Artificial intelligence, regulation and immigration: the main concerns of the technology sector in the context of the European elections

Thanks to innovative start-ups and world-first regulation, insiders say Europe’s tech sector should not be ignored in next month’s European Parliament elections.

However, the industry fears that it will become a scapegoat, see a populist parliament serving national interests and a brain drain on the continent.

Euronews Next spoke to tech groups and start-ups to find out their hopes and concerns for the next parliamentary term.

“Rather populist than realistic”

“We really hope that technology will not be used as a scapegoat as much as has been the case in the EU institutions in recent years, when all kinds of worries were blamed on the technology sector as some vague bogeyman,” said Daniel Friedlaender, senior vice-president of the Industry Association Computer and Communications Agency (CCIA) and head of CCIA Europe.

“Instead, it should be seen as one of the tools to empower Europeans,” he added.

Polls suggest Far-right and hard conservative parties will make big gains, potentially taking first place in nine EU countries and second and third place in a further nine EU countries.

“Some of the dominant election promises are populist rather than realistic, whether the problems are blamed on technology, the very existence of the EU or other people,” Friedlaender said.

“There have been many problems with the EU’s rush to regulate technology in recent years, but the last thing we need is more protectionism and populism. This would only harm Europe’s competitiveness and social fabric.”

He hopes that potential political candidates will place greater emphasis on technology’s potential to open new jobs, make life more convenient and achieve climate goals.

“Different opinions on refugee immigration”

The seats that populists may win are likely to be partially taken over by the European Green Party, which made significant gains in the 2019 European elections, which could have an impact on green technology companies.

Estonian company eAgronom Global, whose software allows farmers to manage their carbon footprint and earn and trade carbon credit rewards, could be one of the companies affected by the parliamentary changes.

“The elections will certainly have some impact on eAgronom and other companies. We hope that the greatest impact will still be on our operations and ability to serve customers, but the decisions of legislators will still have some influence,” said Robin Saluoks, the startup’s CEO.

He said he would like to see more transparency around the EU’s carbon dioxide removal certification program and food businesses’ expectations for dealing with Scope 3 emissions, emissions that the company itself does not produce. He said that such initiatives are heading in the right direction, but there is still much to be done.

He is also concerned about whether immigration rules will prevent talent from entering the continent.

“There are many different views on refugee immigration, but even the most conservative forces agree that we would welcome a well-educated, value-added workforce. Europe is the best region to live in and we can use it to our advantage to develop the economy,” Saluoks said.

“Digital technology is a geopolitical issue”

The shortage of skilled labor is an increasingly serious problem for employers across Europe, especially in the technology sector.

“We need to invest in innovation, we need to invest in skills. This is a very strong axis. We see that there is a lack of skills supporting digital technology in Europe today, said Véronique Torner, head of the consulting company Numeum.

She said there was “a lot at stake” for the tech community in the election, but “there are concerns today because we don’t see a mention of it (technology) in the debate.”

Torner said Europe was lagging behind in terms of competitiveness.

Her hope in the next parliament is that Europe will have a bigger vision that can drive real industrial policy.

“Digital technology must be an important issue because digital technology is a geopolitical issue and a serious economic issue for Europe,” she said.

“We see that digital technology – and there has been a lot of buzz around artificial intelligence and generative computing – is actually shaking up the world of work and the world of skills. So it is a serious social problem.”

“Europe first, not nations”

There is no doubt that artificial intelligence will be an important topic for the next European Parliament. This has been proven by AI start-ups such as France’s Mistral AI and Germany’s Aleph Alpha.

“I’m not too worried about a right-wing or left-wing parliament, but it will be an open question when it comes to working at European level,” said Marianne Tordeux Bitker, director of public affairs for France Digitale, Europe’s largest startup association.

“Europe should come first, not nations,” she added.

Her biggest concern is the need to understand the demands of the sector.

“In Europe, we are good at launching projects, but we are not so good at creating global European leaders,” she said, adding that the most important issue is financing.

Implementing the rules

Another key priority when it comes to the European technology sector is the regulations that the new parliament will have to take over. The EU Act on Artificial Intelligence MiCA cryptocurrency rules are expected to be introduced.

While previous MEPs voted on sets of rules, their implementation will depend on the new parliament.

“The various regulatory initiatives aimed at the technology sector are the most pressing key issues,” said Hugo Volz Oliveira, founding member of the New Economy Institute, a cryptocurrency advocacy group.

“With its arrival, MiCA will mainly concern how these rules are implemented, which will show how seriously the EU Parliament takes monitoring planned initiatives.”

However, these rules should not be implemented using a one-size-fits-all approach, as this could jeopardize cyber and financial security.

“The new parliament must balance its approach to regulating AI as banks are already burdened by extensive regulations that may create unintended consequences,” said Marit Rødevand, CEO and co-founder of Strise, a Norwegian anti-money laundering intelligence firm.

She said imposing excessive and rigid regulations could burden banks and institutions, even if they have good intentions behind them.

“Given that malicious actors are not constrained by any laws or regulations, if this balance cannot be struck, the gap between those who use AI for good and those who have bad intentions will grow.

“Keeping up with technological progress”

In addition to regulation, defense technology procurement will also be important as war approaches Europe.

The world is learning from Ukraine’s cost-effective defense technologies.

“I hope to see a government that understands the importance of keeping up with technological advances and is willing to streamline processes to ensure that our defense capabilities remain relevant and effective in the face of rapidly changing threats,” said Ricardo Mendes, director general of the Lisbon Defense Agency. Tekever is a company based in the information technology, aerospace, defense and security industries.

He said he hopes for bold reforms that prioritize flexibility, innovation and cooperation in defense procurement.

“The next parliament must recognize the urgency of modernizing defense procurement and take a more proactive and adaptive approach to ensuring our armed forces are equipped to meet the challenges of the 21st century.”