A Digital Policy Turning Point and Paradigm Shift

The year 2025 marked a turning point in the field of digital policy. The German federal elections in February signalled the end of the parliamentary term for many digital policy-makers in the Bundestag. They made way for new representatives in this field, who first had to find their footing. At the same time, a new German federal government under the leadership of the CDU/CSU took on responsibility. With the creation of the Federal Ministry for Digital Affairs and State Modernisation, this government laid the foundations for a paradigm shift in digital policy. Under the leadership of Karsten Wildberger, the Ministry of Digitalisation marked the first attempt to organise and consolidate digital policy in Germany, which had previously been spread across various ministries. Certainly, additional aspects could have been transferred to the Ministry of Digitalisation, but from the perspective of the Internet industry, an important start has been taken.

The coalition agreement between the CDU/CSU and the SPD also raised expectations that digital infrastructure in Germany will in future be regulated more closely aligned with European guidelines, and that excessive requirements – particularly for the construction and operation of data centres – will be scaled back. A data centre strategy was set to outline the approach for expanding and developing digital infrastructure. Greater centralisation was also indicated in the area of data protection. The governing coalition recognised that the fundamental challenges facing the Internet industry need to be addressed urgently and put forward concrete proposals to that end. At the same time, this was offset by a tightening of security laws and the reintroduction of data retention measures that are considered to violate fundamental rights.

In legislative terms, 2025 was primarily characterised by the completion of legislative projects that the traffic-light coalition had failed to bring to a conclusion. Progress was made on the NIS2 Implementation and Cybersecurity Strengthening Act. The completion of this legislative process is expected in January 2026. It is important that the German federal government also swiftly passes the law for critical infrastructures (KRITIS). The resilience of digital and critical infrastructure is of central importance at this time.

In addition to the ambitious start of the German federal government, the European Commission under Ursula von der Leyen also signalled a review and harmonisation of the extensive digital regulatory framework developed in recent years. This was intended to reduce the bureaucratic burden on the Internet industry. A draft Digital Omnibus Regulation from November 2025 underlines this ambition, which could certainly be even more ambitious. A European Cloud and AI Development Act was also intended to provide greater clarity and legal certainty for the development and design of AI.

These developments are taking place against the backdrop of a tense global situation that is forcing politics, business and society to rethink their approaches. The threat of trade tariffs from the United States and the disruptive actions of the US administration have led to a critical examination of digital dependencies and data flows within public authorities and corporate headquarters. The topic of “digital sovereignty” re-entered the political debate, and the German federal government also placed it at the centre of its work. At the European Summit on Digital Sovereignty, led by Federal Chancellor Friedrich Merz and French President Emmanuel Macron, European nations reaffirmed their intention to actively shape digitalisation and to anchor it within a values-based framework.

In 2025, eco actively accompanied all current and pressing debates in digital policy. Digital sovereignty, cybersecurity, and plans for data retention at both German and European levels were at the forefront. Through established events such as the Internet policy forum and polITalks, as well as new initiatives like the Digital Innovation Night and the virtual format “Law in Practice”, eco sought dialogue with policymakers, public administration and its members in its 30th anniversary year. Roundtables and background discussions provided the framework for a relationship of trust and open exchange.

Outlook for 2026

The year 2026 will show whether the German federal government and the Commission can achieve their goals – and whether they can sharpen their ambitions further. The latter is essential for the successful growth of the digital economy in Europe, a key driver of overall economic development. Major digital reforms, such as those relating to data protection at the national level, must be addressed this year if they are to have any chance of being set in motion during the current legislative period. In digital policy terms, 2026 will be a make-or-break year for digitalisation.

Oliver J. Süme
Chair of the eco Board
eco Board Member for Policy, Law & Regulations