Vulcan View: The latest EU developments 7 April – 11 April

EU implements a 90-day pause on steel and aluminium retaliatory measures

On 9 April, U.S. President Donald Trump called for a 90-day pause on his planned “reciprocal” tariffs. While tariffs on steel, aluminium, and automobiles remain in place, the EU will temporarily face only a 10% tariff.

In response to President Trump, on 10 April, European Commission President von der Leyen announced a 90-day pause in the planned steel & aluminium retaliatory tariffs, – a measure approved by EU member States just the day before. This pause will remain in effect while negotiations take place between the EU and the U.S. European Commission President von der Leyen stated: “If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues. As I have said before, all options remain on the table.” 

While President Trump’s decision to pause tariff implementation signals an openness to dialogue, the situation remains highly volatile. It is yet another U-turn by Donald Trump, the uncertainty created leaving the global economy in a very difficult situation. Additionally, the escalating trade tensions between the U.S. and China are likely to have spillover effects on the EU, including excess supply being redirected to third markets such as the EU and further disruptions to global supply chains.

Earlier in the week, EU Trade Commissioner, Maroš Šefčovič, gave a speech during the Foreign Affairs Council (Trade) press conference hosted by the Polish Presidency on Monday, 7 April. He noted that U.S. tariffs have the potential to hit €380 billion worth of EU exports with tariffs of 20% or 25%.

He said “Both sides recognise that the EU-U.S. trade relationship could benefit from a fresh look and a boost in strategic areas… If we team up, we could build a truly transatlantic marketplace that benefits both sides.”

Mr. Šefčovič expressed that while negotiations are possible, the EU will not wait indefinitely for U.S. engagement. The EU will take the following approach: Defending its interests through countermeasures, diversifying trade through new agreements, and deterring harmful trade diversions.

European Commission President Ursula von der Leyen and EU Trade Commissioner Šefčovič also affirmed they have offered the U.S. “zero-for-zero tariffs for cars and industrial goods.” Additionally, the EU will set up an Import Surveillance Task Force to monitor potential diversion of goods as a result of U.S. tariffs as it tries to pursue negotiations with the Trump Administration.

 

European Commission announces “AI Continent” plan vying for AI global leadership

The European Commission unveiled on Wednesday (9 April) its ambitious “AI Continent Action Plan” to position the EU as a global leader in artificial intelligence. The strategy seeks to modernise traditional industries and harness Europe’s broad talent pool to drive innovation across sectors and address new technological challenges. The Commission’s proposal is built around five key pillars:

1. Building a large-scale AI data and computing infrastructure  

To support the advancement of AI, the Commission is investing in a robust data and computing infrastructure. A key element of this initiative is creating a network of AI Factories, with 13 already operational near Europe’s leading supercomputers. These centers are designed to assist AI startups, established industries, and research institutions in building and deploying advanced AI models. The plan also introduces the concept of AI Gigafactories, large-scale facilities that will:

• Integrate massive computing power with extensive data centres
• Deploy approximately 100,000 state-of-the-art AI chips—quadruple the capacity of current AI factories
• Train complex AI models at an unprecedented scale

 

In addition, the Commission will propose a “Cloud and AI Development Act” to stimulate private sector investment in cloud capacity and data centres, with the goal to triple the EU’s data centre capacity in 5-7 year. These initiatives aim to promote Europe’s technological independence, ensuring the region can compete globally. Equally important is the forward-looking approach towards semiconductors. The Commission’s focus on secure, efficient, and innovative chip design—reinforced by discussions for a Chips Act 2.0—illustrates a commitment to bolstering Europe’s resilience in key industries.

2. Increasing access to large and high-quality data

AI innovation thrives on the availability of vast and reliable data sets. Recognising this, the Action Plan prioritises the creation of Data Labs within the AI Factories. These labs will:

• Curate diverse sources of high-quality data
• Facilitate its integration into AI systems
• Enable researchers and businesses to access and leverage large volumes of information efficiently

 

Additionally, a comprehensive Data Union Strategy is set to launch later this year, aiming to create a seamless internal market for data. This critical step is expected to accelerate AI solutions by making data more accessible, ultimately fostering an ecosystem where innovation can flourish.

