By Andrea Follin.
1. DefinitionsData has become the cornerstone of the digital economy, with major implications for innovation, informing decision-making and economic growth. Thus, the question of its governance and sovereignty is paramount for national security and integrity. “The EU relies on foreign countries for over 80% of digital products, services, infrastructure and intellectual property” [1]. The Draghi report argues that the EU must reduce “strategic dependencies [over] critical technologies for the digitalisation of Europe’s economy” [2].
Thus, digital sovereignty can be referred to as “the capacity of States to ensure that their rules are respected by the various actors in the online world” [3]
2. Europe’s Digital Sovereignty AgendaIn 2010, the EU introduced a strategic document, the Digital Agenda for Europe, shaping the digital sovereignty agenda for 2010-2020. It aimed to deliver sustainable economic growth and social benefits by creating a digital single market based on fast internet and interoperable applications [4]. Key objectives included reducing electronic communication prices, enhancing internet connectivity, and strengthening consumer protection in telecommunications [5]. The strategy focused on creating a digital Single Market, promoting faster internet access, improving interoperability, boosting internet trust and security, enhancing digital literacy skills, and increasing investment in research and development [4]. By 2015, the digital single market strategy was introduced to ensure better access to digital goods and services across Europe, foster optimal conditions for digital networks and services, and amplify the digital economy’s growth potential [5]. Despite these efforts, by the end of the decade, the EU still relied heily on foreign countries for digital products and services, highlighting the ongoing challenges in achieving true digital sovereignty [6].
The EU’s digital agenda for 2020-2030 focuses on achieving digital sovereignty while fostering innovation and competitiveness. The European Commission introduced the “Digital Compass” in March 2021, outlining four key targets for 2030:
enhancing digital skills, developing sustainable digital infrastructures, digitising businesses, and transforming public services [7] [8].These strategies aim to empower citizens and businesses in a human-centred, sustainable digital future [7] [5]. The agenda includes initiatives such as the Digital Services Act and Digital Markets Act to ensure fair competition and user rights in digital markets [5]. Additionally, the EU prioritises technological advancements in quantum computing, blockchain, artificial intelligence, and semiconductor production to reduce dependencies on foreign technologies [5]. By pursuing these goals, the EU seeks to balance digital sovereignty with openness and interconnectedness in the global digital landscape [8] [9].
3. The supremacy of China and the USA regarding dataWhile the EU strives for digital sovereignty, China and the United States currently dominate the global data landscape. China’s quest for global data supremacy involves sealing off the potential flow of sensitive information to foreign governments, leveraging its vast population for data collection, and rapidly deploying AI models at scale [10]. As outlined in its 2017 “New Generation Artificial Intelligence Development Plan,” the Chinese government’s active role in AI development links basic research with practical applications across various sectors [11]. This approach gives China an advantage in the commercial dimension of AI supremacy [11]. The United States, meanwhile, maintains its edge through its tech giants’ dominance in cloud services and AI research. Companies like Amazon (AWS), Google, and Microsoft control significant parts of the cloud infrastructure around the world, while data privacy and security issues are one of the greatest concerns in Europe [6]. The U.S. also has broad export controls on advanced computing technologies to maintain a technological edge [11]. This power dynamic is reflected in the fact that the EU depends on foreign countries for more than 80% of its digital products, services, infrastructure, and intellectual property [12], underlining the huge challenge Europe faces in trying to achieve true digital sovereignty.
4. Threats underlining the urgent necessity of its implementationThe implementation of digital sovereignty faces several urgent threats that underscore the necessity for immediate action. One of the primary concerns is the EU’s hey reliance on foreign technology providers, with a staggering 92% of European data residing in the clouds of U.S. technology companies [13]. This dependency extends to critical sectors such as digital health systems, government cloud storage, and public administration platforms, creating a strategic vulnerability [14]. If they dominate, it will further put EU citizens’ data and business privacy into subordination to the whims of the tech giants, therefore harming EU high-technology firm growth [15]. Concerns regarding cybersecurity risks brought calls for oiding reliance on Chinese infrastructure regarding 5G and an eventual impact on foreign influences on European cyberspace. The domination of the U.S. and Asian companies in the global public cloud market has caused apprehension among European governments and industry players about using non-European data services [15]. Furthermore, the rise of surveillance capitalism, illustrated by the Cambridge Analytica scandal [16], has resulted in a gradual loss of control by European citizens over their personal information and privacy [15]. The COVID-19 pandemic has only heightened this issue, with a surge of cyber-attacks and controversies surrounding contact-tracing solutions developed by tech companies outside the EU [15]. All these threats altogether are putting into evidence the urgent need to develop Europe’s sovereignty in the digital domain, protecting its citizens’ data and ensuring economic competitiveness based on control over digital infrastructures.
