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Europe Facing a Challenge: Draghi Criticizes AI Regulation and Zero Emission Goals

<p>Mario Draghi</p>
Mario Draghi / Image by: foto Shutterstock

Former Italian Prime Minister Mario Draghi called on Tuesday for a temporary suspension, or pause, of part of the implementation of the European Artificial Intelligence Regulation (AI Act) until potential shortcomings in the regulation are clarified. His appeal was made during a conference in Brussels that analyzed the implementation of recommendations from his key 2024 report. The rules of the AI Act aim to regulate AI systems according to the risk they pose to society, ranging from minimal obligations to stricter requirements for high-risk systems, up to outright bans.

– The AI Act, which came into force in August last year and will be fully applicable from 2027, is a source of uncertainty – said Draghi.

Draghi claims that the Regulation is a source of ‘uncertainty’, particularly in the next phase of implementation concerning high-risk AI systems in sectors such as critical infrastructure and healthcare.

– The initial rules, including the ban on systems posing ‘unacceptable risk’, were introduced without major complications. The codes of conduct signed by the largest development players, along with the Commission’s guidelines from August, clarified responsibilities – said Draghi, adding: However, the next phase, which relates to high-risk AI systems in sectors such as critical infrastructure and healthcare, must be proportional and support innovation and development. In my opinion, the implementation of this phase should be temporarily suspended until we better understand the possible shortcomings – said Draghi.

Industry’s Call for Delay

This statement followed earlier requests from industry leaders for a delay. Specifically, the business sector had previously sought a ‘stop the clock’ on the AI Act, and this document was signed by more than 40 European companies, including ASML, Philips, Siemens, and Mistral, in a letter to Commission President Ursula von der Leyen in July 2025, requesting a two-year pause to allow for reasonable application and simplification of the new rules.

However, critics warn that a delay or relaxation of the rules could undermine key accountability mechanisms and the protection of fundamental rights. Organizations such as Access Now, the Centre for Democracy and Technology Europe, and BEUC (European Consumer Organization) emphasize that simplification should not mean deregulation. Companies operating in healthcare, critical infrastructure, and providing services that can significantly impact human rights must prepare for additional requirements such as extra documentation, risk assessments, post-implementation monitoring, and transparency.

Additionally, issues have already arisen for digital service providers. The latest provisions regarding general AI systems (GPAI), such as ChatGPT and Gemini, have raised further questions as the Commission’s guidelines for service providers were not ready in time. According to reports from Euronews, several companies, including Google, have requested additional time to comply with the voluntary code of conduct for GPAI. Furthermore, in most EU member states, it is still unclear which institution will oversee companies’ compliance with the rules, as the Commission has yet to publish a list of supervisory bodies.

Pressure from the U.S.

Meanwhile, EU technology chief Henna Virkkunen announced that the Commission will present a so-called digital omnibus package in December, which will review existing technology legislation and could facilitate business by reducing reporting or transparency obligations. This omnibus would also encompass EU rules on AI.

The AI Act has also been under pressure from the U.S. administration in recent weeks. U.S. President Donald Trump threatened to impose ‘significant additional tariffs’ on countries that enact legislation targeting American tech companies, ‘unless these discriminatory measures are removed’.

The Commission responded that ‘it is the sovereign right of the EU and its member states to regulate economic activities on our territory, in accordance with our democratic values’.

Europe Must Act as a Federation

In his address, the former Italian Prime Minister also expressed doubt about the European goal of zero emissions from internal combustion vehicles by 2035, claiming that ‘the goals are based on assumptions that no longer hold’ for the automotive industry. The 2035 deadline is a key topic within the Strategic Dialogue on the Future of the Automotive Industry, which the Commission is conducting with sector representatives to ensure a smooth transition to zero-emission mobility.

According to Draghi, the electric vehicle market is growing slower than expected, while ‘European innovations are lagging, models are expensive, and supply chain policies are fragmented.’

– The consequence of all this is that the European vehicle fleet of 250 million vehicles is aging, and CO2 emissions have barely decreased in recent years – emphasized Draghi.

Additionally, as he already suggested in his report a year ago, the upcoming review of CO2 emissions regulation ‘should follow a technology-neutral approach and take into account market and technological changes.’

Draghi also reflected on the need for reform and greater integration among member states, which he has already highlighted in his report.

– In some key areas, Europe must start acting less like a confederation and more like a federation – he said, alluding to the abolition of veto rights in decision-making or at least reducing the ability of states to deviate from the common project.

– Even without changing the Treaty, Europe can already achieve much more by concentrating projects and pooling resources – he added, suggesting mechanisms such as ‘enhanced cooperation’ among willing member states.

He also called for consideration of joint borrowing for common projects, either at the EU level or among a coalition of member states.

– Joint bond issuance would allow Europe to finance larger projects in areas that increase productivity, innovation, scalable technologies, defense R&D, or energy networks where fragmented national financing is no longer effective – he said.

Change of Tone

Mario Draghi in his 2024 report relatively optimistically assessed the feasibility of key European goals. AI regulation and the goal of zero emissions from vehicles by 2035 were presented as achievable, provided there is successful EU coordination, encouragement of innovation, and integration of resources and infrastructure. Draghi then advocated for a technology-neutral approach, clearly defined responsibilities, and coordinated industry implementation.

However, he now shows a significantly more cautious tone. The AI Act is now described as a ‘source of uncertainty’ and proposes a temporary pause in implementation to better assess risks, particularly for high-risk systems. The goal of zero emissions from vehicles by 2035 is also called into question, the electric vehicle market is growing slower than expected, innovations are delayed, and the supply chain remains fragmented. While the report offered an ideal scenario ‘if everything goes according to plan’, the latest statement reflects real obstacles and the need to adjust strategies.

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