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Dispatch from Brussels: Updates on EU Tech Policy

12 June 20265 min read
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Dispatch from Brussels: Updates on EU Tech Policy

Welcome to the latest edition of Dispatch from Brussels, techUK's bi-monthly update on the European policy developments shaping the operating environment for UK technology companies. 

EU launches European Technological Sovereignty Package 

On 3 June, the European Commission unveiled its long-awaited European Technological Sovereignty Package, marking a significant shift in the EU's approach to digital policy. While much of the last five years has focused on regulation, the Commission is now turning its attention to building European technological capacity and capability. 

The package consists of four key elements: 

  • The Cloud and AI Development Act (CADA) 

  • A revised European Chips Act 

  • An EU Open Source Strategy 

  • A Strategic Roadmap for Digitalisation and AI in Energy 

Together, these initiatives aim to strengthen Europe's position across cloud infrastructure, AI, semiconductors and other strategic technologies. 

For cloud providers, the proposals could introduce new compliance requirements and procurement conditions that may affect access to public sector opportunities across the EU. These changes could also have implications for AI developers, software providers and digital service companies that rely on cloud infrastructure. At the same time, increased public investment could create opportunities for infrastructure providers, semiconductor companies and advanced manufacturing firms. 

For UK firms, much will depend on how the Commission and Member States interpret any location, ownership or control requirements contained within the package. techUK will be engaging actively in both Brussels and London to ensure the UK is recognised as a trusted partner and that UK companies continue to enjoy fair access to European technology markets. Excluding UK firms would ultimately weaken the competitiveness and capability of both the European and UK technology sectors. 

The legislative process is only just beginning and significant changes are likely as negotiations progress through the Council and European Parliament. techUK will continue to monitor developments closely and advocate for outcomes that avoid unintended consequences for UK businesses. 

You can read our full analysis of the package on the techUK website. 

UK-EU reset summit still awaits a breakthrough 

Despite political momentum behind closer UK-EU cooperation, uncertainty remains around the timing and scope of the Government's proposed reset summit with the European Union. 

The summit has been the subject of considerable speculation in recent weeks as both sides attempt to agree what can realistically be delivered. With the summer calendar rapidly filling up, the window for a July summit is becoming increasingly narrow. 

Reports suggest that the EU has ruled out proposals resembling participation in the Single Market for goods. While agreement appears likely in areas such as sanitary and phytosanitary measures and closer cooperation on emissions trading schemes, youth mobility remains a politically sensitive issue and a significant sticking point in negotiations. 

Alongside these discussions, UK Technology Secretary Peter Kyle has called for the creation of a dedicated UK-EU technology partnership, modelled on the UK's recently agreed Tech Prosperity Deal with the United States. Such a framework could provide a practical mechanism for cooperation on AI, digital infrastructure, cybersecurity, research and emerging technologies. 

For the technology sector, the outcome of these discussions matters because they will help determine the overall direction of the UK-EU relationship at a time when both sides are increasingly focused on economic security, competitiveness and technological resilience. 

Ireland sets out its digital agenda 

Ireland has unveiled the priorities for its upcoming Presidency of the Council of the European Union, placing competitiveness, values and security at the heart of its programme. 

For technology companies, the programme offers an early indication of where EU digital policy discussions are likely to focus through the first half of 2027. 

The Irish Presidency has identified cloud infrastructure, AI capability, connectivity and digital networks as key priorities. Particular attention will be paid to investment in digital infrastructure and the security and resilience of subsea cable networks, an issue of particular relevance for Ireland given its role as a major connectivity hub between Europe and North America. 

Ireland has also signaled its intention to advance work on the Commission's broader competitiveness agenda. This includes seeking progress on spectrum policy and aiming to conclude negotiations with the European Parliament on the Digital Omnibus package before the end of its Presidency, provided Member States can first agree a common position under the current Cypriot Presidency. 

Several major digital policy events are already scheduled, including: 

  • An Online Safety for Children Conference in Dublin (10–11 September) 

  • An Informal Meeting of EU Digital Ministers in Limerick (12–13 October) 

  • An AI Summit in Dublin (14 October) 

  • A Conference on the Digitalisation of Justice in Dublin (29–30 October) 

Given the number of major digital files expected to move through the legislative process during this period, Ireland is likely to play a significant role in shaping the EU's next phase of digital policymaking. 

New leadership at DG Trade 

On 1 June, Ditte Juul Jørgensen formally took up her position as Director-General of the European Commission's Directorate-General for Trade and Economic Security, succeeding Sabine Weyand after seven years at the helm of DG Trade. 

Ditte Juul Jørgensen brings extensive experience to the role. Most recently she served as Director-General of DG Energy, while previously leading the Cabinet of former Executive Vice-President Margrethe Vestager. Earlier in her career she spent nearly a decade within DG Trade itself, ultimately serving as Director for Legal Affairs and Trade in Goods. 

Her appointment comes at a particularly important moment for European trade policy, as trade, technology and economic security become increasingly intertwined. 

In a LinkedIn post marking her first week back at DG Trade, Juul Jørgensen highlighted meetings with Member States, the European Parliament, trade stakeholders and international partners. She also outlined several priorities that are likely to shape the Commission's approach in the years ahead, including: 

  • Strengthening Europe's economic security framework 

  • Advancing diversification through trade agreements and partnerships 

  • Managing increasingly complex relationships with both the United States and China 

  • Supporting reform of the global trading system to reflect evolving geo-economic realities 

For technology businesses, her appointment is particularly noteworthy given the growing overlap between trade policy and issues such as cloud services, AI, semiconductors, data flows, investment screening and economic security. As the EU continues to develop its technological sovereignty agenda, DG Trade will remain a critical institution shaping the external dimension of European technology policy.