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EU Tech Alliance SecGen warns: We are moving away from a truly single market, the cornerstone of European competitiveness, if we have 27 national fragmentations of EU rules

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Interview conducted by Robert Lupițu

Europe’s tech companies need a single set of rules with one interpretation, not 27 national interpretations, and their voice to be taken into account at EU level, says Victoria de Posson, Secretary General of the European Tech Alliance, the umbrella organisation representing Europe’s leading tech companies providing innovative services to 500 million users. In an interview with CaleaEuropeană.ro in the context of the adoption of the manifesto on the future of Europe’s digital policy, Victoria de Posson says the tech industry wants to ensure that Europe becomes competitive by adopting a European strategy for tech companies, having a European approach and listening to the voice of the industry.

“European, national and regional measures should complement each other, not clash or duplicate efforts. (…) The ink was not even dry on the Digital Services Act (DSA) when some EU countries added extra layers of regulation at national level,” said the European Tech Alliance Secretary General.

Victoria de Posson warned that if “particular emphasis is not placed on avoiding national fragmentation where EU legislation exists”, then “we are moving further away from a truly single market, which is the cornerstone of European competitiveness”.

According to the industry, the European strategy for tech companies should unlock “the power of data as a key lever for innovation, while respecting consumer privacy”.

The EUTA Secretary General also insisted on smart regulation and fair competition.

“We need one set of rules with one interpretation, not 27 interpretations. Ultimately, we need to ensure that this interpretation takes place consistently. We need more cooperation between Member States,” said Victoria de Posson.

Full interview:

CaleaEuropeană.ro: First of all, Victoria de Posson, the Secretary General of the European Tech Alliance, thank you for this interview for Calea Europeană. We know that you published on the 27th of November a bold and forward-looking manifesto on EU digital future by 2030. According to the manifesto in terms of geopolitical and economic instability, you are saying that promoting homegrown tech businesses has never been more central and more important to achieve the European Union’s wider goals. First of all, what are the main key points of this manifesto? What drives it forward?

Victoria de Posson: The first point is to ensure that competitiveness is achieved in Europe. We keep talking about it. It’s now time to strengthen it, and each that competitiveness in Europe in the next five years. We suggested three approaches to reach this competitiveness.

First adopting a European strategy for Europeans tech companies.  For instance, we need to unlock the power of data to allow European tech companies to use data in a privacy friendly manner. Another example would be to help them attract talents like developers.

A second point is adopting a European lens. It comes through harmonization and adopting a European approach when looking at markets including for merger and acquisition.For instance, you can be a big player in Romania, but still a small one at European level. When authorities are looking at merger and acquisition, we invite them to take a European perspective.

A third point is to ensure that European tech companies’ voices are taken into consideration when EU rules impact them. For the moment, laws are often developed with a few stakeholders in mind and do not always consider their impact on European companies.It’s critical to  consult European companies more in the future.

CaleaEuropeană.ro: So the three points are strengthening Europe’s competitiveness with  a European strategy for European technology, prioritizing smart rules and a better enforcement of regulations in order to have fair competition.

Victoria de Posson: The three points that I mentioned were part of the competitiveness chapter: Develop a European strategy for European tech companies, adopt a European lens and bring in the voice of European tech companies.

The second chapter is on smart rules: We need to make sure that the rules are properly enforced, and that they have enough time to be enforced before being reviewed. When new rules are created, a good impact assessment is needed to make sure that they will fit with the existing legislative landscape. There cannot be overlaps or clashes with other rules. The new rules should be problem-based and adapted to the business models and not go for a one-size-fits-all approach.

The third chapter is about enforcement for fairer competition. EU rules should be enforced properly, and in a fair manner. For instance, national authorities should be as strict with their national champions as with international companies. Another point would be to have a consistent interpretation of EU rules. We need one set of rules with one interpretation, and not 27 interpretations. Lastly, it must be ensured that this interpretation happens consistently. We need more cooperation between the member states.

CaleaEuropeană.ro: Since you mentioned the smart rules section, how do we define smart rules in this endeavor, because you also mentioned the overlapping of legislation? Do you feel, as an entity that represents digital players in Europe and tech players in Europe, that there is a clash between the idea of having smart rules and the overlapping of norms? And can you give us an example where the overlap affects your members?

