From bureaucracy to breakthroughs: How Europe’s digital simplification drive can foster innovation
Every tech‑driven company in Europe knows the feeling: a breakthrough idea is ready for the market — yet before it sees daylight, legal teams must decode overlapping AI, data‑sharing and privacy rules whose application often differs from one Member State to the next. The European Commission has acknowledged the cost of this labyrinth and is preparing a Digital Package for Simplification. The moment is ripe to replace fragmentation with clarity and to turn compliance from a drag on innovation into a catalyst for it.
At Technology Industries of Finland, we urge EU decision-makers to focus on five key issues:
- Trim unclear, unnecessary and overlapping rules
Brussels plans to audit its digital rulebook, but an audit without follow‑through will not help. The fitness check must trigger an action plan that withdraws unnecessary legislative proposals, refrains from introducing new acts and fine‑tunes existing regulations — such as the AI Act, Data Act, and GDPR — where pain points are already clear. - Writing laws that machines (and humans) understand
The next generation of EU legislation must be “born digital” to avoid burdening businesses and authorities. Regulation in a machine‑readable format would allow companies to run automated compliance checks and file reports in real time via APIs. That single design choice slashes overhead, shortens product cycles and keeps small firms in the game alongside giants. Once in place, rules should face regular “fit‑for‑purpose” reviews, mirroring how software receives updates rather than waiting for a complete rewrite every decade. - One Europe, one enforcement playbook
Even the most elegant law falters if 27 different national authorities interpret it in their own ways. A well‑resourced EU AI Office, working hand in hand with data‑protection, competition and consumer agencies, can provide the missing center of gravity. Similarly, to enable a better balance between data protection and usage, The European Data Innovation Board should evolve into a credible counterpart for the European Data Protection Board. Shared investigations, joint training and clear guidance would create the predictability investors and innovators need. - RegTech: the quiet slasher of red tape
Behind the scenes, regulatory technology (RegTech) tools already automate privacy assessments and generate compliance reports at the click of a button. Europe should seize this advantage by funding a dedicated RegTech Innovation Platform. With targeted support, start‑ups can turn complex legal text into user‑friendly dashboards, freeing engineers to focus on product, not paperwork. While RegTech should not be seen as a substitute for better regulation, it can help alleviate the administrative burden that EU rules often place on businesses. - Building blocks for a real‑time economy
The European Business Wallet, common e‑reporting standards and an open data‑exchange layer form the soft infrastructure for seamless cross‑border business-to-business transactions and business-to-government reporting, make that vision real. Once in place, invoices, receipts and even sustainability metrics could move automatically across the Single Market, cutting costs and carbon alike.
Finland’s stake — and Europe’s
For Finnish tech firms, simpler rules mean fewer legal detours and faster scale‑up across the continent. For Europe, they mean a restored capacity to compete with regions where speed to market already reigns. Decision-makers now face a clear choice: embrace a coherent digital framework that invites investment, or watch innovation seek friendlier shores.
The Digital Package for Simplification is more than housekeeping; it is an economic strategy. Let’s make sure it lives up to its promise — and turns regulation into a springboard for Europe’s next wave of growth.
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