Until US President Donald Trump’s return a year ago, when the EU talked about cutting economic dependency on foreign powers — it was understood to mean China, but now Brussels has US tech in its sights.
As Trump ramps up his threats — from strong-arming Europe on trade to pushing to seize Greenland — concern has grown that the unpredictable leader could, should he so wish, plunge the bloc into digital darkness.
Since Trump’s Greenland climbdown, top officials have stepped up warnings that the EU is dangerously exposed to geopolitical shocks and must work toward strategic independence — in defense, energy and tech alike.
Photo: EPA
The 27-country bloc relies on foreign countries for more than 80 percent of digital products, services, infrastructure and intellectual property, according to a 2023 EU report.
Europe has already begun chipping away at its reliance on US tech.
The latest step came last week when France told state employees they would soon be required to use a domestic alternative to tools like Zoom or Microsoft Teams.
Brussels’ wake-up call came last year when Washington sanctioned judges at the International Criminal Court, cutting them off from US tech such as Amazon.com Inc or Google LLC.
The move laid bare the US stranglehold over many tools that underpin European lives.
“During the last year everybody has really realized how important it is that we are not dependent on one country or one company when it comes to some very critical technologies,” European Commissioner for Digital and Frontier Technologies Henna Virkkunen said.
“Dependencies ... can be weaponized against us,” she added.
Virkkunen is in March to unveil a major “tech sovereignty” package covering cloud, artificial intelligence and chips — areas where the EU hopes to build greater autonomy.
“Digital technologies are no longer neutral tools,” European Digital SME Alliance’s secretary general, Sebastiano Toffaletti, told reporters. “When core infrastructures like cloud, AI [artificial intelligence] or platforms are controlled from outside Europe, so are the rules, the data and ultimately the leverage.”
Among EU member states, France and Germany have been leading the charge.
The northern German state of Schleswig-Holstein became a poster child for digital sovereignty last year by ditching Microsoft Corp’s software in favor of open-source alternatives.
Schleswig-Holstein Minister of Digitalization Dirk Schroedter said the move was economically-driven at first, before “political tensions” shifted the focus.
“Dominance of a few tech corporations in public infrastructure limits ... our flexibility, threatens our security and inflates our software costs,” Schroedter said.
Over six months, the state migrated more than 40,000 mailboxes from Microsoft Exchange and Outlook to open-source solutions Open-Xchange and Thunderbird.
There were challenging areas during the transition — for example in document-sharing with other federal states and the national government — but Schroedter said the state showed “digital independence is possible.”
Meanwhile, the European Parliament is reviewing its reliance on Microsoft among other tools after a cross-party group of lawmakers urged it to adopt European alternatives.
Moves are also under way at the EU level.
French firm Mistral AI SAS and German giant SAP SE agreed to work on a European AI-driven cloud solution at a Franco-German digital sovereignty summit in November last year.
France, Germany, Italy and the Netherlands teamed up last year in a push to create common European digital infrastructure, steered by the European Commission.
Much of EU policymaking is now being viewed through the prism of sovereignty.
The bloc has long been working on a digital euro, which dozens of economists — including Thomas Piketty — called an “essential safeguard of European sovereignty” in an open letter last month.
That follows the 2024 launch of Wero, a European payments alternative to Mastercard, Visa and PayPal backed by several major banks.
Zach Meyers of CERRE, a Brussels-based think tank, warns the EU must be clear about what “tech sovereignty” is meant to achieve.
If the goal is to withstand political pressure, the EU might be better off focusing on gaining “more leverage against” the US, Meyers said.
To that end, he said the most effective strategy is not to cut back on US tech in Europe, but “rather to double down on parts of the tech value chain where the US is dependent on Europe” — from chip-building machinery to corporate software or telecoms equipment.
NEW IDENTITY: Known for its software, India has expanded into hardware, with its semiconductor industry growing from US$38bn in 2023 to US$45bn to US$50bn India on Saturday inaugurated its first semiconductor assembly and test facility, a milestone in the government’s push to reduce dependence on foreign chipmakers and stake a claim in a sector dominated by China. Indian Prime Minister Narendra Modi opened US firm Micron Technology Inc’s semiconductor assembly, test and packaging unit in his home state of Gujarat, hailing the “dawn of a new era” for India’s technology ambitions. “When young Indians look back in the future, they will see this decade as the turning point in our tech future,” Modi told the event, which was broadcast on his YouTube channel. The plant would convert
‘SEISMIC SHIFT’: The researcher forecast there would be about 1.1 billion mobile shipments this year, down from 1.26 billion the prior year and erasing years of gains The global smartphone market is expected to contract 12.9 percent this year due to the unprecedented memorychip shortage, marking “a crisis like no other,” researcher International Data Corp (IDC) said. The new forecast, a dramatic revision down from earlier estimates, gives the latest accounting of the ongoing memory crunch that is affecting every corner of the electronics industry. The demand for advanced memory to power artificial intelligence (AI) tasks has drained global supply until well into next year and jeopardizes the business model of many smartphone makers. IDC forecast about 1.1 billion mobile shipments this year, down from 1.26 billion the prior
People stand in a Pokemon store in Tokyo on Thursday. One of the world highest-grossing franchises is celebrated its 30th anniversary yesterday.
Zimbabwe’s ban on raw lithium exports is forcing Chinese miners to rethink their strategy, speeding up plans to process the metal locally instead of shipping it to China’s vast rechargeable battery industry. The country is Africa’s largest lithium producer and has one of the world’s largest reserves, according to the US Geological Survey (USGS). Zimbabwe already banned the export of lithium ore in 2022 and last year announced it would halt exports of lithium concentrates from January next year. However, on Wednesday it imposed the ban with immediate effect, leaving unclear what the lithium mining sector would do in the