The webinar “Competitive Harmonisation and the 28th Regime: Pathways for Europe to Effectively Improve Global Competitiveness” that we held on 30 October explored pivotal themes on EU competitiveness, regulatory fragmentation, and opportunities for reform within the context of the Single Market. The discussion moderated by ECIPE Director Matthias Bauer was framed by the Draghi and Letta reports, which highlight Europe’s need to reduce overregulation and address single market fragmentation to close the competitiveness gap with the US and China.
Dominic Doll, Senior Manager at ZVEI, underlined the critical role of legal harmonisation in digital and technology policies. He argued that while the EU has made strides in regulation, the sheer volume of overlapping rules such as the AI Act, GDPR, and Data Act creates many legal inconsistencies and administrative burdens, hindering competitiveness. “Existing regulations already comprehensively address the Commission’s objectives. There is no need for further legislation at the European or national level,” he stated. Instead, Doll advocated for eliminating redundant regulations and ensuring consistent implementation across Member States, citing the GDPR’s varied enforcement as a key example. He also highlighted the importance of fostering innovation through strategic investments in Europe’s strengths, such as industrial AI and robotics, while supporting startups without sidelining established industries.
Adam Bartha, Director of EPICENTER, echoed concerns about overregulation, noting that since the Lisbon Treaty, EU regulations have doubled in volume. He attributed Europe’s lagging position in global competitiveness to both excessive rules and single-market fragmentation.“ This is something that should have never existed in the first place,” Bartha remarked about the precautionary mindset underlying the AI Act, drawing comparisons to the US tech sector’s dynamism. He called for a pause on new regulations to allow businesses time to adapt and emphasised the potential of the 28th regime as an innovative framework for simplifying cross-border operations, standardising processes, and encouraging entrepreneurship. However, he warned that meaningful progress requires bold political leadership and a unified vision for reform.
The webinar also addressed broader challenges in EU policymaking. Regulatory silos within the European Commission exacerbate inconsistencies, and Member States’ divergent priorities typically stall meaningful reform. While the 28th regime offers a practical solution to sidestep treaty-level barriers, its success hinges on Member States recognising the urgency of reform.
Both speakers agreed on the necessity of strategic reforms to seriously improve the Single Market and equip Europe for global competitiveness. The discussion concluded with a call to action for policymakers to address inertia and complacency, urging prioritisation of harmonisation and innovation as the backbone of future economic resilience.
You can watch the full event below: