Wrapping up 2021 and thinking about 2022 - thoughts from former EU policymakers and business leaders

In 2021, we built the Technology and Finance practice in Rud Pedersen Brussels. I am really proud and honoured to say that we are now equipped with a team of ten extraordinary Consultants/Advisors who support organizations impacted by the developments in digital/tech as well as in the fintech and finance space. I am grateful for the trust that clients put in us and excited about the work we are conducting.

We are now busy finalizing 2022 strategies and innovative engagement plans, and I very much look forward to an equally fulfilling and exciting professional year ahead.

But just before we wrap up 2021, I asked some of our Senior Advisors about their views on what to expect in 2022, both from a policy and business perspective. You can read their thoughts below.

Daniel Dalton, former group advisor and MEP (2015 – 2019), member of the LIBE Committee and Group Coordinator in the IMCO Committee?

1.????A first same question to all: How far do you think policymakers will go to establish Europe's digital sovereignty?

It is a priority for many policymakers, even though the premise that European digital sovereignty is necessary for the rapid growth of the EU digital ecosystem is likely to be a flawed one. However, policymakers will endeavour to establish far stronger controls on access to Europe's digital markets. This process has already begun, notably on the issue of personal data and the need for a data adequacy agreement with a third country before EU citizens’ personal data can be sent to those countries. The Commission is likely to extend this principle, in some shape or form, to industrial data. The justification for this is that if Europe can keep control of its industrial data, it is in a better position to use that data to drive the growth of AI-based technologies in the future. The principle of digital sovereignty can also be seen in proposals such as the General Product Safety Regulation (GPSR) and obligations on sellers from third countries to have legal representatives in Europe. European policymakers do want to control access to European digital markets and they also want to leverage data produced in the bloc for use in the bloc, so there is scope for significant developments in this area, whilst at the same time many do recognise that the global digital economy is fluid, and often borderless, and unnecessary restrictions could harm the EU as much as they could benefit it.

2.????One of the priorities of the French Council Presidency starting on 1 January is to make the EU a digital power that sets its own rules. Do you think they will manage to get an agreement on the two key files, DSA (Digital Services Act) and DMA (Digital Markets Act)?

They are more likely to get a deal on the DMA in their Presidency, given that this is a less controversial file and the differences between the three EU institutions are less pronounced. However, the French Presidency will be a short one politically given the upcoming French Presidential elections, and any agreement will need to be reached in the first half of the Presidency. The DSA is a far bigger file, which touches on many very sensitive and controversial issues. It will be a far bigger challenge for the French Presidency to steer that through in the very short timeframe it has, particularly as the European Parliament will not vote in Plenary until January.

3.????As a former MEP sitting in the LIBE and IMCO Committees, which are the files that you think keep MEPs busy in 2022?

The ongoing DSA and DMA and trialogues will be a constant throughout much of 2022. In addition, the AI Act will be the centrepiece digital file for 2022. The GPSR, the Product Liability Directive and the Machinery Directive will also take up a lot of the bandwidth in IMCO. Privacy legislation will continue to be important in LIBE, particularly if an agreement can be found on e-privacy. The Data Act will also be a major piece of digital legislation in 2022.??

4.????What is your advice to stakeholders that want to attract MEPs’ attention and stand out from the crowd?

The most important thing is to understand the MEP, what motivates them and what their political views are. You will get their attention if the issue is of interest to them or their constituency. MEPs are generalists and are covering many issues at the same time, so they rely hugely on their team, both assistants and their Group secretariat. So it is important that assistants are aware and interested in your issues. If they aren't, your likelihood of getting to the MEP is greatly reduced.

Megan Richards, former Director of Energy Policy in DG ENER and Director of General Affairs, Director of Converged Networks and Services, Director Coordination, acting Deputy Director-General, and Principal Adviser in DG CNECT

1.????How far do you think EU policymakers will go to establish Europe's digital sovereignty?

There are limits to the “sovereignty” (if that is meant to be full control) of any country or region with respect to governing the internet if the basic principles under which it was initially established are to continue: that is a universal, global, open, free, accessible internet for all. The open, innovative nature of the internet permitted start-ups and entrepreneurs to develop new applications and services without heavy regulatory limits. Governments were reluctant to put brakes on that rapid, innovative growth. However, over time it has become ever more apparent that some limitations and restrictions would help to ensure that principles applied in the offline world also apply online. The extraordinary growth of a handful of companies and their dominant market presence means that certain actions must be taken to improve the online competitive environment and opportunities for new entrants.?

