Europe’s digital reset: simplification or strategic gamble?

Simplification has always been a political promise in Brussels. From the early crusades against red tape in the 1970s to today’s calls for a “paradigm shift,” history shows that cutting complexity is easier said than done. The EU’s digital rulebook, built layer upon layer over the past decade, is now a dense forest of overlapping obligations: GDPR, Data Governance Act, Data Act, NIS2 AI Act and more. Each was designed to protect rights and foster trust, but together they have created a compliance maze that even the best legal teams struggle to navigate.

Against this backdrop, the European Commission’s Digital Omnibus Package promises a reset. It aims to streamline rules, reduce administrative burdens and give businesses breathing space. But simplification is not just about deleting articles. It’s about designing systems that serve users without sacrificing trust. And that’s where the tension lies: between competitiveness and consumer protection, between clarity and legal uncertainty.

Beyond simplification, the Commission is also looking at the bigger picture through its new Data Union Strategy: a cornerstone of Europe’s ambition to become an AI powerhouse, designed to tackle data scarcity and strengthen sovereignty in a world where data has become a geopolitical asset. Yet questions remain: can Europe’s Common Data Spaces truly rival hyperscalers? Interoperability and incentives for private-sector participation are still unresolved.

What’s in the package and when will it bite?

The Digital Omnibus is pitched as a clean-up operation for Europe’s digital framework:

• It folds overlapping laws into the Data Act and repeals outdated instruments like the Free Flow of Non-Personal Data Regulation.
• It introduces a Single-Entry Point for incident reporting, a long-standing industry request to end the costly duplication under GDPR, NIS2 and sectoral rules.
• Cookie consent banners, the bane of every user, could finally disappear thanks to browser-based signals.
• GDPR gets a refresh with clearer definitions, harmonised Data Protection Impact Assessment (DPIA) templates and extended breach notification deadlines.

On paper, this looks like progress. In practice, it raises a familiar question: will privacy safeguards keep pace with flexibility?

The Digital Omnibus enters into force immediately after publication, but its flagship tools, like the Single-Entry Point, will roll out gradually, with full functionality expected by 2028. Cookie consent reform applies almost instantly, while transitional provisions for repealed acts stretch to 2032.

The AI Simplification proposal is even more politically charged. The Commission wants to delay the toughest obligations of the AI Act for at least 16 months:  Annex III covers high-risk AI systems in sensitive areas like biometrics, critical infrastructure (data centres, road traffic systems), education, employment or law enforcement. Systems listed in Annex III would not bite until December 2027. Those tied to sectoral safety laws in Annex I get until August 2028. These phased approaches reflect the Commission’s attempt to reconcile ambition with feasibility.

But transitional uncertainty could create compliance whiplash, especially for SMEs, if negotiations drag past August 2026 and original rules briefly apply before being rewritten.

However, the Commission reserves the right to pull deadlines forward if standards and guidance are ready, giving companies as little as six months to comply.

For businesses, this is welcome breathing space. For lawyers, it’s a headache: until the Omnibus is adopted, legal certainty hangs by a thread.

Parliament’s take: A digital reset under fire

• EPP calls the Omnibus “a critical boost for Europe’s industrial competitiveness” and urges swift adoption. “Every euro spent ticking a box is a euro not spent on innovation,” said MEP Eva Maydell.
• S&D warns against “unacceptable deregulation” and vows to protect hard‑won rules: “We need to enforce rules, not weaken them,” said MEP Alex Agius Saliba.
• The Greens/EFA says the plan risks “rolling out the red carpet for Big Tech” and demands stronger enforcement.
• Renew Europe: Supports cutting red tape but insists GDPR and rights must remain intact.

This EPP–S&D split could open the door to a repeat of the Green Deal episode, where the EPP teamed with far‑right forces to roll back rules. If that playbook returns, an EPP/far-right majority could push core Omnibus provisions through despite centre‑left resistance.

What are the opportunities with the Data Union Strategy?

While the Digital Omnibus focuses on cleaning up overlapping rules, the Data Union Strategy aims to tackle scarcity head-on by expanding Common European Data Spaces in sectors such as mobility, health and even defence. The objective is to link them to AI factories and data labs.

The first milestone comes in December 2025 with the launch of Europe’s first data labs to boost data availability and provide trusted pseudonymisation services. Early 2026 will bring a legislative proposal for the “Cloud and AI Development Act” to hardwire interoperability across data spaces and AI ecosystems. The roadmap accelerates from mid-2026 onwards. We expect a stakeholder forum with public broadcasters and AI developers, alongside a crowdsourcing drive for domain-specific and linguistic datasets in smaller European languages. Toward the end of 2026, the “Quality Data for AI Initiative” will expand high-value datasets under the “Open Data Directive” and make 30 million digitised cultural objects available for AI training.

Execution will be critical: without clear governance and strong incentives for cross-border data sharing, Europe risks building silos instead of a true union.

The Road Ahead

Europe’s digital reset is a strategic bet on competitiveness, trust and sovereignty in a data-driven world. Success will hinge on execution and on incentivizing private-sector engagement. As AI adoption accelerates and become a geopolitical asset, the question is whether Europe can turn regulatory complexity into a platform for innovation.

The next challenge? Moving from compliance to leadership in global digital standards.