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What the Commission proposes

The European Commission proposes the Cloud and AI Development Act to establish a framework of measures aimed at strengthening Europe's cloud and artificial intelligence ecosystem. The initiative focuses on three pillars, which include research and innovation for greening infrastructure, industrial investments to triple EU data processing capacity, and actions to increase secure data processing capacities for cloud providers in the EU. Ultimately, the proposal seeks to address infrastructure gaps, reduce critical dependencies on non-European providers, and enhance the Union's digital sovereignty and competitiveness.

• Addresses the EU gap in cloud and AI infrastructure capacity through three distinct pillars.
• Promotes research and innovation to accelerate sustainable cloud and AI computing technologies.
• Aims to triple the EU data processing capacity over the next 5 to 7 years via industrial investments.
• Introduces measures to increase secure data processing capacities for high-critical use cases.
• Establishes common criteria for sovereign cloud computing services to reduce extraterritorial dependencies.
• Promotes open-source solutions and joint public procurement activities across the public sector.

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1. EN 53 EN initiatives providing highly trusted and secure public sector cloud capabilities and facilitate the sharing of such capabilities between Union entities and public sector bodies. This should be done via a platform accessible to all Federation Members - the EuroCloud Platform. the European public sector cloud federation Impact of the requirement(s) as per digital public service on cross-border interoperability Union repository of recognised sovereign services Assessment Measure(s) Potential remaining barriers (if applicable) Alignment with existing digital and sectorial policies Please list the applicable digital and sectorial policies identified The implementation of the Union repository of recognised sovereign services will take utmost account of existing policies and the building blocks stemming from them.

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 127 (EN)

2. 50 5.2.3. Relationship between policy options and policy measures Table 7. Overview of the Policy Options and links with the Problems, Problem Drivers, and Specific Objectives Problem driver(s) Problem Policy Option Policy Measures Specific objectives* PD1 PD2 SO1 SO2  P1: Limited and geographically concentrated availability of computing capacity in the EU 1A: Enhancing the existing collaborative framework PM1: Expanding the Alliance for Industrial Data, Edge and Cloud with a workgroup on data centres and extending membership to relevant players    PM2: Creating a forum for exchanges between relevant public and private stakeholders involved in the buildout of data centres    PM3: Adopting guidelines on building sustainable data centres in the EU     1B: Legislative and financial intervention enforced nationally PM4: National facilitator for data centre projects

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3. 194 Specific objective Legislation or policy initiative Gap with regards to specific objective / relationship with the cloud and AI Development Act (“this initiative”) etc.). This initiative will leverage the newly created approach to simplified and digitised permitting by cross-referencing the IAA. The IAA will require Member States to designate at least one manufacturing industrial acceleration area/cluster where further business facilitation measures apply (prioritised access to materials, access to EU finance, regulatory sandboxes etc.). However, these areas won’t account for the specific needs of data centres, which are a services sector. While data centres consume a lot of energy, a characteristic they share with other more traditional industries, they present several fundamental differences.

   COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT REPORT..., page 194 (EN)

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What the Commission proposes

The European Commission has published an impact assessment and legislative review concerning Directive 2003/87/EC and Decision (EU) 2015/1814 on the EU Emissions Trading System (EU ETS) and the Market Stability Reserve. This initiative serves as the first part of a broad post-2030 framework package aimed at driving competitiveness and cost-effective decarbonisation. It evaluates how stationary installations, aviation, and maritime sectors can deliver necessary emission reductions while ensuring carbon leakage protection and orderly market functioning. The review addresses the shrinking supply of allowances and adapts the system to align with intermediate 2040 targets and 2050 climate neutrality goals.

• Reviews the EU ETS and the Market Stability Reserve to prepare for post-2030 climate targets.
• Assesses pathways toward the 2050 climate neutrality goal and the intermediate 2040 target.
• Focuses on industrial sectors, maritime transport, and aviation to ensure cost-effective decarbonisation.
• Examines carbon leakage protection, free allocation benchmarks, and the funding transition through EU revenues.
• Analyzes market functioning and allowance supply adjustments to prevent trading frictions and price volatility.
• Accompanies related proposals simplifying monitoring, reporting, and verification regulations.

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1. Additionally, the Commission established the “auction as a service” and the “grants as a service” mechanism, which enables Member States to use their national budget resources to award support to projects (including maritime) located on their territory, while leveraging on the EU-wide competition and Innovation Fund evaluation and selection mechanism to identify the most competitive projects. Summary of stakeholder views from the OPC 315 European Commission: European Climate, Infrastructure and Environment Executive Agency, Driving decarbonisation in mobility through the Innovation Fund, Digital publications, 5 November 2025.

