A diverse coalition of Europe’s tech industry leaders is urging the European Union to take “radical action” to reduce its dependence on foreign-owned digital infrastructure and services, in order to boost the bloc’s economic prospects, resilience, and security in an increasingly uncertain geopolitical landscape.

In an open letter to European Commission President Ursula von der Leyen and the EU’s digital chief, Henna Virkkunen, over 80 signatories, representing around 100 organizations, are calling for a fundamental shift in the EU’s approach to supporting the development of homegrown digital technologies, including apps, platforms, AI models, chips, computing, storage, and connectivity.

Companies from various sectors, including cloud, telecoms, defense, and regional business and startup associations, have signed the letter, which was sent to the Commission on Sunday, urging the bloc to adopt a new tech strategy that prioritizes the development of “sovereign digital infrastructure” and reduces reliance on foreign-owned Big Tech.

The plan, dubbed “Euro Stack,” aims to promote the development of a European alternative to foreign-owned digital infrastructure, by fostering the growth of homegrown technologies and reducing dependence on non-EU suppliers. A recent paper, written by competition economist Cristina Caffarra, among others, provides a detailed outline of the strategy.

The industry coalition is responding to the shock of the Munich security conference, where US Vice President JD Vance criticized Europe’s lack of digital autonomy, and the need for the EU to adopt a digital industrial strategy that favors local innovation. The letter follows the 2024 Draghi report on EU competitiveness, which highlighted the need for the EU to take action to boost its digital economy.

The coalition is warning that without urgent action, the EU risks losing out on digital innovation and productivity growth, and that its reliance on non-European technologies will become almost complete in less than three years at current rates. The letter’s signatories are urging the EU to take a more proactive approach to supporting the development of homegrown digital technologies, including by providing funding and other forms of support.

Buy European

The letter suggests that the EU could help stimulate demand for European-made technologies by adopting public procurement requirements that favor local providers, such as a “Buy European” mandate. This would require public bodies to purchase a certain percentage of their digital requirements from European suppliers.

Caffarra argues that this approach is a “no-brainer” and that it would help create a level playing field for European companies to compete with non-EU suppliers. She also suggests that the EU could provide inducements, such as vouchers or other forms of support, to encourage private sector buyers to switch to homegrown providers.

Pooling and Federating

The letter also recommends that the EU take steps to enable “viable supply” by encouraging European technologists to adopt a “pooling and federating” approach, including the development of common standards. This would help accelerate the scaling of homegrown digital infrastructure and enable European providers to compete with non-EU hyperscalers.

The EU could support the development of open source solutions and interoperability, aggregate “best of breed” existing assets, and provide support for onboarding and integration platforms. The letter also suggests that the EU should prioritize projects that address basic infrastructural needs, such as hardware autonomy and sovereign cloud and platforms.

Sovereign Infrastructure Fund

The letter calls for the EU to set up a “Sovereign Infrastructure Fund” to support public investments in European digital infrastructure, particularly in capital-intensive areas such as chips and quantum computing. Caffarra argues that such a fund would not require huge amounts of money and could be strategically targeted to support open source infrastructure.

Rethinking Who Leads

The Euro Stack coalition is essentially dismissing current EU efforts on digital sovereignty as poorly directed and wasted. The letter argues that too much funding is flowing towards academia and experimental R&D, rather than tangible commercial efforts that could achieve strategic autonomy in digital infrastructure.

The coalition is pushing the EU to accept an industry-led effort to drive digital sovereignty, rather than relying on top-down policymaking. Caffarra argues that the EU needs to get out of its regulatory comfort zone and take a more radical approach to supporting the development of homegrown digital technologies.

Industry Voices

The letter has been signed by a range of industry leaders, including CEOs and founders of European tech companies, as well as regional business associations. They are urging the EU to take action to support the development of homegrown digital technologies and reduce dependence on foreign-owned Big Tech.

Johan Christenson, founder of European cloud provider Cleura, argues that Europe needs a new approach to digital sovereignty, similar to the Airbus project, to stand a chance. He suggests that the EU should set requirements for public procurement, such as the use of open source or interoperable solutions, to stimulate demand for European-made technologies.

Any Yen, founder of Switzerland-based privacy tools maker Proton, argues that Europe needs to think differently and prioritize its own digital sovereignty. He suggests that the EU should require public sector bodies to buy European and create a level playing field for European companies to compete with non-EU suppliers.

Europe First?

The Euro Stack coalition is arguing that the EU needs to prioritize its own digital sovereignty and take a more proactive approach to supporting the development of homegrown digital technologies. This would require a fundamental shift in the EU’s approach to digital policy and a willingness to take radical action to reduce dependence on foreign-owned Big Tech.

Frank Karlitschek, CEO and founder of German cloud services player Nextcloud, argues that the EU needs to change its procurement rules to require critical infrastructure to be 50-80% open source. He suggests that this would create an explosion of new startups and innovation, as European tech firms are better positioned to capitalize on open source technologies.

The Euro Stack coalition is warning that the EU is at a critical juncture and needs to take action to support the development of homegrown digital technologies. The letter’s signatories are urging the EU to adopt a more proactive approach to digital sovereignty and reduce dependence on foreign-owned Big Tech.