Europe stands at a critical inflection point. Long hailed as the cradle of innovation — from the printing press to the internal combustion engine — the continent today risks relegation to the status of “digital colony,” reliant on foreign technology giants for its most basic infrastructure. Our recently released policy paper, “The European Way”, makes one point clear: Europe’s current approach, with its patchwork of well-meaning but fragmented initiatives, is failing. What is urgently needed is a bold, unified strategy to reclaim Europe’s digital future.

For too long, the EU has been caught in a trap of its own making — drafting rule after rule, proud of the global “Brussels Effect,” yet blind to the deeper consequences of regulatory overgrowth and chronic underinvestment. While regulation has indeed positioned the EU as a global standard-setter, it has done little to nurture world-beating digital firms or infrastructure. Today, critical layers of Europe’s digital stack — from semiconductors and cloud services to 5G and AI — are largely controlled by actors from the United States, China, or other global powers. This dependence is no longer just an economic issue; it is a geopolitical vulnerability, as recently pointed out in Mario Draghi’s report.

Yet Europe is not without assets. It boasts the world’s largest internal market, a highly educated workforce, strong research institutions, and a regulatory tradition anchored in fundamental rights. What has been missing is political will, strategic prioritisation, and the courage to coordinate across sectors and borders. It is not Europe’s capabilities that are in question, but its cohesion and determination.

The global environment has become far less forgiving. Geopolitical tensions are rising. Russia’s cyberattacks, China’s technological surge, and a more transactional US foreign policy have eroded assumptions that Europe can indefinitely rely on others for its digital needs. As the post-Cold War order unravels, the EU must prepare for a world where raw power — including technological power — is the coin of the realm. If Europe wants peace and prosperity, it must prepare, as the old Latin maxim goes, for the possibility of conflict: si vis pacem, para bellum.

The challenge is thereby not to wall Europe off in protectionist isolation but to chart a distinctive, principled path — a “European Way” that embeds human rights, sustainability, and democratic governance into the fabric of its digital transformation. This vision is not about building a fortress Europe but about ensuring that no single point of foreign dependency can be weaponised against it.

What would such a strategic reset look like? First, Europe must reimagine its digital infrastructure. It needs to identify where it can realistically achieve global leadership — in areas like quantum computing, biotechnology, and AI applications — and where it must at least secure minimal domestic alternatives. This requires targeted investment, public-private partnerships, and a new Digital Industrial Strategy, one that avoids scattershot funding and focuses on commercial viability, resilience, and scalability. Lessons can be drawn from past successes, such as Airbus, where cross-border collaboration and strategic focus turned fragmented national efforts into global industrial might.

Second, the EU must complete its long-delayed Digital Single Market. Despite a decade of rhetoric, barriers remain that prevent European firms from scaling across borders, stifling innovation and competitiveness. Completing the Capital Markets and Banking Unions, introducing an optional “28th regime” for companies, and reforming public procurement to favour European technologies where possible are all essential steps.

Third, the EU must reshape its approach to global engagement. This means defining a clear roster of “trusted international partners” and deepening strategic cooperation with like-minded democracies. It also means speaking with one voice in international fora and standardisation bodies, using Europe’s weight to shape global digital norms. A stronger, more unified EU can both defend its interests and become a more reliable partner to allies, including the United States, Japan, and India.

Fourth, Europe must address its governance gaps. The EU’s regulatory system is at risk of buckling under its own complexity. Streamlining governance, strengthening ex-post evaluation, consolidating enforcement in independent agencies, and embedding innovation principles into new legislation are all necessary to avoid suffocating Europe’s own digital ecosystem.

Fifth, energy must be brought squarely into the digital debate. No digital future is possible without reliable, affordable, and sustainable power. Europe needs a new Energy Mix Deal, combining nuclear, renewables, and smart grids to underpin its digital infrastructure. Without tackling the energy question, Europe’s digital ambitions will remain hamstrung.

Finally, Europe must win the global race for digital talent. This means creating a fast-track for high-skilled migration, harmonising degrees, reforming education curricula, and offering clear incentives for top talent to stay. Europe’s high quality of life and democratic freedoms are comparative advantages that must be harnessed to attract the brightest minds.

Yet none of this will be possible without political courage. Europe’s institutional architecture — still reliant on unanimity in core matters — risks turning bold plans into endless negotiations hostage to narrow national interests. A “Sovereignty Compact,” allowing a coalition of willing states to move forward on critical digital, defence, and budgetary matters without being blocked, could provide the necessary institutional breakthrough.

The stakes could not be higher. This is not just about economic competitiveness or regulatory alignment; it is about Europe’s very capacity to chart its own course in a world increasingly defined by technological power. Without decisive action, Europe risks becoming a rule-taker, not a rule-maker, in the digital age — a passive client of foreign technologies, rather than a confident architect of its own digital future.

The time for half-measures has passed. Europe must act with urgency, unity, and strategic clarity. This moment offers a rare window of opportunity to reset Europe’s digital trajectory. If seized, the “European Way” can become not just a slogan but a lived reality — one where European innovation, resilience, and sovereignty are rebuilt for the 21st century. If missed, Europe’s decline into digital dependency may soon become irreversible.

The choice, ultimately, is ours. Let us hope Europe finds the resolve to choose wisely.