The fear of direct influence from foreign powers that want to harm Europe is fundamental – for example from so-called “kill switches.” This English term refers to externally controlled mechanisms that can interrupt the operation of electrical networks, administrations and various digital functions.
The EU wants to free itself from these risks, especially those coming from the US and China. To this end, the Commission has presented a legal package on digital sovereignty. These plans are not fantasy, said European Commission Vice-President Henna Virkkunen, but require a decision “that we must take together.”
INDEPENDENCE IN CHIP PRODUCTION
Europe aims to be less dependent on chip manufacturing outside the continent and increase their production within Europe. Semiconductor production should be further boosted – companies will be attracted by cheaper energy and less bureaucracy. The existing EU law on semiconductors will be expanded with emergency measures. Critical areas such as the arms industry and medical technology will have priority in supply in the event of shortages. The European Commission also aims to significantly accelerate the development of European cloud infrastructures.
The goal is the same: less strategic dependence on China and especially the US, as currently Europe mainly uses American providers.
In addition, the EU is planning an open source strategy: administrations and companies should not rely solely on traditional American providers, but gradually move away from them. European data centers should train the most modern artificial intelligence models in Europe, and not in Asia or America. Europe wants to respond to Taiwan’s dominance in the production of advanced chips. A new EU support package aims to help in this direction.
GEOPOLITICAL RIVALRIES AS A REASON
EU Commissioner Dan Jørgensen cited geopolitical rivalry as the main reason for digital reforms. The global technology market is moving away from free trade towards more fierce economic nationalism. In this situation, Europe can take the lead and act responsibly.
The 27 member states support at least one part of the package – the chip initiative. It responds to industry demands to increase production in Europe in order to avoid dependence on exports and blackmail in the event of shortages.
The president of the Bitkom industry association, Ralf Wintergerst, praised the package: “We welcome that the European Commission is not just focusing on individual technologies, but on the entire digital value chain.” However, it is now crucial not to just stay on the sidelines, because Europe needs swift action.
FINANCING AS A CHALLENGE
A major obstacle could be financing. Draghi’s 2024 report on Europe’s competitiveness estimates that an additional €800 billion is needed each year to keep pace with the US and China.
The new package aims to mobilise private risk capital and foresees a new EU competitiveness fund in the next budget. Negotiations could last until 2027, while adoption could happen by the end of next year.
IS THERE ANY CHANCE OF THE PLAN?
American suppliers are “dominant and will remain so,” said SPD MEP Matthias Ecke. However, the EU should not bow to pressure from the US: “We set the rules for our citizens.” On the other hand, Markus Ferber (CSU) doubts whether Europe can win the global race for the most modern semiconductor factories: “The attempt to compete with Taiwan, the US or South Korea on their own turf has been illusory and costly from the start.” According to him, the new chip law should realistically analyze the value chain and invest in segments where Europe has clear competitive advantages.
HOW FAR SHOULD SOVEREIGNTY GO?
Bertram Brossardt from the Bavarian Economic Association stresses that technological sovereignty should not be limited to the digital sector, but should also include other key technologies such as biotechnology and energy. SPD MEP Bernd Lange warns against excessive expectations: “Technological sovereignty does not mean ‘Europe first.’” He underlines that Europe must develop its own capabilities in critical areas, but remain open to trade, investment and international cooperation. (DW)