Today (16 December) the Commission and the High Representative of the Union for Foreign Affairs and Security Policy are presenting a new EU Cybersecurity Strategy. As a key component of Shaping Europe's Digital Future, the Recovery Plan for Europe and the EU Security Union Strategy, the Strategy will bolster Europe's collective resilience against cyber threats and help to ensure that all citizens and businesses can fully benefit from trustworthy and reliable services and digital tools. Whether it is the connected devices, the electricity grid, or the banks, planes, public administrations and hospitals Europeans use or frequent, they deserve to do so with the assurance that they will be shielded from cyber threats.
The new Cybersecurity Strategy also allows the EU to step up leadership on international norms and standards in cyberspace, and to strengthen cooperation with partners around the world to promote a global, open, stable and secure cyberspace, grounded in the rule of law, human rights, fundamental freedoms and democratic values. Furthermore, the Commission is making proposals to address both cyber and physical resilience of critical entities and networks: a Directive on measures for high common level of cybersecurity across the Union (revised NIS Directive or ‘NIS 2'), and a new Directive on the resilience of critical entities.
They cover a wide range of sectors and aim to address current and future online and offline risks, from cyberattacks to crime or natural disasters, in a coherent and complementary way. Trust and security at the heart of the EU Digital Decade The new Cybersecurity Strategy aims to safeguard a global and open Internet, while at the same time offering safeguards, not only to ensure security but also to protect European values and the fundamental rights of everyone.
Building upon the achievements of the past months and years, it contains concrete proposals for regulatory, investment and policy initiatives, in three areas of EU action: 1. Resilience, technological sovereignty and leadership
Under this strand of action the Commission proposes to reform the rules on the security of network and information systems, under a Directive on measures for high common level of cybersecurity across the Union (revised NIS Directive or ‘NIS 2'), in order to increase the level of cyber resilience of critical public and private sectors: hospitals, energy grids, railways, but also data centres, public administrations, research labs and manufacturing of critical medical devices and medicines, as well as other critical infrastructure and services, must remain impermeable, in an increasingly fastmoving and complex threat environment. The Commission also proposes to launch a network of Security Operations Centres across the EU, powered by artificial intelligence (AI), which will constitute a real ‘cybersecurity shield' for the EU, able to detect signs of a cyberattack early enough and to enable proactive action, before damage occurs. Additional measures will include dedicated support to small and medium-sized businesses (SMEs), under the Digital Innovation Hubs, as well as increased efforts to upskill the workforce, attract and retain the best cybersecurity talent and invest in research and innovation that is open, competitive and based on excellence.
2. Building operational capacity to prevent, deter and respond
The Commission is preparing, through a progressive and inclusive process with the member states, a new Joint Cyber Unit, to strengthen cooperation between EU bodies and member state authorities responsible for preventing, deterring and responding to cyber-attacks, including civilian, law enforcement, diplomatic and cyber defence communities. The High Representative puts forward proposals to strengthen the EU Cyber Diplomacy Toolbox to prevent, discourage, deter and respond effectively against malicious cyber activities, notably those affecting our critical infrastructure, supply chains, democratic institutions and processes. The EU will also aim to further enhance cyber defence cooperation and develop state-of-the-art cyber defence capabilities, building on the work of the European Defence Agency and encouraging Mmmber states to make full use of the Permanent Structured Cooperation and the European Defence Fund.
3. Advancing a global and open cyberspace through increased co-operation
The EU will step up work with international partners to strengthen the rules-based global order, promote international security and stability in cyberspace, and protect human rights and fundamental freedoms online. It will advance international norms and standards that reflect these EU core values, by working with its international partners in the United Nations and other relevant fora. The EU will further strengthen its EU Cyber Diplomacy Toolbox, and increase cyber capacity-building efforts to third countries by developing an EU External Cyber Capacity Building Agenda. Cyber dialogues with third countries, regional and international organizations as well as the multistakeholder community will be intensified.
The EU will also form an EU Cyber Diplomacy Network around the world to promote its vision of cyberspace. The EU is committed to supporting the new Cybersecurity Strategy with an unprecedented level of investment in the EU's digital transition over the next seven years, through the next long-term EU budget, notably the Digital Europe Programme and Horizon Europe, as well as the Recovery Plan for Europe. Member States are thus encouraged to make full use of the EU Recovery and Resilience Facility to boost cybersecurity and match EU-level investment.
