For our clients operating internationally, understanding the expected policy changes and their potential impact on their industry is critical.

In this snapshot we will first be providing a Brief Explainer on the Parliament and its links with the Executive (i.e. European Commission), which will be followed by key observations in the areas of life sciences, agro-food, the environment, data protection, trade and competition, to keep in mind as we await the outcome of the elections.

European Elections 2024 – Brief explainer

The European elections - the second largest democratic elections in the world - take place every five years and determine who will be the 720 Members of the European Parliament (MEPs) representing EU citizens, making decisions on various policies, legislation, and budgetary matters affecting the entire European Union. Seats are allocated to EU Member States roughly in proportion to their population.

(Source: European Parliament)

The Political Groups

While elections are contested by national political parties, once MEPs are elected, they typically align with, and become part of, a pan-EU political group in the European Parliament. The 7 major political groups are the centre-right European People’s Party (EPP), the centre-left Progressive Alliance of Socialists and Democrats (S&D), the centrist and liberal Renew Europe, the Greens-European Free Alliance (EFA), the Left (GUE/NGL), the far-right Identity and Democracy (ID) and the conservative and euro-sceptic European Conservatives and Reformists (ECR).

(Source: European Parliament)

The Executive Branch - A new College of European Commissioners

The results of the European Parliament elections are intrinsically linked to who will be elected at the helm of the EU’s executive branch, the European Commission. This is because the Commission President usually belongs to the political group that wins the most seats in the European Parliament elections. The new Parliament is responsible for approving or rejecting the President of the European Commission, who is nominated by the Council of the EU¹ based on a qualified majority vote. The European Parliament is also tasked with vetting and approving the entire College of Commissioners, comprised of 26 Commissioners (one from each EU Member State) who oversee key policy areas for the EU, such as trade, health, industry, environment, antitrust etc. The Commissioners are political appointees and candidates are put forward by national Governments.

Although current Commission President von der Leyen seeks another term at the helm of the European Commission, it remains to be seen whether the political group she belongs to – EPP –currently on course to win – will succeed in obtaining most seats in the new European Parliament now that a sharp rise in votes for right-wing parties is predicted. If they do, Commission President von der Leyen still formally needs the support of EU leaders in the Council, and the backing of at least 361 MEPs in the European Parliament.

(Source: European Parliament)

Life Sciences – the future medtech rules and a new pharma package

With innovation being a strategic priority for the next five-year term of the Commission and a more industry-friendly stance anticipated in the European Parliament, the EU’s medtech rules are poised to come under scrutiny as the implementation of the MDR and the IVDR continues to challenge medtech companies. The creation of a European Medical Device Office, conformity assessment procedures tailored to orphan and innovative medical devices and extension of the validity period of CE certificates of conformity could rapidly become a priority of the new European Parliament. The European Commission is also expected to issue additional guidance documents to clarify ambiguous regulatory requirements and support companies in transitioning their devices to comply with the MDR and IVDR.

The proposed EU Pharmaceutical Package is expected to remain a central issue and will continue to dominate discussions over the next few years. While the European Parliament has already adopted its first reading position on the draft Regulation and Directive, the Council has yet to finalize its general approach, a critical step before trilogue negotiations can commence between the European Parliament, the EU Council and European Commission. Key debates are anticipated around proposed changes to regulatory data protection and market exclusivity periods, which are expected to prove contentious over the next five years.

Agro-Food – favouring a Farm Deal over a Green Deal

The upcoming EU elections are poised to significantly influence the future of food and agriculture policies across the bloc. As Europe grapples with the challenges of climate change, sustainability, and food security, candidates and their parties are prioritizing agricultural reform and food policy in their campaigns. Following numerous farmers’ protests in Brussels and throughout the continent, proposals to enhance the Common Agricultural Policy (CAP) will be central to the debate the coming five years. The aim is to ensure increased support for farmers, while cutting “red tape” and promoting organic farming. The trade policy agenda as well will likely focus on robust reciprocity measures and ensuring attention to sensitive EU productions with a push for reciprocity in farm production standards and a level playing field in trade. It appears that there is growing support for the extension of mandatory country-of-origin labelling for more food products, and stricter controls on food imports to ensure EU food safety and environmental standards are adhered to, reflecting the increasing demand for transparency and sustainability in the food supply chain.

European farmers will be looking to receive fair remuneration within the food chain, with urgent and effective implementation of the Unfair Trading Practices Directive in each Member State.   In the area of food innovations, a new – and less “green” - European Parliament could well be more receptive to the new genomic techniques (NGTs) proposal and the use of biotechnology, particularly where yields can be improved while reducing environmental damage and greenhouse gas emissions. Measures proposed under the Green Deal, including those adopted and currently in the implementation phase, may well be revisited with a view to ensuring that they do not lead to a loss of competitiveness, increased costs and administrative burden for farmers. It is likely to become more difficult for the Commission to deliver ambitious legislation, such as the promised revamp of outdated animal welfare rules, a new law on sustainable food systems, or efforts to curb agricultural emissions.

Environment – one step forward or two steps back?

