The European Commission has put forward a package of measures intended to reduce the EU's dependence on non‑EU digital providers by strengthening chip production, cloud and artificial intelligence (AI) services, promoting open‑source software and digitalising the energy sector.
Why the package was proposed
According to the Commission, more than 80 percent of the EU's digital needs currently rely on non‑EU providers, posing significant risks to supply security and the economy. Henna Virkkunen, the European Commission member responsible for technological sovereignty, argued that the EU has the industrial base, talent and single market to change this dependence.
Ursula von der Leyen, President of the European Commission, stressed that the Union cannot afford to be reliant on third parties for technologies that operate hospitals, stabilise energy networks and keep essential services secure.
Chips: continuing the existing initiative
The package would extend the EU's existing chip production initiative. The Commission says that the programme has so far mobilised investments totalling €52 billion. Proposed legislation would aim to speed up authorisations and monitor vulnerabilities in the supply chain.
The materials note that despite the EU's strong position in equipment for chip manufacturing, projects can still fail in practice — the example of Intel's failed Germany investment is mentioned — and that the COVID‑19 pandemic exposed how chip shortages harmed several EU industries, notably the automotive sector.
Cloud and AI: separate laws
The Commission proposes separate laws to bolster the regulation of cloud services and AI, seeking a more harmonised rulebook for both areas. Its statement also emphasises that it remains open to like‑minded international partners, without naming specific countries.
Current market reality is that three US firms dominate the cloud market, the US also leads in AI with Chinese companies in a secondary role, while within the EU the only notable AI player cited is the French company Mistral.
Open source and digitalisation of energy
The package includes a strategy to promote open‑source software to replace as much as possible the non‑EU software currently used. The Commission states that the EU presently spends around €264 billion per year on software sourced from outside the Union.
The plans also foresee applying digitalisation and AI to make energy supply more efficient.
Funding and international comparison
The Commission did not detail all funding sources at the presentation, but the draft seven‑year EU budget due to start in 2028 foresees more than €50 billion for digital objectives within the new competitiveness fund.
For comparison, the United States in 2022 allocated more than $100 billion over five years solely to support chip production — a figure the article translates roughly to €86 billion at current exchange rates (without adjusting for inflation).
Reactions in the European Parliament
The proposals received mixed reactions in the European Parliament. The Renew Europe group welcomed the package as a good start but called for a faster and larger leap. Liberals criticised the lack of a clear definition of a sovereign cloud service; Dutch MEP Bart Groothuis warned that it may not currently be possible in the EU to train a large language model in a way that complies with all EU rules.
The Greens expressed scepticism. Dutch Green MEP Kim van Sparrentak said the belated package finally recognises the extent of Europe's digital dependence but ultimately falls short of expectations. She welcomed measures to promote open‑source solutions and support European technologies, but doubted these steps would be enough to secure long‑term independence from the United States. She also warned that, without clear requirements for the share of EU‑made products in technology procurement and stricter safeguards for cloud services, Europe risks turning its digital future into a marketing exercise.
Symbolic move from the Parliament
On the same day, the European Parliament announced a more symbolic measure: it will replace Google as the default search engine on its computers with the French search engine Qwant starting the next day.
Summary
The Commission's package aims at reducing the EU's digital reliance through continued support for chip production, new laws on cloud and AI, promotion of open‑source software and digitalisation of energy. Funding could come in part from the post‑2028 multiannual budget, but formal adoption will require agreement between member state governments and the European Parliament. While many MEPs call the proposals a step forward, several groups urge faster, clearer and stronger measures to achieve genuine technological sovereignty.
