EU tech firms demand EuroStack to cut reliance on U.S. & China

A broad coalition from the European tech industry is pressing for “radical action” to reduce reliance on foreign digital infrastructure, urging EU lawmakers to support local innovation for economic resilience and security. In an open letter to European Commission President Ursula von der Leyen and the EU’s digital chief Henna Virkkunen, over 80 organizations advocated for policies that prioritize homegrown alternatives across various tech sectors.

Europe wants its own tech stack: Industry leaders push for digital independence

This initiative, described as a EuroStack, calls for reducing dependence on foreign-owned tech giants to bolster the EU’s digital sovereignty. The coalition includes notable companies like Airbus, OVHCloud, and Proton, who assert that a strategic shift is necessary amid rising geopolitical tensions. The letter references the “Draghi report” on EU competitiveness as evidence of the urgency for change, warning that without swift action, Europe risks losing its technological autonomy.

The coalition emphasizes a “Buy European” mandate for public procurement, suggesting that public bodies should fulfill their digital needs with local providers. This approach aims to create a competitive environment for European suppliers and enhance investment prospects in homegrown technologies. “Industry will invest if there are adequate demand prospects,” the letter states, highlighting the necessity for a strategic commitment to local innovation.

Additionally, the letter proposes incentivizing private sector adoption of European solutions through subsidies and support mechanisms. Advocates also recommend a “pooling and federating” strategy to standardize and scale European digital infrastructure while supporting open-source initiatives and interoperability across platforms.

Past initiatives, like the Gaia-X project, intended to develop a European cloud infrastructure, faced challenges after foreign firms became involved. The coalition argues that welcoming foreign hyperscalers threatens to undermine European control over critical digital services, leading to a dangerous dependency.

Image: EuroStack

The letter articulates the importance of creating “sovereign cloud services” to protect sensitive data from extraterritorial risks. There is also a call for the EU to reassess its Digital Decade strategy, ensuring that funding focuses on practical, market-relevant projects that support Europe’s tech capabilities.

To address funding needs, the coalition advocates for a “Sovereign Infrastructure Fund” designed to support critical areas like chips and quantum computing. This fund would strategically target smaller investments to maintain and enhance open-source infrastructure across Europe.

In their critique of the current EU approach, the coalition views existing efforts as misaligned, arguing that too much funding supports academic research rather than tangible commercial applications. They propose an industry-led effort to mobilize resources effectively and challenge EU policymakers to act decisively in light of the current landscape.

The letter has garnered broad support from tech firms and regional business associations. Caffarra noted that it represents a significant cross-section of Europe’s tech ecosystem, including cloud, telecommunications, and software companies. Some potential signatories refrained from joining due to fears of backlash from larger U.S. tech firms.

Supporters of the Euro stack initiative stress the need for a paradigm shift toward a “Europe First” mentality in tech procurement, drawing parallels with the approaches taken by the U.S. and China. Yen, from Proton, pointed out that European tech has not lagged due to a lack of skill but rather due to inadequate demand for its offerings. “Fixing this demand problem is most easily done by requiring that European public sector buy European,” he stated.

The call to action aims to create a more vibrant and autonomous European tech landscape, reinforcing the notion of digital sovereignty as a critical aspect of national security and economic strategy.

Below are some important notes from the shared document:

• EU’s digital lag: Europe’s failure to leverage the “digital revolution” has led to economic stagnation, with major reliance on US tech companies for digital services, data, and infrastructure.
• AI and data-centers: US hyperscalers are rapidly expanding data-center presence in Europe, raising concerns about sovereignty, security risks, and strategic dependencies, as European governments rush to adopt AI services.
• Security and economic growth: Europe’s dependency on US tech giants exposes vulnerabilities, limiting innovation and economic growth, and undermining Europe’s democratic values of privacy and transparency.
• Regulation limitations: Efforts to regulate US tech platforms have been insufficient, as market forces and acquisitions continue to suppress European alternatives, worsening the dependency on foreign tech.
• Urgent action required: Europe must urgently develop a cohesive digital infrastructure (EuroStack) to secure sovereignty, resilience, and promote innovation, moving beyond regulatory approaches.
• Strategic goals: EuroStack aims to create a self-sufficient European digital ecosystem, integrating hardware, software, and services from European companies, supported by public funding and strategic investments.
• Public-private cooperation: Involvement of both public and private sectors is critical, with a focus on developing cloud services, AI engines, and new operating systems that align with European values and standards.
• Economic and security imperative: Digital sovereignty is seen as a key part of Europe’s industrial policy, contributing to resilience in a volatile geopolitical environment.
• Federation of existing assets: Instead of starting from scratch, Europe should leverage existing infrastructure and assets, fostering collaboration and interoperability among European tech companies.
• Investment strategy: Europe must streamline investment in digital infrastructure, ensuring that public funds prioritize tangible, market-driven outcomes and support long-term industry growth.
• Talent and skills: A European digital competence certification scheme should be established to train a new generation of tech professionals, ensuring the availability of local talent and reducing dependence on non-European certifications.
• Coordination across member states: Successful implementation of EuroStack requires coordination between the European Commission and Member States, pooling efforts for large-scale infrastructure projects and leveraging existing frameworks.
• Funding and support: Europe must build financial support mechanisms, including sovereign funds and VC backing, to fund critical digital infrastructure and reduce reliance on non-European tech giants.

Featured image credit: Kerem Gülen/Ideogram