Regulation (EU) 2024/1689 (the “AI Act”) is the European Union’s central legislative framework for artificial intelligence. It entered into force on 1 August 2024 and its provisions are entering into application in a staggered manner. It will significantly affect organisations that develop, distribute, or deploy AI systems, including those based outside the EU that offer services into the EU.
Initial reactions on what providers, deployers and downstream actors should take away from the European Commission’s long-awaited Article 6 Guidelines on the classification of high-risk AI systems.
On 19 May 2026, the European Commission published its long-anticipated Draft Commission Guidelines on the classification of high-risk AI systems under Article 6 of Regulation (EU) 2024/1689 for stakeholder consultation (“draft Guidelines”). Across three documents, general principles, the Annex I (product safety) route and the Annex III (use case) route, the Commission sets out, for the first time at this level of detail, how it reads the single most consequential classification question under the AI Act: when does a system fall inside the high-risk regime, and when does it stay outside?
In the Stellantis case, the European Court of Justice (ECJ) has ruled that a transfer pricing adjustment in the context of intra-group supplies of goods is not a consideration for a supply of services for VAT purposes. This was to be expected, and it also seemed likely that the transfer pricing adjustment would be qualified as an adjustment of the consideration of the initial supply of the goods.
In April 2025, China introduced new export licensing requirements for certain medium and heavy rare earth elements pursuant to the Announcement of the Ministry of Commerce and the General Administration of Customs [2025] No. 18 (“Announcement No. 18”). The measures have significantly impacted companies across a broad range of sectors, including the automotive and life sciences industries. Given that China accounts for approximately 90% of global rare earth refining capacity and that alternative sources remain limited and are frequently inferior in terms of cost and quality, affected businesses face a complex and fast-evolving compliance and strategic landscape.
In an increasingly interconnected world, logistics is the nervous system of the global economy. However, with advancing automation, from AI-controlled high-bay warehouses to networked rail freight systems, the surface area vulnerable to cyber-attacks is growing dramatically.
Private credit funds are nowadays key providers of credit to businesses and have taken over the role of traditional banks. This was particularly important during the financial crisis, when businesses required liquidity on flexible terms – the needs that banks were unable to satisfy. Another push came from the post-pandemic environment, where increasing interest rates rendered credit exposure appealing. As a result, nearly two decades of tailwind led to a boom. But as opportunities arise, so does competition. With different lenders entering the market, borrowers became more selective. Add the sliding interest rates and global instability, the private credit sector now faces some headwind.
What’s happening this week in economics? Deloitte’s team of economists examines news and trends from around the world.
The standoff between the US and Iran shows little sign of abating, after President Trump dismissed Tehran’s response to peace overtures over the weekend.
Markets are starting to adapt. Oil prices remain high, but have eased lately due to a combination of demand destruction and increased production elsewhere. US stocks continue to print at fresh highs, as European equities lag, and the dollar appears to have resumed its gradual descent against most currencies. The key EUR/USD pair is now bumping against its pre-war levels, and some emerging market bellwethers like the Brazilian real are significantly higher over the period.
Congress returns to Washington with the House set to take up its first fiscal year 2027 appropriations bill as Senate Republicans continue to navigate a second budget reconciliation bill.
On 7 May 2026, the European Parliament and the Council reached a political agreement on the Digital Omnibus on AI (“AI Omnibus”), aiming to amend the AI Act. The package responds to delayed standards, unclear governance and heavier-than-expected compliance costs.
