The Commission, backed by France and Germany, aims to relax AI and data regulations to reduce the strain on European businesses. However, Members of Parliament and NGOs warn this could unleash a “pandora’s box” of adverse consequences.
As the European Commission readies a comprehensive plan to streamline digital regulations, scheduled for unveiling on Wednesday, Berlin organized a high-profile summit focused on digital sovereignty.
“I am eager to see what developments tomorrow will bring. Hopefully, it marks a significant and courageous step forward,” commented German Minister for Digital Transformation Karsten Wildberger during the panel in Berlin.
For several months, the European Commission has been drafting a proposal to “simplify” regulations, aiming to ease the administrative load particularly for SMEs that face challenges in adhering to complex EU frameworks, while also striving to retain talent within Europe and enhance competitiveness globally.
With backing from France and Germany, the Commission anticipates that the forthcoming digital simplification initiative, unveiled after extensive negotiations, will “save billions of euros and stimulate innovation”.
Nonetheless, this proposal has drawn skepticism from progressive Members of the European Parliament and civil society groups, who argue it threatens to erode existing safeguards.
The draft suggests alterations to rules governing data protection and the newly implemented AI Act.
According to a leaked draft, the requirements for “high-risk AI systems”—AI solutions applied to sensitive tasks such as CV analysis, grading exams, or assessing loan requests—and initially slated to apply from August 2026, are proposed to be postponed until December 2027. The European Commission cited challenges in setting appropriate standards as justification for this delay.
Originally, the responsibility for determining whether a system qualifies as “high-risk” rested with national authorities. The leaked draft, pending official approval, indicates this evaluation may be replaced with simple self-assessment, potentially weakening mechanisms designed to ensure regulatory compliance.
At the Berlin summit, French minister for AI and digital affairs Anne Le Hénanff expressed support for the postponement.
«The AI Act currently carries too many ambiguities, which hinder our capacity to innovate,” Le Hénanff stated. “The United States and China are leading the AI race. We cannot afford to constrain our companies’ innovation capabilities.”
German Minister Wildberger also backs the delay, emphasizing the need to maintain dialogue since global progress demands constant regulatory adaptation.
He advocated for a “learn-by-doing” strategy.
«We should not ban all potential risks beforehand. The focus must be on developing products first, then rigorously ensuring their safety and the adequacy of processes,» he added.
Parliament pushes back, warning of a dangerous Pandora’s box
Despite this, some Members of the European Parliament fear the Commission’s draft may open a “pandora’s box”, elevating consumer risks and disproportionately benefiting US Big Tech firms.
MEPs interviewed by Euronews, who requested anonymity as discussions remain ongoing and the plan is unofficial, shared concerns about Big Tech’s resistance to current rules and increasing lobbying efforts.
Members from political groups spanning the traditional majority, including The Left and centrist-liberal Renew, have already indicated intentions to oppose the proposal.
Other aspects of the plan include exemptions from reporting requirements for smaller enterprises and postponing the mandatory labeling of AI-generated content until 2027. Recent incidents like deepfake videos influencing the Irish presidential election—where an AI-manipulated clip falsely showed candidate Catherine Connolly withdrawing—highlight the risks.
A separate section of the omnibus aims to simplify the General Data Protection Regulation (GDPR). It seeks to facilitate data access for AI training, decrease the volume of cookie consent requests users receive, and harmonize GDPR enforcement across the EU, as current diverging national interpretations cause inconsistencies.
Advocates for online rights argue that the omnibus exceeds its mandate and jeopardizes fundamental protections.
A letter from three prominent NGOs addressed to Commissioner Henna Virkkunen warns that “the contemplated legislative changes far exceed mere simplification. They would deregulate key elements of the GDPR, the e-Privacy framework, and the AI Act, significantly diminishing established protections.”
On Wednesday, the Commission will also initiate a “digital fitness check” to evaluate the effectiveness of existing laws such as the Digital Services Act and the Digital Markets Act, identifying areas of overlap. This may lead to a further wave of regulatory simplifications.
“We plan to conduct an in-depth review of our regulations and subsequently propose another round of simplification efforts,” Commissioner Virkkunen stated.