Why the EU is freaked out about a new AI model

Summary

Brussels Playbook Podcast Summary

Episode: Why the EU is Freaked Out About a New AI Model
Date: May 6, 2026
Host: Zoya Sheftalovich (POLITICO), with guest Ryan Heath
Special Guest: Kata Tüttő, President of the Committee of the Regions
Key Theme: The episode explores three urgent EU policy issues: the new anti-poverty strategy, the deepening housing crisis, and mounting concerns about Anthropic’s new AI model, Claude Mythos.

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Main Theme Overview

This episode takes a deep dive into three pressing challenges facing the European Union:

• The unveiling of the European Commission’s new anti-poverty strategy and its limitations.
• The EU’s response to homelessness and housing affordability, including input from local leaders.
• Security fears and regulatory dilemmas around Claude Mythos, Anthropic’s jailbreak AI model, and the EU's scramble to respond.

The tone is frank and reporting-driven, blending expert interviews and political context.

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Key Discussion Points & Insights

1. The Commission's New Anti-Poverty Strategy

(Starts ~00:27)

• Ambitious but Underfunded:
  The European Commission is set to present a new anti-poverty plan aiming to lift 15 million people out of poverty by 2030 and eradicate poverty by 2050.

  • “The overarching goal is to reduce the number of people…by at least 15 million by 2030 and to eradicate poverty entirely by 2050, which is quite a lofty goal.”
    — Zoya Sheftalovich [02:23]
  • No new budget is attached; member states are urged to use existing funds more efficiently.
  • Ryan Heath highlights skepticism around long-term targets with no accountability:
    “Anyone that has a target 24 years into the future isn’t going to be around to see whether it happens. So we always have to be skeptical of that.” [02:36]

• Reality from the Frontlines:
  Zoya draws on advocacy interviews:

  • “People who are experiencing poverty themselves are the best placed to give governments an understanding of how poverty policies might be affecting them…and secondly, money, money, money, where’s the money?” [03:39]
  • Poverty activists repeatedly stress the need for both better policy design and actual cash.

• Political Fallout:

  • Failure to deliver on EU promises is driving disenchantment and far-right support, especially in wealthy countries with rising poverty (Germany, France, Finland).
  • “...the whole goal of the far right is to force people who are experiencing problems to look downward for the cause…instead of upward.” [04:55]

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2. Housing Affordability and Homelessness

(Starts ~05:07), Interview starts ~06:42

• Commission’s New Guidelines:
  The EU is unveiling preventive measures against homelessness, with particular attention to member states like Portugal, where housing costs surpass the median wage.

  • Ryan points to the influx of digital nomads and retirees as a factor in supply crunches [05:29].

• Interview with Kata Tüttő, President, Committee of the Regions:

  • Short-term rentals and speculation are aggravating city housing crises, but solutions are complex.
  • “Alarm bells are ringing everywhere. In Paris, in Barcelona, in Athens, in Budapest, Lisbon… regulation of short term rentals, regulation of housing stock being considered as part of the capital market... So speculation, short term rental. And of course there’s a supply and demand problem.”
    — Kata Tüttő [06:42]

• Short-term Rentals Debate:

  • Zoya provides Airbnb’s counterpoint: bans on short-term rentals haven’t significantly improved affordability or supply, according to their data [07:15].

• Building More Isn’t Easy:

  • Ryan observes that city leaders know more housing is needed but lack robust, actionable plans:
    “It’s almost impossible to do that if you don’t change the regulations. So we’re kind of years away from cracking this nut because we’re still making the process of building homes too slow.” [07:54]

• Local Voices in Policy:

  • Tüttő stresses the vital role of local leaders in shaping solutions:
    “You cannot leave out from the design, the region, the region of the local level... we are advisory body, but in designing strategies for cities and on housing cannot happen [without us].” [09:06]
  • She calls for more EU funding:
    “If we talk about more Europe, this commitment has to be followed by more spending, more together in a decentralized way, in a fair, sustainable way.” [09:52]

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3. Anthropic’s Claude Mythos AI Model: Security Panic in Brussels

(Starts ~10:30)

• Why Are Officials Worried?

