CALL FOR EVIDENCE

FOR AN INITIATIVE (without an impact assessment)

This document aims to inform the public and stakeholders about the Commission's work, so they can provide feedback and participate effectively in consultation activities.

Title of the initiative

A European Data Union Strategy

Lead DG – responsible unit

DG CNECT, G1 Unit

Likely Type of initiative

Communication from the Commission

Indicative Timing

Q3-2025

Additional Information

-

This document is for information purposes only. It does not prejudge the final decision of the Commission on whether this initiative will be pursued or on its final content. All elements of the initiative described by this document, including its timing, are subject to change.

A. Political context, problem definition and subsidiarity check

Political context

This initiative follows on the actions laid down in the Data Strategy of 2020, which set out to establish an internal market where data can flow freely. Since then, technological and geopolitical developments have called for an updated approach. The Draghi report stated that the EU lacks large data sets and needs to promote cross-industry coordination and data sharing to accelerate the integration of AI, particularly generative AI, into the European industry. The Letta report of April 2024 stressed that more needs to be done to accomplish a real internal market for data. The AI continent action plan highlights the Data Union Strategy as key action to unlock the potential of AI.

The Political Guidelines for the 2024-2029 mandate of the European Commission further highlight the strong need to ‘exploit the untapped potential of data’. Last, the Commission’s Communication on ‘A Competitiveness Compass for the EU’ published in January 2025 states that a Data Union Strategy will be proposed to improve and facilitate secure private and public data sharing through transparent processes, simplify the regulatory regime and its application, and accelerate the development of new systems or applications while respecting fundamental rights.

Problem the initiative aims to tackle

The 2020 EU data strategy has yielded some results: the creation of common European data spaces as decentralized frameworks for the sovereign sharing and pooling of data by companies, e.g. with the help of data intermediation services regulated under the Data Governance Act; new rights of access to and sharing of industrial data under the Data Act; and health data under the European Health Data Space Regulation. Yet, as the AI revolution accelerates, more must be done to unlock industrial data and data from under-represented languages.

The EU economy, characterized by strong companies in traditional sectors but few large players in the tech sector, is facing challenges in the process of digitization. At the same time, large non-EU tech players are aiming to enter traditional industry sectors offering themselves as a partner of digitization. European industry is missing alternatives for digitization projects, including, but not limited to, developing and applying AI.

Different from the personal data economy, industrial data is domain-specific and held by many different players who face regulatory challenges in sharing and pooling data. Certain data are language-specific and may only exist in small numbers. As a result, innovative companies are unable to train or continuously improve foundation models for different industry domains or European languages.

Next to access to data, access to talent, computing facilities, and capital remains a challenge. The regulatory landscape on data use in the EU is marked by a complex mix of general and sector-specific laws, the interplay of which often is hard to understand for business enforced by different bodies or authorities, creating inefficiencies and uncertainties for businesses and public administrations. Despite efforts to harmonise rules on processing of personal data, Member States can deviate based on opening clauses or rights to specific opt-outs. A growing number of reporting and notification requirements in all kinds of legislations affect competitiveness.

Whilst international flows of data are becoming increasingly important throughout the economy, there are also challenges. European companies frequently encounter uncertainties regarding data transfers from non-EU countries back into the EU. Certain categories of EU data are not sufficiently protected from malign actors. Recent geopolitical tensions raise questions on the EU’s economic security in case of excessive dependencies on other countries, e.g. dependency on relevant data for certain fields of generative AI that hinders the EU’s ability to ensure its long-term competitiveness.

Basis for EU action (legal basis and subsidiarity check)

Europe has the potential to be at the forefront of the data economy, using data in a safe manner to empower trustworthy, non-discriminatory AI and enhance competitiveness on the global market - provided further actions are considered. A strategy may help European companies and citizens benefit more effectively from the data generated across the continent, while minimizing legal uncertainties.

Legal basis

The Communication itself is based on Article 114 of the Treaty on European Union (TEU). The Communication is expected to announce a range of initiatives and actions with different legal bases. Depending on the content and scope of the possible legislative and non-legislative instrument(s) announced, the legal bases appropriate for those legal instruments will be listed as appropriate when these are drafted.

Practical need for EU action

The cross-border nature of data markets poses challenges for individual Member States, as independent actions risk creating regulatory and market fragmentation. To prevent this, there is a growing need for a coordinated approach that considers the whole EU internal market. Such an approach would enable the achievement of economies of scale, create an ecosystem of trusted EU tools, empower European companies and foster a more cohesive, competitive, non-discriminatory and trustworthy European data and AI market. International data flows are an important aspect of EU companies’ competitiveness and effectively addressed at the EU level, where a unified approach enhances Europe’s negotiating power, ensures regulatory consistency in global engagements, and prevents fragmentation among Member States. While administrative burdens are also the result of national legislation, the EU legislative framework is also regularly the source of such burdens. Reducing this burden would support Europe’s broader competitiveness objectives.

