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Von der Leyen Calls for Europe-Wide Push on AI-Powered Cars to Revive Auto Industry

European Commission President Ursula von der Leyen has urged the European Union to embrace an “AI first” strategy for the automotive sector, calling for a coordinated effort to develop self-driving cars made in Europe. Speaking at Italian Tech Week in Turin, the continent’s automotive capital, she argued that artificial intelligence could rejuvenate Europe’s car industry while enhancing road safety and sustainability.

“Self-driving cars are already a reality in the United States and China. The same should be true here in Europe,” von der Leyen said, emphasizing that “AI first” must also mean “safety first.” Her comments reflect growing concern in Brussels about the competitiveness gap between European automakers and tech-led rivals abroad, particularly in the U.S. and China, where AI-driven mobility is advancing rapidly.

Von der Leyen proposed creating a network of European cities to serve as autonomous vehicle pilot zones, noting that 60 Italian mayors have already expressed interest in joining the initiative. She pledged EU support for vehicles “made in Europe, and made for European streets,” positioning AI innovation as a cornerstone of industrial revival and regional independence.

The announcement comes amid intense pressure on Europe’s automotive sector, which employs millions of workers and faces simultaneous demands to decarbonize and digitize. Von der Leyen argued that AI-driven transport could reduce congestion, connect rural communities, and preserve jobs by enabling a new ecosystem of European-designed mobility technologies.

Also speaking at the event were Amazon founder Jeff Bezos, Ferrari and Stellantis Chairman John Elkann, and other global technology leaders—highlighting the deepening link between Silicon Valley innovation and Europe’s manufacturing transformation.

“The future of cars—and the cars of the future—must be made in Europe,” von der Leyen concluded, framing AI not as a threat but as the engine of Europe’s next industrial renaissance.

Dutch Court Orders Meta to Simplify Facebook and Instagram Timelines

A Dutch court has ordered Meta Platforms to change how it presents Facebook and Instagram timelines, ruling that users must be given a simple and direct way to opt out of personalized content based on profiling.

The decision, issued on Thursday, found that elements of Meta’s current design violate the EU’s Digital Services Act (DSA), a sweeping law intended to curb manipulative digital practices and increase user control over online platforms.

Under the ruling, Meta has two weeks to implement the changes in the Netherlands. Users must be able to select a chronological timeline or another non-profiled feed, and — critically — that choice must remain active instead of resetting when users close the app or browser.

The court said Meta’s practice of automatically reverting users to the algorithmic “recommended content” feed amounted to a “dark pattern”, a manipulative design that limits free choice and infringes on the right to freedom of information.

“People in the Netherlands are not sufficiently able to make free and autonomous choices about the use of profiled recommendation systems,” the court said.

The timing of the ruling was also significant: the court noted that these design practices could influence public opinion ahead of the Dutch general election on October 29, emphasizing the importance of media neutrality and user autonomy.

META TO APPEAL

Meta said it would appeal the decision, insisting it had already made substantial adjustments to comply with the DSA and had notified Dutch users about how to view non-personalized feeds.

“We introduced substantial changes to our systems to meet our regulatory obligations under the DSA,” a Meta spokesperson said. “Proceedings like this threaten the digital single market and the harmonized regulatory regime that should underpin it.”

Meta also argued that such rulings should be handled at the EU level rather than by individual member states, warning that fragmented national court decisions could undermine the DSA’s unified enforcement goals.

DIGITAL RIGHTS GROUP CELEBRATES

The Dutch digital rights organization Bits of Freedom, which filed the case, welcomed the court’s ruling.

“It is unacceptable that a few American tech billionaires can determine how we view the world,” said spokesperson Maartje Knaap, calling the decision a major victory for digital freedom and user rights in Europe.

The ruling marks a new milestone in the EU’s effort to hold global tech firms accountable under the DSA — and could inspire similar challenges in other member states as regulators and courts push for greater transparency and user control in digital platforms.

EU Risk Watchdog Urges Swift Action on Stablecoin Safeguards

The European Union’s financial risk watchdog has called for urgent safeguards on stablecoins that are only partially issued within the bloc, echoing growing concerns from the European Central Bank (ECB) about the potential for destabilizing financial runs.

Stablecoins — cryptocurrencies pegged to traditional reserve assets such as fiat currencies or commodities — are designed to maintain price stability. However, the European Systemic Risk Board (ESRB) warned that stablecoins issued both inside and outside the EU present inherent structural risks.

“Third-country multi-issuer schemes — with fungible stablecoins circulating both in the EU and abroad — have built-in vulnerabilities which require an urgent policy response,” the ESRB said in a statement.

RISK OF RUNS AND LIQUIDITY STRAINS

The ECB, led by Christine Lagarde, fears that if confidence in such stablecoins falters, investors could rush to redeem their holdings in the EU, where regulatory protections are strongest.
Such a scenario could lead to liquidity shortages, as EU-based reserves may be insufficient to cover redemptions — potentially forcing the ECB to intervene to stabilize markets.

Lagarde has consistently emphasized that stablecoin issuers operating in the EU and abroad must be held to identical standards, to prevent regulatory loopholes that could import external financial risk into the bloc.

REGULATORY GAPS AND POLICY IMPLICATIONS

Under the EU’s Markets in Crypto-Assets (MiCA) regulation — one of the world’s most comprehensive crypto frameworks — stablecoins are required to be fully backed by liquid reserves.
However, in “multi-issuer” arrangements, where an EU entity and a non-EU entity jointly issue a stablecoin, the stricter EU rules do not apply to the foreign partner. This creates regulatory asymmetry that may allow risk to flow into the EU system.

The ESRB warned that multi-function financial groups issuing stablecoins across jurisdictions may fall under more lenient regimes than traditional financial conglomerates, heightening the risk of divergent prudential standards and undermining the integrity of EU financial supervision.

A CALL FOR COORDINATED OVERSIGHT

The watchdog urged EU institutions to close these gaps quickly through policy coordination and international cooperation to ensure that global stablecoin systems do not exploit differences between regulatory frameworks.

The ESRB’s statement comes as the European Union prepares to implement MiCA fully by 2026, amid growing debate about how to integrate emerging crypto technologies into the region’s financial stability architecture without stifling innovation.