The EU is moving to counter American dominance in technology by leveraging one of the oldest tools in its arsenal: industrial strategy. As the European Commission presented on Wednesday a plan to reduce Europe’s dependence on foreign technology providers that underpin the modern economy, was careful to stress that it was not starting a battle with American digital giants. Instead, the tech dominance package – largely motivated by US President Donald Trump’s weaponisation of Europe’s dependence on American companies – takes a long-term view: to strengthen the continent’s companies so that they can eventually challenge their American competitors.
If approved, the package would direct public money to products that contribute to Europe’s economy and independence from foreign companies; cut red tape for data centers; boost research and innovation through “leadership initiatives,” incentivize countries to share digital capabilities in a new “Eurocloud” forum, and require EU governments to draw up national strategies to boost the adoption of cutting-edge technology, including Artificial Intelligence.
As part of its proposal to maintain a list of trusted countries, the Commission will require EU governments to conduct a so-called “sovereignty risk assessment” for each digital service they rely on, measuring foreign control, potential access to sensitive data and the risk of operational disruption.
Within a year, they would have to determine the appropriate level of protection for each public sector and procure digital services accordingly – unless they can demonstrate that doing so would entail “disproportionate costs”, the proposal says.
However, the Commission reserves the right to overturn their assessment in future legislation if it believes they have downplayed the risks.
The Commission has estimated that only one percent of Europe's public services are so sensitive that they would be required, under the proposed certification system, to rely on the strict level that completely excludes foreign technology. "We cannot afford to depend on others for the technologies that keep our hospitals running, our energy networks stable and our services safe," said Commission President Ursula von der Leyen. "This is about protecting our citizens, defending our interests and making our own decisions."
Although the press releases will range from very select to rare, I said I'd pass...because sometimes the editors hide.
