Startups Support Draghi: EU Bureaucracy Stifles Growth

Former Italian Prime Minister Criticizes EU Tech Regulations, Echoing Industry Concerns

A new wave of criticism has emerged surrounding the European Union’s regulatory approach to the tech industry. Former Italian Prime Minister Mario Draghi, in his landmark report on competitiveness, argued that the EU’s extensive regulatory framework stifles innovation and prevents Europe’s tech companies from thriving on a global scale. Draghi highlighted that the EU currently has around 100 tech-related laws, many of which create barriers for advancements in cutting-edge sectors, including artificial intelligence (AI).

This sentiment has been reinforced by tech giants such as PLACEHOLDERf8549cd4e50e75ba and PLACEHOLDERf83e3c73041ca6a6, who are intensifying lobbying efforts to push back against what they describe as regulatory “roadblocks.” These companies warn that Europe risks losing its active role in the AI boom if such constraints persist.

Supporting this view is data from a new tech industry survey that sheds light on negative perceptions of EU regulations among key stakeholders. According to the survey, 60 percent of respondents believe the General Data Protection Regulation (GDPR), introduced in 2018, has hindered the startup and scale-up landscape, while only 15 percent perceive its impact as positive. The remaining 25 percent found no significant effect.

The sentiment extends to the EU’s Artificial Intelligence Act, which has also faced pushback. A majority of 53 percent of respondents viewed its impact as harmful, while 27 percent saw no noticeable influence, and only 20 percent acknowledged positive outcomes stemming from the legislation.

“Anything that is perceived to create … different sort of conditions versus your competitors operating in other markets is something that is ultimately seen to be a handicap versus a tailwind,” noted Tom Wehmeier, a partner at venture capital firm Atomico.

The findings come from Atomico’s annual research initiative, which evaluates Europe’s tech performance. This year’s study collected responses from approximately 3,500 participants, capturing a wide snapshot of industry sentiment across the continent.

As debates over the balance between regulation and innovation continue, the survey underscores growing concerns that the EU’s policies, while well-intentioned, may inadvertently place its tech ecosystem at a global disadvantage.