Business Groups Urged EU Trade Policy Reforms
Mediterranean confederations are seeking budget support and maritime regulatory relief to protect island connectivity.
Updated on Oct. 6, 2026 in International Trade
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Nine business confederations from across the Mediterranean have issued a joint position paper requesting EU policy shifts to support island economies and maritime competitiveness. The alliance specifically targets proposed reforms to the EU Emissions Trading System that businesses argue incentivize transshipment to non-EU ports.
Why it matters
Business groups claim that current regulatory designs and high transport costs create structural disadvantages for island-based operations. They are now pushing for specific derogations to remain competitive against non-EU maritime alternatives.
The MED9 group represents 41% of EU GDP and 48% of total EU businesses, while the broader EU Blue Economy generates €890.6 billion in annual turnover. The proposal specifically addresses the 50% threshold for transshipment activity under newly proposed ETS reforms.
The players
Business MED9
An alliance of national confederations from nine Mediterranean countries representing 48% of all EU businesses.
European Commission
The executive arm of the European Union responsible for drafting legislation and enforcing maritime and environmental policy.
Malta Business Bureau
A representative body for businesses in Malta that coordinates with regional counterparts on island-specific economic policies.
The details
The business confederations are lobbying for a 50% derogation from maritime emissions surcharges for routes serving small islands. Operators argue that the current ETS proposal, which targets a 50% transshipment threshold, forces shipping companies to relocate logistics hubs to ports outside the EU. These groups are further advocating for the formal appointment of an EU Blue Economy Envoy to track maritime regulatory impacts.
Timeline
July 17, 2026: European Commission published its proposal for EU ETS reform.
October 6, 2026: MED9 Summit took place in Split, Croatia.
Market Landscape
The proposed policy shifts mark a direct challenge to the implementation of the EU Emissions Trading System. This follows a broader trend where trade-reliant sectors are seeking specific exemptions to prevent the flight of logistics operations to non-EU ports.
Operators in island regions should monitor potential changes to transshipment thresholds that could alter freight costs. Businesses should also track the appointment of any new Blue Economy envoys who will influence future maritime regulatory implementation.
The takeaway
The MED9 alliance signals a growing friction between regional maritime competitiveness and EU environmental directives. Operators should monitor if the 50% transshipment threshold is codified, as it will likely determine whether shipping hubs remain within European borders.
Further reading
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Source note: This article includes information reported by The Malta Independent Online.
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