Euro techies call for sovereign fund to escape Uncle Sam's digital death grip
- Reference: 1742221993
- News link: https://www.theregister.co.uk/2025/03/17/european_tech_sovereign_fund/
- Source link:
In an open letter to EC President Ursula von der Leyen and Executive Vice-President for Tech Sovereignty Henna Virkkunen, the group of nearly 100 organizations proposed the creation of a sovereign infrastructure fund to invest in key technology and lessen dependence on US corporations.
The [1]letter points to recent events, including the farcical [2]Munich Security Conference , as a sign of "the stark geopolitical reality Europe is now facing," and says that building strategic autonomy in key sectors is now an urgent imperative for European countries.
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Signatories include aerospace giant Airbus, France's Dassault Systèmes, European cloud operator OVHcloud, chip designer SiPearl, open source biz Nextcloud, and a host of others including organizations such as the European Startup Network.
[4]
[5]
OVHcloud said the group was calling "for a collective industrial policy strategy to strengthen Europe's competitiveness and strategic autonomy. We are convinced this is the premise of what we hope will be a larger movement of the entire ecosystem."
Proposals include the sovereign infrastructure fund, which would be able to support public investment, especially in capital-intensive sectors like semiconductors, with "significant additional commitment of funds allocated and/or underwritten" by the European Investment Bank (EIB) and national public funding bodies.
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It also suggests there should be a formal requirement for the public sector to "buy European" and source their IT requirements from European-led and assembled solutions, while recognizing that these may involve complex supply chains with foreign components.
The letter warns that while the region has great talent and capabilities in the digital space, issues such as structural fragmentation, as described in the [7]Draghi report on EU competitiveness, have led to the region falling significantly behind the US and China in many areas.
This has led to multiple tech dependencies that represent security and reliability risks that "compromise our sovereignty," the group says, calling for action to address the problem.
[8]Brits end probe into Microsoft's $13B bankrolling of OpenAI
[9]Under Trump 2.0, Europe's dependence on US clouds back under the spotlight
[10]AWS vacates its board seat at European cloud crew CISPE
[11]EU plans to 'mobilize' €200B to invest in AI to catch up with US and China
"We call on your convening powers to mobilize industry to actively help coordinate and validate a continent-wide strategy to power a European digital sovereign effort," the letter urges.
This isn't the first time that concerns about US hegemony in technology have been raised. Recently, the [12]DARE project launched to develop hardware and software based on the open RISC-V architecture, backed by EuroHPC JU funding, while fears have been aired about the [13]dominance of American-owned cloud companies in the European market.
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Such concerns have been heightened by recent actions, such as the suggestion that the US might [15]cut off access to Starlink internet services in Ukraine as a political bargaining strategy. Starlink owner Elon Musk [16]later denied that this would ever happen.
The letter notes that these issues have already been set out by the [17]EuroStack initiative , made up of many of the companies that signed the letter to EC President von der Leyen. The Register asked the European Commission to comment.
On the other side of the pond, the Computer and Communications Industry Association (CCIA) recently published a [18]report claiming that US companies face "substantial financial burdens" due to the European Union's digital regulations.
It says that US tech companies are losing "billions" through having to comply with regulations such as the Digital Markets Act (DMA), and having to obtain user consent for their data to be used for advertising purposes. ®
Get our [19]Tech Resources
[1] https://euro-stackletter.eu/wp-content/uploads/2025/03/EuroStack_Initiative_Letter_14-March-.pdf
[2] https://www.reuters.com/investigations/3-weeks-that-changed-world-how-trump-turned-against-ukraine-europe-2025-03-10/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z9hVMReb0I4Tip_FruCHCAAAAAA&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z9hVMReb0I4Tip_FruCHCAAAAAA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z9hVMReb0I4Tip_FruCHCAAAAAA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z9hVMReb0I4Tip_FruCHCAAAAAA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en
[8] https://www.theregister.com/2025/03/05/cma_microsoft_openai/
[9] https://www.theregister.com/2025/02/26/europe_has_second_thoughts_about/
[10] https://www.theregister.com/2025/02/14/aws_vacates_board_seat_at_cispe/
[11] https://www.theregister.com/2025/02/12/eu_plans_to_mobilize_200b/
[12] https://www.theregister.com/2025/03/07/dare_europe_risc_v_project/
[13] https://www.theregister.com/2025/02/26/europe_has_second_thoughts_about/
[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z9hVMReb0I4Tip_FruCHCAAAAAA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[15] https://www.reuters.com/business/us-could-cut-ukraines-access-starlink-internet-services-over-minerals-say-2025-02-22/
[16] https://www.businessinsider.com/elon-musk-starlink-will-never-turn-off-terminals-in-ukraine-2025-3
[17] https://euro-stackletter.eu/
[18] https://ccianet.org/research/stats/costs-to-us-companies-from-eu-digital-regulation/
[19] https://whitepapers.theregister.com/
Re: Picking winners
It worked for the US (DARPA), China, and Japan et al..
