Economic

EU drops browser-based cookie consent proposal from Digital Omnibus

The European Commission had proposed replacing cookie banners with an automated browser-based privacy signal as part of its ‘Digital Omnibus’ package, a move that would have allowed devices to communicate users’ tracking preferences directly to websites. The plan, outlined in Article 88b of the GDPR, was intended to cut red tape and reduce the burden on consumers navigating consent requests across the web.

According to digital rights organisation noyb, cookie banners were not created by data protection law but emerged as a mechanism for the online advertising industry to obtain users’ consent for data sharing with third parties. Studies suggest only 3 to 10 per cent of users actually wish to be tracked, yet so-called dark patterns, such as hidden ‘no’ buttons and pre-ticked boxes, allow the industry to achieve consent rates of up to 90 per cent. Across more than 450 million EU citizens, this results in billions of unnecessary clicks each year.

According to noyb, a lobbying document submitted by Google argued that removing cookie banners would effectively halt all online advertising, citing figures that the European Commission has since described as highly exaggerated. The Commission had made clear that consent would still be possible on a per-website and per-purpose basis, meaning users could grant access to specific outlets while withholding it from others. Google’s paper also claimed that media outlets would be harmed, despite the fact that they are explicitly exempt from the proposed provision.

According to noyb, the lobbying campaign appears to have influenced the legislative process. In the Council’s position paper of 18 June 2026, Article 88b was removed entirely from the Digital Omnibus. Noyb added that Germany, France, and Poland were among the member states supporting the article’s removal following lobbying by the online advertising industry.

The outcome is particularly striking given that many of the same member states have long called on the EU to simplify regulation and cut red tape. noyb, the European digital rights organisation, has described the result as a victory for lobbying over public interest, noting that the majority of EU citizens have consistently expressed frustration with cookie banners.

The European Parliament has not yet taken a position on Article 88b, and negotiations between the Parliament and the Council are ongoing. Noyb has urged the European Parliament to support reinstating Article 88b during the next stage of negotiations.

Why does it matter?

The debate highlights the growing tension between digital simplification efforts, privacy protection and the economic interests of the online advertising ecosystem. Browser-based privacy signals have long been discussed as a way to reduce repetitive consent requests while preserving users’ ability to decide when and how their personal data may be used.

The proposal’s removal also illustrates the influence that industry stakeholders can have during the EU legislative process. Whether Article 88b is reinstated during negotiations with the European Parliament could shape the future of online consent management in Europe, affecting digital advertising, user experience and the practical implementation of data protection rules.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Digital euro proposal advances in European Parliament committee

Members of the European Parliament’s Economic and Monetary Affairs Committee have adopted their position on legislation to establish a digital euro, moving the EU closer to negotiations on a possible central bank digital currency.

The proposal would create a new electronic form of central bank money issued by the European Central Bank. It is intended to give citizens and businesses a secure digital payment option while reducing reliance on non-EU payment providers.

MEPs backed a model that would allow the digital euro to work both online and offline. Online payments would be processed through an account-based system, while offline payments would use local storage devices and operate similarly to cash.

The committee said privacy-by-design and privacy-by-default principles should be built into the system. Technologies such as zero-knowledge proofs would allow transactions to be verified without exposing personal data, and the ECB would not have access to users’ personal identification data.

Payment service providers, including banks, e-money providers, post offices and regulated crypto-asset providers, would be able to distribute the digital euro across the EU. Most businesses would be required to accept the digital euro, with exceptions for self-employed people and small and micro enterprises that do not accept other digital payments.

Basic digital euro services would be free. These include opening an account, holding and managing funds, and obtaining at least one payment instrument. Offline payments would also be fee-free.

To protect financial stability, individuals would face limits on the number of digital euros they can hold. Businesses would not be allowed to hold digital euros except to accumulate incoming payments for up to 24 hours, and the digital euro would not pay or charge interest.

The negotiating mandates for the digital euro files will be announced at the start of the July plenary session. Final legislation will still need to be negotiated with the Council before entering into force.

Why does it matter?

The ECON vote shows that the EU is still pursuing a sovereign digital payment infrastructure while trying to address concerns over privacy, financial stability and the future of cash. The proposal contrasts with growing resistance to CBDCs in the United States and other jurisdictions. Still, Parliament’s approach also shows caution: the digital euro would need holding limits, pilot testing, a long rollout period and strict separation from the ECB’s monetary policy functions.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!

Google expands financial ad verification across EU and EEA

Google has announced the expansion of its financial services advertiser verification programme to every country in the EU and European Economic Area, extending requirements aimed at reducing fraudulent financial advertising.

