EU Inc. shows that Europe can simplify things, but the digital landscape is still lagging behind
The EU Inc. framework promises clearer and more uniform conditions, as well as long-awaited flexibility in a fragmented market. For Thomas Breuer, General Manager at Inetum Belgium, Europe’s real challenge lies not in starting businesses, but in sustaining their growth.
“Beyond registration, companies still face a maze of national data standards, AI rules, and cloud requirements that hinder innovation and scaling.”
This year, Thomas Breuer notes, digital competitiveness was among the priorities of the World Economic Forum. With EU Inc., the European Commission is signaling its ambition to reduce administrative complexity and strengthen Europe’s position against major tech ecosystems.
“This ambition is not a luxury. Europe’s current fragmentation comes at a real cost to businesses. About 28% of innovative companies devote at least 10% of their teams’ time to administrative tasks. ” Only one-third (33%) of EU countries allow same-day business registration, and less than half recognize business documents issued in another Member State. With this in mind, EU Inc. offers an opportunity to reduce friction and give entrepreneurs the time and focus needed to build and innovate.
Digital fragmentation is holding back European growth
Europe’s fundamental problem lies not in starting businesses, but in what happens next, explains Thomas Breuer. “As companies grow, they continue to navigate a patchwork of national data standards, divergent policy frameworks on AI, and fragmented cloud requirements. Even when Europe introduces regulations like the AI Act, local interpretations and national adjustments often follow. The result is a regulatory maze that slows cross-border development. EU Inc. proves that Europe can create simplicity, but it has not yet applied this logic to the foundations of its digital economy. ”
Belgium is a good illustration of these consequences, as digital competence is divided among the federal, regional, and community levels. Many AI-focused sectors, from life sciences to financial services, also rely on non-European providers. European alternatives often remain difficult to deploy at scale or are insufficiently harmonized across borders. Today, it is estimated that 92% of European data is stored in cloud environments based in the United States.
This imbalance also has legal implications. Under legislation such as the U.S. CLOUD Act, data stored in a Belgian data center may still fall under U.S. jurisdiction if it is operated by a U.S. provider. “For companies looking to expand AI-based services into the Benelux region or to France and Germany, this creates friction that their American or Asian competitors rarely encounter. ”
The Next Step for Europe
EU Inc. shows that Europe can simplify things if it chooses to. The question is whether it will now extend this clarity to the digital backbone of its economy, Thomas Breuer further analyzes. For a country like Belgium, which is strong in life sciences, finance, and logistics but held back by multi-level governance, the stakes are even higher.
“If the continent wants to remain competitive in the next wave of digital innovation, it must demonstrate the same boldness beyond simply creating companies. Without this ambition, Europe will continue to innovate on the sidelines, while others set the standards and set the pace globally. ”
