I. European AI Act Comes into Effect
The European Artificial Intelligence Act (AI Act), the first comprehensive AI regulation worldwide, is now in force. This law guarantees that AI development and usage in the EU is safe and protects fundamental rights, while also encouraging innovation and investment.
The AI Act classifies AI systems by risk levels:
Minimal Risk: AI systems like spam filters face no obligations. Companies may voluntarily adopt guidelines.
Specific Transparency Risk: Systems like chatbots must disclose their AI nature. AI-generated content, such as deepfakes, must be labeled. Synthetic media should be marked in a detectable format.
High Risk: High-risk AI, such as systems used in recruitment or financial decisions, must meet strict requirements like human oversight, risk mitigation, and cybersecurity. Regulatory sandboxes will support innovation.
Unacceptable Risk: AI systems threatening human rights are banned. This includes tools for social scoring or predictive policing, as well as some uses of biometric identification.
The law also applies to general-purpose AI models used for multiple tasks, ensuring transparency and addressing potential risks.
EU countries have until August 2025 to appoint national authorities to enforce these rules. The European Commission’s AI Office will handle EU-wide implementation, supported by advisory bodies.
Non-compliance could lead to fines up to 7% of global revenue for banned applications.
Most of the AI Act’s rules will take effect in August 2026, though some bans start earlier. The Commission is also encouraging companies to adopt the rules voluntarily through the AI Pact.
The EU continues to refine its AI regulations, inviting stakeholders to shape future guidelines and codes of practice.
Our team enjoys long-lasting relationships and understands the complexities to help shape decisions.
II. EU Restricts PFHxA Chemicals to Protect Health and Environment
The European Commission has introduced new regulations under the REACH legislation to limit the use of undecafluorohexanoic acid (PFHxA) and related substances, part of the broader PFAS family. These chemicals are highly persistent in water and pose significant risks to both human health and the environment.
The new restriction targets areas where risks are not well-controlled, safer alternatives are available, and the economic impact is manageable. The ban includes the use of PFHxA in products like:
Consumer textiles (e.g., rain jackets)
Food packaging (e.g., pizza boxes)
Waterproofing sprays
Cosmetics
Some firefighting foams
However, PFHxA will still be permitted in applications like semiconductors, batteries, and fuel cells, which are vital for green hydrogen technologies.
This move builds on previous efforts to reduce PFAS emissions, as PFHxA often replaces another banned substance, PFOA. The restriction is based on scientific evaluations by the European Chemicals Agency (ECHA) and has been approved by both the European Parliament and the Council.
The new rule will be enforced 20 days after publication in the Official Journal, with transitional periods ranging from 18 months to five years, depending on the specific use.
PFAS chemicals, often called “forever chemicals,” do not break down naturally and have contaminated soil and water, including drinking supplies. The EU has been taking action to address PFAS pollution for the past two decades, as part of its broader strategy to promote sustainability and protect human health.
The new PFHxA restrictions are part of the EU’s ongoing efforts to tackle PFAS risks, separate from a broader PFAS ban currently under review by ECHA.
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III. EU and Singapore Finalize Digital Trade Agreement
The European Union and Singapore have completed negotiations for a Digital Trade Agreement (DTA), marking the EU’s first deal focused on digital trade. This agreement positions the EU as a global leader in setting standards for digital trade and cross-border data flow rules.
The DTA builds on the 2019 EU-Singapore Free Trade Agreement, enhancing economic ties between the two regions. It aims to boost digital trade by providing clear rules for businesses, increasing consumer trust, and eliminating barriers to online commerce. The agreement also promises new economic opportunities while maintaining a safe and secure digital environment.
Key benefits of the agreement include:
Facilitating digital trade in goods and services
Allowing cross-border data flows without unnecessary restrictions
Strengthening consumer trust through strict rules, including anti-spam measures
This deal solidifies the EU and Singapore’s role in shaping global digital policies while ensuring that digital economies remain open and fair. It also aligns with the EU’s approach to protecting individual rights in digital and data governance.
With negotiations concluded, the EU and Singapore will begin their respective approval processes for the formal signing of the agreement.
The DTA complements the 2019 EU-Singapore Free Trade Agreement, advancing the relationship to a new level. It reflects the EU’s commitment to establishing modern digital trade rules with global partners, as seen in recent agreements with the UK, Chile, New Zealand, and Japan.
In 2022, over half of the trade between the EU and Singapore was digitally delivered, amounting to €43 billion. The new DTA is expected to further increase this trade and create more growth opportunities.
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IV. EU Registers Two New Citizens’ Initiatives on Animal Farming and Food Labelling
The European Commission has registered two new European Citizens’ Initiatives: “Stop Cruelty Stop Slaughter” and “Stop Fake Food: Origin on Label.”
The “Stop Cruelty Stop Slaughter” initiative calls for the EU to promote plant-based proteins, such as plant-based milk and egg substitutes, and cultivated meat. The organizers also aim to reduce the number of farm animals and progressively close all animal farms.
