Europe’s digital economy is critical for its security and prosperity, but it is overly reliant on foreign technology. The gap between European digital capabilities and those of the US and China is widening, necessitating an industrial strategy focused on technological sovereignty. Empowering SMEs and fostering public-private partnerships are essential for realizing the eurostack, ensuring digital independence.
Europe’s digital economy is crucial for its prosperity and security, yet it faces a critical challenge in technological sovereignty. The recent US election has exposed Europe’s excessive dependence on foreign tech infrastructure, encompassing essential elements like chips, data storage, and AI technologies. Currently, Europe lacks ownership and control over these vital components that define the modern digital landscape.
Insights from Draghi’s report project that 70% of global economic value will soon be digitally enabled, but Europe continues to fall behind the digital prowess of the US and China. If swift action isn’t taken, the gap in technological advancement will become unbridgeable, stressing the need for a solid strategy.
Ursula von der Leyen’s appointment of Henna Virkkunen signals the importance of digital autonomy in EU policies; however, a definitive plan for achieving tech sovereignty is still absent. Additional regulations alone cannot address the current issues, as Europe is struggling to enforce existing laws effectively, risking backlash from the US and further deterioration of defense relations.
Achieving digital independence necessitates collaboration between Europe’s public and private sectors. A comprehensive industrial strategy is imperative to align the objectives of governments and industries, enabling the development of the eurostack—a technology stack exclusively owned by Europeans. Investments and public-private partnerships are essential in creating supportive conditions for a unified vision of tech independence.
While European industry suffers from fragmentation compared to American and Chinese giants, it is not devoid of innovation. Governments must guide and unify the private sector to leverage the technological capabilities and innovative potential found within SMEs (small and medium-sized enterprises), which represent 99% of European businesses.
SMEs are vital in driving digital transformation in the B2B sector and supporting public administration development. By prioritizing these companies in digital strategies, Europe can bolster its technological sovereignty and, in turn, improve its global digital standing.
An ambitious eurostack strategy, centered on empowering European tech SMEs, is essential for developing the digital infrastructure needed for innovation and sovereignty. The upcoming DIGITAL SME summit on December 10 will facilitate discussions among experts, industry leaders, and policymakers on advancing Europe’s digital sovereignty.
Europe’s pursuit of technological sovereignty is crucial for its economic future. By emphasizing the role of SMEs and creating a coherent eurostack strategy, Europe can position itself as a leader in the digital economy. Collaborative efforts between government and industry are essential for fostering innovation and reducing dependence on foreign technology, ensuring long-term security and prosperity.
Original Source: www.euractiv.com
