A group of researchers is suing Elon Musk’s X to gain access to data on Hungary’s upcoming elections to assess the risk of interference, they told POLITICO. Hungary is set to hold a highly contentious election in April as populist nationalist Prime Minister Viktor Orbán faces the toughest challenge yet to his 16-year grip on power. The lawsuit by Democracy Reporting International (DRI) comes after the civil society group, in November, applied for access to X data to study risks to the Hungarian election, including from disinformation. After X rejected their request, the researchers took the case to the Berlin Regional Court, which said it is not competent to rule on the case. DRI — with the support of the Society for Civil Rights and law firm Hausfeld — is now appealing to a higher Berlin court, which has set a hearing date of Feb. 17. Sites including X are obliged to grant researchers access to data under the European Union’s regulatory framework for social media platforms, the Digital Services Act, to allow external scrutiny of how platforms handle major online risks, including election interference. The European Commission fined X €40 million for failing to provide data access in December, as part of a €120 million levy for non-compliance with transparency obligations. The lawsuit is the latest legal challenge to X after the researchers went down a similar path last year to demand access to data related to the German elections in February 2025. A three-month legal drama, which saw a judge on the case dismissed after X successfully claimed they had a conflict of interest, ended with the court throwing out the case. The platform said that was a “comprehensive victory” because “X’s unwavering commitment to protecting user data and defending its fundamental right to due process has prevailed.” The researchers also claimed a win: The court threw the case out on the basis of a lack of urgency, as the elections were well in the past, said DRI. The groups say the ruling sets a legal precedent for civil society groups to take platforms to court where the researchers are located, rather than in the platforms’ legal jurisdictions (which, in X’s case, would be Ireland). X did not respond to POLITICO’s request for comment on Monday.

LONDON — It’s a far cry from the ice age of U.K.-China relations that characterized Rishi Sunak’s leadership — and it’s not exactly David Cameron’s “golden era,” either.  As U.K. Prime Minister Keir Starmer embarks on his Chinese charm offensive against a turbulent economic backdrop, he has opted for a softly-softly approach in a bid to warm up one of Britain’s most important trading partners — a marked departure from his Tory predecessors. With the specter of U.S. President Donald Trump looming over the visit — not to mention national security concerns back home — Starmer’s cautious optimism is hardly surprising.  Despite reservations from China skeptics, Starmer’s trip — the first such visit by a British prime minister since 2018 — was peppered with warm words and a smattering of deals, some more consequential than others. Britain’s haul from the trip may be modest, but it’s just the beginning, Business and Trade Secretary Peter Kyle — who joined Starmer on the trip — told a traveling pack of reporters in Beijing. “This visit is a springboard,” the minister said. “This is not the last moment, it is a springboard into a future with far more action to come.” STEP-BY-STEP On the ground in Beijing, British officials gave the impression that the prime minister was focused on getting as many uncontroversial wins over the line as possible, in a bid to thaw relations with China. That’s not to say Starmer and his team don’t have a few tangible wins to write home about. Headline announcements include a commitment from China to allow visa-free travel for British tourists and business travelers, enabling visits of up to 30 days without the need for documents.   The provisions are similar to those extended to 50 other countries including France, Germany, Italy, Australia and Japan. The timings of the visa change have not yet been set out publicly, but one official — who, like others cited in this piece, was granted anonymity to speak freely — said they were aiming to get it nailed down in coming months. “From a business standpoint, it will reduce a lot of friction,” said a British business representative, adding it will make it easier for U.K. firms to explore opportunities and form partnerships. “China is very complicated. You have to be on the ground to really assess opportunities,” they said, adding visa-free travel “will make things a lot easier.” The commitment to visa-free travel forms part of a wider services package aimed at driving  collaboration for businesses in healthcare, financial and professional services, legal services, education and skills — areas where British firms often face regulatory or administrative hurdles.  The countries have also agreed to conduct a “feasibility study” to explore whether to enter negotiations towards a bilateral services agreement. If it goes ahead, this would establish clear and legally binding rules for U.K. firms doing business in China. Once again, the timeframe is vague. David Taylor, head of policy at the Asia House think tank in London, said “Xi’s language has been warmer and more expansive, signaling interest in stabilizing the relationship, but the substance on offer so far remains tightly defined.” “Beyond the immediate announcements, progress — particularly on services and professional access — will be harder and slower if it happens at all,” he added. WHISKY TARIFF RELIEF Another victory talked up by the British government is a plan for China to slash Scotch whisky tariffs by half, from 10 percent to 5 percent.  However, some may question the scale of the commitment, which effectively restores the rate that was in place one year ago, ahead of a doubling of the rate for whisky and brandy in February 2025. The two sides have not yet set out a timeframe for the reduction of tariffs.  