EU Advances Business Competitiveness and Raw Materials Security with New Regulatory and Transatlantic Initiatives

The European Union has unveiled two significant initiatives aimed at strengthening business competitiveness and securing critical raw materials supply chains, both vital to Germany's economic interests.

Firstly, the EU plans to introduce a "28th regime," a new unified regulatory framework designed to simplify establishing and operating cross-border businesses across all EU member states. This initiative offers entrepreneurs an alternative to the existing complex regulatory systems in the 27 EU countries, aiming to foster a more competitive and prosperous business environment. Notably, the 28th regime will not replace national rules but provide an easier pathway to cross-border business growth.

Simultaneously, on April 24, 2026, the EU and the United States formalized a strategic raw materials partnership to secure sustainable supply chains for critical raw materials such as rare earth elements, battery metals, and defense resources. This cooperation covers the entire value chain, from exploration to recycling, and seeks to boost innovation and investment while reducing dependence on China. The German Chamber of Commerce and Industry (DIHK) emphasized the necessity for equal, non-discriminatory market access for European companies within the partnership and highlighted the risks of aggressive US trade policies potentially creating new dependencies.

The DIHK detailed six key recommendations for the partnership's action plan, including focusing on industrial projects outside China, establishing joint financing mechanisms, and ensuring compliance with World Trade Organization rules, avoiding any new trade barriers. This partnership builds on the existing Framework Agreement from August 2025 and complements EU policies such as the Critical Raw Materials Act, which expedites strategic projects, and the ReSourceEU program that supports raw material efforts along the entire value chain.

Together, these EU initiatives signify a concerted effort to enhance the business climate and secure essential resources, crucial for German companies operating internationally and for Europe's strategic autonomy.