At a European Parliament plenary debate in Strasbourg, Jozef Síkela, European Commissioner for International Partnerships, said recent incidents have demonstrated the need for adequate safeguards for the broad and safe use of artificial intelligence (AI). Síkela argued that the European Union’s AI Act is prepared to respond to challenges, and that the Commission is actively cooperating with partner countries to strengthen AI safety and protection.
The commissioner noted that AI offers significant benefits—such as improved forecasting of extreme seasons, early warnings for food production, advances in cancer treatment, and management of energy networks—and therefore international cooperation is crucial to manage risks and promote beneficial applications. He added that proper safeguards need not hinder innovation; on the contrary, they can increase trust and adoption by people and businesses.
Regulatory burden and capital shortages hitting European AI startups
During the debate, András László, Member of the European Parliament for Fidesz, warned that regulation and lack of financing are simultaneously hampering European AI startups. Citing presented figures, he said four out of ten companies are considering leaving the EU because they cannot access the funds needed to scale their activities. He also pointed out that AI startups in the United States can raise six to eight times more venture capital than their European counterparts.
László added that roughly 40 cents of every euro spent is used for regulatory compliance rather than for technological development. In his view, the AI Act is clearly insufficient. He proposed targeted exemptions from compliance for AI startups and tax incentives for European investors in the AI sector, arguing such measures would lower costs, reduce investor risk, and accelerate innovation. He also called for cheaper energy, which he said would benefit not only the tech and AI sector but the wider European industry and households. In his remarks he criticized what he termed a European "digital socialism."
Promote innovation rather than impose new limits
Ernő Schaller-Baross, another Fidesz MEP, made similar points: Europe needs competitive companies, successful startups and technological breakthroughs, not more restrictions. He said the European Commission should facilitate innovation rather than hinder it, warning that excessive regulation risks repeating the mistakes that weakened traditional European industry.
Schaller-Baross recalled that Hungary adopted its national AI strategy in 2020, which the government updated in 2025 and set new goals through 2030. The strategy aims to encourage strategic economic applications, develop infrastructure, support research and development, and strengthen AI competencies. He called this a good example to build on and urged joint efforts to prevent startups from relocating abroad.
International cooperation and independent testing
Dóra Dávid, MEP for the Tisza Party, emphasized that AI is key to raising productivity and curing diseases, so Europe must adopt the technology. She warned, however, that AI brings risks and that international cooperation is necessary to keep the most advanced AI models under control. She also advocated for independent assessors to test models before they reach the market or have the opportunity to ‘‘escape’’ into broader use.
Dávid added that Hungary offers a concept the Council of the European Union could act upon to help ensure AI serves the public good rather than becoming a threat.
Conclusions
The plenary debate highlighted two main concerns: the need for legal and safety rules to manage AI risks, and the danger that heavy regulatory burdens combined with limited capital will push European startups abroad. Speakers did not dismiss the necessity of the AI Act but called for adjustments and targeted measures to ensure both safety and continued innovation, and to make Europe an attractive destination for AI investment.
(MTI)
