Large Language Models (LLMs) excel in natural language tasks but still face challenges in Question Answering (QA) tasks requiring complex, multi-step reasoning. We outline the types of reasoning required in some of these tasks, and reframe them in terms of meta-level reasoning (akin to high-level strategic reasoning or planning) and object-level reasoning (embodied in lower-level tasks such as mathematical reasoning). Franklin, a novel dataset with requirements of meta- and object-level reasoning, is introduced and used along with three other datasets to evaluate four LLMs at question answering tasks requiring multiple steps of reasoning. Results from human annotation studies suggest LLMs demonstrate meta-level reasoning with high frequency, but struggle with object-level reasoning tasks in some of the datasets used. Additionally, evidence suggests that LLMs find the object-level reasoning required for the questions in the Franklin dataset challenging, yet they do exhibit strong performance with respect to the meta-level reasoning requirements.

The European Union has proposed the Artificial Intelligence Act which introduces detailed requirements of transparency for AI systems. Many of these requirements can be addressed by the field of explainable AI (XAI), however, there is a fundamental difference between XAI and the Act regarding what transparency is. The Act views transparency as a means that supports wider values, such as accountability, human rights, and sustainable innovation. In contrast, XAI views transparency narrowly as an end in itself, focusing on explaining complex algorithmic properties without considering the socio-technical context. We call this difference the ``transparency gap''. Failing to address the transparency gap, XAI risks leaving a range of transparency issues unaddressed. To begin to bridge this gap, we overview and clarify the terminology of how XAI and European regulation -- the Act and the related General Data Protection Regulation (GDPR) -- view basic definitions of transparency. By comparing the disparate views of XAI and regulation, we arrive at four axes where practical work could bridge the transparency gap: defining the scope of transparency, clarifying the legal status of XAI, addressing issues with conformity assessment, and building explainability for datasets.