Happy New Year! Are You Traveling by Car or by (Omni)bus in 2026?

It is Sunday, the last one before Christmas, and I am also experiencing the familiar hangover feeling that many leaders share at this point in the year. Several items we planned to close during this final workweek remain unfinished. There was, once again, a myriad of unexpected issues that got in the way. I wonder how we manage to get this planning wrong every single year. Disclaimer: I consider myself a good planner—at least by my own standards, although my team might disagree—but I am always too optimistic about year-end closures.

What a closing of 2025 for Europe and the Brussels bubble. The Christmas tree was literally burning in Luxembourg Square in Brussels, and a close colleague called me saying, “José, they are throwing potatoes at the buildings right now¹.”

This December week in Brussels was probably one of the most intense for the farming community. The world is in a strange state of affairs. Europe needs the Mercosur deal as soon as possible. The United States continues to push a protectionist trade policy. China has moved faster than expected in technology. Meanwhile, the costs of war are demanding budget adjustments in other spending areas, including agriculture.

Now, back to our smaller world of regulatory Europe. There is something surreal about retreating into one’s regulatory cocoon while a Christmas tree burns outside. What happened in December 2025 that will matter for the future? Let us review some of the key policy developments and consider their meaning for our 2026 business plans.

The Omnibus simplification proposal was released by the European Commission². Contrary to several expectations that the proposal would not be published in December, it was released as anticipated. It demonstrates the Commission’s intention to address the concerns of citizens, the environment, and businesses alike. It is a solid proposal and reflects the Commission’s capacity to consult, listen, and understand the urgency for action.

Just before Christmas, farmers drove their tractors into Brussels and burned the Christmas tree. To be clear, this action was unrelated to the Omnibus simplification package. Responsibility lies instead with the Mercosur trade deal and the revision of the Common Agricultural Policy (CAP).

After 25 years of negotiations, the Mercosur trade deal suddenly moved toward rapid finalization in 2025. It represents a lifeline for European trade policy and economies—particularly Germany, which needs markets for its cars and machinery. France and Poland raised concerns regarding agricultural products, but they could not block the agreement alone. Italy intervened at the last minute, postponing the deal’s signature until at least January³.

The current global trade landscape, with the United States tariff discussions and China positioning itself at the top of the technological innovation ladder has left Europe in a difficult position requiring rapid access to new markets. The Mercosur deal is crucial for both parties, but the balance of power has shifted toward South American partners, as some European economies urgently need access to Brazilian, Argentine, and Chilean markets. Meanwhile, French and Polish farmers are blocking the deal due to concerns about lower-priced protein and food imports.

The EU–Mercosur trade deal would cover a market of 722 million people and an estimated value of USD 22 trillion, making it the most comprehensive free trade agreement ever negotiated. As of December 2025, discussions have been postponed by the European Commission, making this a critical issue to monitor in the first quarter of 2026. Prepare your popcorn.

Before further detours, here are the three crucial policy areas to watch in Europe in 2026:

• The Omnibus simplification package
• The EU–Mercosur trade deal
• The Bioeconomy Strategy and the Biotech Act

The Omnibus simplification package aims to reduce regulatory burdens in the food and food production sectors, including legislation affecting crop inputs. This legislative effort will directly impact the BioAg inputs sector, and companies will need to follow developments closely throughout 2026.

Simplification of the main regulation for Plant Protection Products (Regulation 1107/2009) is part of this package. The BioAg industry must ensure that targeted amendments move forward this year, while avoiding the type of fragmented debates that led to the collapse of the Sustainable Use Regulation. In other words, the sector must avoid the trap of too many stakeholders demanding too many different changes at once. I would like to believe that this time we will focus on shared priorities and rally behind the issues that matter most for the entire BioAg industry.

A few words on the Bioeconomy Strategy⁴ and the expected Biotech Act⁵, which was anticipated in December but was not available at the time this edition closed. It is well known that Europe has excess fermentation capacity. Expanding bio-based production is therefore desirable, both to utilize existing infrastructure and to scale manufacturing further. This is one of the pillars supporting the European Commission’s push to strengthen the bioeconomy.

While these winds are favorable, the Biotech Act may also present challenges, like what occurred during discussions on the Sustainable Use Regulation. Once again, there is a risk of too many demands being made simultaneously. During the Biotech Act debate, divergent interests may pull in different directions, and the biologicals inputs industry may struggle to be a strong voice at the table.

For those encountering the Biotech Act⁶ for the first time, its objective is to establish a coherent, innovation-driven legal framework governing biotechnology and biomanufacturing across the European Union. This initiative intersects with health, agriculture, energy, sustainability, economic security, national security, and biosecurity. Key debates will focus on biological definitions and the types of biological modifications that will be permitted and for what purposes.

The Biotech Act represents a mid-to-long term opportunity, but it also carries risks due to its cross-sectoral nature. I remain skeptical that our industry will be a leading voice in this discussion. For this reason, the changes achievable through the Omnibus simplification package are of critical importance, particularly in providing a lifeline for small and medium-sized enterprises that require faster market access.

Supporting SMEs and innovators is essential, as they drive competition and market dynamism, which in turn fuels further innovation. This is important from both a market and a citizen perspective. The European Union invests taxpayer money in research and innovation, only to prevent many of these innovations from reaching consumers. These contradictory policies require correction.

The Commission appears to understand the issues at stake. However, multiple forces within the European Parliament and the Council of Member States must be aligned to ensure the right policy outcomes. This is why it is crucial for the industry to speak with one voice during the Omnibus simplification process.

If the issue of biocontrol inputs, specifically biological pesticides, is resolved within the Omnibus framework, many of the challenges affecting biostimulants under other legislative instruments will also be addressed. Solving the first problem is a necessary step toward resolving the second. These issues cannot be fixed independently. Fragmented advocacy will only preserve the status quo, to the detriment of everyone involved.

As 2025 ends, I am proud that we were able to deliver a clear message calling for change and explaining why it matters for all stakeholders, starting with citizens. One is rarely on the right side of history without being on the wrong side of the present. This year, I believe we have made progress toward securing a better future for those who follow.

Happy New Year!