EU

Gender imbalance in EU’s tech industry

A new report has revealed significant gender imbalances across the EU’s tech ecosystem, from education to executive positions. The GENDEX index, funded by the European Innovation Council, found that women remain underrepresented in STEM fields, with only 42% of graduates in 2022 being women.

The imbalance is particularly evident in the information and communication technology (ICT) sector, where just 24% of graduates are women.

However, this discrepancy leads to fewer women founders in deep tech startups, with only one in five European tech companies being led by women over the past decade.

Women’s representation in academia is also limited, comprising just 31% of researchers and scientists in deep tech. Furthermore, only 24% of patent applications are submitted by women.

The report suggests that a narrowing funnel of opportunities negatively impacts the entire tech sector, as talented women are lost along the way. Men continue to dominate leadership positions, with women holding only about 30% of roles in European companies.

The gender gap is most evident at the board level, particularly in male-founded companies.

The study also highlighted the challenges female entrepreneurs face in securing funding. Female-led teams receive just 1% of venture capital funding, and when they do secure investments, they often face less favourable terms and longer waits compared to male-led teams.

The report recommends that investors require gender diversity reporting before providing funding and prioritise women-led companies to address these disparities.

Additionally, experts argue that structural changes are necessary to create a more balanced and effective tech ecosystem, pointing out that gender diversity can lead to better results for companies and the industry as a whole.

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EU set to implement Entry/Exit System for border control

The European Union has reached an agreement to finally implement the long-awaited Entry/Exit System (EES), which will modernise border checks for short-stay travellers.

After several delays due to technical issues and a lack of readiness, the system is now set to begin operations in autumn, though a specific launch date has yet to be determined.

Member states will have the option to introduce the system all at once or in phases over a six-month transition period, with the full implementation to be completed by the end of the transition.

The EES, which was first proposed in 2016, aims to replace traditional passport stamping by collecting biometric data from non-EU visitors, including photos and fingerprints.

This data will be recorded each time visitors enter or exit the Schengen Area. The system is designed to improve border control, help authorities identify overstayers, and prevent identity fraud.

While Cyprus and Ireland will not participate in the new system, all other EU member states and four Schengen-associated countries will be involved.

Poland, which currently holds the EU Council’s rotating presidency, will lead negotiations with the European Parliament to finalise the law.

Tomasz Siemoniak, Poland’s Minister for Internal Affairs, indicated that a final agreement should be reached smoothly, with October set as the target for full implementation.

The EES is expected to provide authorities with new tools to enhance security and better manage borders within the Schengen Area.

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FCC raises concerns over EU’s online regulation impact on free speech

The chairman of the US Federal Communications Commission (FCC) has criticised the EU’s Digital Services Act (DSA), warning it could excessively limit free speech.

Speaking at the Mobile World Congress in Barcelona, Brendan Carr argued that the European Union‘s content moderation law is incompatible with America’s free speech tradition and puts undue pressure on US tech firms operating in Europe.

Carr’s comments reflect growing tensions between the United States and Europe over digital regulation. The FCC chairman accused the DSA of promoting censorship, echoing concerns raised by US Vice President JD Vance at an AI summit in Paris.

The Trump administration has made free speech a key policy focus, with President Trump vowing to combat online censorship and warning of scrutiny over the DSA’s impact on US businesses.

Tech giants such as Apple, Meta, and Alphabet have been asked to explain how they plan to comply with both the DSA and US free speech principles.

Some companies are considering geofencing to create separate platforms for different regions, though Carr questioned whether this would be practical.

The European Commission defended the law, stating it aims to protect fundamental rights and ensure a safer online environment.

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European groups back new cybersecurity label for cloud services

Twenty-three industry groups across Europe have urged EU officials to approve a draft cybersecurity certification for cloud services.

The certification scheme, which was introduced in 2020 by the European Union Agency for Cybersecurity (ENISA), aims to provide governments and businesses with reliable, secure cloud service providers.

It has been under revision since last year, with changes that favour major tech firms such as Microsoft, Google, and Amazon.

The groups, including the American Chamber of Commerce and various EU trade associations, argue that the updated draft, which will be finalised in March 2024, strikes a balance between robust security standards and an open market.

These revisions removed political provisions, such as requirements for US tech companies to partner with EU firms for data storage, focusing instead on technical security criteria.

Despite this, concerns linger about the European Commission potentially delaying or even scrapping the certification scheme altogether. The groups have strongly urged the EU to push forward with its adoption, believing it will support Europe’s digital economy while promoting secure cloud computing solutions.

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European Commission unveils major clean industry support package

The European Commission has proposed a €100 billion plan to support clean manufacturing across the EU as part of its broader strategy to enhance industrial competitiveness.

The Clean Industrial Deal aims to help energy-intensive industries tackle high costs and complex regulations while competing with global rivals.

The plan includes new guarantee schemes, developed in partnership with the European Investment Bank, to lower costs for long-term renewable energy contracts and provide financial support for grid manufacturers.

