Europe faces digital dependency crisis and must act now

Europe is facing a digital crisis, particularly in the context of geopolitical conflicts such as the U.S.-China chip war and Ukraine's reliance on foreign technology. The continent's digital sovereignty is highly precarious as every layer of its digital ecosystem relies on external sources for critical components—ranging from raw materials to AI technology. Reports indicate that European initiatives like the Chips Act and various cloud projects are insufficient to address the systemic issues that prevent Europe from establishing a strong technological foothold in the global market. To forge a path towards true digital autonomy, Europe must leverage its existing strengths in sectors such as automotive technologies and healthcare systems. Currently, three major American companies—Amazon, Microsoft, and Google—dominate over 70% of the global cloud market, underscoring Europe’s vulnerability in digital infrastructure. A sovereign cloud built on Europe’s own resources could change the trajectory by ensuring that client data remains within the continent, supported by stringent privacy and data protection policies. Implementation of a 'Buy European' procurement act could further empower public sectors to favor local technological and digital solutions. Additionally, the establishment of a European Sovereign Tech Agency could stimulate innovation while enabling strategic investments in artificial intelligence and digital infrastructure. Without decisive action, Europe runs the risk of becoming merely a spectator in the ongoing contest for digital dominance in the 21st century. In conclusion, Europe must prioritize the enactment of a cohesive digital industrial policy to address its current dependencies on other nations. By implementing these strategies, the continent can secure its future and reduce its reliance on external digital resources, thus paving the way for a more self-reliant and innovative technological ecosystem.