Would you like to join the EuroStack initiative?
Showcasing and promoting European digital solutions
DIGITAL SME is launching a series of events to spotlight European-made digital tools that strengthen Europe’s technological independence. These sessions will promote alternatives to non-EU solutions, covering various aspects of digital sovereignty, from everyday office tools to cloud computing solutions.
The concept of technological sovereignty should be centred around Europe’s ability to control its digital future by fostering homegrown innovation, reducing dependencies on foreign technology providers, and ensuring a fair, competitive digital ecosystem. Europe’s current reliance on non-European technologies - especially from the US and China - poses both economic and geopolitical risks.
With over 80% of digital products, services, and infrastructure being imported, the EU faces challenges in maintaining control over critical technologies such as AI, cloud computing, and cybersecurity. In its Manifesto 2030, DIGITAL SME calls for a European Digital New Deal able to foster Europe’s technological leadership as a strategy to enhance the continent’s resilience and economic competitiveness.
Strengthening Tech Sovereignty via the EuroStack
The EuroStack is a bold vision for securing Europe’s place in the global digital economy by developing its own technological stack - spanning hardware, software, and digital services. As geopolitical and economic uncertainties grow, Europe must strengthen its technological sovereignty, resilience, and security to avoid reliance on foreign tech giants.
Europe’s technological sovereignty is at a critical juncture. The Eurostack is a strategic initiative aimed at reducing Europe’s dependency on foreign digital infrastructure by developing a comprehensive European technology stack - spanning hardware, software, and digital services.
As outlined in the Draghi Report, Europe’s failure to establish a competitive digital ecosystem has left it vulnerable to extraction by foreign tech giants, who dominate key digital value chains from AI and cloud computing to connectivity and data. To reclaim control, Europe must move beyond regulation and actively invest in sovereign digital infrastructures that strengthen resilience, security, and economic growth.
Relevant publications
The Draghi Report warns that Europe’s failure to develop a strong digital ecosystem has led to low innovation, economic stagnation, and lack of competitiveness. Despite regulatory efforts and significant public investment in European tech startups, the market has failed to produce strong European alternatives to US tech giants. The urgency to act is clear. Europe is rapidly losing ground, particularly in cloud infrastructure, where European providers now hold a minimal market share. To regain control over its digital future, Europe must build its own tech infrastructure, ensuring long-term sovereignty, security, and economic competitiveness.
The EuroStack report by Francesca Bria is an important milestone in Europe´s quest for tech sovereignty and competitiveness.
The key takeaways from this paper include establishing the EuroStack Digital Infrastructure (EDI) to enable interoperable digital services, hardware, and software, as well as creating a €300 billion investment for a European Sovereign Tech Fund. Tech solutions by innovative European SMEs can contribute to the Eurostack, in addition to developing digital commons and using public procurement to drive European tech innovation, as suggested in the report.
The report highlights that it is Europe’s moment to lead in the digital age. Therefore, EuroStack is the right path to empower its homegrown innovative tech industry, especially SMEs.
This paper was led by Francesca Bria, commissioned by Bertelsmann Stiftung and supported by Stiftung Mercator GmbH; UCL Institute for Innovation and Public Purpose (IIPP); and CEPS (Centre for European Policy Studies).
