Commissioner Michael McGrath, in a written answer on 30 June 2026, declined to propose EU-level legislation on third-party litigation funding (TPLF), arguing that no systemic risks have been identified and that monitoring existing rules should take priority. The answer, responding to a question from MEP Marion Walsmann (PPE), signals that the Commission sees no immediate need to regulate the sector despite concerns over foreign capital and strategic litigation.
The question, submitted on 11 May 2026, raised alarms about over 300 known TPLF funders in the EU, many based outside the bloc, and potential risks to European companies in defence, energy, and advanced technology. Walsmann asked about measures to prevent abuse, disclosure requirements for non-EU funding, and thresholds for classifying TPLF as a systemic risk. McGrath's answer pointed to a 2025 Commission mapping study that found no irregularities requiring legislative action, and to discussions in the High-Level Forum on Justice for Growth, where stakeholders broadly agreed that EU-level legislation is not needed. Only one stakeholder explicitly called for an EU legislative initiative, according to the Commission. Instead, the priority is to gain experience by monitoring the Representative Actions Directive, which already contains TPLF provisions for consumer collective redress. The Commission will continue to monitor developments but sees no reason to revisit its approach at this stage.
The answer provides no concrete proposals, numerical targets, or deadlines, instead reaffirming a wait-and-see stance. This leaves MEPs and stakeholders concerned about foreign influence without new safeguards, while businesses and funders benefit from regulatory certainty. The Commission's position aligns with a cautious, evidence-based approach, but may face pressure from Parliament, which in a 2022 resolution called for a legislative framework. No immediate institutional follow-up is expected beyond continued monitoring.