EU

AIOLIA framework translates AI principles into system design

An EU-funded project, AIOLIA, is examining how Europe’s approach to trustworthy AI can be applied in practice. Principles such as transparency and accountability are embedded in the AI Act’s binding rules. Turning those principles into design choices remains difficult.

The project focuses on closing that gap by analysing how AI ethics is applied in real systems. Its work supports the implementation of AI Act requirements beyond legal text. Lessons are translated into practical training.

Project coordinator Alexei Grinbaum argues that ethical principles vary widely by context. Engineers are expected to follow them, but implications differ across systems. Bridging the gap requires concrete examples.

AIOLIA analyses ten use cases across multiple domains involving professionals and citizens. The project examines how organisations operationalise ethics under regulatory and organisational constraints. Findings highlight transferable practices without a single model.

Training is central to the initiative, particularly for EU ethics evaluators and researchers working under the AI Act framework. As AI becomes more persuasive, risks around manipulation grow. AIOLIA aims to align ethical language with daily decisions.

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EU renews UK data adequacy decisions until 2031

The European Commission has renewed its two adequacy decisions allowing the continued free flow of personal data between the European Union and the United Kingdom. The decision confirms that UK data protection rules remain essentially equivalent to EU standards.

The adequacy findings cover both the General Data Protection Regulation and the Law Enforcement Directive, enabling personal data to move freely between the European Economic Area and the UK without additional safeguards.

In June 2025, the Commission adopted a temporary six-month extension after the original decisions were due to expire, allowing time to assess changes introduced by the UK’s Data (Use and Access) Act.

The renewal follows a positive opinion from the European Data Protection Board and approval from EU member states through the comitology procedure, completing the formal adoption process.

The renewed decisions include a six-year sunset clause, running until December 2031. A joint review by the Commission and the European Data Protection Board is scheduled after four years.

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EU moves to extend child abuse detection rules

The European Commission has proposed extending the Interim Regulation that allows online service providers to voluntarily detect and report child sexual abuse instead of facing a legal gap once the current rules expire.

These measures would preserve existing safeguards while negotiations on permanent legislation continue.

The Interim Regulation enables providers of certain communication services to identify and remove child sexual abuse material under a temporary exemption from e-Privacy rules.

Without an extension beyond April 2026, voluntary detection would have to stop, making it easier for offenders to share illegal material and groom children online.

According to the Commission, proactive reporting by platforms has played a critical role for more than fifteen years in identifying abuse and supporting criminal investigations. Extending the interim framework until April 2028 is intended to maintain these protections until long-term EU rules are agreed.

The proposal now moves to the European Parliament and the Council, with the Commission urging swift agreement to ensure continued protection for children across the Union.

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EU sets course for digital euro adoption

The Council of the European Union has agreed on its negotiating position on legislation enabling a digital euro while reinforcing the legal status of euro cash.

An initiative that aims to strengthen the resilience of the EU payments system and support strategic autonomy by ensuring public money remains central in a rapidly digitising economy.

Under the proposal, the digital euro would complement cash, rather than replace it, offering a public payment option backed by the European Central Bank. It would function both online and offline, allow payments with a high degree of privacy, and operate in conjunction with private cards and applications.

Limits on holdings would apply to reduce risks to financial stability, with core services provided free to consumers.

The Council position also clarifies compensation rules for payment service providers and requires fair access to mobile device hardware and software. Interchange and merchant fees would be capped during a transitional period, with future pricing linked to actual operational costs.

At the same time, the Council has moved to strengthen the role of cash by safeguarding acceptance across the € area and guaranteeing access for citizens.

Member states would be required to monitor cash availability and prepare contingency measures for situations where electronic payments are disrupted.

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US platforms signal political shift in DSA risk reports

Major online platforms have submitted their 2025 systemic risk assessments under the Digital Services Act as the European Commission moves towards issuing its first fine against a Very Large Online Platform.

The reports arrive amid mounting political friction between Brussels and Washington, placing platform compliance under heightened scrutiny on both regulatory and geopolitical fronts.

Several US-based companies adjusted how risks related to hate speech, misinformation and diversity are framed, reflecting political changes in the US while maintaining formal alignment with EU law.

Meta softened enforcement language, reclassified hate speech under broader categories and reduced visibility of civil rights structures, while continuing to emphasise freedom of expression as a guiding principle.

Google and YouTube similarly narrowed references to misinformation, replaced established terminology with less charged language and limited enforcement narratives to cases involving severe harm.

LinkedIn followed comparable patterns, removing references to earlier commitments on health misinformation, civic integrity and EU voluntary codes that have since been integrated into the DSA framework.

X largely retained its prior approach, although its report continues to reference cooperation with governments and civil society that contrasts with the platform’s public positioning.

TikTok diverged from other platforms by expanding disclosures on hate speech, election integrity and fact-checking, likely reflecting its vulnerability to regulatory action in both the EU and the US.

European regulators are expected to assess whether these shifts represent genuine risk mitigation or strategic alignment with US political priorities.

As systemic risk reports increasingly inform enforcement decisions, subtle changes in language, scope and emphasis may carry regulatory consequences well beyond their formal compliance function.

