Europe is entering 2026 with a clear understanding: progress in digital policy will be difficult, but essential. Following a turbulent 2025 marked by geopolitical shifts and internal struggles, the European Union is preparing for a year of critical legislative initiatives that will shape its digital future, with key decisions culminating in 2027 under the Lithuanian and Greek presidencies.
The core challenge remains balancing competing political interests, prioritizing effectively, and managing transatlantic tensions – particularly as the U.S. closely monitors EU tech policy, potentially triggering retaliatory measures.
The Digital Omnibus: Boosting Competitiveness
By mid-2026, the EU is expected to finalize its position on the Digital Omnibus, a key initiative aimed at strengthening European digital competitiveness. While optimistically slated for implementation by mid-2027, real-world timelines are often less predictable.
The initiative faces resistance from multiple sides: some argue it doesn’t go far enough, while others seek any opportunity to halt progress. Greater clarity and louder advocacy from European tech founders could help balance the debate, but navigating the consultations is challenging.
The Digital Networks Act: A Contentious Debate
The European Commission is set to unveil the draft Digital Networks Act (DNA) on January 20. Originally delayed due to a negative review from the Regulatory Scrutiny Board, the revised version seeks to address concerns while maintaining its core objectives.
The DNA faces significant opposition: EU Member States are reluctant to cede national control, while consumers and civil society groups oppose network fees, despite proposals for dispute-resolution mechanisms. Adding to the complexity, the EU has pledged to the U.S. not to introduce such fees under the EU–US trade deal, though its relevance remains uncertain.
Digital Fairness Act: Restricting Personalized Ads
The Digital Fairness Act (DFA) is expected in Q4 2026, aiming to restrict personalized advertising and reshape social media user experiences. Proponents argue for greater consumer control over data, while critics warn that the DFA overlaps with existing regulations and will disrupt businesses, especially SMEs and digital marketers.
The debate will intensify as the implications for targeted advertising become clear.
Chat Control: Balancing Security and Privacy
Following a compromise deal brokered by the Danish Presidency in November 2025, the EU is now negotiating Chat Control with the European Parliament. This proposal, intended to combat online child sexual abuse, requires tech companies to scan messaging for harmful content, raising concerns about mass surveillance and digital identification.
Trilogues will be contentious, and a common position may not be reached before temporary rules expire in spring. The European Commission has requested a two-year extension until April 2028.
The Digital Euro: A New Payment System
The European Central Bank is accelerating the development of the digital euro, with legislation expected in 2026. This initiative aims to create a European payment alternative, fostering competition, reducing fragmentation, and promoting fintech innovation.
However, the digital euro will likely impose limits on individual holdings, requiring users to link back to traditional bank accounts. Resistance from both European banks and American payment companies is anticipated.
Cybersecurity Act: Strengthening Risk Management
On January 14, the European Commission is expected to publish a revised draft of the Cybersecurity Act. The proposal seeks to strengthen the 5G cybersecurity toolbox, making its measures mandatory, and expanding the definition of high-risk vendors to include strategic sectors beyond telecommunications.
The EU aims to tighten controls over critical infrastructure, but the debate will likely focus on balancing security with economic competitiveness.
Conclusion: Europe’s digital agenda in 2026 is packed with legislative battles, geopolitical pressures, and competing interests. Success hinges on navigating these challenges effectively while ensuring that the EU remains competitive, secure, and aligned with its long-term strategic goals. The next two years will be critical in shaping the continent’s digital future.
