EU

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.

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

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.

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

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.

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

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.

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

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.

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

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.

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

EU tightens customs rules on low-cost e-commerce parcels

EU member states have agreed to introduce a €3 customs duty on low-value e-commerce parcels entering the bloc, marking a significant shift in how online imports are taxed. The new duty will apply to individual items worth less than €150 that are shipped directly to the EU consumers from non-EU countries and is set to take effect in July 2026.

The European Commission says the measure responds to the rapid growth of e-commerce imports and aims to level the playing field between online sellers based outside the EU and European retailers, which are already subject to customs duties and other costs. The duty is designed as a temporary solution ahead of broader reforms of the EU customs system.

The interim regime will remain in place until the planned EU Customs Data Hub becomes operational in 2028. Once established, the hub is expected to provide customs authorities with a comprehensive, real-time overview of goods entering and leaving the EU, allowing for a permanent and more integrated customs duty framework for e-commerce.

The €3 customs duty is separate from a proposed EU-wide handling fee on e-commerce parcels, which is still under negotiation. While the duty addresses competitive imbalances, the handling fee would compensate customs authorities for the rising costs of supervising the growing volume of small parcels.

Under current plans, the fee could take effect later in 2026, pending an agreement between the EU institutions.

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

EU supports Germany’s semiconductor expansion

The European Commission has approved €623 million in German support for two first-of-a-kind semiconductor factories in Dresden and Erfurt.

A funding that will help GlobalFoundries expand its site to create new wafer capacity and will assist X-FAB in building an open foundry designed for advanced micro-electromechanical systems.

Both projects aim to increase Europe’s strategic autonomy in chip production, rather than allowing dependence on non-European suppliers to deepen.

The facility planned by GlobalFoundries will adapt technologies developed under the IPCEI Microelectronics and Communication Technologies framework for dual-use needs in aerospace, defence and critical infrastructure.

The manufacturing process will take place entirely within the EU to meet strict security and reliability demands. X-FAB’s project will offer services that European firms, including start-ups and small companies, currently source from abroad.

A new plant that is expected to begin commercial operation by 2029 and will introduce manufacturing capabilities not yet available in Europe.

In return for public support, both companies will pursue innovation programmes, strengthen cross-border cooperation, and apply priority-rated orders during supply shortages, in line with the European Chips Act.

They will also develop training schemes to expand the pool of skilled workers, rather than relying on the limited existing capacity. Each company has committed to seeking recognition for its facilities as Open EU Foundries.

The Commission concluded that the aid packages comply with the EU State aid rules because they encourage essential economic activity, show apparent incentive effects and remain proportionate to funding gaps identified during assessment.

These measures form part of Europe’s broader shift toward a more resilient semiconductor ecosystem and follow earlier decisions supporting similar investments across member states.

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

EU survey shows strong public backing for digital literacy in schools

A new Eurobarometer survey finds that Europeans want digital skills to hold the same status in schools as reading, mathematics and science.

Citizens view digital competence as essential for learning, future employment and informed participation in public life.

Nine in ten respondents believe that schools should guide pupils on how to handle the harmful effects of digital technologies on their mental health and well-being, rather than treating such issues as secondary concerns.

Most Europeans also support a more structured approach to online information. Eight in ten say digital literacy helps them avoid misinformation, while nearly nine in ten want teachers to be fully prepared to show students how to recognise false content.

A majority continues to favour restrictions on smartphones in schools, yet an even larger share supports the use of digital tools specifically designed for learning.

More than half find that AI brings both opportunities and risks for classrooms, which they believe should be examined in greater depth.

Almost half want the EU to shape standards for the use of educational technologies, including rules on AI and data protection.

The findings will inform the European Commission’s 2030 Roadmap on digital education and skills, scheduled for release next year as part of the Union of Skills initiative.

A survey carried out across all member states reflects a growing expectation that digital education should become a central pillar of Europe’s teaching systems, rather than an optional enhancement.

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

Norges Bank says digital krone not required for now

Norway’s central bank has concluded that a central bank digital currency is not needed for now, ending several years of research and reaffirming that the country’s existing payment system remains secure, efficient, and widely used.

Norges Bank stated that it found no current requirement for a digital krone to maintain confidence in payments. Cash usage in Norway is among the lowest globally, but authorities argue the present system continues to serve consumers, merchants, and banks effectively.

The decision is not final. Governor Ida Wolden Bache said the assessment reflects timing rather than a rejection of CBDCs, noting the bank could introduce one if conditions change or if new risks emerge in the domestic payments landscape.

Norges Bank continues to examine both retail and wholesale models under the broader EU AI Act framework for digital resilience. It also sees potential in tokenisation, which could deliver efficiency gains and lower settlement risk even if a full CBDC is not introduced.

Experiments with tokenised platforms will continue in collaboration with industry partners. At the same time, the bank prepares a new report for early next year and monitors international work on shared digital currency infrastructure, including a possible digital €.

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