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The European Health Data Space (EHDS) addresses the regulatory gap left by GDPR, establishing a comprehensive legal framework for responsible health data use across Europe. This ambitious initiative, central to the EU’s digital strategy, aims to bolster digital sovereignty, fuel the European healthtech industry, and reduce reliance on non-EU tech entities. The EHDS empowers citizens with control over their personal health data, facilitating seamless access and secure sharing for individual care (primary use). It also enables the regulated, ethical utilization of aggregated data for vital research, innovation, and policymaking (secondary use). By fostering common standards and infrastructure, the EHDS seeks to create a single market for digital health services, promising significant advancements in healthcare and medical research. However, realizing these benefits demands overcoming substantial hurdles: achieving robust data interoperability across diverse national systems, building public trust through transparent governance and stringent cybersecurity, and ensuring careful alignment with existing complex healthcare legislation. Successful phased implementation will require concerted Member State efforts to develop secure, user-friendly, and cross-border infrastructures, alongside proactive communication to address public skepticism and unlock the EHDS’s transformative potential for an effective and resilient European Health Union.