Report from CNBC
In Brief – Nearly 100 European companies and lobbying groups, many representing smaller EU-based tech firms, have signed an open letter to European Commission President Ursula von der Leyen and digital chief Henna Virkkunen calling for “radical action” for Europe to “become more technologically independent across all layers of its critical digital infrastructure.” The group says that dramatic changes in US policies in the first months of the second Trump Administration highlight how Europe needs to rapidly reduce its reliance on foreign technology companies, especially from the United States and China, to ensure strategic autonomy, long-term security, and economic resilience. Citing the Eurostack Initiative, they call for policies to strengthen EU-based capabilities across all levels of the digital ecosystem, including chips, computing, connectivity, applications, and artificial intelligence. In line with last fall’s Draghi report on European Competitiveness, the letter advocates for an investment-driven approach rather than more regulations. Specific suggestions include a sovereign wealth fund for public investments in “capital-intensive” priorities such as quantum computing and chips, adding a “Buy European” requirement to public sector tech services procurement to grow demand for EU-based tech suppliers, and new policies to incentivize private sector businesses in the EU to buy more EU-tech services as well.
Context – The massive disruptions in US-EU relations in the opening months of the second Trump presidency obviously go well beyond tech regulation. But accusations that European regulation of Big Tech “gatekeepers” is de facto discrimination against American businesses, that fines are discriminatory taxes, and that content moderation regulation is anti-conservative speech control, are adding to tensions and some would argue that the largest US tech companies are aligning with the US Government. And EU-based companies, whether industrial giants like Airbus or small tech firms like Proton email, appear ready to push for EU spending preferences and industrial policies intended to erode the current dominance of US-based digital giants.