European Union

This week, a secretive race has begun to replace the EU’s top fraud-buster, while Germany and Italy team up to kill off the EU’s vehicle emissions law

Written by Enrico D’Ambrogio.

Japan’s culture of national resilience is one of the most advanced in the world. The UN-backed definition of preparedness was adopted in 2017 in Japan, a country highly exposed to natural hazards, under the Sendai Framework for Disaster Risk Reduction (DRR). Through national resilience, the country aims to prevent human loss by any means, avoid fatal damage to important functions for maintaining administration as well as social and economic systems, mitigate damage to private property and public facilities, and achieve swift recovery and reconstruction.

The COVID-19 pandemic made Japan an early mover in the implementation of economic security policies, including reducing the dependence of its supply chains on China. Japan appointed the world’s first minister for economic security and adopted legislation to protect the country from coercion by others through economic dependency. Japan’s initiatives also made it a leader in global green supply chains. The adoption of three main documents in December 2022 helped Japan reshape its approach to national security and defence and become better equipped to face the current complex geopolitical environment.

In March 2025, the European Commission launched the preparedness union strategy. The EU and Japan are increasing cooperation in several aspects related to preparedness and resilience, including in economic security, cybersecurity and foreign information manipulation.

Read the complete briefing on ‘Japan’s preparedness strategies: Lessons for the EU‘ in the Think Tank pages of the European Parliament.

Bundesrat Ignazio Cassis hat seinen chinesischen Amtskollegen, Aussenminister Wang Yi, am Freitag in Bellinzona empfangen. Das Treffen fand anlässlich der 4. Runde des strategischen Dialogs zwischen der Schweiz und China statt.

US-Präsident Donald Trump poltert heftig gegen China. Auf Truth Social zeigt er sich erzürnt über das chinesische Vorgehen in der Handelspolitik. Zudem lässt er wohl ein Treffen mit Staatschef Xi platzen.

Germany’s Andrés Ritter, currently a deputy at the European Public Prosecutor's Office, is the favourite from a four-person shortlist

Spain remains the lowest spender of the 32-member alliance

Hoekstra says EU at crossroads on tobacco taxation reform

The problem, however, goes beyond the levy itself: It could jeopardise the entire Commission budget plan

The US is “happy to sell, but we won’t have enough to sell, ultimately”, said the US ambassador to NATO

The West African nation's foreign minister asks if the decision led to the US suspending issuing visas.

Written by Clare Ferguson and Katarzyna Sochacka.

Parliament’s first October plenary session featured a formal address by Jens-Frederik Nielsen, Prime Minister of Greenland. Members discussed the European Union’s relations with countries outside the Union in various debates, including on the EU’s role in supporting peace efforts for Gaza and a two-state solution; a united EU response to Russian violation of EU Member States’ airspace; an EU strategy to face Iran’s nuclear threat and on EU sanctions; the situation in Afghanistan; and the Second World Summit for Social Development. Members also considered and rejected two motions of censure of the Commission. A debate addressed rising antisemitism in Europe. Members also debated intergenerational fairness; completing the single market; and promoting EU digital rules. Finally, a debate marked World Mental Health Day (10 October), and Members debated the public health risks exacerbated by global warming.

This is Europe debate

The October I 2025 session featured the first ‘This is Europe‘ debate of the current term, with the Prime Minister of Luxembourg, Luc Frieden.

Visa suspension mechanism

Many non-EU nationals can visit the Schengen area for 90 days without having to apply for a visa. To protect the system from abuse, the visa suspension mechanism allows the EU to temporarily end the visa exemption for citizens of certain countries for security reasons. A proposal to strengthen the mechanism has been on the table since 2023. Members held a debate and adopted the text agreed between Parliament’s Committee on Civil Liberties, Justice and Home Affairs (LIBE) and the Council, which emphasises the links between the EU’s external relations and the need to revise the visa suspension mechanism to cover, for instance, cases of state-sponsored instrumentalisation of migrants, investor-citizenship schemes and human rights violations.

Common agricultural policy simplification

Following a debate on the common agricultural policy (CAP), Members approved a report on the European Commission proposal to amend the current rules on payments to farmers, aimed at cutting red tape, one of the farming community’s key demands. Parliament’s Committee on Agriculture and Rural Development proposes the CAP simplification include more flexibility on environmental rules, easier access to crisis payments and increased support for small and medium-sized farms. The vote sets Parliament’s position for negotiations with the Council.

