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11. NATO's New Ambitions for Space

Author:
Béatrice Hainaut
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Ahead of Russia's invasion of Ukraine, a devastating cyber attack targets Ukrainian army communications, exposing Western dependence and vulnerability to space technologies, and calling NATO's defensive posture into question. The longevity of the organization, which celebrates its 75th anniversary in 2024, is partly due to its ability to adapt to the international context. The war in Ukraine has undoubtedly strengthened its legitimacy and attractiveness. The massive use of space applications in Ukraine raises the question of the role of the Atlantic Alliance in providing space data and services to its member states: it does not have its own space capabilities, but its deterrence posture includes space. By equipping itself with a solid documentary corpus, space-focused centers, and access to national capabilities, the Alliance seeks to implement its vision of space as a theater of operations. This theater of operations aims at the integration and interoperability of the space assets of the various member states. For now, these are primarily American capabilities. NATO's space ambition then poses to the states the question of mobilizing financial and human resources. Moreover, deeper cooperation between NATO and the EU could presumably allow for the pooling of efforts.
Topic:
NATO, Science and Technology, European Union, Cybersecurity, and Russia-Ukraine War
Political Geography:
Russia, Europe, North America, and Space

12. Who’s a national security risk? The changing transatlantic geopolitics of data transfers

Author:
Kenneth Propp
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The geopolitics of transatlantic data transfers have been unvarying for the past decade. European governments criticize the US National Security Agency (NSA) for exploiting personal data moving from Europe to the United States for commercial reasons. The US government responds, through a series of arrangements with the European Union, by providing assurances that NSA collection is not disproportionate, and that Europeans have legal avenues if they believe their data has been illegally used. Although the arrangements have not proven legally stable, on the whole they have sufficed to keep data flowing via subsea cables under the Atlantic Ocean. Now the locus of national security concerns about international data transfers has shifted from Brussels to Washington. The Biden administration and the US Congress, in a series of bold measures, are moving aggressively to interrupt certain cross-border data flows, notably to China and Russia. The geopolitics of international data flows remain largely unchanged in Europe, however. European data protection authorities have been mostly noncommittal about the prospect of Russian state surveillance collecting Europeans’ personal data. Decisions on whether to transfer European data to Russia and China remain in the hands of individual companies. Will Washington’s new focus on data transfers to authoritarian states have an impact in Europe? Will Europe continue to pay more attention to the surveillance activities of its liberal democratic allies, especially the United States? Is there a prospect of Europe and the United States aligning on the national security risks of transfers to authoritarian countries?
Topic:
National Security, Science and Technology, Cybersecurity, Geopolitics, Economy, and Digital Policy
Political Geography:
Europe, North America, and United States of America

13. Calling on the EU-US Trade and Technology Council: How to Deliver for the Planet and the Economy

Author:
Oscar Guinea, Vanika Sharma, Philipp Lamprecht, Dyuti Pandya, and Oscar du Roy
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
This Policy Brief proposes the establishment of an agreement on conformity assessment between the EU and the US that covers machinery and electrical equipment. The initiative aims to increase the number of European and US conformity assessment bodies authorized to test and certify EU and US machinery and electrical equipment for exports into each other’s markets, without recognizing the equivalency or otherwise altering the product requirements in regulation, standards, or other normative documents on either side. While this study focuses on the economic effects of an agreement on conformity assessment that includes machinery and electrical equipment, the scope of such an agreement could potentially be extended to several additional product categories, particularly those that are subject to requirements for mandatory third-party conformity assessment in both the EU and the US. The increase in the number of conformity assessment bodies is expected to reduce the costs and the time required to demonstrate conformity. If this policy succeeds as expected in achieving a reduction in trade costs between 2 and 6 percent, US exports to the EU are projected to increase between US$ 11 billion and US$ 32.5 billion while EU exports to the US are estimated to grow by between US$ 13.8 billion and US$ 42.2 billion. In percentage terms, US firms are anticipated to experience a larger increase in exports of machinery and electrical equipment than their EU counterparts. The increase in trade flows as a result of this agreement is estimated to be larger than the rise in trade flows achieved in other Free Trade Agreements signed by the EU or the US. Moreover, as an increasing number of EU regulations begin to mandate third-party conformity assessment, US firms will increasingly benefit from this agreement when exporting to the EU. Given China’s status as the largest supplier of machinery and electrical equipment to both the EU and the US, the implementation of an EU-US agreement on conformity assessment would not only improve conditions for transatlantic trade but also lead to reduced trade dependence for the EU and the US on China. The reduction in trade costs between the EU and the US on machinery and electrical equipment due to the agreement could lower Chinese exports to the EU and the US by between US$ 6.5 billion and US$ 19.4 billion. Importantly, machinery and electrical equipment are crucial inputs for some of the key technologies in which the EU and the US Administrations have identified trade dependencies on China. However, in contrast with other policies aimed at reducing reliance on Chinese imports, an agreement on conformity assessment for machinery and electrical equipment will not require public subsidies or impose any financial burden on taxpayers. This agreement also has the potential to benefit the environment. Machinery and electrical equipment are essential inputs for green technologies. Therefore, a reduction in the cost and time of conformity assessment in these industries will accelerate the adoption of green technologies. An agreement on conformity assessment between the EU and the US covering green goods and clean technologies could increase transatlantic exports between US$ 3.1 billion and US$ 9.2 billion. While this increase in exports is significant, broadening the scope of the agreement to include the entirety of machinery and electrical equipment, rather than just a subset, is projected to lead to trade effects eight times larger. Moreover, as green technologies rapidly evolve, an agreement on conformity assessment has the potential to serve as a dynamic instrument that evolves to accommodate future regulatory and economic developments on climate and the environment on both sides of the Atlantic.
Topic:
Science and Technology, European Union, Economy, and Trade
Political Geography:
Europe, North America, and United States of America

