Europe’s Tech Sector Enters the Political Arena

Europe’s technology sector is witnessing a notable rise in political engagement, with startups and investors actively shaping policy debates. The latest State of European Tech report from venture capital firm Atomico highlights this trend, moving beyond traditional analysis to advocate for specific regulatory and financial changes. Authored by Tom Wehmeier, a partner and head of intelligence at Atomico, the document outlines four core recommendations: Fix the friction, Fund the future, Empower talent, and Champion risk. Wehmeier emphasizes that simply tracking progress is no longer sufficient; the industry must now guide its own trajectory through deliberate policy influence.

Atomico, established in 2006 by Skype co-founder Niklas Zennström, brings considerable credibility to this effort. Its portfolio includes well-known European firms like Klarna, Stripe, and Supercell, lending weight to its advocacy. Mirroring tactics long used by Big Tech and U.S. competitors, European tech enterprises are increasingly investing in lobbying, both individually, by hiring public affairs specialists, and collectively, through coordinated campaigns that have drawn attention from European institutions.

Many of Atomico’s policy suggestions reflect ongoing discussions within both startup circles and Brussels policymaking forums. These include proposals for a pan-European company structure, often referred to as the 28th regime, which would simplify incorporation across member states. Other focal points are calls for lighter regulatory burdens and broader competitiveness measures, echoing themes from former European Central Bank president Mario Draghi’s 2024 analysis.

High-level political recognition is also evident. For the first time, the 2025 Atomico report includes a statement from European Commission President Ursula von der Leyen, who expressed her ambition for Europe to lead in artificial intelligence development. This engagement signals that tech lobbying is growing more nuanced and influential. On the proposed 28th regime, Atomico stresses the importance of its legal form, whether it becomes a regulation or a directive. The firm argues that only a regulation would provide the uniform application needed across the EU, whereas a directive would perpetuate fragmented national interpretations.

Such detailed policy work is not entirely new. Organizations like France Digitale and the Europe Startup Nations Alliance have released similar position papers. However, Atomico’s approach, supplementing its report with video content and presentations at events like Slush, aims to engage both tech professionals and policymakers directly.

Still, the advocacy push may overlook potential opposition. Broader public sentiment is not always aligned with tech sector priorities; few Europeans list the absence of homegrown trillion-dollar companies among their daily concerns. While sluggish economic growth affects society broadly, the industry’s lobbying efforts could benefit from stronger public outreach.

Alexandru Voica, head of corporate affairs and policy at AI firm Synthesia, notes that communication and policy roles have grown significantly over the past decade. He points to a deep distrust of the tech industry in Europe, explaining that what was once a marketing function has evolved into essential risk mitigation and reputation management.

There are inherent risks to this political mobilization. If the tech lobby becomes too closely associated with specific political factions, it could provoke a backlash and weaken its support base. Nevertheless, Atomico’s overarching message resonates widely: Europe stands at a critical juncture, and the choices made today will shape its technological and economic future.

(Source: TechCrunch)