Finance
EU's Virkkunen says rule of law makes it reliable investment partner
Published by Global Banking and Finance Review
Posted on January 22, 2026
2 min readLast updated: January 22, 2026
Quick Summary
The EU's rule of law is key to its investment reliability, says Henna Virkkunen, focusing on tech sovereignty and AI compliance.
EU's Virkkunen Highlights Rule of Law as Key to Investment Trust
The Importance of Rule of Law in Investment
By Jeffrey Dastin
Attracting Innovators and Investments
DAVOS, Switzerland, Jan 22 (Reuters) - Europe's rule of law and reliability are critical to the case for investing in the continent given uncertainties in other parts of the world, the EU official responsible for tech sovereignty, security and democracy said on Thursday.
Addressing Security Threats
"Europe wants to really attract innovators and investment, and we are in the process, really to make Europe faster, easier and simpler for the businesses," European Commission Executive Vice-President Henna Virkkunen told Reuters.
AI Compliance and Regulation
Europe offered long-term certainty for innovation and investment as well as being "a reliable partner", Virkkunen said in an interview, adding: "It's also important for the investors to know that rule of law is respected here".
Virkkunen is tasked with addressing the security threats facing the European Union, while also strengthening the 27-member bloc's external borders and its internal security.
One of the areas of technology the EU is wrestling with is the rapidly developing use of artificial intelligence (AI).
Earlier this month, the European Commission ordered Elon Musk's X to retain all documents relating to its AI chatbot, Grok, for longer while the bloc ensures compliance with its rules after condemning it for producing sexualised images.
"We are now also analysing the changes they have made to Grok and to look (at) if it's complying ... if it's in line," Virkkunen said, adding it was "totally unacceptable" for AI tools to be used "to create that kind of non-consensual intimate images of people", particularly of children.
(Reporting by Jeffrey Dastin; Writing by Alexander Smith; Editing by Philippa Fletcher)
Key Takeaways
- •EU emphasizes rule of law for investment trust.
- •Henna Virkkunen highlights tech sovereignty and security.
- •Europe aims to attract innovators and investments.
- •AI compliance is a focus for the European Commission.
- •EU addresses security threats and external borders.
Frequently Asked Questions about EU's Virkkunen says rule of law makes it reliable investment partner
1What is the rule of law?
The rule of law is the principle that all individuals and institutions are accountable to the law, which is fairly applied and enforced. It ensures justice and protects individual rights.
2What is investment?
Investment refers to the act of allocating resources, usually money, in order to generate income or profit. It can involve purchasing assets such as stocks, bonds, or real estate.
3What is compliance?
Compliance is the process of adhering to laws, regulations, and guidelines relevant to an organization’s operations. It ensures that companies operate within legal frameworks and industry standards.
4What is financial stability?
Financial stability refers to a condition where the financial system operates effectively, allowing for the smooth functioning of markets and institutions, minimizing the risk of financial crises.
5What is the European Commission?
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the EU's policies and budget.