14. Economic arguments in favour of reducing copyright protection for generative AI inputs and outputs

Author:
Bertin Martens
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Generative artificial intelligence (GenAI) models have stirred considerable controversy about copyright protection for AI training inputs and model outputs. The European Union’s AI Act will require model developers to be transparent about their use of training inputs such as text, images and music. The EU Copyright Directive allows free text and data mining of these media inputs unless copyright holders have opted out and want license payments. The right to opt-out amounts to economically inefficient overprotection of copyright. Free use of media content for GenAI training does not affect media sales to consumers. Optouts only strengthen the bargaining position of copyright holders, who decide depending on their private interests. That generates windfall profits without any increase in consumer surplus or social welfare. The licensing of training inputs reduces the quantity of data and the quality of GenAI models, creates transaction costs and reduces competition between GenAI firms. This slows down GenAI-induced innovation in media products and production processes, and productivity gains in all service sectors that apply GenAI. Ultimately, it slows down economic growth compared to what it could be with competitive and high-quality GenAI. Bargaining over license pricing is arbitrary as there is no objective revenue benchmark to start from. Defenders of the moral right to remuneration argue that any arbitrary remuneration is better than no remuneration. But this private moral right comes at the expense of social welfare. The ongoing bargaining and court cases between media producers and GenAI developers risk entrenching this market failure in jurisprudence. Early regulatory intervention and elimination of opt-outs for GenAI training, or weakening them in AI Act implementation guidelines, would solve this. There is no need for copyright on GenAI outputs either. GenAI reduces the marginal cost of machine-production of media outputs to close to zero, on par with the marginal cost of reproduction. That eliminates incentives for piracy. Moreover, composite human-machine outputs benefit from a de-facto extension of copyright on the human component.
Topic:
Science and Technology, Intellectual Property/Copyright, European Union, Regulation, Economic Growth, and Artificial Intelligence
Political Geography:
Europe

15. EU technology resilience and autonomy

Author:
Flemming Splidsboel Hansen and Maria Mundt
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In the face of growing international competition between both individual states and coalitions of states, the European Union is developing a new approach towards technological resilience and autonomy.
Topic:
Science and Technology, European Union, Autonomy, Resilience, and International Competition
Political Geography:
Europe

16. Exploring the Application of AI in the Public Sector: The Case of Estonia and Lessons for Georgia

Author:
Salome Abramishvili
Publication Date:
08-2024
Content Type:
Commentary and Analysis
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
Artificial Intelligence (AI) is rapidly transforming societies globally, offering unprecedented opportunities across sectors. The integration of AI into the public sector promises enhanced service delivery, efficiency, and significant decision-making improvements. Nations worldwide recognize AI’s strategic importance and are adopting National AI Strategies (NASs) to guide its development and deployment. This paper explores AI’s evolution and impact in the public sector, focusing on applications and strategic frameworks using Estonia as an example—a pioneer in AI governance within the EU. Estonia’s approach serves as a model for Georgia, a country with post-Soviet roots and EU integration aspirations. By examining Estonia’s National AI Strategy and its implementation, this paper identifies key lessons and recommendations for Georgia to develop its tailored strategy.
Topic:
Science and Technology, Public Sector, and Artificial Intelligence
Political Geography:
Europe, Estonia, and Georgia

