Statement from Mike Sax, founder of ACT | The App Association, on Mr. Draghi’s speech and report on “Unveiling Strategies for Europe’s Future Competitiveness”

“We commend Mario Draghi for recognising the challenges European small and medium enterprises (SMEs) are facing in today’s European regulatory landscape. We sent an open letter to Mr. Draghi in June, outlining the pressing needs and concerns of our SME members, and we are delighted to see some of these key priorities reflected in his speech and report.”

“Mr. Draghi highlighted that almost 30 percent of European unicorn startups have moved abroad, primarily to the U.S., which mirrors our experience of seeing innovative SMEs struggle to scale within Europe’s complex and fragmented regulatory landscape. These barriers not only hinder the commercialisation of innovation but also push companies to relocate where regulatory frameworks are more supportive of growth.”

“We also support Mr. Draghi’s call to close Europe’s innovation gap, particularly with the U.S. As long-time advocates for fostering innovation and reducing barriers, we welcome Mr. Draghi’s suggestion to streamline and focus regulations, particularly in digital sectors. SMEs are disproportionately affected by the current complex regulatory environment, often lacking the resources to navigate these burdens. We echo Mr. Draghi’s call for the EU to slow down on the introduction of new regulations and instead focus on providing guidance and support to SMEs as they navigate overlapping regulations.”

“We encourage European policymakers to take careful consideration of Mr. Draghi’s call for promoting European innovation and supporting SME scale-up.”