A proposed EU Critical Raw Material Centre would coordinate the joint purchase of essential metals and minerals needed for the green transition.

Brussels’ initiative is part of a wider effort to streamline bureaucracy, adjust carbon duties, and create a more business-friendly environment for clean industries.

The proposal now awaits approval from the European Parliament and a reinforced majority of EU member states before it can take effect.

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Europe must step ap AI investment, warns Deutsche Telekom CEO

Deutsche Telekom CEO Tim Hoettges has urged Germany and Europe to invest more in artificial intelligence and data centres to stay competitive with the US and Asia. Speaking after the release of the company’s annual results, Hoettges stressed the need for Europe to increase its computing power, citing a growing demand for data centres that he expects to rise by at least 30%. Deutsche Telekom is already expanding its infrastructure with plans to build four new data centres in Europe, aiming to create one gigawatt of capacity.

Hoettges also emphasised the importance of AI for Europe’s economic growth and sovereignty in the digital age. His comments come as Europe strives to catch up with major AI investments made by the US, with the European Commission pledging to mobilise 200 billion euros for AI development. This contrasts with the US, where private companies have committed up to $500 billion to AI infrastructure.

The call for greater AI investment follows a wave of AI advancements, such as China’s DeepSeek model, which has begun to challenge Western competitors. Hoettges warned that Germany must act quickly or risk falling behind in the global AI race.

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Nokia’s $2.3 billion Infinera deal approved by EU

The European Commission has approved Nokia’s $2.3 billion acquisition of US-based Infinera, confirming the deal raises no competition concerns.

The approval was granted unconditionally, as the combined company will hold only a moderate share of the optical transport equipment market.

Nokia’s takeover of Infinera, announced last June, will make it the second-largest player in optical networking with a 20% market share, trailing Huawei.

Western firms have struggled to compete in China, giving Huawei a dominant position in the sector.

The acquisition is expected to boost Nokia’s ability to sell networking equipment to major tech firms such as Amazon, Alphabet, and Microsoft. These companies are expanding their data centre infrastructure to support the growing demand for AI services.

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Estonia introduces AI Leap programme for education

Estonia has launched a new initiative aimed at preparing students and teachers for the age of AI. The ‘AI Leap’ programme will provide access to popular AI chatbots, including an educational version of ChatGPT, to help build digital skills. Starting in September 2025, the programme will involve 20,000 high school students and 3,000 teachers, with plans to expand to vocational schools and an additional 38,000 students and 3,000 teachers in 2026.

Education Minister Kristina Kallas emphasised that Estonia’s economic competitiveness depends on how well the country adapts to AI, ensuring young people are equipped for the future. As part of the initiative, Estonia will also invest in teacher training to support the integration of AI in classrooms.

The programme is a public-private partnership, with negotiations underway with major AI companies, including OpenAI and Anthropic. OpenAI has expressed its pride in collaborating with Estonia to bring ChatGPT Edu to the education system, aiming to better prepare students for the workforce. Estonia’s use of AI in education is seen as a model that other countries may follow as the EU pushes to increase digital skills across Europe by 2030.

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Italy demands 12.5 million euros from X over tax probe

Italy is demanding 12.5 million euros ($13 million) from Elon Musk’s social network X following a tax probe linked to a broader investigation into Meta. The case, which focuses on value-added tax (VAT) claims for the years 2016 to 2022, is significant as it raises questions about how social networks provide access to their services. Italian tax authorities argue that user registrations on platforms like X, Facebook, and Instagram should be considered taxable transactions, as they involve the exchange of personal data for a membership account.

This case could have major implications for the tech sector in Europe, potentially altering the way business models are structured in the 27-nation European Union, as VAT is a harmonised EU tax. Although the claim of 12.5 million euros is a small amount for X, the outcome of this case could influence future tax policies across the region. Both X and Meta must respond to the tax authority’s observations by late March or early April, with the option to either accept the charges or challenge them in court.

The investigation also comes at a sensitive time, as US President Donald Trump has criticised digital taxes in countries like Italy that target US tech firms. Musk, who has strong ties with Italian Prime Minister Giorgia Meloni, is also keen to expand his Starlink business in the country. If no agreement is reached, Italy’s Revenue Agency may pursue a lengthy judicial review, which could take up to 10 years to resolve.

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Nvidia takes legal action against EU antitrust investigation

Nvidia has filed a lawsuit against the European Commission for accepting a referral from Italy to review its acquisition of AI startup Run:ai. The US chipmaker argues that the Commission violated a recent court ruling that restricts its powers over minor transactions. This case follows growing concerns over the Commission’s use of Article 22, which allows it to review smaller mergers that fall below EU merger thresholds, a move companies have criticised as overreach.

While the case will not impact the approval of the AI‘s deal, which was cleared in December, a ruling in favour of Nvidia could curb the European Commission’s ability to regulate similar transactions in the future. Nvidia argues that the decision breaches legal principles, including proportionality and equal treatment, and undermines legal certainty for businesses operating in the EU.

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