EU Shifts Focus to US Tech Dependence Amid Trump Concerns, Pushing for Digital Sovereignty

Kathmandu. Before US President Donald Trump's return to power, when the European Union (EU) spoke of reducing economic dependence on foreign powers, the primary focus was China. However, with Trump's potential return, Brussels' attention is now centering on American technology.

As Trump's rhetoric intensifies, ranging from trade pressure to threats over the acquisition of Greenland, concerns are growing that he could digitally paralyze Europe if he chooses. Following Trump's retreat on the Greenland issue, senior EU officials have warned that the bloc is highly vulnerable to geopolitical shocks, emphasizing the need for strategic self-reliance in defense, energy, and technology.

According to a 2023 EU report, the 27-nation bloc depends on foreign countries for over 80% of its digital products, services, infrastructure, and intellectual property. In an effort to reduce this dependency, Europe appears to be gradually lessening its reliance on American technology.

The latest example of this was seen last week when France announced preparations to direct government employees to use domestic alternatives instead of tools like Zoom or Microsoft Teams soon. The real warning for Brussels came last year.

Washington imposed sanctions on judges of the International Criminal Court, resulting in them being cut off from American technology such as Amazon and Google. This incident clearly demonstrated the strong control the US has over many tools underpinning the European way of life.

EU Technology Commissioner Henna Virkkuen stated that over the past year, everyone has seriously recognized the necessity of not depending on a single country or company for critically important technology. She also warned that such dependencies could be weaponized.

Virkkuen is preparing to unveil a major package concerning 'Tech Sovereignty' next March, covering cloud, artificial intelligence (AI), and chips. These are the areas where the EU wishes to build greater autonomy. Sebastiano Toffaletti, Secretary-General of the European Digital SME Alliance, noted that digital technology is no longer just a neutral tool. According to him, when foundational infrastructure like cloud, AI, or platforms is controlled from outside Europe, the rules, data, and ultimately the pressure fall into external hands.

Among the member states, France and Germany are leading this drive. Germany's northern state of Schleswig-Holstein set an example of digital sovereignty last year by abandoning Microsoft and adopting open-source software. Dirk Schroedter, the state's Minister for Digitalization, said that while the move was initially driven by economic reasons, political tensions have further amplified its importance.

Within six months, the state migrated over 40,000 mailboxes from Microsoft Exchange and Outlook to Open-Exchange and Thunderbird. He stated that despite some challenges, this sent a message that digital freedom is possible. Similarly, the European Parliament is also reviewing its reliance on tools like Microsoft.

Initiatives are also advancing at the EU level. French company Mistral and Germany's SAP have agreed to collaborate on a European AI-based cloud solution. France, Germany, Italy, and the Netherlands have launched a joint effort under the Commission's leadership to build a common European digital infrastructure.

Today, many EU policies are being viewed through the lens of sovereignty. Work on the Digital Euro is progressing, which dozens of economists, including Thomas Piketty, have called a necessary safeguard for European sovereignty. Earlier, in 2024, a European payment system named 'Vero' was launched as an alternative to Mastercard, Visa, and PayPal.

However, Jacques Myard of the Brussels-based think tank CERRE warned that the goal of technology sovereignty must be clear. He argued that if the objective is to withstand political pressure, it would be more appropriate to focus on developing greater 'leverage capacity' against the US.

According to him, rather than reducing the use of American technology, a more effective strategy might be to strengthen Europe's dependence on the US in areas like chip manufacturing machinery, corporate software, and telecommunications equipment.