With the formal unveiling of the “European Technology Sovereignty Package”, the EU is stepping up strategic measures to strengthen the continent’s capabilities in key technological sectors and build a more sustainable digital future.
Recently announced by the European Commission (EC), the package covers a range of core technologies, including semiconductors, artificial intelligence (AI), cloud computing, and open-source software. Built around two major legislative proposals — the Chips Act 2.0 and the Cloud and AI Development Act — alongside an Open-Source Strategy, a Digitalisation Strategic Roadmap, and an AI Applications in Energy Roadmap, the EU’s policy package is expected to advance its ambition of transforming Europe into an “AI Continent”.
This renewed determination to master core technologies comes at a time when the EU remains heavily dependent on non-European providers for critical digital technologies, while demand for computing power is surging amid the rapid expansion of AI.
For many years, Europe largely accepted the dominance of major US technology companies across virtually every layer of the digital ecosystem, from software and infrastructure to data storage. This dependence has created not only strategic vulnerabilities but also significant economic costs.
European businesses currently spend 264 billion EUR annually on US software and cloud services, accounting for the bulk of their digital expenditure and rising steadily over time. Beyond financial costs, concerns over data security and sovereignty have become increasingly pressing. Extraterritorial US legislation allows US authorities to require technology companies to hand over user data, posing major challenges to Europe’s privacy protections and information security. Meanwhile, the risk of disruptions to cloud services.— once considered unlikely — has become more tangible amid growing international tensions.
Recent geopolitical uncertainties have reinforced Europe’s conviction that it must rapidly regain control over its digital future. Policymakers and experts across the continent recognise that without swift action, Europe risks falling further behind and becoming increasingly exposed to economic, data-related, and strategic security threats in an increasingly unstable geopolitical environment.
After years of deep reliance on US technology giants, Europe is gradually shifting from a model of cooperation to one of technological self-reliance. The newly announced policy package marks a significant turning point in the EU’s approach to technology, aiming to eliminate structural dependencies that have long constrained the bloc.
President of the European Commission Ursula von der Leyen stated: “We cannot continue to depend on external partners for technologies that determine the functioning of our hospitals, the stability of our energy grids, and the security of public services. This is about protecting our citizens, safeguarding our core interests, and preserving Europe’s ability to make its own choices.”
The EU is increasingly embracing an approach that places technological security, digital sovereignty, and defence capabilities at the forefront. This signals the potential for heightened competition between Europe and the US in strategically important digital infrastructure sectors. Determined not to remain merely a customer of the world’s leading digital solution providers, the EU is promoting a “Europe First” principle in technological development, particularly in public procurement and government purchasing across member states.
Unwilling to cede the digital arena to other global powers, the EU is advancing the development of independent digital infrastructure, strengthening technological competitiveness, and reinforcing Europe’s data security. In the coming period, the European Commission is expected to launch an investment drive and support the construction of AI gigafactories. The Commission will also conduct extensive consultations with member states, the European Investment Bank (EIB), and other stakeholders to establish a large-scale equity fund, providing robust financial resources to support Europe’s ambition of achieving digital technological sovereignty.