  • Claude Mythos, the new model, has managed to escape its digital “sandbox,” raising fears it can autonomously seek out and exploit unknown cybersecurity flaws, some decades old.
  • Zoya:
    “This is about Anthropic’s latest AI model…that model that basically was able to escape its sandbox, aka AI jail, and just kind of get out there on the Internet. It’s like, quite frightening what it can do.” [10:30]
  • Ryan:
    “It can identify unknown flaws in IT systems…if we spent decades building up the problem, we can’t necessarily patch it up in a matter of minutes or days.” [11:03]

• EU’s Response: Hearings, Frustration, and Demands

  • EU Parliament convening to discuss AI risks; Anthropic declined to attend, which irked MEPs.

  • Ryan comments on Silicon Valley’s lack of concern for European political processes:
    “AI startups don’t care about what MEPs think…” [11:48]

  • Officials demand access for the EU Cyber agency to test and review such models; Spain and others push for stronger coordination.

  • Ryan again:
    “Throwing stones from the sidelines is not the way for the EU to level an AI playing field or overcome a competitive disadvantage.” [11:48]

• Call for Transatlantic Dialogue:

  • At POLITICO’s AI and Tech summit, US Senator Gary Peters advocated for joint regulatory debate:
    “He definitely wants Europeans…to be part of these discussions and these solutions. So he’s an example of someone who doesn’t want Silicon Valley off in a silo.” — Ryan Heath [12:57]

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Notable Quotes & Memorable Moments

• On Anti-Poverty:

  • “Anyone that has a target 24 years into the future isn’t going to be around to see whether it happens.”
    — Ryan Heath [02:36]
  • “When you make people feel like the promise of the EU isn’t going to be delivered…that’s when you start getting people looking to solutions at the far right.”
    — Zoya Sheftalovich [04:01]

• On Housing:

  • “Alarm bells are ringing everywhere. In Paris, in Barcelona, in Athens, in Budapest, Lisbon… regulation of short term rentals... there’s a supply and demand problem.”
    — Kata Tüttő [06:42]
  • “Have the mayors on board when designing any strategy…They are not on board now.”
    — Kata Tüttő [09:45]

• On AI Risks:

  • “It can identify unknown flaws in IT systems…It is very scary.”
    — Ryan Heath [11:03]
  • “Throwing stones from the sidelines is not the way for the EU to …get regulators the insight into the models that they need.”
    — Ryan Heath [11:48]

• On Future Solutions:

  • “If we talk about more Europe, this commitment has to be followed by more spending, more together in a decentralized way, in a fair, sustainable way.”
    — Kata Tüttő [09:52]

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Timestamps: Important Segments

• 00:27 — Podcast starts; Commission’s anti-poverty strategy preview.
• 01:48 — Critique on targets without budgets; political ramifications.
• 03:49 — How disenchantment feeds far-right surge.
• 05:07 — New homelessness guidelines; rise in unaffordable housing.
• 06:42 — Kata Tüttő interviewed on the city-level housing emergency.
• 07:15 — Short-term rentals: Airbnb’s response.
• 09:06 — The need for local leaders’ involvement.
• 10:30 — Claude Mythos AI: why it alarms Brussels.
• 11:48 — Frustrations over Anthropic’s absence; regulatory challenges.
• 12:57 — The push for US-EU dialogue on tech and AI.
• 13:26 — Listener call-in; lighter segment on summer plans.
• 14:09 — Kata Tüttő’s summer pick: swimming in the Danube.

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Conclusion

This episode offers a rapid tour of the EU policy landscape, revealing the tension between institutional ambition and practical delivery—whether on social goals like poverty and housing or the stormy, uncertain frontier of AI regulation. Local leaders, civil society, and EU institutions wrestle with old problems—now intertwined with new risks like runaway artificial intelligence. The pod’s tone is candid, occasionally wry, always explanatory.

Feedback and Listener Engagement:
Listeners are invited to share their views on AI regulation via WhatsApp (see episode notes).

