This blog explores how policymakers can simplify regulation, balance digital sovereignty, and invest in AI-ready infrastructure to ensure Europe remains a digital leader in the global innovation race. This blog explores how policymakers can simplify regulation, balance digital sovereignty, and invest in AI-ready infrastructure to ensure Europe remains a digital leader in the global innovation race.

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Europe faces three critical challenges to maintain digital competitiveness: simplifying over 60 complex digital regulations that hinder innovation, balancing digital sovereignty with access to global technologies through risk-based approaches, and investing in AI-ready infrastructure including high-speed networks and energy-efficient data centers. Only 9% of European firms are fully prepared for AI, while regulatory complexity costs businesses significantly. Success requires harmonized rules, targeted sovereignty controls, spectrum allocation for Wi-Fi 6 GHz, and embedding security in infrastructure from the ground up.

Top Three Priorities in 2026 for Europe’s Digital Competitiveness

1. Unleash Growth Through Actual Regulatory Simplification

2. Strike the Right Balance on Digital Sovereignty

3. Build Strong Foundations and Connectivity for AI