Insight
Should the EU’s tech sovereignty package make Europe richer or safer? by Zach Meyers, 7 July 2026 The European Commission’s Tech Sovereignty Package focuses on mitigating risk, rather than actively promoting European technological strengths. The US government has just prohibited the American AI firm Anthropic from allowing foreigners access to its cutting-edge Fable and Mythos models, fearing they would be used for cybersecurity attacks. The episode is only the latest reminder that Europe is heavily dependent on foreign digital technologies – from AI and cloud computing to online platforms. Access can be constrained by political decisions taken elsewhere, leaving EU countries vulnerable to foreign pressure. The US has previously imposed sanctions on officials of the International Criminal Court, for example – cutting off judges’ access to electronic payments and services, severely impacting their everyday life. Under pressure from Washington, US payment systems suspended services for WikiLeaks in 2010, blocking Europeans from making donations – illustrating that the EU’s dependencies go far beyond AI. But reducing dependencies is only half the challenge. At the same time, Europe faces a ‘competitiveness crisis’: its low economic growth is consistently outpaced by the US. Economists often agree this is largely driven by European businesses being too slow to adopt new technologies, and Europe’s struggle to generate globally successful, high-tech firms. This creates dilemmas. How far can the EU press its companies and governments to cut out foreign dependencies, without compromising the bloc’s competitiveness? And what is the right balance between building ‘defensive’ domestic capabilities for security and resilience, and supporting the next generation of innovators? The European Commission recently unveiled its Tech Sovereignty Package: an attempt to grapple with these problems. It promises support for AI and chip-making firms. But its centrepiece is a set of new rules for cloud computing. These rules aim to drive more public sector spending towards IT providers that give CER INSIGHT: SHOULD THE EU’S TECH SOVEREIGNTY PACKAGE MAKE EUROPE RICHER OR SAFER? 7 July 2026
INFO@CER.EU | WWW.CER.EU
1