EU

Singapore and the EU advance their digital partnership

The European Union met Singapore in Brussels for the second Digital Partnership Council, reinforcing a joint ambition to strengthen cooperation across a broad set of digital priorities.

Both sides expressed a shared interest in improving competitiveness, expanding innovation and shaping common approaches to digital rules instead of relying on fragmented national frameworks.

Discussions covered AI, cybersecurity, online safety, data flows, digital identities, semiconductors and quantum technologies.

Officials highlighted the importance of administrative arrangements in AI safety. They explored potential future cooperation on language models, including the EU’s work on the Alliance for Language Technologies and Singapore’s Sea-Lion initiative.

Efforts to protect consumers and support minors online were highlighted, alongside the potential role of age verification tools.

Further exchanges focused on trust services and the interoperability of digital identity systems, as well as collaborative research on semiconductors and quantum technologies.

Both sides emphasised the importance of robust cyber resilience and ongoing evaluation of cybersecurity risks, rather than relying on reactive measures. The recently signed Digital Trade Agreement was welcomed for improving legal certainty, building consumer trust and reducing barriers to digital commerce.

The meeting between the EU and Singapore confirmed the importance of the partnership in supporting economic security, strengthening research capacity and increasing resilience in critical technologies.

It also reflected the wider priorities outlined in the European Commission’s International Digital Strategy, which placed particular emphasis on cooperation with Asian partners across emerging technologies and digital governance.

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Italy secures new EU support for growth and reform

The European Commission has endorsed Italy’s latest request for funding under the Recovery and Resilience Facility, marking an important step in the country’s economic modernisation.

An approval that covers 12.8 billion euros, combining grants and loans, and supports efforts to strengthen competitiveness and long-term growth across key sectors of national life.

Italy completed 32 milestones and targets connected to the eighth instalment, enabling progress in public administration, procurement, employment, education, research, tourism, renewable energy and the circular economy.

Thousands of schools have gained new resources to improve multilingual learning and build stronger skills in science, technology, engineering, arts and mathematics.

Many primary and secondary schools have also secured modern digital tools to enhance teaching quality instead of relying on outdated systems.

Health research forms another major part of the package. Projects focused on rare diseases, cancer and other high-impact conditions have gained fresh funding to support scientific work and improve treatment pathways.

These measures contribute to a broader transformation programme financed through 194.4 billion euros, representing one of the largest recovery plans in the EU.

A four-week review by the Economic and Financial Committee will follow before the payment can be released. Once completed, Italy’s total receipts will exceed 153 billion euros, covering more than 70 percent of its full Recovery and Resilience Facility allocation.

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EU members raise concerns over the Digital Networks Act

Six EU member states urged the Union to reconsider the direction of the Digital Networks Act by asking for greater room for national decision-making.

Their joint position emphasised the wish to retain authority over frequency management and questioned proposals that could expand telecom rules into the digital services sector.

An intervention that followed previous debates at the ministerial level, where governments signalled reluctance to introduce new interconnection measures and stressed the need to consider the specific roles of different actors across the value chain instead of applying a single regulatory model to all.

Consumer groups and business organisations voiced further doubts as plans for network fees resurfaced in recent discussions. They argued that earlier consultations had already shown major risks for competition, innovation, and net neutrality, making renewed consideration unnecessary.

The US–EU trade agreement added another layer by including a clause that commits the EU to avoid such fees, leaving open how the Commission will balance domestic expectations with international obligations.

The Digital Networks Act faced an additional setback when the EU’s Regulatory Scrutiny Board delivered a negative opinion about its preparedness. That view disrupted earlier hopes of releasing a draft before the end of the year.

Even so, the Commission is expected to present an updated proposal in January 2026, setting the stage for one of the most difficult legislative debates of the coming year.

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EU-South Korea digital partnership enhances collaboration

The European Union and the Republic of Korea strengthened their digital partnership during the third Digital Partnership Council meeting in Seoul, where both sides emphasised the value of deeper cooperation in advanced technologies.

The discussions focused on how joint research on semiconductors, 6G, AI and quantum technologies can support competitiveness and provide broader economic benefits.

Both sides agreed to continue collaborative work on semiconductor research to advance more efficient chips suitable for AI and automated mobility. Quantum research under Horizon Europe is set to expand through shared expertise and long-term cooperation.

Regulatory alignment on AI will progress through dialogue on conformity assessment results linked to the EU AI Act, supported by joint work on innovation, standardisation and safety evaluation.

Information exchange on emerging data spaces is also expected to grow, with both partners assessing whether a dedicated working group could enhance interoperability.

Cyber cooperation remains a priority, covering threat information sharing, software supply chain security and the safety of connected devices, combined with efforts to strengthen skills and explore new research.

Engagement in international standardisation bodies such as the International Telecommunications Union will continue to support broader global alignment. The two partners plan to meet again in Brussels in 2026 to assess progress.

The partnership reflects broader EU objectives in the Indo-Pacific and supports the goals of the International Digital Strategy.

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EU moves forward on new online child protection rules

EU member states reached a common position on a regulation intended to reduce online child sexual abuse.

The proposal introduces obligations for digital service providers to prevent the spread of harmful content and to respond when national authorities require the removal, blocking or delisting of material.

A framework that requires providers to assess how their services could be misused and to adopt measures that lower the risk.

