Humans vs. computers — AI code of conduct leaked – POLITICO

AI LEAK       

G7 CODE OF CONDUCT ON AI COMING TODAY: The G7 group of rich, industrialized democracies will today publish a code of conduct for developers of generative artificial intelligence. Playbook has seen a copy of the code and has a rundown …

Voluntary nudge: The code is voluntary — but digital ministers and leaders of the G7 countries (Canada, France, Germany, Italy, Japan, the U.K. and U.S.) will endorse it in an effort to nudge companies into signing up.

The idea for the code came from Margrethe Vestager (remember her?). The EU’s former competition chief suggested to G7 leaders back in the spring that they should work collectively on this new form of the technology without hindering its development.

AI Act coming: Vestager prioritized the voluntary code over legislation, arguing it was more effective to have a broad international agreement on basic AI norms. Still, the EU is working on mandatory rules as well, and sees the code as a “bridge until regulation is in place,” digital chief Věra Jourová said at a forum on internet governance in Kyoto earlier this month, pointing to the EU’s incoming AI Act.

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What’s in it: Companies that sign the code vow to reduce risks associated with generative AI by identifying potential vulnerabilities; reporting potential limitations to the firms’ models; creating AI governance structures, including around privacy; and investing in security controls.

WHITE HOUSE AI EXECUTIVE ORDER: U.S. regulation on AI — in the form of a 110-page executive order from the Biden administration — will also drop later today. It has a little something for everyone, my colleague Mark Scott reports.

What’s in the US regulation: Measures include urging U.S. federal agencies to use their existing powers to oversee AI; relying on American taxpayer dollars to nudge companies into better oversight via lucrative procurement contracts; and asking the Federal Trade Commission to go after potential competition concerns. Our U.S. colleagues have seen the document and have more.

MIDDLE-EAST CRISIS — 2-STATE SOLUTION BACK IN FOCUS       

WESTERN LEADERS URGE LONG-TERM PEACE AMID GAZA WAR: As Israel expands its offensive in the Gaza Strip via a series of ground incursions and with calls growing for a humanitarian pause, EU and U.S. leaders are rediscovering an expression that fell out of favor for nearly a decade: “two-state solution.”

Biden up front: U.S. President Joe Biden said last week that a “vision of what comes next” in the Middle East was needed despite the ongoing war, and that this “has to be a two-state solution” — an argument he later pressed directly to Israeli Prime Minister Benjamin Netanyahu in a call, according to the White House.

Seeing eye-to-eye: The U.S. appeal echoed one from EU leaders, who touted a two-state solution in the conclusions of their gathering last week in Brussels. They also appealed for an “international peace summit” to be held sometime “soon.” ICYMI, Barbara Moens and Jacopo Barigazzi had the story.

Good luck with that: Spanish Prime Minister Pedro Sánchez, who was behind the last-minute push for a peace summit, offered to host it in Spain “within the next six months,” though diplomats from other EU countries were much more circumspect, saying the summit language had been added at the last minute and that it wasn’t clear where or when it could take place.

Doom and gloom: It’s easy to be cynical about such appeals amid the ongoing devastation. An attempted peace summit in Cairo last week ended in failure, after Israel opted not to send a representative.

Europe, who? A quick scan of Israeli media shows Europe’s peace summit call was roundly ignored — not rating a story even in the left-leaning daily Haaretz. Critics call talk of a two-state solution “aspirational” — meaning not grounded in reality nine years after the Oslo Accords, the last big U.S.-led push to negotiate a peace deal.

Netanyahu in the hot seat: Yet the war is disrupting politics in the Middle East, including for Netanyahu, who on Sunday was forced to take down a social media post in which he blamed intelligence chiefs for Hamas’ October 7 massacre. Not only did he remove it, he replaced it with a new post saying “I was wrong” and that after the war “everyone” would have to answer “hard questions” about the “terrible failure” that led to the attack — “that includes me.”

Turning on Bibi: Polls show a huge majority of Israelis believes Netanyahu needs to “take responsibility” for the attack, and a smaller yet clear majority say he should resign after the war.

Growing opposition: While Netanyahu buried talk of a two-state solution amid a long search for accommodation with regional powers like Saudi Arabia, opposition leader Yair Lapid — a potential replacement for the right-wing leader — has voiced support for it even after the October 7 attack.