European works councils

Members debated and adopted a provisional agreement reached by Parliament’s negotiators on a revision of the European Works Councils Directive. European works councils represent workers employed by multinationals operating in at least two EU countries. The revision of the legislation aims at strengthening the enforcement of transnational information and consultation rights, excluding trivial issues and including stronger provisions on gender balance. Parliament has succeeded in including rules to ensure penalties will be dissuasive, effective and proportionate.

Amending budget No 2/2025

Members adopted amending budget No 2/2025, updating the revenue side of the current year’s EU budget. The report from Parliament’s Committee on Budgets (BUDG) endorsed the Council position on the Commission proposal to take revised revenue forecasts into account and notes the need for increased gross national income contributions from the Member States. The committee also reiterates that the EU must endeavour to find fresh funding streams for new EU policy priorities.

Inland waterway transport: River Information Services

Members adopted an agreed revision to the legislation ensuring safety and environmental protection on the EU’s inland waterways. Parliament’s Committee on Transport and Tourism (TRAN) reached an agreement with the Council that the revision should establish a single digital information platform, ensure harmonised reporting, introduce a feedback mechanism and update privacy and security requirements. The committee would, however, prefer that the scope of the revision of harmonised river information services apply only to waterways and ports that are part of a cross-border network.

Extension of the derogation for heavy-duty vehicles with zero emissions

The EU aims at reducing CO2 emissions from heavy-duty vehicles by 43 % by 2030, with higher targets to follow. However, as zero-emission heavy-duty vehicles remain expensive, EU law allows governments to encourage their use by granting reductions or exemptions to road charges for such vehicles. Members approved, under the urgent procedure, an extension of the derogation for heavy-duty vehicles with zero emissions to June 2031.

New strategic EU-India agenda

Members held a debate on Council and Commission statements on a joint communication, which lays out the path for negotiations on a new strategic EU-India agenda, set for adoption at a bilateral summit in 2026. The debate covered progress on a free trade agreement, financial supervision arrangements and security and defence ties.

EU-Côte d’Ivoire Fisheries Partnership Agreement

Following a recommendation from Parliament’s Committee on Fisheries (PECH), Members granted Parliament’s consent for the conclusion of a new protocol covering the EU’s fisheries agreement with Côte d’Ivoire. The protocol sets opportunities for EU vessels from Spain, France and Portugal to fish for tuna in Côte d’Ivoire’s waters, in exchange for a financial contribution to the country’s sustainable fisheries sector.

Opening of trilogue negotiations

Four decisions to enter into interinstitutional negotiations, from: the Employment and Social Affairs (EMPL) and Internal Market and Consumer Protection (IMCO) Committees on the public interface connected to the Internal Market Information System for the declaration of posting of workers; from the EMPL committee on improving and enforcing working conditions of trainees and combating regular employment relationships disguised as traineeships (‘Traineeships Directive’); from the IMCO committee on market availability of measuring instruments: electric vehicle supply equipment, compressed gas dispensers, and electricity, gas and thermal energy meters; and from the Industry, Research and Energy (ITRE) Committee on incentivising defence-related investments in the EU budget to implement the ReArm Europe Plan were approved without a vote.

Read this ‘at a glance’ note on ‘Plenary round-up – October I 2025‘ in the Think Tank pages of the European Parliament.

Slovenia's health minister is driving a pivot to measuring health outcomes to strengthen resilience, and improve patient trust, while expanding access to medicines and clinical research

Up to now 'AI Factory' sites have rarely included former Eastern bloc Communist countries – but Czechia, Lithuania, Poland, and Romania are among the new sites

Written by Andrés García Higuera.

When asked how many microcontrollers they have on their desk, most people would only consider the one in their laptop, whereas in fact, a laptop alone contains several. Besides the microprocessor hosting the Control Processing Unit (CPU), which is not a microcontroller properly speaking, microcontrollers govern laptop functions such as communications, drivers, the power supply, touchpad and screen. There may also be another microcontroller (or several) in their smartphone, plus those in their landline phone, watch, earphones, mouse, calendar, thermometer, printer, chargers, external screen – and even in the coffee machine and the desk lamp. Microelectronics technology is everywhere: it includes semiconductors and components, but is far broader than that. It ranges from the control units for cars, planes and drones to small appliances, medical equipment or mobile phones, reaching over US$600 billion in revenue, up by 19.7 % year-on-year, excluding software development for artificial intelligence (AI).

The microelectronics industry is a strategic asset for Europe, which the European Commission ranks as one of the most research and development (R&D) intensive sectors. The sector supports around 200 000 jobs directly and more than 1 000 000 indirect jobs in Europe. However, the EU share in global chip capacity has decreased from 13 % in 2010 to 7‑8 % in 2025. This can be attributed to factors such as growing manufacturing costs – including energy – and low public investment in the required R&D to deploy the complex supply chain and to support initial investment in manufacturing equipment.

