A broad coalition of European tech industry leaders is urging EU lawmakers to take radical action to reduce reliance on foreign-owned digital infrastructure. This move is aimed at strengthening the EU’s economic prospects, resilience, and security in a time of geopolitical uncertainty.
The coalition, comprised of over 80 signatories representing around 100 organizations, is calling for a shift in support efforts towards promoting homegrown alternatives with strong commercial potential. This includes apps, platforms, AI models, chips, computing, storage, and connectivity.
The push for a “Euro stack” of digital infrastructure comes in response to recent geopolitical tensions and the realization that key tech infrastructure owned by U.S. companies may not always be reliable. Recent events, such as the U.S. executive order affecting service provision in Ukraine, have underscored the need for Europe to prioritize its digital sovereignty.
The coalition emphasizes the importance of fostering demand for European-made technologies to prevent U.S. hyperscalers from dominating critical digital infrastructure provision. Urgent action is needed to avoid Europe losing out on digital innovation and productivity growth.
One key recommendation from the coalition is the adoption of public procurement requirements that would prioritize European providers for public sector digital needs. This “Buy European” mandate aims to create a level playing field for European suppliers and stimulate investment in local technology solutions.
The coalition’s message is clear: Europe must take decisive action to support its homegrown tech industry and reduce reliance on foreign-owned digital infrastructure. By prioritizing European innovation and fostering a competitive market, the EU can enhance its economic competitiveness and digital sovereignty in an increasingly uncertain world.
The push for digital sovereignty in Europe is gaining momentum, with experts calling for increased support for homegrown tech infrastructure. In a recent letter, signatories have urged the EU to take steps to enable “viable supply” by encouraging European technologists to adopt a “pooling and federating” approach. This strategy, which includes the development of common standards, aims to accelerate the scaling of digital infrastructure and boost the competitiveness of European providers against U.S. hyperscalers.
The letter also highlights the importance of prioritizing projects that address basic infrastructural needs, such as hardware autonomy and sovereign cloud and platforms. It emphasizes the need for the EU to support the development of harmonized requirements for public and private cloud users to opt for “sovereign cloud services” for storing sensitive data, as a security measure against non-EU extraterritorial laws.
Furthermore, the letter calls for the establishment of a “Sovereign Infrastructure Fund” to support public investments in European digital infrastructure, particularly in capital-intensive areas like chips and quantum computing. This fund, according to experts, would not require enormous sums of money but could be strategically targeted towards maintaining open source infrastructure and supporting European startups.
The Euro Stack coalition is critical of current EU efforts towards digital sovereignty, arguing that too much funding is directed towards academia and experimental R&D, rather than tangible commercial efforts that could lead to strategic autonomy in digital infrastructure. The letter urges the EU to rethink its approach and support industry-led initiatives to drive innovation and growth in the European tech sector.
Overall, the call for increased support for homegrown tech infrastructure in Europe is seen as crucial for enhancing digital sovereignty, fostering innovation, and reducing dependence on foreign tech giants. By working together and investing strategically, European countries can build a strong foundation for future growth and competitiveness in the digital landscape. As Europe grapples with an urgent need to bolster its digital infrastructure and assert its technological sovereignty, a coalition of industry leaders is calling on the European Commission to step up and take action. The coalition, comprised of key players in the cloud, telecom, software, and open source sectors, as well as industrial giants like Airbus and Dassault Systemes, is urging the Commission to form working groups with industry to translate its tech sovereignty ambitions into tangible initiatives.
The industry coalition’s proposal, known as the Euro Stack, emphasizes the importance of mobilizing industry stakeholders to coordinate and validate a continent-wide strategy for powering a European digital sovereign effort. This call to action comes at a crucial moment for Europe, as the continent faces mounting challenges to its security and strategic autonomy in the digital sphere.
Among the signatories of the Euro Stack proposal are prominent business associations representing telcos, open source initiatives, digital SMEs, startups, and more. The breadth of support for the initiative underscores the widespread recognition of the need for Europe to assert its technological independence and reduce its reliance on foreign suppliers, particularly those from the U.S.
One of the key voices backing the Euro Stack proposal is Johan Christenson, founder of European cloud provider Cleura (now part of Iver). Christenson believes that Europe must embark on a transformative project akin to Airbus in order to compete in the digital realm. He advocates for setting requirements that promote the use of open source technologies and interoperability standards, as well as implementing public procurement rules that prioritize European solutions.
Another signatory, Any Yen, founder of privacy tools maker Proton, echoes the call for a shift in mindset towards a “Europe First” approach. Yen argues that Europe’s tech sector has lagged behind not due to a lack of talent or creativity, but because of a historical preference for procuring technology from the U.S. and China. He emphasizes the need for European governments and companies to prioritize domestic tech solutions through policies that mandate the purchase of European products.
While the Digital Markets Act (DMA) aims to address competition issues in the tech sector, Yen believes that more radical action is needed to bolster Europe’s digital sovereignty. Despite the implementation of the DMA, he points out that Big Tech’s market dominance in Europe remains unchanged, underscoring the urgency of initiatives like the Euro Stack to drive meaningful change.
In the face of growing protectionism and global competition, the Euro Stack proposal represents a rallying cry for Europe to assert its technological independence and secure its digital future. By leveraging the convening power of the European Commission and mobilizing industry stakeholders, Europe has an opportunity to chart a new course towards digital sovereignty and leadership on the world stage. The European Union is facing a critical moment in its digital future, with experts and industry leaders calling for a new approach to ensure economic growth and digital sovereignty. The current regulatory framework, including the Digital Markets Act (DMA), is being criticized for not effectively addressing the challenges faced by European tech companies in a global market dominated by U.S. giants.
According to critics like Yen, the fines imposed by the DMA may impact American GDP but will not necessarily lead to growth in European GDP. The Commission is accused of prioritizing outdated models instead of embracing the future of tech innovation. European entrepreneurs have long been advocating for a shift in strategy, urging decision-makers to listen and adapt to the changing landscape.
Frank Karlitschek, CEO of Nextcloud, highlights the risks of maintaining the status quo, including data security threats and potential economic coercion from the U.S. government. He emphasizes the importance of promoting open source technology and creating a level playing field for European companies to compete with their American counterparts. Karlitschek suggests that changing procurement rules to favor open source solutions could spur innovation and create new opportunities for European startups.
In addition to supporting open source initiatives, Karlitschek calls for the enforcement of existing digital regulations against Big Tech companies. He argues that compliance with privacy and antitrust rules is essential to ensure fair competition and protect consumer rights. However, some experts, like Caffarra, believe that simply enforcing existing rules is not enough to achieve digital autonomy.
Caffarra points out that the DMA primarily targets consumer-facing products and services, while ignoring the critical infrastructure that underpins the digital economy. She warns that European control over tech infrastructure is waning, necessitating a more radical approach to ensure the region’s survival in a rapidly evolving digital landscape.
In conclusion, European policymakers are urged to take bold steps to safeguard the region’s digital future. Embracing open source technology, enforcing existing regulations, and rethinking procurement strategies are essential to promote innovation, competition, and digital sovereignty. It is time for the EU to break free from its regulatory comfort zone and embrace a new mindset that prioritizes the long-term success of European tech companies.
