A set of digital initiatives for European companies has been proposed by the European Commission to streamline regulations and data sharing. The initiative includes European Business Wallets, which the European Commission (EC) said will offer companies a single digital identity to simplify paperwork and make it much easier to do business across EU member states. 

Valdis Dombrovskis, commissioner for economy and productivity, said: “Today’s proposal represents an important first step in our digital simplification agenda, aiming to create a more favourable business environment for European companies.”

The proposals aim to reduce €5bn in administrative costs for compliance by 2029, while the European Business Wallets promises to unlock another €150bn in savings for businesses each year. 

Through the European Business Wallet, the EC plans to offer businesses a way to digitally sign, timestamp and seal documents. It is being positioned by the EC as a way to securely create, store and exchange verified documents, and to communicate securely with other businesses or public administrations in their own and the other 26 member states.

Among the measures being put in place is a simplification of the EU AI Act for smaller businesses. including technical documentation requirements, saving at least €225m per year. There is also a broadening of compliance measures for innovators providing regulatory soundboxes and real-world testing. The EC plans to have an EU-level sandbox ready by 2028.

The AI Office is being empowered to provide centralised oversight of AI systems built on general-purpose AI models, which the EC said would reducing governance fragmentation. The timeline for applying rules to AI systems deemed “high risk” is also being adjusted to a maximum of 16 months. This is to start once the EC confirms the needed standards and support tools for the companies developing such systems are made available.

From a cyber security perspective, the EC is proposing a single-entry point where companies can meet all incident-reporting obligations. General Data Protection Regulation (GDPR) is set to become more innovation friendly and the EC has proposed a Data Union Strategy to unlock high-quality data for AI by expanding access, such as through data labs. The EC claims the Data Union Strategy will also strengthen Europe’s data sovereignty through a strategic approach to international data policy by offering an anti-leakage toolbox, which provides measures to protect sensitive non-personal data and guidelines to assess fair treatment of EU data abroad.

“By simplifying rules, reducing administrative burdens and introducing more flexible and proportionate rules, we will continue delivering on our commitment to give EU businesses more space to innovate and grow,” Dombrovskis added.

The proposals include targeted exemptions to some of the EU Data Act’s cloud-switching rules for SMEs, which the EC said could result in around €1.5bn in one-off savings.

Finnish commissioner Henna Virkkunen, who is also responsible for tech sovereignty, said: “By cutting red tape, simplifying EU laws, opening access to data and introducing a common European Business Wallet, we are giving space for innovation to happen and to be marketed in Europe. This is being done in the European way – by making sure that fundamental rights of users remain fully protected.”

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