EU Unveils Tech Sovereignty Package to Curb Reliance on US and China

The European Commission has presented a comprehensive tech sovereignty package aimed at boosting domestic technologies and reducing dependence on US and Chinese companies. The initiative focuses on cloud infrastructure, AI services, open-source technologies, and chips.

Key Points

"The target is to achieve something visible by 2030."
— European Commission Executive Vice President Henna Virkkunen

• Public cloud procurement tiers: The package introduces four levels of digital sovereignty for public cloud contracts. The highest tier could bar non-European companies from sensitive sectors such as defense and healthcare.
• Stimulating chip demand: Following the limited success of the first Chips Act, the EU seeks to boost demand for European semiconductors, particularly in the automotive and other key industries.
• Driven by AI needs: The initiative is fueled by the EU's lag in data center construction and chip supply, both critical for AI development.

Background

The EU currently imports the vast majority of its technology. US giants Amazon, Microsoft, and Google control 80% of the European cloud market. Former Italian Prime Minister Mario Draghi's report attributed the GDP growth gap between the EU and US directly to digital technologies.

Statements

"Europe cannot regulate its way out of technological dependency."
— MEP Matthias Ecke

• Henna Virkkunen (Commission EVP): Called for visible results by 2030.
• MEP Axel Voss: Described the approach as "bold and pragmatic."
• MEP Matthias Ecke: Warned that regulation alone cannot solve the dependency issue.

Potential Reactions

Concerns exist over potential retaliation from the US or China. However, the Commission considers the US front addressed by the Turnberry agreement. Both superpowers rely heavily on access to the EU market, which may limit any aggressive countermeasures.