How do agricultural policies in the EU need to change to increase the sustainability of livestock production, and what measures could encourage sustainable practices whilst minimising trade-offs? Addressing such questions is crucial to ensure progress towards proclaimed targets whilst moving production levels to planetary boundaries. However, a lack of available evidence on the impacts of recent policies hinders developments in this direction. In this review, we address this knowledge gap, by collating and evaluating recent policy analyses, using three complementary frameworks. The review highlights that recent policy reforms, and especially those of the Common Agricultural Policy, have had a large impact on the sustainability of the livestock sector by contributing to intensification and simplification. This has often resulted in negative impacts (e.g. on greenhouse gas emissions and animal welfare) and while financial support has enabled production, it can also lead to a culture of dependency that limits innovation. At the same time, a lack of regulation and concrete targets, and low levels of stakeholder engagement in policy design have led to delays in the delivery of sustainability objectives. Future policies could take on-board more innovative thinking that addresses the interrelatedness of society, animals, and the environment, to deliver effective targets and support.