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2. In addition, targeted interviews were conducted and the Commission participated in multiple (virtual) bilateral and multilateral stakeholder meetings and conferences to discuss the revision of the EU ETS, including with companies and business associations across different sectors, trade unions, non-governmental organisations and public authorities of Member States. To support the revision in relation to maritime-related topics, a joint meeting of the European Sustainable Shipping Forum sub-group on the implementation of MRV and ETS Maritime (ESSF) and the Climate Change Expert Group (CCEG Maritime) 29 The details of the public consultation can be found at: EU emissions trading system for maritime, aviation and stationary installations, and market stability reserve - review.

   Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE..., page 13 (EN)

3. EN 10 EN contracts for difference, as part of a broader objective to mobilise EUR 100 billion for industrial decarbonisation. This proposal also extends the Innovation Fund and the Modernisation Fund. Endowed with 200 million allowances, the Innovation Fund will support innovative industrial technologies for industry and clean-tech manufacturing. The Modernisation Fund will channel the revenues resulting from the auctioning of 2,5% of the Art. 9 cap to lower-income Member States to modernise energy infrastructure, expand renewables, strengthen grids, improve energy efficiency, and support technologies such as carbon capture and storage (CCS). 2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY • Legal basis Articles 191, 192 and 193 of the Treaty on the Functioning of the European Union empower the EU to act to preserve, protect and improve the quality of the environment;

   Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE..., page 11 (EN)

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What the Commission proposes

The European Commission proposes a revision of EU public procurement rules through a new regulation that repeals the existing 2014 directives on public procurement, utilities, and concessions. The initiative aims to modernize and simplify rules, reduce administrative burdens, and enable preferences for European products in strategic sectors to secure supply chains and add EU value. It also amends multiple sector-specific regulations and directives containing procurement provisions to improve coherence and transparency. Furthermore, the proposal addresses high administrative burdens and legal uncertainty identified in previous evaluations regarding public buyers and businesses.

• Revises and replaces Directives 2014/23/EU, 2014/24/EU, and 2014/25/EU with a single Public Procurement Act regulation.
• Enables preference for European products in strategic sectors to ensure security of supply and EU added value.
• Aims to modernize and simplify rules, specifically considering EU start-ups and innovators.
• Amends various sector-specific regulations and directives that contain public procurement provisions.
• Addresses administrative burdens and legal uncertainty that currently affect public buyers and businesses, including SMEs.

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1. • Defence, security, and critical infrastructure • Energy, including grids, storage, and key renewables components • Health and pharmaceuticals • Digital and data infrastructures, such as cloud, semiconductors, and AI-enabling hardware • Transport and mobility systems • Food procurement, especially sustainable and locally sourced food • Construction and building materials, such as green steel and low-carbon cement • Circular economy and waste management, including advanced recycling technologies • Strategic supplies and services, such as telecommunications and IT • Sectors related to safety and defence, public transport, and critical infrastructure • Personal and financial data, utilities such as electricity, water, and gas Some respondents emphasized the importance of promoting European sovereignty and independence in strategic sectors, while others highlighted the need to support the

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2. EN 1 EN ANNEX I Central government authorities (1) BELGIUM (a) Services publics fédéraux (Ministries) - Federale Overheidsdiensten (Ministries): (a) SPF Chancellerie du Premier Ministre - FOD Kanselarij van de Eerste Minister; (b) SPF Personnel et Organisation - FOD Kanselarij Personeel en Organisatie; (c) SPF Budget et Contrôle de la Gestion - FOD Budget en Beheerscontrole; (d) SPF Technologie de l’Information et de la Communication (Fedict) - FOD Informatie- en Communicatietechnologie (Fedict); (e) SPF Affaires étrangères, Commerce extérieur et Coopération au Développement - FOD Buitenlandse Zaken, Buitenlandse Handel en Ontwikkelingssamenwerking; (f) SPF Intérieur - FOD Binnenlandse Zaken; (g) SPF Finances - FOD Financiën; (h) SPF Mobilité et Transports - FOD Mobiliteit en Vervoer; (i) SPF Emploi, Travail et Concertation sociale - FOD Werkgelegenheid, Arbeid en sociaal overleg;