The objective is to reach up to €4.5 billion of combined investment from the EU, the member states and the industry, notably under the Cybersecurity Competence Centre and Network of Coordination Centres, and to ensure that a major portion gets to SMEs. The Commission also aims at reinforcing the EU's industrial and technological capacities in cybersecurity, including through projects supported jointly by EU and national budgets. The EU has the unique opportunity to pool its assets to enhance its strategic autonomy and propel its leadership in cybersecurity across the digital supply chain (including data and cloud, next generation processor technologies, ultra-secure connectivity and 6G networks), in line with its values and priorities.
Cyber and physical resilience of network, information systems and critical entities Existing EU-level measures aimed at protecting key services and infrastructures from both cyber and physical risks need to be updated. Cybersecurity risks continue to evolve with growing digitalisation and interconnectedness. Physical risks have also become more complex since the adoption of the 2008 EU rules on critical infrastructure, which currently only cover the energy and transport sectors. The revisions aim at updating the rules following the logic of the EU's Security Union strategy, overcoming the false dichotomy between online and offline and breaking down the silo approach.
To respond to the growing threats due to digitalisation and interconnectedness, the proposed Directive on measures for high common level of cybersecurity across the Union (revised NIS Directive or ‘NIS 2') will cover medium and large entities from more sectors based on their criticality for the economy and society. NIS 2 strengthens security requirements imposed on the companies, addresses security of supply chains and supplier relationships, streamlines reporting obligations, introduces more stringent supervisory measures for national authorities, stricter enforcement requirements and aims at harmonising sanctions regimes across Member States. The NIS 2 proposal will help increase information sharing and cooperation on cyber crisis management at national and EU level. The proposed Critical Entities Resilience (CER) Directive expands both the scope and depth of the 2008 European Critical Infrastructure directive. Ten sectors are now covered: energy, transport, banking, financial market infrastructures, health, drinking water, waste water, digital infrastructure, public administration and space. Under the proposed directive, member states would each adopt a national strategy for ensuring the resilience of critical entities and carry out regular risk assessments. These assessments would also help identify a smaller subset of critical entities that would be subject to obligations intended to enhance their resilience in the face of non-cyber risks, including entitylevel risk assessments, taking technical and organisational measures, and incident notification.
The Commission, in turn, would provide complementary support to member states and critical entities, for instance by developing a Union-level overview of cross-border and cross-sectoral risks, best practice, methodologies, cross-border training activities and exercises to test the resilience of critical entities. Securing the next generation of networks: 5G and beyond Under the new Cybersecurity Strategy, member states, with the support of the Commission and ENISA - the European Cybersecurity Agency, are encouraged to complete the implementation of the EU 5G Toolbox, a comprehensive and objective risk-based approach for the security of 5G and future generations of networks.
According to a report published today, on the impact of the Commission Recommendation on the Cybersecurity of 5G networks and the progress in implementing the EU toolbox of mitigating measures, since the progress report of July 2020, most Member States are already well on track of implementing the recommended measures. They should now aim to complete their implementation by the second quarter of 2021 and ensure that identified risks are adequately mitigated, in a coordinated way, particularly with a view to minimising the exposure to high-risk suppliers and avoiding dependency on these suppliers. The Commission also sets out today key objectives and actions aimed at continuing the coordinated work at EU-level.
A Europe Fit for the Digital Age Executive Vice President Margrethe Vestager said: "Europe is committed to the digital transformation of our society and economy. So we need to support it with unprecedented levels of investment. The digital transformation is accelerating, but can only succeed if people and businesses can trust that the connected products and services - on which they rely – are secure."
High Representative Josep Borrell said: "International security and stability depends more than ever on a global, open, stable and secure cyberspace where the rule of law, human rights, freedoms and democracy are respected. With today's strategy the EU is stepping up to protect its governments, citizens and businesses from global cyber threats, and to provide leadership in cyberspace, making sure everybody can reap the benefits of the Internet and the use of technologies."
