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Twelve hours in Brussels

The trilogue on the EU AI Act's Digital Omnibus reform broke down before dawn on 29 April. The substantive question — whether sectoral regulations should pre-empt the AI Act's horizontal logic — is not new. The pressure of the August deadline is.

N° 03 8 May 2026 Based on EU institutional reporting
12 min read 2,385 words

The news, in plain terms: on the night of Tuesday 28 April, negotiators from the European Parliament and the Council of the European Union sat down in Brussels to try to agree on a common position for the trilogue talks that will reform the EU AI Act. They negotiated for twelve hours. Around two in the morning on Wednesday they gave up. They will resume in two weeks.

This sounds procedural. It is procedural. The question is whether the procedure can finish before 2 August 2026 — the date on which a substantial set of obligations under the original AI Act was always scheduled to take effect for high-risk systems, and which the European Commission's reform package had been intended to push out to December 2027. If the reform does not pass in time, the original deadline holds. Companies that built compliance programmes around the postponed timeline would need to compress sixteen months of work into roughly thirteen weeks.

This piece is shorter than the previous two issues of Lecturas, because the source is shorter and tighter. The job here is less about extracting an argument from a long conversation and more about translating a procedural news item into something a non-specialist can hold in their head — including what the Annex I vs Annex III split actually means, and why a fight about moving items from "Section A" to "Section B" is in fact a fight about the architecture of European AI regulation.

Part one
§ 01 — What happened

A trilogue, and why it broke

The Digital Omnibus on AI is the European Commission's package of proposed reforms to the AI Act, published on 19 November 2025. Both Parliament and Council had previously aligned on its core postponements. The 28 April session was supposed to translate that alignment into a shared formal negotiating position. It didn't.

The Commission's omnibus would postpone two compliance dates. The first: the date on which the AI Act's obligations bite for high-risk systems classified under Annex III — currently 2 August 2026 — would move to 2 December 2027, a sixteen-month extension. The second: the date for AI systems embedded in regulated products under Annex I would move to 2 August 2028. The Council and Parliament both, on the record, supported these postponements going in.

What broke down was a different question. According to MLex's reporting on the room, the fault line ran through the European Parliament's push to move sectoral legislation from Annex I Section A to Section B. The Council, broadly, resisted. Around two in the morning the Cypriot presidency — Cyprus currently chairs the rotating Council presidency, which means a Cypriot official was running the negotiation from the Council side — concluded that no agreement was reachable that night. Talks will resume in roughly two weeks.

Background — What is a trilogue?

A trilogue is the closed-door negotiation between three EU institutions — the Parliament, the Council (representing member states), and the Commission (which proposes laws) — through which most EU legislation is finalised. Trilogues are not formal procedure; they are the political compromise stage where the actual deal gets cut. They typically run under intense time pressure and frequently go all night.

When a trilogue "breaks down," it usually means the parties couldn't agree to enter the formal text-stage negotiation in their next planned slot — not that the negotiations are over. Reconvening within two to three weeks is normal. What is unusual here is the deadline pressure: the August date the omnibus is meant to postpone is itself less than thirteen weeks away from the next scheduled round.

Exhibit 01
The deadlines, original and proposed
Original AI Act timeline vs Digital Omnibus postponement vs the gap if reform doesn't pass
DATE ORIGINAL AI ACT DIGITAL OMNIBUS PROPOSAL Aug 2024 AI Act enters into force no change Aug 2025 GPAI obligations take effect no change 2 Aug 2026 High-risk Annex III deadline if reform fails: this still applies → moves to 2 Dec 2027 2 Dec 2027 Postponed Annex III deadline 2 Aug 2028 Annex I (in-product) deadline Postponed Annex I deadline TODAY · 7 MAY 2026 ~13 weeks remain to the original Annex III deadline. Trilogue resumes in two weeks.
Sources: Original deadlines from Regulation (EU) 2024/1689. Proposed postponements from the European Commission's Digital Omnibus on AI, 19 November 2025. Status of negotiations as of 29 April 2026, per IAPP and Reuters reporting.
Part two
§ 02 — Annex I, Annex III, Section A, Section B

A fight about architecture, not timing

The deadlines were settled. What broke is a structural disagreement about which AI systems should be governed by the AI Act's horizontal rules and which should defer to the sectoral regulators that already exist for the products those systems are built into.

