The new European Commission, led again by Von der Leyen, is set to place technology at the core of its strategic competitiveness agenda. With Commissioner Henna Virkkunen from Finland focusing on Digital and Frontier Technologies, the Commission will spearhead efforts toward digital sovereignty, competitiveness, and innovation. This shift is critical, especially for the financial services industry, where cloud technology and regulatory frameworks play a pivotal role.
Technology’s Central Role
Henna Virkkunen has consistently emphasised that digitalisation was a game-changer for Europe. The COVID-19 pandemic accelerated this shift, with digital solutions transforming how people work, learn, and interact.
For the financial services industry, this signals a strong push toward digital economies, where cloud infrastructure and AI-driven services will be critical in driving efficiency, improving service delivery, and enhancing security. Virkkunen’s leadership will involve implementing and reviewing Europe’s Digital Decade targets by 2030, addressing technological sovereignty and cybersecurity, while fostering innovation in key frontier technologies like AI, quantum computing, supercomputing, and semiconductors. These technologies, integral to productivity and security, will drive the transformation of industries across Europe.
Financial Services Impact
The financial sector is undergoing rapid digitalisation, and the Commission’s technology-driven focus will shape future regulations around AI, data, and cloud usage. The European AI Research Council will foster innovations that ensure financial AI applications remain safe, trustworthy, and in compliance with EU regulations.
Cloud adoption is a growing priority in Europe, and the Commission’s initiative to create an EU Cloud Policy signifies a major step toward harmonisation and innovation. Virkkunen is set to introduce the EU Cloud and AI Development Act, which will increase computational resources for innovative SMEs and establish a unified EU-wide cloud policy for public administrations. For financial services firms, this means an easier and more secure transition to cloud-based infrastructure, improving data management and compliance with EU regulations.
Furthermore, the European Data Union Strategy, which will simplify data-sharing rules, will potentially impact regulated industries handling vast amounts of sensitive information. A holistic, technology-neutral regulatory framework will enable seamless, cross-border data flow while ensuring high privacy and security standards—an essential factor for the heavily regulated financial services sector.
Regulatory Alignment and Simplification
The Commission’s focus on simplifying digital regulations will address concerns from the financial industry about compliance burdens. The appointment of Valdis Dombrovskis as Commissioner for Implementation and Simplification will streamline existing regulations, ensuring that financial services can adopt new technologies without navigating excessive regulatory complexity.
The next European Commission’s tech-forward agenda focuses on key themes for our industry, including cloud infrastructure, AI, and data governance. For the financial services industry, this presents an opportunity to leverage cutting-edge technologies within a cohesive regulatory framework, enhancing competitiveness, security, and innovation across Europe.
