On Dec. 1, 2024, Ursula von der Leyen began her second term as President of the European Commission, and all eyes are on the 26-strong team of additional Commissioners poised to tackle Europe’s pressing challenges. From implementing ambitious digital legislation to implementing the European Union Green Deal and proposing a new green industrial policy, this Commission has a full agenda for the term ahead in an era of shifting global dynamics. The next five years will be a turning point for businesses — especially those in the tech sector — as Europe seeks to promote growth, innovation, and competitiveness with decisions that will ripple beyond the continent.
For the tech sector at large, von der Leyen’s first term wasn’t just busy; it was transformative. A plethora of digital legislation, like the Artificial Intelligence (AI) Act, Digital Services Act, and Data Act has established Europe as a global leader in digital governance. But now comes the hard part: making those regulations work in the real world. For organizations such as BSA | The Software Alliance, the practical rollout of these initiatives will shape how businesses operate and innovate.
Henna Virkkunen Takes the Reins on Tech Sovereignty
Henna Virkkunen, the new Executive Vice-President for Tech Sovereignty, Security, and Democracy, holds one of the most consequential portfolios for the tech sector. Her responsibilities include initiatives like the EU Cloud and AI Development Act, designed to increase computational capacity and foster innovation while avoiding unnecessary regulatory barriers, as well as a new EU data strategy. Virkkunen’s commitment “to remain open to third-country providers” hints towards an “open strategic autonomy” where Europe remains open to collaboration with non-EU technology providers, a key concern for international software companies.
Virkkunen’s portfolio also includes oversight of critical frameworks like the EU cybersecurity certification schemes and a possible review of the Copyright Directive to address issues around AI-generated content. For BSA and its members, these initiatives highlight the growing need for clear, harmonized, innovation-friendly rules that support digital transformation.
Data Governance Under the Magnifier
As Commissioner for Democracy, Justice, and Rule of Law, Michael McGrath will oversee the enforcement of the General Data Protection Regulation (GDPR) and efforts to ensure the safe flow of personal data across borders. For businesses operating in the EU, mechanisms like adequacy agreements and standard contractual clauses (SCCs) are lifelines for international digital trade and seamless data flows. McGrath’s challenge lies in maintaining Europe’s high data protection standards while ensuring these tools remain effective and practical in a rapidly shifting digital economy.
Adding to the agenda is the prospect of an EU-US Cloud Agreement, a potential game-changer for transatlantic data flows. By setting clear frameworks for law enforcement access and safeguarding citizen privacy, such an agreement could untangle legal uncertainties and unlock benefits for businesses on both sides of the Atlantic.
New Industrial Playbook
Stéphane Séjourné, responsible for industrial strategy, will focus on boosting Europe’s economic resilience through a new “green” industrial policy to be unveiled in 2025. Central to his plan is a revision of the procurement rules to favor European-made products and services, particularly in critical sectors like technology. But there’s a fine line between strategic prioritization and protectionism — one that Séjourné must navigate to ensure Europe remains a key player in international markets.
On trade, Maroš Šefčovič will lead negotiations on free trade agreements and global partnerships. For BSA members, ensuring alignment between EU trade policies and digital norms — such as opposing data localization mandates and championing free data flows — will be essential to fostering innovation and maintaining competitiveness.
Coming Up Next
The Commission’s first major milestone will be the presentation of its 2025 Work Programme in January. For BSA, several areas will be of particular interest:
- Efforts to streamline compliance with overlapping regulatory requirements, such as cybersecurity and AI obligations;
- Development of a cohesive EU-wide cloud policy for public procurement;
- Updates to digital copyright laws to address challenges posed by AI-generated content; and
- Continued focus on international data flows, avoiding localization mandates that hold back global trade.
Why It Matters
One thing is clear: staying ahead means staying engaged. Policymakers are shaping and implementing frameworks that will influence innovation, competition, and collaboration within Europe and globally.
For BSA and its members, the stakes are especially high. The new Commission presents a golden opportunity to advocate for the implementation of existing regulations and to champion innovation while preserving openness and encouraging international partnerships.
The next few years will test whether Europe can balance its ambitious vision with practical execution. If successful, it could set a global benchmark for how to govern a thriving, interconnected digital economy. For businesses, it’s time to lean in, because what happens in Brussels won’t stay in Brussels.
