The new leader of the Catholic world, Pope Leo XIV, has made reducing the risks of “uncontrolled artificial intelligence” the defining mission of his papacy.

In his first official address to the cardinals, the new Pope warned against the dangers artificial intelligence poses to “human dignity, justice, and labor.” Two days later, speaking to journalists, he praised the technology’s “immense potential” while also emphasizing the responsibility to “ensure it is used for the benefit of all people.”

Like Pope Leo XIII, whose name he took and who called for “restructuring” relations between workers and capital during the industrial revolution in the last quarter of the 19th century, Leo XIV positions himself as a “guardian of the social fabric” against uncontrolled modern technologies.

Indeed, the new Pope had said he took this name pointing to the role of his predecessor, who published the famous papal encyclical Rerum Novarum, in “social matters.”

Franciscan friar Paolo Benanti, a Vatican advisor on artificial intelligence ethics, told POLITICO, “The Church asks us to look to the heavens, but also to walk on earth as the times require,” adding that it is not unusual for the church to offer expertise in such a futuristic field.

Maria Savona, an AI expert and professor of innovation economics at Luiss University in Rome and the University of Sussex, stated, “The Vatican wants to avoid certain AI developments that could harm human rights and dignity and disproportionately affect low-skilled workers.”

The Vatican’s efforts to secure a place for itself in artificial intelligence regulation began with Leo’s predecessor. In 2020, Pope Francis brought together technology companies like IBM and Cisco, as well as religious and political leaders, to sign the Rome Call for AI Ethics, a commitment to developing artificial intelligence technologies that are “accountable and benefit society.”

In January, the Vatican issued an official statement warning that artificial intelligence could lead humanity to become a “slave to its own work.”

Leo, the first pope from the US—the homeland of Silicon Valley and the tech revolution—and a mathematics graduate, is in a “unique position” to carry this banner, according to POLITICO.

Meanwhile, Washington is spearheading a deregulation move in the AI field. President Donald Trump rolled back the security rules set by his predecessor, Joe Biden, and announced a half-trillion-dollar AI plan with leading company OpenAI.

According to Benanti, the church’s role as an “expert in humanity” can encourage leaders, especially in Catholic countries, to “create AI that values people and aligns with social justice.”

In Leo’s first meeting with Italian leader Giorgia Meloni, the two pledged to continue working for “ethical and human-centered artificial intelligence development.” Last year, at Meloni’s invitation, Francis had addressed G7 leaders on artificial intelligence ethics.

Savona commented, “The Vatican’s interest in artificial intelligence is not strange. Francis also showed great interest in climate change, one of today’s significant problems. The Church’s mission is to adapt to the world while remaining true to its fundamental principles.”

Savona argued that as power concentrates in the hands of tech giants and wealthy nations, the Vatican could use its network in the “Global South” to ensure “more democratic access” to artificial intelligence and push for European-dominated regulations to be adapted to global standards.

On the other hand, Leo himself has fallen victim to AI-generated content. In the first week of his papacy, a YouTube video was published allegedly showing Leo praising Burkina Faso’s President Ibrahim Traoré for contrasting the Vatican’s wealth with poverty in Africa.

The Vatican stated that the video was a “deepfake” and part of a recent wave of AI-generated content on African platforms glorifying Traoré as an example of pan-African leadership.

In Germany, the new Merz government will attempt to pass a €46 billion corporate tax cut package during the summer months to pull the Eurozone’s largest economy out of stagnation.

Finance Minister Lars Klingbeil of the Social Democratic Party (SPD) is set to outline the main features of the measures at the cabinet meeting on Wednesday.

According to government estimates seen by the Financial Times, the cost of tax incentives, which include reductions for new equipment and new electric vehicles, will total approximately €46 billion by 2029, when the coalition’s term is due to end.

The draft bill states, “Following a period of economic stagnation, it is important to significantly increase the potential of the German economy.” The measures are being implemented with the aim of “giving a strong signal for Germany’s short and long-term competitiveness as a business location.”