Speaking to POLITICO ahead of Starmer’s trip, a senior business representative said the whisky and brandy issue had become “China leverage” in talks leading up to the visit. However, they argued that even a removal of the tariff was “not going to solve the main issue for British whisky companies in China and everywhere, which is that people aren’t buying and drinking whisky.” CHINA INVESTMENT WIN Meanwhile, China can boast a significant win in the form of a $15 billion investment in medicines manufacturing and research and development from British pharmaceutical giant AstraZeneca.  ING Bank’s global healthcare lead Stephen Farelly said that increasing investment into China “makes good business sense,” given the country is “now becoming a force in biopharma.” However, it “does shine a light on the isolation of Europe and the U.K. more generally, where there is a structural decline in investment and R&D.” AstraZeneca recently paused a £200 million investment at a Cambridge research site in September last year, which was due to create 1,000 jobs.  Britain recently increased the amount the NHS pays for branded, pharmaceutical drugs, following heavy industry lobbying and following trade negotiations with the Trump administration — all in the hopes of attracting new investment into the struggling sector.  Shadow Trade Secretary Andrew Griffith was blunt in his assessment. “AstraZeneca’s a great British company but under this government it’s investing everywhere in the world other than its U.K. home. When we are losing investment to communist China, alarm bells should be ringing in No 10 Downing Street.” Conspicuously absent from Starmer’s haul was any mention of net zero infrastructure imports, like solar panels, a reflection of rising concerns about China’s grip on Britain’s critical infrastructure. XI RETURNS So what next? As Starmer prepares to fly back home, attention has already turned to his next encounter with the Chinese leader.  On Thursday, Britain opened the door to an inward visit by Xi Jinping, with Downing Street repeatedly declining to rule out the prospect of welcoming him in future. Asked about the prospect of an inward visit — which would be the first for 11 years — Starmer’s official spokesperson told reporters: “I think the prime minister has been clear that a reset relationship with China, that it’s no longer in an ice age, is beneficial to British people and British business.” As Starmer’s trip draws to a close, one thing is certain: there is more to come. “This isn’t a question of a one-and-done summit with China,” Starmer’s spokesperson added. “It is a resetting of a relationship that has been on ice for eight years.”

The U.K. and China have announced a new services partnership to support British businesses operating in China, including through visa-free travel for short stays. The partnership will see Beijing relax its visa rules for British citizens, adding the U.K. to its visa-free list of countries. This will enable visits of up to 30 days for business and tourism without the need for a visa. The timings of the visa change have not yet been set out. The partnership focuses on better collaboration for businesses in healthcare, financial and professional services, legal services, education and skills — areas where British firms often face regulatory or administrative hurdles.  Britain and China have also agreed to conduct a “feasibility study” to explore whether to enter negotiations towards a bilateral services agreement. If it proceeds, this would establish clear and legally binding rules for U.K. firms doing business in China. Prime Minister Keir Starmer said: “As one of the world’s economic powerhouses, businesses have been crying out for ways to grow their footprints in China. “We’ll make it easier for them to do so – including via relaxed visa rules for short-term travel — supporting them to expand abroad, all while boosting growth and jobs at home.” The U.K. and China have also signed pacts covering co-operation on conformity assessments for exports from the U.K. to China, food safety, animal, and plant quarantine health and the work the UK-China Joint Economic and Trade Commission. The two sides aren’t planning to publish the full texts of the pacts.

LONDON — Keir Starmer is off to China to try to lock in some economic wins he can shout about back home. But some of the trickiest trade issues are already being placed firmly in the “too difficult” box. The U.K.’s trade ministry quietly dispatched several delegations to Beijing over the fall to hash out deals with the Chinese commerce ministry and lay the groundwork for the British prime minister’s visit, which gets going in earnest Wednesday. But the visit comes as Britain faces growing pressure from its Western allies to combat Chinese industrial overproduction — and just weeks after Starmer handed his trade chief new powers to move faster in imposing tariffs on cheap, subsidized imports from countries like China. For now, then, the aim is to secure progress in areas that are seen as less sensitive. Starmer’s delegation of CEOs and chairs will split their time between Beijing and Shanghai, with executives representing City giants and high-profile British brands including HSBC, Standard Chartered, Schroders, and the London Stock Exchange Group, alongside AstraZeneca, Jaguar Land Rover, Octopus Energy, and Brompton filling out the cast list. Starmer will be flanked on his visit by Trade Secretary Peter Kyle and City Minister Lucy Rigby. Despite the weighty delegation, ministers insist the approach is deliberately narrow. “We have a very clear-eyed approach when it comes to China,” Security Minister Dan Jarvis said Monday. “Where it is in our national interest to cooperate and work closely with [China], then we will do so. But when it’s our national security interest to safeguard against the threats that [they] pose, we will absolutely do that.” Starmer’s wishlist will be carefully calibrated