Blueprint for startups: EU policy matters to follow and ways to engage

At the Vilnius Founders fireside chat yesterday, I was asked to name three to five European Union policy developments that startups should follow this season, as well as how startups could engage more with EU policy. 

In the past, many startups shared frustrations that following EU policy is difficult, time-consuming, and impossible for small players to influence. However, with the new opportunities provided by AI and with both European and local policymakers becoming more attentive to the opinions of European founders (nobody wants to see them leave for the US or elsewhere), engagement with EU policy is not only desirable but also necessary. 

Why policymakers care about founders’ opinions

Timely, constructive, data-driven input from European founders helps both local and European policymakers make the right choices when developing new legislation and strategies. Believe it or not, local policymakers often face a lack of relevant data to support their stance in Brussels - and founders’ homework could be very much helpful to them. 

The EU has its own “Have Your Say” portal, where Europeans are invited to provide input on future legislative initiatives. In my experience, very few European unicorns, scaleups, and even fewer small startups are engaging on this platform - and that should change. Additionally, running own-surveys on EU/local policy is neither difficult nor expensive - many startup associations, informal networks can do their own homework, do internal checks, and submit their positions to local or European policymakers, and/or align with like-minded networks from other countries. Speaking of that, European VC - Atomico -  is currently conducting a survey that founders should check out.  

The two catches: you have to engage with the right policymakers and do so on time. Issues relevant to founders are spread across different ministries, and even if a ministry has “digital” in its name or motto, a specific issue may be led by others. Secondly, once the window for changes closes (e.g., when the x Act is adopted and will be transposed into local law with little room for change), it’s already too late. 

Lastly, founders should be not only reactive, but also proactive - aggregate internal info on the main issues and present them to policymakers before the new governments are formed (newly elected political parties usually take at least a few months to draft their own government coalition programs), even better - during the elections.

Surprised about new EU laws and obligations? They have been discussed for 2+ years

Second, by following EU policy and other developments, founders can anticipate regulatory changes, adapt, and seize opportunities that sometimes get lost in news feeds. Far too often, European companies, including startup founders, learn about new regulatory changes during the adoption or even implementation phase, leading to shock, dissatisfaction, and the need to implement internal changes quickly. This all can be prevented by continuous monitoring on the state-of-play for AI, data, payments, consumer protection, and more - legislations are not adopted overnight, normally they take years to draft and negotiate. 

Speaking of opportunities that very few have heard of: the EU has launched an AI Service Desk to help European companies with compliance issues and an Apply AI alliance for various stakeholders to network and engage with policymakers. Next year, every country will have a dedicated AI regulatory sandbox - a controlled environment where AI systems’ compliance with the AI Act can be tested.

AI makes policy monitoring and engagement cheaper & accessible

Lastly, following EU and local policy developments is easier and cheaper than ever, with almost every founder now having some type of AI agent working for them. Surely, more mature startups, scaleups, and unicorns do have strong legal and public affairs teams - often by learning the hard way why staying up to date with local and European laws is important. 

By following news on digital, data, consumer protection, and startup innovation from the European Commission, the European Parliament, local ministries, and their agencies, one can create a custom-made agent/system to provide relevant information for their work. Add a few trusted think tanks, non-profits, blogs, and experts to the mix, and you can get a pretty decent and critical evaluation of the situation, which looks much better than the current hyperbolic "we're doing amazing” vs “bottle-cap-EU-bad” narratives that often dominate the EU debate currently. 

Once you start monitoring, plenty of ideas and knowledge about opportunities and threats follow. The initiative that deserves a special good-practice mention is the Fight Chat Control website, which not only tracks policy developments but also has pre-sets for letters to be sent to MEPs, local governments, and politicians. 

Specific policy developments to follow in the next 6-12 months

The European Commission’s program for 2026 - legislative and non-legislative - is, of course, long and complex. My answer for Lithuanian founders, who are normally very data, AI & export-focused, narrowed the list down to three things: the Digital/Data Omnibus, the Digital Fairness Act, and the 28th regime/EU.inc proposal. 

The Digital/Data Omnibus, which is still being negotiated, could bring a breath of fresh air for founders whose ability to develop AI is severely limited by a lack of access to data. Two important angles: 1) the GDPR’s definition of personal data (previously, the Commission suggested that after sufficient pseudonymization, the data shouldn’t be considered personal), and 2) the development of AI becoming a legitimate interest basis for personal data processing. Long story short, the Commission’s initial proposals have been met with criticism from those who see it as a threat to the EU’s personal data framework and fundamental rights, and the EU policymakers are currently trying to balance the debate on the matter, which is likely to spill over into the Lithuanian Presidency in H1 of 2027. 

The Digital Fairness Act hasn’t been officially announced, but is expected to be soon, while the Commission has previously communicated extensively that the EU’s consumer protection framework needs to be updated to be fit for the digital age. The Act could include new rules eliminating dark patterns and unfair subscription practices, EU-wide rules for social media marketing, and new limitations on personalized advertising. The last point may be important for founders who rely on personalized advertising to reach new clients and those abroad - if personal data-based advertising is limited, the alternative is less personalized, thus more expensive advertising, and a need to invest in alternative and often less effective means. 

Lastly, the EU’s 28th regime/EU.inc proposal is also worth following. Although Lithuanian founders are lucky not to even know about the struggles their counterparts in the West face with starting a company and dealing with paper-based bureaucracy, the proposal aims to provide a new corporate legal framework to aid scaling within the EU, and can become a good precedent for founders to further engage with the EU's policymakers in the near future:

The  Proposal for an EU Inc. corporate legal framework  provides faster (within 48 hours), cheaper (maximum EUR 100) and fully digital company registration, simplified procedures throughout the company life cycle, easier digital share transfers and capital operations, support for modern financing instruments, and the possibility for Member States to allow access to public equity markets. It also introduces fully digital insolvency procedures and automatic transmission of company data to relevant authorities in line with the “once-only principle,” while including safeguards against fraud and abuse. Moreover, it will provide a common optional scheme for employee stock options with harmonized deferred taxation, which will enable EU Inc. companies to attract the best talents.