Victoria de Posson: What we mean by giving time for enforcement, is to make sure that when the law is adopted, it has enough time to reach its objectives before it’s assessed. For instance, we see that the EU commission is now reviewing its consumer framework with the EU consumer law refit. The omnibus Directive is partially reviewed while it only started to apply in May 2022. In such a short timeframe, it will be difficult for the Omnibus Directive to reach its objectives. So before reviewing rules, we need to give the market time to produce the intended effects, especially when a few member states are late to implement the new law(s).

When it comes to making sure that the rules are properly assessed, we must make sure that we have a good mapping of what works, what doesn’t work and of potential overlapping rules. New rules need to be based on strong impact assessments which are evidence-based and representative of the whole European continent.

When it comes to avoiding overlapping rules: European, national, and regional measures should complement each other, not clash or duplicate efforts. The ink of the Digital Services Act (DSA) was not even dry when some EU countries added extra layers of regulation at national level, such as the French law for online influencers and the proposed bill to secure and regulate the digital space. There must be a strong focus on avoiding national fragmentation where EU laws exist. Otherwise, we are moving further away from a truly single market that is the cornerstone of European competitiveness.

CaleaEuropeană.ro: And how can the European Union balance on that because we know that we have this big idea over our head that we are the main regulator feel, we are the pioneers of inventing and creating norms to make it more easy but also more difficult at the same time. So how can we balance this?

Victoria de Posson: It’s very important to say that rules are not bad. We are proud of Europe’s ability to invent rules: Making sure that consumers are well protected, maintaining the rule of law, and having transparency laws. With size comes greater responsibility. Now, the challenge is to enforce the rules on every actor in the same manner. Whether a company is based in Europe or not, as long as it targets European consumers it has to comply with EU rules.

CaleaEuropeană.ro: Since you mentioned the competitiveness, I want to ask you two ideas that I noted. What are the key elements that should be included in this European strategy for taking competitiveness to address the needs in the private sector? This is the first question and the other one: what is the role that we envisage for the public private partnership should play in this European tech strategy?

Victoria de Posson: In the European strategy, we would, for instance, need to unlock the power of data as a key lever for innovation while respecting consumer privacy. Privacy enhancing technology, like pseudonymization should be further promoted by European lawmakers to empower European companies to use data in a privacy friendly manner. We need to make sure that EU companies can use data in a privacy friendly way, allowing them to grow and remain competitive.

Another example is to make sure that EU companies are still attractive. Today, European tech companies’ resources are taken by compliance. Sometimes, it is assumed that this compliance consists of a few lawyer, but actually compliance means several developers implementing the law, instead of improving interfaces, services, products or consumers’ experiences. For a developer, it’s not the most interesting task to do. It’s very important to ensure that developers are still willing to work for European tech companies.

To your second question about improving the public private partnerships: One way would be to involve companies in the early stages. When policymakers consider new initiatives, they must have a good understanding of what currently exists, of the good and the bad practices. Sometimes, laws are created against a certain company or against a certain practice. These practices are not always representative of what’s happening in the market. Policymakers should have a better understanding of what’s happening on the grounds and of the good practices that are in place. It would help them create better laws.

When the proposed EU rules at in the hands of co-legislators, we have seen new services being added in the scope with no impact assessment for these new services being added. For instance, the rules on distance marketing of financial services were aimed at financial services. However, the co-legislator extended the scope.

It would have been better to have a good impact assessment and understand the impact of such an extension before making it law.  When it comes to enforcement. We believe that lawmakers should have the right resources to understand how innovation and technology works.

CaleaEuropeană.ro: You touched some ideas on retaining talent. So, we need a European tech strategy. We also need digital skills. I’m also speaking for Romania which is a very good IT country. Looking at the DESI index, we have a lack of digital skills. We are winning on the rules field, but we are losing the battle for hearts, minds, and creativity with other global markets. So how should the European Union address all these challenges to retain talent, and also keep top tire professionals here in Europe within the technological sector?

