Key facts
- The European Parliament will switch its default search engine to Qwant from Google starting June 4.
- This change affects 720 lawmakers and thousands of staff within the European Parliament.
- The EU is considering new legislation to require companies in sensitive sectors to diversify supply chains away from China to at least three sources.
- The EU plans to propose strict criteria for cloud computing services in state tenders, potentially excluding U.S. tech giants.
- China has rejected an OECD report detailing high government subsidies for its firms.
- 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 a U.S.-EU trade agreement with safeguards for steel and aluminum tariffs.
- A full parliamentary vote on the U.S.-EU trade agreement compromise is scheduled for June 16.
- Up to 1.3 million EU jobs are at risk due to surging energy prices linked to the Middle East war.
- The European Commission has advised Spain to decrease its dependence on gas-fired power plants for electricity grid stability.
The European Union is actively implementing measures to enhance its digital sovereignty and reduce dependencies on foreign technology and supply chains. A significant step in this direction is the European Parliament's decision to replace Google Search with Qwant, a privacy-focused European search engine, as its default starting June 4. This change affects approximately 720 lawmakers and thousands of staff, reflecting the EU's broader objective to decrease reliance on U.S. Big Tech companies and promote indigenous European technology alternatives. This move aligns with the EU's digital sovereignty goals and its ongoing efforts to address concerns regarding opaque algorithms, insufficient protection for minors, hate speech, and disinformation prevalent on U.S. and Chinese social media platforms. The EU is exploring its own distinct approach to social media, seeking alternatives to dominant foreign platforms.
Beyond digital initiatives, the EU is also contemplating new legislation to mandate companies in sensitive sectors to diversify their supply chains away from China. This proposed measure would require businesses to source from at least three different suppliers, aiming to shield them from disruptions and geopolitical policies. These efforts are part of a larger strategy to reduce reliance on China, amidst intensifying EU concerns over China's industrial policies, which have led to China rejecting an OECD report on its subsidies. EU and Chinese trade officials are scheduled to meet to discuss these trade tensions.
In parallel, the EU is proposing strict criteria for cloud computing services in state tenders, which could potentially exclude major U.S. tech giants such as Amazon, Microsoft, and Google. This initiative is designed to reduce Europe's dependence on U.S. technology and stimulate the growth of European businesses in the cloud sector. The EU is also preparing a €50 million ($58 million) economic support package for Armenia, announced by European Commission President Ursula von der Leyen, to support Prime Minister Nikol Pashinyan and counter Russian trade restrictions, which the EU characterizes as economic coercion. Furthermore, EU 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 slated for June 16.
The EU faces internal challenges as well, including balancing the burgeoning demand for data centers driven by the AI boom with its transition to carbon-free energy. Data centers are expected to align with environmental goals amidst rapid AI expansion. The European Commission has also advised Spain to decrease its reliance on gas-fired power plants for grid stability, recommending enhancements in grids, interconnections, and storage capacity. The bloc is also grappling with the economic impact of external conflicts, with up to 1.3 million EU jobs potentially at risk due to surging energy prices linked to the Middle East war, particularly affecting the automotive sector.