EU unveils tech sovereignty plan to curb reliance on US and China, but critics call it too timid

The European Commission has unveiled a comprehensive set of proposals designed to strengthen the continent's digital sovereignty and reduce its heavy reliance on foreign technology providers, primarily from the United States and China. The package, presented on Wednesday by Commission Vice-President for Tech Sovereignty Henna Virkkunen, aims to reshape Europe's digital landscape across cloud computing, artificial intelligence, and semiconductor production.

The dependency problem

More than 80% of the EU's digital products, services, and infrastructure currently come from external markets, according to the Commission. The bloc spends approximately €264 billion annually on digital products and services from foreign powers. This dependency has raised fears that critical services could be disrupted or weaponized by foreign governments.

We cannot afford to depend on these countries for technologies that ensure the smooth functioning of our hospitals, the stability of our energy networks, and the security of our services.

The vulnerabilities were starkly illustrated last year when China halted semiconductor exports, nearly bringing the European car industry to a standstill. There is also growing concern that a future US administration could use a "kill switch" to terminate American cloud computing services overnight or compel providers to hand over sensitive data under laws like the 2018 US Cloud Act.

The Commission's plan

The centerpiece of the package is the Cloud and AI Development Act, which introduces a four-level certification scheme. Public officials would be required to use this system to rate digital tools based on their vulnerability to foreign interference. In some cases, public bodies would be mandated to replace foreign services with European alternatives.

We are strengthening Europe's digital autonomy while keeping our economy open to our global partners.

The plan also includes a significant update to the EU's Chips Act, dubbed Chips Act 2.0, to secure semiconductor supplies in the age of AI. It proposes accelerating permit procedures, creating a new excellence label for regions specializing in advanced AI chips, and supporting promising European startups through public innovation procurement. A strategy to boost open-source software and a roadmap for digitizing energy networks with AI complete the package.

Political and international reactions

The proposals have drawn mixed reactions from European lawmakers. Many argue the plan is too permissive and lacks the necessary confrontation with US tech giants like Google, Microsoft, and Amazon, which together provide roughly 70% of cloud services used on the continent.

This long-delayed package finally recognizes the scale of Europe's digital dependency, but ultimately falls short. I am skeptical that this will be sufficient to ensure long-term independence from the U.S.

French centrist MEP Christophe Grudler noted the proposal would still allow foreign companies to service sensitive parts of the European economy. Center-right MEP Aura Salla expressed a desire to hear the Commission state more clearly that the US is no longer a trusted partner for the European public sector, akin to China.

The initiative risks opening a new front in ongoing tensions with the Trump administration, which has routinely criticized EU digital regulation and threatened allies with tariffs. The proposals must still be agreed upon by EU member states and the European Parliament, a process where some capitals may resist excluding American giants from sensitive tenders.

Challenges ahead

Defining what constitutes a truly European digital actor presents a significant hurdle. Questions remain about whether data centers built with billions in foreign investment, such as those announced by Japan's SoftBank in France, would be considered French. The ownership structure of companies like Mistral, the French AI champion which counts Microsoft among its investors, further complicates the definition of a 100% European service.

The Swiss perspective, as noted by Le Temps, suggests that non-EU nations like Switzerland should closely observe these developments, given their own public sector's reliance on American tech services for cloud contracts and digital mail processing.