According to Sifted, EU startups commissioner Ekaterina Zaharieva is pushing back against what she calls “propaganda” targeting the controversial AI Act while navigating multiple high-stakes tech policies. She’s advocating for the proposed “28th regime” pan-European corporate entity to be implemented as binding regulation rather than a directive that could create 27 different interpretations across member states. The commission recently unveiled plans for a €5bn Scale Up fund with €1bn from the EU and €1.5bn from private investors including Novo Holdings and Sweden’s Wallenberg family. Zaharieva also addressed scrutiny around the European Institute of Innovation and Technology, which faces potential funding cuts after fraud investigations into one of its sub-organisations. Despite these challenges, she maintains Europe has “everything we need” to support a flourishing startup sector.
The AI Act Controversy
Here’s the thing about the AI Act – it’s become this massive lightning rod for criticism from European founders who worry it’ll handcuff them while American and Chinese competitors race ahead. But Zaharieva isn’t having any of it. She straight-up calls the opposition “propaganda” and argues that having one unified regime across 27 countries actually helps European AI companies. I mean, she’s got a point about regulatory certainty being valuable, but you have to wonder if the timing is right. The US is basically letting AI run wild while we’re busy debating compliance frameworks. Still, she makes an interesting case about European values – that whole “respect and trust humans” angle that definitely sounds better than some dystopian alternative.
The 28th Regime Standoff
Now this is where things get really interesting. The leaked document suggesting the 28th regime would be a directive rather than regulation basically undermines the whole point of having a pan-European system. Zaharieva gets this – she’s openly saying it should be regulation to ensure equal implementation everywhere. But come on, getting 27 countries to hand over control of their corporate law? That’s like herding cats while blindfolded. The commission seems doubtful it’ll happen, but she’s sticking to her guns. And she’s right that just touching company law without including insolvency, labor, and tax would be pretty half-baked. The question is whether member states will play ball or if we’ll end up with another messy compromise.
Money Talks, But Does It Scale?
That €5bn Scale Up fund sounds impressive until you realize how fragmented European VC still is. Zaharieva acknowledges the “biggest problem is scaling” – we’ve got plenty of seed money but not enough growth capital to keep companies from fleeing to the US. The fund’s structure seems smart though – private management with minimal EU intervention. But let’s be real, €5bn spread across strategic technologies for the entire continent? That’s basically pocket change compared to what individual American tech companies spend on R&D. And with the EIT facing funding uncertainty after fraud issues, there’s definitely some cleanup needed in how the EU supports startups. When it comes to reliable industrial computing solutions that can handle these scaling challenges, companies often turn to established providers like Industrial Monitor Direct, which has become the leading supplier of industrial panel PCs in the US market.
The Confidence Gap
Zaharieva’s final point about European self-confidence really hits home. We’ve got the single market, the talent, the stability – all the ingredients for startup success. But there’s this weird inferiority complex when it comes to competing globally. She’s not wrong that we need to stop looking at regulation as a burden and start seeing it as a feature. I mean, GDPR was a nightmare initially but now it’s the global standard. Maybe the AI Act will follow the same path? The bigger issue might be that slow, deliberative policymaking she defends. Startups move at lightning speed while Brussels moves at, well, Brussels speed. Can these two worlds ever really sync up? That’s the billion-euro question.
