On 30 June 2026, the Council of the European Union adopted a new regulation to simplify and streamline certain rules on artificial intelligence, as part of the Omnibus VII legislative package. The regulation aims to provide greater legal certainty and harmonised implementation of AI rules across the EU, while banning AI-generated non-consensual sexual deepfakes and child sexual abuse material. Marilena Raouna, Deputy Minister for European Affairs of Cyprus, said the deliverable under the 'One Europe, One Market' roadmap demonstrates Europe's unity and ambition.

The regulation postpones the application of high-risk AI rules: stand-alone high-risk systems must comply by 2 December 2027, and high-risk systems embedded in products by 2 August 2028. It also bans AI systems that generate nude images of real people or edit clothes out of photos as of December 2026. The deadline for establishing AI regulatory sandboxes is extended to 2 August 2027, and the grace period for transparency solutions for artificially generated content is shortened to three months, with a new deadline of 2 December 2026. The text clarifies the AI Office's supervision competences for general-purpose AI models, listing exceptions where national authorities remain competent, including law enforcement, border management, judicial authorities, and financial institutions. It also provides a mechanism to resolve overlaps between AI act high-risk requirements and sectoral legislation for medical devices, toys, lifts, and watercraft, allowing the Commission to adopt implementing acts to limit the AI act's application in specific cases. Products covered by the machinery regulation are exempted from direct AI act applicability, with the Commission empowered to adopt secondary legislation under the machinery regulation for health and safety requirements. The regulation adds a new obligation for the Commission to issue guidance to help economic operators of high-risk AI systems comply with the AI act while minimising compliance burden.

the European Council in October 2024 called for action on challenges identified in the Letta and Draghi reports, and the Budapest declaration of 8 November 2024 launched a 'simplification revolution'. Since February 2025, the Commission has put forward ten Omnibus packages to simplify legislation across sustainability, investment, agriculture, digitalisation, defence, chemicals, environment, automotive, and food safety. The regulation will be published in the EU's official journal and enter into force three days later.

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