Commission proposes to greenlight a payment of €1.6 billion to Austria under NextGenerationEU
Today, the European Commission has positively assessed Austrias second payment request for € 1.62 billion under the Recovery and Resilience Facility, the key component of NextGenerationEU.
The Commission has preliminarily concluded that Austria has satisfactorily met 67 milestones and targets outlined in the Council Implementing Decision for the second and third instalments.
This payment request addresses significant steps in implementing 54 reforms and 13 investments benefiting Austrian citizens and businesses, focusing on areas like digitalisation, health, energy, circular economy, and sustainable mobility.
Notable measures linked to this payment include accelerating building decarbonisation, banning fossil-fuel heating systems in new constructions from 2025, and replacing over 30,000 fossil-fuel heating systems in existing buildings. Additional measures involve pension reforms to enhance sustainability and investments in long-term care.
More information can be found in a press release online.
(For more information: Maciej Berestecki – Tel.: + 32 229-96302; Isabel Arriaga e Cunha +32 229-52117)
Commission starts second-stage talks with social partners on right to disconnect and fair telework
The European Commission is advancing towards implementing the workers right to disconnect and fair telework, initiating second-stage talks with social partners today. These discussions will collect EU social partners perspectives on a possible EU initiative to mitigate the always-on work culture and ensure equitable telework conditions for employees.
Social partners are encouraged to provide insights on the right to disconnect, fair telework conditions, and occupational safety and health.
Roxana Mînzatu, Executive Vice-President for Social Rights, stated: “Digital technologies have transformed work dynamics, increasing teleworking. To safeguard fair telework conditions and workers rights, including the right to disconnect, social dialogue is crucial. Input from both workers and employers is vital to address challenges like blurred work-life boundaries. This second-stage consultation aims to shape EU actions that protect workers wellbeing while enabling businesses to leverage digital opportunities.”
This second-stage consultation follows a first-stage consultation conducted from April to June 2024, with social partners invited to respond by October 6, 2025. Post-consultation, social partners may negotiate amongst themselves, or the Commission may evaluate feedback and consider EU-level actions.
Further details are available in our press release.
(For more information: Anna-Kaisa Itkonen – Tel.: +32 2 295 75 01; Quentin Cortès - Tel.: +32 2 291 32 83)
Public consultation seeks input on updating VAT Rules for travel and tourism
The Commission has initiated a public consultation to revise VAT rules for travel and tourism to rectify outdated regulations that distort the market within the EU.
Travel and tourism represent approximately 10% of the EUs GDP and provide jobs for millions, primarily in SMEs. Revising VAT rules is crucial for fostering fair competition, reducing bureaucratic hurdles, and aligning taxes with digital and sustainability goals.
Key stakeholders, including Member States, SMEs, and the general public, are invited to share their perspectives on proposed changes to the VAT system for travel agents and passenger transport services. Feedback from this consultation will inform a legislative proposal expected in 2026.
The consultation will focus on two main areas: the special VAT scheme for travel agents, which currently bases tax rules on margin and location, leading to inconsistencies and unfair advantages for non-EU operators; and VAT rules for passenger transport, where taxes are calculated by distance travelled within the EU, imposing burdens on small operators.
Participants can provide feedback through an online questionnaire available in all EU languages and submit position papers via the Commissions “Have Your Say platform.” The consultation will last for 12 weeks, with additional discussions planned, including meetings with representatives and business groups.
More information on VAT Special Schemes can be found online.
For more information: Anna-Kaisa Itkonen – Tel.: +32 2 295 75 01; Saul Goulding – Tel.: +32 2 296 47 35)
Commission approves new geographical indications from Italy and Türkiye
The Commission has approved the addition of ‘Cirò Classico and ‘Mut Zeytinyağı to the register of Protected Designations of Origin (PDO).
‘Cirò Classico is a red wine from Calabria, Italy, known for its ruby color and complex aroma. It offers a full-bodied taste that becomes velvety with age.
‘Mut Zeytinyağı is an extra virgin olive oil from the Mut Region in south-east Türkiye, characterized by a high level of fruitiness and unique flavors.
These designations add to the over 3,670 protected names listed in the eAmbrosia database. More information can be found in the Quality Policy pages.
(For more information: Balazs Ujvari – Tel.: +32 2295 45 78; Thérèse Lerebours- Tel.: +32 2 296 33 03)
Commission approves €41.5 million Italian State aid measure for a new manufacturing facility for glass-based photonic chips
The European Commission has approved a €41.5 million Italian State aid measure to support Ephos S.r.l., an Italian SME, in establishing a unique manufacturing facility for glass-based photonic chips in Milan.
The aid will be provided as a direct grant, aiming to enhance technological autonomy in semiconductor technologies for the EU.
This facility is groundbreaking in the EU, facilitating faster production of photonic chips for high-value applications like data centers and quantum computing.
The Commission evaluated the measure under EU State aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the EU. It found the aid necessary for the investment, which wouldnt have occurred without public support, and proportionate, with limited impact on competition and trade.
The non-confidential version of the decision will be available under the case number SA.117987 in the State aid register on the Commissions competition website once confidentiality issues are resolved.
(For more information: Thomas Regnier — Tel. + 32 2 299 10 99; Luuk de Klein – Tel.: +32 229 94774)
Commission approves Czech compensation for Czech Posts public service obligation for 2025-2029
The European Commission has approved a Czech measure to compensate Czech Post for fulfilling a public service obligation in Czechia from 2025 to 2029, which includes universal postal service and Postal Money Orders.
Czech Post will receive annual compensation of up to €60 million (1.5 billion CZK) to cover costs incurred in fulfilling this obligation.
The Commission assessed this measure under EU State aid rules, particularly Article 106(2) of the Treaty on the Functioning of the EU, ensuring it aligns with the definition set out in the Postal Services Directive.
The non-confidential version of the decision will be available under the case number SA.116631 in the State aid register on the Commissions competition website once confidentiality issues are resolved.
(For more information: Thomas Regnier — Tel. + 32 2 299 10 99; Luuk de Klein – Tel.: +32 229 94774)
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