\n\t\t\t\tThe European Commission is finalizing a package that aims to reduce the bloc\u2019s reliance on American data centers, artificial intelligence, microchips and software.\t\t\t<\/p>\n
BRUSSELS \u2014 The European Union wants to move away from foreign technology over concerns that overreliance has become a risk in shaky trade ties with Washington.<\/p>\n
The European Commission is finalizing a package of measures to boost its so-called technological sovereignty, set to be published on June 3. The package includes proposals to crack down on the bloc\u2019s deep-rooted exposure to foreign technology in areas including cloud, artificial intelligence, microchips, software and data centers.<\/p>\n
\u201cAs geopolitical fragmentation deepens and supply chains are increasingly weaponized, technological dependencies are becoming strategic liabilities,\u201d the EU executive warned in a draft of the strategy<\/a> obtained by POLITICO.<\/p>\n POLITICO also obtained an annex<\/a> to the draft strategy, as well as a draft of the EU\u2019s plan to revise its chips law<\/a>. It previously obtained a document<\/a> on energy use of data centers and AI that is also part of the package.<\/p>\n While the plans are subject to change before they are published \u2014 and will be accompanied by a separate law governing use of cloud \u2014 they so far signal limited ambition in addressing the dominance of American technology head on, instead passing the buck to EU capitals to decide what to do. The plans also rely heavily on funding, both from the private sector and the EU budget, that is yet to be secured. <\/p>\n We break down the four fixes Brussels has in mind to make the bloc less dependent on foreign technology.<\/p>\n EU countries would have to force public administrations to assess whether they are too reliant on foreign cloud, testing digital services against EU sovereignty criteria.<\/p>\n That would seek to make governments across the EU more resilient against a “kill switch” scenario<\/a> that has dominated concerns over U.S. tech dominance.<\/p>\n While EU capitals won’t be told how to mitigate risks, it would empower governments to check where the vulnerabilities are and procure safer alternatives \u2014 potentially sidelining U.S. giants from sensitive public procurement in Europe.<\/p>\n But the Commission would leave it to EU capitals to decide which changes, if any, need to be made, according to two people briefed on the plan \u2014 meaning governments can choose to do nothing.<\/p>\n \u201cStrengthening Europe\u2019s technological base and independence in key digital supply chains \u2014especially where other technology powerhouses exist \u2014 creates strategic counterweights that enhance Europe’s capacity to remain open to the world, without compromising its interests and values,\u201d the Commission writes in the draft strategy.<\/p>\n Brussels is eyeing new, large-scale microchip projects through its proposed revision of the chips law, obtained by POLITICO<\/a>. Such projects would get easier access to public support, faster permitting and preferential access to pilot lines.<\/p>\n The law will build on the original Chips Act, adopted in 2023, but shifts the focus toward scaling up industrial capacity, improving crisis preparedness and stimulating demand amid warnings<\/a>\u00a0that it doesn\u2019t make economic sense to build new chip factories without generating demand first.<\/p>\n \u201cThe recent semiconductor shortages are a stark demonstration of the extent to which supply disruptions tangibly impact Europeans\u2019 lives, affecting the industrial production of cars, healthcare equipment, energy infrastructure and consumer goods across the Union,\u201d the Commission writes.<\/p>\n In its effort to break the U.S.\u2019s dominance, the EU executive also wants to leverage open-source technology \u2014 software for which the code is publicly available, making it easier to stay in control of data and systems, switch between providers and avoid being locked into a single vendor.<\/p>\n