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EU approves €1.8 billion clean energy boost through Modernisation Fund

The European Commission and the European Investment Bank have approved €1.8 billion in new clean energy funding under the EU Modernisation Fund, supporting 45 projects across 12 member states.

Portugal receives funding for the first time after becoming eligible in 2024, while total support from the Fund since 2021 has now reached €20.7 billion across 294 investments.

Financed through revenues from the EU Emissions Trading System, the Fund targets high-impact projects that reduce greenhouse gas emissions in energy, industry and transport, while improving energy efficiency and strengthening energy security.

In 2025 alone, total disbursements reached €5.46 billion, with significant allocations directed to Czechia, Poland, Romania and Hungary, alongside support for Greece, Portugal and Slovenia.

All projects approved during 2025 focus on renewable electricity generation, energy storage, grid modernisation and efficiency upgrades in public infrastructure and industry.

The Modernisation Fund plays a central role in supporting national climate plans, reducing dependence on fossil fuel imports and advancing the EU’s Fit for 55 and REPowerEU objectives, with further investment proposals scheduled for early 2026.

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UK-EU cyber dialogue strengthens policy alignment

The third UK-EU Cyber Dialogue was held in Brussels on 9 and 10 December 2025, bringing together senior officials under the UK-EU Trade and Cooperation Agreement to strengthen cooperation on cybersecurity and digital resilience.

The meeting was co-chaired by Andrew Whittaker from the UK Foreign, Commonwealth and Development Office and Irfan Hemani from the Department for Science, Innovation and Technology, alongside EU representatives from the European External Action Service and the European Commission.

Officials from Europol and ENISA also participated, reinforcing operational and regulatory coordination rather than fragmented policy approaches.

Discussions covered cyber legislation, deterrence strategies, countering cybercrime, incident response and cyber capacity development, with an emphasis on maintaining strong security standards while reducing unnecessary compliance burdens on industry.

Both sides confirmed that the next UK-EU Cyber Dialogue will take place in London in 2026.

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Europe risks falling behind without telecom scale, Telefónica says

Telefónica has called for a shift in Europe’s telecommunications policy, arguing that market fragmentation is undermining investment, digital competitiveness, and the continent’s technological sovereignty, according to a new blog post from the company.

In the post, Telefónica says Europe’s emphasis on maximising retail competition has produced a highly fragmented operator landscape. It cites industry data showing the average European operator serves around five million customers, far fewer than peers in the United States or China.

The company argues that this lack of scale explains Europe’s lower per-capita investment in telecoms infrastructure and is slowing the rollout of technologies such as standalone 5G, fibre networks, and sovereign cloud and AI platforms.

Telefónica points to recent reports by Mario Draghi and Enrico Letta as signs of a policy shift, with EU institutions placing greater weight on investment capacity, resilience, and dynamic efficiency alongside traditional competition objectives.

The blog post concludes that Europe faces a strategic choice between preserving fragmented markets or enabling responsible consolidation. Telefónica says carefully regulated mergers could support sustainability, reduce regional digital divides, and strengthen Europe’s digital infrastructure.

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EU moves to tax low-value e-commerce parcels

The European Commission welcomed the decision by EU Member States to introduce a €3 customs duty on low-value e-commerce parcels arriving from third countries.

A measure, which enters into force in July 2026, that applies to items valued below €150 and aims to restore fair competition instead of allowing online imports to benefit from longstanding exemptions.

The move responds to the rapid growth of cross-border e-commerce shipments and will operate as a temporary solution until the EU Customs Data Hub becomes fully operational in 2028.

Until then, the Council and the Commission will coordinate legal changes and IT systems to ensure smooth implementation and effective customs supervision across the Union.

Once the Customs Data Hub is in place, a permanent customs duty regime will replace the temporary measure, offering authorities a comprehensive view of goods entering and leaving the EU.

The €3 duty applies only to parcels sent directly to consumers and remains separate from ongoing negotiations on a handling fee intended to offset the rising operational costs faced by customs authorities.

The reform builds on earlier Commission proposals to remove duty exemptions for low-value parcels and forms part of the most extensive overhaul of EU customs rules in decades.

European institutions argue that modernised customs controls are essential instead of relying on outdated frameworks, particularly as global e-commerce volumes continue to expand.

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AI use grows among EU enterprises in 2025

In 2025, one in five EU enterprises with at least ten employees reported using AI technologies, marking a significant rise from 13.5% in 2024. AI adoption has more than doubled since 2021, showing its increasing use in business across the EU.

Nordic countries led the way, with Denmark at 42%, Finland at 37.8%, and Sweden at 35%. In contrast, Romania, Poland, and Bulgaria had the lowest adoption rates, ranging from 5.2% to 8.5%.

Almost all EU member states recorded increases compared with the previous year, with Denmark, Finland, and Lithuania showing the most significant gains.

Enterprises mainly used AI to analyse text, generate multimedia, produce language, and convert speech into machine-readable formats. Analysing written language saw the most significant growth in 2025, followed by content generation, highlighting AI’s expanding role in communication and data processing.

Rising AI adoption is also linked to efficiency gains and innovation across EU businesses. Companies report using AI to streamline operations, support decision-making, and enhance customer engagement, signalling broader economic and technological impacts.

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