Written by Cathy Kremer
Dear reader,
Welcome to Publyon’s EU Digital Policy Update (DPU). As the autumn creeps in, we are back with the hottest insights on the latest EU policy trends and developments to keep you informed. In the Work Programme for 2026, the European Commission presents the upcoming (non-) legislative proposals for the coming year. Meanwhile, drones (again!) and semiconductors are featured in our geopolitical corner. 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
Work programme 2026 drives competition
Following President von der Leyen’s State of the Union speech last month, the Commission launched its Work Programme on 21 October, covering policy initiatives for the coming year 2026. Since its publication last year, the Draghi report has probably been the most quoted policy piece in the Brussels bubble and EU capitals. The proposals on competitiveness and innovation inspired the Commission to plan different ways to boost the EU’s single market competition, as the think tank EPIC calculated that only 11% of Draghi’s recommendations were implemented by the EU Commission one year after their publication.
28th regime to rule them all
To increase European competitiveness, the Commission works on a proposal such as the 28th regime. This proposal intends to unify national legal frameworks and harmonise existing rules into one pan-European legal framework, enabling innovators to operate in other member states with fewer administrative burdens and costs.
Innovation for competitiveness
The European Innovation Act should also drive startups, scale-ups, and SMEs to innovate by improving access to finance and markets. This can be achieved through updating the European venture capital funds Regulation, removing administrative barriers, and cutting red tape with omnibus packages on taxation and energy usage. This and previous announced initiatives such as the Cloud and AI Development Act, Quantum Act and Biotech Act (foreseen in the first half of 2026) should drive innovation and enable companies to use private capital, unlocking new economic opportunities.
Securing defence sector
Besides cutting red tape and simplifying administration, the Commission also foresees improving procurement processes for the defence and security sectors. This will make it easier for companies to secure public contracts and incentivise technology investments and European R&D.
Following this, it will be interesting to follow the launch of the Qualitative Military Edge programme, the European critical communication system, and strengthening Europol and how these proposals can benefit companies, big and small. The European Commission plans to use its funds for dual-use infrastructure and goods (covered earlier this year), which might set the stage for a promising year to come for the security industry.
Next to these most relevant files, the Commission will also evaluate existing legislation and run a fitness check to improve topical issues such as the Chips Act and and customs enforcement of intellectual property rights. In the last quarter of 2026, the European Commission foresees the launch of the Digital Fairness Act, which will play a key role in the use of digital technology, platform algorithms and addictive designs to protect consumers vulnerability.
Impact analysis for your business
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Geopolitical corner
In Publyon’s geopolitical corner, we explore how geopolitics intertwines with digital policy developments. Read on to learn more about what shaped the month’s debates.
Europe’s skies under watch: Brussels moves on drone defence
The European Commission and High Representative have presented a new Defence Readiness Roadmap 2030, outlining plans for a European Drone Defence Initiative that is expected to be operational by the end of 2027. The initiative forms part of a broader strategy to reinforce Europe’s eastern borders, strengthen air and space surveillance, and address capability gaps in detecting and neutralising hostile drones.
The announcement comes as several Member States report a rise in drone incursions near airports and critical infrastructure, with some incidents linked to hybrid operations attributed to Russia. The roadmap signals that the EU now views drone defence as a strategic necessity rather than a niche capability.
The increasing use of counter-drone measures within civilian settings, however, presents complex legal and operational questions. National governments are beginning to define when such tools can be deployed and who bears responsibility if interception efforts go wrong. In this respect, the initiative illustrates how closely security policy is becoming intertwined with emerging technologies and regulatory frameworks.
Semiconductors and strategy: the Dutch recalibration
The Netherlands continues to play a pivotal role in Europe’s semiconductor strategy. Following the government’s decision requiring Chinese-owned Nexperia to divest from a local manufacturing site, The Hague has taken a more assertive stance on investment screening and technological sovereignty. At the same time, it is directing greater attention towards semiconductor production linked to defence and critical infrastructure, in line with the ambitions of the Chips Act.
This dual approach highlights a shift towards integrating industrial and security priorities. Dutch policymakers are seeking to ensure that Europe retains reliable access to essential technologies for applications ranging from radar and sensors to electronic warfare systems. The move also reflects growing coordination between national and EU-level efforts to safeguard sensitive supply chains and strengthen Europe’s position in a geopolitically contested industry.
Together, these developments underscore how Europe’s pursuit of technological sovereignty is becoming inseparable from its security ambitions, marking a gradual but decisive convergence between digital innovation and strategic defence.
Policy updates
Commission sets new direction with twin AI strategies
On 11 October, the European Commission presented two new complementary roadmaps for artificial intelligence: the Apply AI Strategy and AI in Science Strategy. The first strategy aims to speed up AI use in strategic industries and public services, mobilising around €1 billion, while the second strategy focuses on making Europe a leader in AI-driven research.
The Apply AI Strategy annexes outline that the Commission aims to publish guidelines on the interplay between the AI Act and other EU legislation, such as the GDPR, copyright and product safety rules, from Q3 2026. This will be around the time the AI Act’s high-risk requirements will apply. Additionally, in Q1 2026, the Commission will present guidelines on the classification of AI systems as high-risk, but this may be delayed to Q2 or Q3.