Promoting our European Way of Life Vice President Margaritis Schinas said: "Cybersecurity is a central part of the Security Union. There is no longer a distinction between online and offline threats. Digital and physical are now inextricably intertwined. Today's set of measures show that the EU is ready to use all of its resources and expertise to prepare for and respond to physical and cyber threats with the same level of determination."
Internal Market Commissioner Thierry Breton said: "Cyber threats evolve fast, they are increasingly complex and adaptable. To make sure our citizens and infrastructures are protected, we need to think several steps ahead, Europe's resilient and autonomous Cybersecurity Shield will mean we can utilise our expertise and knowledge to detect and react faster, limit potential damages and increase our resilience. Investing in cybersecurity means investing in the healthy future of our online environments and in our strategic autonomy."
Home Affairs Commissioner Ylva Johansson said: "Our hospitals, waste water systems or transport infrastructure are only as strong as their weakest links; disruptions in one part of the Union risk affecting the provision of essential services elsewhere. To ensure the smooth functioning of the internal market and the livelihoods of those living in Europe, our key infrastructure must be resilient against risks such as natural disasters, terrorist attacks, accidents and pandemics like the one we are experiencing today. My proposal on critical infrastructure does just that."
The European Commission and the High Representative are committed to implementing the new Cybersecurity Strategy in the coming months. They will regularly report on the progress made and keep the European Parliament, the Council of the European Union, and stakeholders fully informed and engaged in all relevant actions. It is now for the European Parliament and the Council to examine and adopt the proposed NIS 2 Directive and the Critical Entities Resilience Directive. Once the proposals are agreed and consequently adopted, member states would then have to transpose them within 18 months of their entry into force.
The Commission will periodically review the NIS 2 Directive and the Critical Entities Resilience Directive and report on their functioning. Background Cybersecurity is one of the Commission's top priorities and a cornerstone of the digital and connected Europe. An increase of cyber-attacks during the coronavirus crisis have shown how important it is to protect hospitals, research centres and other infrastructure. Strong action in the area is needed to future-proof the EU's economy and society. The new Cybersecurity Strategy proposes to integrate cybersecurity into every element of the supply chain and bring further together EU's activities and resources across the four communities of cybersecurity – internal market, law enforcement, diplomacy and defence.
It builds on the EU' Shaping Europe's Digital Future and the EU Security Union Strategy, and leans on a number of legislative acts, actions and initiatives the EU has implemented to strengthen cybersecurity capacities and ensure a more cyber-resilient Europe. This includes the Cybersecurity strategy of 2013, reviewed in 2017, and the Commission's European Agenda on Security 2015-2020. It also recognises the increasing inter-connection between internal and external security, in particular through the Common Foreign and Security Policy. The first EU-wide law on cybersecurity, the NIS Directive, that came into force in 2016 helped to achieve a common high level of security of network and information systems across the EU. As part of its key policy objective to make Europe fit for the digital age, the Commission announced the revision of the NIS Directive in February this year.
The EU Cybersecurity Act that is in force since 2019 equipped Europe with a framework of cybersecurity certification of products, services and processes and reinforced the mandate of the EU Agency for Cybersecurity (ENISA). As regards Cybersecurity of 5G networks, Member States, with the support of the Commission and ENISA have established, with the EU 5G Toolbox adopted in January 2020, a comprehensive and objective risk-based approach. The Commission review of its Recommendation of March 2019 on the cybersecurity of 5G networks found that most member states have made progress in implementing the Toolbox. Starting from the 2013 EU Cybersecurity strategy, the EU has developed a coherent and holistic international cyber policy.
Working with its partners at bilateral, regional and international level, the EU has promoted a global, open, stable and secure cyberspace guided by EU's core values and grounded in the rule of law. The EU has supported third countries in increasing their cyber resilience and ability to tackle cybercrime, and has used its 2017 EU cyber diplomacy toolbox to further contribute to international security and stability in cyberspace, including by applying for the first time its 2019 cyber sanctions regime and listing 8 individuals and 4 entities and bodies. The EU has made significant progress also on cyber defence cooperation, including as regards cyber defence capabilities, notably in the framework of its Cyber Defence Policy Framework (CDPF), as well as in the context of the Permanent Structured Cooperation (PESCO) and the work of the European Defence Agency. Cybersecurity is a priority also reflected in the EU's next long-term budget (2021-2027).
