More regulations are not the way to greater competitiveness
The EU wants to boost investment and competitiveness through new rules for digital networks. But without genuine regulatory simplification, the result risks being the opposite. Now Sweden needs to push for a simpler regulatory framework in the EU.
The European Commission has made it clear that regulatory simplification is a priority for strengthening Europe’s competitiveness. The proposal for a regulation on digital networks has been highlighted as a flagship initiative in this effort. The proposal aims to create a more harmonized regulatory framework for digital infrastructure and electronic communications networks in the EU.
Against this backdrop, it is problematic that the proposal, in its current form, risks moving in the opposite direction. Instead of simplifying matters, new processes, coordination requirements, and administrative layers are being added to an already complex regulatory framework. At the same time, there is only limited scrutiny of whether older regulations are still necessary.
This risks stifling investment, hindering innovation, and ultimately undermining Europe’s competitiveness.
This is particularly evident in countries that are leaders in digitalization. Sweden is one of Europe’s most digitally advanced countries, with intense competition, substantial investment, and a well-developed digital infrastructure. When regulations are designed based on a European average rather than on the markets that have made the most progress, there is a clear risk that development will be slowed down precisely where it is working best.
If the EU is to strengthen its competitiveness, it is therefore not enough to simply modernize existing rules. It also requires a more consistent re-evaluation of rules that have outlived their usefulness. Today, this perspective is often lacking. The regulatory framework is evolving incrementally, but without fundamentally assessing whether previous assumptions still hold true in a digital and competitive market.
At the same time, the government has clearly prioritized efforts to simplify procedures for businesses, both domestically and within the EU. This is an important and welcome focus.
Given that an increasing proportion of regulations is being decided at the EU level, it is particularly important that this perspective be clearly reflected in the ongoing negotiations on the Digital Networks Regulation. Sweden has an important role to play here in continuing to push for EU regulations that are simpler, more proportionate, and better adapted to how markets actually function
By advocating for simpler and more targeted regulations, Sweden can help create better conditions for investment, innovation, and competitiveness in Europe
Read TechSverige's response to the consultationhere