Authorities will classify services into three categories based on objective criteria, allowing targeted obligations for higher-risk environments. Victims will be able to request assistance when seeking the removal or disabling of material that concerns them.

The regulation establishes an EU Centre on Child Sexual Abuse, which will support national authorities, process reports from companies and maintain a database of indicators. The Centre will also work with Europol to ensure that relevant information reaches law enforcement bodies in member states.

The Council position makes permanent the voluntary activities already carried out by companies, including scanning and reporting, which were previously supported by a temporary exemption.

Formal negotiations with the European Parliament can now begin with the aim of adopting the final regulation.

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SAP expands sovereign cloud vision with EU AI Cloud

SAP introduced the EU AI Cloud as part of a unified plan that aims to support Europe’s digital sovereignty goals.

The offering consolidates SAP’s existing sovereign cloud work under one structure and provides organisations with a way to meet strict regulatory and operational needs, ensuring full EU data residency.

Customers can select deployment options that match their level of required control, ranging from SAP’s European data centres to on-site infrastructure.

SAP is also expanding its partnership with Cohere to integrate advanced multimodal and agentic AI features through Cohere North.

Incorporation into SAP Business Technology Platform enables enterprises with data residency constraints to apply AI within core processes without undermining compliance or performance.

A collaboration that is intended to improve insight generation and decision support across a wide range of industries.

EU AI Cloud is backed by a broad ecosystem that includes Cohere, Mistral AI, OpenAI and other partners whose models and applications can be accessed through SAP BTP.

European enterprises and public bodies gain access to routes for developing and deploying AI tools while maintaining flexibility and sovereignty.

The range of options includes SAP Sovereign Cloud, customer-operated on-site deployments and, where chosen, commercial services on selected hyperscalers with sovereignty controls. The approach also includes Delos Cloud for organisations in Germany that require dedicated public sector safeguards.

SAP positions the initiative as a means to advance AI adoption in Europe, aligning with regional standards on data protection and operational independence.

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EU faces new battles over digital rights

EU policy debates intensified after Denmark abandoned plans for mandatory mass scanning in the draft Child Sexual Abuse Regulation. Advocates welcomed the shift yet warned that new age checks and potential app bans still threaten privacy.

France and the UK advanced consultations on good practice guidelines for cyber intrusion firms, seeking more explicit rules for industry responsibility. Civil society groups also marked two years of the Digital Services Act by reflecting on enforcement experience and future challenges.

Campaigners highlighted rising concerns about tech-facilitated gender violence during the 16 Days initiative. The Centre for Democracy and Technology launched fresh resources stressing encryption protection, effective remedies and more decisive action against gendered misinformation.

CDT Europe also criticised the Commission’s digital omnibus package for weakening safeguards under laws, including the AI Act. The group urged firm enforcement of existing frameworks while exploring better redress options for AI-related harms in the EU legislation.

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Scarcity gives Europe an edge in the AI race

Europe’s constrained energy supply and strict regulations are emerging as unlikely strengths in the global race to expand AI infrastructure. Limited power access and careful planning are encouraging more resilient, future-ready data-centre designs that appeal to long-term investors.

Countries such as the Nordics, Spain and Italy are drawing interest due to stronger renewable capacity and shorter grid-connection times, while the UK, Germany and the Netherlands face greater congestion.

Shifting to a ‘first ready, first connected’ model aims to curb speculation and speed up delivery of viable projects.

Europe’s biggest opportunity lies in cloud-focused facilities and AI inference, which analysts expect to account for most AI demand and must often remain within regional borders.

Tighter rules may slow construction, yet they reduce the risk of stranded assets and support sustainable sites that strengthen Europe’s investment case.

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EU pushes for stronger powers in delayed customs reform

EU lawmakers have accused national governments of stalling a major customs overhaul aimed at tackling the rise in low-cost parcels from China. Parliament’s lead negotiator Dirk Gotink argues that only stronger EU-level powers can help authorities regain control of soaring e-commerce volumes.

Talks have slowed over a proposed e-commerce data hub linking national customs services. Parliament wants European prosecutors to gain direct access to the hub, while capitals insist that national authorities must remain the gatekeepers to sensitive information.

Gotink warns that limiting access would undermine efforts to stop non-compliant goods such as those from China, entering the single market. Senior MEP Anna Cavazzini echoes the concern, saying EU-level oversight is essential to keep consumers safer and improve coordination across borders.

The Danish Council Presidency aims to conclude negotiations in mid-December but concedes that major disputes remain. Trade groups urge a swift deal, arguing that a modernised customs system must support enforcement against surging online imports.

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EU unveils AI whistleblower tool

The European Commission has launched a confidential tool enabling insiders at AI developers to report suspected rule breaches. The channel forms part of wider efforts to prepare for enforcement of the EU AI Act, which will introduce strict obligations for model providers.

Legal protections for users of the tool will only apply from August 2026, leaving early whistleblowers exposed to employer retaliation until the Act’s relevant provisions take effect. The Commission acknowledges the gap and stresses strong encryption to safeguard identities.

Advocates say the channel still offers meaningful progress. Karl Koch, founder of the AI whistleblower initiative, argues that existing EU whistleblowing rules on product safety may already cover certain AI-related concerns, potentially offering partial protection.

Koch also notes parallels with US practice, where regulators accept overseas tips despite limited powers to shield informants. The Commission’s transparency about current limitations has been welcomed by experts who view the tool as an important foundation for long-term AI oversight.

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