Only 6.4% of Draghi report tech recommendations implemented in EU

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When a swarm of AI agents decided to hack the computation company Hugging Face in July, it took them six days. That event became a case study on how, and how fast, artificial intelligence (AI) is reshaping both economic and power dynamics worldwide. When Mario Draghi published his report on how to re-establish European competitiveness, it took 729 days for Brussels to realize that only a fraction of his recommendations had been enacted. Tomorrow will mark the second anniversary of the report’s presentation and, according to draghiwatch.eu , only 15.7 percent of his recommendations have been fully implemented so far.

Tech and telecoms policy might have lost the “Draghi spirit”

In digital and tech, the number of fully implemented recommendations is currently even lower: only 6.4 percent. Draghi made a point of putting technology at the core of EU reform, and zoomed in on telecoms as a critical sector to deliver tech sovereignty and growth for future decades to come. Why? Because 5G, fiber and future 6G networks are the backbone of our economies and societies at a time in which economic growth is driven by technology.

As to the connectivity sector, less than half of Draghi’s telecom recommendations have been picked up in ongoing reforms and policy strategies. None has been implemented yet. Worse, the recommendations that have moved forward so far are largely cost-creating for the industry, such as technology bans in 5G or forced phase-outs of copper networks. The measures that would directly boost investment remain limited, for now, mainly to spectrum proposals; more on this below. That implementation gap matters because the technologies now moving fastest are precisely the ones that depend on Europe’s connectivity foundations. AI, cloud, defense tech and satellite connectivity are no longer separate policy files: they are becoming one industrial race.

Four fights reshaping connectivity (and tech leadership) today

Since Draghi’s report was published in 2024, innovation in connectivity has moved fast. The first fight is helping Europe claim its slice of the AI boom. Telecom operators are doing their part: data must move between AI data centers and back to users, and advanced 5G and future 6G networks can help industry turn AI into productivity gains. A German manufacturing plant or an Italian port using 5G and AI applications should be able to compete with Chinese or American peers.

Worse, the recommendations that have moved forward so far are largely cost-creating for the industry, such as technology bans in 5G or forced phase-outs of copper networks.

The second fight is creating a healthy sovereign cloud market. Many telecom operators are already responding to the demand from European businesses and public administration to provide sovereign cloud offers.

Another crucial fight is the one for developing more defense tech capabilities in Europe. Here, the synergies between defense companies and the telecom sector are becoming ever clearer, as keeping Europeans safe now requires advanced and secure communications. Just think of drones : telcos are already deploying services to keep our public spaces safe from malicious drones.

Finally, the fight for tech leadership also takes to space: Europe rightly has the ambition to get into the satellite connectivity game rather than leaving it only to others. Here, a recent positive satellite spectrum decision by the European Commission might help build leadership over time.

Four reforms that will decide whether Europe catches up

The European telecom sector is a regulated one and its health has downstream effects on the whole digital economy. This is why Europe can only win in tech when it completes the deep telecom reforms suggested by Draghi. Our view is that this depends on at least four major policy actions.

First, we need scale. Europe’s telecom markets remain too fragmented, with many operators too small to invest at the scale needed for advanced networks and dramatically improved customer experience. Consolidation therefore becomes a necessary tool, both in-market and across markets, to create stronger operators able to invest, innovate and interact with major global AI, chip and platform companies. The review of the EU Merger Guidelines, and its practical application in telecom cases, will play a crucial role here.

Second, we need a new telecom rulebook . The Digital Networks Act (DNA) is currently being reviewed by the European Parliament and member states. So far, the Commission’s main material improvement for 5G and 6G investment is the proposal to make spectrum licenses unlimited. Yet, troubling signals from co-legislators suggest that even this improvement could be watered down. If that happens, the DNA would lose the one positive measure that analysts and investors have identified so far. Other areas that should be tackled are: deregulating the current heavy-handed access regime, which currently prevents a rush to invest in fiber; removing the introduction of mandated switch-off of copper networks, which might end-up unintendedly harming consumers and removing their freedom of choice; and materially improving the space for telecom innovation, with clearer rules on specialized services and simplified service regulation.

Europe can only win in tech when it completes the deep telecom reforms suggested by Draghi.

Third, we must defend security with better tools than some of those suggested in the Cybersecurity Act (CSA). Unless improved , the current CSA will impose major costs, estimated at €30-40 billion by GSMA Intelligence, on telecom operators and their customers, effectively contradicting other pro-investment policy objectives. De-risking connectivity is worthy, however, we have serious doubts that this can be done simply by imposing an indiscriminate technology ban, while we would need a proportionate and truly risk-based approach. What about compensation, as the U.S. did? What about the investment capacity of the sector? What about unintended effects on consumers? Things are still not well-thought through.

Fourth, we need a Cloud and AI Development Act that strengthens Europe’s sovereignty, competitiveness and resilience in practice. The starting point in the Commission draft is good : the ultimate goal should be to accelerate Europe’s cloud and AI capacity, while creating the right conditions for demand, investment, deployment and scale.

The time that separates the presentation of the Draghi Report from today’s underwhelming implementation is 729 days. In the same timespan, AI agents can generate 120+ Hugging Face hacking scandals. If we are to win the race, Europe needs good quality legislation, bold one. And it needs it faster.

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