B. What does the initiative aim to achieve and how

The first objective is to stimulate investments into data technologies and make available certain data assets through voluntary measures or funding, in order to enable scaled-up data use and availability, i.e. for the development of generative AI. This could include measures to improve data access for start-ups, such as a one-stop shop for on-demand access to additional data sources and further measures to facilitate voluntary data sharing.

The second objective is simplification. This should be done by (1) streamlining existing rules, and (2) developing data tools to reduce administrative burden. To consolidate the existing framework, it will be evaluated and targeted adjustments will be proposed where needed to make the instruments work together in the best way for an effective data economy, including effective governance mechanisms. Digital infrastructures should be developed and deployed to enable automatic compliance with reporting obligations. This could extend to considering the implementation of mandatory digital reporting in future legislative initiatives and facilitating digital reporting in existing legislation. 

The third objective is the development of an “International Data Strategy”, which should include actions to safeguard the export of EU data, as well as actions to stimulate data import into the EU. This requires an integral approach that factors in, amongst other things, the EU’s internal data acquis as well as the EU's external digital trade policy. Furthermore, the international data strategy should also consider access to common European data spaces and identify actions for priority engagement on bilateral and multilateral level as well as development of international rules conducive to data sharing on contractual basis.

Likely impacts

The economic impact of the measure is expected to materialise in more data-driven, predominantly AI, services and products, that will be designed according to the needs of users. The strategy will result in further development of a trusted and thriving data economy, thereby likely increasing the value of data in compliance with data protection and cybersecurity standards. A further integrated and digitally empowered single market will enable EU businesses -including SMEs- to scale up and make the most of the market, but also the public service to tackle pertinent societal challenges in all areas.

Simplification of the legislative framework will alleviate regulatory burdens of businesses. Reduction of administrative burden will impact the whole economy positively, but especially smaller- and medium enterprises that have less capacities for compliance tasks and where administrative burden is often the greatest challenge to investment.

Addressing international non-personal data flows at the EU level would bolster Europe’s role as a global digital leader, enhance regulatory coherence, attract data flows to the EU, and ensure stronger safeguards for the secure and competitive exchange of EU data with third countries.

Future monitoring

Given the nature of the initiative – a broad policy communication – the monitoring of the initiative will follow at a later stage when the different actions are implemented. The Commission will timely assess the strategy firstly through the European Data Innovation Board and the expert group for data matters and its diverse stakeholder group, as a monitoring mechanism, as well as report regularly to the relevant Council Working Party and parliamentary committees. The Commission will also assess the implementation of the strategy via the different actions that will result from it. Any legislative measures will be accompanied by a thorough assessment and appropriate evaluation mechanisms.

C. Better regulation

Impact assessment

As the Communication is setting out a strategy and an overview, for this type of action, no a priori impact assessments are required. Legislative proposals, potential actions or other proposals and initiatives that are likely to have a significant impact and policy options that are announced in the Strategy will be accompanied by impact assessments, where appropriate. The aim of the Data Union strategy is to set out a general approach, for which there is a lack of identifiable impacts.

Consultation strategy

The consultation activities will include:

A public consultation (see information below; targeted questionnaires to Member States and selected experts; targeted consultations, also on SMEs; sectoral workshops; expert interviews; high-level events and country visits

The SME community will be targeted directly, first, over the European Data Innovation Board and its SME representatives, and over the SME Enterprise Network.

In line with the European Commission’s Better regulation policy to develop initiatives informed by the best available knowledge, we also invite scientific researchers, as well as academic organisations, learned societies, and scientific associations with expertise in data policy, artificial intelligence, or/and administrative burden reduction, to submit relevant published and pre-print scientific research, analyses and data.

As part of this call for evidence, we are launching a public consultation on Have your Say which is open to everyone for reply. This can be found here: public consultations page. The questionnaire is published in English, French and German while the replies can be made in any of the 24 official EU languages. The public consultation consists of a questionnaire and will also have the possibility to attach a separate document. The public consultation will be open for 8 weeks. A factual summary report will be published on the consultation page after 8 weeks of closing the consultation. The Commission will also prepare, in due time, and following the closure of the consultation, a synopsis report which will sum up all consultation activities.

Why we are consulting?

The objective of the consultation process is to provide stakeholders with an opportunity to provide their views and help shape the future policy agenda on the EU data economy. It will also feed into possible future Commission initiatives in this policy area whilst listening to input of all stakeholders in a collaborative and inclusive way.

Target audience

Stakeholders will be grouped as:

·Citizens/General Public

·Public sector data providers

·Technology providers and business users

·Competent national authorities

·Data processing providers

·Data intermediation providers

·Data providers

·Industry, SMEs and business related to the provision, use and handling of data. This also includes industry associations, international organisations operating in the area of interest, generative providers AI companies and vendors of synthetisation solutions

·Trade associations

·Researchers and academia

·Platform representatives

·Civil society organisations and consumer associations

·Experts and think tanks: this includes researchers and specialists working on different topics of interest, research institutions