Victoria de Posson: First, we should not have a limited reading of digital skills. It’s not only coding or about developers. It’s a lot bigger than that. We have to make sure that we attract all talents and all digital skills. Second, we could improve the visa policy to attract talents from abroad, making it easier for digital talents to access the Schengen area.

CaleaEuropeană.ro: And one last question. We understand that this manifesto is a part of an ongoing debate for the future of digital Europe by 2030 and there can be no good debate without the public sphere. So what are your expectations after this manifesto from the EU institutions, the Commission, the Parliament, the Council, considering also that 2024 will be an election year so we will have a lot of overlapping movements from this mandate to the next one.

Victoria de Posson: In terms of procedures, we know that the institutions are busy finalizing the files until February, more or less.

After February, as of March, they will be more focused on what’s upcoming. For instance, the upcoming Belgian Presidency of the Council of the EU will reflect on how to improve the Commission’s operations.  It will be quite interesting to see what is coming out from the Belgian Presidency. Another aspect is what the services of the Commission are preparing for the next Commissioners.

And of course, from the Parliament side, the future members of the European Parliament are looking at what should be done and what could be improved over the next few years.

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Marcel Ciolacu underlines the importance of the European elections on 9 June: I want to live in a free Romania and a free Europe. These elections will be about principles, defending values, and the rule of law

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During the event “Living better with Europe” at the Palace of Parliament, Prime Minister Marcel Ciolacu expressed his desire to live in a free Romania and Europe.

Stressing the importance of the 9 June elections throughout Europe, he pointed to the need for dialogue between the major European families to defend democracy. Ciolacu said that his government was striving to implement social democratic values in Romania and to represent the specificity of the country within the European Union.

The Prime Minister also discussed the economic and social challenges facing Europe, stressing the importance of finding the best solutions to defend the European economy and national economies. He highlighted the changes in European political philosophy, stressing that priorities have adapted to the new demands.

Ciolacu also spoke about the importance of Romania’s membership in the European Union and NATO for the country’s security and prosperity, mentioning the important contribution of European funds to Romania’s development.

The Prime Minister highlighted Romania’s efforts in supporting the Republic of Moldova and President Maia Sandu in the European path of the neighbouring country. He also stressed the importance of a strong social democratic party in Moldova.

Finally, Marcel Ciolacu stressed that the upcoming elections will be about principles, defending values and the rule of law, but also about the economy, expressing his confidence that Europe mainly needs social democracy at this time.

The “Living Better with Europe” event, held at the Palace of Parliament, under the auspices of PSD and PES activists Romania, hosted leading figures from the European social democratic family such as Iratxe García Pérez, the chair of the S&D Group in the European Parliament, and the group’s vice-chair Gabriele Bischoff.

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INTERVIEW Mathieu Michel, Belgian Gov State Secretary: For competitiveness in EU, it’s time to slow down regulation and speed up enforcement and implementation

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@ European Union 2022

The time has come for the European Union to slow down regulation and speed up the application and implementation of digitisation legislation in order to be competitive, said Mathieu Michel, State Secretary for Digitisation in the government of Belgium, the country holding the six-month presidency of the Council of the European Union, in an interview with CaleaEuropeană.ro.

“The network is made up of a lot of industries, companies, but also SMEs, and the best way to help them exercise the capacity of their business model is to help them have a real, single market when it comes to implementation. The first thing would be to build common governance,” Michel said.

He cited the example of EU legislation on Artificial Intelligence, saying that the European Union wants to avoid 27 different national interpretations of AI, especially as the ethics and liability issues around the use of AI will be linked to the relationship with companies and SMEs.

“What the industry wants is simplification of regulation, if you look, for example, at the AI law. (…) This is very important because if you look at big companies like Meta, Google and so on, they have lots of lawyers who can accompany these companies through the European regulation. think the competitiveness relies on smaller SMEs of today and the way they will be able to have an easy life in deploying their business model. That’s why it’s not the regulation that’s the problem, it’s how we implement it,” explained the Belgian state secretary, as the Belgian presidency of the EU Council tasked former Italian prime minister Enrico Letta with drafting a report to boost the European single market and boost EU competitiveness.

Speaking also about the future of the telecoms industry in the context of an expected communication from the European Commission, Mathieu Michel raised the importance of cyber security. “A common shield” he said, adding that the cyber resilience law is linked to telecoms.

