Op-ed: Why the EU's digital sovereignty hangs in the balance

The EU’s reliance on foreign tech threatens its future in the digital realm. Bold action and unified investment are needed to reclaim independence.
Henna Virkkunen, the nominee for the post of European Commissioner for Tech-Sovereignty, Security and Democracy, met with Commission President Ursula Von der Leyen in Brussels in September.

By Axel Thévenet

Axel Thévenet is a policy analyst at Brussels-based think tank OpenForum Europe

03 Oct 2024

In an era where digital prowess equals global influence, the EU finds itself at a critical juncture. The nomination of Henna Virkkunen as the European Commission's Executive Vice-President for Tech Sovereignty, Security and Democracy signals a recognition of the urgent need to bolster Europe's technological independence. However, this laudable step merely scratches the surface of a profound challenge that demands far more ambitious action.  

The stark reality is that the EU's digital landscape is shaped largely by entities outside its borders, primarily from the US and China. Tech giants dominate crucial sectors such as cloud computing, artificial intelligence and data infrastructure. Their outsized influence not only undermines the EU's competitive edge, but also jeopardises its ability to safeguard data privacy and maintain sovereignty over its most fundamental digital services. 

The EU's digital dependency is not a mere inconvenience; it is a strategic vulnerability. From digital health systems to government cloud storage and public administration platforms, the bloc's reliance on foreign technology providers is pervasive and can be found in most steps of the supply chain. This dependence severely hampers the EU's capacity to set its own standards and chart an independent course in the digital realm. 

Declaration of digital independence 

While the EU has made commendable efforts through initiatives like the Digital Single Market strategy and programmes such as Digital Europe and Horizon Europe, these measures still fall short. The time has come for a more ambitious, co-ordinated approach to funding and developing the bloc's own digital infrastructure. 

The failure to establish a comprehensive sovereignty fund underscores the urgency of the situation. Without a robust, EU-wide funding strategy, technological sovereignty risks remaining an unfulfilled promise. 

While the EU lacks a clear definition of what technological sovereignty looks like, there are efforts to get there. The European Cybersecurity Competence Centre and Network offers a glimpse of what can be achieved through co-ordinated efforts, but such initiatives must be dramatically scaled up and replicated across critical digital domains. This includes areas such as cloud services, interoperability standards, hardware production like semiconductors, and even fundamental internet infrastructure such as the Border Gateway Protocol. 

The Important Projects of Common European Interest (IPCEI) and European Digital Infrastructure Consortium (EDIC) have emerged as potential tools for member states to collaborate on a voluntary basis. However, the lack of harmonised governance at the EU level severely hinders their potential. These projects succumb to competing national interests and the lack of an overarching European strategy. The IPCEI and EDIC frameworks must be strengthened and streamlined to truly serve as a catalyst for EU digital sovereignty. 

Focusing on digital sovereignty 

Regulation, while necessary, is not sufficient. The EU has led the way with groundbreaking legislation like General Data Protection Regulation, the Digital Markets Act and the Digital Services Act. However, these legal frameworks must be complemented by substantial investments in home-grown technologies and open standards. The global influence of EU regulations demonstrates Brussels’ potential to shape the future of technology. Yet without the capacity to develop and deploy its own solutions, the EU risks becoming a rule-maker without the means to compete effectively in the digital arena it seeks to govern. 

The path forward is challenging but clear. The EU must establish an ambitious funding model that transcends national boundaries and industrial interests. This model should prioritise investment in open technologies and standards, reducing dependency on proprietary systems that lock the bloc into foreign ecosystems. Simultaneously, the EU must assert its leadership in international standardisation efforts, ensuring its voice is heard, and its interests are protected on the global stage. 

The stakes could not be higher. Without decisive action and substantial investment, the EU risks ceding control of its digital destiny to external powers. Its leaders must recognise that technological sovereignty is not a luxury but a necessity in the 21st century.  

Only through bold and co-ordinated action can the EU hope to bridge the sovereignty gap and emerge as a true digital power. 

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