Under the Digital Europe Programme the EU will support cybersecurity research, innovation and infrastructure, cyber defence, and the EU's cybersecurity industry. In addition, in its response to the Coronavirus crisis, which saw increased cyberattacks during the lockdown, additional investments in cybersecurity are ensured under the Recovery Plan for Europe. The EU has long recognized the need to ensure the resilience of critical infrastructures providing services which are essential for the smooth running of the internal market and the lives and livelihoods of European citizens. For this reason, the EU established the European Programme for Critical Infrastructure Protection (EPCIP) in 2006 and adopted the European Critical Infrastructure (ECI) Directive in 2008, which applies to the energy and transport sectors. These measures were complemented in later years by various sectoral and cross-sectoral measures on specific aspects such as climate proofing, civil protection, or foreign direct investment.
Digital transformation: Importance, benefits and EU policy
Learn how the EU is helping to shape a digital transformation in Europe to benefit people, companies and the environment.
The digital transformation is one of the EU's priorities. The European Parliament is helping to shape the policies that will strengthen Europe's capacities in new digital technologies, open new opportunities for businesses and consumers, support the EU's green transition and help it to reach climate neutrality by 2050, support people's digital skills and training for workers, and help digitalise public services, while ensuring the respect of basic rights and values.
MEPs are preparing to vote on a report on shaping the digital future of Europe, calling on the Europea Commission to further tackle challenges posed by the digital transition, especially to take advantage of the opportunities of the digital single market and to improve the use of artificial intelligence. What is digital transformation?
- Digital transformation is the integration of digital technologies by companies and the impact of the technologies on society.
- Digital platforms, the Internet of Things, cloud computing and artificial intelligence are among the technologies affecting ...
- ... sectors from transport to energy, agri-food, telecommunications, financial services, factory production and health care, and transforming people's lives.
- Technologies could help to optimise production, reduce emissions and waste, boost companies' competitive advantages and bring new services and products to consumers.
Funding of the EU's digital priorities
Digital plays an essential role in all EU policies. The Covid crisis accentuated the need for a response that will benefit society and competitiveness in the long run. Digital solutions present important opportunities and are essential to ensuring Europe's recovery and competitive position in the global economy.
The EU's plan for economic recovery demands that member states allocate at least 20% of the €672.5 billion Recovery and Resilience Facility to digital transition. Investment programmes such as the research and innovation-centred Horizon Europe and infrastructure-centred Connecting Europe Facility allocate substantial amounts for digital advancements as well.
While the general EU policy is to endorse digital goals through all programmes, some investment programmes and new rules specifically aim to achieve them.
Digital Europe programme
MEPs are set to vote in April on the Digital Europe programme, the EU’s first financial instrument focused specifically on bringing technology to businesses and people. It aims to invest in digital infrastructure so that strategic technologies can help boost Europe’s competitiveness and green transition, as well as ensure technological sovereignty. It will invest €7.5 billion in five areas: supercomputing (€2.2 billion), artificial intelligence (€2 billion), cybersecurity (€1.6 billion), advanced digital skills (€577 million), and ensuring a wide use of digital technologies across the economy and society (€1 billion).
Online safety and platform economy
Online platforms are an important part of the economy and people's lives. They present significant opportunities as marketplaces and are important communication channels. However, there also pose significant challenges.
The EU is working on new digital services legislation, aiming to foster competitiveness, innovation and growth, while boosting online security, tackling illegal content, and ensuring the protection of free speech, press freedom and democracy.
Among measures to ensure safety online, the Parliament is voting on new rules to prevent the dissemination of terrorist content online in April. MEPs are also considering rules on a new European cybersecurity centre.
Artificial intelligence and data strategy
Artificial intelligence (AI) could benefit people by imroving health care, making cars safer and enabling tailored services. It can improve production processes and bring a competitive advantage to European businesses, including in sectors where EU companies already enjoy strong positions, such as the green and circular economy, machinery, farming and tourism.