Both are part of the broader AI Continent Action Plan, launched in April this year, which seeks to position Europe at the forefront of responsible and high-impact AI. For researchers and businesses, this means new funding, partnerships, and opportunities to deploy AI across key sectors.
Implementation AI Act faces hurdles as technical standards face delay
The European Commission has postponed its decision on potentially pausing the AI Act’s high-risk requirements (‘stop the clock’). However, EU digital chief Henna Virkkunen has stressed that clear guidelines are needed before the rules come into effect. The Commission also will not issue mandatory “common specifications,” citing limited time and resources, leaving the sector to navigate the implementation challenges as technical standards meant to operationalise the high-risk requirements continue to be delayed, risking missing the August 2026 deadline.
Digital omnibus targets AI Act
With the digital omnibus now scheduled for 19 November, a slew of simplification measures for digital legislation is expected to be proposed. More information is becoming available regarding potential targeted amendments to the AI Act. The Commission is reportedly considering amendments in the following areas: 1) the interplay with other EU legislation; 2) the governance structure; 3) innovation measures, and 4) extending SME exemptions to small midcaps; 5) as well as aligning application timelines (Annex III with Annex I).
New AI Factories and hubs expand Europe’s AI ecosystem
On 13 October, the European Commission announced the creation of AI Factories Antennas in seven EU countries, including Belgium, Ireland and Hungary, and in partner countries such as the United Kingdom and Switzerland. These new Antennas will connect local AI communities to Europe’s supercomputing network (EuroHPC), giving researchers and startups access to powerful computing and innovation resources. The expansion brings the total to 19 AI Factories across 16 Member States, advancing the EU’s AI Continent Action Plan and Apply AI Strategy.
At the same time, the Commission renewed funding for 83 European Digital Innovation Hubs (EDIHs) under the Digital Europe Programme (DIGITAL). These hubs will now act as “Experience Centres for AI”, helping small businesses and public authorities test AI tools, comply with the AI Act, and access technical support. The initiative will be supported by a €342 million budget jointly funded by the EU and Member States.
Together, these steps reinforce the EU’s “AI First” strategy by bringing trustworthy and practical AI closer to European industry and society.
Parliament pushes for stronger online protection for teens and kids
On 16 October, the European Parliament’s Internal Market Committee (IMCO) backed new proposals to make the online world safer for minors. MEPs want a digital minimum age of 16 for social media and AI companions unless parents agree, plus stronger age checks and a ban on addictive design features like infinite scrolling, dark patterns and loot boxes.
They also call on the European Commission to step up enforcement of the Digital Services Act (DSA) and consider personal liability for tech executives who repeatedly ignore child-protection rules. Rapporteur Christel Schaldemose said the aim is clear: “make platforms safe by design.”
A final vote is expected in late November. If approved, the plan will guide future EU rules on digital safety for minors and feed into the upcoming Digital Fairness Act.
Commission investigates how platforms protect minors under the DSA
On 10 October, the European Commission opened its first Digital Services Act (DSA) investigations into how major platforms such as Snapchat, YouTube, Apple, and Google protect minors online. The focus is on age verification, preventing access to harmful content such as eating disorder material or vaping products, and how recommender systems target younger users. The inquiry will also look at how Apple and Google control risky apps such as gambling or “nudify” tools.
Europe boosts chip manufacturing under the EU Chips Act
On 13 October, the European Commission gave official status to four major semiconductor projects in Germany, Austria and Italy, the first ever under the EU Chips Act. Led by companies such as TSMC, Bosch, Infineon, NXP, Ams-OSRAM and STMicroelectronics, these projects will receive faster permits, administrative support and early access to new pilot production lines.
The goal: strengthen Europe’s capacity to produce chips locally and reduce dependence on non-EU supply chains.
For the tech and manufacturing sectors, this marks a big step in EU-backed investment and supply-chain resilience.
EU invests €204 million to speed up Europe’s digital transformation
On 9 October, the European Commission announced €204 million in new funding under the Digital Europe Programme (DIGITAL). The money will support projects in AI, big data, health tech, digital skills and digital infrastructure, including the rollout of the EU Digital Identity Wallet and innovation in the automotive and public sectors.
Applications open between mid-October and early November, following the first amendment to the 2025–2027 DIGITAL Work Programme. Organisations working on advanced digital technologies are encouraged to apply and join EU-funded partnerships.
Commission and data regulators team up on DMA–GDPR guidance
On 9 October, the European Commission and the European Data Protection Board (EDPB) launched a consultation to clarify how the Digital Markets Act (DMA) and General Data Protection Regulation (GDPR) work together. The draft guidelines explain how companies should manage personal data when combining, sharing or transferring user information across services.
The consultation runs until 4 December 2025, with final guidance expected in 2026.
Businesses and digital platforms can submit feedback to help shape how these two major EU laws will be applied in practice.
Europe steps up quantum computing power
On 23 September, the EU inaugurated its second quantum computer, called VLQ, in Ostrava, Czechia. This marks a significant step in its Quantum Strategy to lead the field by 2030. Co-funded by the EuroHPC Joint Undertaking and eight European countries, VLQ will soon link with the Karolina supercomputer to create a hybrid classical-quantum system.
Researchers, industries and public bodies will gain access to cutting-edge computing power for applications such as quantum machine learning and advanced simulations.
Events
Where can you spot our digital team this month? Our Director Cathy Kremer and colleague Irene Veth will attend the European Business Summit, taking place from 18-20 November.
