Brussels is trying to avoid a new digital clash with the United States

Brussels is trying to avoid a new digital clash with the United States

Next, the newsletter of Europa Today which every Monday morning tells you what will happen in the European week

Top of the agenda

The new telecommunications framework – After the Digital Services Act and the Digital Markets Act, the Digital Networks Act is the last piece of the puzzle of European digital legislation that the European Commission is ready to present on Tuesday 20 January. A proposal that aims to harmonize the allocation of radio spectrum in the 27 member countries and reduce regulatory burdens for telecommunications companies.

What it should include – According to latest drafts of the Regulation, the Commission should establish the duration of radio spectrum licenses, the conditions for the sale of frequencies and a pricing methodology to guide national regulatory authorities during radio spectrum auctions. There should also be guidance for national regulatory authorities on the development of fiber optic infrastructure and the possibility for national governments to extend the deadline for replacing copper networks with fiber optic infrastructure beyond 2030.

The Big Tech hub – At the center of the issue, however, is the issue of the contribution to network costs. Europe’s large telecoms operators argue that services that generate more traffic should contribute more directly to infrastructure costs. The goal would be not only to tighten the grip on Chinese suppliers such as Huawei and ZTE, but also to expand Brussels’ regulatory influence in telecommunications matters over Big Tech and US satellite operators, including Elon Musk’s SpaceX.

Tensions with Washington – Since Trump’s return to the White House, Washington has unleashed a violent diplomatic offensive against Brussels to review all digital legislation which is considered by the US administration to be punitive towards overseas companies and as a “non-tariff” barrier to trade. The Commission has not taken any steps backwards, but has relaunched the right to prosecute any technology company – US or otherwise – that does not comply with EU legislation. In September 2025 Google was fined a record amount of 2.95 billion euros for abusing its dominant position in the online advertising market, while it was launched in November an investigation into whether Google is unfairly downgrading news stories in search results.

Water on the fire – According to leaked drafts, the Digital Networks Act appears to be designed to avoid reopening a new front of diplomatic conflict with Washington. Big Tech like Alphabet Google, Meta, Netflix, Microsoft and Amazon would not fall under a mandatory but cooperative regime, through a code of best practice on technical issues – network resilience, traffic patterns, coordination during incidents – and a voluntary framework that would not create rigid obligations or sanctions for non-compliance.

Storm ahead – Once the Commission’s proposal has been published, the ordinary legislative procedure will begin which will only end with the entry into force of the Digital Networks Act. In the coming months, Parliament and the member states within the Council of the EU will start negotiations within each institution, before the inter-institutional ones, with a whole series of amendments. It is likely that, whatever the final wording of the Commission’s proposal, the extent of the obligations imposed on large digital companies – particularly US ones – will enter the cauldron of the most controversial issues under consideration by the co-legislators. The only certainty is that the Trump administration will not reduce its pressure against European digital policy.

Brussels opens investigation into Google: “It downgrades the media in search results”

Other hot topics

We go to Davos – In the large audience of heads of state and government from all over the world – from Trump to Zelensky, from Meloni to Merz, up to Milei, Macron, Herzog and Sánchez – the president of the European Commission, Ursula von der Leyen, will also be among the guests of the annual conference of the World Economic Forum in Davos. The number one of the EU executive will give a speech on the topic “How can we cooperate in an increasingly divided world?” Tuesday 20 January. In addition to President von der Leyen, Commissioners Roxana Mînzatu (20 January), Ekaterina Zaharieva (21 January), Apostolos Tzitzikōstas, Jessika Roswall and Henna Virkkunen (22 January) will also participate for the Commission. The President of the European Central Bank, Christine Lagarde, will participate in several sessions between Tuesday 20 and Friday 23 January.

Cybersecurity review – Due to the surprise adoption of the proposal for the 90 billion euro loan for Ukraine on January 14th, the review of the Cybersecurity Act – the regulation that in 2019 established a European certification framework for cybersecurity and to address digital attacks across the EU – has been postponed to Tuesday January 20th. The proposed revision should accelerate the implementation of the EU certification system also for cloud services, 5G, digital identity wallets and managed security services, and respond to the growing responsibilities of the European Union Agency for Cybersecurity (Enisa).

