European Union Member States have approved a key reform of the Invest EU regulation, aimed at boosting investment and enhancing EU competitiveness. This move is expected to mobilise up to €50 billion in public and private investment to support strategic EU priorities, including the Competitiveness Compass, the Clean Industrial Deal, defence industries, and military mobility.
The proposal is part of the broader ‘Omnibus’ package introduced by the European Commission in February 2025 to streamline existing EU legislation in sustainability and investment.
The reform aims to make it easier for Member States to contribute to the programme through more attractive conditions in the national compartments and simplified administrative procedures. Notably, it reduces reporting burdens, especially for SMEs, making access to funding more efficient.
With the Council’s mandate now in place, negotiations with the European Parliament will begin to finalise the legislative changes. The goal is to reach a provisional agreement and activate new investment flows across Europe.
EU launches major AI Action plan in bid to boost industrial base
The European Commission has unveiled the AI Continent Action Plan, aimed at making the EU a global leader in artificial intelligence. President Ursula von der Leyen announced that the plan seeks to transform Europe’s industrial base and rich talent pool into a powerhouse of AI innovation.
The plan includes expanding AI computing infrastructure with 13 AI factories already in development and the upcoming launch of AI Gigafactories—large-scale facilities equipped with around 100,000 high-performance AI chips which will help train next-generation AI models and reinforce Europe’s strategic autonomy.
Access to high-quality data will be boosted through the creation of Data Labs and the upcoming Data Union Strategy, fostering a unified internal data market. A separate “Apply AI” strategy will support the adoption of AI in critical sectors, where uptake remains low at just 13.5% of businesses. AI Factories and Digital Innovation Hubs will assist in developing tailored solutions.
The plan also seeks to address Europe’s growing AI talent needs. Measures include international recruitment, AI fellowships, and the establishment of an AI Skills Academy to upskill workers and support future experts.
Stricter Toy Safety Rules to better protect children
The European Parliament and Council have reached a provisional agreement on new toy safety rules aimed at protecting children’s health and development. The legislation responds to growing concerns over hazardous chemicals and unsafe digital toys, as well as the rise of online shopping.
The new rules expand the list of banned substances in toys, adding endocrine disruptors, PFAS (so-called “forever chemicals”), and other harmful compounds. Toys for children under 36 months, or those intended to be placed in the mouth, will also be free of allergenic fragrances.
Manufacturers will be required to conduct comprehensive safety assessments before putting toys on the market. Special attention must also be given to digital features and potential effects on children’s mental well-being. To enhance transparency, all toys sold in the EU must now include a digital product passport, accessible via QR code, detailing compliance with safety regulations. This will aid customs checks, improve traceability, and give consumers clearer information.
Online marketplaces will need to adapt platforms to display CE markings, safety warnings, and DPP links before purchase. The new rules also clarify the responsibilities of manufacturers, importers, and fulfilment providers.
The agreement still requires formal approval by the Council and Parliament’s second reading to become law.
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