not to rock the boat. Drumming up Chinese cash for heavy energy infrastructure, including sensitive wind turbine technology, is off the table. Instead, the U.K. has been pushing for lower whisky tariffs, improved market access for services firms, recognition of professional qualifications, banking and insurance licences for British companies operating in China, easier cross-border investment, and visa-free travel for short stays. With China fiercely protective of its domestic market, some of those asks will be easier said than done. Here’s POLITICO’s pro guide to where it could get bumpy. CHAMPIONING THE CITY OF LONDON Britain’s share of China’s services market was a modest 2.7 percent in 2024 — and U.K. firms are itching for more work in the country. British officials have been pushing for recognition of professional qualifications for accountants, designers and architects — which would allow professionals to practice in China without re-licensing locally — and visa-free travel for short stays. Vocational accreditation is a “long-standing issue” in the bilateral relationship, with “little movement” so far on persuading Beijing to recognize U.K. professional credentials as equivalent to its own, according to a senior industry representative familiar with the talks, who, like others in this report, was granted anonymity to speak freely. But while the U.K.’s allies in the European Union and the U.S. have imposed tariffs on Chinese EVs, the U.K. has resisted pressure to do so. | Jessica Lee/EPA Britain is one of the few developed countries still missing from China’s visa-free list, which now includes France, Germany, Italy, Spain, the Netherlands, Switzerland, Australia, New Zealand, Japan, Saudi Arabia, Russia and Sweden.  Starmer is hoping to mirror a deal struck by Canadian PM Mark Carney, whose own China visit unlocked visa-free travel for Canadians.  The hope is that easier business travel will reduce friction and make it easier for people to travel and explore opportunities on the ground — it would allow visa-free travel for British citizens, giving them the ability to travel for tourism, attend business conferences, visit friends and family, and participate in short exchange activities.  SMOOTHING FINANCIAL FLOWS The Financial Conduct Authority’s Chair Ashley Alder is also flying out to Beijing, hoping to secure closer alignment between the two countries’ capital markets. He’ll represent Britain’s financial watchdog at the inaugural U.K-China Financial Working Group in Beijing — and bang the drum for better market connectivity between the U.K. and China. Expect emphasis on the cross-border investments mechanism known as the Shanghai-London and Shenzhen-London Stock Connect, plus data sovereignty issues associated with Chinese companies jointly listing on the London Stock Exchange, two figures familiar with the planning said. The Stock Connect opened up both markets to investors in 2019 which, according to FCA Chair Ashley Alder, led to listings worth almost $6 billion. “Technical obstacles have so far prevented us from realizing Stock Connect’s full potential,” Alder said in a speech last year. Alder pointed to a memorandum of understanding being drawn up between the FCA and China’s National Financial Regulatory Administration, which he said is “critical” to allow information to be shared quickly and for firms to be supervised across borders. But that raises its own concerns about Chinese use of data. “The goods wins are easier,” said a senior British business representative briefed on the talks. “Some of the service ones are more difficult.” TAPPING INTO CHINA’S BIOTECH BOOM Pharma executives, including AstraZeneca’s CEO Pascal Soriot, are among those heading to China, as Britain tries to burnish its credentials as a global life sciences hub — and attract foreign direct investment. China, once known mainly for generics — cheaper versions of branded medicine that deliver the same treatment — has rapidly emerged as a pharma powerhouse. According to ING Bank’s global healthcare lead, Stephen Farrelly, the country has “effectively replaced Europe” as a center of innovation. ING data shows China’s share of global innovative drug approvals jumped from just 4 percent in 2014 to 27 percent in 2024. Pharma executives, including AstraZeneca’s CEO Pascal Soriot, are among those heading to China, as Britain tries to burnish its credentials as a global life sciences hub — and attract foreign direct investment. | John G. Mabanglo/EPA Several blockbuster drug patents are set to expire in the coming years, opening the door for cheaper generic competitors. To refill thinning pipelines, drugmakers are increasingly turning to biotech companies. British pharma giant GSK signed a licensing deal with Chinese biotech firm Hengrui Pharma last July. “Because of the increasing relevance of China, the big pharma industry and the U.K. by definition is now looking to China as a source of those new innovative therapies,” Farrelly said. There are already signs of progress. Science Minister Patrick Vallance said late last year that the U.K. and China are ready to work together in “uncontroversial” areas, including health, after talks with his Chinese counterpart. AstraZeneca, the University of Cambridge and Beijing municipal parties have already signed a partnership to share expertise. And earlier this year, the U.K. announced plans to become a “global first choice for clinical trials.” “The U.K. can really help China with the trust gap” when it comes to getting drugs onto the market, said Quin Wills, CEO of Ochre, a biotech company operating in New York, Oxford and Taiwan. “The U.K. could become a global gold stamp for China. We could be like a regulatory bridgehead where [healthcare regulator] MHRA, now separate from the EU since Brexit, can do its own thing and can maybe offer a 150-day streamlined clinical approval process for China as part of a broader agreement.” SLASHING WHISKY TARIFFS  The U.K. has also been pushing for lowered tariffs on whisky alongside wider agri-food market access, according to two of the industry figures familiar with the planning cited earlier. Talks at the end of 2024 between then-Trade Secretary Jonathan Reynolds and his Chinese counterpart ended Covid-era restrictions on exports, reopening pork market access. But in February 2025 China doubled its import tariffs on brandy and whisky, removing its provisional 5 percent tariff and applying the 10 percent most-favored-nation rate. “The whisky and brandy issue became China leverage,” said the senior British business representative briefed on the talks. “I think that they’re probably going to get rid of the tariff.”  