ECIPE

𝐖𝐢𝐭𝐡 𝐭𝐡𝐞 𝐄𝐔'𝐬 𝐀𝐈 𝐀𝐜𝐭 𝐩𝐫𝐨𝐯𝐢𝐬𝐢𝐨𝐧𝐚𝐥 𝐚𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭 𝐫𝐞𝐚𝐜𝐡𝐞𝐝 𝐥𝐚𝐬𝐭 𝐰𝐞𝐞𝐤, 𝐭𝐡𝐞 𝐬𝐩𝐨𝐭𝐥𝐢𝐠𝐡𝐭 𝐭𝐮𝐫𝐧𝐬 𝐭𝐨 𝐰𝐡𝐚𝐭 𝐭𝐡𝐞 𝐫𝐮𝐥𝐞𝐬 𝐬𝐭𝐢𝐥𝐥 𝐥𝐞𝐚𝐯𝐞 𝐮𝐧𝐫𝐞𝐬𝐨𝐥𝐯𝐞𝐝. Our experts bring together different insights on how legal uncertainty around data access is shaping AI development in the EU. One analysis highlights growing tensions between copyright law and the Text and Data Mining exception, while another points to a pending CJEU decision that could determine how machines learn from protected material. The findings show that access to data is not a technical detail but a central question for Europe’s competitiveness, investment climate, and role in global AI development. 🌍 💡Explore our insights focused on AI policy in the #EU: ecipe.org/insights/tag/a… #ArtificialIntelligence #CopyrightLaw #Innovation

Our latest insights bring clarity to the policy debates shaping Europe’s economic outlook as our experts analyse key developments across trade, digital policy, and industrial strategy, and how regulatory choices affect competitiveness and global positioning. 🖱️ Subscribe to #ECIPENewsletter for timely analysis that keeps you informed where it matters most ⬇️ ecipe.us9.list-manage.com/subscribe?u=83…

The FT reported that US businesses complained about the cost the revised Product Liability Directive. They are right but they missed an important (and sizeable) point: the largest negative impact that the PLD is on the EU economy itself. Here is what the data says:

𝐄𝐮𝐫𝐨𝐩𝐞'𝐬 𝐫𝐞𝐯𝐢𝐬𝐞𝐝 𝐏𝐫𝐨𝐝𝐮𝐜𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐃𝐢𝐫𝐞𝐜𝐭𝐢𝐯𝐞 𝐢𝐬 𝐧𝐨𝐭 𝐚 𝐜𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐩𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐨𝐧 𝐮𝐩𝐠𝐫𝐚𝐝𝐞. 𝐈𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐚𝐥 𝐭𝐚𝐱 𝐨𝐧 𝐢𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧, 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞𝐧𝐞𝐬𝐬, 𝐚𝐧𝐝 𝐭𝐫𝐚𝐝𝐞. On our latest analysis, @FredrikErixon, @osguinea, @Phil_Lamprecht, Dyuti Pandya, and Vanika Sharma find that the revised PLD could reduce EU GDP by up to 0.24 per cent, cost European households up to €33 billion in purchasing power, and cause insurance premiums in newly covered sectors to surge by as much as 40 per cent. The international fallout is equally sobering, with EU imports projected to fall by up to €36.5 billion, hitting strategic allies hardest. With the December 2026 transposition deadline approaching, the stakes could not be higher. Read our latest paper on the Product Liability Directive ▶️ ecipe.org/publications/e… #ProductLiabilityDirective #PLD #Competitiveness #Trade

𝐂𝐡𝐢𝐧𝐚'𝐬 𝐌𝐢𝐧𝐢𝐬𝐭𝐫𝐲 𝐨𝐟 𝐂𝐨𝐦𝐦𝐞𝐫𝐜𝐞 𝐡𝐚𝐬 𝐣𝐮𝐬𝐭 𝐟𝐢𝐥𝐞𝐝 𝐚 𝐖𝐓𝐎 𝐥𝐞𝐠𝐚𝐥 𝐛𝐫𝐢𝐞𝐟 𝐚𝐠𝐚𝐢𝐧𝐬𝐭 𝐭𝐡𝐞 𝐄𝐔'𝐬 𝐫𝐞𝐯𝐢𝐬𝐞𝐝 𝐂𝐲𝐛𝐞𝐫𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐀𝐜𝐭, 𝐚𝐧𝐝 𝐢𝐭 𝐫𝐞𝐚𝐝𝐬 𝐥𝐞𝐬𝐬 𝐥𝐢𝐤𝐞 𝐚 𝐜𝐨𝐧𝐬𝐮𝐥𝐭𝐚𝐭𝐢𝐨𝐧 𝐫𝐞𝐬𝐩𝐨𝐧𝐬𝐞 𝐚𝐧𝐝 𝐦𝐨𝐫𝐞 𝐥𝐢𝐤𝐞 𝐚 𝐰𝐚𝐫𝐧𝐢𝐧𝐠 𝐬𝐡𝐨𝐭. @leemakiyama unpacks the legal trap Beijing is attempting to spring in our latest analysis: either CSA2 undermines its own internal market legal basis, or it has no WTO security defence. A well-constructed argument, but one that only works if Brussels takes the bait. Read the analysis ▶️ ecipe.org/insights/china… #CybersecurityAct #EUTradePolicy #DigitalGovernance #WTO #EUChina

𝐓𝐡𝐞 𝐀𝐬𝐢𝐚-𝐏𝐚𝐜𝐢𝐟𝐢𝐜 𝐠𝐫𝐨𝐰𝐭𝐡 𝐦𝐨𝐝𝐞𝐥 𝐡𝐚𝐬 𝐢𝐧𝐯𝐞𝐫𝐭𝐞𝐝. 𝐄𝐱𝐩𝐨𝐫𝐭𝐬 𝐧𝐨𝐰 𝐜𝐨𝐫𝐫𝐞𝐥𝐚𝐭𝐞 𝐧𝐞𝐠𝐚𝐭𝐢𝐯𝐞𝐥𝐲 𝐰𝐢𝐭𝐡 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐯𝐢𝐭𝐲, 𝐰𝐡𝐢𝐥𝐞 𝐢𝐦𝐩𝐨𝐫𝐭𝐬 𝐨𝐟 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬 𝐝𝐫𝐢𝐯𝐞 𝐭𝐡𝐞 𝐬𝐭𝐫𝐨𝐧𝐠𝐞𝐬𝐭 𝐠𝐚𝐢𝐧𝐬. In our analysis, @leemakiyama and @badrinarayanang test more than 120 socioeconomic variables to show that the China-centric model is running out of road: a 10 percentage-point rise in foreign services imports boosts total factor productivity by 9 percentage points, while the same increase in exports cuts it by 8 percentage points. ✍ "𝘞𝘩𝘢𝘵 𝘮𝘢𝘬𝘦𝘴 𝘵𝘩𝘦 𝘳𝘦𝘨𝘪𝘰𝘯 𝘤𝘰𝘮𝘱𝘦𝘵𝘪𝘵𝘪𝘷𝘦 𝘵𝘰𝘥𝘢𝘺 𝘪𝘴 𝘤𝘢𝘳𝘦𝘧𝘶𝘭𝘭𝘺 𝘵𝘢𝘳𝘨𝘦𝘵𝘦𝘥 𝘰𝘱𝘦𝘯𝘯𝘦𝘴𝘴, 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘥𝘪𝘷𝘦𝘳𝘴𝘪𝘧𝘪𝘤𝘢𝘵𝘪𝘰𝘯, 𝘢𝘯𝘥 𝘴𝘦𝘳𝘷𝘪𝘤𝘦𝘴 𝘪𝘯𝘵𝘦𝘨𝘳𝘢𝘵𝘪𝘰𝘯", the experts argue. Read our latest analysis⬇️ ecipe.org/publications/n… #AsiaPacific #TradePolicy #DigitalEconomy

𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐢𝐬 𝐧𝐨 𝐥𝐨𝐧𝐠𝐞𝐫 𝐣𝐮𝐬𝐭 𝐚 𝐝𝐞𝐟𝐞𝐧𝐜𝐞 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧. 𝐈𝐭 𝐢𝐬 𝐛𝐞𝐜𝐨𝐦𝐢𝐧𝐠 𝐭𝐡𝐞 𝐨𝐫𝐠𝐚𝐧𝐢𝐬𝐢𝐧𝐠 𝐥𝐨𝐠𝐢𝐜 𝐨𝐟 𝐍𝐨𝐫𝐝𝐢𝐜 𝐚𝐧𝐝 𝐁𝐚𝐥𝐭𝐢𝐜 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐢𝐚𝐥 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲. At the @Hanaholmen Industry Forum, @FredrikErixon joined senior decision-makers, technology leaders, and investors to explore how the Baltic Sea region can turn cooperation into a genuine competitive advantage. 💬 "𝘌𝘷𝘦𝘳𝘺𝘰𝘯𝘦 𝘤𝘢𝘯 𝘴𝘦𝘦 𝘵𝘩𝘦 𝘤𝘢𝘴𝘦 𝘧𝘰𝘳 𝘮𝘰𝘳𝘦 𝘕𝘰𝘳𝘥𝘪𝘤 𝘤𝘰𝘰𝘱𝘦𝘳𝘢𝘵𝘪𝘰𝘯, 𝘣𝘶𝘵 𝘤𝘰𝘮𝘱𝘦𝘵𝘪𝘵𝘪𝘰𝘯 𝘪𝘴 𝘱𝘢𝘳𝘵 𝘰𝘧 𝘤𝘰𝘮𝘱𝘦𝘵𝘪𝘵𝘪𝘷𝘦𝘯𝘦𝘴𝘴 𝘵𝘰𝘰. 𝘐𝘧 𝘸𝘦 𝘥𝘰 𝘯𝘰𝘵 𝘤𝘰𝘮𝘱𝘦𝘵𝘦 𝘰𝘯 𝘢𝘵𝘵𝘳𝘢𝘤𝘵𝘪𝘯𝘨 𝘍𝘋𝘐, 𝘵𝘩𝘢𝘵 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘸𝘪𝘭𝘭 𝘴𝘪𝘮𝘱𝘭𝘺 𝘨𝘰 𝘦𝘭𝘴𝘦𝘸𝘩𝘦𝘳𝘦." Watch the recording ⬇️ youtube.com/watch?v=bPXnj9… #NordicSecurity #BalticSea #DefenceIndustry

#ECIPENewsletter is out! 📬 The Digital Markets Act was designed to fix competition. But is it now redesigning it? This month's edition leads with our analysis on the DMA review. Check out also insights from our team about EU industrial policy, tax reform, the EU-Australia trade deal, UK-EU relations, Hungary's upcoming elections, and the risks of regulating quantum computing. Read ➡️ us9.campaign-archive.com/?e=[UNIQID]&u=…

75% 𝐨𝐟 𝐄𝐔 𝐝𝐞𝐟𝐞𝐧𝐜𝐞 𝐜𝐨𝐧𝐭𝐫𝐚𝐜𝐭𝐬 𝐠𝐨 𝐭𝐨 𝐝𝐨𝐦𝐞𝐬𝐭𝐢𝐜 𝐟𝐢𝐫𝐦𝐬. 𝐄𝐮𝐫𝐨𝐩𝐞 𝐫𝐮𝐧𝐬 170+ 𝐰𝐞𝐚𝐩𝐨𝐧𝐬 𝐬𝐲𝐬𝐭𝐞𝐦𝐬 𝐯𝐬 30 𝐢𝐧 𝐭𝐡𝐞 𝐔𝐒. Our expert @osguinea argues in What's Up EU that home bias extends beyond strategic equipment to routine goods, where no security case exists. Time to open competition. Full Commentary ⬇️ whatsupeuenglish.substack.com/p/openness-and… #Defence #EU #Procurement

🖥️ Digital services taxes are back at the centre of transatlantic debate. Today at 4 pm CEST, @MatBauerEcon joins @CatoInstitute and leading tax experts to discuss what comes next for DSTs, Pillar 1, and the future of digital taxation in Europe. ▶️ Watch live: cato.org/events/digital… #DigitalTaxation #DST #PillarOne

The @EU_Commission's DMA enforcement against Google may force data sharing that violates the very privacy rules the EU is built on. In the latest insight, @FredrikErixon and Dyuti Pandya warn that the anonymisation standard required is technically unachievable without destroying competitive utility. ▶️ Read the full analysis: ecipe.org/dma-proceeding… #DigitalMarketsAct #GDPR #EUTech

CSA2 doesn't redraw the map. 70% of EU 5G networks already run on trusted vendors. The regulation formalises reality. What changes is where the political pressure lands as now it travels to @EUCouncil. ✍"𝘞𝘩𝘢𝘵 𝘪𝘵 𝘩𝘢𝘳𝘮𝘰𝘯𝘪𝘴𝘦𝘴 𝘪𝘴 𝘯𝘰𝘵 𝘯𝘦𝘤𝘦𝘴𝘴𝘢𝘳𝘪𝘭𝘺 𝘰𝘶𝘵𝘤𝘰𝘮𝘦𝘴 𝘣𝘶𝘵 𝘦𝘹𝘤𝘶𝘴𝘦𝘴." Read our latest analysis by @leemakiyama ⬇️ ecipe.org/insights/cyber… #cybersecurity #EU #CSA2 #5G