5. Conclusion and outlookAs Europe grapples with digital sovereignty, the challenges are mounting. The EU’s hey reliance on foreign tech giants for data storage and critical infrastructure poses significant risks to privacy, security, and economic competitiveness. With 92% of European data residing in U.S. clouds and growing concerns over surveillance capitalism, the need for a robust European digital ecosystem is clear. The EU’s Digital Compass strategy aims to address these issues, but success will require substantial investment, innovation, and a delicate balance between regulation and fostering homegrown tech leaders.
Edited by Justine Peries.
References[1] “The Draghi Report on EU Competitiveness.” European Commission, commission.europa.eu/topics/strengthening-european-competitiveness/eu-competitiveness-looking-ahead_en. Accessed 2 Feb. 2025.
[2] “Tech Sovereignty and a New EU Foreign Economic Policy.” ECDPM, ecdpm.org/work/tech-sovereignty-and-new-eu-foreign-economic-policy.
[3] [ENTRETIEN] Quels Sont Les Modèles De Mise En Œuvre De La Souveraineté Numérique ? Par Samuele Fratini. 11 June 2024, http://www.sciencespo.fr/public/chaire-numerique/2024/06/11/entretien-quels-sont-les-modeles-de-mise-en-oeuvre-de-la-souverainete-numerique-par-samuele-fratini.
[4] A Strategy for Smart, Sustainable and Inclusive Growth. eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:2020:FIN:en:PDF.
[5] Digital Agenda for Europe | Fact Sheets on the European Union | European Parliament. http://www.europarl.europa.eu/factsheets/en/sheet/64/digital-agenda-for-europe.
[6] Carver, Julia. “More Bark Than Bite? European Digital Sovereignty Discourse and Changes to the European Union’s External Relations Policy.” Journal of European Public Policy, vol. 31, no. 8, Jan. 2024, pp. 2250–86. https://doi.org/10.1080/13501763.2023.2295523.
[7] Estrategia Digital De La UE | España Digital 2026. espanadigital.gob.es/en/estrategia-digital-de-la-ue.
[8] Explanatory Memorandum to COM(2021)574 – 2030 Policy Programme “Path to the Digital Decade” – EU Monitor. http://www.eumonitor.eu/9353000/1/j4nvhdfdk3hydzq_j9vvik7m1c3gyxp/vlm8mpwkd7xo.
[9] “Digital Decade – Open Future.” Open Future, openfuture.eu/observatory/digital-decade.
[10] Third Way. http://www.thirdway.org/report/competing-values-will-shape-us-china-ai-race.
[11] “The Role of the Middle East in the US-China Race to AI Supremacy.” Middle East Institute, http://www.mei.edu/publications/role-middle-east-us-china-race-ai-supremacy.
[12] The EU’s Digital Challenges. http://www.europarl.europa.eu/EPRS/TD_EUDigitalChallenges.pdf.
[13] Dezeure, Freddy. Digital Sovereignty Is Impossible Without Big Tech. http://www.freddydezeure.eu/37-digital-sovereignty-is-impossible-without-big-tech.
[14] “Op-ed: How Can the EU Achieve Greater Digital Sovereignty?” The Parliament Magazine, 7 Oct. 2024, http://www.theparliamentmagazine.eu/news/article/oped-the-eus-digital-sovereignty-hangs-in-the-balance.
[15] Madiega, Tambiama and EPRS, European Parliamentary Research Service. “Towards a More Resilient EU.” EPRS Ideas Paper, report, July 2020, http://www.europarl.europa.eu/RegData/etudes/BRIE/2020/651992/EPRS_BRI(2020)651992_EN.pdf.
[16] Confessore, Nicholas. Cambridge Analytica and Facebook: The Scandal and the Fallout So Far. http://www.nytimes.com/2018/04/04/us/politics/cambridge-analytica-scandal-fallout.html.
[Cover Image] Photo by Markus Spiske: https://www.pexels.com/fr-fr/photo/logiciel-software-matrice-codes-1089438/, licensed under Pexels.
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