Reforming EU Digital Regulation to Strengthen Germany as an Industrial Location

The use of artificial intelligence and data in industry presents significant opportunities for Germany as a business location. According to a recent study by the think tank IW Consult, the market size of industrial AI applications and services is already up to €52 billion and is expected to grow to around €380 billion by 2035. However, we will squander our location's key competitive advantages if we do not establish industry-suitable digital regulations. Therefore, the EU Commission's “Digital Omnibus” must create practical rules that enable innovation rather than hinder it.

Companies across all industries are facing considerable challenges:

• The volume of regulatory measures has increased exponentially in recent years, especially in the digital sector. During the last legislative period alone, the Bruegel Institute recorded 116 new EU legal acts and initiatives related to digitalization.
• Double regulation and a lack of coherence between legal acts are placing a significant burden on companies and fragmenting the New Legislative Framework (NLF), the European product safety law.
• Double regulation and digital law dysfunctions are also increasing legal uncertainty, as well as administrative adjustment and implementation costs.