Is Europe finally ready to build its own Big Tech? The EU’s bold new plan explained

The European Commission has unveiled a sweeping technology package aimed at reducing Europe’s reliance on American digital infrastructure. Mathieu Pollet reports for Politico that the so-called tech sovereignty package is designed not to confront U.S. firms directly, but to build up European alternatives over the long term.

The package is driven partly by concerns that U.S. President Donald Trump has exposed Europe’s vulnerability by weaponizing its dependence on American technology. Commission President Ursula von der Leyen framed the initiative in stark terms: “We cannot afford to depend on others for the technologies that keep our hospitals running, our energy grids stable and our services secure.”

EU countries currently spend €264 billion a year on American tech. Microsoft, Google and Amazon dominate the cloud services market that underpins government services, data storage and everyday communication across the bloc.

What the package includes

• A new Cloud and AI Development Act with a trustworthiness assessment for countries supplying sensitive public sectors
• Public funding directed toward European-made digital products
• Reduced red tape for data centers
• A new “Eurocloud” forum for sharing digital capacities across member states
• A revised chips law to boost European demand for advanced semiconductors
• A requirement for national strategies to drive AI and tech adoption

EU tech chief Henna Virkkunen warned that existing U.S. law poses a specific challenge. She pointed to the U.S. Cloud Act, which can force American companies to hand over data stored on their services, saying it makes it “difficult to reach” the stricter sovereignty requirements envisaged for sensitive sectors.

The Commission estimates that only one percent of Europe’s public services are sensitive enough to require a total exclusion of foreign technology. For all other services, governments must conduct a sovereignty risk assessment and procure digital tools accordingly. The Commission retains the right to override national assessments it considers too lenient.

The proposals now move to national governments and the European Parliament for negotiations. Some member states have already cautioned that a full break from U.S. technology is neither realistic nor desirable.