EXECUTIVE SUMMARY

The Artificial Intelligence Act (Regulation (EU) 2024/1689 or the “AI Act”) integrates into the European legislative framework with the aim of establishing a harmonized set of rules for the use of artificial intelligence within the European Union. Proposed in 2021 by the European Commission and adopted on May 21, 2024, by the Council of the European Union, the AI Act is a fundamental part of the EU’s digital strategy, aiming to promote innovation and ensure safe and responsible use of AI technologies. It provides, indeed, the EU with the most advanced regulation on Artificial Intelligence (“AI”) among all the major geopolitical players in the world, aiming at ensuring the generalized application to all AI systems throughout the main industries and the development of safe and trustworthy AI systems.

While some countries have set forth rules to deal with specific issues where AI is involved, the AI Act takes an innovative - and more wholesome - approach. It provides a specific definition of AI, which delimits its scope of application. Then, it classifies specific developments of AI systems into four levels of risk (i.e. the risk-based approach), each one imposing specific duty to developers. AI systems classified in the unacceptable risk category (such as governmental social scoring) are prohibited. High risk systems must be closely monitored by the European institutions and must be subject to risk assessment and risk mitigation practices. Limited risk systems must undergo public disclosure of relevant information to enhance their transparency. Lastly, minimal risk AIs (the category that counts most types of AI) remain free to use. The international nature of the AI Act and its all-embracing regulatory ambition aim at influencing positively other international players such as the United States and China.

The AI Act, being fully and directly applicable in all the MSs, interacts with other regulations and provisions such as the General Data Protection Regulation (“GDPR”), the Cybersecurity Act, and the Digital Services Act, creating a coherent and comprehensive regulatory environment covering various aspects of digital technologies and data protection. In addition, few States already have some kind of legislations that directly involve AI, Greece being the most remarkable example. Others have a mix of different legal sources that directly or indirectly influence the development of AI, setting forth provisions that might impact the AI future development. Moreover, some States have already taken action to complement the AI Act’s provisions, introducing a stricter regime for some specific technologies while others like France and Spain, are still considering the need of introduce complementary legislation to avoid risks related to errors in AI-generated decisions, or cybersecurity issues.

While individual countries within the European Union were not directly providing funding specifically earmarked for compliance with the AI Act itself, as it primarily focuses on regulatory frameworks rather than direct funding initiatives, countries like Switzerland, Sweden, France, Germany and Hungary and the EU as a whole have been actively investing in AI-related research, development, and innovation through various programs and funding mechanisms. These initiatives are generally aimed at supporting the broader digital transformation goals of the EU, which includes enhancing AI capabilities and competitiveness.

But what is the future of the concrete application of the AI Act? To answer this question mark, it is needed to dig into the preliminary characteristics of individual States as well as their potential intervention in terms of finance by asking: (i) Do States already regulate AI at national level? (ii) Do they plan to complement, or even enhance, the AI Act’s provisions? (iii) Do they want overall to financially support the development of AI systems?

The following analysis provides a critical overview of the most relevant countries in Europe, namely Albania, Belgium, Bulgaria, Cyprus, France, Germany, Greece, Hungary, Italy, North Macedonia, Portugal, Romania, Serbia, Sweden, Switzerland and Spain.

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Albania

Albania is gradually integrating AI into its digital programs to enhance efficiency and innovation in the public sector. Law 87/2923 ratifies the agreement for the adhesion to the “Digital Europe” program, which focuses on advanced digital skills in general, though specific details on AI are not set forth. Law 43/2023 regulates electronic public services that do not require the physical presence of the applicant, while the Decision of the Council of Ministers No. 370/2022 approves the Intersectoral Strategy “Digital Agenda for Albania”, which promotes AI to improve public services, AI integration in the public sector, and data management. It also established a High-Performance Computing Center. Unfortunately, official information on governmental funding of AI is not yet available.

Belgium

In Belgium there isn’t a specific regulation on AI. However, Collective Bargaining Agreement No. 39 is applicable to these systems. The bargaining requires businesses with more than 50 employees to preemptively inform and consult trade unions, if they invest in technologies that impact on 10% of the personnel, or more. Additionally, the collective labor agreement enacted by the Royal Decree of 21 February 2024 in the banking sector makes it mandatory to train workers in the use of AI. Additionally, acts and resolutions adopted by the Belgian legislative branches regulate the use of AI in sectors such as defense, public administration and automotive (especially relevant is the permission to run tests on automated vehicles). Government funding is split into regional and state levels. The Flemish region allocated 32 million euro for AI Research and Development. It also set forth fiscal incentives for supporting the cost of labor. On the other side, the Walloon region launched the “Application and Research for Trusted Artificial Intelligence” project for the development of AI systems that enhance the competitiveness of Walloon’s businesses and awarded it 32.3 million euro. Brussels also offers many grants and subsidies to businesses in the AI industry. These three regional levels all complement the Federal programs, which mostly invest in defense.

Bulgaria

The Bulgarian Government adopted the “Concept for the Development of Artificial Intelligence in Bulgaria until 2030”, which recommends conducting a detailed analysis for a legislative proposal to be carried out only after the entry into force of the AI Act. No proposals will be forwarded until then. In the meantime, Bulgaria plans to use the European Structural Funds, the “Horizon 2020” programs, the National Recovery and Sustainability Plan, and the state budget to fund projects in the AI sector. Moreover, Bulgaria established the “Institute for Computer, Science, Artificial Intelligence and Technology” (“INSAIT”) and invested 85 million euro in it through the Ministry of Education and Science. The INSAIT is set to be the most advanced research institution in Eastern Europe, as it can rely on world-class partnerships with the most important players in the field, such as Switzerland’s “ETH” in Zurich and “EPFL” in Lausanne (two prestigious technical universities), as well as donations by Google, Amazon Web Services, DeepMind, SiteGround, VMware and other tech entrepreneurs.

Cyprus

Cyprus declared that the AI Act will be the first legislation that directly regulates AI. It presented a Strategic Plan for 2024-2026 which has allocated 282 million euro until 2026 for digitalization in general, including AI. However, much information on the development of AI in the country is lacking.

France

France’s own regulation of AI systems mostly revolves around the GDPR, and the “Loi Informatique et Libertés” of 6 January 1978, which apply to the processing of personal data. However, France is one of those countries that also legislate on more specific applications of AI systems, namely automated decisions. Individuals subject to those decisions have a right to obtain a human review of their personal situation, to express their point of view, to obtain a precise motivation in support for the decision, but also to challenge it (in line with Article 22 of the GDPR). On 12 September 2023, French representatives of the Assemblée Nationale proposed a legislation to regulate copyright-related issues, but the proposal was deemed unfeasible, and it was blocked. In 2021, President Emmanuel Macron launched its France 2030 plan, investing 2,5 billion euro in AI Research and Development. On 19 September 2023, the Government established the “Generative Artificial Intelligence Committee” to provide better guidance to the Cabinet for its decisions in the AI sector.

Greece

In Greece, Law 4961/2022 covers multiple technological developments, including smart contracts, the Internet of Things and AI. Only a few modifications are required for the Law to be fully compatible with the AI Act, which testifies Greece’s ability to legislate carefully in the area. In terms of Government funds, the Ministry of Digital Governance issued between 150 and 200 million euro for the development of AI.

Germany

Germany declared that the AI Act will be the first legislation that directly regulates AI. In 2018, Germany adopted a federal strategy for AI, significantly increasing the invested funds in the sector. Indeed, the Federal Ministry of Education and Research annual budget for technology investment increased by 20 per cent since 2017, reaching 1,6 million euro in the current legislature. These funds will be invested in eleven specific areas, including enhancing research to be a driver of innovation, setting up an agenda to expand the AI infrastructure, building the AI infrastructure, promoting social dialogue with stakeholders to responsibly integrate AI into Germany’s institutional systems, and ultimately drafting and enforcing a more effective, innovative and agile AI regulation, that fosters innovation.

Hungary

In Hungary, Government Decree 1573/2020 sets forth the national strategy on AI. This strategy has been developed by the Artificial Intelligence Coalition, which comprises more than 70 Hungarian and International companies, universities, and research groups. The Coalition’s main goal is to place Hungary as a leading power in AI, and to strengthen national businesses’ competitiveness with it. The strategy focuses on transformative programs in the manufacturing, healthcare, energy and logistics sectors. It aims at enhancing Hungary’s technologies and infrastructures, while also fostering the public comprehension of AI and its applications. The Hungarian government, through the venture capital program “Széchenyi” made funds available to support the development of AI. The funded projects include the “AI Innovation and Competence Centre and Data Asser Management”, which promotes the application of AI systems to Hungarian small and medium enterprises, the development of AI-based technology for various purposes and the establishment of the national “Laboratory for Artificial Intelligence”.

Italy

In Italy, the GDPR and copyright legislation are the main tools used to regulate the application of AI and its functioning. In particular, these are significantly important as far as the training process of AI models is concerned, since training sets may incorporate and process personal data or copyrighted work, triggering legal obligations, prohibitions and sanctions. Additionally, Italy plans to further regulate the topic, complementing the upcoming AI Act. Indeed, the Italian Government recently proposed to the Italian Senate the introduction of a new law (Disegno di legge 1146/2024 - “DDL”), which is currently being discussed by the relevant committees. The announced goal is to strike the right balance between the protection of human rights on the one hand, and the development of innovative and beneficial tools on the other. In other words, the DDL dictates general principles to follow, in order to prevent AIs from negatively impacting on human autonomy, excluding humans from the processes in which AI is employed, and depriving them of their individual decision power. Thus, the DDL safeguards freedom of information and communication, fairness in the use of data, and transparency in the training of models. The DDL also proposes to introduce more sector-specific provisions, authorizing, for example, the use of AI systems in public administration and in intellectual professions only in secondary activities in support of the core one. The Italian Government has allocated 1 billion euro to the acquisition of shares in Italian innovative businesses, including those that develop AI systems. It also plans to facilitate partnerships between the public and the private sector, for the development and the employment of fair and efficient AI systems in the public administration.

North Macedonia

In North Macedonia the main regulation that deals with AI is the national Data Protection Law, which is harmonized with the GDPR, while no other specific proposals targeting AI are planned. In 2023, the Government launched “ADA”, an AI-powered digital assistant, which provides information to citizens and businesses. Moreover, the Governmental “Fund for Innovation and Technology Development” has invested approximately 138 million euro since 2013, to support start-ups and innovative projects in North Macedonia.

Portugal

Portugal plans to align its legislation on AI with the AI Act. Portugal is one of the first countries to have developed a national strategy. In fact, in 2019 it adopted the “National Strategy on AI”, which fosters innovation in healthcare, agriculture and education. In line with the AI Act, the National Strategy too is based on a risk-based approach that aims at developing ethical and human-rights-oriented AI. Importantly, Portugal’s strategy includes the establishment of sandboxes, which are secure environments where AI systems can be tested, under the supervision of public authorities, before getting released to the public, mitigating risks related to privacy and security.

Romania

The Romanian Senate has started public discussions on 19 March 2024 for a new legislative proposal on AI. As of today, the proposal would prohibit the automatization of the flow of human resources, as well as the use of biometric data of natural persons (except for crime prevention and detection purposes). It is worth highlighting that the Romanian approach might conflict with the AI Act, therefore it might me heavily modified to align with it. In February 2024, the Ministry of Investments and European Projects published Order No. 464/2024 for the approval of a state aids scheme, and a scheme of contributions to support entrepreneurs in the development of advanced digital technologies. These schemes allocate 3 million euro in grants to foster the development of advanced technologies, including AI.

Serbia

As of today, Serbia set forth voluntary guidelines and recommendations in the AI sector, such as the “Strategy of Development of Artificial Intelligence in the Republic of Serbia for 2020-2025”, and the “Conclusion on Adoption of Ethical Guidelines for Development, Application and Use of Reliable and Responsible Artificial Intelligence”. Besides providing guidance for the development of safer AI models, these acts also envisage the enactment of new regulations and the amendment of existing laws to better face the risks posed by AI (such as a new Data Protection Law). Serbia is currently developing its 2024-2030 national strategy on AI, which is expected to be adopted by the end of the year. As Serbia is also preparing to become an EU Member, it is also likely that it will transpose and issue a law on AI that parallels the AI Act. The Serbian Government also financed AI-related projects with 1 billion euro per year, in the 2020-2025 period. The Fund for Science currently funds 12 projects under the “Program for Development of Projects in the AI Field”.

SwedenThe Swedish Government is currently collecting information to draft a national law on AI, that is in line with the AI Act. But Sweden’s most important tool to get ahead in the AI race comes in the form of investments in the AI field, and the focus on the training of human capital. In fact, Microsoft announced a 3 billion euro investment in AI-related projects, and the training of 250,000 people, highlighting the attractiveness of Sweden in the industry. In 2023 the Government established a commission on AI to enhance the competitiveness of businesses in the sector, which concluded that the public administration would benefit approximately of 14 billion euro per year thanks to the integration of AI in its processes. Sweden also established “AI Sweden”, a government-funded national center for the application of AI, in partnership with entities in both the public and the private sector, as well as universities.

