European Elections: Will the Results Strengthen Tech Regulation or Tech Competitiveness?
The center-right European People’s Party (EPP) emerged strengthened. Its electoral power allowed it to reelect German Christian Democrat Ursula von der Leyen for a second term as European Commission President.
While von der Leyen has prioritized green and digital agendas (both arguably hampering European growth), voters are demanding a different path. One unifying idea is concern about lagging European competitiveness. In 2008, the EU and the US enjoyed about the same GDP — over $14 trillion — but in 15 years, the US nearly doubled its economic output to $27 trillion, while the EU’s barely increased to over $16 trillion. Major competitiveness reports from Enrico Letta and Mario Draghi (both former Italian Prime Ministers) have stimulated a discussion across the political spectrum.
What actions will help Europe catch up generates a divisive debate. The EPP is pragmatic and pro-business. Expect it to continue advocating for policies that support economic growth and innovation. At the same time, the EPP wants to corral Big Tech. It advocates stringent regulations such as the Digital Markets Act targeting major US tech companies that Europeans use to access the single market.
This approach is hypocritical. While the EPP supports business interests, it veers into protectionism. It seems more concerned with the interests of European incumbents than with growing the broad tech ecosystem.
Another critical election takeaway concerns the growing popularity of far-right parties. They already have taken power in Italy and could soon form a government in France. Marine Le Pen’s RN won a record number of votes in the first round of parliamentary voting, amid the near collapse of President Emmanuel Macron’s centrist party. Le Pen and other far-right parties made significant gains in the European Parliament, becoming the third-largest political grouping.
The far right disagrees with the Digital Services Act which is designed to combat online illegal content, from hate speech to dangerous toys and cosmetics. Far-right representatives, including Belgian MEP Tom Vandendriessche and French National Rally MEP Mathilde Androuët, argue that the DSA must clarify its definition of hate speech, making it easier for them to criticize immigration.
The far right has historically been skeptical toward European integration. Expect hostility toward foreign technology, whether Chinese or American. Also, expect hostility toward attracting foreign talent to Europe crucial to powering tech startups.
On the other side of the political spectrum, the Pirate Party, known for its strong stance against digital advertising, suffered significant losses. It dropped from three seats to one in the Czech Republic (where it has historically been one of the more popular parties). Prominent lawmaker Marcel Kolaja, who was under consideration to become the next Czech European Commissioner, did not win his seat. Similarly, the German Pirates’ representative, Anja Hirschel, failed to get elected.
The Pirate losses suggest that a niche focus on digital privacy and open operating systems failed to move voters. They have prioritized bread-and-butter economic issues.
The strengthened position of the pro-business EPP, combined with the loss of seats for tech-focused MEPs and the rise of the anti-regulation far right, suggests European politicians may be wary of dramatically increasing intervention in the digital economy. An emphasis will be on enforcing existing laws.
Hopefully, there will be room for a substantive debate about a positive vision for European tech policy. The continent needs a balanced approach that fosters innovation and investment while protecting citizens. This means finding mechanisms to improve single-market integration and overcoming far-right objections. It also means attracting top talent and venture capital, perhaps benefiting from an anti-Trump backlash.
The election of a new European Parliament represents just the first step. Political parties and national political leaders will now negotiate to determine top jobs and committee seats. So far, centrists have won the key leadership roles: European Commission president von der Leyen, foreign policy chief Kaija Kallas, and European Council President António Costa. The far right, while threatening to take control in Paris, has been kept far from power in Brussels.
Europe’s leaders must nourish a robust and competitive European tech sector. Only if Europeans enjoy access to the best digital tools in the world can the continent close its competitiveness gap.
Kayvan Hazemi-Jebelli (Kay) is Senior Director for Europe at the Chamber of Progress, a technology industry association based in the US. Kay has over four years’ experience in digital policy and a decade of experience as a competition lawyer in private practice, in the European Commission Directorate-General for Competition, in academia, and as Senior Legal Counsel at a leading UK media and communications company.
Bandwidth is CEPA’s online journal dedicated to advancing transatlantic cooperation on tech policy. All opinions are those of the author and do not necessarily represent the position or views of the institutions they represent or the Center for European Policy Analysis.
The post European Elections: Will the Results Strengthen Tech Regulation or Tech Competitiveness? appeared first on CEPA.