It’s not yet clear how China would lower whisky tariffs without breaching World Trade Organization rules, which say it would have to lower its tariffs to all other countries too. INDUSTRIAL TENSIONS The trip comes as the U.K. faces growing international pressure to take a tougher line on Chinese industrial overproduction, particularly of steel and electric cars. But in February 2025 China doubled its import tariffs on brandy and whisky, removing its provisional 5 percent tariff and applying the 10 percent most-favored-nation rate. | Yonhap/EPA But while the U.K.’s allies in the European Union and the U.S. have imposed tariffs on Chinese EVs, the U.K. has resisted pressure to do so. There’s a deal “in the works” between Chinese EV maker and Jaguar Land Rover, said the senior British business representative briefed on the talks quoted higher, where the two are “looking for a big investment announcement. But nothing has been agreed.” The deal would see the Chinese EV maker use JLR’s factory in the U.K. to build cars in Britain, the FT reported last week. “Chinese companies are increasingly focused on localising their operations,” said another business representative familiar with the talks, noting Chinese EV makers are “realising that just flaunting their products overseas won’t be a sustainable long term model.” It’s unlikely Starmer will land a deal on heavy energy infrastructure, including wind turbine technology, that could leave Britain vulnerable to China. The U.K. has still not decided whether to let Ming Yang, a Chinese firm, invest £1.5 billion in a wind farm off the coast of Scotland.

BRUSSELS — Meta’s WhatsApp will face fresh scrutiny from Brussels after the EU decided the service falls under its tough regime for the biggest online platforms. A decision announced Monday to classify WhatsApp Channels as a popular online platform — joining the likes of Facebook, Instagram, X and TikTok — means that the app will now be held liable for how it handles systemic risks to users. Platforms that fail to meet regulatory requirements can be fined up to 6 percent of global annual turnover under the EU’s Digital Services Act. The verdict also lands as countries such as France are actively discussing restrictions on social media platforms for children. The decision focuses particularly on WhatsApp Channels in which admins can broadcast announcements to groups of people in a feed, making it different from the messaging feature. WhatsApp’s private messaging service is explicitly excluded. WhatsApp was aware that the decision was coming as far back as August, when it reported that Channels had approximately 51.7 million users in the EU. That crossed the EU’s threshold for Very Large Online Platforms with over 45 million users in the EU. Meta now has four months to assess and mitigate systemic risks on its platform. Those risks include the spread of illegal content, as well as threats to civic discourse, elections, fundamental rights and health. “WhatsApp Channels continue to grow in Europe and globally. As this expansion continues, we remain committed to evolving our safety and integrity measures in the region, ensuring they align with relevant regulatory expectations and our ongoing responsibility to users,” WhatsApp spokesperson Joshua Breckman said in a statement.

It seems impossible to have a conversation today without artificial intelligence (AI) playing some role, demonstrating the massive power of the technology. It has the potential to impact every part of business, and European policymakers are on board. In February 2025, Ursula von der Leyen, the European Commission president, said, “We want Europe to be one of the leading AI continents … AI can help us boost our competitiveness, protect our security, shore up public health, and make access to knowledge and information more democratic.” Research from Nokia suggests that businesses share this enthusiasm and ambition: 84 percent of more than 1,000 respondents said AI features in the growth strategy of their organization, while 62 percent are directing at least 20 percent of ICT capex budgets toward the technology. However, the equation is not yet balanced. Three-quarters of survey respondents state that current telecom infrastructure limits the ability to deliver on those ambitions. Meanwhile, 45 percent suggest these limitations would delay, constrain or entirely limit investments. There is clearly a disconnect between the ambition and the ability to deliver. At present, Europe lags the United States and parts of Asia in areas such as network deployment, related investment levels and scale. > If AI does not reach its full potential, EU competitiveness will suffer, > economic growth will have a ceiling, the creation of new jobs will have a > limit and consumers will not see the benefits. What we must remember primarily is that AI does not happen without advanced, trusted and future-proofed networks. Infrastructure is not a ‘nice to have’ it is a fundamental part. Simply put, today’s networks in Europe require more investments to power the AI dream we all have. If AI does not reach its full potential, EU competitiveness will suffer, economic growth will have a ceiling, the creation of new jobs will have a limit and consumers will not see the benefits. When we asked businesses about the