EU Commission presents digital package: Simplified EU rules and new business wallets set to save companies billions

The European Commission has unveiled a comprehensive digital package aimed at reducing the administrative burden on businesses and boosting innovation across Europe. With simplified rules for artificial intelligence (AI), cybersecurity and data use, as well as the introduction of a European Business Wallet, the EU aims to streamline processes for SMEs, start-ups and industrial companies, and make the digital single market more efficient.

The core objective is to reduce administrative costs by up to 5 billion euros by 2029. Additionally, the new European Business Wallets could save companies across Europe around 150 billion euros each year.

Digital Omnibus: Simplified rules for AI, cybersecurity and data

The new Digital Omnibus sees the Commission proposing targeted adjustments to existing legislation, enabling companies to implement it in a practical and innovation-friendly way.

1. AI regulation: support, simplified documentation, sandboxes

• Adjustment of the timetable: high-risk AI rules will only apply once the necessary standards and tools are in place.
• Extended relief for SMEs and small mid-caps (SMCs) – including significantly reduced documentation requirements (potential savings: 225 million euros per year).
• More opportunities for regulatory sandboxes, including an EU-wide sandbox from 2028.
• Strengthened role of the EU AI Office in central AI model supervision.

A regulatory sandbox is a protected environment in which companies can trial innovative products, services or technologies without having to comply immediately with all the strict legal requirements that would apply in a fully operational market.

2. Simplified cybersecurity reporting

In the future, companies will only need to report cyber incidents via a single reporting point. Currently, they have to report them in parallel under the NIS2 Directive, the General Data Protection Regulation (GDPR) and the Digital Operational Resilience Act (DORA).

3. Data protection modernisation and fewer cookie banners

• Targeted GDPR adjustments will create more clarity and facilitate digital innovation.
• Users will soon be able to manage cookie settings centrally in their browser or operating system, reducing the number of banners and improving usability.

4. Improved access to data

The package strengthens the European data space by consolidating four data laws into a clear framework (the Data Act):

• consolidating four data laws into a clear framework (the Data Act).
• exempting SMEs/SMCs from costs when switching clouds (potential savings: 1.5 billion euros).
• Model contracts and standard clauses for data use and cloud computing.
• Better access to high-quality data sets for AI development.

Data Union Strategy: High-quality data for AI and stronger data sovereignty

The new Data Union Strategy complements the Omnibus with the following measures:

• expand data access via data labs
• support businesses via a Data Act Legal Helpdesk
• strengthen Europe's data sovereignty through international guidelines and anti-leakage tools.

European Business Wallet: Uniform digital identity for businesses

The EU is introducing the European Business Wallet, which will provide businesses with a universal digital identity. It will enable the following across Europe:

• secure digital signatures, stamps and seals;
• creation, storage and exchange of verified documents;
• fully digital communication with authorities and other businesses.

These features will significantly simplify business activities, from tax returns to site expansion, in all 27 Member States.

Next steps

The legislative proposals will now be sent to the European Parliament and the Council. At the same time, the Commission is launching the Digital Fitness Check, which will assess the overall efficiency and coherence of the EU's digital regulatory framework by March 2026.

The Digital Package marks another milestone in the EU's agenda for simplification and competitiveness. This agenda aims to reduce administrative burdens by at least 25% by 2029 – 35% for SMEs.

Further information can be found here.