EU Commissioner defends regulation as fintechs benefit from harmonized rules

European Commissioner for Startups, Research and Innovation Ekaterina Zachariev states that European fintech companies like Revolut and Klarna benefit from EU regulation because it harmonizes rules across member states, allowing them to scale into global players. She argues that a deeper single market and a unified capital market are essential to keep companies within Europe.

Regarding artificial intelligence, Zachariev notes that the EU is not lagging due to over-regulation, pointing out that the AI Act has not yet even entered into force. She emphasizes the importance of scientific freedom and programs like Horizon Europe in attracting global researchers, noting an increase in applicants from the US for ERC grants.

However, concerns remain regarding the massive funding gap in AI development. While US generative AI startups are projected to secure nearly $100 billion in 2025, European startups receive only a fraction of that amount. Critics suggest that without sufficient capital for chips, data centers, and energy, Europe risks becoming a region that primarily regulates technology created by US and Chinese leaders rather than producing its own tech giants.