To ensure Europe makes the most of AI's potential, MEPs have accentuated the need for human-centric AI legislation, aimed at establishing a framework that will be trustworthy, can implement ethical standards, support jobs, help build competitive “AI made in Europe” and influence global standards. The Commission presented its proposal for AI regulation on 21 April 2021.
Read more on how MEPs want to regulate artificial intelligence.
The success of AI development in Europe ilargely depends on a successful European data strategy. Parliament has stressed the potential of industrial and public data for EU companies and researchers and called for European data spaces, big data infrastructure and legislation that will contribute to trustworthiness.
Digital skills and education
The Covid-19 pandemic has demonstrated how important digital skills are for work and interactions, but has also accentuated the digital skills gap and the need to increase digital education. The Parliament wants the European skills agenda to ensure people and businesses can take full advantage of technological advancements.
42% of EU citizens lack basic digital skill
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Vega: Launch of the first world-class supercomputer in the EU
The European Commission, together with the European High-Performance Computing Joint Undertaking and the government of Slovenia has inaugurated the operation of the Vega Supercomputer at a high-level ceremony in Maribor, Slovenia. This marks the launch of a first EU supercomputer procured jointly with EU and member state funds, with a joint investment of €17.2 million.
A Europe Fit for the Digital Age Executive Vice President Margrethe Vestager said:“We are celebrating today the launch of the Vega supercomputer – the first of several. Supercomputing will open new doors for European SMEs to compete in tomorrow's high tech economy. Even more importantly, by supporting artificial intelligence to identify the molecules for breakthrough drug treatments, by tracking infections for COVID and other diseases, European supercomputing can help save lives.”
Executive Vice President Vestager participated in the launch ceremony on 20 April together with the Prime Minister of Slovenia, Janez Janša. The new Vega supercomputer is capable of 6.9 Petaflops of computer power and will support the development of applications in many domains, such as machine learning, artificial intelligence, and high-performance data analytics. It will help European researchers and industry to make significant advances in bio-engineering, weather forecasting, the fight against climate change, personalised medicine, as well as in the discovery of new materials and drugs that will benefit EU citizens. The EuroHPC Joint Undertaking pools European and national resources to procure and deploy world-class supercomputers and technologies.
In addition to Vega in Slovenia, EuroHPC supercomputers have been acquired and are being installed in the following centres: Sofia Tech Park in Bulgaria, IT4Innovations National Supercomputing Center in Czechia, CINECA in Italy, LuxProvide in Luxembourg, Minho Advanced Computing Center in Portugal, and CSC – IT Center for Science in Finland. Moreover, a Commission proposal for a new Regulation for the EuroHPC Joint Undertaking, presented in September 2020, aims to enable a further investment of €8 billion in the next generation of supercomputers, including emerging technologies such as quantum computers. More information will be available in this press release by the EuroHPC Joint Undertaking.
Commission approves €146.5 million Austrian support in favour of companies joining research and innovation project in microelectronics
The European Commission has approved, under EU state aid rules, €146.5 million in Austrian support in favour of three companies joining the existing Important Project of Common European Interest (‘IPCEI') in microelectronics approved by the Commission in 2018. The public funding is expected to unlock an additional €530m of private investments, i.e. more than three and a half times the public support.
Executive Vice President Margrethe Vestager, in charge of competition policy, said: “To deliver on the digital and green transition, we will need highly innovative and sustainable microchips and sensors for many products in our economy, ranging from mobile phones to aircraft. The Important Project of Common European Interest in microelectronics that we approved in 2018 has been supporting the development of important cutting-edge technologies in this field. The IPCEI's integration is very important for its success – we have approved additional support by Austria to three projects because they meet the high bar of adding significant value to the existing IPCEI, with important collaborations with the existing participants.”
In December 2018, the Commission approved, under EU state aid rules, an IPCEI to support research and innovation in the field of microelectronics (the ‘2018 IPCEI Microelectronics'). The project was jointly set-up and notified by France, Germany, Italy and the United Kingdom. The approved public support amounted to €1.75 billion. The 2018 IPCEI Microelectronics, which aims at developing innovative microelectronics technologies and components for automotive, Internet of Things (IoT) and other key applications (such as space, avionics, and security) and their first industrial deployment, originally involved 27 companies and two research organisations.