Full interview:

CaleaEuropeană.ro: You are one of the responsible from the Belgian Presidency of the EU Council for digital Europe, for moving forward Europe as a technological actor and also in the industry of digital and telecom. On the digital transformation of Europe can you elaborate a bit what are the key priorities of the Belgium presidency when it comes to us digital transformation?

Mathieu Michel: There’s been an evolution of regulation, which came for the actors of digitization: DSA, DMA, GDPR. A first message connected to all that with those regulations is to say: it’s time to slow down regulation and speed up enforcement and implementation of those regulation. For example GDPR. The way we implemented GDPR all across Europe, through the 27 member states was a little bit like silos and we think it’s time to build a common governance, a more coherent implementation of the regulation. That’s why our first message would be let’s slow down regulation and let’s speed up implementation. It’s deeply connected to competitiveness. Your web is composed with a lot of industries, companies, but also SMEs and the best way to help them to unleash the ability or the opportunity with their business model is to help them to have a real single market when it comes to implementation. And so the first part would be let’s build a common governance. It’s a little bit like the same if we speak about the AI.  We just ended the the discussion about the AI Act. The way we will enforce the AI will be really important, and we need to take the challenge on a unique single owner. Let’s slow down regulation and speed up implementation. That’s something very important.

CaleaEuropeană.ro: You touched on some ideas and now I want to go through each slice of it. Since you mentioned the Artificial Intelligence Act, which we all know that is the first of its kind in Europe and now you are practically continuing, based on the Spanish presidency legacy’ of this act. How do you plan to facilitate or contribute within your presidency, to develop a comprehensive as a framework for AI in terms of ethics, but also in in terms of transparency and accountability?

Mathieu Michel: We need to establish the AI mission. Who will be seated in the AI office, will be really important. An important contribution of Belgium for the last weeks, was to bring a discussion about definition that were in the AI act. The AI Office will be the authority which will accompany the implementation of the AI act. That’s something very important. If you look at the GDPR, the GDPR was foreseen in GPR that each countries had to deploy a Data Protection Authority. It means that alongside to GDPR, you have 27 different data protection authority. It means 27 different interpretation of the GDPR. That’s completely what we want to avoid with the AI act, not having breaches when deploying AI in Romania, in Italy or in France. It has to be confronted to the same interpretation of the text. And that’s where the AI office is really important. You spoke about ethics, accountability, how do we define it? How we ask reporting to the SMEs? It must be a simple way for them to report what they are doing. In that role, I think the AI office will have an important role to play: to avoid that those silo in terms of the interpretation or implementation.

CaleaEuropeană.ro: One of the flagships of your presidency will be competitiveness. It is also a part of the future EU Strategic Agenda that the leaders will set up within the Belgium Presidency , and you’re about to present a report commissioned by the Belgian Presidency through former Italian Prime Minister. How do you plan to foster innovation and competitiveness? You also mentioned speeding up implementation while reducing or not putting forward regulation. How do you see the relation with the industry in this part?

Mathieu Michel: I think what the industry wants is to simplify the line, if you look, for example, at the AI act. In Belgium we have a strong health ecosystem. For example, in terms of medical devices, there is already a lot of regulation on medical devices using artificial intelligence. It will be important to negotiate reporting. They’re saying, „okay for regulation, but please, make it simple to enforce”. Make it simple to implement in our line of daily life. That’s really important because if you look at big companies like Meta, Google and so on, they have armies of lawyers that can accompany those companies through the European regulation. I think the competitiveness relies on smaller SMEs of today and the way they will be able to have an easy life in deploying their business model. That’s why regulation is not the problem is the way we implement regulation. For the future, I think that there is a good balance that we must find, between innovation and twist. If you look at AI, that’s innovation, but we must be post worthy AI. 

CaleaEuropeană.ro: Can you give us some insights about this? From the public opinion view, it mirrors with what the Commission is doing with Mario Draghi report on the single market. We also had the annual Single Market Report, and this one with the competitiveness. They will be complementary?  What do you think that this report, the one Commissioned by the Belgian presidency will bring forward?