Switzerland

As of today, Switzerland chose a sector-specific approach to AI regulation, including the federal data protection law of 2020 which disciplines automated decisions, granting enhanced transparency and other individual rights that are similar to those granted under the GDPR. However, the legislation might soon be integrated by a new tool, as the Federal Council started an analysis to develop general legislation on AI, by 2025 (which is set to consider the norms of the EU and of the European Council). The goal is to provide Switzerland with a clear and AI-compatible normative landscape. Additionally, the Swiss Federation supports digitalization and technological development projects, including AI programs, in partnership with universities and research institutions, such as the “ETH” in Zurich, or the “EPFL” in Lausanne. Also, “Digital Administration Switzerland” and “AI Switzerland” promote innovation and training in AI-related fields.

Spain

Spain’s main tool to regulate AI is the “National Strategy for Artificial Intelligence 2024”, in line with the AI Act. The Spanish strategy mainly focuses on cybersecurity, which is an essential element for the digital transformation of the economy. In fact, Spanish institutions are currently discussing a Cybersecurity Law, which is set to enter into force in late 2024, to grant a better protection of digital systems. Additionally, Spain established the “Spanish Agency for Artificial Intelligence Supervision” (“AESIA”), with the purpose of granting ethical and transparent practices in the use of AI. The National Strategy allocates 1,5 billion euro – from the National Recovery and Sustainability Plan – and 600 million euro from the State budget, which have already been mobilized. The plan includes investments in supercomputing, the development of language models in Spanish and other co-official languages, the promotion of talents in the AI field, and the expansion of AI in the public and private sectors, with special attention for small and medium enterprises.

United Kingdom

The United Kingdom heavily relies on the GDPR to regulate AI (which also influences automated decisions). The “Artificial Intelligence Regulation Bill” was a tentative to provide the country with horizontal regulation on AI, although its progress was stopped due to the UK’s early elections. However, the Government has already launched several initiatives in support for AI. The “AI Sector Deal” of 2018 invested 1 billion pounds for Research and Development, training and ethical research on AI. Additionally, the “AI and Data Grand Challenge” provides businesses with 2,6 billion pounds from the public sector, and 3 billion from the private one. The “United Kingdom Research and Innovation” program further invested 300 million pounds for proper computing, 250million pounds for the development of AI in healthcare and zero-emission economy, and 100 million pounds in academic centers for technological talents.

Grimaldi Alliance expands in Sweden with SALC, a leading full service law firm with great tradition and expertise.

GA - active internationally in over 50 jurisdictions - and led by Global Managing Partner Francesco Sciaudone, announces the addition of SALC, a Swedish boutique full service law firm with great experience and professional standing.

SALC, founded in 2006, is GA's new partner for Sweden and the Scandinavian countries, completing the range of professional services that can be offered in the area with important expertise in litigation - domestic and international - and corporate.

SALC's founding partner, Dan Engström, has more than 30 years of experience in dispute resolution, as well as in franchise and commercial contract management.Engström is also admitted to handle international arbitrations, particularly in intellectual property matters.

Jan Stålhandske, another prominent partner in the firm, on the other hand, has extensive experience in the infrastructure and utilities sector and has worked on, among other things, the regulation of postal, railway and telecommunications markets.He specialises in advocacy, arbitration, acting as an arbitrator and as a lawyer.

"We are delighted to announce the entry of SALC into the Grimaldi Alliance. Their experience and professionalism allow us to expand GA's coverage to the Scandinavian region and Sweden in particular, continuing GA's international growth. Every day we receive more and more requests for support in cross-border activities from customers and partners of GA, which is increasingly establishing itself as one of the leading international networks,’ said Francesco Sciaudone, Global Managing Partner of the Grimaldi Alliance.

As of May 28, 2024, the revised Energy Performance of Buildings Directive came into force. New rules tackle both climate change and energy affordability, aiming for a significant decrease in greenhouse gas emissions and overall energy use within the EU's building sector. By 2030, all new buildings will need to be zero-emission and by 2050, the entire EU building stock should reach climate neutrality.

The revised Directive:

Sets benchmarks for building efficiency, by introducing minimum energy performance standards and establishing clear expectations for how much energy can be consumed by buildings. For non-residential buildings, this translates to a specific maximum annual energy use per square meter. A great focus is placed on improving the energy efficiency of the worst-performing buildings, likely through renovations and upgrades. Under the new Directive, Member states will have to renovate 16% of the worst-performing non-residential buildings by 2030 and 26% by 2033. Residential buildings, on the other hand, will see a focus on achieving an overall reduction in average energy use. EU Member states are asked with ensuring a 16% decrease by 2030 and a further 20-22% reduction by 2035. Pushes for phasing-out fossil fuels from heating in buildings, to achieve full decarbonisation of the sector. All new residential and non-residential buildings must have zero on-site emissions from fossil fuels as of: (i) 1st January 2028 for publicly owned buildings and (ii) as of 1st January 2030 for all other new buildings, with a possibility for specific exemptions. By 2040, national building renovation plans will include a roadmap with a view to phase out fossil fuel boilers. Member states have to outline how they will adopt measures to decarbonise heating systems, while subsidising stand-alone fossil fuel boilers will be prohibited as of 2025. Promotes sustainability, by supporting the enhancement and use of solar energy in buildings. All new buildings must comply with "solar ready" criteria, which means that they must be suitable for the deployment of solar energy installations (photovoltaic, solar thermal installations etc.) in new buildings, public buildings and existing non-residential ones, under renovation that requires a permit. New rules also encourage sustainable mobility infrastructure, including recharging points for electric cars in or next to buildings, pre-cabling or ducting for future charging infrastructure and parking spaces for bicycles. Foresees general exemptions for agricultural buildings and heritage buildings. Moreover, Member states may decide to also exclude buildings protected for their special architectural or historical merit, temporary buildings, churches, and places of worship.

Articles 30, 31, 33 and 34 of the revised Directive will apply as from 30th May 2026. Member states will have two years to incorporate new rules into their national legislation, while the European Commission will review the Directive by 2028, in the light of the experience gained and progress made during its implementation.

Corporate law 

Disputes relating to a commercial company: the director does not have the choice of jurisdiction

As a rule, the commercial courts have exclusive jurisdiction to hear disputes relating to commercial companies. By way of exception, non-commercial parties who are not members of the company's governing bodies may choose to bring their disputes before the consular or civil courts. When a dispute arises between the director or another corporate officer or partner of a commercial company and that company or another of its partners or corporate officers and concerns a dispute relating to that commercial company, it therefore falls within the exclusive jurisdiction of the commercial court.

The conditions for taking over an act performed in the name of or on behalf of a company under formation: a major change in case law

Under articles L. 210-6 and R. 210-6 of the French Commercial Code, commercial companies acquire legal personality from the date of their registration in the Trade and Companies Register. Persons who have acted in the name of or on behalf of a company under formation before it has acquired legal personality are jointly and severally liable for all acts performed, unless the company, after having been duly formed and registered, takes over the obligations entered into, which are then considered to have been undertaken by the company from the outset. In the case of an act in which it is not expressly stated that it has been entered into in the name of or on behalf of the company being formed, it is for the judge to assess, in a sovereign manner, by examining all the circumstances, both intrinsic to the act and extrinsic, whether it was not the common intention of the parties that it should be entered into in the name of or on behalf of the company and that the company could then, after acquiring legal personality, decide to take over the commitments entered into

Liability of the manager of a limited liability company (“société à responsabilité limitée, SARL”) and cancellation of his current account: limitation period

Liability claims against a former SARL manager and shareholder are subject to a three-year limitation period. A claim for damages brought against the manager for the cancellation of a current account agreement is subject to the same limitation period, and not to the five-year limitation period under ordinary law.

A creditor of a dissolved civil company (“société civile”) must take action against the company before taking legal action against a partner

A creditor of a civil company may only take action against the partners to recover a company debt after having unsuccessfully taken legal action against the company, even if the company is being voluntarily liquidated.

Statutory auditors (“commissaires aux comptes”) cannot be relieved of their duties without serious misconduct or a serious impediment

The removal of a statutory auditor requires proof of sufficiently serious misconduct. In addition, the mere fact that the entity within which the auditor carries out his duties brings an action for liability against the auditor does not constitute an impediment justifying his removal. 

IP/IT and Communication 

Non-pecuniary damage resulting from a material error in the communication of personal data

In a ruling handed down on 25 January 2024, the Court of Justice of the European Union confirmed that in the event of a personal data breach, the data subject may seek compensation for his or her loss under the conditions of ordinary liability law. A purely hypothetical risk of misuse by an unauthorised third party cannot, however, give rise to compensation.This is not the first time that the Court of Justice of the European Union has shed light on the interpretation of Article 82 of the General Data Protection Regulation, under which any person who has suffered material or non-material damage because of unlawful data processing has the right to obtain compensation for the damage caused by the data controller.

Electronic prescribing: conditions for implementation and entry into force

French decree no. 2023-1222 of 20 December 2023 formalises the entry into force of electronic prescribing by specifying the conditions for its implementation by healthcare professionals, the exercise of patients' rights and the cases in which, by way of derogation, electronic prescribing may not be applied.

Employment law

 It is up to the employer to prove the provision of business premises in order to avoid paying compensation to the employee

According to the Social Law Chamber of the French Supreme Court (“chambre sociale de la Cour de Cassation”), the burden of proving the provision of business premises to determine whether to award compensation for home occupation for business purposes lies with the employer and not the employee.

Untaken leave according to European law

The Court of Justice of the European Union has ruled on the interpretation of the directive about “working time” (“temps de travail”). A worker who has not been able to take all his paid annual leave before resigning is entitled to financial compensation. Member States may not limit this right on the grounds of controlling public expenditure.

A new formality for employers offering a permanent contract to an employee who has completed a fixed-term contract or assignment

The “loi Marché du travail” of 21 December 2022 introduced an obligation for employers offering employees a permanent contract in the same or a similar role as the completed fixed-term contract, to notify such an offer in writing. This obligation applies from 1st January 2024.

Lack of a resumption medical visit by the employee: reversal of case law

Until now, if an employee's resumption medical visit was not organised, he could not claim payment of his remuneration. However, he could be compensated for the loss suffered. In a ruling dated 24 January 2024, the French Supreme Court (“Cour de Cassation”) changed its position on compensation for employees whose resumption medical visit is not scheduled: they are now entitled to payment of their remuneration.

2024 Olympic Games: introduction of a derogation from weekly rest periods

In a decree issued on Friday 24 November, the French government authorised companies involved in broadcasting or organising the Paris 2024 Olympic Games that are experiencing an extraordinary increase in workload to suspend their employees' weekly rest periods "two or more times" between 18 July and 14 August.

Declaration of the professional equality Index before 1 March

By 1st March 2024, all companies with 50 or more employees must have calculated and published their professional quality Index on their website. The professional equality Index enables companies to measure the pay gap between women and men and highlights the areas for improvement where these disparities are unjustified.

The conditions under which foreign nationals can become “entrepreneurs individuels” have been clarified

The Immigration Law (“loi immigration”) n. 2024-42 of 26 January 2024 now stipulates that foreign nationals of countries that are not members of the European Union, the European Economic Area (EEA) or the Swiss Confederation may not work as “entrepreneurs individuels” if they do not have a legal residence permit. 

Real estate law

 It is not a violation to rent a furnished tourist accommodation more than the legal annual limit when it is justified by a professional reason, such as a work placement or the pursuit of a course of study

It should be remembered that, in municipalities that have implemented the “prior declaration registration procedure” (“procédure d'enregistrement de la déclaration préalable”) set out in article L 324-1-1 of the French Tourism Code, any person who offers for rent a furnished tourist accommodation that is declared as their principal residence may not do so for more than 120 days per calendar year, except in the case of a professional reason, health reason or case of force majeure. The legal tribunal ruled that an internship or the pursuit of a course of study can also be considered as a professional reason if it is for a specific and limited period. This exception must be demonstrated by the coincidence in time between the business trips and the periods of rental of the furnished tourist accommodation.

Commercial tenants are not liable for damage caused by obsolescence, unless expressly stated otherwise

A clause in a commercial lease requiring the tenant to return the premises in their original condition does not require him to pay for any damage caused by obsolescence. If an inventory of fixtures was drawn up when the tenant entered the premises, he must return the premises as he received them on the original inventory, except for anything that has perished or been damaged by obsolescence or force majeure. 

Tax 

An act may be considered abusive even if a lawful act could have had the same result

The abuse of rights procedure allows the tax authorities to disregard transactions that may not have been inspired by any motive other than that of evading or mitigating the tax charges that the taxpayer would normally have incurred in view of his actual situation or activities. This procedure can only be applied if the transaction resulted in a tax gain for the taxpayer. The French Council of State (“Conseil d'Etat”) clarifies that acts which have no impact on the taxpayer's burden cannot be dismissed as constituting an abuse of rights even if their sole purpose was to evade or mitigate that burden.

