Written by Irene Veth
Dear reader,
Welcome to Publyon’s EU Digital Policy Update (DPU). With the political recess around the corner, we are getting ready for sun, sand and… cocktails. Before that, we are happy to provide you with insights on the latest EU policy trends and developments to keep you informed. Denmark has taken over the Council Presidency from Poland under the motto ‘A Strong Europe in a Changing World’; it is rumbling in the US political domain; and the EU is all ears on quantum. And as always, we dive into the latest AI, cyber, and other digital policy news!
Europe’s bold plan for sustainable growth, the “Clean Industrial Deal”, represents a major shift for EU businesses, especially in energy-intensive sectors. Don’t miss your chance to engage with the Commission to shape this deal and influence the policy direction for the next five years.
The spotlight
The Danish Mary: Danish Presidency puts competitiveness and digital resilience at the heart of the EU agenda
With the motto “A Strong Europe in a Changing World,” Denmark has kicked off its Council Presidency on 1 July with a clear focus on strategic competitiveness, digital resilience, and clean energy. Against the backdrop of global fragmentation and industrial realignment, the Presidency is positioning the EU to “compete without compromising” on democratic values or sustainability. Bold and traditional – just like their signature Danish Mary cocktail.
Denmark is part of the so-called ‘trio of presidencies’, consisting of Poland, Denmark and Cyprus, to steer the work of the Council. Find here more information on their common programme.
On the digital front, Denmark’s programme aims to:
- Advance implementation of the EU’s digital rulebook, with particular attention to enforcement of the Cyber Resilience Act (CRA), Cyber Solidarity Act (CYSOL) and the NIS2 Directive
- Promote a resilient and secure digital infrastructure, including preparing negotiations on the Digital Networks Act to update the European Telecoms Code.
- Drive forward cybersecurity, especially by strengthening operational cooperation, preparing key files such as the revision of the Cybersecurity Act (CSA).
- Champion data-driven innovation and fair competition in line with the EU’s data strategy and Digital Decade targets, such as preparing the European Business Wallet proposal, which will simplify data exchange between authorities and companies.
- Integrate digitalisation into the green transition, recognising its role in energy efficiency, circular economy and environmental monitoring.
Denmark also intends to launch political discussions on the upcoming Digital Fairness Act and, following the Polish example, continue to raise awareness around the implementation burden of the EU’s expanding digital acquis, urging better coordination and simplification at the EU level.
Do you have questions about how these developments impact your business, or how to engage effectively with the (future) Council Presidency? Do not hesitate to reach out to our Director Cathy Kremer at c.kremer@publyon.com.
Impact analysis for your business
Our free policy updates keep you informed, but is that enough? With our tailored EU Digital Policy Updates you’ll receive:
- Custom insights on how upcoming policy changes might impact your business;
- Strategic advice from your dedicated policy consultant on how to turn challenges into opportunities;
- Early warnings about key legislative developments.
Geopolitical corner
In Publyon’s geopolitical corner, we explore how geopolitics intertwines with digital (policy) developments. Read on to learn more about what the hottest topics were this month!
Musk(ow mule) rejects the One Big Beautiful Bill
In early June, Elon Musk rejected the One Big Beautiful Bill (BBB) signed by President Trump on 4 July. The bill includes a tax cut for American businesses and individuals, leading to increased government spending, rising inflation and huge pressure on the job market because of Trump’s restrictive migration policies. It will affect European markets as American investments in Europe will go down, while the investment climate will face severe uncertainties.
In addition, negotiations on a possible US-EU tariff deal are ongoing; we have more insights on that . Over the weekend, Trump threatened to impose a 30% tariff on the EU on all goods coming into the US as of 1 August, separate from the sectoral tariffs. The EU indicated it was reading to retaliate with proportionate countermeasures while leaving the doors open for talks.
The coming weeks will determine whether an agreement can be reached or if Trump will back down from his position, as has happened on previous occasions. This pattern, humorously referred to as “Trump Always Chickens Out” (TACO), has been identified as a tactic that can temporarily manipulate the stock market.
Old-Fashioned American Party
In a reaction to the signing of the Big Beautiful Bill, Elon Musk is planning to launch a new, third political party, the American Party. This announcement roared up the stock market as Tesla shares fell 8% immediately after. Musk aims to feed into anti-Trump sentiment among Republican voters, but it remains to be seen if he can influence conservative Americans in the coming mid-term elections next year. Born in South Africa, he is ineligible to run for President as it requires being a natural-born US citizen.
Unrelated or not, Linda Yaccarino announced on X that she is quitting as CEO of the platform. She had been in the role and didn’t give any particular reason why she was leaving.
AI(maretto) leaves a sour taste
Next to the search for a new CEO, Musk is faced with reputation issues with xAI, the firm behind xAI-bot, Grok. The AI-bot harassed Jews and praised Adolf Hitler in different statements on the platform. xAI stated to act against antisemitism and hate speech, claiming its AI bot is training ‘only truth-seeking’, but ethical questions remain unanswered. EU policymakers were quick to react that new rules for chatbots should be considered within the framework of the upcoming Digital Fairness Act. It remains unclear whether this ruling will cover chatbots entirely.
Policy updates
DAIquiri: Industry demands delay in AI Act implementation
A group of EU industry giants have issued an open letter calling on the European Commission to impose a two-year moratorium on the Artificial Intelligence Act’s (AI Act) enforcement. The group argues that the current regulatory landscape is “unclear, overlapping and increasingly complex,” risking Europe’s AI competitiveness and slowing industrial adoption.
