Q&A: How the EU's digital omnibus could boost SME investment

Roberto Viola, director-general of the Commission's DG Connect, is leading the effort o simplify AI, data and cybersecurity rules. But he warns that "simplification alone is not enough."
Roberto Viola, director general of the European Commission’s DG Connect unit, speaks at the Digital Life Design innovation conference, Munich, Germany, Jan. 13, 2024. (Matthias Balk/dpa/Alamy Live News)

By Francesco Puggioni

Francesco Puggioni is opinion & policy report editor at The Parliament.

07 May 2026

@fpuggioni14

Early last year, the European Commission began rolling out its so-called omnibus packages, a set of 10 legislative proposals designed to simplify regulations across a host of strategic sectors.

The seventh chapter in the series, presented last November and known as the digital omnibus, introduces targeted amendments, including easing access to personal data for artificial intelligence training and reducing compliance burdens under the AI Act. It also proposes a single procedure for reporting cybersecurity incidents.


This article is part of the The Parliament's special policy report "Unlocking investment for EU competitiveness."


In an interview with The Parliament, Roberto Viola, director-general of the Commission's DG Connect unit, said the digital omnibus aims to respond to companies' calls to "reduce uncertainty and cut red tape" and "shorten time to market."

According to him, harmonizing regulations and lowering administrative burdens could also save up to €5 billion in administrative expenses by 2029.

As trilogue negotiations on amendments to the AI Act continue to face difficulties, Viola argued that harmonizing the bloc's AI rules would be a crucial step in helping channel investment to small and medium-sized enterprises.

This interview has been edited for length and clarity.

Some analysts argue that omnibus packages are creating more uncertainty for companies and investors than the benefits of cutting red tape. How can you ensure that the digital omnibus will not generate similar ambiguity?

The purpose of the omnibus packages is clear: reduce uncertainty and cut red tape. During our negotiations with co-legislators, we will ensure that this remains the case.

The goal [of the digital omnibus] is to reduce confusion by simplifying complex [rules] so businesses know what's expected. Right now, companies worry less about the cost of following rules and more about unclear interpretations by different authorities. We also aim at making compliance a strength, not a burden. Simplification alone is not enough. Europe also needs more investment in innovation and stronger financial support to help businesses grow.

How should the Commission's recent shift toward deregulation be understood within Europe's long-term digital strategy, and to what extent could the end of the Trump era reverse this course?

The EU's partnership with the U.S. is fundamental. Europe is at a defining moment in how we position ourselves in the global digital markets and we need a very solid strategy to ensure that we stay competitive and relevant over the long term. We have a roadmap for this, anchored in the Draghi and Letta reports. 

Investment [and] an industrial policy [are] key; the Apply AI Strategy that is unfolding, the European Data Union Strategy complements it [and we have] the roll-out of infrastructure and AI gigafactories. We will soon propose the digital sovereignty package, with a set of measures to strengthen our resilience.

The Commission argues that deregulation under the banner of simplification will unlock investment. What concrete advantages will companies gain in AI, data protection and cybersecurity, once the digital omnibus enters into force?

We have been speaking with European companies over the past year and understood the challenges they are facing. With AI, you need to move extremely fast. Anything that can shorten time to market is a "make it or break it" opportunity.

With the AI omnibus, we adjust areas of the AI Act where we can cut costs for companies and [shorten] the application timeline.

The EU is [also] creating a single reporting system, like a one-stop shop, so businesses only have to submit information once — saving time and money. As a matter of fact, this could save businesses €5 billion by 2029, which is particularly relevant for SMEs and small mid-caps that face a disproportionate share of regulatory burden.

Given the lead of U.S. and Chinese companies in general-purpose AI, the EU can focus on AI models built for specific purposes. How will the proposed regulatory developments help European startups secure investment in these AI applications?

The race for AI leadership is just starting and Europe has the human capital, financial resources and market size to be among the winners.

Last October, we put forward the Apply AI Strategy, designed to enhance the AI uptake of strategic sectors. This includes sectoral flagships with measures to boost AI adoption across 10 key industry sectors and the public sector.

But this is not enough. We have also proposed support measures and actions to increase EU's technological sovereignty by tackling cross-cutting challenges to AI development and adoption.

The AI omnibus brings measures to ensure the effective and innovation-friendly implementation of the AI Act. These will benefit SMEs and small mid-caps and AI development in sectors. One point that I find crucial is that we extended innovation instruments like AI sandboxes and real-world testing to AI to be embedded in products.

Once startups are created, they need to scale. How can this happen without a common tax framework for companies operating across borders and without a pan-European digital business registry?

The EU wants to make it as easy for businesses to operate across Europe as it is in their own country.

The European Business Wallet is a key solution: a single digital tool that lets businesses handle compliance, processes and communicate with governments, and work with partners anywhere in the EU.

The business wallet will create a single business identity all over the EU and potentially with trusted partners around the world.

The Commission has proposed the Digital Networks Act and is reviewing merger guidelines, yet member states have long resisted ceding control over telecom markets. What gives you confidence the final legislation will be strong enough to reduce fragmentation among operators?

Strengthening European competitiveness requires access to fast, secure and resilient digital infrastructure across the EU. The legal framework — the EU Electronic Communications Code — being a directive, has resulted in national fragmentation and has failed to deliver a true single market.

The DNA will set the conditions for the single market in connectivity. The proposal introduces a "single passport" authorization system. Companies notify just one member state to operate across the EU. Standardized conditions mean less confusion, lower costs and faster tech rollouts, like 6G or AI-driven networks. It will provide consumer protection rules all over the EU.

Europe remains dependent on U.S. players like Visa and Mastercard for their payment infrastructure. What should the Commission do differently to help pan-European initiatives such as Wero close the gap with its American rivals?

The main challenge for new European payment systems, like Wero, is growing big enough to compete. They often struggle because of fragmented rules across different countries, making it difficult to expand smoothly.

A big part of the solution is the EU Digital Identity Wallet, which will roll out by the end of this year. Think of it like a secure digital version of ID or passport, stored on your phone. It will let you prove who you are, access services and make payments. The EU has already tested how these wallets can work with payments and they’re encouraging businesses to get involved early. The idea is to build a strong, European-controlled system that everyone can trust.

At the same time, the EU is working on a digital euro, a European form of digital cash. This wouldn't replace physical money or private payment apps but would give people another safe and reliable option, backed by the EU. It would also provide a solid foundation for European companies to build their own payment services.

The goal is to give Europeans more choice, better security and less dependence.

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