BLAST FROM THE PAST: Speaking to the BBC World Service over the weekend, two former Israeli and Palestinian peace negotiators were far less cynical than many Western commentators about the future.

‘No military solution’: Asked if the war had killed off any prospect of future peace between Israelis and Palestinians, Jonathan Kuttab — who represented the Palestinian side in the 1993 Oslo Peace Accords — said: “No, to the contrary. I think apart from the tremendous human cost that is involved I think it [the war] has some obvious things to tell us: There can be no military solution. Violence will never get Palestinians our freedom and violence will never give Israel their security no matter how overwhelmingly powerful they are.”

‘Political horizon’: Answering the same question, Gilead Sher, who negotiated for Israel, said: “We are in the midst of a horrible crisis, but we may get a political horizon out of it … I do agree there is no military solution.”

EU searches for relevance: The question for Europe is what role, if any, it can play in the Middle East’s future. The main result of EU diplomacy in recent weeks has been to expose the bloc’s own divisions. Calling for a peace summit is well and good — but leaders need to stop navel-gazing and back up rhetoric with action.

NOW READ THIS: France has seen more antisemitic incidents in the last three weeks than over the past year, Clea Caulcutt reports. The current crisis is exposing fault lines in French society — home to the world’s largest Jewish community after Israel and the U.S.

MEANWHILE, IN THE CZECH REPUBLIC: Defense Minister Jana Černochová called for the Czech Republic to leave the U.N. after the organization adopted a resolution calling for a humanitarian cease-fire in Gaza. “I’m ashamed of the UN. In my opinion, the Czech Republic has no business in an organization that cheers on terrorists and does not respect the basic right to self-defense. Let’s withdraw,” Černochová said on X.

MAKING MOSCOW PAY       

EU LEADERS WANT TO USE FROZEN RUSSIAN ASSETS: Amid all the focus on the Middle East, you may have missed that EU leaders endorsed unprecedented plans to use profits generated by frozen Russian state assets for Ukraine’s reconstruction, Paola Tamma, Jacopo Barigazzi and Laura Hülsemann report here.

I’ve heard this before: The EU has long floated the idea of taxing those profits for Ukraine’s benefit — but the European Central Bank and some EU capitals, including Paris and Berlin, have expressed doubts. They are afraid the move would roil financial markets and weaken the euro’s standing as a reserve currency.

You can do it: But the U.S. has pushed back against those arguments, as have some EU powers like Lithuania, whose finance minister pressed for using the frozen assets in a POLITICO op-ed in early October.

VDL’s backing: At last week’s summit in Brussels, Commission President Ursula von der Leyen asked leaders for a mandate to make legal proposals, pointing to a supporting statement from G7 finance ministers issued earlier this month, according to people familiar with the leaders’ discussions.

Moscow claps back: The move prompted an angry response from Moscow, which is preparing to confiscate the assets of “unfriendly” EU nations in retaliation if the bloc pushes ahead with the proposal, according to a high-level Russian official. Federica Di Sario has more.

EU BUDGET FOLLOW-UP       

FRUGAL WINDS PREVAIL IN EU BUDGET TALKS: While EU leaders are near consensus on providing extra cash for Kyiv, there is very little appetite to expand the EU’s long-term budget to finance other priorities, Paola Tamma and Barbara Moens report.

Big ‘no’ from the tightwads: “You could see a clear bloc of leaders emerging around the table — and it was not just the frugals — who were telling the Commission: ‘We cannot afford this,’” said one EU diplomat, granted anonymity to speak freely. “Do your homework and come back to us,” the diplomat said, adding this will be “a very difficult discussion” in the weeks and months to come.

What’s in it: The Commission’s request for extra funding includes a €50 billion aid package for Ukraine (consisting of €17 billion in grants and €33 billion of jointly backed loans), along with €19 billion to cover rising costs of paying off the EU’s joint debt.

OK for Ukraine: Most leaders agree on the need to continue financing Ukraine, which faces a budgetary gap of around €29 billion next year, according to its finance ministry — with only Hungary’s Prime Minister Viktor Orbán and Slovak leader Robert Fico expressing reservations.