These initiatives are in addition to a massive debt-financed public spending plan exceeding €1 trillion, aimed at modernizing Germany’s armed forces and outdated infrastructure. This plan is central to Chancellor Friedrich Merz’s efforts to revitalize the economy.

The leader of the Christian Democrats (CDU), who campaigned on a business-friendly platform, has also pledged to subsidize electricity costs for the country’s struggling manufacturing industry. Furthermore, a ministry has been established to reduce bureaucracy and accelerate the digitalization of administration.

Holger Schmieding, chief economist at Berenberg bank, commented that the planned tax cuts “will make Germany a good place as an investment location” but argued that this might be “just a beginning,” and that easing the regulatory burden would prove more challenging yet more critical.

From July 1st, companies will be able to deduct 30% of the cost of new machinery and other equipment purchased between 2025 and 2027 from their annual tax returns. Starting in 2028, the federal corporate tax rate, currently at 15%, will decrease by one percentage point each year, eventually reaching 10%.

Companies will also be permitted to depreciate 75% of the purchase price of new electric vehicles in the first year, thereby reducing their taxable income.

The government intends to introduce more advantageous tax incentives for research and development (R&D) spending.

Robin Winkler, head of German macroeconomics at Deutsche Bank, stated that the proposals would provide “a welcome short-term stimulus for the manufacturing sector.”

Merz and his coalition with the Social Democrats anticipate that the measures will be approved by both houses of parliament by the end of summer.

The Chancellor’s economic plan signals a policy shift in Germany, which until recently was the EU’s leading nation concerning fiscal discipline.

Economists caution that the threat of a 50% US tariff on European goods could push the economy into contraction this year.

According to the German development bank KFW, in the third quarter of 2024, Germany’s investment in factories, machinery, and vehicles remained 9% below pre-pandemic levels. During the same period, these investments were 11.5% higher in the US and 1% higher across the EU.

Public and private sector R&D spending was also comparatively lower than in other countries: KFW data indicates that while Germany increased its intellectual property spending by 11% relative to pre-Covid-19 pandemic levels, the US recorded a 36% increase, and France saw a 27% rise.

Geert Wilders, who yesterday threatened to withdraw his Party for Freedom (PVV) from the government, followed through on his word today, leading to the government’s collapse.

On Monday, Wilders had threatened to bring down the Netherlands’ already fragile right-wing government, asserting it did not back his proposals for more stringent asylum policies.

Wilders, victorious in the recent Dutch elections, last week urgently sought backing for his plans to halt all asylum applications, repatriate Syrian refugees, and shutter asylum shelters.

Last week, Wilders had insisted the government endorse a 10-point plan designed to radically curtail migration. The plan featured deploying the military to secure land borders and deporting all asylum seekers.

His coalition partners declined to adopt his ideas, stating that the development of concrete proposals was the responsibility of the immigration minister, who is a member of Wilders’ own party.

After meeting with leaders of the government parties on Monday evening, Wilders declared this insufficient to maintain his support for the coalition.

Wilders told reporters, “We have a serious problem. We will address it again tomorrow morning, but the situation does not look good.”

Following Monday’s meeting, Wilders’ three coalition partners requested he submit tangible proposals for amending the existing agreement and voiced their frustration over his repeated threats to dismantle the government.

Dilan Yesilgöz, leader of the right-wing People’s Party for Freedom and Democracy (VVD), told reporters after the hour-long meeting, “If the aim is to ruin everything, say so openly.” Caroline van der Plas, leader of the Farmer-Citizen Movement party, asserted that “the Netherlands does not like quitters.”

In February, Wilders had also threatened to pull out of the coalition if two bills restricting asylum rights were not approved, though he ultimately relented.

The coalition, spearheaded by Wilders’ PVV party, has struggled to find common ground since its inception last July. It faced daunting decisions in the upcoming months, including a landmark increase in military expenditure to meet new NATO objectives.

Recent polls indicate a decline in support for Wilders since he joined the government, with his party now polling nearly neck-and-neck with the Labour Party/GreenLeft coalition, which currently stands as the second-largest bloc in parliament.