The European Union's institutions return from summer recess to a week that could set the tone for the autumn legislative cycle. From Monday, the Commission launches its first dedicated housing law, Parliament committees vote on carbon market reform and electricity grid integration, and MEPs adopt a new strategic framework for relations with China. All of this precedes a plenary session in Strasbourg where Ursula von der Leyen will deliver her State of the Union address and Canadian Prime Minister Mark Carney will address the chamber.
Housing act marks first EU legislative response to affordability crisis
The most politically resonant event arrives Monday when Dan Jørgensen, Commissioner for Energy and Housing, appears before the Special Committee on the Housing Crisis to launch the Affordable Housing Act. The proposal is the Commission's first attempt to use EU competences, primarily state aid, cohesion funding and the single market, to ease pressure on national housing markets. Member states have long treated housing as a strictly national competence, but soaring rents, mortgage costs and construction shortages across the bloc have forced the issue onto the European agenda.
Jørgensen is expected to outline how the Act will coordinate existing funds, relax state aid rules for social and affordable housing, and set non-binding targets for member states. The Commissioner will face questions on whether the EU can meaningfully influence outcomes without direct spending power or regulatory authority over tenancy law. The hearing follows months of consultation with cities, regions and housing providers who have warned that fragmented national responses are failing to address cross-border investment flows and speculative purchasing.
ETS reform vote targets price volatility ahead of 2027 expansion
On the climate front, the Environment, Climate and Food Safety committee votes Tuesday on a proposal to halt the automatic cancellation of excess carbon allowances in the EU Emissions Trading System's market stability reserve when the surplus exceeds 400 million allowances. The mechanism, introduced in 2019, was designed to absorb oversupply and support the carbon price. But industry groups and several member states argue it now risks creating artificial scarcity as the ETS expands to maritime transport in 2024 and buildings and road transport in 2027.
The vote reflects a deeper tension: the Commission wants a high, stable carbon price to drive decarbonisation, while energy-intensive industries fear volatility that undermines investment planning. The Parliament's position will shape trilogue negotiations with the Council later this year. A separate Commission analysis published in July suggested the reserve held roughly 1.6 billion allowances at end-2025, well above the 400 million threshold, though the final 2026 figure will not be confirmed until May 2027.
Electricity grids package aims to end cross-border bottlenecks
Also Tuesday, the Industry, Research and Energy committee votes on the review of the trans-European energy networks (TEN-E) regulation. The electricity grids package seeks to accelerate permitting, improve cross-border coordination and close infrastructure gaps that leave some regions, particularly in central and eastern Europe, poorly connected to the single market. The Commission estimates the EU needs roughly €584 billion in grid investment by 2030 to meet its climate and energy security targets.
The revision introduces a new category of 'projects of mutual interest' for offshore hybrid assets and hydrogen infrastructure, and strengthens the role of the European Network of Transmission System Operators for Electricity (ENTSO-E) in identifying system needs. MEPs will also debate whether to embed a 'grid benefit' test for renewable projects to prevent curtailment in congested zones. The file is moving under the ordinary legislative procedure with a Council general approach expected before year-end.
China strategy vote signals tougher line on trade and security
Wednesday's Foreign Affairs committee vote on EU-China relations recommendations comes at a moment of pronounced friction. The draft report, seen by this publication, calls for stricter enforcement of trade defence instruments, a coordinated approach to economic coercion, and clearer red lines on technology transfer and data security. It also links engagement on climate and health to progress on human rights and Russia's war in Ukraine.
The EU's goods trade deficit with China reached €395 billion in 2025, a record high, while investment screening mechanisms have proliferated across member states. The Parliament's recommendations are non-binding but will inform the Commission's forthcoming joint communication on China, due before the October European Council. Notably, the text avoids the term 'de-risking' favoured by von der Leyen, instead emphasising 'strategic autonomy' and 'reciprocity', language closer to the Council's position.
Product safety week confronts the e-commerce enforcement gap
Running throughout the week, International Product Safety Week marks its 20th edition with a focus on the digital economy. The centrepiece is the General Product Safety Regulation, which entered into force in June 2024 and applies fully from December 2024. It imposes new obligations on online marketplaces, including a requirement to designate a single contact point for market surveillance authorities and to remove dangerous listings within 24 hours of notification.
Regulators from over 60 countries will discuss how to police products sold directly to European consumers by third-country vendors, a channel that now accounts for an estimated 30% of non-food consumer product imports by volume. The Commission is also expected to preview its guidance on the 'responsible person' obligation for non-EU manufacturers, a provision that has generated significant compliance uncertainty.
Irish Presidency and plenary prep set the political weather
Behind the legislative votes, the Irish Council Presidency outlines its priorities to three Parliament committees on Monday and Thursday. Dublin's programme emphasises competitiveness, enlargement readiness and defence, themes that align with the plenary agenda for 14, 17 September. That session will see votes on the European Democracy Shield, defence readiness, the carbon border adjustment mechanism, hybrid threats, social media's impact on youth, and the common fisheries policy assessment.
Von der Leyen's State of the Union address on 16 September will be her third and penultimate before the 2029 Commission term ends. The Conference of Presidents meets her Monday to agree the debate format. Carney's appearance the same week signals Ottawa's ambition to deepen the Strategic Partnership Agreement and CETA implementation, particularly on critical raw materials and Arctic security.
People mentioned
Organisations
European Commission · European Parliament · Council of the European Union