The next mandate will be dominated by implementing a lot of the EU’s new rules to boost the circular economy, curb air pollution, slash packaging waste, rein in greenwashing and make products more sustainable. For companies in the life sciences sector measures focused on increased scrutiny on environmental footprint, prompting innovation in sustainable practices and green technologies. Similar type measures for the food industry related to potentially reshaping supply chains and farming practices to meet higher ecological standards. How ambitious the implementation of these environmental measures will be going forward, and the extent to which some of these measures could even be rolled back, are at the heart of the debate and will be influenced by the composition of the new Parliament. At the same time, new sustainability concerns are emerging in connection with long-lasting and widespread pollution of so-called “forever” chemicals (PFAS).

Data protection – the need to get ready for “a brave new world”

The period from 2019 to 2024 has witnessed significant legislative developments in the EU's digital sphere, with the adoption of Data Governance Act, Digital Services Act, Digital Markets Act and the AI Regulation. The future implementation of these crucial pieces of legislations will be pivotal for the EU, presenting challenges around compliance, enforcement and industry readiness for these new requirements. Moreover, the rise of next-generation IoT will likely bring new challenges in privacy and cybersecurity, necessitating robust measures to protect interconnected systems. Amidst these developments, the increasing sophistication of cyberattacks will emphasize the critical importance of securing essential infrastructures.

As these issues evolve, the upcoming EU elections will likely play a crucial role in shaping the direction and effectiveness of these initiatives. There could be structural changes within the EU governance framework to address emerging needs, such as the creation of dedicated digital portfolios or enforcement mechanisms. Consumer protection in the digital sphere will also likely be an emerging theme that may shape future policy priorities. However, the exact direction and timing of these changes remain uncertain and it is premature to make definitive statements about their outcomes.

Trade – towards a defensive trade playbook?

EU Trade Policy works along four main areas: multilateral cooperation, bilateral and regional partnerships, sustainable trade and protecting EU companies and citizens from unfair trade and investment.  Factors likely to continue to shape EU trade policy over the next five years are expected to continue to centre around geopolitics and concerns over the resilience of supply chains, and climate change.  The EU has long maintained a vast network of bilateral and regional Free Trade Agreements and negotiations with Mercosur, India and Indonesia are expected to be high on the agenda.  While MEPs have limited say on trade policy, as it falls under the remit of the European Commission, their influence is increasing and they can still slow down ratification of trade deals. 

A more right-leaning European Parliament could be inclined to move away from free-trade towards protection of domestic industries against competitors from the U.S. and China and focus on not being undercut because of more lenient environmental and labour standards that may apply outside the EU.  Similarly, a right-leaning Parliament may question EU policy in pursuit of climate neutrality, such as in relation to deforestation-free supply chains. 

In a recent speech, Commission President von der Leyen as well confirmed the EU’s open trade approach, but also announced increasing pressure for a level playing field and more use of its defence tools in case of abuse, as well as a 300 billion investment package for infrastructure outside Europe and new partnership agreements to diversify its supply.  

Competition - harder, better, faster and stronger?

The European Commission’s future competition policy will likely be bolstered by the outcome of the elections as the Commission continues to push the enforcement of the competition law rules to address a broad range of concerns. In recent times there has been a surge of activity in the competition law area, including the seizure of jurisdiction over M&A deals through referrals, the imposition of large fines in antitrust and dominance cases, increased unannounced antitrust inspections, designations under the Digital Markets Act and the approvals of large amounts of EU State aids. Further, in the lead up to the elections, significant and high-profile cases have been brought against foreign players for distorting the internal market under the EU’s new Foreign Subsidies Regulation. 

Key competition agenda items going forward will likely include the competitiveness of European industry (and the reduction of dependencies on foreign players), digitalisation and technology, sustainability and energy efficiency, increased investments into Europe (including in critical industries), and protection of the labour market.

Our Brussels regulatory practice & team members

Our team has been established in Brussels and advising clients on EU regulatory and policy issues for more than half a century. We understand the workings of the EU Institutions and regularly assist clients on the EU decision-making process and its interplay with business strategies. We are experts at developing legal and political lobbying or advocacy strategies targeted at the European Commission, the European Parliament and/or the EU Council of Member States, as well as are experienced in challenging the actions of the EU institutions before the Court of Justice of the European Union. As such, we provide clients a one-stop shop for doing business in the EU.

Next steps

This Snapshot is the first in a series of updates focusing on the June 2024 European Elections and what the outcome might entail across various industry sectors with a newly appointed European Commission driving the direction of policy over the next five years.

Authored by Jacqueline Mailly, Fabien Roy, May Lyn Yuen, Lourdes Catrain, Hugo Paemen, Anastasia Vernikou, Grégoire Paquet, and Hélène Boland.

References

1 The Council of the European Union comprises of government ministers from each EU Member State. The Council meets in 10 different configurations depending on the subject  matter to discuss, amend and adopt laws, and coordinate policies. The ministers have the authority to commit their governments to the actions agreed on in the meetings. Together with the European Parliament, the Council is the main decision-making body of the EU.