Together with @RUSIEurope, we brought voices from across the mobile ecosystem in Brussels to examine where EU competition and cybersecurity policy collide. The verdict: legislative silos are creating real, unintended harm. DMA sideloading rules increase malware risks. Cyber threat sharing may breach competition law. Smaller players are being locked out of the conversation. Read the summary ▶️ buff.ly/UiL0h2L #EUTech #Cybersecurity #DigitalMarketAct

Competition authorities have quantum computing in their sights, but the market they intend to govern does not yet exist. Applying competition law now risks slowing what it's meant to protect. Dyuti Pandya outlines these in the new analysis for @TOTMblog. Read the full article ⬇️ buff.ly/csyIZ02 #QuantumComputing #CompetitionLaw #TechRegulation

𝐄𝐮𝐫𝐨𝐩𝐞'𝐬 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐭𝐚𝐱 𝐬𝐲𝐬𝐭𝐞𝐦 𝐢𝐬 𝐧𝐨𝐭 𝐣𝐮𝐬𝐭 𝐢𝐧𝐞𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭. 𝐈𝐭 𝐢𝐬 𝐚𝐜𝐭𝐢𝐯𝐞𝐥𝐲 𝐮𝐧𝐝𝐞𝐫𝐦𝐢𝐧𝐢𝐧𝐠 𝐭𝐡𝐞 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐜𝐚𝐩𝐚𝐜𝐢𝐭𝐲 𝐟𝐢𝐫𝐦𝐬 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐜𝐨𝐦𝐩𝐞𝐭𝐞. Corporate income tax accounts for just 5 to 6% of revenues in Germany and France, yet it weakens investment and constrains growth. Digital taxes add complexity without fixing the problem. @MatBauerEcon and Dyuti Pandya argue the more promising path lies in reducing the corporate tax burden and making fuller use of VAT, a far larger, more stable, and less distortive base. Read the full analysis ⬇️ buff.ly/rWY9rwj #EUCompetitiveness #TaxReform #SingleMarket

Europe lost 136 AI start-ups in 18 months. Siemens is redirecting €1bn in industrial AI investment to the US. The AI Act was not even fully implemented before it was paused for reform. Regulation without evidence is not policy. It is damaged. 💬 "Enforcement is now premised on the idea that effects and outcomes are immaterial." @FredrikErixon explains why the #DMA and #AIAct need an effects-based overhaul. @EncompassEurope ▶️ buff.ly/7inERO6 #AIAct #DMA #DigitalMarketsAct

The @EP_SingleMarket at the @Europarl_EN debates the Digital Markets Act ahead of Thursday’s key vote shaping its next enforcement phase. In our latest insights, @FredrikErixon, Dyuti Pandya, and Andrea Dugo argue that the DMA is shifting from addressing competition issues to redesigning digital markets, with interoperability rules affecting product design, innovation, and user choice. At the same time, deeper enforcement is creating frictions with GDPR, cybersecurity, and intellectual property rules. Read ➡️ ecipe.org/insights/tag/d… #DMA #DigitalMarketsAct #SingleMarket #GDPR #Cybersecurity

@EP_SingleMarket at the @Europarl_EN debates the Digital Markets Act ahead of Thursday’s key vote shaping its next enforcement phase. In our latest insights, @FredrikErixon, Dyuti Pandya, and Andrea Dugo argue that the DMA is shifting from addressing competition issues to redesigning digital markets, with interoperability rules affecting product design, innovation, and user choice. At the same time, deeper enforcement is creating frictions with GDPR, cybersecurity, and intellectual property rules. Read ➡️ ecipe.org/insights/tag/d… #DMA #DigitalMarketsAct #SingleMarket #GDPR #Cybersecurity

In the new episode of #GlobalEconomyPodcast, Director @FredrikErixon and Senior Fellow @TengizPkhaladze ask whether the EU is failing its own geopolitical test on its Eastern frontier. Ukraine, Moldova, Georgia, the Western Balkans: not separate files. One strategic space. Three stress tests: coherence, speed, and a persistent inability to resolve rather than manage conflicts. 🎧 ecipe.org/podcast/episod… #EUNeighbourhood #Geopolitics