The major manufacturers of semiconductor chips are based in the USA (Intel, Micron), Taiwan (TSMC) and South Korea (Samsung, SK Hynix), and most designers (or Fabless semiconductor companies) are also based in the USA (NVIDIA, AMD). Nevertheless, the EU has traditionally been at the forefront of the global semiconductor value chain, holding specific know-how, such as in the production of equipment for manufacturing semiconductors (e.g. ASML in the Netherlands). Furthermore, and although they are decreasing and insufficiently widespread, Europe retains the basic skills for non-advanced everyday (but highly strategic) versions of microelectronics technology.

Potential impacts and developments

Microelectronic components are complete miniaturised circuits composed of standard electronic parts, such as transistors, capacitors, diodes, and resistors, which operate at microscopic scale. These circuits are designed to perform specific functions and, therefore, are closely linked to optimisation in the assembly of new products and devices. Modern versions of technological products rely on microelectronics technology to the extent that no product can compete in the market today without it, which risks excluding the small and medium-sized enterprises that are – and will remain – vital to the EU and usually lack the required skills and resources. This is not always about the newest technologies and the highest levels of integration for big production series, it is also about everyday components in a broad variety of industrial sectors. The competitive advantage of already strong microelectronic players has become overwhelming.

According to the European Semiconductor Industry Association (ESIA), in the EU this sector has a multiplier effect of around 2.5 (meaning that every euro invested in the industry generates an additional €2.5 in economic activity), whereas this same factor is 4.3 in the USA and 3.5 in China. Microelectronics accounts for around 1.4 % to 1.6 % of the EU’s GDP (€230 billion to €250 billion), 2.2 % to 2.5 % of the USA’s GDP (€380 billion to €440 billion) and 2.5 % to 3.0 % of China’s GDP (€390 billion to €480 billion).

Strategic sectors such as the automotive industry, AI, telecommunications and defence are fast evolving to models that are ever more dependent on microelectronics to provide new functionalities, which are becoming key market assets. The European Chips Act entered into force on 21 September 2023, together with the Critical Raw Materials Act; they have become key pillars for EU open strategic autonomy, setting a reliable foundation for a competitive EU.

Anticipatory policymaking

While addressing competitiveness in her 2025 State of the Union speech, European Commission President Ursula von der Leyen stressed the need to ‘keep up the speed’. The Commission will therefore ‘propose an industrial accelerator act for key strategic sectors and technologies’. Von der Leyen concluded that, ‘when it comes to digital and clean tech’, the EU aims to be ‘faster, smarter and more European’. However, and although she particularly referred to critical raw materials and this was implicit in her speech, she did not specifically mention microelectronics or semiconductors. However, they are fundamental to achieving the proposed goals of a competitive knowledge economy and enhanced defence capacity.

Pillar I of the European Chips Act establishes the chips for Europe initiative, which will support technological capacity building and innovation in the Union by bridging the gap between the Union’s advanced research and innovation capabilities and their industrial (and dual-use) exploitation. Horizon Europe allocates significant funding for R&D in the microelectronics sector, while the Chips Joint Undertaking (Chips JU) aims to support its development. Related technologies such as the internet of things, edge computing and AI benefit from complementary initiatives such as smart anything everywhere (SAE) and the European processor initiative (EPI). The EU is addressing the skills shortage through programmes such as the digital education action plan and the more specific large-scale partnership (LSP) in microelectronics, which promotes specialised training. Additionally, the Important Project of Common European Interest (IPCEI) in microelectronics allows EU Member States to support related projects with State aid, and initiatives such as Eurostack aim to improve the EU’s strategic autonomy.

While the Chips Act is a definite step forward, the strong strategic aspect of this sector requires continued monitoring and sustained action. Policymakers and industry leaders can work together to promote public and private investment and the development of a sustainable business environment suitable for the microelectronics industry, including to support the development of skills, talent, innovation and risk-taking that will bolster European prosperity and security.

Read this ‘at a glance’ note on ‘What if the EU ran on microelectronics?‘ in the Think Tank pages of the European Parliament.

Desire Moyo died a day before his 46th birthday - the four other MPs in the car have been taken to hospital.

The Jutland Declaration, an online child safeguarding initiative driven by the Danish Presidency, was signed by all EU countries except Belgium and Estonia

Committee and political group meetings

Source : © European Union, 2025 - EP

The UK's competition watchdog has confirmed that the two Google businesses will be subject to 'pro-competition' digital markets rules