Regions and cities push for simpler digital tools and advanced cybersecurity capacities

ECON members also stressed the need of a place-based approach to the EU defence industry and to industrial acceleration policies.

Strengthening Europe's competitiveness and resilience through advances in digital transformation, cybersecurity, and industrial policy while ensuring that local and regional authorities are adequately supported and actively involved was the main focus of the meeting of the Commission for Economic Policy (ECON) on 23 April. Local and regional leaders adopted a draft opinion, calling for the simplification of digital public services through user-friendly European Business Wallets. They also addressed growing cybersecurity challenges, and how to align industrial and defence initiatives with territorial needs.

Simplifying digital public services

Digital transformation is a key driver of European competitiveness and a cornerstone for economic productivity. However, complex procedures and regulatory and administrative burdens remain that continue to hinder the full potential of the Single Market. In this context, ECON members adopted a draft opinion on European Business Wallets (EBWs), stressing that they must be designed as simple, user-friendly and cost-effective solutions, particularly tailored to the needs of SMEs, micro-enterprises and start-ups, to support business growth across borders. They highlighted that EBWs should enable a 'once-only' principle, allowing businesses to submit data a single time and reuse it across different administrative procedures. They also called for targeted awareness-raising and clear guidance to ensure broad uptake, as well as adequate financial support, technical assistance and training to help local administrations meet new obligations.

Rapporteur Branislav Zacharides (SK/ECR), Mayor of Vrútky, said: "The deployment of the Business Wallets will entail new administrative obligations for public authorities, which can be especially burden some for smaller municipalities. We therefore call on the European Commission and Member States to provide adequate technical capacity-building and financial support so that the Wallets can deliver real added value."

The opinion is scheduled to be adopted during the 1-2 July CoR plenary session.

Highlighting cybersecurity risks and the need for coordinated efforts to strengthen resilience across all levels of governance, ECON members also addressed the upcoming Cybersecurity Review and the Digital Networks Act, which aims to strengthen digital infrastructure resilience and accelerate high-speed connectivity. Local and regional leaders noted that these initiatives will significantly increase responsibilities for regions and cities, and while supporting these objectives, ECON members warned that the new obligations may put pressure on local administrations, particularly those with limited resources and technical expertise. They called for adequate financial support, training and capacity-building to ensure all authorities can meet the new requirements.

ECON members will vote on the opinion on the Digital Networks Act, Cybersecurity Act 2 and NIS2 amendment, currently being prepared by Zdeněk Hřib (CZ/Greens), member of the Prague city assembly, when they meet on 6 July.

Industry and defence

During the meeting, ECON members discussed the EU Defence Industry Transformation Roadmap and the Industrial Accelerator Act, focusing on their territorial implications and stressing the need for a coherent place-based approach. They underlined that regional and local authorities must be involved not only in implementation but also in shaping investment priorities and industrial strategies. Members highlighted the urgency of strengthening EU defence capabilities by scaling up production, securing supply chains and investing in strategic and dual-use technologies. They also emphasised the need to balance competitiveness, strategic autonomy and decarbonisation while avoiding excessive administrative burdens or regional disparities, noting the key role of cities and regions in public procurement and industrial acceleration areas. Integrating both frameworks, they concluded, can maximise synergies between security, industrial policy and cohesion, delivering tangible benefits for local economies.

The outcomes of the discussions will contribute to the opinions on the EU Defence Industry Transformation Roadmap, currently being drafted by Tadeusz Truskolaski (PL/EA), Mayor of the City of Białystok, and on the Industrial Accelerator Act, currently being prepared by Willy Borsus (BE/Renew), member of the Municipal Council of Marche-En-Famenne.

Also during the meeting

Members of the ECON commission held a debate on how local and regional authorities can address gender bias in Artificial Intelligence by ensuring fair, transparent, and accountable use of these systems, strengthening staff capacity, maintaining human oversight, and adopting clear ethical standards for their deployment. They also discussed the Review of the General Block Exemption Regulation (GBER) related to state aid. Members highlighted that while the expanded flexibilities under the GBER aim to boost investment, they may lead to uneven territorial and competition effects - as wealthier regions are better able to provide aid - potentially widening regional disparities.

ECON members appointed RobertaAngelilli (IT/ECR), Vice-President of the Lazio Region, as rapporteur for the opinion on EU Inc. - the new set of rules designed to make life easier for business in the Union - and AdamBanazak (PL/EA), Councillor of Inowrocław County, as rapporteur for the opinion on the Industrial Maritime Strategy.

More information

• Video and photos from the meeting.

• The European Business Wallets are one of the key deliverables of the Digital Package of the European Commission, published on 19 November 2025. The Commission proposes a regulation to establish those Wallets as a harmonised digital solution to ease the administrative burden and to enable companies and public sector bodies to identify, to authenticate and to exchange data in a secure and user-friendly way, with full legal effect across the European Union.