   ANNEXES to the REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 2 (EN)

3. EN 50 EN (a) Danshögskolan; (b) Datainspektionen; (c) Departementen; (d) Domstolsverket; (e) Dramatiska institutet; E: (a) Ekeskolan; (b) Ekobrottsmyndigheten; (c) Ekonomistyrningsverket; (d) Ekonomiska rådet; (e) Elsäkerhetsverket; (f) Energimarknadsinspektionen; (g) Energimyndighet, statens; (h) EU/FoU-rådet; (i) Exportkreditnämnden; (j) Exportråd, Sveriges; F: (a) Fastighetsmäklarnämnden; (b) Fastighetsverk, statens; (c) Fideikommissnämnden; (d) Finansinspektionen; (e) Finanspolitiska rådet; (f) Finsk-svenska gränsälvskommissionen; (g) Fiskeriverket; (h) Flygmedicincentrum; (i) Folkhälsoinstitut, statens; (j) Fonden för fukt- och mögelskador; (k) Forskningsrådet för miljö, areella näringar och samhällsbyggande, Formas; (l) Folke Bernadotte Akademin; (m) Forskarskattenämnden; (n) Forskningsrådet för arbetsliv och socialvetenskap; (o) FortifikationsverketForum för levande historia;

   ANNEXES to the REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 51 (EN)

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What the Commission proposes

The European Commission is conducting a review of the scope, functioning, and efficiency of Regulation (EU) 2022/1031 on the International Procurement Instrument (IPI). The review evaluates the implementation of the regulation, including investigation processes, consultations, thresholds, exceptions, and the first adopted IPI measure regarding medical devices from China. It aims to assess the instrument's effectiveness in tackling procurement barriers in non-EU countries and ensuring a level playing field for EU operators. The findings will be presented in a report to the European Parliament and the Council by August 2027.

• Review of the scope, functioning, and efficiency of the IPI Regulation pursuant to Article 14.
• Assessment of investigation procedures, third-country consultations, thresholds, and types of measures.
• Evaluation of the application and implementation of the first IPI measure concerning Chinese medical devices.
• Analysis of the efficiency of online complaint tools and rules for determining origin.
• Execution of a 12-week online public consultation through the Have your say portal.
• Publication of a factual summary of consultation results and an implementation report to the European Parliament and the Council.

What is asked: Respondents are asked to provide views and evidence on the implementation, scope, functioning, and efficiency of the IPI Regulation in tackling non-EU procurement barriers, achieving market openness, and ensuring a level playing field, as well as the application of specific measures adopted under the Regulation.

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1. CALL FOR EVIDENCE FOR AN INITIATIVE This document aims to inform the public and stakeholders about the Commission’s work, so they can provide feedback and participate effectively in consultation activities. We ask these groups to provide views on the Commission’s understanding of the problem and possible solutions, and to give us any relevant information they may have. TITLE OF THE INITIATIVE International Procurement Instrument review LEAD DG - RESPONSIBLE UNIT Directorate-General for Trade & Economic Security - Unit B.3, Digital Trade, Intellectual Property and Public Procurement

   Report from the Commission to the European Parliament and to the..., page 1 (EN)

2. 4 We are consulting stakeholders to assess the implementation of the IPI Regulation in terms of: - the scope, functioning and efficiency of the Regulation in tackling non-EU countries procurement barriers, achieving openness of non-EU countries public procurement markets and ensuring a level playing field for EU businesses, goods, services and works; - implementation of specific measures adopted under the IPI Regulation. Target audience The target audience is composed of, in particular, interested parties affected by measures or practices in non-EU counties (e.g. businesses, business associations and cross-industry organisations), EU contracting authorities and EU contracting entities.

   Report from the Commission to the European Parliament and to the..., page 4 (EN)

3. 2 A. Political context, problem definition and subsidiarity check Political context The International Procurement Instrument Regulation (IPI Regulation), which entered into force on 29 August 2022, aims to improve reciprocal access to international procurement markets in areas not covered by international commitments under the Agreement on Government Procurement or bilateral free trade agreements. The IPI Regulation tackles procurement barriers in non-EU countries by empowering the European Commission to initiate investigations against alleged restrictions in third- country procurement markets and consult with the countries concerned to encourage market opening. If consultations do not lead to satisfactory results, the EU may restrict access to its procurement market for companies, goods and services from countries that continue applying restrictions to EU firms.

   Report from the Commission to the European Parliament and to the..., page 2 (EN)

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