The rollout will cover 24 additional countries and builds on an existing programme already active in six EU member states and the United Kingdom.

Under the programme, advertisers seeking to promote financial products or services must complete an additional verification process showing that the relevant national regulator authorises them. Google said it will check credentials against official registries across the EU and EEA.

The requirements will be introduced in phases. Businesses will have 30 days to complete the process after notification, and unverified advertisers will have their financial services ads restricted until verification is completed.

Google said the additional requirements build on its wider advertiser identity verification programme, which it says already covers more than 98% of ads seen across the EU. The company also said its systems blocked or removed more than 1.6 billion ads in the EU last year.

The expansion comes amid continuing concern over online financial scams, including fraudulent ads that impersonate legitimate financial services providers or promote misleading investment products.

Why does it matter?

Financial scams increasingly rely on digital advertising to reach consumers at scale. Google’s expansion adds another gatekeeping layer for financial advertisers across Europe by linking ad eligibility to authorisation in official regulatory registers. The measure also shows how large platforms are being pushed, by regulators and reputational pressure, to take more responsibility for the trustworthiness of high-risk advertising categories such as finance.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

US Congress backs CBDC ban through 2030 in housing bill

The US Congress has backed a temporary ban on the Federal Reserve issuing or creating a central bank digital currency as part of the 21st Century ROAD to Housing Act.

The housing package passed the Senate by 85 votes to 5 and was later approved by the House of Representatives by 358 votes to 32. It now awaits President Donald Trump’s signature.

The CBDC provision would amend the Federal Reserve Act to prohibit the Board of Governors of the Federal Reserve System or a Federal Reserve bank from issuing or creating a central bank digital currency, or any substantially similar digital asset, directly or indirectly through a financial institution or other intermediary.

The prohibition would remain in effect until 31 December 2030. The bill defines a CBDC as a digital asset denominated in US dollars, treated as US currency, a direct liability of the Federal Reserve System and widely available to the general public.

The measure includes an exception for dollar-denominated currency that is open, permissionless and private, and that preserves the privacy protections of US coins and physical currency.

Republican supporters have long argued that a US CBDC could create financial surveillance risks, while digital asset industry groups have favoured private-sector payment innovation, including stablecoins, over a government-issued digital currency.

The measure follows a January 2025 executive order by President Trump opposing the development of a US CBDC. If enacted, the new provision would place a statutory limit on Federal Reserve CBDC activity through the end of 2030.

Why does it matter?

The provision would mark a significant US legislative move against a retail Federal Reserve digital dollar, even though no active US CBDC launch is underway. It also reinforces a broader policy direction in Washington: private digital assets, including stablecoins and open blockchain-based instruments, are being favoured over a central bank-issued digital currency. The debate matters for digital payments, financial privacy and the future role of central banks in monetary infrastructure.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!

UK ICO warns against unauthorised access to patient records

The UK’s Information Commissioner’s Office (ICO) has warned that unauthorised access to patient records is a serious breach of trust and an ongoing concern across the healthcare sector. In a new blog, the regulator said medical records contain some of the most sensitive personal information and must only be accessed for legitimate reasons.

The ICO said inappropriate access remains rare and does not reflect the behaviour of most healthcare professionals. However, recent high-profile incidents suggest the problem is not confined to isolated cases and requires a stronger organisational response.

According to the regulator, personal curiosity is never a legitimate basis for accessing patient records. Deliberate or reckless access to personal data without authorisation is unlawful and may result in disciplinary measures, loss of professional registration and, in some cases, criminal prosecution.

The ICO called on healthcare leaders to strengthen organisational culture through clear communication, role-specific data protection training and technical safeguards, including role-based access controls and audit logging. Protecting patient privacy is fundamental to maintaining trust in the healthcare system in the UK.

Why does it matter?

Healthcare records contain some of the most sensitive categories of personal information, including medical histories, diagnoses and treatment details. Even isolated cases of unauthorised access can undermine public trust in healthcare institutions and raise concerns about privacy, confidentiality and professional accountability.

The warning also highlights the growing importance of data governance in healthcare. As health systems become increasingly digital and interconnected, organisations must combine technical safeguards, staff training and strong organisational culture to ensure sensitive information is accessed only when necessary and for legitimate purposes. Maintaining patient trust remains essential to the effective delivery of healthcare services.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Meta launches new AI glasses with Muse Spark assistant

Meta has launched a new generation of AI glasses in partnership with EssilorLuxottica, expanding its push to make wearable AI a mainstream consumer technology.

