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Europe’s Tech Leaders Demand Radical Shift Toward Digital Sovereignty

A coalition of Europe’s top tech firms and industry groups is urging EU policymakers to take decisive action to reduce reliance on foreign digital infrastructure. In an open letter to European Commission President Ursula von der Leyen and digital chief Henna Virkkunen, over 80 signatories, representing around 100 organizations, call for a bold strategy to foster homegrown digital solutions—from AI and cloud platforms to chips and telecom networks.

A Call For Digital Independence

The letter underscores the need to prioritize European-built alternatives with strong commercial viability. Signatories include industry heavyweights from cloud computing, telecom, defense, and startup ecosystems, all pushing for a shift towards “sovereign digital infrastructure.”

The push for what some call a “Euro Stack” isn’t new, but geopolitical tensions have heightened urgency. A January report by competition economist Cristina Caffarra outlined the strategy in-depth, and recent industry conferences have seen growing momentum behind the idea.

The turning point? The Munich Security Conference, where U.S. Vice President JD Vance sent a clear message: America’s interests come first. European leaders left the event with no illusions about the fragility of the transatlantic digital alliance. The specter of a U.S. executive order cutting off essential tech services has made European autonomy a pressing issue.

“Imagine Europe without access to search engines, email, or cloud computing. It sounds dystopian, but it’s a real risk,” warns Wolfgang Oels, COO of Ecosia, a Berlin-based search engine and one of the letter’s signatories. “Something similar already happened to Ukraine.”

The “Buy European” Mandate

The coalition’s demands are clear: EU institutions must lead by example, adopting procurement policies that prioritize European-made tech. The goal isn’t exclusionary but rather to create a level playing field where European firms can compete and justify investment.

“Americans buy American, the Chinese buy Chinese, but Europe acts as if neutrality is a virtue,” says Caffarra. “It’s time for a change.”

The letter suggests offering incentives for businesses to switch to local providers—potentially through subsidies or voucher programs. The idea is to make European alternatives competitive, not by shutting out foreign tech, but by ensuring that European firms have a viable market.

Scaling Up Through Collaboration

Beyond funding, the coalition urges the EU to encourage a “pooling and federating” model to help European tech companies scale. This includes common standards, interoperability initiatives, and aggregation of existing assets to strengthen Europe’s position against U.S. cloud giants.

Past initiatives, like the Gaia-X cloud project, failed due to the involvement of American hyperscalers, which diluted its sovereignty ambitions. The new approach seeks to prevent similar missteps.

A Sovereign Infrastructure Fund

To support capital-intensive tech sectors like semiconductors and quantum computing, the letter calls for the creation of a “Sovereign Infrastructure Fund.” Caffarra argues that even modest funding could significantly boost open-source projects and strategic infrastructure.

“Europe’s open-source community is vast and capable. A targeted investment strategy could yield substantial returns,” she says.

Rethinking Europe’s Digital Strategy

Despite past rhetoric on digital sovereignty, the EU’s current approach has been fragmented and ineffective, the coalition argues. Too much funding flows into academic research rather than tangible, market-driven solutions. The signatories push for a more industry-led approach, where funding is directed toward scalable, commercially viable projects.

“Europe can no longer afford to be reactive,” Caffarra asserts. “We need a proactive, industrial strategy that puts digital sovereignty at the heart of economic policy.”

As global competition intensifies and geopolitical risks mount, the message from Europe’s tech leaders is unmistakable: The EU must act decisively, or risk losing control of its digital future.

Price Shifts: Temu And Shein React To Upcoming Tariffs

The online shopping world experienced a jolt as Temu and Shein, popular e-commerce platforms, recently adjusted their prices due to impending tariff changes. These platforms, known for offering budget-friendly options, have echoed with changes that might surprise many shoppers.

What Sparked the Price Hike?

Effective next week, a significant tariff will impact goods imported from China. This tariff follows the expiration of the “de minimis” exemption on May 2. This exemption previously allowed American shoppers to skip tariffs on items valued under $800. The new tariff demands a 120% fee or a flat $100 per postal item, increasing to $200 come June 1.

For instance, Temu’s two patio chairs jumped from $61.72 to $70.17 overnight, while a bathing suit on Shein saw a 91% surge in price. Yet, the price landscape isn’t consistently upward; a smart ring on Temu dropped by $3.

Implications for Consumers

Due to economic shifts and evolving trade rules, both Shein and Temu emphasized their efforts to maintain quality and affordability despite costlier operational expenses. They advised consumers to shop before April 25 to dodge the upcoming hikes, though it’s uncertain if this timing affects the 120% tariff applicability.

Impact on Lower-Income Households

The discontinuation of the “de minimis” exemption is poised to hit lower-income families hardest. Reports indicate these households spend a higher income proportion on apparel, and this change could burden them further.

Further economic insights highlight how industries adjust to challenges, such as in the face of AI-driven changes, potentially offsetting emissions concerns with economic gains.

For buyers and businesses alike, the shifting sands of trade laws call for adaptability and forethought.

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