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Europe’s Tech Reliance: Navigating Digital Sovereignty Amid Transatlantic Tensions

As geopolitical tensions intensify between the United States and the European Union, recent analysis highlights Europe’s deep reliance on American technology providers despite long-standing calls for digital independence.

Transatlantic Tech Tensions

Since returning to the political spotlight, U.S. President Donald Trump has taken a series of decisive actions, including the introduction of new tariffs reported by CNBC, which have added uncertainty to the European economic outlook. At one stage, his administration even floated the possibility of military involvement concerning strategic territories such as Greenland. The idea was later withdrawn, but it nevertheless triggered unease among European leaders.

Erosion of European Cloud Dominance

Within digital infrastructure, European cloud providers continue to lose ground to U.S. competitors. Data from Synergy Research Group shows that European vendors controlled less than 15% of the market in 2025. Reversing this trajectory remains difficult due to the enormous scale of investment required for research, infrastructure, and global service networks. The firm’s chief analyst, John Dinsdale, notes that leadership in the cloud sector demands not only capital but also strong brand presence and worldwide operational reach.

Enterprise Software and Customer Management Landscape

A European Parliament report illustrates the imbalance even more clearly. U.S. companies command 59% of Europe’s enterprise software market, with Oracle and Microsoft holding 18% and 10% respectively. By comparison, major European firms such as SAP and Deutsche Telekom occupy only small shares in the cloud segment, at roughly 2% each. The customer relationship management sector shows a similar pattern, where Salesforce dominates, and SAP remains a distant competitor, highlighting the persistent gap in digital services.

Striving for Digital Sovereignty

European policymakers are increasingly reassessing technology strategies in pursuit of digital sovereignty. As SAP CEO Christian Klein stated on CNBC’s Squawk Box Europe, the debate now goes beyond data storage and management and extends to sovereign control over software platforms themselves. This shift reflects a broader recognition that digital infrastructure has become a matter of economic resilience and national security.

Ultimately, Europe’s ambition to build independent digital capabilities is clear. However, reducing reliance on U.S. technology giants will demand sustained investment, coordinated policy action, and long-term strategic planning in an increasingly competitive global environment.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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