Dear reader,
Welcome to Publyon’s Digital Policy Update. We are happy to provide you with insights on the latest EU policy trends and developments every month. The summer break is over, and all the digital policy nerds are back in their classroom seats. This wasn’t your average summer; while others were out on recess, some in the EU were hard at work, gearing up for the new legislative mandate.
In this edition, we’re looking at Mario Draghi’s report on competitiveness and the new tech leaders in Ursula von der Leyen’s proposed College of Commissioners. Plus, we’re back with our favourite subjects: AI and cybersecurity news. Grab your notebooks and pencils as we dive into the latest lessons in EU digital policy.
The spotlight
Draghi’s lesson on competitiveness
After keeping us on the edge of our seats since June, Mario Draghi – former Italian Prime Minister and former Head of the European Central Bank (ECB) – finally turned in his long-awaited report on the future of the EU’s competitiveness on 9 September. And guess what? Digital and tech policy are front and centre in his syllabus. On digital policy, Draghi’s report emphasises that the EU lags behind the United States and China in breakthrough digital technologies like artificial intelligence (AI), cloud computing and quantum computing, contributing to a growing productivity gap. Additionally, there is a significant gap in venture capital funding for high-growth tech companies which leads to many European startups relocating abroad. Not to mention that there’s a severe lack of top-notch strong AI skills in Europe.
Draghi has identified several problem areas holding back innovation: a static industrial structure, weak commercialisation of innovation, a fragmented Single Market, regulatory complexity, and insufficient investment in R&I, especially in breakthrough technologies and connectivity.
To address these challenges, Draghi lays out a three-point lesson plan focusing on telecoms, computing/AI, and semiconductors, with specific policy actions to close the innovation gap:
- Propose an EU Telecoms Act to harmonise telecom regulation, competition, and cybersecurity, develop digital networks, and coordinate EU-wide technical standards, through regulatory, licensing, and cooperative measures across the member states.
- Introduce a new EU Cloud and AI Development Act to enhance European capabilities in the fields of quantum capabilities and infrastructure, supporting coordination and priority setting concerning iCloud architecture requirements and their respective procurement process. This Act should also comprise:
- A concrete European High-Performance Computing (HPC) upgrade programme intended to complement and increase the development of AI models and the EU’s computational capacities.
- The ‘EU Vertical AI Priorities Plan’ will fund crucial vertical AI models aimed at accelerating AI development across ten strategic industries in the EU.
- Revise the EU Chips Act to support the development and systematic roll-out of supportive structures and strategies such as R&D tax incentives and coordinated cooperative frameworks aimed at strengthening domestic semiconductor production (EU Semiconductor Strategy), including an EU semiconductor budget.
- Accelerate the digitilisation of health systems and the European Health Data Space (EHDS) as a means of supporting and facilitating R&I initiatives.
- Reform the EU’s approach towards public R&I funding and academic research plans and initiatives to unlock private and public funding to foster research in digital breakthrough technologies.
Curious about how these priorities can impact your business? Don’t hesitate to reach out to our director Cathy Kremer at c.kremer@publyon.com.
Policy update
The new tech leaders in Team von der Leyen II
On 17 September, Ursula von der Leyen presented her list of Commissioners-designate and their respective portfolios, setting the stage for the next class of EU leaders. These Commissioners-designate are tasked with turning into action the new political guidelines shared by von der Leyen in July. But before they officially become full-fledged Commissioners, they still have to pass the big test: parliamentary hearings, starting in November, with the Commission expected to begin work in December.
In the meantime, we’ve done our homework on the key players set to shape the EU’s digital agenda:
Henna Virkkunen (Finland), Executive Vice-President, for Tech Sovereignty, Security and Democracy: Virkkunen’s portfolio envisions the concept of technological sovereignty in combination with security and democracy – a broad portfolio. She will lead the path towards digital transformation, the adoption and facilitation of ‘frontier technologies’ to reach targets outlined in She will oversee cybersecurity, media and disinformation, tech sovereignty, resilience, and supply chain security. Previously, she was the rapporteur on cybersecurity regulation for EU institutions and shadow rapporteur on the Cyber Resilience Act (CRA). Previously, Virkkunen has concentrated on reducing the EU’s reliance on external tech supply chains, advocating for deregulation to benefit SMEs and start-ups in the digital sector, and calling for an increased EU research budget.
Valdis Dombrovsksis (Latvia), Commissioner for Economy & Productivity, and Implementation & Simplification: Dombrovskis will tackle streamlining EU regulations, aiming to cut red tape and simplify legislation – which has been a returning critique from tech industry stakeholders for the wave of digital legislation that swept over us in the last mandate. In addition to this, Dombrovsksis will facilitate the Digital EURO project and strengthen the international role of the Euro as a reserve currency.
Stéphane Séjourné (France), Executive Vice-President for Prosperity and Industrial Strategy: Succeeding Thierry Breton in unexpected fashion, Séjourné will be responsible for European productivity, innovation and competitiveness and overseeing a new European industrial strategy. Concretely, Séjourné will develop a Clean Industrial Deal for Europe, a European Competitiveness Fund, modernise the European Single Market and will seek to ensure that European Intellectual property policy continues to facilitate innovation and strengthen current regulations and rules.
Some others to look out for:
- Ekaterina Zaharieva (Bulgaria), Commissioner for Startups, Research and Innovation, tasked with setting up a European AI Research Council, a strategy for EU startups and scale-ups, and developing a European Innovation Act.
- Michael McGrath (Ireland), Commissioner for Democracy, Justice and the Rule of Law,), as well as the Digital Fairness Act, Online Consumer Law and for tackling digital disinformation.
- Teresa Ribera (Spain), Executive Vice-President for Clean, Just and Competitive Transition, will look over competition policy, including enforcement of the Digital Markets Act (DMA).