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FOCUS ON SPAIN       

THIS WEEK — SPAIN’S SOCIALISTS DECIDE ON SÁNCHEZ’S CATALAN BARGAIN: Members of Spain’s Socialist Party will this week decide whether to back Pedro Sánchez’s deals with other parties that will allow him to remain prime minister, in a vote starting today and open until Saturday.

Cost of power: While the vote does not explicitly mention the controversial amnesty for Catalan separatists, Sánchez over the weekend for the first time clearly said he backed that policy “in the interest of Spain” — but also admitted that it was the price for a majority in parliament.

Cards on the table: Sánchez on Saturday gave a speech to his party, saying the amnesty for those involved in the illegal 2017 independence referendum — demanded by former Catalan President Carles Puigdemont in exchange for backing Sánchez — was a step toward “coexistence” with Catalonia.

‘Virtue out of necessity’: Sánchez admitted he had not backed the amnesty until Puigdemont forced his hand following July’s inconclusive election. “Courage also sometimes manifests itself in making a Spanish saying come true: that one must make a virtue out of necessity,” he said to the surprise of other party leaders, as El País reported.

Most Spaniards won’t get a say: While the Socialist party’s base will vote this week on the pact, other Spaniards won’t have a say on the coalition and the deal with the Catalan pro-independence Junts party — if they did, it would likely fail. Some 70 percent are against the amnesty, according to a recent poll.

Risky for Sánchez: Spain’s centrist and right-wing parties have criticized the move as a sort of deal with the devil — jeopardizing the rule of law for a machiavellian power play rather than concern for Spain or Catalonia. The issue is highly emotional for many, with some taking to the streets against the prospect of an amnesty — and could yet turn into a bigger political upheaval.

Prominent critics: Even more worryingly for Sánchez, many of his own voters and prominent party members oppose the deal. At Saturday’s Socialist leadership meeting, Emiliano García-Page, the president of the Castile-La Mancha region, criticized it. Former socialist PM Felipe González has also slammed it, as has Catalan writer Javier Cercas.

Risks down the line: While no big elections are planned before the EU ballot in 2024, Puigdemont has made no secret of his ultimate goal: Catalan independence. If the separatist movement resurges, many Spaniards will inevitably blame Sánchez and his Faustian bargain.

PERSONNEL FILES       

IN ’T VELD LEADS BELGIAN VOLT LIST: Dutch European lawmaker Sophie in ‘t Veld has been elected to lead Volt’s list for the European election in Belgium. In ‘t Veld, an MEP since 2004, quit her national party D66 in June in frustration over its stance on the EU.

GERMAN ÖDP NOMINATES RIPA FOR EU ELECTION DESPITE BULLYING CLAIMS: German ecologist party ÖDP, which is part of the Green group in the European Parliament, on Saturday nominated its only current MEP Manuela Ripa to lead its list for the European election. Ripa faced a campaign from some of her own staff to block her run for reelection amid claims of bullying. Read the full story from Barbara Moens and Eddy Wax here.

MARK RUTTE FOR NATO? Dutch Prime Minister Mark Rutte said on Saturday that he would not rule out taking on the top job at NATO. The secretary-general role is “very interesting,” he said on Dutch radio. More from Jones Hayden here.

IN OTHER NEWS       

AUSSIE TRADE DEAL GOES DOWN UNDER: Last-chance negotiations on a trade agreement between Australia and the EU have fallen through, Australian Trade Minister Don Farrell said on Sunday. The talks, held on the sidelines of a meeting of G7 trade ministers in Japan, were seen as a last-ditch attempt for the two sides to reach a deal before the EU entered its election season. More here from Camille Gijs.

VDL TOURS THE BALKANS: Ursula von der Leyen is on a four-day tour of the Western Balkans to discuss the EU’s growth plan for the region. The visit comes amid rising tensions between Serbia and Kosovo. Von der Leyen is in North Macedonia today, and will also visit Kosovo, Montenegro, Serbia and Bosnia and Herzegovina. The Commission’s progress reports on candidate countries will be released on November 8.

HOW DRONES CHANGED WARFARE: Ukraine’s early adoption of “first-person view” drones gave Kyiv an advantage on the battlefield. But now Russia — and others — are learning from Kyiv’s methods, Veronika Melkozerova writes in her story on the $400 drones killings $2 million tanks.

