From January to June 2025, Poland will hold the Presidency of the Council of the European Union, presenting an ambitious agenda organized around the concept of security to tackle some of the EU’s most pressing challenges. This blog outlines the announced focus areas for technology, trade, defense, and ESG. Each of these topics is pivotal to ensuring the EU’s competitiveness, resilience, and sustainability in an increasingly complex global landscape.
Technology: Driving Innovation and Digital Transformation
The EU’s technological landscape is at a crossroads, driven by competition with the U.S. and China, and regulatory reforms such as the Digital Markets Act and the AI Act. The Polish Presidency will advance digital resilience by focusing on cybersecurity and AI governance. It commits to “promote the strengthening of European AI research, development and competence centres across the EU and support EU activities for entrepreneurs implementing disruptive technologies.” Poland also pledges to develop a “a comprehensive and horizontal approach to cybersecurity” by holding “a discussion on best practices in Member States on investing in cybersecurity” and creating a “new EU cybersecurity strategy.”
The EU-U.S. Trade and Technology Council (TTC), which has facilitated transatlantic cooperation, faces uncertain prospects under evolving political landscapes. If disbanded, new bilateral arrangements like a UK-EU TTC may emerge. In technology diplomacy, the EU will likely prioritize collaborations on export control, investment screening, and dual-use technologies with allies, including the U.S.
Trade: Enhancing Competitiveness and Reducing Dependencies
The EU’s trade policy faces heightened complexities in balancing openness with economic security. Amidst Russia’s destabilizing actions and the economic decoupling from China, the Polish Presidency prioritizes reinforcing the EU’s economic sovereignty. Enhancements to the EU Customs Union and trade components of the Association Agreements with Ukraine and Moldova are expected, aligning economic cooperation with strategic resilience.
To reduce dependencies on critical raw materials and strengthen supply chains, Poland will also prioritize implementing the European Economic Security Strategy, building on prior efforts. The implementation of the Carbon Border Adjustment Mechanism (CBAM) is expected to be advanced significantly, notably through discussions with other Council formations.
Additionally, the EU must address the impending expiration of suspended tariffs worth €2.8 billion on steel and aluminum, deciding by March 2025 whether to reintroduce these duties or maintain the suspension. This will play a critical role in upcoming EU-US trade relations, particularly in light of the tariffs announced by Donald Trump.
Defense: Strengthening Security and Resilience
The Polish Presidency also emphasizes reinforcing EU defense readiness through increased military spending and developing robust defense infrastructure like the East Shield and Baltic Defense Line. Coordination with NATO remains essential, with a focus on enhancing EU-NATO synergies and dual-use infrastructure.
Further, the implementation of the EU Strategic Compass will remain a cornerstone of defense policy. This includes operationalizing the EU Rapid Deployment Capacity and strengthening the European Defense Industrial Programme (EDIP). These initiatives aim to close defense capability gaps and ensure resilience against hybrid threats, including cyberattacks and misinformation campaigns.
ESG: Promoting Sustainability and Climate Action
Environmental and social governance remain central to the EU’s policy framework. The Polish Presidency will promote ESG integration, particularly through streamlined regulations. President von der Leyen’s recent announcement to consolidate ESG reporting obligations reflects this drive for efficiency.
The EU must also navigate challenges posed by shifting U.S. priorities. A second Trump administration could scale back international climate commitments, including a potential withdrawal from the Paris Agreement. In response, the EU is expected to deepen alliances with like-minded partners such as Canada and Japan to sustain global climate efforts.
The upcoming “Clean Industrial Deal” will likely align industrial policy with climate objectives, aiming to make clean technologies affordable and accessible while maintaining global competitiveness.
To conclude, the Polish Presidency of the Council is poised to make significant strides in technology, trade, defense, and ESG policies. To navigate the upcoming changes effectively, businesses must stay informed about the content of legislative proposals and their adoption processes. Strategic planning will enable them to anticipate the shifts expected under the Polish Presidency and during the early days of President von der Leyen’s second mandate.
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The team at Covington, which cuts across a wide range of regulatory areas, is well placed to advise you on these policy developments, and how to engage with the relevant decision-makers on these questions.
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Clovis de Bryas of Covington & Burling LLP contributed to the preparation of this article.