As calls for deregulation in the digital sector grow louder, representatives from 13 EU member states are gathering to prepare a joint appeal. Elimination of overlapping reporting requirements and clearer coordination feature among their demands.
In February, Dutch startup Bird announced it would leave the European Union and move its headquarters to the US. The company, which provides a communication platform for businesses, cited overregulation as the main reason for its exit.
It is not alone. Many promising European tech firms say the EU regulatory framework—far stricter than what competitors face across the Atlantic—prevents them from realising their full potential.
In response, the European Commission is working on yet another deregulation package, known in Brussels jargon as an “omnibus.” The initiative is to simplify certain reporting requirements under the Data Act. It could also extend to other key pieces of EU digital legislation — the AI Act, GDPR, and the twin pillars governing tech giants like Google, Apple, and Meta: the Digital Services Act (DSA) and the Digital Markets Act (DMA).
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Turning up the pressure
The push for deregulation traditionally originates within the member states. The latest signal will come from a D9+ summit in Portugal this week, where representatives from Belgium, Czechia, Denmark, Estonia, Finland, Ireland, Luxembourg, the Netherlands, Poland, Portugal, Slovakia, Spain, and Sweden are to meet to coordinate their stance.
“The main goal is to eliminate overlapping reporting requirements across different EU laws. We want these obligations consolidated under a single framework,” Jan Kavalírek, Czech government envoy for artificial intelligence, told EU Perspectives. He added that all digital regulations should be reviewed with simplification in mind — especially for small and medium-sized enterprises and open-source software developers.
Several other governments have also submitted detailed positions to shape the upcoming Omnibus package. Estonia and Luxembourg, for example, are calling for a smarter, more coherent approach rather than sweeping deregulation. Tallinn stresses the need for streamlined cybersecurity reporting, proportional obligations under the updated Network and Information Security directive, and legal clarity in data sharing. It argues that simpler, harmonised rules would help startups and SMEs thrive.
We propose a 12-month grace period from the publication of the implementing acts. Companies should have a full year to prepare. — Jan Kavalírek, Czech AI envoy
Luxembourg, meanwhile, champions the principle of “better regulation”, urging the Commission to prioritise implementation over constant new lawmaking. It warns that excessive layering of legislation risks undermining Europe’s digital competitiveness. It also calls for clearer coordination between the GDPR, AI Act, and Data Act, as well as a “one principle, one report” model to reduce administrative burdens.
Breathing room on AI rules
Mr Kavalírek has another goal in mind. During the summit, he is set to unveil a new Czech proposal calling for a 12-month delay in implementing the AI Act, which is now entering into force. The regulation targets high-risk uses of AI, banning some outright (such as remote biometric identification) while imposing strict monitoring and data transparency obligations on others.
“We propose a 12-month grace period from the publication of the implementing acts. Companies should have a full year to prepare once they actually have the necessary tools,” Mr Kavalírek explained.
He also urged the Commission to reassess which AI systems are classified as high-risk, emphasizing that Prague supports the risk-based approach of the law but wants to avoid unnecessary bureaucracy.
Not everyone on board
The meeting should result in a joint declaration from the participating countries, though its final form remains to be seen. What’s clear, however, is that the stance of these 13 deregulation-minded governments does not reflect the position of the entire EU.
Despite the Commission’s repeated emphasis on cutting red tape, not everyone is on board. On the contrary, according to information obtained by EU Perspectives, some large member states oppose easing EU legislation for tech companies. Several political groups in the European Parliament also oppose rolling back regulation, warning that Europe must not compromise its core values or regulatory ambitions under pressure from the US and its tech industry.