- Glenn Micallef (Malta), Commissioner for Intergenerational Fairness, Youth, Culture and Sport, is tasked with churning out an AI strategy for the creative industry.
- Magnus Brunne, Commissioner for Internal Affairs and Migration will be responsible for cybersecurity and fighting online crime, as well as the child sexual abuse online regulation (CSAM).
- Andrius Kubilius (Lithuania), Commissioner for Defense and Space, will oversee defence tech.
AI Act: Class in session
Momentum is building for the Artificial Intelligence Act (AI Act), which finally entered into force on 1 August 2024. The new rules on prohibited, high-risk, and minimal-risk AI will now gradually roll out. Additionally, on 10 September, the first AI Board meeting took place, where member states discussed the Act’s implementation, and the AI Office presented its current progress on the implementation of the Act, including work on the Code of Practice for General-Purpose AI (GPAI). Nearly 1,000 businesses and individuals have expressed interest in helping shape the draft Code. The kick-off plenary with stakeholders will begin on 30 September, starting a nine-month drafting process, with the final Code to be presented in a closing plenary in April.
Moreover, a high-level event to officially launch the AI Pact is scheduled today 25 September, following earlier workshops with organisations to define AI Pact commitments. These commitments aim to guide how organisations develop and deploy AI, with over 1,000 organisations, from large corporations to SMEs, signing declarations of commitment. Isn’t that exciting!
What’s on the forecast?
The weather forecast announced that it would stop raining once the AI Act will be published in the Official Journal of the EU. You can thus expect Belgian summer to show its true colours around the second half of July. On a more technical note, the publication entails that the Act will officially enter into force in August twenty days later. The content of the Act will take effect in stages; the prohibitions on AI models will apply first, after 6 months (February 2025), while rules concerning general-purpose AI models (GPAI), governance and sanctions will become applicable after 12 months (except fines for GPAI providers).
After one year, EU Member States would have to designate competent authorities for dealing with the AI rules. The rest of the AI Act’s rules will be applicable after 24 months, such as high-risk AI (with exemptions), as well as the obligation of Member States to have at least one operational AI regulatory sandbox ready for testing of AI models before they are being put on the market.
AI Office controversy
Drama is unfolding at the AI Office as the Scientific Lead for Artificial Intelligence is set to be chosen from within, despite earlier promises of hiring an external expert. This reversal has raised concerns about the EU’s in-house expertise and the future capabilities of the AI Office, as critics argue that hiring an internal candidate without strong scientific credentials may hinder the institute’s expertise, compared to global peers who hire top external talent.
Other AI news: Principal resigns
In a surprise move, Thierry Breton announced his resignation from the European Commission on 16 September. The former Commissioner for the Internal Market had been highly influential in shaping the European Union’s digital and cybersecurity policies and initiatives including with landmark policy developments such as the Digital Services Act (DSA), the Digital Markets Act (DMA) and the AI Act.
Something interesting for my business?
The Commission opened a call for proposals for setting up AI Factories to boost European leadership in trustworthy AI. The EU will allow startups, industry and researchers access to these ‘factories’, set up around the European High-Performance Computing (HPC) supercomputers. The call will be open until 31 December 2025, with a first deadline on 4 November – so shoot your shot! See for more details here.
What’s next?
High-risk AI provisions take effect on 2 February 2025, with general-purpose AI models following on 2 August 2025. The AI codes of practice are expected by 2 May 2025, and the full AI Act will apply from 2 August 2026, except for specific high-risk systems, which start on 2 August 2027. Publyon will look out for the new AI Board meetings, as well as the next activities of the AI Office (another educational webinar perhaps?).
Cyber study hall
The Cyber Resilience Act (CRA), which sets mandatory cybersecurity requirements for products with digital elements, underwent a corrigendum procedure in the European Parliament on 17 September. The corrigenda corrected legal-linguistic details and has been approved without a vote. The CRA then needs to be approved by the Council before it can enter into force, somewhere in the coming months. In the meantime, the European Commission opened a call for applications for a Cyber Resilience Act Expert Group to assist them with the implementation of the upcoming law. Be quick, as the deadline will close on 17 October.
The Cyber Solidarity Act (CSA), which seeks to strengthen the EU’s capacities to detect, prepare for and respond to cyber threats, also awaits the green light from the Council before it can be published and become effective.
Blog
European Cyber Resilience Act
This month, we’re excited to share the updated version of our blog post on the Cyber Resilience Act (CRA). Get all the latest insights on how the CRA impacts businesses, expert views on potential burden and compliance costs, and its legislative journal.
READ THE ARTICLE
After school hangouts
The school bell has rung, classes are dismissed, and now it’s time for the cool kids to hang out at the best after-school spots while the digital policy nerds dive into their favourite extracurriculars. Wondering where to find us? We’re always eager to chat about the latest Digital Policy Update and other digital and tech news with our fellow classmates.
This month you can catch Irene Veth at the Industrial Policy events of Politico’s Competitive Europe Week in Brussels on 1 October while Cathy Kremer will attend both the Economic Security and Tech & AI sessions on 2 and 3 October. If you are interested in meeting the class leaders forming our digital and tech team, do not hesitate to reach out to us: Guillaume Baudour and Irene Veth. We’ll gladly discuss the latest digital classroom gossip.
Irene Veth
Hi, my name is Irene, and together with Guillaume Baudour and Marc Lütz, we are the school reporters behind this month’s update, bringing digitalisation and technology insights to your inbox. I hope you enjoyed this edition of our update. We are always looking to provide our community with the most valuable (and fun) content possible, starting with you. If you have any suggestions for topics you would like to see covered in our next edition, do not hesitate to contact me.
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