Mathieu Michel: The report that we will receive will show us the past to better accompany the competitiveness of our industries. If I take the example of the GDPR, the GDPR is a good regulation. But its implementation is done like silos. The way enforced for example, a company the regulation of GDPR is not the same as the Data Protection Authority in Belgium. For a SME, which deploys business model in force in Belgium, it will have two different way to deploy and switch its project and that’s not helping the competitiveness of your work. That’s the reason when we speak about regulation, and speed up it’s making for the companies that a more coherent way to implement the regulation. In terms of everything, but specifically on digitalization, artificial intelligence, and the way we can deploy and help our SMEs to deploy the creativity. That’s really important to understand. We live in a global competition all around the world. The way we will put more and more regulation in the bank for companies and SMEs, it won’t help them to be competitive. We will find the correct balance between letting them deploy the innovation and building trust through a strong governance. That’s why the AI office is not there to say to the SMEs: „okay, do what you want?”. It’s there to say: „we will help you to deploy your creativity”.

CaleaEuropeană.ro: Practically, you say that the attraction force for SMEs and for companies will be this balance between speed up implementation and simplifying regulation?

Mathieu Michel: If you want to implement in 27 different countries with 27 different strategies, it makes the life of SMEs more complex.  That’s a point. You can’t imagine 27 Data Protection Authority in Europe. So that’s the way we need to go.

CaleaEuropeană.ro: One thing also that is important that we want to touch upon is the fact that the European Commission will present a Communication for the future of the telecom industry, which is related to competitiveness and also is related to digital, to technology, to cybersecurity, as well. What is the engagement of the Belgium presidency for the future of the telecom industry and how do you see it in terms of regulation but also speeding up greater connectivity across the European Union?

Mathieu Michel: I can tell you there is two things that are really important about cybersecurity. The first one is the implementation of this tool. That’s really something important. I think, what will build a common protection shields on Europe needs to and so there is a technical definition that must come about disable security schemes, which may be really important to protect you or all the actors in EU. If you speak about cybersecurity, we must protect everyone: hospitals, SMEs, nuclear reactors, but also defense. So we have to prove that we can. The Cyber resilience act is more connected to telecommunication because it’s the way we build our hardware and the way our world is protected against cyber security threats. So those are two important files that we will have to follow.

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Interview| Minister Bogdan Ivan: Romania supports public-private partnerships as a tool to accelerate innovation and economic growth and promotes dialogue between the public and private sectors in key areas

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© Ministerul Cercetării, Inovării și Digitalizării/ Facebook

Romania supports public-private partnerships as a tool to accelerate innovation and economic growth and promotes dialogue between the public and private sectors in key areas such as technology or infrastructure, underlined the Minister for Research, Innovation and Digitalization, Bogdan Ivan, in a wide-ranging interview for CaleaEuropeană.ro on Romania’s actions and positions on the big digital and technology dossiers at European level such as the Interoperable Europe Act, the future of European competitiveness, cyber security and the future of the telecommunications industry.

Interoperable Europe. Romania’s vision and commitment

In his view, companies play a key role as ”providers of the technology that the administration wants to use to modernise Romania”.

So ”the state and the private sector can only evolve together for the modernisation of Romania”, Ivan replied to a question about the role private companies could play in innovation in the context of the Interoperable Europe Act.

The Romanian official also described the act as ”the European interoperability platform – this act is a Schengen agreement in IT, where borders disappear and technological solutions circulate freely in Europe”.

”This cross-border approach is even more relevant in cybersecurity because cyberspace has no borders and cyber attacks do not require visas. The Interoperable Europe Act targets both the public and private sectors: annual cost savings as a result of achieving cross-border interoperability range from €5.5 to €6.3 million for citizens and €5.7 to €19.2 billion for businesses, according to the European Commission. The forecast for business is that it could save up to 30 billion working hours per year. But the main benefits of the Act are for European citizens. Citizens could save up to 24 million hours (lost in queues and traffic) every year. Public institutions at local, regional and national level will have improved IT systems and administrative processes, so they will offer more efficient and accessible services to citizens. Interoperability will make it easier for EU Member States to work together across borders,” explained the Minister for Research, Innovation and Digitalization.

Bogdan Ivan added that ”the Act will promote a more favorable framework for public-private partnerships through a more efficient exchange of resources, expertise and technologies between the public and private sectors, with direct benefits in the development and implementation of innovative technological solutions in public administration”.

Asked about the measures adopted by our country to digitalize and improve the efficiency of public services through public administration modernisation projects, the Romanian official mentioned the NRRP projects, worth €6 billion, which have a final implementation deadline of 2026.

He also listed the main projects underway: the government cloud and the National Interoperability Platform.

”It is a paradigm shift for the way the citizen interacts with the administration and it is an internal revolution, of the administration itself. We already have an architecture in place for the future digital administration: Romania has an e-government strategy, a road-map with clear targets. We are working on a National Catalogue of Public Services in the central administration – in this catalogue, of the almost 3000 services inventoried, more than 50% are already digitized or partially digitized. We have the legal framework for big, decisive reform projects – the government cloud, interoperability: I personally participated in the drafting of the Interoperability Law and I know how relevant the impact of this law is for the efficient functioning of the Romanian state and for the well-being of every single Romanian”, said Ivan.

Competitiveness in Europe. Romania supports public-private partnerships to accelerate innovation and growth

Switching to another facet of the European Union, the competitive one, the Minister for Research, Innovation and Digitalization stressed that, in terms of regulation, ”Romania is balancing the need to ensure a robust regulatory framework that protects citizens with the need to maintain a flexible and innovative business environment”.

In his view, ”smart regulation is needed, which does not unnecessarily burden the private sector, but ensures compliance with a coherent legal framework and the protection of citizens’ data”.

”In the EU debates, Romania can contribute with proposals that reflect its national interests, but also those of the EU as a whole: promoting cohesion policy and supporting sustainable economic growth. We actively promote policies that encourage innovation and competitiveness, including through investments in digital education, research and development and innovation, and thus contribute to increasing the competitiveness of the Romanian economy, but also of the EU as a whole, on the global stage”, elaborated Bogdan Ivan.

Romania’s approach to the future of the telecom industry in Europe

In order to achieve the ambitious goals of the Digital Decade, as well as those of the European Green Deal, Romania has elevated connectivity to the status of a strategic sector.

”Rapid technological progress in priority areas for the EU, such as Cloud, Edge, AI, 5G, implies major investments in developing a high-performance and sustainable digital infrastructure, but also in strengthening cyber security. In addition, investments are needed in network capacity, implementation of next generation infrastructures, access to large amounts of reliable data, computing resources”, detailed Bogdan Ivan.

In addition, he stressed that “an integrated European approach could improve coverage across national border areas and support the EU in cases of harmful interference by third countries at external borders”.

”Removing obstacles, in particular diverse and difficult sectoral regulations, can facilitate the strengthening of cross-border cooperation. We have concrete, permanent contacts with the institutions at European level, we collaborate excellently with the competent institutions in Romania and we coordinate in defining Romania’s strategic objectives and in the tactical implementation of practical measures”, the Romanian official believes.

On how Romania is addressing the challenges of European regulation in the context of rapidly evolving technology, Bogdan Ivan said that ”for the Romanian Government, digital transformation is a country project”.

”Legislation must reflect the evolution of technology and European principles, which put the citizen at the centre and shape Europe as a global player with a decisive role in the promotion and development of technology,” says the Minister.

Cybersecurity: ”A strengthened cybersecurity legislation in Romania is an imperative for the digital systems of public institutions”

And because the digitalization of public institutions cannot be possible without cybersecurity, ”cybersecurity cooperation is not a luxury but a necessity in our digital age”, said Bogdan Ivan.

He called for ”a clear legislative framework, with short deadlines, which would provide a basis for rapid and effective action by the relevant institutions”.

”We have a National Cyber Strategy, which we updated on 31 January. We have strong institutions protecting our critical infrastructure. We have dedicated experts working tirelessly to counter cyber threats. IT experts recommend cloud solutions for public data infrastructure – these are considered to be the best protected against cyber threats. Romania has chosen the safest solution for cyber security – the government cloud. This 3rd millennium infrastructure helps to increase the security of Romania, located at the border of the EU and NATO. The government cloud is, according to our world-renowned cyber experts, Romania’s next line of defence”, he concluded.

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