challenge of meeting AI demands during our research, the lack of adequate connectivity infrastructure was the fourth common answer out of 15 potential options. Our telecom connectivity regulatory approach must be more closely aligned with the goal of fostering AI. That means progressing toward a genuine telecom single market, adopting a novel approach to competition policy to allow market consolidation to lead to more investments, and ensuring connectivity is always secure and trusted. Supporting more investments in next-generation networks through consolidation AI places heavy demands on networks. It requires low latency, high bandwidth and reliability, and efficient traffic management. To deliver this, Europe needs to accelerate investment in 5G standalone, fiber to enterprises, edge data centers and IP-optical backbone networks optimized for AI. > As industry voices such as Nokia have emphasized, the networks that power AI > must themselves make greater use of automation and AI. Consolidation (i.e. reducing the number of telecom operators within the national telecom markets of EU member states) is part of the solution. Consolidation will allow operators to achieve economies of scale and improve operating efficiency, therefore encouraging investment and catalyzing innovation. As industry voices such as Nokia have emphasized, the networks that power AI must themselves make greater use of automation and AI. Policy support should therefore extend to both network innovation and deployment. Trust: A precondition for AI adoption Intellectual property (IP) theft is a threat to Europe’s industrial future and only trusted technology should be used in core functions, systems and sectors (such as energy, transport and defense). In this context, the underlying connectivity should always be secure and trusted. The 5G Security Toolbox, restricting untrusted technology, should therefore be extended to all telecom technologies (including fiber, optics and IP) and made compulsory in all EU member states. European governments must make protecting their industries and citizens a high priority. Completing the digital single market Although the single market is one of Europe’s defining projects, the reality in telecoms — a key part of the digital single market — is still fragmented. As an example, different spectrum policies create barriers across borders and can limit network roll outs. Levers on top of advanced connectivity To enable the AI ecosystem in Europe, there are several different enabling levers European policymakers should advance on top of fostering advanced and trusted connectivity: * The availability of compute infrastructure. The AI Continent Action Plan, as well as the IPCEI Compute Infrastructure Continuum, and the European High-Performance Computing Joint Undertaking should facilitate building AI data centers in Europe.   * Leadership in edge computing. There should also be clear support for securing Europe’s access to and leadership in edge solutions and building out edge capacity. Edge solutions increase processing speeds and are important for enabling AI adoption, while also creating a catalyst for economic growth. With the right data center capacity and edge compute capabilities available, European businesses can meet the new requirements of AI use cases.  * Harmonization of rules. There are currently implications for AI in several policy areas, including the AI Act, GDPR, Data Act, cybersecurity laws and sector-specific regulations. This creates confusion, whereas AI requires clarity. Simplification and harmonization of these regulations should be pursued.  * AI Act implementation and simplification. There are concerns about the implementation of the AI Act. The standards for high-risk AI may not be available before the obligations of the AI act enter into force, hampering business ambitions due to legal uncertainty. The application date of the AI Act’s provisions on high-risk AI should be postponed by two years to align with the development of standards. There needs to be greater clarity on definitions and simplification measures should be pursued across the entire ecosystem. Policies must be simple enough to follow, otherwise adoption may falter. Policy needs to act as an enabler, not a barrier to innovation.  * Upskilling and new skills. AI will require new skills of employees and users, as well as creating entirely new career paths. Europe needs to prepare for this new world.  If Europe can deliver on these priorities, the benefits will be tangible: improved services, stronger industries, increased competitiveness and higher economic growth. AI will deliver to those who best prepare themselves. We must act now with the urgency and consistency that the moment demands. -------------------------------------------------------------------------------- Author biography: Marc Vancoppenolle is leading the geopolitical and government relations EU and Europe function at Nokia. He and his team are working with institutions and stakeholders in Europe to create a favorable political and regulatory environment fostering broadband investments and cross sectoral digitalization at large. Vancoppenolle has over 30 years of experience in the telecommunication industry. He joined Alcatel in 1991, and then Alcatel-Lucent, where he took various international and worldwide technical, commercial, marketing, communication and government affairs leadership roles. Vancoppenolle is a Belgian and French national. He holds a Master of Science, with a specialization in telecommunication, from the University of Leuven complemented with marketing studies from the University of Antwerp. He is a member of the DIGITALEUROPE Executive Board, Associate to Nokia’s CEO at the ERT (European Round Table for Industry), and advisor to FITCE Belgium (Forum for ICT & Media professionals). He has been vice-chair of the BUSINESSEUROPE Digital Economy Taskforce as well as a member of the board of IICB (Innovation & Incubation Center Brussels).

