Germany urges Europe to go “on the offensive” in AI regulation

Germany’s Finance Minister Lars Klingbeil has urged European policymakers to take a more assertive approach to regulating artificial intelligence, warning that the continent risks falling under the influence of major US technology figures if it fails to act decisively.

Speaking at a press conference in Berlin on Tuesday, May 26, Klingbeil said that while AI holds “great potential,” Europe faces a critical challenge in implementing “sensible regulation” to ensure it remains competitive and retains control over its digital future.

The Social Democrat politician, who also serves as vice chancellor in Germany’s conservative-led coalition government, argued that the influence of leading US tech entrepreneurs extends beyond economics into the political sphere.

Apart from their extensive economic power, the US “tech bros” have enormous political power, he said, adding that Europe “has become the battleground” because major technology companies “know that apart from perhaps the US, Europe is the only place that can effectively enact political regulation.”

Referring to concerns raised about artificial intelligence, including those highlighted in a recent encyclical by Pope Leo, Klingbeil stressed the need for Europe to act proactively.

“This is a battle ... and one where we must really go on the offensive,” he said.

He also made clear that he does not want key decisions about the future of digitalisation to be shaped by prominent US tech figures.

“I don't want the future of digitalisation to be decided by [Tesla founder and X-owner] Elon Musk or [former PayPal boss and tech investor] Peter Thiel. I want us to have strong European players,” Klingbeil said.

The minister added that he is open to the idea of introducing a digital tax as part of Europe’s broader regulatory approach.

His remarks come as the European Commission has in recent years launched multiple investigations into major US technology companies, including Apple, Google, Meta and X, in some cases imposing or seeking billions of euros in fines.

At the same time, US President Donald Trump has repeatedly accused the European Union of treating American firms unfairly, highlighting ongoing transatlantic tensions over tech regulation.

By Tamilla Hasanova