Here is the simplest version of what each annex governs.

Annex III is a list of standalone high-risk AI use cases — biometric identification, AI in employment decisions, AI in education, AI in critical infrastructure, AI in law enforcement, AI in administration of justice and democratic processes. These are governed primarily by the AI Act's horizontal framework: the same rules apply across sectors, regardless of what industry the system is deployed in.

Annex I is different. It covers AI systems embedded in products that are already regulated by EU sectoral law — medical devices under the Medical Device Regulation, toys under the Toy Safety Directive, machinery under the Machinery Regulation, vehicles under their own type-approval rules, lifts, pressure equipment, civil aviation. These get governed by a combination of those existing sectoral regimes and AI Act obligations layered on top.

Within Annex I there are two sub-lists, Section A and Section B. The current architecture puts most regulated products in Section A, where AI Act obligations apply directly alongside the sectoral rules. Parliament's reform position, broadly, would move significant categories into Section B, where the sectoral regulator would handle the AI dimension and the Act would step back. Council, broadly, wants fewer categories moved.

This is a genuine policy disagreement, not a technicality. It maps onto two competing visions of what an AI regulation should be.

Exhibit 02
The Annex split, in plain English
What the AI Act treats as horizontal high-risk vs what it lays on top of existing sectoral law
ANNEX III Standalone high-risk uses governed by AI Act horizontal rules · biometric identification · employment & HR decisions · education & vocational training · critical infrastructure · law enforcement, justice, migration ANNEX I AI embedded in regulated products already covered by sectoral law · medical devices (MDR) · toys (Toy Safety Directive) · machinery, lifts, pressure equipment · vehicles (type-approval) · civil aviation, marine equipment SECTION A AI Act applies directly parallel compliance with sectoral & AI Act regimes SECTION B Sectoral regulator handles AI obligations folded into existing assessment regime THE FIGHT Move how many categories from A to B? Parliament: more Council: fewer Moving categories from A to B reduces parallel compliance burden but fragments the AI Act's claim to be one horizontal framework. That trade-off is what the negotiators couldn't agree on.
Source: Diagram by the editor, based on Regulation (EU) 2024/1689 (Annexes I and III), the Digital Omnibus on AI proposal of 19 November 2025, and reporting by IAPP, MLex, Politico, and Euractiv on the negotiating positions of the Parliament and Council as of late April 2026.

The pro-simplification reading — closer to Parliament's lead, with German conservative and industrial backing — is that AI risk in regulated products is best handled by existing sectoral expertise. A pacemaker is a medical device first and an AI system second; the medical device regulator already knows how to assess it, and adding parallel AI Act obligations creates duplication without adding safety. The Italian MEP who leads Parliament's AI file, Brando Benifei, has acknowledged that a wholesale sectoral shift would shatter the AI Act's horizontal coherence into a dozen separate compliance logics — but has signalled openness to alternatives short of that.

The pro-horizontal reading — closer to the Council's median position, and to civil society and Green objections — is that having a horizontal AI Act with widening sectoral exceptions undermines the point of having a horizontal AI Act in the first place. The architecture was supposed to be a single coherent framework. Carving out more Section B exceptions returns Europe to the fragmented patchwork it tried to escape.

These are not symmetric framings. They are competing readings of the same legal instrument.

Part three
§ 03 — Who is pushing for what

A coalition, not a single dissenter

The reporting around the breakdown describes alignments rather than personalities. The most contested word in the coverage is the Greens' description of the EPP–right cooperation as a "coup" — rhetorical, but pointing at a real mechanism.

The German chancellor, Friedrich Merz, has pushed publicly for stronger deregulation of industrial AI on the ground that products already covered by sectoral law should not need a second AI Act compliance regime. Siemens, the German industrial conglomerate, has been a vocal corporate proponent of the same position. The European People's Party — the centre-right grouping that includes Merz's CDU — has aligned with this position in Parliament. The pan-European industry federation Digital Europe estimates that aggressive simplification could avoid up to €31 billion in compliance costs, and has framed the trilogue delay as the democratic process working as intended.

