Europe stands at a critical juncture in its digital journey. After decades of technological leadership that once positioned European nations at the forefront of innovation—from steam engines to aviation—the European Union now finds itself increasingly dependent on foreign digital technologies and infrastructure. A comprehensive new policy framework, outlined in „The European Way: A Blueprint for Reclaiming our Digital Future,”[1] argues that this dependency has transformed Europe from a digital leader into what the authors provocatively term a „digital colony.” This transformation demands urgent action, not merely reactive regulation, but a coordinated strategy that leverages Europe’s inherent strengths while addressing its digital vulnerabilities.
From Innovation Powerhouse to Digital Dependency
The scale of Europe’s digital dependency is stark. The EU relies on foreign countries for over 80% of digital products, services, infrastructure, and intellectual property.[2] This represents a dramatic shift from historical patterns where European powers consistently led in foundational technologies. Today’s global power distribution is increasingly defined by capabilities in information and communication technologies, yet Europe finds itself predominantly a client rather than a creator of these critical systems.
The consequences extend beyond economic considerations into the realm of strategic autonomy. Critical digital infrastructure—from data centers and undersea cables to semiconductors—is now predominantly operated or provided by foreign actors. Perhaps most concerning is Europe’s lag in 5G infrastructure, where European players are increasingly falling behind their international competitors, highlighting the urgent need for a comprehensive response to this technological gap.
This dependency has been exacerbated by geopolitical tensions that make reliance on foreign digital infrastructure potentially problematic. With nations launching cyberwarfare campaigns against European democracies and questions arising about data protection and technological sovereignty, Europe’s digital vulnerability has become a matter of national security rather than merely economic competitiveness.
The European Way: A Vision for Digital Sovereignty
The proposed „European Way” represents more than an aspirational slogan—it offers a concrete framework grounded in six foundational principles that distinguish European digital policy from approaches taken by other global powers. This framework emphasizes principled governance that safeguards democratic norms and European values, strategic resilience through reduced dependencies on potentially hostile foreign technologies, and interoperability that enables seamless cross-border data flows and interaction between digital services.
The vision also incorporates sustainability as a core principle, aligning digital innovation with the European Green Deal by mandating energy efficiency and life-cycle accountability for digital products and services. This approach creates opportunities for European companies to lead in green technology adoption while ensuring public trust through transparent, secure, and accountable digital governance.
This comprehensive approach reflects lessons learned from Europe’s regulatory experience. While the EU has developed extensive digital legislation—currently comprising 101 adopted digital laws—this regulatory maze has often constrained growth, particularly for small and medium enterprises facing disproportionate compliance costs compared to global technology giants. The Brussels Effect, whereby EU regulations become global standards, demonstrates Europe’s regulatory influence, but this alone has proven insufficient to address strategic dependencies.[3]
Building Infrastructure for Digital Independence
Central to reclaiming digital sovereignty is developing robust European digital infrastructure. The attached policy paper advocates for a comprehensive „Digital Industrial Strategy” focused on building European alternatives across critical technology layers. This approach draws inspiration from successful historical precedents, particularly the Airbus consortium established in 1970, which demonstrated how European cooperation could create a global industrial leader capable of competing with established American dominance in aviation.
The European Chips Act[4], which mobilizes up to EUR 43 billion in public and private investments through 2030, exemplifies this strategic approach to building technological independence. The legislation addresses the recent global chip shortage while positioning Europe to compete in semiconductor and quantum technology sectors that are fundamental to digital sovereignty.
Similarly, the European Defence Fund[5], with nearly €7.3 billion allocated for 2021-2027, supports collaborative defence research and capability development projects that strengthen Europe’s digital defence infrastructure. The 2025 European Defence Fund has allocated €1.065 billion specifically to collaborative research and development projects, with digital technologies, cybersecurity, and artificial intelligence featuring prominently across the work programme.
Regulatory Harmonization and the Digital Single Market
While infrastructure development provides the technological foundation for digital sovereignty, regulatory harmonization remains essential for creating a truly integrated Digital Single Marketeu ai. The EU AI Act[6], as the world’s first comprehensive legal framework on artificial intelligence, positions Europe to play a leading global role while ensuring that AI systems used in the EU are safe, transparent, and non-discriminatory.
The Digital Services Act[7] and Digital Markets Act[8] represent additional pillars of this regulatory framework, establishing obligations for digital service providers and addressing competition concerns in digital markets. The Digital Markets Act exemplifies the Brussels Effect by imposing EU regulations on major technology companies and influencing similar regulations worldwide.