Not trying to do it lead to the current misery.
Airbus is a very good illustration of the power of industrial politics. It is the only reason Europe still has a viable airplane industry.
Re: Picking winners
It is the only reason Europe still has a viable airplane industry.
Because Boeing never had any subsidies from Uncle Sam.
Also, Airbus have a damn good safety record, even when ditching on the Hudson after a birdstrike.
Airbus
Actually Airbus is leading in almost any aspect of big airliners, except maybe finance engineering.
Re: Picking winners
The German Sovereign Tech fund is successful and brings improvements to open source projects we all use, what's wrong with doing that on an EU-wide scale?
Mmm-hmmm.
more regulation will solve the issue. Thats worked out real well in the past.
No: Subsidies
Just like that sweet CIA+Army money, which built the Silicon Valley, Google etc.
Or subsidies that built AIRBUS.
Tough.
US companies face "substantial financial burdens" due to the European Union's digital regulations.
If you want to play on the EU's turf then you play by the EU's rules.
Unhappy with that? Then don't do business in the EU.
What's that you say? The EU is a big source of revenue to US companies?
Then pay the extra it takes to trade in the EU.
It's called the cost of doing business.
Bunch of entitled wankers.
Re: Tough.
" - and having to obtain user consent for their data to be used for advertising purposes."
To right!
If you want to offer access to your site and finance it with advertising then go ahead and I will decide if I want to use it. I pay to use the ad free spotify service rather than use the ad supported version.
If you want suck up data about me at the very least you should be polite and ask me if I mind giving up this information in order for you to make your product (targeted advertising) more valuable.
Too little, and way too late
If there were a viable economical and commercially attractive alternative to these US services, it would have been available by now, wouldn't it?
The point is that the investment required to achieve the level of flexibility and functionality provided by US companies is way too high to ever become profitable.
Calling for the government to support funding is too easy in this regard. If dependency of US-controlled companies is regarded a risk, you have to act as company.
So if being independent from the US is now important, let them start a cloud/service business themselves as an alternative to the US controlled companies. Do neither count nor wait on the governments for action.
Re: Too little, and way too late
It is time to break away from the oppressive hegemony. USA are the modern imperialists and the Tromp government wants to have its cake and eat it.
Re: it would have been available by now, wouldn't it?
Up until now, yes, but now the "nobody got fired for buying x" strategy has an extra slant to it, this will hopefully change.
Go
Hetzner
1und1
T-Systems
OVHCloud
and probably 25 others.
Lessons from China
China clearly did right on technology transfer and propping national business. Copy them?
IT AIRBUS
Here is a paper by myself:
https://di-fg.de/IT_Airbus.html
And yes, it does not comply with the "free market" propaganda. Neither do the subsidies, which built the world class players Google, Facebook, Airbus, Volkswagen.
Rolls-Royce
...would also be long dead without financial support by UKGOV.
The financial risks associated with a multi-billion pound/€/$ R+D engine project can in the end only be underwritten by governments.
The bankers will complain, right until they demand even bigger subsidies for their own contraptions.
Re: Rolls-Royce
That very much depends which bit of R+R you're talking about.
Sovereign Emergency Communications
https://di-fg.de/FES.html
Picking winners
Again.
It's just so easy when it's somebody else's money on the line.