3. Developing algorithms and fostering AI adoption in strategic EU sectors

Despite the promising potential of AI technologies, only a modest 13.5% of companies in the EU have integrated AI into their operations. To shift this paradigm, the Commission is preparing the “Apply AI Strategy.” This initiative will:

• Develop tailored AI solutions for strategic public and private sectors
• Leverage the existing European Digital Innovation Hubs (EDIHs) alongside AI Factories to nurture practical applications of AI

 

While encouraging industry-wide uptake of AI, the strategy will also address the need for robust algorithms that cater to diverse applications—from industrial automation to enhanced public service delivery. In parallel, robust consultations with industry stakeholders are expected to refine the strategy and pinpoint areas where further optimisation is required.

4. Strengthening AI Skills and Talents

A critical component to achieving the full potential of AI lies in equipping the workforce with the necessary skills. The Commission is set to:

• Facilitate international recruitment of highly skilled AI experts
• Launch initiatives such as the Talent Pool, Marie Skłodowska-Curie Action “MSCA Choose Europe”, and AI fellowship schemes offered by an upcoming AI Skills Academy
• Develop educational and training programmes geared towards AI and Generative AI across various sectors

 

These measures aim to build a robust talent pool capable of meeting the challenges of tomorrow.

5. Regulatory simplification 

Alongside capacity building, regulatory simplification forms an integral part of the plan. The Commission seeks to balance citizen protection with clear, manageable regulations for businesses. As Executive Vice-President Henna Virkkunen recently stated: “We are working towards a future where tech innovation drives industry and public services forward, bringing concrete benefits to our citizens and businesses through trustworthy AI.”

By identifying areas where the “administrative burden” can be trimmed—such as reducing unnecessary reporting obligations—the Commission is committed to fostering an environment where innovation is not stifled by red tape.

Conclusions

The Commission will open public consultations on key components of the initiative, such as the Cloud and AI Development Act and the Apply AI Strategy. By doing so, the Commission is actively seeking stakeholder input to refine its ambitious vision for Europe as a leader in AI.

With a clear roadmap and milestones, the AI Continent Action Plan marks a transformative step for Europe. By building world-class infrastructure, easing access to data, promoting AI adoption across critical sectors, and nurturing the next generation of AI talent, the Commission is paving the way for Europe to emerge as a global powerhouse in artificial intelligence.

 

Resetting the road ahead: major review of the National Development Plan announced

The announcement by Minister Jack Chambers on 8 April to initiate a review of the National Development Plan represents a timely and strategic intervention by the Government in response to infrastructure demands and a shifting economic landscape. The Department of Public Expenditure, National Development Plan Delivery and Reform will assess all public capital investment up to 2035. The review will be completed in July 2025 and will prioritise infrastructure improvements in:

• Energy grid capacity
• Water supply
• Transport connectivity
• Health digitalisation

 

These areas are critical enablers of economic competitiveness and sustainability, which align with Ireland’s immediate infrastructure needs and long-term national investment.

Individual departments will be required to identify priority projects for 2026 – 2030. A public consultation will be launched for input from interested stakeholders in the coming months, and a climate assessment will be included for all government-funded projects.

Minister Chambers highlighted the record €15 billion capital investment for 2025 – four times the amount invested a decade ago. He reaffirmed the Government’s commitment to infrastructure reform. The review aligns with commitments included in the Programme for Government.

The review comes at a pivotal moment, as competitiveness has never been more critical. Ireland needs to have the proper infrastructure in place to attract and retain foreign direct investment. In the current climate, Ireland’s infrastructure deficit poses a significant risk to competitiveness. It is paramount for this review to deliver revised plans as well as improved delivery mechanisms to address persistent bottlenecks in infrastructure rollout. Overall, the review aims to ensure sustainable long-term investment in essential infrastructure supporting economic growth, regional development, and the green transition.

Project Ireland 2040

Project Ireland 2040 is Ireland’s forward-looking strategy, which involves investment in critical infrastructure, housing, healthcare, and education. The strategy is centred around sustainable development and economic prosperity and has two main pillars:

1. The National Planning Framework
2. The National Development Plan

 

The National Development Plan supports the implementation of the National Planning Framework and broader Government initiatives through targeted infrastructure investment. A total of €165 billion has been allocated for the lifetime of the National Development Plan up to 2030, aligned with the ten National Strategic Outcomes outlined in the National Planning Framework.

• Compact growth
• Enhanced regional accessibility
• Strengthened rural economies and communities
• Sustainable mobility
• A strong economy supported by enterprise, innovation, and skills
• High-quality international connectivity
• Enhanced amenity and heritage
• Transition to a low-carbon and climate-resilient society
• Sustainable management of water and other environmental resources
• Access to quality childcare, education, and health services

 

Compliments of Vulcan Consulting – a member of the EACCNY