17. Toward Innovation-driven Growth: Innovation Systems and Policies in EU Member States of Central Eastern Europe

Author:
Alexandra Bykova, Viktrória Döme, Richard Grieveson, Francesca Guadagno, and Doris Hanzl-Weiss
Publication Date:
09-2024
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This study builds on our previous analyses of a new growth model for the EU member states of Central and Eastern European (CEE), focusing on fostering innovation-driven development. We aim to explain the types of innovation systems and policies that enhance domestic innovation capabilities, drawing on global best practices. A critical evaluation of the current innovation landscape in EU-CEE countries is conducted, particularly in the context of the green and digital transitions. The study assesses the strengths and weaknesses of both national innovation initiatives and opportunities provided by EU industrial and technology policy frameworks. Based on these insights, we offer actionable policy recommendations to promote innovation-driven growth, enhance productivity, and boost economic convergence over the medium term, taking into account the unique political and historical contexts of the EU-CEE countries. Additionally, we prepare country-specific briefing notes tailored to the individual development needs and opportunities of each nation.
Topic:
Development, International Trade and Finance, Science and Technology, Economic Growth, Innovation, Economic Competition, and Convergence
Political Geography:
Europe, Eastern Europe, and Central Europe

18. The EU and military AI governance: Forging value-based coalitions in an age of strategic competition

Author:
Katja Creutz, Ville Sinkkonen, Mahmoud Javadi, and Michal Onderco
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
The use of Artificial Intelligence (AI) has increased dramatically, driving discussion on the best way to govern it. While much of the discussion has focused on AI in the civilian domain, its usage in military applications raises distinct ethical and legal questions that actors increasingly seek to address. Governance initiatives are becoming more common, even though strategic competition between major powers remains a challenge. The EU navigates this governance landscape more hesitantly than in the civilian domain with its Artificial Intelligence Act (AIA). More information is needed regarding what kind of regulation, and especially with whom the Union could pursue such avenues. This paper seeks to address these questions by presenting and analyzing results from an expert survey conducted in autumn 2023 by researchers at Erasmus University Rotterdam. It argues that the EU needs to pursue a broad range of cooperation formats to advance its values and interests in the context of military AI. Strategic multilateralism is needed, especially with like-minded states that share values with the Union.
Topic:
Science and Technology, Governance, European Union, Artificial Intelligence, and Strategic Competition
Political Geography:
Europe

19. AI Unleashed or Tamed? Decoding Europe’s Bold Leap with the AI Act

Author:
Arianna Jater
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
2023 saw a boom in generative Artificial Intelligence (AI). However, such a rapid expansion revealed the unpreparedness of governments to handle the unprecedented impact AI systems have on the core values of democratic societies. The European Commission’s AI Act has emerged as the first binding legislation of its kind. It is already clear, however, that simply ratifying the Act will not solve the next challenges. Among those, the immediate one is to ensure that the new AI rulebook is enforced on the national level and that Member States have the resources necessary. Then, the Act, and any future AI legislation, will need to constantly adapt to the ever-changing developments in technology, which now seem to move at a faster pace than ever before. Interdisciplinary approaches and new research disciplines will be needed to analyse the correctness and safety of AI systems, as well as to evaluate their impact on society. Last but not least, the private sector — already employing or only exploring the possibility of introducing AI systems — will need strong support to remain compliant. This brief outlines the state of the EU’s AI Act, discusses concerns within Europe, examines the position taken by the Estonian technology sector and government, and explores the future direction the regulation might take.
Topic:
Science and Technology, European Union, Regulation, Legislation, Artificial Intelligence, Private Sector, and European Commission
Political Geography:
Europe and Estonia

20. Russia’s War in Ukraine: The Evolution of Grand Strategy

Author:
Leonid Polyakov
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
As Russia’s war in Ukraine enters its third year, we are publishing a second series of briefs on various aspects of the conflict. Many of the authors of these briefs are based in Ukraine. The war shows little sign of ending. Ukraine is fighting for its survival and is determined to drive Russia from its territory, while Russia continues to hope that it can mobilise sufficient resources to outlast the west’s support for Ukraine. Although there have been important developments at the tactical level—for example, in the increased use of drones by both sides, in Ukraine’s successes in diminishing Russia’s naval power and in its ability to strike targets inside Russia—there has been little movement on the front lines for many months. Both sides have been forced to adjust, operationally and strategically, to the prospects of a drawn-out conflict. In the second brief of the series, Leonid Polyakov observes that while Ukraine’s strategic objectives have remained the same throughout the war, the ways and means to achieve them have shifted. Surprise and mass have become less relevant, but technology must be mobilised through society-wide efforts if Ukraine is to prevail. Meanwhile, Ukraine’s longer-term security requires the construction of a credible deterrence posture.
Topic:
Defense Policy, Science and Technology, Grand Strategy, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine