Germany's Merz Calls for EU to Relax Industrial AI Regulations to Boost Productivity

Gate News message, April 20 — German Chancellor Friedrich Merz urged the European Union on April 19 to ease regulatory restrictions on industrial AI while maintaining stricter oversight of consumer applications, arguing that current rules are too restrictive for business adoption and hinder factory productivity gains.

Merz's push for deregulation is tied to Germany's "Made for Germany" initiative, under which 126 companies plan to invest more than 800 billion euros (approximately $942 billion) between 2025 and 2028 to strengthen the country's business environment. Much of this funding is earmarked for accelerating AI deployment across German industries. The remarks were made at Hannover Messe, where practical industrial AI applications are being showcased, including Siemens' autonomous packing robot and SEW-EURODRIVE's AI-powered factory automation chat function that operates without conventional large language model approaches.

The initiative reflects Europe's broader push for digital sovereignty. Europe currently imports over 80% of its digital technologies, with three major U.S. cloud computing providers controlling approximately 70% of the continent's cloud market. By focusing on industrial AI rather than competing with U.S. consumer AI companies, Europe aims to leverage its existing strengths in manufacturing and robotics while reducing dependence on foreign-controlled technologies.