Financial sanctions and penalties taxed abroad are not in principle deductible

The French Council of State (“Conseil d’Etat) has recently ruled that the legal provisions which provide for the non-deductibility of tax sanctions and penalties may apply to sanctions imposed by foreign authorities for breaches of foreign legal obligations.

Sale of a business and retirement: only one year left to benefit from the 500,000 € allowance

French Finance Act (“loi de finances”) 2017-1837 of 30 December 2017 introduced an exceptional allowance of 500,000 € on the capital gain on the sale of an executive who sells his or her business and retires. This scheme, which had already been extended, expires on 31 December 2024. Senior company directors planning to sell their business and retire still have a year to take advantage of this attractive tax window.

This newsletter provides a selection of opinions and analysis from our EU legal experts on interesting policy developments, recent case law and new regulatory directions of major industry practices. It is released biweekly and covers areas such as: Competition Law, Sanctions, Trade, Energy, Finance, EU funds, Data IP and Privacy, Life Sciences, Transport and Court of Justice of the European Union news.

The aim is to provide an up–to–date tool for quick and easy consultation on the most current and important topics at EU level.

Competition Law and State Aid Sanctions Trade Energy and Green Deal Banking & Finance EU Funds Life Sciences Transport and Electric Vehicles Data, IP and Privacy Consultions and Calls

EUROPEAN COMMISSION (EC)

Lithuania: the European Commission approves 122 million euro State aid measure to support AB Achema decarbonise its fertiliser production (12.07.2024) – The European Commission has approved, under EU State aid rules, a 122 million euro Lithuanian measure to support AB Achema in decarbonising its fertiliser production processes. The measure will contribute to the achievement of the EU Hydrogen Strategy, the European Green Deal and the Green Deal Industrial Plan targets, while helping to end dependence on Russian fossil fuels in line with the REPowerEU Plan. The aid will take form of a direct grant to support the installation a 171 MW alkaline electrolyser at AB Achema's production site in the Kaunas region of Lithuania. Currently, AB Achema uses natural gas-based hydrogen to produce ammonia, a key input in the production of fertilisers. The electrolyser will produce renewable and low-carbon hydrogen that will be used to produce ammonia. The hydrogen produced by the electrolyser will replace 30% of the hydrogen currently produced from natural gas, thereby reducing carbon dioxide (‘CO2') emissions and demand for natural gas. The electrolyser is envisaged to start operating in 2026. Once completed, the project is expected to avoid the release of at least 5.8 million tonnes of CO2 over the 19 years of expected operation of the electrolyser. AB Achema committed to actively share the experience and technical know-how gained as a result of the project through publications and conferences to contribute to the deployment of clean technologies in the fertilisers industry.

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The European Commission accepts commitments by Apple opening access to 'tap and go' technology on iPhones (11.07.2024) – The European Commission has made commitments offered by Apple legally binding under EU antitrust rules. The commitments address the Commission's competition concerns relating to Apple's refusal to grant rivals access to a standard technology used for contactless payments with iPhones in stores. Apple Pay is Apple's own mobile wallet used to allow iPhone users to pay with their devices in stores and online. Apple's iPhones run exclusively on Apple's operating system ‘iOS'. Apple controls every aspect of its ecosystem, including access conditions for mobile wallet developers. The Commission preliminarily found that Apple has significant market power in the market for smart mobile devices and a dominant position on the in-store mobile wallet market on iOS. Apple Pay is the only mobile wallet that may access the NFC hardware and software (‘NFC input') on iOS to make payments in stores, as Apple does not make it available to third-party mobile wallet developers. In its investigation, the Commission preliminarily concluded that Apple abused its dominant position by refusing to supply the NFC input on iOS to competing mobile wallet developers, while reserving such access only to Apple Pay. The Commission's preliminary view is that Apple's refusal excluded Apple Pay's rivals from the market and led to less innovation and choice for iPhone mobile wallets users. Such behaviour may breach Article 102 of the Treaty on the Functioning of the European Union (‘TFEU'), which prohibits the abuse of a dominant position.

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Slovakia: the European Commission opens in-depth State aid investigation into support to NAJPI for setting up a glass sand extraction sit (09.07.2024) – The European Commission has opened an in-depth investigation to assess whether public support granted to the Slovak company NAJPI a.s. (‘NAJPI') for setting up a glass sand extraction site is in line with EU State aid rules. The Commission will assess in particular whether, at the time of granting of aid, NAJPI could be qualified as an SME. The Commission will also assess whether, at the time of granting of aid, the conditions laid down in the GBER, in particular, concerning economic difficulties were fulfilled, as in such circumstances NAJPI would not qualify for regional aid. Should the Commission conclude that the Slovak support could not benefit from an exemption based on the GBER, it would assess whether the conditions of the 2007-2013 RAG were met.

Link

Germany: the European Commission opens in-depth State aid investigation into 6 billion euro support measure to recapitalise Lufthansa in the context of coronavirus pandemic (08.07.2024) – The European Commission has opened an in-depth investigation to assess whether a German recapitalisation measure of 6 billion euro in favour of Deutsche Lufthansa AG (“Lufthansa”) is in line with EU State aid rules. The German aid measure consisted of an equity component of 306 million euro and two hybrid instrument components, namely, Silent Participation I of 4.7 billion euro with features of a non-convertible equity instrument, and Silent Participation II 1 billion euro with features of a convertible debt instrument. The Commission found the measure to be compatible with EU State aid rules, but the General Court annulled the Commission's decision. The Commission will now carry out a more in-depth investigation to assess further the recapitalisation measure. In that regard, the Commission will focus on the following points: (i)the eligibility of Lufthansa for the aid; (ii) the need for a so-called “step-up” or similar mechanism to incentivise the exit of the State from the capital;(iii) the price of the shares at the time of a potential conversion of Silent Participation II into equity; (iv) the existence of Significant Market Power at airports other than Frankfurt and Munich, at least at Dusseldorf and Vienna airports;(v) certain aspects of the structural commitments imposed on Lufthansa.

Link

Italy: the European Commission leers Italian public support for Caremar ferry service (08.07.2024) – The European Commission has concluded that the public service compensation granted from 01.01.2009 to 31-07.2012 to Caremar SpA (‘Caremar') for the operation of ferry services in Italy is in line with EU State aid rules. The same applies to the compensation granted to Caremar under the public service contract concluded for the period between 16.07.2015 and 15.07.2024, after Caremar was acquired by the temporary association of companies SNAV/Rifim Srl (‘SNAV/Rifim'). Following a series of complaints, the Commission launched in October 2011 an in-depth investigation into several public support measures in favour of companies of the former Tirrenia Group and their respective acquirers. In November 2012, the Commission extended the scope of this investigation to include additional measures.

Link

France: the European Commission approves 10.82 billion euro State aid scheme to support offshore wind energy to foster the transition to a net-zero economy (03.07.2024) – The European Commission has approved a 10.82 billion euro French scheme to support the deployment of offshore wind energy, which will help foster the transition towards a net-zero economy. In particular, the measure will support the construction and operation of two bottom-fixed offshore wind farms: one in the South Atlantic zone and another in the Centre Manche 2 zone in Normandy. The South Atlantic wind farm is expected to have a capacity of 1000 to 1200 MW and to generate at least 3,9 TWh of renewable electricity per year. The Normandy wind farm is expected to have a capacity of 1400 to 1600 MW and to generate at least 6,1 TWh of renewable electricity per year. The aid will be granted on the basis of transparent and non-discriminatory bidding processes, which will be organised to select one beneficiary per offshore zone. Under this scheme, the aid will take the form of a monthly variable premium under a two-way contract for difference (‘CfD'), which will be calculated by comparing a reference price, determined in the tender offer of the beneficiary (‘pay as bid'), to the market price for electricity.

Link

The European Commission clears proposed acquisition of stake in ITA Airways by Lufthansa, subject to conditions (03.07.2024) – The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of joint control of ITA Airways (‘ITA') by Deutsche Lufthansa AG (‘Lufthansa') and the Italian Ministry of Economy and Finance (‘MEF'). The approval is conditional upon full compliance with the remedies offered by Lufthansa and the MEF. Pursuant to the commitments proposed, Lufthansa and the MEF can only implement the transaction following the Commission's approval of suitable remedy takers for each of the short-haul, long-haul and Milan Linate commitments. The Commission will assess the suitability of remedy takers in the context of a separate buyer approval procedure. These commitments fully address the competition concerns identified by the Commission. Therefore, the Commission concluded that the transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments. Under supervision of the Commission, an independent trustee will monitor their implementation.

Link

Sweden: the European Commission approves 3 billion euro State aid scheme to support the roll-out of biogenic carbon dioxide capture and storage (02.07.2024) – The European Commission has approved, under EU State aid rules, a 3 billion euro Swedish scheme to support carbon capture and storage (‘CCS') aimed at reducing carbon dioxide (‘CO2') released during the combustion or processing of biomass (‘biogenic CO2'). The measure will contribute to the achievement of Sweden's climate targets and the EU's strategic objectives under the European Green Deal, in particular the 2050 climate neutrality goal. Under the scheme, the aid will be awarded through a competitive bidding process, with the first auction expected in 2024. Auctions will be open to companies that (i) carry out an activity in Sweden, emitting biogenic CO2, and (ii) implement projects with a capacity to capture and store at least 50,000 tonnes of biogenic CO2 per year. Under 15-year long contracts, beneficiaries will receive a grant per tonne of biogenic CO2 that is permanently stored. The aid received will be adjusted taking into account possible revenues that might stem from the projects (e.g., thanks to voluntary carbon removal certificates), as well as other public support received for the same project. The scheme will run until 31.12.2028.

Link

Bulgaria: the European Commission approves 25.51 million euro restructuring State aid for Bulgarian Posts (02.07.2024) – The European Commission has approved, under EU State aid rules, Bulgaria's plans to grant postal operator Bulgarian Posts restructuring aid for up to 25.51 million euro. The measure will enable the company to restore its long-term viability while minimising competition distortions. The restructuring plan sets out a package of measures for streamlining Bulgarian Post's operations, optimising its network and reducing costs. In parallel, Bulgarian Posts will develop or provide services such as telemedicine or administration through its ubiquitous network on behalf of other public entities, bringing such services closer to citizens in remote areas not well served.

Link

The European Commission approves 1.3 billion euro restructuring State aid for airline SAS (28.06.2024) – The European Commission has approved, under EU State aid rules, Denmark and Sweden's plans to grant Scandinavian Airlines System AB (‘SAS') restructuring aid for up to 1.3 billion euro. The measure will enable the company to restore its long-term viability while minimising competition distortions. The plan sets out a package of measures for streamlining SAS' fleet, optimising its network, reducing costs, financial burdens and increasing revenues. The plan, which is supported with new aid from Sweden and Denmark through various instruments and different amounts, is necessary to make SAS viable again, following the slower than expected recovery of the air travel demand since the outbreak of the coronavirus pandemic and the adverse effects of Russia's invasion of Ukraine.

Link

Referendum in Ticino: new facilities for taxpayers

On June 9, 2024, the people of Ticino voted on an amendment to the 1994 Tax Law, thus avoiding a 3% increase on taxes from 2023.

The approved reform is beneficial and provides certain concessions for taxpayers. Specifically:

- Linear reduction of income tax rates by 1.667% from 2024.

- Increase in deductions for other business expenses (to the flat amount of CHF 3,000).

- Reduction of the top rate for inheritance and gift tax, favoring new family models and business transfers (with reduction of the top rate for concubines and other parental figures by affinity from 41% to 15.5%)

- Capping the rate on pension plan capital benefits at 3%, preventing the departure of good taxpayers outside the canton

- Reducing the maximum cantonal tax rate to 12% for individuals, improving the canton's position in intercantonal tax competition.

Implementation of the Reform thus mitigates the effects of the cantonal tax rate hike and encourages the arrival of new taxpayers. In addition to the immediate benefits, the proposed changes to the Tax Law stimulate cantonal economic growth in the long run by increasing overall tax revenues to be allocated to public works and services.

New FACTA agreement between the U.S. and Switzerland

The Swiss Confederation and the United States on June 27, 2024 signed a new Foreign Account Tax Compliance Act (FATCA) agreement in Bern. Currently, Switzerland unilaterally submits financial information to the United States. Under the new agreement, which is scheduled to enter into force on Jan. 1, 2027, this information will be mutually exchanged automatically.

To date, Switzerland operates under Model 2, in which Swiss financial institutions report data on U.S. clients' accounts, with consent, directly to the U.S. tax authority, and, in the absence of consent, the U.S. must follow the ordinary administrative assistance procedure. The United States, for its part, does not currently share account data with Switzerland.

In October 2014, the Federal Council decided to switch to automatic exchange of information, instructing the Federal Department of Finance to negotiate with the United States to switch from Model 2 to Model 1. Under Model 1, tax authorities in the two countries will automatically exchange information on financial accounts. Swiss financial institutions will transmit the data to the Federal Tax Administration, which in turn will forward it to U.S. authorities.

This new agreement is a significant step forward toward greater international tax transparency and cooperation, and we are available for any clarifications we may have.

