The European Commission has presented an ambitious digital reform package designed to reduce administrative burdens, improve regulatory coherence, and boost innovation across the Union. By streamlining rules and providing new digital tools, the initiative aims to strengthen Europe’s competitiveness while preserving high standards of data protection, safety, and fundamental rights.
A central element of the reform is the digital omnibus, which simplifies legislation governing artificial intelligence, cybersecurity, and data. The Commission proposes an implementation approach for the AI Act that links the application of high-risk system rules to the availability of essential standards and guidance. This adjustment, accompanied by an extended timeline of up to sixteen months, is intended to give companies—particularly SMEs—the support they need to comply. Additional amendments expand simplified documentation requirements and broaden access to regulatory sandboxes, while centralising oversight of general-purpose AI models within the AI Office.
Cybersecurity obligations will also become less complex through the introduction of a single-entry reporting interface, replacing the current fragmented system spanning frameworks such as the NIS2 Directive, GDPR, and DORA. Targeted amendments to the GDPR seek to clarify and harmonise specific provisions without altering its core principles. Updated cookie rules will reduce repetitive banner prompts by enabling users to store preferences through central browser or operating-system settings.
The package further enhances data access through consolidation of EU data rules under the Data Act, exemptions for SMEs from certain cloud-switching requirements, and new model contractual terms. The accompanying Data Union Strategy aims to unlock more high-quality data for AI, establish a Data Act Legal Helpdesk, and reinforce Europe’s data sovereignty abroad.
A major innovation is the European Business Wallet, a unified digital identity tool allowing companies to securely sign, store, and exchange verified documents across Member States. With broad uptake, it could generate up to €150 billion in annual savings by reducing administrative costs and facilitating cross-border operations.