EU Insight, 26 January 2024

Brussels, 26 January 2024

COMMISSION PRESENTS ECONOMIC SECURITY PACKAGE

The European Commission published its Economic Security Package as a part of the roll-out of its June 2023 Economic Security Strategy. Overall, the strategy seeks to identify and address economic risks that have an impact on the EU’s national security interests. These risks notably concern the resilience of supply chains, physical and cyber security of critical infrastructure, technology leakage, and the weaponisation of trade policies. As such, the package includes five new initiatives covering foreign direct investment screening, export controls for dual-use goods, outbound investment screening, and research security. Notably, the package’s mechanism to screen foreign direct investments aims to address the influence of foreign entities via investments in the EU’s economy.

NEW FERTILIZER LABELING REGIME AND BAN ON NEW GMO PATENTS

Following intense debates, the European Parliament adopted its position on the revision of the EU’s genetically modified organism (GMO) legislation. The Parliament aims to ban patents for new GMO plants, thus aiming to facilitate farmer and breeder access, and prevent monopolies. Additionally, the rules classify GMO plants into two categories, those that can or cannot be considered as similar to conventional plants, imposing different levels of requirements. On a similar note, co-legislators provisionally agreed on a digital fertilizer labelling system. This system mandates digital labels for fertilising products sold without packaging and keeps digital labels available for ten years.

PARLIAMENT ADOPTS RULES ON PATENTS FOR NEW TECHNOLOGIES

The European Parliament adopted its position on new rules setting up so called standard-essential patents (SEPs) for key technologies such as 5G and Wi-Fi. The initiative aims to create patents which incorporate technical standards for innovations within new technologies, while making the patent processes and technology development within the EU more efficient. As such, the legislation aims to encourage innovation for products based on standardised technologies, while protecting the innovators, thus particularly aiming to benefit SMEs and start-ups. As part of its position, the Parliament would like to see the setting up of a SEP Licensing Assistance Hub to enhance transparency, reduce litigation, and assist in SEP-related negotiations and evaluations.

COMMISSION UNVEILS NEW AI INNOVATION PACKAGE

The European Commission published an AI innovation package, aiming to support European startups and SMEs in the development of reliable Artificial Intelligence (AI) that aligns with EU values.  Notably, the package includes the establishment of an AI Office within the Commission, as mandated by the AI Act. Additionally, the Commission sets out a strategic investment framework on trustworthy AI, highlighting the need for the EU to capitalise on its assets. The Commission further underlines the importance to foster an innovative European AI ecosystem allowing startups and innovators to thrive, while working closely with industrial users,  and attracting investments in the Union.

CO-LEGISLATORS EXPAND SCOPE OF EU HUMAN TRAFFICKING RULES

The European Parliament and the Council reached a provisional political agreement on the revision of the EU’s anti human trafficking rules. Notably, the deal extends the legislation’s scope, thus also considering forced marriage, illegal adoption, and surrogacy as forms of human exploitation. The agreement also introduces stronger rules on human-trafficking crimes committed via the use of information and communication technologies (ICT), considering the use of ICT as an aggravating circumstance in relation to sexual exploitation. Additionally, the revision of the rules criminalises the knowing use of services provided by human-trafficking victims. The new rules will enter into force following the formal adoption of the provisional agreement by the co-legislators.

COMING UP NEXT WEEK

• 29 January: General Affairs Council. On the agenda: Belgian Presidency Priorities, Defence of Democracy, Annual rule of law dialogue
• 30 – 31 January: Informal meeting of defence ministers. On the agenda: Security threats, collaborative defense projects
• 31 January: College of Commissioners. On the agenda: Cancer prevention package, revision on smoke-free environments, vaccine preventable cancers
• 1 February: Special European Council. On the agenda: mid-term revision of the EU long-term budget 2021-2027, Ukraine Facility, Strategic technologies for Europe Platform
• 2 February: EU-ASEAN ministerial meeting.
• 2 February: Informal meeting of foreign affairs ministers.

Karl Isaksson, Managing Partner Brussels, Kreab

_________________________________________________________

Kreab • Tel: +32 2 737 6900 • karl.isaksson@kreab.com • www.kreab.com/brussels • Twitter: @KreabEU.