Demanded reduction in GDPR and temporary halt to AI Act advocated by ex- heads of ECB during Brussels gathering
Mario Draghi, the esteemed former President of the European Central Bank and Italian Prime Minister, delivered a passionate plea for radical simplification of the General Data Protection Regulation (GDPR) and a temporary pause on implementing parts of the AI Act. The call was made during a speech on September 16, 2025, exactly one year after the publication of his landmark European competitiveness report.
Draghi's address comes at a time when European data protection authorities are grappling with AI governance challenges. He argued that Europe requires "new speed, scale and intensity" to compete effectively with China and the United States, particularly in artificial intelligence and related technologies.
The former economist criticized the GDPR, stating that it creates excessive legal uncertainty for AI developers attempting to train models using vast datasets. According to Draghi, this uncertainty has raised the cost of data by approximately 20% for EU firms compared with their US counterparts.
Power accounts for up to 40% of operating costs for major computing facilities, creating additional economic pressures on European AI development compared to other global markets. Natural gas prices in the EU remain nearly four times higher than in the United States, while industrial power prices average more than double US levels.
In an effort to reform data protection to benefit the economy, the German coalition government of CDU/CSU and SPD proposed to impose sanctions against "radical simplifications" of general data protection legislation and to temporarily halt the implementation of certain parts of the AI Act to reduce legal uncertainty for AI developers using large datasets.
Draghi also demanded broader structural reforms that would cover not just the primary regulation but also the heavy gold-plating by Member States responsible for enforcing rules on locally established companies. He emphasized the need for concrete dates, deliverables, and accountability mechanisms to address Europe's slow pace of change.
The Commission has launched its Clean Industrial Deal and Action Plan for Affordable Energy, both consistent with Draghi's competitive agenda. However, the main step to date has been relaxing state aid rules to allow member states to subsidize energy prices rather than addressing structural cost drivers.
Mario Draghi called for EU-level planning and execution for cross-border energy projects to achieve necessary scale and speed. He also highlighted the need to tackle obstacles to accessing data, accusing the GDPR of creating unnecessary hurdles for European AI developers.
The Commission faces mounting pressure to demonstrate that European regulatory frameworks can support technological advancement, particularly in AI. South Korea has established its own AI privacy framework to balance innovation with privacy protection. On May 6, 2024, the German Conference of Data Protection Supervisors published AI privacy guidelines, and cooperation between the European Data Protection Board and the EU AI Office was initiated on November 6, 2024.
The AI Act transparency obligations become applicable on August 2, 2026. As Europe navigates the complexities of AI development, the calls for simplification and a temporary pause in implementation will likely continue to resonate.
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