The “Stop Fake Food: Origin on Label” initiative seeks transparent food labeling for consumers, providing clear information on the origin of food products. The initiative also emphasizes consistent environmental, health, and labor standards across the EU’s internal market.
Both initiatives meet the legal requirements under EU law, and the Commission has deemed them legally admissible. However, at this stage, the Commission has not assessed the substance of the proposals.
Organizers have six months to begin collecting signatures. If an initiative gathers at least one million signatures within one year, with support from at least seven EU countries, the Commission will be required to respond. It will then decide whether to take action and explain its decision.
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V. EU Proposes Digital Travel Application for Faster and Safer Border Crossings
The European Commission has put forward two proposals to digitalize passports and identity cards, known as the “EU Digital Travel application,” to streamline travel to and from the Schengen area.
Currently, both EU and non-EU citizens undergo physical checks at external borders. With nearly 600 million crossings recorded in 2023, there is a need to speed up these checks while maintaining a high level of security. The proposed digital travel credentials aim to make border control faster and more efficient.
Key Features of the Digital Travel Credentials:
Digital Version of Travel Documents: The new digital passports and ID cards will contain the same data stored on traditional documents, including a facial image, but not fingerprints. Travellers can store these credentials on their mobile phones. Use of digital credentials will be voluntary and free of charge.
Faster Border Crossings: Travellers, both EU and non-EU, can submit their digital documents in advance for quicker border checks when traveling to or from the Schengen area.
Enhanced Freedom of Movement: Digital identity cards may be used for registration and identification when moving between EU countries, reducing administrative burdens for EU citizens.
Improved Border Efficiency: By conducting advance checks through digital travel credentials, border authorities can focus more on detecting cross-border crime and migrant smuggling.
Increased Security: Digital credentials will improve document verification, reducing the risk of fraud and making it harder for fake documents to go unnoticed.
The EU Digital Travel Application
The Commission, supported by eu-LISA, will develop the EU Digital Travel application. Available to all citizens with biometric passports or EU identity cards, this app will allow users to:
Create digital travel credentials.
Submit travel plans and documents in advance.
Ensure data protection, with user consent required before processing personal information.
The application will be fully operational by 2030 and integrated with the European Digital Identity wallet.
The proposals now await approval by the Council and the European Parliament. Once adopted, development of the digital travel application and technical standards will begin.
Our team enjoys long-lasting relationships and understands the complexities to help shape decisions.
VI. EU Pushes for Stronger Smoke-Free Measures to Protect Public Health
The European Commission has recommended stronger smoke-free environment policies to better protect people, particularly children and young people, from second-hand smoke and aerosols. This initiative aims to revise the current Council Recommendation on smoke-free environments.
The new guidelines suggest that EU Member States expand smoke-free areas to outdoor spaces where children are likely to be present, such as playgrounds, amusement parks, swimming pools, and areas near healthcare and educational facilities, public buildings, and transportation stops.
Additionally, the Commission recommends extending these policies to include emerging products like heated tobacco products (HTPs) and electronic cigarettes. The World Health Organization (WHO) has highlighted the harmful effects of second-hand emissions from these products, which can cause respiratory and cardiovascular issues, particularly in younger users.
To support these measures, the Commission encourages Member States to share best practices and strengthen international cooperation. The EU will provide financial backing, including a €16 million grant from the EU4Health program and €80 million from the Horizon Programme to strengthen tobacco control and addiction prevention. The Commission will also develop a prevention toolkit aimed at protecting children and young people.
While these recommendations are addressed to Member States, health policy remains under national jurisdiction. Therefore, countries are invited to implement these measures based on their own circumstances and needs.
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VII. EU Updates Guidelines on Air Passenger Rights for Better Clarity
The European Commission has released updated guidelines on air passenger rights to improve compliance and ensure consistent enforcement across the EU. These revisions clarify key regulations and address recent rulings by the Court of Justice, enhancing protection for travelers. A new section on managing large-scale travel disruptions has also been added.
The guidelines also include revised rules for passengers with disabilities and reduced mobility, ensuring clearer rights and improved support during air travel.
EU-level passenger rights are enforced by national bodies, but inconsistent practices have caused confusion for travelers, particularly when crossing borders. These updated guidelines aim to harmonize enforcement and help passengers understand their rights more easily. They complement ongoing efforts by the Commission to raise awareness, including through online campaigns, the Your Europe website, and a mobile app for passenger rights.
Survey Results on Passenger Awareness
A new Eurobarometer survey reveals that while awareness of passenger rights has grown, many Europeans still feel underinformed. The survey found that:
33% of respondents felt informed about rail travel rights, followed by 30% for air travel.
84% of passengers with disabilities or reduced mobility were satisfied with assistance.
35% of travelers had seen information on passenger rights, a 13% increase since 2019.
Satisfaction with how major disruptions were handled was highest for flights (66%), followed by ships/ferries (53%), rail (52%), and coaches (50%).
The revised guidelines are now available for use by transport operators and enforcement bodies. The survey results and updated guidelines will also inform discussions on future legislation concerning passenger rights, including multimodal journeys.
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