LONDON — Chancellor Rachel Reeves and Trade Secretary Peter Kyle will travel to China next week as Britain eyes closer economic ties with the Asian superpower. The chair of the Financial Conduct Authority is also expected to travel to the country as Prime Minister Keir Starmer leads a delegation of roughly 50 C-suite leaders and chairs from business and cultural institutions. Executives from HSBC, Standard Chartered, and the London Stock Exchange Group have been invited. The guest list is heavily weighted towards financial services. The trip comes as the government faces growing international pressure to take a tougher line on Chinese industrial overcapacity — and a backlash back home over its recent decision to approve a super-embassy near the Tower of London despite a raft of security concerns.   “It’s substantially important for businesses,” said a senior business representative, granted anonymity to speak about the preparations. “In terms of conversation and talk, there’s a step change under the new government,” they said, arguing Labour had made swift progress since coming to office. Some firms “weren’t able to engage with the Chinese government at all 12 months ago,” they noted. Industry executives familiar with the talks said the U.K. has been pushing for a Memorandum of Understanding covering services trade, as well as recognition of professional qualifications for accountants, designers, and architects — and visa-free access to China for Brits making short-term business trips. The U.K. is also hopeful of positive movement on whisky tariffs, according to two of the industry figures. In February 2025, China doubled its import tariffs on brandy and whisky, removing its provisional 5 percent tariff and applying the 10 percent most-favored-nation rate. MARKET PUSH British and Chinese financial regulators are due to meet in Beijing to advance work to link up the London stock market with markets in Shanghai and Shenzhen, as well as tackling cross-border data sharing issues. The Stock Connect initiative opened up both markets to investors in 2019 which, according to FCA Chair Ashley Alder, led to listings worth almost $6 billion on the London Stock Exchange.   “Technical obstacles have so far prevented us from realizing Stock Connect’s full potential,” Alder said in a speech in May last year.    He pointed to the Memorandum of Understanding being developed between the FCA and China’s National Financial Regulatory Administration as “critical to provide the mechanisms needed to share information swiftly, supervise firms effectively across borders, and promote market openness,” with “fast and efficient exchange of data [being] vital to manage the risks.”  “The goods wins are easier,” said the senior business representative. “Some of the service ones are more difficult. The issues that financial services firms have in China [are] around access to sensitive data and the transfer of money.” The U.K. also hopes to be the latest country to join China’s visa-free list, which would enable British citizens to travel for short-term business trips, exchanges, or holidays without applying for a visa.   There are 48 countries currently on the list, including France, Germany, Italy, Spain, the Netherlands, Switzerland, Australia, New Zealand, Japan, Saudi Arabia, Russia, and Sweden. The Treasury, Department for Business and Trade and FCA did not respond to a request for comment.

Top officials in the European Parliament have voted to condemn U.S. sanctions on former European Commissioner Thierry Breton. Washington last month slapped a visa ban on Breton, who was the EU’s tech czar during the previous term of European Commission President Ursula von der Leyen. The prohibition owed to Breton’s role in pushing through the bloc’s flagship digital rulebook, which the Trump administration sees as regulatory overreach against American social media and tech giants. “The European Parliament firmly rejects the visa ban imposed by the US authorities on former Commissioner Breton, which is solely motivated due to his role in the development and implementation of the Digital Services Act,” the leaders of the parliament’s various political groups, who make up its Conference of Presidents, said in a joint statement. Calling the sanctions “an unacceptable personalisation of EU policy, a dangerous precedent for the independence of the European Institutions and an attack on the EU’s regulatory sovereignty,” the parliament’s top officials added: “The European Parliament and all other EU institutions should jointly ensure that similar attacks against current or former members of the EU institutions are met with a systematic and coordinated response.” The right-wing European Conservatives and Reformists group, the political home of Italian Prime Minister Giorgia Meloni, and the far-right Europe of Sovereign Nations group did not support the statement. Breton and four other European nationals were targeted by the U.S. sanctions in late December. The penalties were the first Washington has levied at an EU policymaker and marked a new low in transatlantic relations. The statement added that the “Parliament welcomes the Commission’s decision to grant legal and financial assistance” to Breton. Breton welcomed the statement of support. “When bullied, the EU must stand firm — on principles & on action,” he wrote on social media. “I welcome the European Parliament’s rejection of the US visa ban targeting me. This is not about one individual. It is about our capacity to vote our own laws without any interference.” The French former commissioner told POLITICO in an interview that the sanctions had arisen from a “major misunderstanding” about the EU’s Digital Services Act, and insisted he respects U.S. freedom of speech traditions.  “People imagine that the DSA was conceived to have extra-territorial reach. That’s completely false,” he said. The Commission slapped tech entrepreneur Elon Musk’s X with a €120 million fine last month under the DSA, while Apple and Meta were fined hundreds of millions of euros last year for breaking separate digital antitrust rules.