Tax

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) established the rate applicable to the calculation of late payment interest accrued during February 2024. It was established that the weighted average interest rates for loans of the six (6) principal commercial and universal banks of the country with the highest volume of deposits, excluding portfolios with prime rates, set by the Venezuelan Central Bank (VCB) for February 2024 is of 58.59%, which rate is to be increased 1.2 times for the calculation of late payment interest accrued during said month. (Official Gazette of 06/03/2024. Administrative Ruling SNAT/2024/000033).A Presidential Decree extended until 08/31/2024 the validity of Decree No. 4.907, published in Official Gazette No. 6.784 Extraordinary of 12/29/2023, which established the exemptions from import duties and value added tax for the importation of the goods indicated in the same. Therefore, the exemptions or benefits established in said Decree No. 4.907 continue to be in force, in the terms and conditions established in the same. (Official Gazette No. 6.818 Extraordinary of 06/28/2024. Decree No. 4.967. Entry into force: As from 07/01/2024).

Miscellaneous

The Ministry of the Popular Power for National Trade declared the following standards as Venezuelan COVENINStandards of national character; the content of said standards will be published in the institutional site of the Deconcentrated Service of Standardization, Quality, Metrology, and Technical Regulations (Servicio Desconcentrado de Normalización, Calidad, Metrología y Reglamentos Técnicos SENCAMER) (www.sencamer.gob.ve).(Official Gazette of 06/05/2024, 06/12/2024, and 06/28/2024. Entry into force: Upon publication in the Official Gazette).

The recent EDPB opinion on the use of the “Pay or Consent” system

When browsing on the websites of some newspapers or other online platforms, users are increasingly faced with a choice: subscribe to the service or consent to the use of their data for receiving customized advertising content.

The “Pay or Consent” system is a widespread practice but not necessarily lawful. This issue was addressed in the EDPB's recent opinion (Opinion 08/2024 of 17 April 2024), which was requested by some national Data Protection Authorities (Netherlands, Norway and Germany) and, moreover, also takes into account the ruling of the Court of Justice of the European Union in case C-252/21, in which Meta was involved.

One of the primary legal concerns regarding the “Pay or Consent” system is undoubtedly the validity of consent, which, under the GDPR must be, inter alia, freely given. According to the EDPB, a user's freedom of choice also depends on the options available to him/her, and it is hard to imagine that platforms can obtain freely given consent if the choice is limited to paying a subscription or “paying” with one's data.

The EDPB argues that Data controllers should not merely offer a single alternative involving payment alongside a service that includes the processing of data for behavioural advertising purposes. Instead, they should consider providing data subjects with a third “equivalent alternative” that does not entail paying a fee. This would enable users to make a genuine choice; in fact, if users can access the service both free of charge and also without necessarily having to consent to behavioural advertising, it can be inferred that those who consent to profiling do so freely and knowingly, rather than opting for the only (seemingly) free alternative.

Another critical factor affecting the validity of the consent given is the power imbalance between a proprietor holding a significant market position (e.g. a newspaper) and the data subject (the website user). This imbalance is heightened by the type of service and the fact that it can be said to be “essential” for users. In essence, in “Pay or Consent” systems, users who neither wish to pay nor consent to having their data processed for behavioural advertising may be forced to forgo essential services such as staying informed.

While the freedom of consent given is undoubtedly the most controversial in this context, all other conditions for consent to be deemed lawful must also be met: it must be free, specific, informed, unambiguous and obtained in a manner that is clear and comprehensible to the data subject. Furthermore, data controllers must of course adhere the other principles of the GDPR when processing personal data.

For more information:

EDPB, 'Opinion 08/2024 on Valid Consent in the Context of Consent or Pay Models Implemented by Large Online Platforms', 17 April 2024.

AI Act: new rules on Artificial Intelligence in Europe

On 21 May 2024, the final text of the AI Act was approved.

It is the world's first regulation on artificial intelligence, whose goal is to promote the development and adoption of safe and reliable AI systems within the European single market, ensuring they operate in accordance with the fundamental freedoms and rights of citizens, including the right to protection of personal data.

The AI Act aims to stimulate new investments and foster innovation in artificial intelligence, a sector now deemed crucial not only in the European market but also globally, recognized as a strategically important element across various domains and for many stakeholders.

First of all, the AI Act classifies AI systems based on their risk to the rights and freedoms of stakeholders. In fact, AI systems deemed to present a “limited risk” are subject to less stringent transparency obligations. In contrast, “high-risk” AI systems must comply with a number of specific requirements and face more stringent transparency obligations, except for AI systems authorised by law and used to ascertain, prevent, investigate or prosecute crimes.

In addition, the AI Act introduces a number of prohibitions regarding certain practices considered to have an element of risk, including:

adoption of techniques that manipulate individual cognition and behaviour; random collection of biometric data from public spaces, the Internet or via video surveillance systems; use of emotion recognition systems in workplace or educational settings; implementation of social scoring systems; biometric processing to infer data belonging to special categories; use of predictive policing systems targeting specific individuals.

The AI Act also establishes new regulation for so-called foundation models, i.e. AI-based computational systems (e.g. ChatGPT) used for various activities and purposes, such as generating videos, texts and images, speech-language conversations, calculations and more.

In connection with such systems, the AI Act requires providers to conduct impact assessments on high-risk systems or systems used in the banking and insurance sector. Other obligations imposed on these system providers include the obligation to conduct tests to try to resolve systemic risks and to take measures aimed at ensuring an adequate level of security of the hardware and software infrastructure.

Another aspect involves implementing measures to foster the development and adoption of safe AI. In this respect, the competent authorities of each Member State are required to establish regulatory testing spaces dedicated to AI to ensure a controlled environment that fosters innovation and facilitates the development, training, testing and validation of AI systems.

In this context, it is crucial that AI systems undergo testing before being placed on the market. Therefore, tests must be conducted under real conditions, i.e. on the basis of existing data provided by subjects who have consented to their data being processed for AI regulatory testing purposes.

In any case, there is a strong emphasis on safeguarding the right to personal data protection, since the collection of data by AI systems poses a high risk to the rights of data subjects if protective measures are not taken or action is not taken to mitigate the risk of unlawful processing.

The AI Act therefore establishes specific rules to protect individuals whose data are processed, especially with regard to special categories of data (as in the case of “high-risk” AI systems that utilize datasets to train, test and validate AI-based learning models).

Providers of such systems are allowed to process data belonging to special categories, provided that: a) the use of such data is limited and appropriate security measures are taken, b) appropriate measures are taken to protect data and implement adequate safeguards; c) data are not disclosed or notified to third parties; and d) data are deleted once the purpose of the processing has been achieved. 

Finally, the AI Act includes sanctions for those who violate the provisions thereof. In fact, depending on the nature of the breach, the competent authority can impose a penalty equal to a maximum amount (ranging between EUR 7.5 and 35 million) or, if the offender is a company, a percentage of the total annual worldwide turnover for the preceding year, whichever is greater. However, SMEs or start-ups will benefit from reduced penalties.

For more information: Artificial Intelligence Act

The Privacy Authority has sanctioned a municipality for unlawful video surveillance and violations of employee privacy

The Data Protection Authority has sanctioned a municipality for improperly processing personal data through video surveillance, prompted by an employee’s complaint regarding a camera placed near the time-clock, the only tool used to record employees' working hours. The municipality had used the images to addressed alleged breaches of the employee’s official duties, such as not adhering to her working hours, and, when questioned by the Privacy Authority, the municipality cited security concerns to justify the presence of the camera. However, the Privacy Authority determined that the municipality failed to comply with the remote oversight procedures and had used the footage for disciplinary purposes. Moreover, the municipality had not provided adequate information to workers and visitors regarding the camera’s personal data processing.

Although the fine imposed on the municipality was modest, the incident underscores the critical nature of this issue, which requires careful handling by companies.

For more details: provision dated 11 April 2024 (10013356)

Telemarketing: the Privacy Authority fined two energy operators 100,000 Euro each

Personal Data Protection Authority has imposed fines on two energy operators of EUR 100,000 each for unlawful processing of personal data. The sanctions were prompted by two complaints and 56 reports from users who received unsolicited phone calls and unauthorized activations of energy contracts. Investigations revealed that the calls, made without the consent of the individuals involved, primarily targeted users listed in the Public Opposition Register (PRo). Call centres, after acquiring users' contacts from third-party companies and agents or intermediaries, illegally contacted those users, many of whom subsequently signed supply contracts. The Authority also ordered the call centres to implement appropriate technical, organisational and monitoring measures to ensure compliance with privacy laws when processing the personal data of the persons involved.

For more details: provision of 11 April 2024 (10008076)

Video surveillance with facial recognition in Rome: the Privacy Authority initiate an investigation

Personal Data Protection Authority has launched an inquiry into a project involving video surveillance with facial recognition at metro stations in Rome. According to press reports, in preparation to the Jubilee, the Administration of “Roma Capitale” intends to deploy cameras equipped with facial recognition technology, to detect “disruptive actions” in the metro by those who have committed “non-compliant acts” in the past. The Authority therefore requested the Administration of Roma Capitale to provide a technical description of the facial recognition technology, its purpose, the legal basis for processing biometric data, and a copy of the data protection impact assessment. The Administration was granted a 15-day deadline to respond. The Authority also reminded that a moratorium is currently in effect until 2025 on the use of video surveillance systems with facial recognition technology, in public places or places accessible to the public, by public authorities or private entities. Only judicial authorities, in the course of their judicial duties, and public authorities, engaged in crime prevention and suppression, may carry out such processing activities, subject to the Authority’s approval.

For further information: release dated 9 May 2024

Amendments to the Privacy Code: streamlined rules for medical, biomedical and epidemiological research

Recent amendment to the Italian Privacy Code, enacted through the conversion of Decree-Law no. 19 of 2 March 2024, brings significant changes to scientific research in the medical, biomedical and epidemiological fields. In particular, under the revised Article 110 of the Privacy Code, when obtaining prior consent of the data subject is not possible, patients' personal data may be processed for the purposes of scientific research in the medical, biomedical and epidemiological fields provided an ethics committee has given a favourable opinion and the guarantees outlined by the Privacy Authority are met. The requirement for prior authorisation from the Privacy Authority has therefore been replaced by compliance with the guarantees set out by the Privacy Authority in the ethical rules on the processing of data for research purposes. 

The Personal Data Protection Authority will therefore have to establish general measures applicable to a plurality of projects through these ethical rules, which will undergo public consultation, also involving the scientific community in their formulation.

This reform aims to strike a balance between the need to protect personal data and fostering scientific research, which is particularly crucial in public health.

For more details: provision dated 9 May 2024 (10016146)

EDPB: Annual Report published

The annual report of the European Data Protection Board (“EDPB”) provides an overview of the board’s activities throughout the year (recommendations and best practice reports issued by the board, binding decisions, practical application of guidelines, etc.).

In 2023, the EDPB adopted two binding decisions, one of an urgent nature, and two new guidelines. In addition, the EDPB issued 37 opinions pursuant to Article 64 of the GDPR, most of them focusing on binding corporate rules and the accreditation requirements for certification bodies. Finally, the EDPB collaborated with the EDPS  to release two legislative opinions.

With specific reference to binding decisions, notable mentions include:

Binding Decision 1/2023, by which the EDPB resolved a dispute concerning data transfers by Meta Platforms Ireland Limited. Binding Decision 2/2023, by which the EDPB resolved a dispute concerning the processing of data of users aged between 13 and 17 years by TikTok Technology Limited, highlighting issues with registration and video posting pop-ups not offering objective and neutral options to the user. 

In addition, the EDPB published the following guidelines in 2023:

Guideline 03/2022, issued on 14 February 2023, on Misleading Design Patterns in Social Media Platforms, aiming to provide recommendations and practical guidance to social media providers on how to identify and eliminate misleading designs in social media platforms. Guidelines 05/2022 on the use of Facial Recognition Technology (FRT) in law enforcement. The guidelines provide relevant information for European and national legislators, as well as law enforcement authorities on implementing and using such FRT systems.

For further information: EDPB Annual Report

EDPB's opinion on the use of facial recognition technologies by airport operators

In late May, the EDPB issued an opinion (Opinion No. 11/2024) on the use of facial recognition technologies to streamline passenger flow and the storage of biometric data by airport operators.

The opinion, in particular, examines the compatibility of such practices with:

the principle of data retention limitation (Art. 5(1)(e) GDPR), the principle of integrity and confidentiality (Article 5(1)(f) GDPR), data protection by design and by default (Article 25 GDPR), security of processing (Article 32, GDPR).

As a preliminary remark, the EDPB highlights that there is no uniform EU legal obligation for airport operators and airlines to verify the name on a passenger's boarding pass against their identity document. However, any such obligation may be governed by national law. Therefore, in the absence of national requirements for identity verification of passengers, biometric data cannot be used for recognition purposes, as this would entail excessive processing of personal data.

That said, the EDPB evaluated the compliance of the biometric data processing of passengers in four distinct scenarios.

