From Red Tape to Growth – Tech Simplifications and Lessons from Digital Frontrunners
On 23 September 2025, SME Europe together with Jörgen Warborn, President of SME Europe, Member of the European Parliament and Coordinator for International Trade, hosted a breakfast seminar in the European Parliament titled “From Red Tape to Growth – Tech Simplifications and Lessons from Digital Frontrunners.”
The seminar brought together distinguished experts, policymakers, industry leaders, and other stakeholders, with moderation by Magnus Norman, Co-Founder of Impact Europe. Discussions centered on how AI-driven technologies can boost EU competitiveness while tackling regulatory barriers for SMEs and scaleups. Speakers underlined the economic potential of generative AI, estimated at up to €1.4 trillion for the EU, but also warned of the risks from overly complex rules, calling for simplification, proportionate regulation, and lessons from Northern Europe’s digital frontrunners.
Martin H. Thelle, Implement Consulting, highlighted Europe’s competitiveness gap, noting slower population growth and weaker productivity compared to the US. He argued that generative AI could help close this gap, with the potential to add up to €1.4 trillion to EU GDP, of which €275 billion lies in the public sector. Yet he warned that complex regulation could cut AI’s productivity gains by over 30%. To seize the opportunity, he called for regulatory simplification, smarter procurement, cloud clarity, and investment in R&D, infrastructure, and skills. Lessons from Northern Europe show the value of pro-innovation frameworks and scaleups in capturing growth.
Jörgen Warborn, MEP, reflected on Sweden’s digital journey, where early incentives made computers widely accessible and helped build a generation of entrepreneurs. He stressed that similar choices are needed today to unlock Europe’s digital and AI potential. Regulation must target real problems, not impose pre-emptive restrictions; finance must better channel capital into scaleups and attract global talent; and trade policy must open new markets, particularly as transatlantic relations face strain.
Mignon Lebon, Dutch Permanent Representation to the EU, emphasized the importance of remembering Europe’s regulatory tradition. She argued that regulation should not be seen only as a barrier but also as a strength, as it provides legal certainty, interoperability, and a basis for pooling resources across Member States. The task, she noted, is to use this foundation to give companies predictability while enabling innovation and to give SMEs the confidence to grow throughout the digital transition.
Maria Ramstedt, Ericsson, showcased how AI is already embedded in European industry. Ericsson has used AI for nearly two decades to optimize networks, predict faults, and cut internal administrative burdens by 80%. She underlined that openness is vital for small economies, with market players taking responsibility and public intervention limited to cases of market failure. At EU level, she called for a transparent “digital omnibus” to map overlapping rules and warned that high-risk obligations under the AI Act, combined with sectoral legislation, risk creating uncertainty for companies.
The seminar closed with a clear message. Europe cannot afford to lag in the digital and AI race. The task now is to adapt to a changing global landscape and turn innovation into lasting competitiveness and growth.
