The Regulatory Iceberg reveals deep, systemic challenges

The obstacles to a functioning EU digital single market are not isolated legal conflicts, but stem from a systemic confluence of legislative incoherence, fragmented institutional governance, and an innovation-inhibiting regulatory culture. Effective policy must address all three layers of the "Regulatory Iceberg"—legal, structural, and cultural—simultaneously to achieve sustainable simplification.

Current simplification efforts are necessary but insufficient for effective reform

While the Digital Omnibus and other recent initiatives represent important first steps, the widespread and systemic nature of the challenges identified—including conflicts between the GDPR and EU AI Act—demonstrates that much more is required to boost European innovation. Urgent and ambitious reform is needed to move beyond immediate fixes.

Achieving digital competitiveness requires a paradigm shift in governance and cooperation

Europe’s future success in digital innovation depends on moving from a reactive, “zero-risk” enforcement model to a proactive, learning-oriented regulatory culture. This shift must be underpinned by robust cooperation mechanisms across the ecosystem (industry, SMEs, researchers, regulators) to ensure policy design is evidence-based, future-proof, and technologically informed.