02/05/2025
EU Insight 2 May 2025
Brussels, 2 May 2025
EUROPE MOBILISES €910 MILLION FOR DEFENCE
The EU will invest €910 million through the 2024 European Defence Fund (EDF) to strengthen Europe’s defence sector, with a new focus on disruptive technologies and cross-border collaboration. Funding will support projects across the bloc and Norway, with part earmarked for next-generation tech, ranging from AI-driven drones to advanced stealth systems. For the first time, Ukrainian defence firms are eligible to join the fund projects, signalling closer industrial ties with the EU. In addition, Member States have coordinated moves to ease budget rules and enable higher national defence spending through the activation of the national escape clause. So far, 12 have requested activation of the clause, which now needs to be assessed by the Commission.
KYIV SIGNS US-UKRAINE RESOURCES DEAL
The US and Ukraine have signed their long-anticipated ‘resources deal’, giving Washington joint access to Ukraine’s rare earth minerals, oil and gas, in exchange for continued US support. As part of the ongoing peace negotiations, the agreement creates a United States-Ukraine Reinvestment Fund. Profits are set to be reinvested in Ukraine’s economy during the first decade, supporting reconstruction and new projects, although some details remain subject to further negotiation. The US has described the deal as essential for sustaining its military support for Kyiv, but no security guarantees were granted by Washington. The agreement includes provisions to ensure it does not conflict with Ukraine’s ambition to join the EU.
COMMISSION TAKES STOCK OF HORIZON EUROPE AT THE HALFWAY POINT
The Commission has released its midterm review of Horizon Europe, the main EU programme supporting research and innovation for 2021-2027. So far, €43 billion out of the €93.5 billion budget has funded more than 15,000 projects, including work on fuel cell electric buses, accessible artificial intelligence, and new antibiotics. According to the Commission, every euro invested is expected to generate up to €11 in economic gains by 2045, although the final impact will only become clear over time. The review also highlights improved participation from less research-intensive EU countries and simplified grant processes aimed at making funds more accessible, especially for smaller players.
EU COMMITS €301 MILLION TO OCEAN PROTECTION AT INTERNATIONAL SUMMIT
At this year’s Our Ocean Conference in South Korea, the EU announced a €301 million investment in ocean protection, spanning everything from marine biodiversity and sustainable fisheries to pollution and digitising ocean data. A large share is earmarked for helping African and Pacific countries strengthen ocean governance, while €65.5 million will target marine pollution, and €30 million will accelerate the EU’s flagship Digital Twin Ocean project. Brussels is also laying the ground for a forthcoming European Ocean Pact, intended to unify and boost marine policy across the bloc. The Our Ocean gathering, launched in 2014, has become a global forum for addressing climate-related risks to the oceans.
TIKTOK FINED €530M OVER EU DATA TRANSFERS TO CHINA
TikTok has been fined €530 million by Ireland’s Data Protection Commission for illegally transferring European users’ data to China and failing to notify users, in violation of the EU’s General Data Protection Regulation (GDPR). The penalty, the third largest of its kind, follows a DPC investigation that found TikTok failed to assess risks from Chinese surveillance laws and lacked transparency over its data policies between 2020 and 2022. TikTok contested the decision, citing privacy safeguards and referencing its ongoing €12 billion project to establish EU-based data centres. The video-sharing app, which plans to appeal the decision, has six months to comply with EU data rules or halt transfers to China.
COMING UP NEXT WEEK
- 5-8 May: Plenary session. On the Agenda: Preparation of UK Summit; EU response to US trade measures; EU support to Ukraine; Global tech race; 80 years after the end of World War II.
- 6 May: College of Commissioners. On the Agenda: RePowerEU.
- 7-8 May: Informal meeting of foreign affairs ministers. On the Agenda: EU-UK relations; Russian aggression against Ukraine.
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