Key facts
- The European Parliament will switch its default search engine to Qwant starting June 4.
- This change affects 720 lawmakers and thousands of staff within the European Parliament.
- The EU plans to propose strict criteria for cloud computing services in state tenders.
- The EU is exploring alternatives to U.S. and Chinese social media platforms.
- China has rejected an OECD report on government subsidies for its firms.
- The EU is considering legislation to compel companies to diversify supply chains away from China.
- The EU is preparing a €50 million ($58 million) economic support package for Armenia.
- EU lawmakers on the International Trade Committee approved a compromise on the U.S.-EU trade agreement.
- Up to 1.3 million EU jobs are at risk due to surging energy prices linked to the Middle East war.
- The Japanese yen neared the 160.00 level against the dollar.
The European Union is implementing a series of measures aimed at enhancing its digital sovereignty and reducing dependence on major technology providers from the United States and China. A significant step involves the European Parliament's decision to replace Google Search with Qwant, a privacy-focused European alternative, as its default search engine. This change, effective from June 4, will affect approximately 720 lawmakers and thousands of staff, reflecting the EU's broader strategy to promote European technology and reduce reliance on U.S. Big Tech companies.
Further digital initiatives include proposed strict criteria for cloud computing services in state tenders, which could potentially exclude U.S. giants like Amazon, Microsoft, and Google, thereby aiming to foster European businesses in this sector. The EU is also actively exploring alternatives to U.S. and Chinese social media platforms due to concerns regarding opaque algorithms, inadequate protection for minors, hate speech, and disinformation. This exploration seeks to develop a distinct European approach to social media.
These digital policy shifts occur against a backdrop of broader geopolitical and economic considerations. The EU is also contemplating legislation to compel companies in sensitive sectors to diversify supply chains away from China, aiming for at least three sources, modeled on its strategy to reduce reliance on Russian energy. China has rejected an OECD report on its subsidies, labeling it "one-sided and arbitrary," amidst intensifying EU concerns over China's industrial policies, with trade officials from both sides scheduled to meet. The EU is preparing a €50 million ($58 million) economic support package for Armenia to counter Russian trade restrictions. Lawmakers on the International Trade Committee have approved a compromise on a U.S.-EU trade agreement, including safeguards for steel and aluminum tariffs, with a full parliamentary vote set for June 16. The EU faces challenges balancing the demand for data centers driven by the AI boom with its transition to carbon-free energy, requiring data centers to align with environmental goals. Additionally, the EU has advised Spain to reduce its reliance on gas-fired power plants for grid stability, recommending enhancements in grids, interconnections, and storage capacity. The bloc also faces potential job risks, with up to 1.3 million EU jobs at risk due to surging energy prices linked to the Middle East war, particularly impacting the automotive sector. The Japanese yen has also experienced volatility, nearing the 160.00 level against the dollar.