In December 2020, Austria notified to the Commission its plans to join the 2018 IPCEI Microelectronics, by providing €146.5m of public support to three companies (Infineon Austria, AT&S Austria and NXP Semiconductors Austria) that will carry out additional research and innovation falling within the scope and contributing to the objectives of the existing IPCEI. The companies will focus in particular on the areas of security, energy efficiency, and integration of packaging technologies for microelectronics.
The joining of an already established and ongoing IPCEI by an additional member state and projects is an exceptional circumstance. It requires a complex assessment by the Commission, to verify that the new individual projects are properly integrated in the existing roadmap and structure of the IPCEI, for example by means of establishing sufficient and valuable collaborations with the initial participants, and are genuinely adding significant value to the IPCEI in order to reach its objectives.
The Commission takes note of and welcomes the increasingly transparent, open and inclusive practice that member states have now established in designing IPCEIs to ensure that all interested member states join from the start, so that these important European projects generate even more benefits to the entire EU without unduly distorting competition.
The Commission's assessment
The Commission assessed Austria's plans under EU state aid rules, more specifically its Communication on Important Projects of Common European Interest (IPCEI). Where private initiatives supporting breakthrough innovation fail to materialise because of the significant risks such projects entail, the IPCEI state aid Communication enables member states to jointly fill the gap to overcome these market failures, while ensuring that the EU economy at large benefits and limiting potential distortions to competition.
The projects that Infineon Austria, AT&S Austria and NXP Semiconductors Austria will carry out aim at delivering additional technological innovations in energy efficient power semiconductors, on advanced security and interconnections, as well as on organic packaging technology aspects.
In this respect, the Commission found that the projects will add significant value to the 2018 IPCEI Microelectronics and will contribute to and enhance the integration of existing IPCEI. In particular:
- They will significantly contribute to the achievement of common objective pursued by the existing IPCEI in supporting a strategic value chain, in particular through the development innovative microelectronics, technologies and components for automotive, IoT and other key applications (such as space, avionics, and security), by aiming at technology solutions that were not (sufficiently) addressed.
- They will add significant value to the existing IPCEI by bringing important contributions to its objectives, integration, collaborations, scope, and research and development content.
- They are highly ambitious, aiming at developing technologies and processes that go beyond current technology.
- The companies will establish significant and valuable additional collaborative research with the existing direct partners and support the development and objectives of the relevant technology fields.
- The projects involve significant technological and financial risks, and public support is therefore necessary to provide incentives to companies to carry out the investment.
- The aid to each of the three companies is limited to what is necessary, proportionate and does not unduly distort competition.
- Additional important positive spill-over effects will be generated throughout Europe.
On this basis, the Commission concluded that the Austrian plans to join the 2018 IPCEI Microelectronics are in line with EU State aid rules.
In June 2014 the Commission adopted a Communication on important projects of common European interest (IPCEI), setting out criteria under which Member States can support transnational projects of strategic significance for the EU under Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU). This framework aims to encourage Member States to support projects that make a clear contribution to the EU strategic objectives.
The IPCEI Communication complements other State aid rules such as the General Block Exemption Regulation and the Research, Development and Innovation Framework, which allows supporting innovative projects with generous conditions.
Since 2014, the IPCEI Communication has been applied in the field of infrastructure as well as for integrated projects in the area of research and innovation, for microelectronics (in December 2018) and for the battery value chain (in December 2019 and in January 2021).
The IPCEI Communication is currently being reviewed to ensure it fully contributes to the Commission's green and digital objectives, following an evaluation or ‘Fitness Check' completed in October 2020. On 23 February 2021, the Commission launched a public consultation inviting all interested parties to comment on the draft revised IPCEI Communication. In this context, the Commission is proposing, among others, to further enhance the open character of IPCEIs (by, for example, providing that all Member States must be given a genuine opportunity to participate in an emerging project).
Stakeholders can respond to the consultation for eight weeks, until 20 April 2021.
The non-confidential version of the decision will be made available under the case number SA.56606 in the State Aid Register on the competition website once any confidentiality issues have been resolved.
New publications of state aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.
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