Data stored exclusively on passengers' personal devices

In this scenario, biometric data reside solely on passengers' personal devices, under their exclusive control, and are used for authentication at various airport checkpoints. This approach could align with GDPR requirements, provided that adequate security measures are implemented and that there is no alternative, less intrusive solutions available.

Centralized data storage at the airport with Passengers holding access keys

In the second scenario, biometric data are centrally stored at the airport in encrypted form, with the decryption key being held exclusively by passengers. The EDPB acknowledges that centralised storage poses risks, but these can be mitigated with appropriate security measures, ensuring GDPR-compliance, provided that the storage period is justified and limited to the minimum necessary.

Centralized data storage controlled by airport operators

Another scenario examined by the EDPB involves central storage of biometric data under the control of airport operators, enabling passenger identification, for a maximum period of 48 hours. According to the EDPB, this approach is incompatible with the GDPR, as centralization poses high risks to passengers' fundamental rights in the event of a data breach.

Cloud-based data storage controlled by airlines or their service providers

Finally, the EDPB evaluates a scenario where biometric data is stored in the cloud under the control of an airline or its service provider, facilitating passenger identification. This scenario carries substantial risks as data may be accessible to multiple entities, including non-EEA providers. The EDPB concludes that this scenario is incompatible with the GDPR due to the high risk of a data breach and the lack of control by passengers over their own data.

In all instances, only biometric data of passengers who actively register and provide their consent should be processed.

In conclusion, the EDPB determined that scenarios where biometric data is stored exclusively by passengers (scenario 1) or in a centralized database with decryption keys solely in the possession of users (scenario 2), if implemented with a set of recommended minimum safeguards, are the only approaches that are compatible with the above-mentioned GDPR principles and that adequately mitigate the intrusiveness of data processing while ensuring maximum control for data subjects over their personal data.

Conversely, scenarios 3 and 4 are deemed excessively intrusive by the EDPB, lacking proportionality in relation to the expected benefits. Therefore, solutions based on centralized at the airport or in the cloud, without passengers holding decryption keys, cannot be considered compliant with the above-mentioned principles.

For more information:

EDPB, 'Opinion 11/2024 on the use of facial recognition to streamline airport passengers' flow (compatibility with Articles 5(1)(e) and(f), 25 and 32 GDPR', 23 May 2024. 

Common errors in the submission process for Portuguese nationality

The process of obtaining Portuguese nationality can be complex and prone to errors if not approached with care and attention. Errors or omissions can delay the completion of the process, result in additional costs for the applicants, and even lead to the rejection of the application.

Below, we explore some of the most common mistakes made during the submission process for Portuguese nationality:

1. Incomplete or incorrect documentation: Many applicants fail to gather all necessary documents or submit documents that do not meet the specified requirements, such as lack of legalization/apostille or inadequate translation.

2. Errors in application or forms: Incorrectly filling out application forms, omitting information, or making errors in personal data.

3. Submission of outdated documents: It is common for applicants to submit documents that are outdated, such as birth certificates, marriage certificates, and criminal record certificates that need to be within the deadlines required by the Portuguese authorities.

4. Not respecting deadlines: Delaying the submission of necessary documents requested by the Conservatories within the stipulated deadlines.

5. Not presenting sufficient evidence: It is common for applicants not to provide sufficient evidence to demonstrate their right to Portuguese nationality, for example, the lack of sufficient evidence of a genuine connection with the Portuguese community, which is essential in certain cases of naturalization, or the absence of proof of filiation, in requests for children or grandchildren of Portuguese.

6. Lack of awareness of current laws and requirements: Basing the application on outdated information due to changes in nationality laws that were not observed by the applicant or submitting the request without compliance with specific case requirements. In many cases, the transcription of marriage, recognition of de facto union, or other proofs may be necessary requirements before submitting the application.

Avoiding these common errors can significantly increase your chances of success in the process of Portuguese nationality.

The key to a successful application is careful preparation, attention to detail, and, when necessary, the support of professionals experienced in immigration and nationality.

COMPETITION LAW AND STATE AID

EUROPEAN COMMISSION (EC)

Italy: the European Commission approves 2 billion euro State aid measure to support STMicroelectronics to set up a new semiconductor manufacturing facility (31.05.2024) – The European Commission has approved, under EU State aid rules, a 2 billion euro Italian measure to support STMicroelectronics (‘ST') in the construction and operation of an integrated chip manufacturing plant for Silicon Carbide (‘SiC') power devices in Catania, Sicily. The measure will strengthen Europe's security of supply, resilience and digital sovereignty in semiconductor technologies, in line with the objectives set out in the European Chips Act Communication. The measure will also contribute to achieving the digital and green transitions.

Link

The European Commission amends Guidelines on Regional State aid to allow increased support to Strategic Technologies for Europe Platform projects (31.05.2024) – The European Commission has adopted an amendment to the Guidelines on Regional State aid (‘RAG') to allow Member States to grant higher amounts of regional aid for investment projects covered by the Strategic Technologies for Europe Platform (‘STEP'). The STEP aims to support the development and manufacturing of critical technologies relevant to the EU green and digital transitions, as well as the EU's strategic sovereignty. In particular, the nee amendment increases levels of regional aid for investment projects covered by the STEP by up to 10 percentage points in the regions eligible for aid under Article 107(3)(a) of the Treaty on the Functioning of the European Union and 5 percentage points in the regions eligible for aid under Article 107(3)(c) of the Treaty on the Functioning of the European Union (so-called ‘c' areas).

Link

The European Commission approves KKR's acquisition of NetCo (30.05.2024) – The European Commission has approved unconditionally, under the EU Merger Regulation, the acquisition by KKR & Co. Inc. (‘KKR') of NetCo. The Commission concluded that the transaction would raise no competition concerns in the European Economic Area (‘EEA'). In particular, the decision concerns the acquisition by KKR of NetCo, which comprises the primary and backbone fixed-line network business of Telecom Italia S.p.A. (‘TIM') as well as FiberCop S.p.A (‘FiberCop'). FiberCop is a joint venture between TIM and KKR comprising TIM's secondary fixed-line network. The European Commission investigated the impact of the transaction on the market for wholesale broadband access services in Italy and concluded that it would not significantly reduce the level of competition.

Link

The European Commission approves more than 1 billion euro of State aid by seven Member States for the fourth Important Project of Common European Interest in the hydrogen value chain (28.05.2024) – A fourth Important Project of Common European Interest (‘IPCEI') to support research, innovation and the first industrial deployment in the hydrogen value chain. The project contributes to the EU's target of 90% reduction of emissions from the mobility and transport sectors, in order for the EU to become climate-neutral by 2050. By fostering the use of hydrogen as a fuel, it will also help achieve the objectives of the European Green Deal, the EU Hydrogen Strategy and the Sustainable and Smart Mobility Strategy. The project, called ‘IPCEI Hy2Move', was jointly prepared and notified by seven Member States: Estonia, France, Germany, Italy, Netherlands, Slovakia and Spain.

Link

The European Commission approves up to 1 billion euro of State aid by six Member States for the first Important Project of Common European Interest in the health sector (28.05.2024) – The project, called “IPCEI Med4Cure”, was jointly notified by six Member States: Belgium, France, Hungary, Italy, Slovakia and Spain.IPCEI Med4Cure concerns research and development projects covering all key steps of the pharmaceutical value chain from collection and study of cells, tissues and other samples, to sustainable production technologies of breakthrough therapies, including personalised treatments, and to application of advanced digital technologies. The project aims at accelerating medical advancement and at fostering the resilience of the EU health industry by enhancing drug discovery, in particular for unmet medical needs such as rare diseases and developing innovative and more sustainable production processes for pharmaceuticals. These developments will improve the quality of healthcare and increase the EU's preparedness for emerging health threats while contributing to the green transition.

Link

Czech Republic: the European Commission approves State more than 3 billion euro aid scheme to support high-efficiency combined heat and power generation (27.05.2024) – The beneficiaries are operators of new or modernised CHP installations in Czechia that meet the definition of high-efficiency cogeneration as set out in the Energy Efficiency Directive. All technologies and projects that enable the production of electricity from high-efficiency CHP installations are eligible, except for those powered by solid fossil fuels, diesel and oil. Projects involving natural gas will be required to either close the aided installations or enable switch to renewable and low-carbon gases by 2050, to avoid lock-in of natural gas. Under the scheme, the aid will take the form of a feed-in premium (bonus) for each MWh of produced electricity for a duration of 15 years. The amount of bonus is set through tenders, except for small installations (up to 1 MWe) where the amount is set administratively by the Czech Energy Regulatory Office on an annual basis and limited to the funding gap.

Link

France: the European Commission approves State 4 billion euro aid scheme to support decarbonisation measures in the manufacturing sector (24.05.2024) – Under this measure, the aid will take the form of direct grants amounting to up to 30% of the project's investment costs. The measure will be open to companies active in the manufacturing sector in France. Eligible electrification projects must lead to a reduction of greenhouse gas emissions from industrial processes of at least 40% compared to, while energy efficiency projects must lead to a reduction in the energy consumed in industrial processes of at least 20% compared to today. For investments relating to activities covered by the EU Emission Trading System (‘ETS'), the emissions reduction must go below the relevant ETS benchmarks in force at the time of granting the aid.

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The European Commission fines Mondelēz almost 350 million euro for cross-border trade restrictions (23.05.2024) – Mondelēz, headquartered in the US, is one of the world's largest producers of chocolate and biscuit products. Its portfolio includes well-known chocolate and biscuit brands such as Côte d'Or, Milka, Oreo, Ritz, Toblerone and TUC and until 2015 coffee brands such as HAG, Jacobs and Velours Noir. The Commission's investigation found that Mondelēz breached EU competition rules: (i) by engaging in anticompetitive agreements or concerted practices aimed at restricting cross-border trade of various chocolate, biscuit and coffee products; and (ii) by abusing its dominant position in certain national markets for the sale of chocolate tablets. The Commission concluded that Mondelēz's illegal practices prevented retailers from being able to freely source products in Member States with lower prices and artificially partitioned the internal market. Mondelēz' aim was to avoid that cross-border trade would lead to price decreases in countries with higher prices.

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Germany: the European Commission approves State almost 2 billion euro aid scheme to support rail freight transport operators providing single and group wagon transport (21.05.2024) – The aim of the scheme is to help rail operators cover part of the high operating cost. In doing so, the scheme aims to support and preserve the modal shift from road to rail transport, thus promoting a greener means of transport. In single wagon load transport, individual wagons or groups of wagons from different consignors are bundled together to form one train. On the contrary, wagon group transport keeps the same composition from the origin to the destination and is eligible under the scheme for journeys up to a maximum distance of 300 km if operated by short block trains with up to 15 wagons. Both types of transport struggle to reach economic viability. Single wagon load transport entails high costs due to its complex and multi-step nature resulting from the switching and shunting of wagons. Wagon group transport operated by short block trains does not benefit from economies of scale due to the lower number of wagons and the short distances they serve.

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RUSSIAN SANCTIONSCOUNCIL OF THE EUROPEAN UNION (COUNCIL)

DPRK: EU sanctions nine additional individuals and entities involved in the country’s activities related to illegal weapons programmes and supporting Russia’s war of aggression against Ukraine (31.05.2024) – The Council sanctioned a further six individuals and three entities in view of sanctions evasion activities carried out by the Democratic People’s Republic of Korea’s (DPRK) that could generate funds for its illegal nuclear and ballistic missile programmes, in violation of and with flagrant disregard for the relevant UN Security Council resolutions, and in view of the military support given by the DPRK to Russia’s war of aggression against Ukraine.

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Iran: EU lists more individuals and entities for the transfer of drones for Russia’s war of aggression against Ukraine and for the transfer of drones and missiles in the Middle East and Red Sea region (31.05.2024) – The Council adopted restrictive measures against six individuals and three entities for their role in the transfer of unmanned aerial vehicles (UAVs) to Russia in support of its war of aggression against Ukraine; the transfer of UAVs or missiles to armed groups and entities undermining peace and security in the Middle East and the Red Sea region; or for being involved in Iran’s UAV programme.

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Information manipulation in Russia’s war of aggression against Ukraine: EU lists two individuals and one entity (27.05.2024) – The Council decided to impose restrictive measures against two individuals and one entity responsible for conducting propaganda actions targeted at civil society in the EU and its neighbouring countries, gravely distorting and manipulating facts in order to justify and support Russia's war of aggression against Ukraine. The propaganda has repeatedly and consistently targeted European political parties, especially during election periods, as well as targeting civil society, asylum seekers, Russian ethnic minorities, gender minorities, and the functioning of democratic institutions in the EU and its member states.

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Russia: EU sets up new country-specific framework for restrictive measures against those responsible for human rights violations and lists 20 persons (27.05.2024) – The Council established a new framework for restrictive measures against those responsible for serious human rights violations or abuses, repression of civil society and democratic opposition, and undermining democracy and the rule of law in Russia. The decision to establish this new sanctions’ regime is part of the EU’s response to the accelerating and systematic repression in Russia. The new regime was proposed by the High Representative for Foreign Affairs and Security Policy, Josep Borrell, after the untimely death of the opposition politician Alexei Navalny in Siberian prison in February.

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TRADEEUROPEAN COMMISSION (EC)

EU requests World Trade Organization consultation on Colombia’s compliance in frozen fries dispute (31.05.2024) – The European Commission has launched compliance proceedings against the Republic of Colombia in view of its failure to comply with rulings by the WTO Panel and Appeal Arbitrators concerning anti-dumping duties on imports of frozen fries from Belgium, the Netherlands and Germany. This is why the EU is making recourse to the WTO’s compliance consultation process. With this step, the EU seeks to preserve the rights of EU exporters and to send a signal to Colombia – as well as other countries intending to limit EU exports – that anti-dumping investigations need to be carried out in full respect of WTO rules.

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COUNCIL OF THE EUROPEAN UNION (COUNCIL)

EU-Kenya: Council of the EU takes final step to allow the implementation of the Economic Partnership Agreement (30.05.2024) – The Council of the European Union adopted a decision on the conclusion of the EU-Kenya Economic Partnership Agreement (EPA). The agreement will provide duty-free, quota-free EU market access to all exports from Kenya (except arms) as soon as it enters into force, as well as partial and gradual opening of the Kenyan market to imports from the EU. This will boost trade in goods and create new economic opportunities, with targeted cooperation to enhance Kenya's economic development.

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The Council adopts conclusions on the future of industrial policy (24.05.2024) – The Council of the European Union, on the initiative of the Belgian presidency, has adopted conclusions on 'A competitive European industry driving our green, digital and resilient future'. Boosting the competitiveness of European industry should be high on the political agenda of the next European Commission and these conclusions provide the way forward towards a new European competitiveness deal. The conclusions analyse the situation of the EU's industrial sector, explore ways to improve innovation, access to finance and the business environment for manufacturers, and propose the main principles underlying a future EU industrial policy.

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WORLD TRADE ORGANIZATION (WTO)

The European Union initiates compliance proceedings over Colombian duties on frozen fries (04.06.2024) – The European Union has requested World Trade Organization (WTO) consultations with Colombia to address measures taken by Colombia to comply with an earlier WTO panel ruling and arbitration award regarding Colombia’s anti-dumping duties on imports of frozen fries originating in Belgium, the Netherlands and Germany.

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The European Union and Australia affirm intention to implement recent World Trade Organization rulings (24.05.2024) – The European Union and Australia affirmed their intention to implement recent World Trade Organization (WTO) panel rulings regarding EU measures concerning palm oil and biofuels from Malaysia and Australian duties on Chinese imports at a meeting of the Dispute Settlement Body (DSB). China also reported to the DSB on its implementation of a WTO ruling regarding Chinese duties on steel imports from Japan.

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ENERGY AND GREEN DEALEUROPEAN COMMISSION (EC)

The European Commission starts working on a new pilot mechanism to boost the hydrogen market (03.06.2024) – The European Commission takes further steps to support the development of the European hydrogen market by launching work on a pilot mechanism. The new mechanism was created under the recently adopted decarbonised gases and hydrogen package and aims to accelerate investments by providing a clearer picture of the market situation of both off-takers and suppliers and facilitating contacts between them. It will be in place for five years and will be part of the European Hydrogen Bank.

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The European Commission welcomes the new EU Methane Regulation to reduce harmful emissions from fossil fuels in Europe and abroad (27.05.2024) – The European Commission welcomes the first-ever EU rules to curb methane emissions from the energy sector in Europe and across the globe The new regulation obliges the fossil gas, oil and coal industry in Europe to measure, monitor, report and verify their methane emissions according to the highest monitoring standards, and to take action to reduce them. It requires EU gas, oil and coal operators to stop avoidable and routine flaring and to reduce flaring and venting to situations such as emergencies, technical malfunctions or when it is necessary for safety reasons.

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The European Commission welcomes Net-Zero Industry Act (27.05.2024) – The Commission welcomes the final adoption of the Net-Zero Industry Act (“NZIA”), which puts the EU on track to strengthen its domestic manufacturing capacities of key clean technologies. For the EU to become a leader in the clean tech sector, NZIA sets a benchmark for the manufacturing capacity of strategic net-zero technologies to meet at least 40% of the EU's annual deployment needs by 2030. The benchmark provides predictability, certainty and long-term signals to manufacturers and investors and allows progress to be tracked. To support carbon capture and storage projects and increase the availability of CO2 storage sites in Europe, NZIA also sets a target of 50 million tonnes of annual injection capacity in EU geological CO2 storage sites by 2030.

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The European Commission welcomes entry into force of the European Critical Raw Materials Act (23.05.2024) –The Critical Raw Materials Act establishes benchmarks to increase capacities for extraction, processing, and recycling of critical raw materials in the EU and guide diversification efforts. In addition, it creates a framework to select and implement Strategic Projects, which can benefit from streamlined permitting and enabling conditions for access to finance; as well as sets out national requirements to develop exploration programmes in Europe. Moreover, the Regulation will improve the circularity and the efficient use of the critical raw materials by creating value chains for recycled critical raw materials. To ensure resilience of the supply chains, the Act allows the monitoring of critical raw materials supply chains, and information exchange and future coordination on strategic raw materials' stocks among Member States and large companies.

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COUNCIL OF THE EUROPEAN UNION (COUNCIL)

Energy Charter Treaty: the Council gives final green light to EU’s withdrawal (30.05.2024) – The formal decision by the Council of EU gives the final green light for the EU and Euratom to withdraw from the Energy Charter Treaty after the European Parliament approved it during its last plenary session in April 2024. The decisions are linked as they form the two pillars of a political compromise known as the Belgian roadmap on the Energy Charter Treaty. The Energy Charter Treaty (ECT) is a multilateral agreement that entered into force in 1998 and contains provisions on investment protection and trade in the energy sector.

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Sustainable electricity grids: the Council approves conclusions (30.05.2024) – The Council of the EU approved conclusions on the EU’s electricity grid infrastructure, proposing a series of measures for an interconnected and resilient electricity network in Europe, to ensure energy security and achieve decarbonisation in the EU. The Council conclusions highlight the need for long-term, coordinated electricity grid infrastructure planning at European level, and call on the European Commission to assess and identify any gaps and develop measures, if needed, to improve the governance framework at EU level.

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The Council gives final green light to cut methane emissions in the energy sector (27.05.2024) – The Council adopted a regulation on tracking and reducing methane emissions as part of the ‘Fit for 55’ package. The regulation introduces new requirements on measuring, reporting and verifying methane emissions in the energy sector. Mitigation measures, such as detecting and repairing methane leaks and limiting venting and flaring, will aim to avoid methane emissions. Operators will have to measure methane emissions at source level and draw up monitoring reports that will be checked by independent accredited verifiers. Member states will maintain and regularly update an inventory of all wells, as well as mitigation plans for inactive wells, in order to prevent any public health and environmental risks from methane emissions. National authorities will carry out periodic inspections to check and ensure operators' compliance with the requirements of the regulation, including the taking of follow-up remedial measures.

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The Council gives its final approval to the ecodesign regulation (27.05.2024) – The Council adopted the ecodesign regulation, which sets requirements for sustainable products. The regulation replaces the existing ecodesign directive and enlarges its scope, beyond energy products, to all kind of goods placed in the EU market. The new regulation introduces new requirements such as product durability, reusability, upgradability and reparability, rules on the presence of substances that inhibit circularity; energy and resource efficiency; recycled content, remanufacturing and recycling; carbon and environmental footprints; and information requirements, including a Digital Product Passport. The Commission will be empowered to set ecodesign requirements by delegated acts and the industry will have 18 months to comply with them. Ecodesign criteria will be applicable in public procurement to incentivise the public purchase of green products. The new regulation introduces a direct ban on the destruction of unsold textiles and footwear (SMEs will be temporarily excluded) and empowers the Commission to introduce similar bans for other products in the future. The ecodesign regulation will be aligned to the digital services act, when it comes to products sold online.

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EUROPEAN PARLIAMENT (EP)

The European Parliament publishes document on the Energy Performance Building Directive recast (28.05.2024) – The European Parliament has published an accompanying document in sight of the entry into force of the recast Energy Performance of Buildings Directive (“EPBD”). The EPBD has been designed to accelerate building renovation rates, reduce energy consumption, and promote the uptake of renewable energy in buildings. These measures should help the EU reach its target of a net 55 % reduction in greenhouse gas (“GHG”) emissions by 2030, as a stepping stone towards achieving climate neutrality by 2050. Under the revised directive, Member States will have to ensure a reduction in the average primary energy used in residential buildings of at least 16 % by 2030 and between 20 % and 22 % by 2035. To ensure sufficient flexibility and reflect national circumstances, each Member State will be allowed to adopt its own national trajectory to reduce average primary energy use. Member States may choose buildings to target and measures to take, providing 55 % of the energy reduction is achieved by renovating the worst performing buildings.

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BANKING & FINANCEEUROPEAN CENTRAL BANK (ECB)

The European Central Bank publishes the April 2024 Euro area bank interest rate statistics (05.06.2024) – According to the ECB’s Euro area bank interest rate: (i)composite cost-of-borrowing indicator for new loans to corporations and for new loans to households for house purchase unchanged at 5.18% and 3.80%, respectively; (ii) composite interest rate for new deposits with agreed maturity from corporations broadly unchanged at 3.65%; interest rate for overnight deposits from corporations broadly unchanged at 0.91%; (iii)composite interest rate for new deposits with agreed maturity from households decreased by five basis points to 3.11%, driven by both interest rate and weight effects; interest rate for overnight deposits from households unchanged at 0.39%.

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The European Central Bank publishes the April 2024 monetary developments in the euro area (29.05.2024) – According to the ECB’s the April 2024 monetary developments in the euro area, the annual growth rate of the broad monetary aggregate M3 increased to 1.3% in April 2024 from 0.9% in March, averaging 0.8% in the three months up to April. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, was -6.0% in April, compared with -6.6% in March. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 15.7% in April from 16.7% in March. The annual growth rate of marketable instruments (M3-M2) increased to 22.6% in April from 19.3% in March.

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The European Central Bank publishes the April 2024 Consumer Expectations Survey results (28.05.2024) – According to the ECB’s Consumer Expectation Survey for the month of April 2024, median consumer inflation perceptions over the past 12 months remained steady, while median inflation expectations for the next 12 months and for three years ahead declined slightly; expectations for nominal income growth and nominal spending growth over the next 12 months remained substantially unchanged; expectations for economic growth over the next 12 months became less pessimistic, while the expected unemployment rate in 12 months-time increased; expectations for home price growth over the next 12 months rose, while expectations for mortgage interest rates over the 12 months ahead remained unchanged.

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EUROPEAN BANKING AUTHORITY (EBA)

The European Supervisory Authorities call for enhanced supervision and improved market practice on sustainability-related claims (04.06.2024) – The European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have published their final Reports on Greenwashing in the financial sector. In their respective reports the ESAs reiterate their common high-level understanding of greenwashing as a practice whereby sustainability-related statements, declarations, actions, or communications do not clearly and fairly reflect the underlying sustainability profile of an entity, a financial product, or financial services. This practice may be misleading to consumers, investors, or other market participants. Therefore, the ESAs stress again that financial market players have a responsibility to provide sustainability information that is fair, clear, and not misleading.

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The European Banking Authority and the European Securities and Markets Authority invite comments on the review of the investment firms prudential framework (03.06.2024) – The EBA and ESMA published a discussion paper on the potential review of the investment firms’ prudential framework. The discussion paper aims at gathering early stakeholder feedback to inform the response to the European Commission’s call for advice (CfA). To assess the impact of the possible changes discussed in the paper, the EBA also launched a data collection exercise on a voluntary basis.

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The European Supervisory Authorities sign a memorandum of understanding to strengthen cooperation and information exchange (31.05.2024) – The European Supervisory Authorities (EBA, EIOPA, and ESMA - the ESAs) announced that they have concluded a multilateral Memorandum of Understanding (MoU) to strengthen cooperation and information exchange with the European Union Agency for Cybersecurity (ENISA). This MoU sets out the framework for cooperation and exchange of information on tasks of mutual interest, including policy implementation, incident reporting, and oversight of critical Information Communication Technologies (ICT)third-party providers. It will also promote regulatory convergence, facilitate cross-sectoral learning and capacity building on areas of mutual interest, and information exchange on emerging technologies.

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The European Supervisory Authorities publish templates and tools for voluntary dry run exercise to support the DORA implementation (31.05.2024) – The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published templates, technical documents and tools for the dry run exercise on the reporting of registers of information in the context of Digital Operation Resilience Act (DORA) announced in April 2024. Financial entities can use these materials and tools to prepare and report their registers of information of contractual arrangements on the use of ICT third-party service providers in the context of the dry run exercise, and to understand supervisory expectations for the reporting of such registers from 2025 onwards.

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The European Banking Authority shows that funds to protect deposits in case of bank failure are going up (28.05.2024) – EBA has published end-2023 data related to two key concepts and indicators in the Deposit Guarantee Schemes Directive (DGSD), namely available financial means (AFMs) and covered deposits. Data shows that: (i)deposits protected by EU deposit guarantee schemes (DGS) increased by 1.7% to 8.5 trillion Euros between 2022 and 2023, whereas funds available to protect those deposits in case of bank failures rose by 14.9% to 73 billion euro; (ii)the high increase in the amount of funds held by DGSs to protect deposits reflects the need for all the DGSs to reach the minimum target level of 0.8% of covered deposits by July 2024; (iii)as of December 2023, 21 of the 36 DGSs in the European Economic Area (EEA) had already reached the minimum target level ahead of the deadline.

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The European Banking Authority issues its final Guidelines on STS criteria for on-balance-sheet securitisation (27.05.2024) – EBA has released its final Guidelines on criteria concerning simplicity, standardisation, transparency, and additional specific criteria for on-balance-sheet securitisations (so-called “STS criteria”). The Guidelines aim to ensure a harmonised interpretation and implementation of STS criteria across the EU, aligning with existing guidelines for asset-backed and non-asset-backed commercial paper (ABCP and non-ABCP) securitisation. By providing a unified interpretation of STS criteria, the Guidelines support the adoption of the STS criteria, which is necessary for preferential risk weight treatment under the Capital Requirements Regulation (CRR).

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The European Banking Authority publishes a Report on the issuance of virtual IBANs (24.05.2024) – EBA published a Report on the issuance of virtual IBANs (“vIBANs”), noting the lack of a common definition and varying practices across the industry. The Report, which sets out the characteristics and use cases of virtual IBANs, highlights issues related to money laundering, consumer protection, authorisation, passporting, and regulatory arbitrage due to differing national interpretations and applications of EU financial regulations. The Report offers recommendations for clarifying EU law and suggests actions that national competent authorities can take to address these issues.

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EUROPEAN SECURITIES AND MARKETS AUTHORITY (ESMA)

The European Banking Authority and the European Securities and Markets Authority invite comments on the review of the investment firms prudential framework (03.06.2024) – ESMA and EBA published a discussion paper on the potential review of the investment firms’ prudential framework. The discussion paper aims at gathering early stakeholder feedback to inform the response to the European Commission’s call for advice (CfA). To assess the impact of the possible changes discussed in the paper, the EBA also launched a data collection exercise on a voluntary basis.

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The European Securities and Markets Authority publishes final MiCA rules on conflict of interest of crypto assets providers (31.05.2024) – ESMA the final Report on the rules on conflicts of interests of crypto-asset service providers (CASP) under the Markets in Crypto Assets Regulation (MiCA). In the report ESMA sets out draft Regulatory Technical Standards on certain requirements in relation to conflicts of interest for crypto-asset service providers (CASPs) under MiCA, with a view to clarifying elements in relation to vertical integration of CASPs and to further align with the draft European Banking Authority (EBA) rules applicable to issuers of asset-referenced tokens (ARTs).

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The European Securities and Markets Authority publishes final MiCA rules on conflict of interest of crypto assets providers (31.05.2024) – ESMA the final Report on the rules on conflicts of interests of crypto-asset service providers (CASP) under the Markets in Crypto Assets Regulation (MiCA). In the report ESMA sets out draft Regulatory Technical Standards on certain requirements in relation to conflicts of interest for crypto-asset service providers (CASPs) under MiCA, with a view to clarifying elements in relation to vertical integration of CASPs and to further align with the draft European Banking Authority (EBA) rules applicable to issuers of asset-referenced tokens (ARTs).

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The European Securities and Markets Authority issues a Statement on firms using AI in investment services (30.05.2024) – ESMA issued a Statement offering guidance to firms using AI technologies in the provision of investment services to retail clients. In its statement, ESMA states that it expects these firms to adhere to relevant MiFID II requirements, especially concerning organizational aspects, business conduct, and the regulatory obligation to act in the client’s best interest. AI applications covered by MiFID II requirements include customer support, fraud detection, risk management, compliance, and aiding firms in delivering investment advice and portfolio management.

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The European Securities and Markets Authority ESMA reminds on rules for sharing information during pre-close calls (29.05.2024) – ESMA issued a Statement reminding issuers of the legislative framework applicable to “pre-close calls” and encouraging adherence to good practices to help maintain fair, orderly, and effective markets. Specifically, ESMA emphasized that any disclosure of inside information must comply with the Market Abuse Regulation (MAR). Therefore, issuers should only share non-inside information during these “pre-close calls”. To address potential concerns, ESMA recommends several good practices for conducting such calls.

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The European Securities and Markets Authority reports on the application of MiFID II marketing requirements (27.05.2024) – ESMA released a joint report on its 2023 Common Supervisory Action (CSA) and the accompanying Mystery Shopping Exercise (MSE) concerning marketing disclosure rules under MiFID II. In collaboration with National Competent Authorities (NCAs), ESMA’s findings indicate global compliance with MiFID II requirements for marketing communications, including advertisements. Further, although ESMA finds that investment firms have generally established procedures to ensure compliance during the development of marketing materials, it also reports that NCAs have expressed concerns about sustainability claims in marketing communications. The report highlights areas for improvement, including the necessity for clear identification of marketing communications and a balanced presentation of risks and benefits.

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The European Securities and Markets Authority consults on commodity derivatives under MiFID review (23.05.2024) – ESMA launched a public consultation on proposed changes to the rules for position management controls and position reporting. The changes come in the context of the review of the Market in Financial Instruments Directive (MiFID II) and aim to minimise the burden on reporting entities. ESMA is consulting on changes to the technical standards (RTS) on position management controls, the Implementing Technical Standards (ITS) on position reporting, and on position reporting in Commission Delegated Regulation (EU). ESMA will review all comments submitted by 21st August 2024.

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COUNCIL OF THE EUROPEAN UNION (COUNCIL)

The Council adopts package of new anti-money-laundering rules (30.05.2024) – Council adopted a new package of anti-money laundering rules, known as the AML package. This AML package includes the new AML Regulation, the 6th AML Directive, and a Regulation establishing the new Anti-Money Laundering Authority (AMLA). The package is further complemented by Regulation (EU) 2023/1113, concerning information accompanying transfers of funds and certain crypto-assets, which was adopted on 31st May 2023. This is the final step of the adoption procedure. Therefore, the texts will now be published in the EU’s Official Journal and enter into force.

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The Council adopts new EU rules to increase banks’ resilience to economic shocks (30.05.2024) – Council adopted new rules updating the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD IV) to the new standards issued under the Basel III framework. The main feature of the reforms is the introduction of an “output floor”, which limits the risk of excessive reductions in banks’ capital requirements and makes these requirements more comparable. This is the last step of the adoption procedure. The amended CRR and CRD IV will now be published in the EU’s Official Journal and enter into force 20 days later.

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EU FUNDSEUROPEAN INVESTMENT BANK (EIB)

Spain: pain: the European Investment Bank and Banco Sabadell sign guarantee agreement to facilitate up to 400 million euro in new financing for SMEs and mid-caps (05.06.2024) – The and Banco Sabadell have signed a guarantee agreement for up to 200 million euro as the first tranche of a total EIB-approved operation of up to 300 million euro. The arrangement will allow the Spanish bank to facilitate up to 400 million euro in new loans over the next two years to finance projects by small and medium-sized enterprises (SMEs) and mid-caps in Spain. The operation will promote private sector investment and support the financing needs of a key segment of the Spanish economy in terms of both growth and jobs.

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France: the European Investment Bank and Brittany region sign finance contract for upper secondary school construction and refurbishment (04.06.2024) – The European Investment Bank and the Brittany region have signed a 25-year, 190 million euro finance contract to help modernise educational facilities and adapt them to local demand, with a view to improving the quality of secondary-level education in the area. Indeed, this loan will help to finance the Brittany region’s upper secondary school plan. In particular, 116 schools in the region are set to benefit from infrastructure upgrades, improvements to energy efficiency and climate resilience, better accessibility, and new educational equipment.

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Spain: the European Investment Bank and CIE Automotive sign 36 million euro loan for research and development in advanced technologies for the European automotive sector (31.05.2024) – The European Investment Bank and Aena have signed a 160 million euro loan to finance upgrades to the passenger terminal at Palma de Mallorca International Airport. The investment to cover building upgrades and improvements to baggage management and fire prevention systems, terminal equipment and security and IT systems. Operation comes under EIB Transport Lending Policy, which prioritises investments in resilient, safe and sustainable critical transport.

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Greece: the European Investment Bank to support businesses and startups in life sciences, health, and sustainability with 200 million euro new equity financing (14.05.2024) – The European Investment Bank and CIE Automotive have signed a loan worth 36 million euro to finance the company’s research, development, and innovation activities, as well as their application in the manufacture of high value-added components for the automotive sector. The financing will also support CIE Automotive’s investments in process optimisation through digitalisation, and in the development of more sustainable manufacturing technology. The investments will take place in the company’s facilities in Spain, Germany, France, and Italy, some of which are located in cohesion regions.

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Finland: mid-caps get growth and investment boost from Finnvera and the European Investment Bank (30.05.2024) – The European Investment Bank will provide a 200 million euro guarantee to Finnvera, the national promotional bank and official export credit agency of Finland, to facilitate the financing of Finnish mid-caps. The programme aims to tackle barriers to accessing finance by sharing risks associated with economic uncertainties like inflation, high interest rates, limited external growth opportunities and unpredictable energy supplies. The EIB support will allow Finnvera to create a portfolio of new loans for a total amount of up to 400 million euro, increasing its lending capacity and offering companies access to financing on favourable terms, such as reduced interest rates and lower collateral requirements. The operation will help mobilise investments of approximately 560 million euro in the real economy

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Finland: the European Investment Bank signs 17 million euro loan to iPhone refurbisher Swappie (30.05.2024) – The European Investment Bank and Swappie, Europe’s largest iPhone refurbisher, have signed a loan agreement to back the high quality refurbishment of iPhones, extending the lifespan of the devices and enabling consumers to reduce their carbon footprint in support of a circular economy. The EIB will provide a five-year, 17 million euro loan to the innovative Finnish startup to support its investment in research and development and robotics aimed at making iPhone repairs quick and reliable. The deal will also allow Swappie to enhance its refurbishment and operational capabilities, while rolling out more products and expanding its international reach. This agreement is backed by the InvestEU programme, which aims to trigger more than 372 billion euro in additional investment between 2021 and 2027.

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Montenegro: the European Investment Bank Global to invest up to 76 million euro in reconstruction of Bar–Podgorica–Vrbnica railway line under Team Europe initiative (29.05.2024) – The European Investment Bank Global has signed a 75.5 million euro financial agreement for the reconstruction of a 167 km long railway section between Bar, Podgorica and Vrbnica. These infrastructural improvements along the extended Trans-European Transport Network (TEN-T) will improve rail capacity, efficiency and safety, benefiting over 1 million passengers a year and international freight traffic. The project will also promote a modal shift from road to rail, contributing to a more sustainable transport system in the country.

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The European Investment Bank Global invests 25 million euro in Amethis Fund III to promote sustainable growth of African businesses (29.05.2024) – The European Investment Bank’s Global arm has invested 25 million euro in Amethis Fund III, a pan-African fund providing private equity growth capital to medium-sized companies on the continent. Amethis Fund III will target companies supplying goods and services to low- and middle-income populations in Africa. The target sectors include healthcare, business services such as logistics and IT, manufacturing and distribution, including agribusiness and fast-moving consumer goods, non-banking financial services, and services related to infrastructure and energy.

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Ukraine: School in Pryvovchanske reopens after major overhaul supported by the European Investment Bank (28.05.2024) – The lyceum in the village of Pryvovchanske, Dnipropetrovsk Oblast, has opened its doors again after a major overhaul under the Ukraine Early Recovery Programme (UERP) financed by the European Investment Bank (EIB). This upgrade has increased the school’s capacity, with almost 200 students from the villages of Pryvovchanske and Malooleksandrivka expected to attend in the upcoming academic year. his is the second school that has reopened in Dnipropetrovsk Oblast this year as part of the 200 million euro EIB loan designed to help Ukrainian municipalities rebuild their social infrastructure.

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Italy: the European Investment Bank provides ETRA with 100 million euro to support the transition to a greener, more circular economy (28.05.2024) – The European Investment Bank and ETRA SpA - Società benefit have signed an agreement concerning 100 million euro of investment in improving recycling facilities and integrated water services in the Veneto region. Specifically, the main initiatives to be financed by the EIB’s investment include the restructuring and construction of waste treatment and water supply installations, the purchase of biomethane-fuelled vehicles and the expansion of water networks. The project will thus help to promote climate action and further the transition towards a more circular economy, which are key objectives of the European Green Deal.

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Czechia: the European Investment Bank backs improved wastewater treatment with CZK 1.3 billion loan for city of Brno (27.05.2024) – The European Investment Bank has signed a 53.2 million euro) loan agreement with Brněnské vodárny a kanalizace (BVK), the municipal water and wastewater company in the Czech city of Brno. The operation will upgrade the sewage sludge treatment facility of BVK’s Modřice wastewater plant, thus further improving environmental protection and public services in Czechia’s second biggest city.

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Spain: the European Investment Bank and Castilla y León regional government sign 120 million euro loan to finance public hospital and healthcare facility renovations in five regional provinces (27.05.2024) – The European Investment Bank has signed a 120 million euro loan with the regional government of Castilla y León to finance the renovation and expansion of a series of hospitals and public healthcare facilities in the Spanish region’s cities of Valladolid, Salamanca, Palencia, Soria and Aranda de Duero. The projects will include the construction of two primary healthcare centres affiliated with the Valladolid and Salamanca University Hospitals, the renovation and expansion of the Palencia Río Carrión Hospital, the second phase of construction of the Soria Santa Bárbara Hospital, and the construction of the new Aranda de Duero Hospital in the regional province of Burgos.

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Spain: the European Investment Bank and Castilla y León regional government sign 25 million euro loan to finance local SME and mid-cap projects focusing on the circular economy and job creation (24.05.2024) – The European Investment Bank (EIB) has signed a 25 million euro loan with the regional government of Castilla y León via the Institute for Business Competitiveness of Castilla y León (ICECyL by its Spanish acronym), a body under the auspices of the regional Ministry of the Economy and Finance, to back small and medium-sized enterprises (SMEs) and mid-caps in the Spanish region. The EIB loan will enable ICECyL to finance projects from this business segment (mostly in the Castilla y León region) focusing on boosting competitiveness, promoting regional circular economy policies, and creating and safeguarding jobs.

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Mauritania: Banque pour le Commerce et l’Industrie and the European Investment Bank partner up to fund SMEs, with EU support (23.05.2024) – Three months after signing a financing arrangement with the European Investment Bank (EIB), the Banque pour le Commerce et l’Industrie (BCI) has already granted MRU 280 million (6.5 million euro) in loans to five SMEs to support employment, entrepreneurship and access to finance for Mauritania’s women and youth. The loans were made in areas like health, clean energy and sustainable food systems. They are a tangible contribution to the Team Europe Initiatives of green transition and stronger human development in Mauritania, set by the European Commission for 2021-2027. The BCI will grant MRU 1 billion (€25 million) in loans to SMEs and mid-caps under the arrangement with the EIB, supporting around 3 000 jobs, especially for youth and women.

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Italy: the European Investment Bank and Cassa Depositi e Prestiti provide 215 million euro for new University of Milan campus (21.05.2024) – The European Investment Bank (EIB) and Cassa Depositi e Prestiti (CDP) have provided 215 million euro in financing, partly backed by InvestEU, to Academo Srl, a project company formed by Lendlease and the Equiter Infrastructure II fund (managed by Ersel AM) to which the University of Milan has awarded the contract to design, build and operate its science and technology campus in the Milano Innovation District (MIND). The goal is to support the creation of new teaching spaces for university students and researchers as part of a broader environmental sustainability-focused urban regeneration project in Milan. This financing is the final step in the operation planning phase coordinated by Lendlease, which involves a total investment of more than 450 million euro.

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Poland: the European Investment Bank backs first Polish satellite programme with loan to Bank Gospodarstwa Krajowego (20.05.2024) – The European Investment Bank (EIB) announced backing for the development and launch of two Earth observation satellites that will provide high-resolution imagery for civilian and defence applications in Poland. The EIB is lending 300 million euro to Bank Gospodarstwa Krajowego (BGK) for the project to support the European space industry with the latest technology in Low Earth Orbit (LEO) satellites. It comes after the EIB’s Board of Directors approved the EIB Group’s new Security and Defence Industry Action Plan which is intended to step up investments in the sector.

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EUROPEAN INVESTMENT FUND (EIF)

InvestEU: the European Investment Fund, 123 Investment Managers and Lendosphere announce a new sustainable debt fund. (27.05.2024) – The European Investment Fund (EIF), as lead investor, is backing the first closing of the 123 Transition Energétique 2 fund to the tune of 30 million euro. The fund combines financing via a marketplace lending platform with institutional investors' contributions.

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InvestEU: the European Investment Fund extends support to Europe’s cultural creative businesses and audiovisual sector (21.05.2024) – The European Investment Fund (EIF) guarantee agreements will facilitate more than 141 million euro of new financing for creative sectors via intermediaries from France, Germany, and Finland. These agreements are supported by the InvestEU programme, which aims to trigger more than 372 billion euro in additional investments over the period 2021-2027. They aim to remedy a market failure in the cultural and creative sectors (CCS) and to stimulate European audiovisual production by facilitating its financing.

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LIFE SCIENCESCOUNCIL OF THE EUROPEAN UNION (COUNCIL)

The Council signs off on measures to make the EU mercury-free (30.05.2024) – The Council adopted a regulation to completely ban the use of dental amalgams and to prohibit manufacturing, import and export of other mercury-added products. The updated rules aim to address the remaining use of mercury in the European Union in line with the EU´s zero pollution ambition. Current rules already ban the use of dental amalgam for treating teeth in children under 15 years old, and pregnant or breastfeeding women. The new rules will extend the prohibition to include everybody in the EU as of 1st January 2025. Exceptions will apply when the use of dental amalgam is deemed strictly necessary by the dental practitioner to address specific medical needs of the patient. Exporting dental amalgam will be prohibited from 1st January 2025; the ban on manufacturing and import in the EU will apply from 1st July 2026. Six additional mercury-containing lamps will also be made subject to a manufacturing, import and export ban as from 31st December 2025 and 31st December 2026.

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The Council adopts new measures to help prevent shortages (30.05.2024) – The Council has adopted new rules updating the law on medical devices in order to help prevent shortages and ease the transition to greater transparency and access to information. The regulation adopted amends the legislation on medical devices, including in-vitro diagnostic medical devices (IVDs), by: (i) further extending the transition period for certain IVDs (ii) enabling a gradual roll-out of EUDAMED, the new electronic database (iii) requiring manufacturers to flag up potential shortages of critical medical devices and IVDs. The regulation adopted will enter into force following publication in the EU’s Official Journal.

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The Council adopts new rules on substances of human origin (27.05.2024) – The Council has adopted new rules aimed at improving the safety and quality of blood, tissues and cells used in healthcare and facilitating cross-border circulation of these substances in the EU. The regulation on substances of human origin (SoHO) will ensure better protection for donors and recipients, as well as for children born following medically assisted reproduction. The new rules aim to strengthen the existing legal framework while also increasing flexibility in order to keep up with scientific and technical developments. Under the new regulation, member states may choose to apply stricter measures to protect their citizens.

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EUROPEAN MEDICINES AGENCY (EMA)

Medical devices: new guidance for industry and notified bodies (21.05.2024) – A new revision of the guidance available to applicants, marketing authorization holders and notified bodies of medical devices has been published by the EMA. This question-and-answer document provides practical considerations on the implementation of the medical devices and in vitro diagnostic regulations for combinations of medicinal products and medical devices. Products that combine a medicinal product (or substance) and a medical device are regulated either under the pharmaceutical framework or the medical device framework, depending on their main mode of action. The revision is based on the experience gained since the implementation of the new regulations and actual cases encountered.

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DATA, IP AND PRIVACYEUROPEAN COMMISSION (EC)

European Commission establishes AI Office to strengthen EU leadership in safe and trustworthy Artificial Intelligence (29.05.2024) – The Commission has unveiled the AI Office, established within the EC. The AI Office aims at enabling the future development, deployment and use of AI in a way that fosters societal and economic benefits and innovation, while mitigating risks. The Office will play a key role in the implementation of the AI Act, especially in relation to general-purpose AI models. It will also work to foster research and innovation in trustworthy AI and position the EU as a leader in international discussions.

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COUNCIL OF THE EUROPEAN UNION (COUNCIL)

Artificial intelligence (AI) act: the Council gives final green light to the first worldwide rules on AI (27.05.2024) – The Council finally approved a ground-breaking law aiming to harmonise rules on artificial intelligence, the so-called artificial intelligence act. The flagship legislation follows a ‘risk-based’ approach, which means the higher the risk to cause harm to society, the stricter the rules. It is the first of its kind in the world and can set a global standard for AI regulation. The new law aims to foster the development and uptake of safe and trustworthy AI systems across the EU’s single market by both private and public actors. At the same time, it aims to ensure respect of fundamental rights of EU citizens and stimulate investment and innovation on artificial intelligence in Europe. The AI act applies only to areas within EU law and provides exemptions such as for systems used exclusively for military and defence as well as for research purposes.

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CONSULTATIONS AND CALLSEUROPEAN COMMISSION (EC)

The European Commission launches consultation on aviation and fitness check of EU airport legislation (06.06.2024) – The Commission is carrying out a fitness check of EU airport legislation to determine if it is still fit for purpose and delivering on its objectives. This fitness check will consider recent trends such as market consolidation, capacity challenges, labour shortages, increased competition from non-EU airlines/airports and the need to decarbonise. It will also assess the potential for simplification and burden reduction, especially should any inconsistencies or synergies be identified.

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The European Commission launches consultation on Heavy-duty vehicles – extending manufacturer reporting on CO2 emissions and fuel consumption (11.06.2024) – Under EU Regulation 2018/956, vehicle manufacturers are required to report on CO2 emissions from and fuel consumption of heavy-duty vehicles. This initiative amends the Annex to the Regulation to oblige manufacturers of certain medium and heavy lorries, buses, coaches and trailers to report on these vehicles from 2024.

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The European Commission launches consultation on Carbon Offsetting & Reduction Scheme for International Aviation (CORSIA) – rules for calculating offsetting requirements (13.06.2024) – Directive 2003/87 implements the Carbon Offsetting and Reduction Scheme for International Aviation ('CORSIA') under the International Civil Aviation Organization (ICAO). Article 12(8) of this Directive requires the Commission to lay down detailed rules to calculate offsetting requirements under CORSIA for emissions up to 2026. The rules rely on the standards and recommended practices of CORSIA, as interpreted by the Directive.

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The European Commission launches consultation on Cooperation on direct taxation (07.07.2024) – Directive 2011/16/EU (directive on administrative cooperation - DAC) establishes a system for secure administrative cooperation between the national tax authorities of EU countries and lays down rules and procedures for exchanging information. This evaluation will assess the effectiveness, efficiency and continued relevance of the DAC and its amendments (DAC2 to DAC6), as well as its coherence with other policy initiatives & priorities and the EU added value.

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The European Commission launches consultation on energy labelling requirements for computers (18.07.2024) The Regulation aims to help consumers choose the most energy-efficient computers by using a scale from A (most efficient) to G (least efficient). The energy label will also provide other useful information on durability and reparability. The consultation covers both the ecodesign and energy labelling initiatives. This consultation covers both the Eco-design and Energy labelling interlinked initiatives. You just need to provide feedback once.

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The European Commission launches consultation on Trade in seal products – fitness check of EU rules (07.08.2024) – Seals are hunted in parts of the world for commercial, subsistence and cultural reasons. In 1983, following people's concerns about animal welfare, the EU banned the import of certain seal pup skins. In 2009, a general ban on placing seal products on the EU market was introduced, with two exceptions. This initiative will assess if the rules in place remain fit for purpose, focusing on their socio-economic impact and their impact on seal populations.

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Giovanni Sabatini joins GA as senior advisor, where he will coordinate the entire area of expertise in Banking, Regulatory, and Financial Services. In particular, he will be in charge of strategic consultancy in relations with Italian (Bank of Italy, Consob, Ivass, Agcm, Covip) and European (European Commission, European Central Bank, ESMA, EBA, SRB) institutions in the banking, financial and insurance fields.

Graduated in Economics and Business at the LUISS University in Rome, he began his professional career in 1984 at Arthur Young & Co. After an experience in Consob, in 2001 he was CEO of Monte Titoli S.p.A. and Chairman of ECSDA.

After joining Consob as Director of the Intermediaries Division, he was Head of the Legal and Banking Affairs Department of the Ministry of Economy and Finance.

In 2008 he returned to Consob as Co-Director, and from 2009 to 2024 he took on the role of Director General of the ABI.

In recent years, he has been for two two-year terms Chairman of the Executive Committee of FBE, Chairman of the Strategic Committee for Sustainable Growth of FBE, member of the EESC; Vice-Chairman of Bancomat, member of the Board of Directors of Fondo Italiano di Investimento, member of the Italian Committee for Corporate Governance, member of the Consultation Committee of Borsa Italiana. He is Vice-President of CBI and independent director of the Deposit Protection Fund.

‘’We are very excited‘’, says Francesco Sciaudone, Global Managing Partner of GA, ‘’that Giovanni will be able to contribute to the development of GA in a strategic sector such as banking, finance and insurance in Italy and Europe, to the benefit of all national and international clients. Giovanni's contribution will be fundamental to finally building a professional service offer (strategic, legal and tax) for the market and economic operators who have always had to deal with an increasingly complex regulatory mosaic and a plurality of stakeholders.‘’