Recent Commission strategies to boost the EU single market emphasize digitization as a key enabler of cross-border trade and services.[9] The proposed Digital Product Passport[10], starting with batteries in 2027, will create standardized systems for sharing product information across member states, reducing costs for both businesses and regulatory authorities.
The EU Data Act[11], which entered into force in January 2024, further strengthens this framework by ensuring more effective data sharing while protecting individual and business rights. These measures collectively address the fragmentation that has historically limited the Digital Single Market’s potential while establishing European standards for data governance and digital rights.
Energy and Skills: Foundations of Digital Transformation
Digital sovereignty requires more than technological and regulatory frameworks—it demands adequate energy infrastructure and human capital. The attached policy paper advocates for a balanced „Energy Mix Deal” that reconsiders nuclear energy’s role while expanding renewable energy investments. This approach addresses the reality that data centers and digital infrastructure require substantial, reliable energy supplies that current renewable capacity cannot yet fully provide.
Equally critical is addressing Europe’s digital skills gap. The European Commission estimates that the EU requires 20 million employed ICT specialists by 2030[12], yet currently employs slightly below half this figure. The proposed transformation of existing directive frameworks into a harmonized „Blue Card Regulation” with streamlined fast-track procedures for third-country ICT professionals represents one approach to addressing this challenge.
A Call for Coordinated Action
The comprehensive nature of digital transformation challenges requires coordination that transcends traditional policy silos. The attached policy paper proposes a „Sovereignty Compact”—a protocol annexed to EU Treaties that would enable qualified-majority voting on critical decisions related to digital infrastructure and related budget lines. This mechanism, similar to the European Fiscal Compact[13], would convert veto power into strategic choice, enabling willing member states to advance digital sovereignty initiatives without being constrained by potential obstructionists.
The urgency of this coordination is underscored by rapidly evolving geopolitical circumstances. Recent emphasis on digital sovereignty recognizes that Europe can no longer rely solely on market mechanisms and regulatory frameworks to maintain its position in the global digital economy. Strategic alliances with like-minded nations and proactive investment in European digital capabilities have become essential for maintaining democratic governance and fundamental rights in an increasingly digitized world.
Conclusion: Seizing the Moment for Digital Renaissance
Europe’s path forward requires acknowledging both the scale of current challenges and the significant assets available for addressing them. The EU possesses a vast internal market, highly skilled workforce, world-class research institutions, and proven regulatory capabilities. What has been missing is not potential, but coordinated action guided by a comprehensive strategic vision.
The „European Way” offers such a vision—one that moves beyond reactive regulation toward proactive capability building while maintaining European values of democratic governance, fundamental rights, and sustainable development. Success requires political will to implement bold reforms, complete the Digital Single Market, invest in future technologies, and defend digital infrastructure as actively as territorial sovereignty.
As the policy paper concludes, this is not merely about defending the past but embracing a future where European companies set global benchmarks, European citizens enjoy technological freedoms without compromising their rights, and the EU stands as a confident, sovereign actor on the world stage. The digital age demands nothing less than a European renaissance—one built on the foundation of technological sovereignty, democratic values, and coordinated action.
[1] https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5251254
[2] https://pppescp.com/2025/02/04/digital-sovereignty-in-europe-navigating-the-challenges-of-the-digital-era/
[3] https://itif.org/publications/2024/03/07/the-brussels-effect-how-the-digital-markets-act-projects-european-influence/
[4] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2023.229.01.0001.01.ENG
[5] https://defence-industry-space.ec.europa.eu/eu-defence-industry/european-defence-fund-edf-official-webpage-european-commission_en
[6] https://eur-lex.europa.eu/eli/reg/2024/1689/oj/eng
[7] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32022R2065
[8] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2022.265.01.0001.01.ENG&toc=OJ%3AL%3A2022%3A265%3ATOC
[9] https://www.euronews.com/my-europe/2025/05/19/digitisation-underpins-new-commission-strategy-to-boost-eu-single-market
[10] https://data.europa.eu/en/news-events/news/eus-digital-product-passport-advancing-transparency-and-sustainability
[11] https://eur-lex.europa.eu/eli/reg/2023/2854/oj/eng
[12] https://ec.europa.eu/eurostat/web/interactive-publications/digitalisation-2025
[13] https://www.ecb.europa.eu/pub/pdf/other/mb201203_focus12.en.pdf
