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US threatens EU over its green reporting rules

The U.S. on Friday threatened action against the EU unless Brussels reins in its environmental and human rights rules, which Washington says unfairly burden American companies.

Acknowledging Brussels had made “some positive reforms,” Washington said the EU had “failed to fully address U.S. concerns,” and that it “will take any actions necessary to address unreasonable burdens on U.S. commerce.”

U.S. Ambassador to the EU Andrew Puzder piled on the pressure Friday, writing on X that “now it’s time for the EU to deliver.” He pointed to commitments made under last year’s Turnberry trade deal to ensure U.S. businesses do not face “undue restrictions” on transatlantic trade due to Brussels’ green regulations.

The dispute centers on two pillars of the EU’s corporate sustainability rulebook: the Corporate Sustainability Due Diligence Directive, which requires large companies to address human rights and environmental harms linked to their operations and supply chains, and the Corporate Sustainability Reporting Directive, which requires companies to disclose sustainability-related information.

Brussels has scaled back both laws in its drive to cut red tape, but has stopped short of Washington’s demand to shield U.S. companies from their reach.

Last week, Puzder similarly attacked the EU’s Carbon Border Adjustment Mechanism as a tariff on U.S. exporters. On Thursday, the White House also accused the EU and more than 40 countries of enabling Chinese goods to skirt U.S. tariffs by rerouting them through their markets.

A European Commission spokesperson told POLITICO that Brussels had made “considerable efforts” to explain its rules and highlight “its willingness to cooperate with the US to increase trade where possible,” but drew a line at changing its regulatory regime in response to U.S. pressure.

“We have been very clear and consistent on the fact that neither our rules framework nor our regulatory autonomy are up for negotiation,” said the spokesperson.

This story has been updated.

Koen Verhelst contributed reporting.

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Magyar casts doubt on Hungary-Russia nuclear power deal

Hungarian Prime Minister Péter Magyar on Thursday cast doubt on a deal struck by his predecessor that would see Russia’s state nuclear company Rosatom expand Hungary’s nuclear power capacity.

Weeks of extreme heat and drought have pushed the Danube River to record lows, slashing output at Hungary’s Paks nuclear plant — which normally supplies around a third of the country’s electricity — to little more than 10 percent.

“These plans were accepted despite the fact that nuclear power plants that do not operate with a closed-circuit cooling system and are so exposed to the environment are no longer being built in the world,” said Magyar, per local media.

Rosatom CEO Alexei Likhachev wrote that the Russian state nuclear company was still on schedule with two new reactors at Paks despite Hungary’s change of government in April, which saw Magyar oust Russia-friendly incumbent Viktor Orbán.

Concrete preparation for Unit 5 is more than 80 percent complete, he said, while work on Unit 6 is advancing and reactor components are already being manufactured.

“We are ready for dialogue,” Likhachev said, adding that Rosatom had received no questions from Hungary’s new government.

Magyar challenged that account hours later. Under the original contract, Paks II should have been operating by 2024, he told reporters in a press conference Thursday. Instead, Hungary has spent roughly 1,000 billion forints (€2.8 billion) on a site he described as little more than depots and “two large concrete pits.”

“I don’t really see that they have adhered to the contract,” Magyar said. His government is now carrying out a full review of the project, including its financing and cooling arrangements.

The review cuts at one of Orbán’s signature deals with Russia. Orbán struck the Paks II agreement in Moscow in 2014, handing Rosatom the two-reactor expansion backed by up to €10 billion in Russian state financing. Two years later, he called it the “deal of the century.”

Those ties survived Moscow’s full-scale invasion of Ukraine. As recently as March this year, Orbán’s foreign minister Péter Szijjártó admitted to discussing EU sanctions with senior Russian officials after leaked calls showed him boasting that a bank linked to Paks had been kept off a sanctions list.

Downstream, Romania shut the second and last operating reactor at Cernavodă on Thursday after the Danube fell too low to supply its cooling pumps.

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