The European Commission invoked Article 113 derogations on March 22, suspending high-risk AI conformity assessments for 180 days as Iran war shipping disruptions crippled semiconductor imports. Germany, France, and Netherlands fast-tracked military/civil defense AI deployments, overriding February fines.

War Catalyst

Suez Canal closure (40% EU-Asia trade) and Hormuz Strait blockade halted 70% of ASML’s DUV tool deliveries. Germany’s BfDI approved 500+ unassessed surveillance systems; France deployed facial recognition at 200 ports without DPIAs.

National Responses:

– Italy: Real-time biometrics at migrant processing centers (previously prohibited)

– Netherlands: Predictive logistics AI at Rotterdam without human oversight

– Poland: Border drone swarms using Chinese-exported models

Industry Windfall

Thales/Atos contracts surged €8B; Mistral AI pivoted to defense-grade Pixtral-Mil. ASML received €2B emergency subsidies for domestic EUV production. Post-War Reckoning: Commission roadmap reinstates audits Q4 2026 with “battle-hardened” exemptions for strategic autonomy. War exposed EU’s 85% chip import vulnerability, accelerating Frankfurt’s “AI Foundry Continent” plan.