The letter urges the Commission to “stop the clock” before key obligations take effect:
- August 2025 for general-purpose AI model requirements
- August 2026 for high-risk AI systems
Signatories say the delay is needed to allow for clearer guidance, complete standards development, and simplified rules. They argue that both startups and strategic incumbents risk being caught in a compliance web that stifles innovation and capital investment.
While the Commission has so far resisted calls for a delay, Vice President Henna Virkkunen indicated a decision on possible postponement will be made by the end of August, particularly if the Code of Practice for GPAI is not finalised in time.
What should my business look out for?
This marks a new phase in the AI Act debate, as industry mobilises in force for regulatory simplification. The EU AI Champions Initiative, launched alongside the letter, positions itself as a coalition to push for more innovation-friendly governance and investment alignment under the Digital Decade agenda.
What is more on the AI horizon?
The European Commission received the final version of the Codes of Practice (CoP) following its presentation by the Chairs and Vice-Chairs of the workshops organised by the European AI Office. The CoP guides industry and businesses with the implementation and compliance with the AI Act for providers of general-purpose AI models (GPAI). It will be followed up with Commission guidelines on key concepts related to GPAI later in July.
Like a Quiet Storm: EU presents Quantum Strategy
The Commission has officially launched the Quantum Europe Strategy, marking the bloc’s most structured attempt yet to move from research leadership to full industrial deployment in quantum technologies. It will be followed by a Quantum Act proposal in 2026 to invest in (pilot) production facilities.
The strategy sets out a vision to deliver world-leading, fault-tolerant quantum computers and simulators by 2030, backed by a new EU–Member State governance model and anchored in open strategic autonomy.
Key objectives of the strategy include:
- Scaling up quantum computing capacity, with a clear focus on photonic, trapped-ion, and superconducting platforms.
- Establishing preparatory milestones for quantum-classical hybrid infrastructures, including testbeds and cloud access for researchers and SMEs.
- Strengthening Europe’s quantum supply chain, from chip fabrication to cryogenics, including coordinated industrial investments.
- Creating a pan-European governance structure, integrating Horizon Europe, the Chips Joint Undertaking, Digital Europe, and the EuroHPC JU, with tighter alignment between public and private funding streams.
- Developing a European quantum workforce, with targeted investment in education, upskilling and mobility.
What is new for my business?
The strategy positions quantum as both a geopolitical and industrial priority, identifying critical dependencies and pushing for a secure technological base with reduced reliance on non-EU providers. The Commission also signalled it will explore new procurement tools and sovereign funding models, including options for large-scale public-private partnerships.
€15 million investment unlocked for quantum computer
This top-down approach is already being matched with bottom-up momentum: on the same day, European Innovation Council-backed startup QuiX Quantum announced it had secured €15 million in Series A funding to deliver Europe’s first universal photonic quantum computer by 2026. QuiX’s system, based on scalable silicon-nitride photonic chips, is designed for room-temperature operation, making it compatible with data centre deployment. It represents a key step toward fault-tolerant, industrial-grade quantum hardware.
Are you involved in the quantum sector and seeking EU advocacy or funding opportunities? We would love to explore how we can support you – reach out to our Director Cathy Kremer at c.kremer@publyon.com.
GDPR(um): Procedural rules approved by LIBE
On 15 July, the Parliamentary Civil Liberties Committee (LIBE) green-lighted the provisional agreement on procedural rules for the General Data Protection Regulation (GDPR). The rules seek to improve complex cross-border investigations into personal data breaches, introducing overall deadlines for cross-border cases. The EU countries have approved the rules on 27 June – a plenary vote by the European Parliament is foreseen in October.
Ding Dong Data: Commission adopts DSA rules for data sharing
On 2 July, the Commission adopted a delegated act under the Digital Services Act (DSA), defining how vetted researchers can access internal data from very large online platforms and search engines. The rules set out standardised procedures for data sharing, vetting criteria, data catalogues, and confidentiality safeguards. The incoming DSA data access portal will facilitate requests and coordination between researchers, Digital Services Coordinators, and platforms. This move opens a new chapter in platform accountability, enabling unprecedented research into systemic risks such as disinformation, algorithmic harms and manipulation.
Tik(i)Tok hit with €530 million fine
The Irish Data Protection Commission has fined TikTok €530 million over its transfers of EEA user data to China and ordered a suspension of such transfers. The inquiry found that TikTok failed to ensure appropriate safeguards or conduct sufficient assessments before transferring personal data. This case sets an important precedent under the GDPR and reflects heightened EU scrutiny of cross-border data flows involving geopolitical risk.
Martini madness: Review of the Digital Markets Act launched
The Commission has opened a public consultation on the first review of the Digital Markets Act (DMA), with feedback accepted until 24 September. The focus is on assessing the DMA’s early effects and whether it can effectively handle emerging challenges, especially the rapid integration of AI into core platform services. This is the first step toward a broader 2026 review, which could shape the next generation of EU competition enforcement.
Blog
A dual-use approach: the strategic lever for European competitiveness
Dual-use is reshaping the EU’s strategic agenda. With initiatives like the Through the Defence Readiness Omnibus, SAFE, ReArm Europe, and the Clean Industrial Deal, the EU is increasingly aligning industrial and security policy.
Read more
Events
Summer Break Notice
We are signing off for a well-deserved summer break, which means there will be no newsletter in August. But don’t worry: we will be back in September, recharged and ready to deliver the latest digital policy news. Until then, enjoy your summer offline.
We are always eager to have a chat about the latest Digital Policy Update and other digital and tech news with our fellow digital policy enthusiasts. If you are interested in meeting our digital and tech team, do not hesitate to reach out to us.
