Navigating Europe’s Digital Future: A Conversation with Markus Reinisch, Meta’s Vice President for Public Policy in Europe

In a recent interview, Markus Reinisch, Meta’s Vice President for Public Policy in Europe, delved into the challenges and opportunities the European Union faces in the digital space, particularly regarding Artificial Intelligence (AI) and technology regulation. His insights offer a comprehensive look into the current landscape and provide a compelling case for the EU to embrace technology as a cornerstone for competitiveness and sovereignty.

AI Regulation and the Competitiveness Gap

Reinisch expressed concerns about Europe’s lagging position in AI and technology adoption compared to other global regions. This gap, as highlighted in the Draghi Report, is widening and having profound consequences for European industries. Reinisch explained, “The Draghi Report clearly spells out the gaps between Europe and the U.S. in terms of productivity,” attributing much of this difference to Europe’s slower embrace of technology. He emphasized that this is not just an isolated concern for Meta but a sentiment shared by around 100 major European companies, research organizations, and academics, all of whom signed a letter urging European authorities to clarify AI regulations.

The crux of the issue lies in Europe’s hesitancy to embrace cutting-edge AI technologies. For example, Meta has been unable to launch advanced open source AI models in the European market due to regulatory uncertainty. This, Reinisch warned, not only hinders technological progress but also poses risks to Europe’s cultural and economic sovereignty. 

“Unfortunately, we are in very good company with other tech companies, foreign and European, who struggle with the lack of clear signals on whether and how they can launch products,” Reinisch explained. The regulatory landscape in Europe, characterized by fragmentation and complexity, contrasts sharply with regions like the UK, which has adopted a more pragmatic approach despite similar privacy regulations.”

Reinisch emphasized that the lack of access to cutting-edge AI tools is a significant disadvantage for European citizens, both in terms of productivity and societal advancement. “European citizens do not have access to the same productivity tools and societal-enhancing tools as other regions,” he said, adding that Europe’s fragmented enforcement landscape is a major impediment to progress.

A Call to Action for the EU’s New Leadership

With the upcoming European Parliament (EP) hearings for the new Commission, Reinisch expressed hope that Europe’s new leadership will take a more proactive stance on technology and competitiveness. His wish list for the next term is clear: balance fundamental rights like privacy with innovation and competitiveness, and prioritize the creation of a true single market for digital products.

Reinisch stressed the need for a “competitiveness and effectiveness test” for both existing and future regulations. This, he believes, would help ensure that Europe’s regulatory framework supports innovation rather than stifling it. He also highlighted the importance of fostering a single market for digital products, lamenting that Europe has struggled to achieve this goal despite years of effort.

“Stop the fragmentation, create a proper single market in Europe,” Reinisch urged. He pointed out that Europe’s global competitors, such as the U.S., China, and India, all have strong, functioning single markets, and Europe must do the same to remain competitive.

A Shift in Mindset

Reinisch urges policymakers to become “cheerleaders of progress” rather than focusing on the risks associated with new technologies. “It’s almost a reflex that when something new comes up, the first reaction is, ‘This is dangerous.’ But this is a very dangerous reflex,” he warned.

Reinisch believes that policymakers play a crucial role in shaping public perception and must adopt a more positive attitude toward innovation.  The continent has the potential to lead in the digital space, but only if it can overcome regulatory fragmentation and embrace technology as a driver of competitiveness and sovereignty.