Trade-Offs and Risks in EU Digital Policy

"Europe finds itself in a digital trilemma. The demands for competitiveness, privacy and security are often in direct conflict with each other. Smart digital policies must therefore prioritise and make well-considered compromises," says cep digital expert Anselm Küsters, who co-authored the study with Cecilia Emma Sottilotta. "We suggest that increased cooperation with international partners and digital diplomacy can help the EU to mitigate conflicting goals," emphasises Cecilia Sottilotta, Professor of Political Science at the University of Perugia.

The study uses six case studies to highlight the most pressing challenges for EU digital policy. Although the focus on comprehensive privacy protection is legally exemplary, it also hinders innovation and competitiveness, especially of small and medium-sized enterprises. Küsters emphasises: "More flexible approaches such as more 'regulatory sandboxes' or clearer procedures for international data transfers could unleash the innovation potential of European companies to a greater extent without jeopardising data protection."

Another example is the regulation of platforms. While the Digital Services Act (DSA) aims to increase security and transparency, it poses risks to freedom of expression and could disproportionately burden smaller providers, according to Cecilia Sottilotta. In the area of cybersecurity, the study shows that national solo efforts by EU member states lead to an inefficient use of resources. The regulation of artificial intelligence (AI), where the AI Act sets high ethical standards, is similarly complex. According to Küsters, the EU should focus more on global forums in order to stay connected to international innovation networks. In the area of ICT infrastructure, the cep study recognises initiatives such as the European Chips Act and the IRIS² programme as important steps, but insists on the protection of the internal market. "Strategic autonomy is indispensable, but trade-offs in European digital policy can only be overcome in combination with global cooperation," concludes Küsters.