Europe is laying the foundation for renewed economic growth. Regulatory simplification is gaining traction. Public investment is accelerating in technology, energy and defense. Private capital is supplementing these efforts. These are meaningful steps, which, in the eyes of many, are long overdue and still need to gain pace. But an additional ingredient is required.  Our new research finds that closing the continent’s competitiveness gap requires Europe’s major companies to place a new emphasis on entrepreneurial courage: that is, the increased willingness to embrace uncertainty and take calculated risks in service of renewal and growth. Corporate leaders willing to make bold investments and engage in modern public-private collaborations, much like their American and Asian peers, stand to reap the rewards for acting decisively and with greater urgency.   Europe’s global competitiveness is ultimately a function of individual companies making a material difference, particularly large corporations and dynamic scale-ups. And it doesn’t require many acting boldly to have a disproportionate impact. In examining a sample representing about 15 percent of the U.S. economy, the McKinsey Global Institute found that more than two-thirds of productivity growth between 2011 and 2019 was driven by just 44 ‘standout’ companies. Meanwhile, 13 standout companies drove a similar proportion of the German sample’s productivity growth during the same period. These highly valued ‘outliers’, together with differences in growth and return on invested capital, underpin much of the valuation gap between European companies and their international peers, as highlighted in research we conducted on UK capital markets.   The status quo is not tenable.  Since the global financial crisis, Europe has endured a prolonged slump in private investment that has been especially pronounced in future-shaping industries. In the past five years alone, our analysis found that companies with headquarters in the United States have invested €2 trillion more in digital technologies such as artificial intelligence (AI) than their European peers. And in traditional manufacturing industries, China is out-investing Europe at a rate of 3:1.  > This investment gap not only stifles European economic growth, but prevents > the continent from inventing, developing and deploying the technologies it > needs to increase productivity and drive prosperity.  And the need to boost investments is growing: when the landmark Draghi report on European competitiveness was released in 2024, it estimated that an additional €800 billion needed to be mobilized annually to start closing the continent’s competitiveness gap. With the required additional investment in defense, that figure is now estimated to be €1.2 trillion annually for the next five years.  Of course, the regulatory landscape is also important. The positive news over the past year is that the European Commission has implemented dozens of initiatives, from regulatory simplification to streamlining and enhancing funding and market-creation mechanisms, as well as preparing to propose a ‘28th regime’ to make it easier for companies to scale across its 27 member states. Governments are also stepping up, with growth in strategic public investment in technology, energy and defense capabilities creating tailwinds for private investment. For instance, Germany amended its constitution to exempt defense spending above 1 percent of GDP from its debt brake and established a €500 billion fund to support infrastructure and climate-neutral investment. Similar programs are taking shape in France, Italy, the Netherlands and the Nordics.  But, while private sector activity shows some signs of acceleration, more is needed. Driving Europe’s economic vitality requires the emergence of standout companies, acting both individually and in close collaboration with the public sector. Without it, Europe risks another decade of ‘secular stagnation’: sluggish real GDP growth of around 1 percent annually as excess savings and a dearth of investment depress aggregate demand and push interest rates back to near zero.  > So, what does it take to show more entrepreneurial courage? Informed by our > global research and what we see standout firms doing, our research highlights > a range of actions leaders could explore.  One example is making broader ecosystem plays, such as semiconductor company ASML joining with the Dutch government and regional partners to launch Project Beethoven, a €2.5 billion public-private investment to ensure ASML’s continued presence and expansion of the broader microchip cluster in Eindhoven. Another is re-inventing potential stranded assets to position them for the industries of the future, illustrated by the range of European utilities converting or marketing former coal and gas power plant sites for hyperscale data centers. And a clear one is radical adoption of AI and automation technologies, which MGI’s research shows could add up to 3.4 percentage points to annual productivity growth globally through 2040.  > Europe has an opportunity to take steps to decisively alter its competitive > trajectory.  But while public sector leaders can lay the foundations necessary to accelerate investment and growth, the continent’s leading companies are distinctly positioned to amplify this and make a critical contribution to the continent’s prosperity, security and strategic autonomy. There’s growing consensus on what needs to be done. What’s now needed is a hefty dose of entrepreneurial courage to act.

