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Covering Internal Ratings-Based Models, Sick Leave, Rupture Conventionnelle, Governance, Delegation. Explore key regulatory developments in Internal Ratings-Based Models, Sick Leave, Rupture Conventionnelle, Governance, and Delegation across the EU, focusing on supervisory reviews, labour law reforms, and governance frameworks.
Regulatory news, updates, and insights for countries in the EU presented by the Carver Agents team
Welcome to Carver's European Union Regulatory Updates for August 16, 2026.
The European Commission has announced it will not oppose the notified merger operation involving Mercedes-Benz under Article 6(1)(b) of the Merger Regulation. This decision declares the merger compatible with the internal market and the European Economic Area Agreement. The clearance confirms regulatory approval of a significant automotive asset acquisition, impacting competition and market structure within the European Union automotive retail sector.
In Ireland and the European Union, Mary-Elizabeth McMunn published findings from a supervisory review on delegation practices in fund management companies. The review highlights the effectiveness of governance, oversight, and control frameworks. Plans for a governance review and regulatory framework updates are scheduled for 2026 to 2027. Fund management companies must maintain robust governance and oversight of delegated functions. Boards cannot delegate away responsibility and accountability, and governance must be substantive to ensure investor protection and market stability amid geopolitical fragmentation and technological advances such as artificial intelligence.
The European Central Bank supervision released a paper identifying that a small set of high-severity deficiencies in internal ratings-based models, particularly related to data governance, drive the majority of supervisory capital add-ons imposed on banks. This insight aims to prioritize supervisory resources and improve risk sensitivity in banking supervision. Banks are required to ensure high-quality data governance to reduce model risk, while supervisors should focus on high-severity findings and require remediation within timeframes proportional to severity.
Charterhouse proposes to acquire sole control of Batibig, a French group specializing in emergency repairs and building renovation, through a newly incorporated entity named Atlas Bidco SAS. This transaction requires notification to the European Commission and compliance with Council Regulation 139/2004 to ensure adherence to European Union competition rules.
In France, the credit d'impôt au titre des investissements dans l'industrie verte, known as C3IV, has been extended for three years following a decree published on August 11, 2026. This tax credit supports strategic green industry sectors critical to France's energy sovereignty and industrial future. Eligible projects include batteries, wind, solar, and heat pumps covering the full value chain, including production and valorization of critical raw materials. Businesses must apply under updated rules and procedures outlined in the decree and arrêté.
Also in France, the procedure for rupture conventionnelle in the public sector was updated and made permanent as of August 8, 2026. The update includes revised minimum and maximum indemnity calculation formulas based on agent seniority and remuneration. The procedure can be initiated by either the agent or the employer and requires one or more interviews discussing reasons, end date, and indemnity amount. Agents may be assisted by a union advisor without restrictions related to representativeness.
Regarding social housing, France has introduced earlier intervention measures for unpaid rent cases. A social and financial diagnostic must now be conducted at the stage of the payment order, known as commandement de payer, rather than only during judicial proceedings. This allows for earlier identification of tenant difficulties and coordination of social support to prevent evictions. The diagnostic must be updated if no recent one exists one month before the hearing and transmitted to the Commission de Coordination des Actions de Prévention des Expulsions (CCAPEX) upon realization and updates.
France has also modified rules concerning therapeutic part-time work and health-related work stoppages in the public sector through a decree dated July 29, 2026. Employers must respond within 30 days to therapeutic part-time work requests starting August 1, 2026. Refusals or interruptions must be motivated. The authorization duration for therapeutic part-time work remains limited to one year without mandatory renewal periods.
Finally, the European Commission has opened the call for candidate projects for the third list of Projects of Common Interest and Projects of Mutual Interest, known as PCI and PMI projects. Applicants must submit proposals by category-specific deadlines, such as September 30, 2026, for hydrogen, electrolysers, and CO2 infrastructure projects. Submissions are to be made via designated portals including the ENTSOG data portal and the EU Survey form. The new list will be adopted by the end of 2027 and become effective from early 2028. PCI and PMI status provides benefits like accelerated permitting, regulatory support, and access to European Union funding.
That wraps up today's regulatory updates. Visit carveragents.ai for more information.