The European Union's AI regulations should be temporarily halted to evaluate possible "disadvantages," stated former Italian Prime Minister Mario Draghi on Tuesday at a conference discussing the European Commission's advancements in following the suggestions outlined in Draghi's influential report from 2024.
The AI Act, which came into effect in August of last year but will be fully implemented in 2027, has been described as "a source of uncertainty" by the former Italian prime minister.
The guidelines are designed to oversee artificial intelligence systems based on the potential risks they present to society, with varying levels of enforcement from low to high, including stricter adherence for high-risk systems and outright bans.
"The initial rules—covering the prohibition of 'unacceptable-risk' systems—were implemented without significant issues. Codes of practice endorsed by most leading developers, along with the Commission's August guidelines, have provided clear definitions of responsibilities," Draghi stated.
"But the subsequent phase—encompassing high-risk AI systems in sectors such as critical infrastructure and healthcare—needs to be balanced and foster innovation and progress. In my opinion, the execution of this phase should be temporarily halted until we gain a clearer understanding of the potential negative impacts," he added.
The action comes after industry demands for extensions earlier this year.
CEOs from over 40 European firms such as ASML, Philips, Siemens, and Mistral,askedin July for a "two-year pause" on the AI Act. In aletterTo Commission President Ursula von der Leyen, they mentioned that this would enable "both for feasible execution by businesses, and for additional streamlining of the new regulations."
The most recent rules regarding general purpose AI (GPAI), like ChatGPT and Gemini, have sparked concerns since the Commission's guidelines meant to assist providers were not available on time. Euronews stated that several companies, including Google, have beenaskingfor a period of grace to enable adherence to the voluntary code of practice on GPAI.
It remains unclearIn most EU member states, which authority will be designated to monitor businesses' adherence to the regulations? The Commission has not yet released a list of supervisory bodies responsible for enforcement.
Digital omnibus
In the meantime, the Commission's technology head, Henna Virkkunen, stated that the EU executive will introduce a so-called digital omnibus package in December. This initiative aims to examine all current technology regulations and may reduce the workload for businesses by, for instance, lessening reporting or transparency requirements. This will also apply to the bloc's AI regulations.
Over 50 groups – such as Access Now, Centre for Democracy and Technology Europe (CDT), and the European Consumer Organisation (BEUC)warnedin July, opposing the resumption or postponement of the AI Act, arguing that it would weaken essential accountability measures.
The EU's 'simplification' initiative must not be exploited to promote deregulation, particularly when there is no reliable evidence indicating that such action would be required or beneficial," the letter stated, emphasizing that EU regulations are founded on core values and principles, "initiatives aimed at simplification should reinforce established legal safeguards, rather than erode them.
The AI Act has also faced scrutiny from the US administration in recent weeks. US President Donald Trumpthreatenedto enforce "significant extra taxes" on nations that enact laws affecting American technology firms, "provided that such unfair measures are revoked".
The Commission stated in reply, "It is the right of the EU and its member nations to manage economic activities within our borders, provided they align with our democratic principles."
'Europe should function more like a federation
The ex-Italian Prime Minister also cast doubt on the EU's 2035 target for eliminating tailpipe emissions, stating that "targets are based on assumptions that are no longer valid" within the automotive industry.
The 2035 target is a key topic of conversation in the Strategic Dialogue regarding the future of the automotive sector, organized by the European Commissionis holdinginvolving representatives from the automotive sector to facilitate a seamless shift towards emission-free transportation.
As per Draghi, the electric vehicle market has expanded at a slower pace than anticipated, with "European innovation falling behind, models still being costly, and supply-chain policy being disjointed."
As a result, "the European vehicle population of 250 million is becoming older, and CO₂ emissions have not significantly decreased in recent years."
As he had previously mentioned in his report from a year ago, the upcoming assessment of the CO₂ emissions regulation "should adopt a technology-neutral stance and consider current market and technological advancements."
Over the next few months," he stated, "the automotive industry will put Europe's capacity to harmonize regulation, infrastructure, and supply chain growth into a unified plan to the test.
Draghi also discussed the EU's requirement to reform and enhance integration among its member states, a topic that was previously mentioned in his report.
"In certain key areas, Europe needs to move away from being a confederation and adopt a more federal approach," he stated, indirectly implying the removal of veto powers from the EU's decision-making process, or at least limiting the capacity of member states to deviate from a shared initiative.
Even without altering the treaty, Europe could still make significant strides by focusing on projects and combining resources," he stated, noting that "advancement might rely on groups of willing nations, utilizing tools like enhanced cooperation.
A reference to "consider common debt for common projects," either at the EU level or within a group of member states, was also part of Draghi's address.
"Combined release [...] would enable Europe to fund bigger projects in sectors that enhance productivity—such as revolutionary innovations, scaling technologies, defense research or energy networks—where separate national spending is no longer sufficient," he stated.
Draghi arrived in Brussels with a very clear statement: Europe must alter its economic model, or it will face decline in today's global landscape," stated Simone Tagliapietra, a senior fellow at Bruegel, who added: "He is advocating for greater EU-wide initiatives to create significant influence. I hope he presents the same address at the European Council — where the primary barriers to his idea still stand.