RUSSIA’S SHADOW FLEET: Russia’s fleet of unregistered, rickety maritime vessels is growing, creating more risk to law-abiding ships and the environment, Elisabeth Braw writes in a column for POLITICO.

SPYWARE IN EUROPE: Forget the EU’s reputation as a global tech enforcer. For surveillance companies, anything goes. Antoaneta Roussi explores how Europe became the Wild West of spyware.

AGENDA       

— European Commission President Ursula von der Leyen in North Macedonia; meets with Prime Minister Dimitar Kovačevski and President Stevo Pendarovski … visits Kosovo; meets President Vjosa Osmani and Prime Minister Albin Kurti. Press conference with Kovačevski at 10:30 a.m.; with Osmani at 2:10 p.m. Watch.

— European Parliament President Roberta Metsola is in Paris. Visits the Panthéon to pay tribute to the former President of the European Parliament Simone Veil, together with the French Secretary of State for European Affairs Laurence Boone … meets the President of the French Senate Gérard Larcher at 5 p.m. … delivers a keynote speech at Sorbonne University at 6:45 p.m. Watch.

— Commission Vice President Věra Jourová is in Bucharest; meets with Romanian President Klaus Iohannis … with Prime Minister Ion-Marcel Ciolacu … with Justice Minister Alina Gorghiu … with Research and Digitalization Minister Bogdan-Gruia Ivan … speaks at roundtable on challenges and opportunities for Romania’s digital tech sector and visits the European Cybersecurity Competence Centre.

— Commission Vice President Margaritis Schinas is in Lima, Peru; meets with Peruvian Presidents Dina Boluarte … Foreign Minister Ana Cecilia Gervasi … Interior Minister Vicente Romero Fernández.

— Climate Action Commissioner Wopke Hoekstra is in Abu Dhabi, United Arab Emirates; attends the pre-COP28 ministerial meeting for international climate talks meets with South African Minister of Forestry and Fisheries and Environmental Affairs Barbara Creecy.

— German Chancellor Olaf Scholz is in West Africa until Tuesday; visits the cities of Abuja and Lagos in Nigeria and Accra in Ghana … meets Nigerian President Bola Tinubu; Ghanaian President Nana Akufo-Addo and the Chairman of the ECOWAS Commission Omar Touray.

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BRUSSELS CORNER       

TERROR ARREST: Spanish police arrested a man on Friday suspected of involvement in the recent terror attack in Brussels. The suspect was subject to an arrest warrant issued by Belgium for drug and arms trafficking, money laundering and membership of a criminal organization.

Shadow hanging over Council presidency: Government blunders around the terror attack have cast a cloud over Belgium’s upcoming EU Council presidency. The country wanted to impress in those very areas where it has now clearly failed: migration and the fight against organized crime, Pieter Haeck reports.

MARATHON FOR UKRAINE: Over 10,000 people in 65 countries, including in Ukraine and Belgium, ran “the world’s longest marathon” on Sunday to support those fighting Russia’s war in Ukraine. Participants in Brussels included the Ukrainian Chargé d’Affaires to Belgium and Luxembourg Natalia Anoshina, several diplomats and members of the Ukrainian community.

NO FLIGHTS TO ISRAEL: Brussels Airlines won’t fly to Tel Aviv until at least November 30, it announced on Friday. The decision applies to all carriers owned by the airline’s German parent group Lufthansa, which also suspended routes to Lebanon until November 14.

BIRTHDAYS: MEPs Juozas Olekas and Elena Lizzi; Former MEP Clare Moody; POLITICO’s Annabelle Dickson; The Times’ Bruno Waterfield; APCO’s Robert Kopitsch; TEILOR’s Olivia Drãgușin; Accountancy Europe’s Johan Barros; Jeppe Tranholm-Mikkelsen, former secretary-general of the Council and a POLITICO 28 alum; Global Counsel’s Adam Terry; Former U.S. Ambassador to the Netherlands Pete Hoekstra; Former senior adviser to the president of the United States Ivanka Trump.

THANKS to Nektaria Stamouli, Barbara Moens, Mark Scott, Playbook reporter Ketrin Jochecová, editor Jack Lahart and producer Dato Parulava.

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