The opposing coalition includes the Greens (whose Dutch shadow rapporteur, Kim van Sparrentak, used the word "coup" to describe what she saw as EPP coordination with parties further right), parts of the centre-left S&D group, civil society organisations, and former AI Act negotiators including Laura Caroli — who served as Benifei's policy advisor through the original AI Act file and has warned publicly that the current delay risks torpedoing both the omnibus reform itself and the European AI standardisation ecosystem that the Commission has been investing in for years. The Cypriot presidency of the Council sits in the chair, structurally non-aligned but under pressure to deliver an agreement on its watch.

Exhibit 03
Where the actors stand
Pro-simplification, pro-horizontal-architecture, and the procedural chair, as of 29 April 2026
PRO-SIMPLIFICATION "move more from A to B" EPP centre-right group, Parliament's largest German government Chancellor Merz, CDU/CSU coalition Industry Siemens, Digital Europe federation EPP rapporteur Arba Kokalari (Sweden) PRO-HORIZONTAL ARCHITECTURE "keep the framework coherent" Greens / EFA Kim van Sparrentak (Netherlands) Council median position though Council is internally split Civil society consumer groups, digital rights NGOs Former negotiators Laura Caroli, Benifei's adviser on original Act PROCEDURALLY IN THE CHAIR Cypriot presidency of the Council; Parliament lead negotiator Brando Benifei (S&D, Italy)
Source: Position alignments based on IAPP, Reuters, Politico Europe, and Euractiv reporting from 28 April – 1 May 2026. Group affiliations as of the current European Parliament term. Cyprus holds the rotating Council presidency for the first half of 2026.
Part four
§ 04 — The August deadline

The deadline is the leverage

The whole shape of the negotiation is set by the calendar. If the omnibus does not pass in time, the original Annex III deadline holds, and a substantial set of obligations bites on 2 August.

On 2 August 2026, the original obligations under the AI Act for high-risk systems classified under Annex III take effect: full compliance with risk management systems, data governance requirements, transparency obligations, human oversight provisions, conformity assessments, and post-market monitoring. The Commission's omnibus would have postponed all of this to December 2027. If the omnibus does not pass, providers and deployers of Annex III systems active in the EU market need to be in compliance — or out of the market — by 2 August.

The arithmetic is unforgiving. EU legislative procedure, even at maximum political urgency, requires a finalised trilogue agreement, a Parliament plenary vote, a formal Council adoption, and publication in the Official Journal. The next trilogue round is roughly two weeks away. From there, even an aggressive timetable to formal adoption realistically requires at least four to six weeks. That puts a best-case adoption date in late June or early July — tight but possible. A failure of the next trilogue round, or a third one, pushes the realistic adoption window past 2 August entirely.

What companies are doing in the meantime. Reporting on industry response describes a bifurcated stance: large multinationals with substantial EU exposure are continuing dual-track work — preparing for the original August deadline as a hedge while lobbying for the postponement — while smaller European firms with thinner compliance teams are increasingly visibly stranded between the two scenarios. The €31 billion compliance-cost figure cited by Digital Europe is, by its own admission, an aggregate over the postponement period rather than a one-off; the relevant figure for any single firm depends entirely on which annex its products fall under.
Coda

Three things to watch. First: whether the Council's negotiating position softens on the Section A→B question, which would be a substantive win for Parliament's pro-reform faction and a structural concession on the horizontal logic of the AI Act. Second: whether the Commission proposes any kind of emergency simplification — a targeted enforcement-discretion instrument, a delegated act, a recital-only clarification — that doesn't require full omnibus adoption. Third: how member states with significant AI Act exposure manage the political costs of either outcome. Germany's domestic position has shifted under Merz; France's has, so far, not.

The piece of this story least visible from the news cycle is what it says about the AI Act's coherence as a legislative project. The Act was sold as a horizontal framework that would set the global standard for AI governance. The push to move significant categories of high-risk systems out of that framework and into sectoral regimes is not a technical adjustment. It is a structural retreat from the framework's original ambition. Whether that retreat is being driven by genuine learning about what works, or by industrial lobbying using a deadline as leverage, is the real question — and one trilogue, even a twelve-hour one, was never going to settle it.