Anti-racism strategy – Also postponed by a week compared to the plans communicated by the Commission, the new strategy against racism is expected on the same day, which will replace the 2020-2025 action plan. The strategy should count on the support of civil society organisations, EU agencies and Equinet (the European network of equality bodies) to address racism towards various minority groups in the EU in all its manifestations with new – non-legislative – initiatives.

The Eurogroup is back with two new features – The first meeting of the Eurogroup of 2026 – the formation that brings together the finance ministers of the 21 EU member states that adopt the euro – will be held on Monday 19 January, with two important innovations. The first is the new president, the Greek Kyriakos Pierrakakis, elected at the last meeting in December 2025 after the departure of the Irishman Paschal Donohoe. The second is the twenty-first member, Bulgaria, which adopted the common currency from 1 January 2026. Precisely the enlargement of the euro area in Sofia will open the Eurogroup session, with the update of the state of progress. Candidates for the position of Vice-President of the European Central Bank will also be discussed in view of the Council recommendation.

Bulgaria adopts the euro, citizens worry: “There will be an increase in prices”

Between the European semester and Pnrr – Economy and finance ministers will meet on Tuesday 20 January for the first Ecofin Council of 2026. The ministers’ agenda includes the conclusions on the 2026 European Semester Alert Mechanism report, the implementing decisions approving the amended Recovery and Resilience Plans (NRRPs) submitted by Member States, and a discussion on the economic and financial impact of the Russian invasion of Ukraine.

From the European Parliament

The European Parliament meets for the first plenary session of the year in Strasbourg,

The House is ready to go to war with Donald Trump’s United States, and has decided that it will freeze the ratification of the tariff agreement which, with great difficulty, was reached last year. Initially, the idea of ​​freezing approval as a form of pressure on Trump was feared by the left, socialists and the Greens, but it did not enthuse the other popular and liberal partners of the majority, who considered it too strong a move. But the US president’s decision to impose new duties on countries that have decided to symbolically send soldiers to Greenland has infuriated everyone.

The fourth motion of no confidence against the President of the Commission Ursula von der Leyen is also being voted on in Strasbourg, an attempt to bring down the executive which is, however, doomed to failure. The Plenary also votes on updating the regulation on flight passenger rights, a measure that will have important consequences on the rights of those traveling in Europe.
Read the full agenda of the European Parliament plenary here.

Royal corner

Royal Cornerthe newsletter that every two weeks tells you the most important news on the European Union’s regional and cohesion policy

In the new year, Cyprus took over the rotating presidency of the EU for the second time, with the world very different from the last time, in 2012. Taking the baton from Denmark, for six months Cypriots will chair ministerial meetings and try to mediate frictions between member countries. The priorities were presented by President Nikos Christodoulides on 21 December, with a declared objective: an EU “that can be strong, stable and secure”. The Cypriot presidency focuses on five pillars, from security to competitiveness, up to fiscal balance, but the common thread is the motto chosen by Nicosia: “An autonomous Union. Open to the world”.

The 2028-2034 budget issue

The dossier destined to weigh the most, however, is the EU’s next long-term budget for 2028-2034. The first draft was set up under the Danish presidency, now leaving Cyprus with the task of advancing a political compromise on a chapter that applies to practically everything: from agricultural subsidies to cohesion funds, from infrastructure to external programs. European Council President Antonio Costa is aiming for an agreement by the end of 2026, arguing that the timing is crucial to avoid gaps between one financing cycle and another. Nicosia’s objective is to reach at least a negotiating position by the end of June, when the presidency’s semester ends.

The Single Fund is in the sights

The most controversial point remains the European Commission’s proposal to merge agricultural funds and funds for the regions into a “single fund” managed by the 27 capitals. It is a change of philosophy: in the current model, cohesion policy is built on shared governance, with a central role of the regions in planning and implementation. The idea of ​​the single fund has already met with strong resistance in the European Parliament, because it risks transforming a common policy into 27 national policies, with knock-on effects on objectives, controls and territorial priorities. In essence: less Europe in the rules and more discretion at the national level, precisely at the moment in which Brussels asks that cohesion remain a strategic tool for economic and social convergence.

Read the other news from the Regio Corner