GBIC: Promote European cloud/AI offerings without restricting freedom to choose providers

The European Commission’s proposals for a Cloud and AI Development Act (CADA) are intended to strengthen European cloud, AI and data center capacities, and to reduce strategic dependencies. The German Banking Industry Committee (GBIC) welcomes this objective in its latest statement. At the same time, digital sovereignty must not result in technological isolation.

Tanja Müller-Ziegler, member of the Board of Managing Directors of the Bundesverband der Deutschen Volksbanken und Raiffeisenbanken (BVR) [National Association of German Cooperative Banks], explains on behalf of the GBIC: “It is the view of the German Banking Industry Committee that digital sovereignty means the ability to act strategically. Europe should promote the development of a high-performing European cloud and AI ecosystem while maintaining an open approach to new technologies and not restricting the freedom to choose providers.”

From the perspective of the GBIC, CADA is addressing a real challenge. Europe relies on non-European providers in key parts of the digital value chain. The proposed measures to promote research, innovation, scaling and interoperability within the European single market can strengthen digital resilience. However, European alternatives should be able to succeed on the basis of their performance, security, economic viability and ease of integration rather than through the direct or indirect imposition of requirements to use them.

Avoid duplication of regulation

The GBIC takes a particularly critical view of Article 31 of the proposed Regulation. It contains an opening clause, which would entail additional requirements for private undertakings operating in highly critical sectors. This creates a risk of duplicate regulation for credit institutions, which is why the GBIC is demanding that Article 31 be deleted in its entirety. Müller-Ziegler emphasizes: “DORA already provides a comprehensive and directly applicable legal framework for the digital operational resilience of credit institutions. Additional, CADA-related requirements would create duplicate regulation, legal uncertainty and an additional administrative burden without providing any corresponding benefit in terms of resilience.”

The GBIC will constructively engage with the ongoing legislative process for CADA and continue to provide its expertise.