BRUSSELS — It reads like Washington’s worst nightmare: a European tech regulator independent of the Brussels institutions and armed to crack down on the violations of U.S. companies. But that’s exactly what some in Brussels say is now needed as the EU struggles to get a grip on how to implement and enforce its digital laws amid repeated political attacks from the White House. The attacks are reviving a long-held goal among EU legislators: to establish an independent, well-resourced regulator that sits outside EU institutions to enforce its many tech rulebooks. While the dream faces hurdles to becoming a reality, the timing of its resurrection reflects growing concerns that the EU has failed to underpin its ambition to be the world’s digital policeman with adequate enforcement structures that can resist U.S. attacks. After years of lawmaking, Brussels governs through a patchwork of rules and institutions that clash with the reality of U.S. politics. The EU’s maze of rules and regulators has also been thrown into sharp focus by the ongoing Grok scandal, which saw the artificial intelligence tool allow users of Elon Musk’s X to generate sexualized deepfakes. The EU’s maze of rules and regulators has also been thrown into sharp focus by the ongoing Grok scandal. | Samuel Boivin/NurPhoto via Getty Images “The enforcement is not happening because there’s too much pressure from the Trump administration,” said Alexandra Geese, a German Greens European Parliament lawmaker who negotiated the EU’s platform law, the Digital Services Act. For Geese, it’s an “I told you so” moment after EU legislators floated the possibility of creating a standalone agency to enforce the digital rulebooks when they were being negotiated. A group of EU countries, led by Portugal, also tinkered with the idea late last year. BLACKMAIL The Digital Services Act sits at the center of the U.S.-EU feud over how Brussels is enforcing its tech rules. The European Commission is responsible for enforcing these rules on platforms with over 45 million users in the EU, among them some of the most powerful U.S. companies including Elon Musk’s X, Mark Zuckerberg’s Meta and Alphabet’s Google. As the bloc’s executive arm, the Commission also needs buy-in from the White House for negotiations on tariffs, security guarantees for Ukraine, and a host of other major political topics. The Commission last month slapped a €120 million fine on Musk’s X, its first under the DSA, which prompted a fierce rebuke from Washington. Just weeks later the U.S. imposed a travel ban on Thierry Breton, a former EU commissioner and one of the officials behind the law. It topped off a year in which the U.S. repeatedly attacked the DSA, branding it “censorship” and treating it as a bargaining chip in trade talks. This fueled concerns that the Commission was exposed and that digital fines were, as a result, being delayed or disrupted. Among the evidence was a last-minute intervention by the EU’s trade chief to delay a Google antitrust penalty at what would have been a sensitive time for talks. The fine eventually landed some months later. “Delegating digital enforcement to an independent body would strengthen the EU’s bargaining position against the U.S.,” Mario Mariniello, a non-resident fellow at think tank Bruegel, argued in a September piece on how the Commission could protect itself against blackmail. The need to separate enforcement powers is highest for the bloc’s online content law, he argued. “There, the level of politicization is so high that you would have a significant benefit.” “It’s so political, there’s no real enforcement, there’s no independent enforcement, independent from politics,” Geese said. Alexandra Geese, the German Greens European Parliament lawmaker who negotiated the EU’s platform law, the Digital Services Act. | Martin Bertrand/Hans Lucas/AFP via Getty Images Meanwhile, the recent controversy around X’s AI tool Grok, which allowed users to generate sexualized fakes based on real-life images, has illustrated the complexity of the EU’s existing structures and laws. As a platform, X has to address systemic risks arising from the spread of illegal content under the DSA, while it also faces obligations regarding its AI tool — such as watermarking deepfakes — under the EU’s AI Act. National authorities or prosecutors took an interest in the matter alongside Brussels, because in some countries it’s illegal to share nudes without consent, and because the spread of child sexual abuse material is governed by separate laws involving national regulators. Having a single powerful digital authority could address the fragmented enforcement carried out by several authorities under different EU rulebooks, according to Geese. “It’s absolutely true that the rulebooks are scattered, that enforcement is scattered [and] that it would be easier to have one agency,” Geese said. “It would have made sense … to do that right away [when the laws were being drafted], as an independent agency, a little bit out of the realm of day-to-day politics,” she added. “Europe urgently needs a single digital enforcement agency to provide legal certainty and ensure EU laws work consistently across the Union,” said German Greens European Parliament lawmaker Sergey Lagodinsky, who added that the current enforcement landscape is “siloed, with weak coordination.” HURDLES A proposal to establish such a regulator would likely face opposition from EU governments.  Last year Portugal launched a debate on whether EU countries should be able to appoint a single digital regulator themselves, as they grappled with the enforcement of several rulebooks.  “The central question is whether a single digital regulator should be established, at national level, coordinating responsibilities currently spread across multiple authorities whilst ensuring a more integrated consistent approach to enforcement,” Portuguese Minister for State Reform Gonçalo Matias wrote in an invitation for an October summit with 13 countries, seen by POLITICO.  Although the pitch proved controversial, it received some support in the summit’s final declaration. “The potential establishment of a single digital regulator at national or EU level can consolidate responsibilities, ensure coherent enforcement of EU digital legislation and foster an innovation-friendly regulatory culture,” the 13 countries said.  That group didn’t include countries that are traditionally skeptical of handing power to a Brussels-backed agency, such as Hungary, Slovakia and Poland.  Isolating tech enforcement in an independent agency could also limit the interplay with the Commission’s other enforcement powers, such as on antitrust matters, Mariniello argued.  Even for advocates such as Geese, there is a potential downside to reopening the debate at such a critical moment for digital enforcement. “The world is watching Europe to see how it responds to one of the most egregious episodes of a large language model perpetuating gender based violence,” she wrote in a recent opinion. As for a new agency, “You’re gonna debate this for two or three years, with the Council, and Hungary and Slovakia are going to say: No way. And in the meantime, nothing happens, because that becomes the excuse: The agency is going to do it,” Geese said.