EU Insight, 27 September 2024

OVER 100 COMPANIES SIGN EU AI PACT AHEAD OF NEW REGULATION OF THE SECTOR

More than 100 companies signed the EU AI Pact, pledging to comply with the AI Act requirements ahead of its application and to step up cooperation with regulators. The AI Act, which lays down rules on the use of AI models will only start applying in August 2026. Aiming to bridge the time-gap until said date, the AI Pact puts forth a series of good AI governance and risk management pledges and aims to facilitate the preparation for compliance with the AI Act. Although adherence to the Pact remains voluntary, the European Commission sees the Pact as crucial to strengthening the impact of its broader AI policy.

ANTITRUST RAIDS HIT FINANCIAL SERVICES COMPANIES

The Commission announced that its antitrust inspectors had conducted raids at the premises of two financial services companies. The surprise inspections were carried out to address the authorities’ concerns for suspected anticompetitive behaviour linked to financial derivatives. Following the Commission’s announcement, Deutsche Boerse and Nasdaq confirmed that it was them who had been targeted by the investigations. Both companies stated that they are currently cooperating with the authorities. Should any violation of EU competition law be found during the search, the companies could be subject to a corresponding formal investigation, and could face fines accordingly, which could reach up to 10% of the firm’s revenue.

COUNCIL ADOPTS POSITION ON SINGLE EUROPEAN SKY

The Council endorsed the reform of the Single European Sky initiative, which aims to improve the EU’s airspace management. The initiative applies to non-military air travel and aims to enhance and coordinate air traffic management and air navigation services across the Union. Overall, the objective of the ongoing revision of the rules is to boost the system’s capacity while increasing its adaptability and lowering cost. Notably, the review also aims to reduce the aviation’s industry overall environmental impact, by for example encouraging the use of fuel-efficient travel routes for airlines. The new rules will also enhance the role of Eurocontrol, who manages the pan-European airspace.

HUNGARIAN PRESIDENCY PRESENTS ENVIRONMENTAL AND INSTITUTIONAL PRIORITIES

The Hungarian Presidency of the Council, which runs until the end of the year, toured parliamentary committees, to present its priorities for the coming months. In relation to constitutional affairs, the Presidency emphasized the need of undertaking a reform of the EU ahead of the potential enlargement of the Union and underlined the importance of transparency in policymaking. Furthermore, in relation to environmental issues, the Hungarians emphasised the need of reducing pollution, tackle climate change, and preserve biodiversity, while boosting Europe’s competitiveness. The Presidency also announced its intention of endorsing the recent recommendation on smoke-free environments and further negotiations on pharmaceutical legislation, which is currently under review.

EU TRADE DEFENCE MEASURES PROTECTED ALMOST HALF A MILLION JOBS IN THE UNION

The Commission published its annual report on EU trade defence activity. This annual publication serves to take stock of the EU’s related policy, including its anti-dumping measures on Chinese EVs, and serves to inform the Commission’s actions in the area. Notably, the report underlines that the Commission doubled its trade defence activity in 2023 compared to 2022, putting in place 182 measures to address unfair trade practices. According to the report, the Commission’s efforts directly prevented the loss of almost half a million jobs in the Union. Moreover, the report claims that the measures protected strategic industries for the EU’s twin transition, including in the wind energy sector or the manufacturing of optic fibres.

COMING UP NEXT WEEK

• 30 September: Last day of UN General Assembly.
• 2 October: College of Commissioners Meeting. On the agenda: Team Europe Communication

Karl Isaksson, Managing Partner Brussels, Kreab

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