New EU Council Priorities, The Hungarian Presidency & The French Elections

As the dust settles from the recent EU Parliament elections, the bloc’s attention is now drawn to the key events that follow and the government changes happening at a national level. So, after analysing the outcomes of the 2024 EU elections, it’s time for us to review the news around the EU Council and its 2024 – 2029 Strategic Agenda.

In this piece, you will find an overview of the institution’s priorities for the next five years, but not only that. We have also prepared an assessment of Hungary’s plans for its term in the Council’s presidency, and a quick analysis of France’s snap elections to help you understand their potential impacts on what happens next.

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The EU Council’s Priorities for 2024 – 2029

In late June, the EU Council presented its Strategic Agenda for 2024-2029, centred on the EU’s core principles of peace, cooperation, solidarity, and economic prosperity.

In relation to the previous term, the new agenda displays a reduced focus on consumer protection, shifting its priorities towards strengthening the competitiveness of EU businesses. The commitment to the Green Deal remains firm, but achieving it will require a strategic review of how EU industries operate, especially in light of the competition and geopolitical challenges coming from the US, China and Russia.

As detailed in our recent 2019-2024 mandate recap, the previous term had a strong focus on green consumption, which is now being moved towards energy transition to ensure both sustainability and energy independence.

Here is an overview of the Council’s priorities for the next five years:

Strong and Secure Europe

• Continued support for Ukraine against Russia.
• Increased defence spending to reduce dependencies, particularly from the US.
• Enhanced interoperability among member states’ armed forces.
• Advocacy for EU enlargement.
• Ensuring free mobility and effective border protection, addressing irregular migration with a secure legal framework.

Prosperous and Competitive Europe

• Enhancing competitiveness by increasing purchasing power, job creation, and ensuring quality goods and services.
• Promoting technology investment through public and private funding and strategic alliances, especially in energy, finance, and telecommunications.
• Focusing on SME development.
• Advancing the creation of Capital Markets and completing the Banking Union.
• Securing open and sustainable trade agreements aligned with WTO standards.
• Reducing bureaucracy by simplifying administrative procedures.

Green and Digital Transition

• Achieving climate neutrality by 2050.
• Investing in cross-border infrastructure for energy, water, transport, and communications.
• Supporting energy sovereignty and a fair climate transition with ambitious electrification goals.
• Developing a circular and resource-efficient economy by promoting clean technologies, the bioeconomy, and smart mobility.
• Ensuring food security through a competitive, sustainable agricultural sector and strengthening farmers’ positions in the food supply chain.
• Protecting biodiversity and implementing solutions to reverse ecosystem degradation.

Hungary’s Elections and Programme for The EU Council’s Presidency

In July, Hungary began its term as holder of the EU Council’s presidency, which lasts until December 2024, and allows the country to set the period’s agenda and prioritise discussions.

This new Council presidency will maintain similar priorities for the institution, focusing on boosting competitiveness, supporting SMEs, and achieving climate neutrality and biodiversity preservation. However, there are certainly some concerns regarding potential far-right influences, notably from Orbán’s parliamentary representation (the new Patriots for Europe political group).

The Hungarian programme indicates a shift towards a ‘farmer-friendly’ agricultural policy, which could end up prioritising farmers’ competitiveness at the expense of biodiversity. Sustainability initiatives like the Green Claims Directive and Waste Framework Directive are mentioned, but Orbán’s influence, alongside far-right groups ECR, PfE and ESN (Europe of Sovereign Nations), could challenge the EU’s green agenda, despite them lacking majority control in the Council or Parliament.

New European Competitiveness Deal

Hungary’s presidency acknowledges that the European industry lags behind global competitors. Their proposed solution, the ‘New European Competitiveness Deal’, aims to enhance productivity and sustainable growth by supporting SMEs, reducing unnecessary burdens, promoting green and digital transitions, and ensuring job stability. This strategy would include a technology-neutral approach to boost European productivity, ensuring labour market flexibility and addressing international supply chain vulnerabilities.

Impacts of France’s Recent Snap Elections

While the EU prepared to kick off its new mandate, France faced snap elections to overhaul its own parliament. In a surprising turn, the French saw the left alliance, led by Jean-Luc Mélenchon, triumph over expectations of a far-right victory.

Mélenchon’s New Popular Union won 188 seats, with Macron’s Ensemble securing 161, and Le Pen’s National Rally reaching 142.

Despite landing a mere third place, these results represent a significant boost for the National Rally party, which, in effect, almost doubled its number of seats. And while this is no cause for concern at the moment, this movement could end up impacting the outcomes of the 2027 elections.

After weeks of negotiations, the left coalition finally agreed to endorse Lucie Castets, the finance director at Paris City Hall, as the new Prime Minister. The final approval should be given by President Emmanuel Macron, but due to the celebration of the Olympic Games, he will not appoint a new executive until mid-august, keeping Gabriel Attal in office. Discussions will be re-opened by the end of summer.

The critical question now revolves around how France might influence the EU Council. Macron will still retain the presidency and his Council seat until 2027, though changes in the Council of Ministers are expected after the new cabinet is introduced.

Conclusion

The outcomes of the EU Parliament elections, Hungary’s presidency, and France’s snap elections signal a period of dynamic change for the EU, which will be reflected in our policymaking. These shifts might soon begin to influence EU legislation on sustainability and many other areas, with potential implications for all sectors. So be sure to stay informed by following all the latest EU updates here at the Ohana blog, and reach out to our team for tailored support and expert guidance in navigating the EU’s green transition.

Want someone with deep experience and connections in the EU to help guide your sustainability strategy? Get in touch!

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