Stock Markets May 5, 2026 12:09 PM

European tech leaders urge simpler AI rules and stronger industrial policy

Seven chief executives call on Brussels to streamline the AI Act and loosen M&A limits to help European firms scale

By Hana Yamamoto AIR
European tech leaders urge simpler AI rules and stronger industrial policy
AIR

Seven CEOs from leading European technology companies published an opinion piece calling for a reduction and simplification of the EU's AI regulations, coupled with a stronger industrial policy and more permissive merger and acquisition rules to enable growth. The commentary comes as the European Union prepares to resume talks on revising the 2024 AI Act and ahead of the European Commission's Tech Sovereignty Package due on May 27.

Key Points

  • Seven leading European tech CEOs called for a reduction and simplification of the EU's AI regulations to avoid falling behind on scaling AI into physical systems and robotics - sectors closely tied to industrial technology and automation.
  • The group urged stronger industrial policy and more permissive M&A rules so European companies can grow, highlighting semiconductor and AI infrastructure as areas under negotiation in the European Commission's Tech Sovereignty Package.
  • The appeal followed a meeting with European Commission President Ursula von der Leyen and coincides with resumed EU talks this month on streamlining the 2024 AI Act, indicating potential near-term policy debate in the bloc.

AMSTERDAM, May 5 - A group of seven chief executives from major European technology companies have urged regulators to reduce and simplify the European Union's AI rules, arguing that the current approach risks leaving the bloc behind as others move to scale artificial intelligence into physical systems and robotics.

The appeal appeared in an opinion piece published on Tuesday in several European newspapers, including Germany's Handelsblatt and Italy's Corriere della Sera. The writers said regulatory simplification should be paired with a stronger industrial policy and changes to merger and acquisition rules so that European companies can expand.

The timing of the call aligns with renewed EU deliberations this month about streamlining the bloc's 2024 AI Act. The European Commission, the executive arm of the EU, is also due to present a "Tech Sovereignty Package" on May 27, which the companies noted includes plans still under negotiation to support the computer chip industry and AI infrastructure.

"More than three years after the 'ChatGPT moment', Europe is still debating regulation, while others have long shifted focus to scaling AI in physical systems and robotics," the executives wrote in the op-ed.

They added a warning about competitive dynamics: "We face fragmented markets and subsidized rivals with very strong market penetration in the EU." The statement was signed by the chief executives of ASML, Airbus, Ericsson, Mistral AI, Nokia, SAP AG and Siemens, and it followed a meeting with European Commission President Ursula von der Leyen.

Market indicators referenced alongside the commentary showed positive moves for several of the companies named: SIEGn+4.39% AIR+0.95% ERICb+1.19% NOKIA+0.31% SAPG+1.18% ASML+3.5% Siemens AG

The piece links three policy threads that the signatories said should be addressed together: regulatory simplification for AI tools and systems, targeted industrial support for chips and AI infrastructure, and more flexible M&A rules to allow European firms to scale through consolidation.

The executives' appeal arrives as the EU balances regulatory safeguarding with measures intended to shore up domestic capabilities in strategic technology sectors. The public op-ed emphasizes the need for a regulatory environment that does not slow the deployment of AI in hardware systems and robotics while governments negotiate industrial support mechanisms.


Context and next steps

The EU's resumed talks on the 2024 AI Act and the forthcoming Tech Sovereignty Package on May 27 will be the immediate forums in which some of the signatories' requests could be debated. The op-ed, and the meeting with the European Commission President, signal coordinated industry pressure for policy adjustments in the weeks ahead.

Risks

  • Continued regulatory debate could delay deployment of AI in physical systems and robotics, affecting industrial technology and manufacturing sectors.
  • Fragmented markets and competition from subsidized rivals may limit market penetration for European firms, creating uncertainty for companies in semiconductors, enterprise software, and telecoms sectors.
  • Negotiations over the Tech Sovereignty Package and changes to the AI Act may leave outcomes uncertain in the short term, posing implementation risk for firms planning investments in AI infrastructure and chip capacity.

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