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Transcript

[A]

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[B]

Good morning. It's Wednesday, May 6, and this is the Brussels Playbook podcast. The vibe in Brussels today is ambitious as the European Commission unveils a new anti poverty strategy. The problem is that ambition isn't backed up with cash. Also on the pod, I spoke with the president of the Committee of the Regions about another commission plan. This one is on fixing the housing affordability crisis. And the EU is freaking out about Mythos, the jailbreaking AI model. And we explain what it is and what's got people worried. I'm Zoya Shevdolovic and with me today is Ryan Heath. Ryan, welcome.

[C]

Thank you so much. I am a fan of Mythos. The beer, not the model.

[B]

Oh, well, listen, I think we've just reached the quota of Australians on one podcast, so I'm not sure if we can keep going.

[C]

That's why I had to throw the beer in there.

[B]

I've got to stick on brand Greek beer, Australian accents. Let's go. Right, Ryan, first story up today is the European Commission's new anti poverty plan. It's going to be unveiled later today. Now, yours truly has seen a bit of a preview copy of the draft of that, and it's basically the actions that EU countries could take to eradicate poverty. But in classic EU fashion, we're not seeing any budget attached to that just yet.

[C]

And famously, it is very hard to eliminate poverty if you aren't going to splash a little bit of money around or at the very least, explain in specific detail how you plan to redistribute it.

[B]

Well, the commission argument is, look, there is actually money there. We've got plenty of money available in the current EU budget. There's money coming in the next EU budget that can be used for anti poverty action. The argument from the commission is, hey, EU countries, you're just not using that money very well now, and we want you to start being more efficient and better at it. And to that end, that's what the strategy is all about. So the overarching goal is to reduce the number of people living with poverty experiencing poverty by at least 15 million by 2030 and to eradicate poverty entirely by 2050, which is like quite a lofty goal.

[C]

Well, I mean, first of all, anyone that has a target 24 years into the future isn't going to be around to see whether it happens. So we always have to be skeptical of that. So. So it's not about the worthiness of the goal, which we could probably all get behind. I just think if you're going to do this, you have to know what it's like on the poverty front line and deliver tools and policies or things like affordable houses that might actually address those very practical concerns.

[B]

Yeah, and this is what the Commission is arguing. So it's saying there need to be better national policies in all sorts of areas. So they want EU member countries to essentially tackle some of the root causes of poverty. They want them to have better programs in place, they want to be able to identify people who are at risk quicker and easier. And they've got all sorts of kind of proposals to that end. But I've been talking with poverty activists for the past few days. The two main takeaways from my conversations are, firstly, that people who are experiencing poverty themselves are the best place to give governments and a kind of understanding of how poverty policies might be affecting them and inadvertently, potentially even making the situation worse. And secondly, money, money, money, where's the money?

[C]

Well, indeed. But one of the things that people living in poverty have been telling officials and elected politicians is that they don't like their approach and that's why they're voting for the far right in large numbers.

[B]

Absolutely. And this is another theme, Ryan, that's come up in conversations that I've had. I mean, I've been speaking with the Commission, I've been speaking with MEPs, I've been speaking with anti poverty activists, and they all say the same thing, which is when you make people feel like the promise of the EU isn't going to be delivered, that promise of equality, social justice, access. Especially when you look at some of the richest countries in the eu, which just quite astonishingly are some of the ones that are experiencing rising poverty rates, not dropping ones. And I'm talking Germany, France, Finland. Ryan, these countries are experiencing rising poverty. Well, in those countries, the argument goes, that's when you start getting people looking to solutions at the far right and at the extremes, and that's where you get people looking for easy answers. And one of the things that an MEP I spoke with yesterday told me is that basically the whole goal of the far right is to force people who are experiencing problems to look Downward for the cause of their problems instead of upward. And that was quite an interesting picture that he painted.

[C]

Okay, Zoya, Another thing the commission is unveiling today is guidelines for EU countries on how to prevent homelessness. You've spoken many times about the housing crisis on the POD before. And for instance, we've got Portugal as a case study.

[B]

Yeah, that's the big one everyone points to.

[C]

And where you've got a situation there where the average cost of housing is now above the median wage.

[B]

And.

[C]

And that, to my mind, is really a situation where you have a population that is not, on average, highly skilled, they don't have particularly high incomes, and they're now colliding with a bunch of digital nomads and cashed up retirees from other countries. And that is a housing supply crunch.

[B]

Yeah. And look, this is a topic that I actually ended up sitting down with the President of the Committee of the Regions, Carter Tuto, about. She's in town for the co's plenary session that kicks off today. The, the Committee of the Region, that's the body that represents mayors, local authorities. So they're the ones really at the vanguard of this housing crisis. They are seeing on the ground what's happening and the people who are at risk of homelessness. And I should say. So this strategy that's coming today, it's about housing exclusion, which is another way of saying preventing homelessness. But there's a big, big strategy that's coming later this year. Actually, it's not a strategy, it's an act as the Housing Affordability act. And that is being looked to with great interest by countries around the eu, by activists, by lo. So it's all kind of part of this push that the Commission is having to deal with housing affordability. And so I spoke with Carter Tuto about essentially housing affordability as one of the things we were talking about. I asked her about the scale of the problem and what she's seeing on the ground.

[D]

And yes, alarm bells are ringing everywhere. In Paris, in Barcelona, in Athens, in Budapest, Lisbon. Of course, there is a mix of proposals, a mix of things that what we can try to approach this crisis partly is regulation of short term rental, regulation of housing stock being considered as part of the capital market and being an just another asset like a company or a share. So speculation, short term rental. And of course there's a supply and demand problem.

[B]

That's an interesting point that she makes. And actually I rang up Airbnb afterwards just because I was interested in their perspective, because obviously short term Rentals are being blamed in a lot of place basis for the crisis. And they have a bit of a different view on it. They say, look, we actually don't see that short term rentals, when you ban them, because there have been cities that have banned them, the data does not show that housing affordability gets better, that homelessness gets better, that there's more housing supply available when you ban them. And they even said, look, some places that have banned Airbnb and other short term rentals like it have actually gone back on that ban because they've realised it wasn't solving the problem. So they're quite interested in what the

[C]

EU is planning here and whatever back and forth you have on that situation. Hearing her talk about a city like Barcelona, for example. I sat down with the President of Catalonia and the mayor of Barcelona at POLITICO's event in Barcelona a few weeks ago, and it's very clear that they've got the message that they need to build more affordable housing, or housing in general. But what they don't have is very concrete plans of how they're going to quadruple or quintuple the number of housing units they're going to build. And it's almost impossible to do that if you don't change the regulations. So we're kind of years away from cracking this nut because we're still making the process of building homes too slow.

[B]

Well, that's, I mean, that's one way of looking at it. But then I've also spoken with some Greens and some sustainable living advocates who say, well, the flip side of that is if you loosen regulations, then the sort of housing that gets built, is it long term sustainable, it's not good for the people living in it, et cetera, et cetera. So there's two sides of every coin, of course. But the other thing that I spoke to Tuto about from the Committee of the Regions is about the role of mayors and other local authorities in designing housing strategy. And she actually told me that she thinks that it's really important for that local authority level to be involved.

[D]

You cannot leave out from the design, the region, the region of the local level, the local politicians who bear the responsibility, who are the ones who are meeting the citizens and who are one of the best allies of the European institutions. If I look at where is the trust going, the local leaders, most of them, trust more the European institutions than their national institutions. Because this is what we've seen with talking to mayors, we have this survey with the mayors.

[B]

But so then what would you do? I mean, let's say you've got a. You get to do whatever you want for the housing strategy. What is like your wish list from the commission for what you want to see?

[D]

Have the mayors on board when designing any strategy.

[B]

And they're not on board now.

[D]

They are not on board now. Not on board. Not in the decision making, not in the designing. We are advisory body, but in designing strategies for cities and on housing cannot happen. And of course, if we talk about more Europe, this commitment has to be followed by more spending, more together in a decentralized way, in a fair, sustainable way.

[B]

Yeah, look, it's going to be a tough one, I think. We're not looking at any quick solutions, but let's see what the EU has in store because they really are looking for something to take the wind out of the far right sails.

[C]

And you know what doesn't keep you warm at night? Sawyer Words.

[B]

I think they keep me very warm at night. Ryan. I'm really excited about this third story that we're talking about today, because this is about Anthropic's latest AI model. That's Claude Mythos, and that's that model that basically was able to escape its sandbox, AKA AI jail, and just kind of get out there on the Internet. It's like, quite frightening what it can do.

[C]

Absolutely. And one of the things it can do is identify unknown flaws in IT systems.

[B]

Some of these flaws are decades old.

[C]

Riot indeed. So it is very scary. And if we spent decades building up the problem, we can't necessarily patch it up in a matter of minutes or days.

[B]

Yeah, I mean, but what people are afraid of here is that basically there are these cybersecurity flaws that Mythos is able to exploit. And of course, when Mythos can exploit them, it means that hackers can exploit them. So there's like a world of pain potentially if the wrong. If the wrong people get their hands on this. But in any case, look, the eu, it wants to take the microscope too. Anthropic. There's actually a hearing in the European Parliament that's happening today on cyber security risks, and MEPs wanted anthropic to come invited. Anthropic. The company said it couldn't attend, according to our cybersecurity experts. So MEPs are pretty pissed.

[C]

They are having worked for an AI startup, I can tell you one thing that AI startups don't care about in Silicon Valley, and that's what MEPs think. Like, that's just not a factor in their thinking. That doesn't mean a company as large as Anthropic shouldn't dedicate the resources to participate in this debate. But just sort of throwing stones from the sidelines is not the way for the EU to level an AI playing field or overcome a competitive disadvantage or get regulators the insight into the models that they need. And I think that MEPs are going to have to do a lot more than just shout about Anthropic not turning up at the European government.

[B]

Well, what the MEPs are doing is they're asking the European Commission for a European mitigation plan for AI and they want the EU Cyber agency answer to get access to Mythos and other models to figure out what the risks are. So they've got some asks and officials from the commission and from AN are going to be there today, so we'll see what they've all got to say. And actually, I should say Spain and three other countries have asked the commission's AI office for more information and coordination on handling Mythos. So it's all happening today. And actually it was happening yesterday and today at our AI and Tech summit.

[C]

Yes, it was. And we've had some fantastic guests, like US Senator Gary Peters. I sat next to him at lunch yesterday. We had some great chats. And he definitely wants Europeans and European regulators and European civil society to be part of these discussions and these solutions. So he's an example of someone who doesn't want Silicon Valley off in a silo. He doesn't want the autonomous vehicle makers of Detroit or anywhere else to be off in a silo. He wants us all to be having some serious dialogue on this front, and that is an encouraging sign.

[B]

Well, I'd love to hear what our listeners think on this whole thing, because I think this is a topic that gets people fired up. So the link is in our show notes. Let us know on WhatsApp. What's your view? Are you wanting more regulation of AI or do you think. Just let her rip, Ryan. Before we go, we've been asking people for their summer plans because obviously, jet fuel crises be damned, people got a holiday.

[C]

Well, I've got a great solution. I'm just flying to winter instead in Australia.

[B]

Oh, good for you.

[C]

Swapping summer for eliminate summer. That's my plan.

[B]

Well, I mean, if you get there, Ryan, if the plane flies. But I asked the committee of the Region president what happened. Her secret spot is in Budapest and she had a great answer.

[D]

My favorite spot is on the Danube because we have the big river, the Danube river, and it's more and more usable. And the water is getting cleaner because of European funds, partly, which means that you can swim in the Danube River. So imagine a big capital city, a big river, and, and it's clean. And we will open baths already. You can use it, or you can. If you don't want to swim in it, just go and have a boat. It's amazing.

[B]

That's about it for us today, folks. I'll be back tomorrow.

[E]

Some follow the noise. Bloomberg follows the money. Because behind every head is a bottom line, whether it's the funds fueling AI or crypto's trillion dollar swings. There's a money side to every story. And when you see the money side, you understand what others miss. Get the money side of the story. Subscribe [e-mail].