Accueil PRESS REVIEWSEuropean institutions 26 January 2026: between a busy plenary session, a standoff over Mercosur and budgetary tightening

European institutions 26 January 2026: between a busy plenary session, a standoff over Mercosur and budgetary tightening

Par Yohan Taillandier
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European Parliament: a busy plenary session in Strasbourg

From 19 to 22 January 2026, the European Parliament met in plenary session in Strasbourg for its first sitting of the year. According to the briefing “The Week Ahead 19–25 January 2026” published by Parliament’s press service, MEPs debated the conclusions of the December European Council, the war in Ukraine, EU‑US relations and the priorities of the new Cypriot Presidency of the Council.

One of the most sensitive items was the €90 billion loan to Ukraine for 2026–2027, as part of the Ukraine Support Loan mechanism backed by the Ukraine Facility. MEPs first voted on the adoption procedure under enhanced cooperation between 24 member states, then on the regulation itself, stressing the need to support Kyiv while preserving the sustainability of public finances in EU countries. The debate was marked by questions about how this financial commitment will affect the already limited room for manoeuvre to fund public services, wage increases and social investment within the Union.

Another highlight was the decision to refer the EU‑Mercosur agreement to the Court of Justice of the European Union (CJEU). On Wednesday 21 January, MEPs adopted a resolution requesting a legal opinion on the agreement’s compatibility with EU treaties, in particular regarding the division of competences and compliance with social and environmental standards. This vote did not cancel the agreement, but it plunged its ratification into uncertainty, as any further progress will now have to await the Court’s response.

Finally, the plenary also featured a debate on the misuse of artificial intelligence and deepfakes in politics, as part of the follow‑up to EU digital legislation. MEPs questioned the Commission on how to compel large platforms to better moderate misleading content and protect elections from online manipulation.

External relations: Ukraine, the United States and the Middle East

In foreign policy, Parliament adopted several reports and resolutions on European security. As the EP Think Tank’s note on the January session underlines, MEPs approved the annual reports on the Common Foreign and Security Policy (CFSP) and the Common Security and Defence Policy (CSDP), which identify Russia’s war against Ukraine as the main threat to the EU. The texts call for continued strong military, economic and humanitarian support for Ukraine, while strengthening European defence capabilities and cooperation with NATO.

At the same time, MEPs debated a report on EU‑US relations, arguing that the Union must build up its “capacity for autonomous action” while remaining an ally of Washington. The report stresses the need to cooperate with the US on climate, digital policy and the regulation of big tech companies, without becoming dependent on decisions taken in Washington.

On the Middle East front, the Council of the EU extended for one year the sanctions targeting Hamas and Palestinian Islamic Jihad, measures originally adopted in the framework of counter‑terrorism policy. This decision was announced in an external‑relations note that also included an EU statement condemning Israel’s continued settlement expansion in the West Bank.

Council of the EU: public finances and the European Semester

On the Council side, the period from 19 to 25 January was dominated by the ECOFIN meeting of 20 January 2026, which brought together finance ministers under the Cypriot Presidency. According to the “Forward look 12–25 January 2026”, the Council approved conclusions on the 2026 Alert Mechanism Report, as part of the European Semester. Ministers were also invited to adopt a decision and a recommendation under the excessive deficit procedure for member states whose public accounts still significantly exceed EU reference values.

Although these discussions are highly technical, they have very concrete consequences for national policies: they steer the 2026–2027 budgets onto consolidation paths, with limited margins for social spending, public sector wages or investment in public services. This framework then constrains governments when they negotiate with trade unions or launch structural reforms.

On the trade front, the Council had already given the green light to the signing of the EU‑Mercosur agreement on 9 January. Commission President Ursula von der Leyen welcomed this as a strong signal in favour of European competitiveness and trade “diversification”. However, Parliament’s decision to refer the agreement to the CJEU has effectively slowed the process down, revealing clear tension between the institutions.

European Commission: digital, climate and Schengen

The European Commission was also active on several fronts during the week. According to the Europe Daily News bulletin by Mayer Brown, the Commission launched a consultation on the Ocean Observation Initiative, updated certain rules in the EU registry for effort‑sharing and land‑use sectors, and advanced several delegated acts linked to the EU Emissions Trading System (ETS).

On migration and Schengen, the Commission’s midday press briefing of 19 January focused largely on the Entry/Exit System (EES) and its impact on workers from the Western Balkans. In response to journalists’ questions, Commission spokespersons explained that the new system would be rolled out “gradually”, taking into account the needs of cross‑border workers and lorry drivers, but without revisiting the basic principle: systematically registering third‑country nationals each time they enter or leave the Schengen area at its external borders.

In the digital sphere, several press round‑ups – including the TNW Weekly Briefing for 19–25 January – highlighted the launch of an initiative dubbed “EU Inc”, aimed at reducing Europe’s dependence on large US technology firms. The idea, promoted by the Commission and several member states, is to build a European ecosystem around cloud services, artificial intelligence and digital infrastructure, in line with the Data Act, the AI Act and the Digital Markets Act.

The week ahead: committees, Council and political follow‑up

Looking ahead to 26–30 January 2026, several key institutional meetings are already on the agenda. In Parliament, with the Strasbourg plenary now over, MEPs will continue their work in committee in Brussels, with topics such as the housing crisis, public health, transport, climate and social rights on the table. These meetings will prepare upcoming reports and votes, particularly on the green transition, worker protection and the regulation of major platforms.

The Council of the EU will once again bring together agriculture and fisheries ministers (AGRIFISH) on 26 January to discuss organic farming and the bioeconomy, followed by finance ministers (ECOFIN) at the end of the month to continue discussions on coordinating budgetary policies under the new EU fiscal framework. Finally, Commission departments will keep working out the details of implementing the texts adopted in plenary – from the Ukraine loan to digital‑law enforcement and the preparation of the CJEU referral on Mercosur.

The link between the Strasbourg plenary (19–22 January) and the upcoming agenda (26–30 January) illustrates the core of how EU institutions operate: a chain of political decisions, technical negotiations and concrete implementation steps that end up shaping social struggles, economic choices and democratic rights in the member states.

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