The new Meta Glasses build on the company’s existing AI eyewear portfolio and will launch with 26 styles across different colours, lenses and frames.

Meta said the glasses include hands-free photo and video capture, open-ear audio, voice control, calls and messaging, live translation and access to Meta AI. The company also said the device offers more than eight hours of battery life, with a charging case providing up to 40 additional hours.

The glasses are the first in Meta’s AI eyewear line to launch with Meta AI powered by Muse Spark from day one. Meta said the model, developed by Meta Superintelligence Labs, gives the assistant stronger multimodal capabilities, including a better understanding of what users are seeing.

The company said the assistant can answer questions, suggest local recommendations, support daily tasks and help users manage schedules hands-free. Meta is also adding features such as dynamic photo capture, pedestrian navigation for displayless glasses and live translation support for 14 additional languages.

The launch reflects growing competition in AI wearables, as technology companies seek new interfaces beyond smartphones. By combining AI assistance with everyday eyewear, Meta is trying to position smart glasses as a practical gateway to always-available AI services.

Why does it matter?

AI glasses move digital assistants closer to the physical world, giving AI systems access to what users see, hear and do throughout the day. That could make AI more useful for translation, navigation, accessibility and hands-free computing, but it also raises questions over privacy, bystander consent, data collection and dependence on platform-controlled AI assistants.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

World Bank says AI could boost Poland’s GDP by up to 12% by 2035

The World Bank Group says AI could increase Poland’s real GDP by between 1.3% and 12.1% by 2035, depending on the pace of business adoption, workforce adaptation and supportive public policies.

In its report, ‘Navigating the Age of AI: Implications for Poland’s Economy‘, the World Bank Group said AI-driven productivity gains could begin emerging within three years. However, with only 8% of Polish firms currently using AI, the report identifies substantial scope for further adoption and productivity gains.

The report suggests that AI‘s most significant impact is likely to be on how work is organised and performed rather than on the overall composition of the economy. The business services sector is expected to be among the first to experience significant change as routine and repetitive tasks become increasingly automated.

The report argues that capturing AI’s benefits will require sustained investment in digital infrastructure, skills development and innovation, alongside labour-market measures designed to support workforce transition and adaptation. The report was developed in collaboration with the Government of Poland, academia, think tanks and international partners in Warsaw.

Why does it matter?

The report highlights the growing importance of AI as a driver of productivity and economic growth. For countries such as Poland, the potential gains from AI will depend not only on technological adoption but also on the ability of businesses, workers and institutions to adapt to changing economic conditions.

The findings also reinforce a broader policy lesson emerging globally: AI’s economic impact is likely to be shaped as much by investments in skills, infrastructure and labour-market resilience as by the technology itself. Countries that successfully combine innovation with workforce development may be better positioned to capture productivity gains while limiting disruption and inequality during the transition.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

UK and Malaysia launch negotiations on digital trade agreement

The UK and Malaysia have launched negotiations on a digital trade agreement aimed at supporting economic growth, creating jobs and expanding cross-border digital services.

The UK government said the talks mark the next step in its effort to strengthen the country’s role as a global hub for services and digital trade. Digital trade encompasses the exchange of goods, services and data that are enabled or delivered through digital technologies.

The proposed agreement could support activities such as UK businesses selling software to overseas customers through online platforms or providing financial consultancy services remotely across borders.

The UK said standalone digital trade agreements can deliver benefits similar to digital trade chapters in traditional free trade agreements while remaining more agile, flexible and quicker to negotiate and implement.

The UK and Malaysia already maintain a growing trade relationship. The UK said bilateral trade was worth £6.4 billion in 2025, and that it exported £730 million in digitally delivered services to Malaysia in 2023. The UK also cited OECD estimates showing that exports to Malaysia supported 31,100 UK jobs in 2022.

The proposed digital trade agreement aims to make trade with Malaysia easier, cheaper, and more secure through cross-border data flows. Other potential benefits include reducing paperwork and border friction through digital systems.

The agreement could also include provisions on personal data protection, intellectual property rights, online consumer protection and cybersecurity cooperation. The UK said the deal aims to strengthen international digital and technology cooperation by supporting responsible innovation in areas such as AI and data.

The government said the agreement could create new partnerships that support more efficient supply chains, infrastructure, and global competitiveness.

UK Trade Minister Chris Bryant said launching negotiations with Malaysia marks an important step in strengthening the UK’s position as a global leader in digital trade.

Bryant said a UK-Malaysia digital trade agreement could unlock new opportunities for British businesses, support high-skilled jobs, and help firms compete in fast-growing, technology-driven markets.

