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Cyprus Presidency Of The EU Council: Steering Europe Toward Competitive And Autonomous Growth

Strengthening Competitiveness And Strategic Autonomy

The Cyprus Presidency of the EU Council is preparing to focus on strengthening Europe’s competitiveness, advancing strategic autonomy, and promoting sustainable and inclusive economic growth. Minister Michalis Damianos presented these priorities during the opening session of the Informal Meeting of EU Ministers for Competitiveness, held in Nicosia and dedicated to the internal market and industrial policy.

Navigating A Critical Juncture

Europe is entering a period marked by geopolitical uncertainty, energy challenges, rapid technological change, and increasing global competition. Against this backdrop, the Cyprus Presidency takes on its role at a sensitive time. Building on the work of previous presidencies, Cyprus aims to support policies that keep the European Union economically resilient and institutionally prepared for emerging risks.

Autonomy Through Competitiveness

Minister Damianos underlined that strategic autonomy is closely tied to economic strength. Strengthening the internal market and supporting European industry are seen as essential steps not only for economic stability but also for maintaining the EU’s global influence. The approach combines support for innovation with the transition toward greener and more digital economies.

Policy Priorities And Sectoral Focus

The meeting is structured around three main areas. One of the key topics is the development of the European defence industry, which is gaining importance across the Union and is viewed as a sector with growth potential even for smaller member states. Ministers are also reviewing the progress of the Compass of Competitiveness initiative, launched a year earlier, with discussions focused on identifying gaps and accelerating implementation.

Modernizing Consumer Policy

During a working session, the European Commission introduced the New European Consumer Policy Framework for 2025–2030, approved in November 2025. The framework is intended to guide consumer protection and market regulation efforts across the EU over the coming years.

Charting A Strategic Future

Opening remarks from Minister Damianos reiterated that improving competitiveness remains central to the Cyprus Presidency’s agenda. The discussions in Nicosia are expected to contribute to policy decisions that will shape the Union’s economic direction in the near term.

Copyright Law Struggles To Keep Up With AI Training

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.

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