Press Release
12.2.2025
MEP Aura Salla
MEP Aura Salla: The EU’s AI Code of Practice: Undermining Its Own Competitiveness Agenda?
The European Union´s Artificial Intelligence Act General-Purpose (GPAI) Code of Practice second draft was published on the 19th of December 2024. Instead of being a clarifying guide it seems to be undermining the credibility of the AI Act and risks becoming yet another example of the regulatory overreach the European Commission has pledged to stop coming from Brussels.
The latest draft not only casts doubt on industry adoption but also clashes with key EU priority: boosting competitiveness. Whilst we are working hard to improve Europe’s global standing in innovation, and the broader agenda for regulatory simplification, the second draft of the Code of Practice nearly doubles in length and introduces requirements that go beyond the AI Act itself, Europe does not need this – it requires an omnibus package on tech regulation states MEP Aura Salla (EPP-FI).
From the outset, one of the AI Act’s biggest challenges has been ensuring it remains flexible and future-proof in a rapidly evolving industry. A voluntary, updatable Code of Practice could be a smart tool for pragmatic guidance that reduces ambiguity, lowers compliance costs, and fosters best practices at scale. Much like the standardisation processes that inspired it. Crucially, the Code can be refined over time. This flexibility should be used to streamline, not inflate, requirements.
Instead of a smart tool for pragmatic guidance, the draft code has presented European tech companies with a burden that may fall hardest on the smaller companies aiming to scale up. They all need to meet the standards when growing, so they are not safe as the Commission is claiming. The code proposes dense reporting mandates and frequent, often contradictory, documentation updates. The Draghi report spelled this out: Excessive red tape can strangle competitiveness. This is unacceptable, declares MEP Aura Salla.
This means that European companies focused on AI development and deployment will face competitive disadvantages.The Code of Practice risks sending the wrong signal about Europe’s approach to AI regulation. AI is a global race, and governance is still taking shape. If Europe fails to provide a clear, practical framework, other jurisdictions – the US, China, or elsewhere – will step in. There is no guarantee they will uphold Europe’s higher standards for safety, transparency, and fundamental rights, if that proves to be too restrictive, or even limiting innovation.
The risk of sending the wrong signal on Europe’s approach to AI regulation is that it would reinforce concerns – held among certain US companies and policymakers – that Europe’s regulatory approach is unpredictable and hostile to business. Why hand them an easy excuse to push back against EU rules? Luckily, there is still time to fix the problems. The AI Office must listen to business more carefully, aligning the Code of Practice with the AI Act and Europe’s broader competitiveness goals. The focus should shift to risk-based, proportionate measures, ensuring compliance does not become an endless exercise in paperwork and audits underlines MEP Aura Salla.
If Europe wants true leadership in AI, clarity and feasibility matter just as much as strong principles. A simpler, more targeted Code of Practice aligned with the AI Act and Competitiveness Compass would boost Europe´s credibility and our companies ability to compete in the global market.
More info: Aura Salla, aura.salla@europarl.europa.eu +358400886803