Why does it matter?

Digital trade is becoming a central pillar of international economic policy as services, data flows and digital platforms play a growing role in global commerce. For economies such as the UK, which have strong services sectors, agreements that facilitate cross-border data flows and remote service delivery can create new opportunities for businesses while reducing regulatory and administrative barriers.

The negotiations also reflect a broader shift towards standalone digital trade agreements as a faster and more flexible alternative to traditional trade deals. Beyond commercial benefits, such agreements increasingly address issues including AI governance, cybersecurity, consumer protection and data regulation, making them important instruments for shaping the rules of the digital economy and strengthening international digital cooperation.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

OECD report highlights AI’s growing role in workforce training

AI is beginning to reshape how vocational education and training (VET) systems design qualifications, update curricula and respond to rapidly changing labour market demands, according to a new OECD report.

As economies undergo digital and green transitions, education authorities face growing pressure to ensure training programmes remain aligned with evolving workforce needs.

The report finds that AI is already being used across parts of the vocational education ecosystem to analyse labour market trends, identify emerging skills gaps, map competencies and support curriculum development.

Countries, including the Netherlands, Switzerland, Estonia and Germany, have launched pilot initiatives using AI tools to accelerate and improve qualification design and revision processes.

AI is also being explored as a mechanism for supporting modular learning pathways and micro-credentials in sectors experiencing rapid technological change.

Despite growing interest, the OECD stresses that AI adoption remains uneven and largely experimental. Most systems continue to rely on traditional governance structures involving employers, industry representatives, educators and public authorities.

Rather than replacing existing governance processes, AI is currently being used to support evidence gathering, stakeholder consultations and administrative functions. The organisation notes that countries with strong digital infrastructures and advanced labour market intelligence systems are better positioned to move from isolated pilots to broader implementation.

The report also warns that broader AI adoption could introduce new risks for vocational education systems. Concerns include biased outputs, poor data quality, reduced transparency, cybersecurity vulnerabilities and the possibility of weakening collaborative decision-making.

To address these challenges, the OECD argues that AI deployment must remain human-centred and operate within robust governance frameworks. Maintaining accountability, ensuring stakeholder participation and protecting data integrity will be critical as governments increasingly integrate AI into education and workforce development policies.

Why does it matter?

Vocational education systems play a critical role in preparing workers for changing labour markets. As digitalisation, automation and the green transition reshape skills demand, governments are looking for ways to update qualifications and training programmes more quickly. The OECD report suggests that AI could help education systems identify emerging workforce needs, improve labour market intelligence and make curriculum development more responsive.

At the same time, the report highlights that technological innovation alone is unlikely to solve skills challenges. The effectiveness of AI in vocational education will depend on strong governance, reliable data, stakeholder participation and human oversight. How governments balance efficiency gains with transparency, accountability and trust could shape the future of workforce development and lifelong learning policies.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Crypto groups urge Congress to keep mining and staking tax bill unchanged

Three US digital asset industry groups have urged lawmakers to pass the Tax Clarity for Mining and Staking Act without changes, arguing that the bill would provide clearer tax rules for blockchain validation rewards.

The Blockchain Association, the Crypto Council for Innovation and The Digital Chamber sent a joint letter to the House Ways and Means Committee supporting H.R. 9175 as introduced. The bill, introduced by Representative Mike Carey, would amend the Internal Revenue Code to address the taxation of income from mining and staking digital assets.

Current IRS guidance treats mined and staked rewards as taxable income when received. The industry groups argue that the approach creates uncertainty, liquidity concerns and the risk of ‘phantom income’, where taxpayers may owe tax before they can monetise the assets.

H.R. 9175 would keep newly minted digital assets within ordinary income rules, but would allow taxpayers to elect to defer income recognition until disposal. Under that election, acquisition costs would be capitalised, and gains would be treated as ordinary income when the assets are sold or otherwise disposed of.

The groups oppose a proposed amendment that would impose a five-year limit on deferral. They argue that the cap would add compliance burdens while producing little revenue.

The bill remains before the House Ways and Means Committee. The debate highlights continuing disagreements over how the US tax system should treat digital asset rewards generated through blockchain validation.

Why does it matter?

The bill could shape how mining and staking rewards are taxed in the United States, affecting validators, miners, investors and institutions using blockchain networks. The debate is also about more than timing: it raises questions over whether digital assets should follow existing income-tax concepts or receive tailored rules reflecting how tokens are created, held and monetised. For the crypto industry, clearer rules could reduce compliance uncertainty; for critics, deferral may raise concerns over preferential treatment compared with other financial products.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!