2.????As you held crucial positions in both DG Energy and DG Connect, how do you see the twin transitions progressing in the EU? What role do you see for digital to ensure that the EU green goals are achieved?

Digital innovations and applications go hand in hand with the clean energy transition and provide many tools to help with monitoring and measuring climate change. Digital solutions will help consumers use energy more efficiently and effectively: to consume and store more when energy is in excess supply and less when there is greater demand, and improve the operation of electricity grids, which will help to better integrate renewable sources. Sensors can help to identify climate hot spots, methane leaks in pipelines, and better anticipate weather disruptions. The applications are too numerous to list but the clean energy transition and tackling climate change will need to apply digital solutions to meet the ambitions of EU climate targets and to move as quickly as possible to achieve them.

3.????Do you think digital is now embraced horizontally across all DGs or is this still seen in a silo? If so, how do you see potential conflicts between different Commissioners?

I don’t think that digital technologies are seen as a silo, but there is still room for progress in further integrating new digital technologies in all policy DGs. That is not due to resistance but being able to keep up to date on so many new developments. But there is good cooperation between DGs, and the inter-service consultations between services ensure that the Directorates-General with expertise can contribute.

4.????EU tech policy has an impact on geopolitical relations. Brussels’ regulatory efforts might compromise relations with other countries in the world. What do you think we could expect going forward? What should business representatives do to understand the impact of EU policies?

EU regulatory efforts will certainly have taken into consideration their geopolitical impact and there will have been a thorough review of the potential impact of any policy before it is finalised as a legislative proposal. Also, other countries make representations to the EU institutions on their concerns and interests in regular bilateral dialogues established for those purposes, in multilateral fora where many are gathered, and in informal or official demarches on specific topics. Business representatives can ensure that they or their trade associations are represented at business side events that may take place in parallel with regular dialogues between the European Commission/EEAS and major players on issues like digital policy or green deal developments.

Claudio Murri (over 30 years of experience in Public Policy and Government Affairs - Time Warner, Oracle, Electronic Data Systems and the IBM Corporation):

1.????How far do you think EU policymakers will go to establish Europe's digital sovereignty?

The idea that Europe must become technologically more resilient is and will definitely stay a priority for policymakers both at the EU and national levels. In the past six months, I have spoken with high-level representatives of a few European digital frontrunners which are members of the D9+ group of countries. Usually, they would be the most open and forward-looking EU Member States. Yet, all of them emphasised how important it is to promote a viable and vibrant local industry in order to ensure competitive and diversified markets. There is a sense that Europe was “too na?ve for too long”, as Commissioner Breton recently stated, and that public policy should be used to ensure Europe remains supplied with key products and services, for example in semiconductors. There is also a growing consensus that the perceived excessive power of the "technology giants" needs to be curbed, either by means of competition law or by policy instruments such as the DSA.

2.????You have represented some important American organizations in Brussels and beyond. Do you think the importance of having a representation in Brussels is still valid or is there a new shift towards other regions? What does it mean to be a US-based stakeholder promoting an interest in Brussels today?

In this current climate, I think it is more important than ever to be able to understand and influence the EU policymaking process. Even if there is a perception that Europe might have become a less important commercial partner, the US and EU still have a large number of mutual dependencies. On the global stage, the EU sees itself as a global standard-setter in certain policy areas, for example data protection, or Artificial Intelligence, where it is pushing for a values-based approach to policy. It is also more assertive in its domestic policies. While it remains one of the world’s most open economies, in areas that are not subject to trade commitments such as funding programmes and research or the digital Europe programme, the EU has become more insistent on reciprocity of access. On all these issues, there is still a strong level of alignment, as witnessed by the recent launch of the Technology and Trade Council (TTC), or the EU-US Joint Technology Competition Policy Dialogue. US companies can and should play a crucial role in fostering mutual understanding.

3.????What are the main differences you notice in how advocacy was conducted 30 years ago and nowadays?

There are huge differences in the methodology of advocacy, many obviously brought about by technological developments. 30 years ago we had no internet, and social media meant basically meeting at cocktails and exchanging gossips! In general, today there are a lot more actors involved in any policy debate, even those that, in the past, would have been seen as very specialized, technical issues. The result is a more complex and granular approach. From a content point of view, I see three trends that will strain the current advocacy models even further: the general loss of faith in the multilateral trading system; a widespread scepticism about the EU project itself; and the crisis of the large, sectoral industry associations model. This means that companies must develop the ability to influence a much larger number of actors to safeguard their interests.