The EuroStack campaign, primarily led by small and mid-sized European cloud providers, open-source firms, and cybersecurity specialists, argues for “Aggressive Buy European” procurement rules to strengthen European technological sovereignty. At first glance, this may seem like a patriotic and economically sound strategy. In reality, such an approach is economically unviable, strategically self-defeating, and technologically counterproductive. Rather than fostering European innovation, it risks deepening Europe’s technological lag and imposing unnecessary burdens on public institutions and businesses alike.
Europe’s ICT Investment Deficit: A Reality Check
Europe is already struggling to keep up with global ICT leaders, which have spent decades scaling, investing in research and development, and expanding their global reach. For example, in a recent ECIPE study we demonstrate that the investment gap between the EU and the US in ICT and cloud-related sectors stands at a staggering 1.36 trillion dollars.
Closing this gap through a “Buy European” mandate would demand an unrealistic surge in annual investments – from USD 157 billion in 2030 to a staggering USD 1.2 trillion by 2050, consuming up to 6.4% of the EU’s GDP. The sheer financial and human capital required to build a purely European cloud ecosystem capable of competing globally would divert critical resources from AI, semiconductors, advanced manufacturing, and other technology-intensive sectors, stifling innovation and slowing economic growth.
Meanwhile, US cloud providers have mastered economies of scale, continuous reinvestment, and global market integration, delivering superior, cost-effective, and cutting-edge services – services that tens of thousands of European businesses already successfully rely on to stay competitive.
If the EU forces public institutions and industries to rely on fragmented, high-cost alternatives, it risks trapping itself in inefficiency by law, raising operational costs, and losing access to the best innovations the global market has to offer.
Instead of chasing an unrealistic vision of isolation, the EU should embrace international partnerships and multi-cloud strategies, ensuring affordable, high-quality solutions across public services to truly add value for citizens. Restricting access to the best and most affordable cloud technologies in favour of fragmented, high-cost alternatives would lock European institutions into inefficiency, drive up operational costs, and leave them lagging in the digital race.
Moreover, history has shown that US and other non-EU providers will continue to innovate in response to European market needs and proportionate regulatory demands – just as they did following GDPR and public sector data localisation requirements by offering sovereign cloud solutions tailored for Europe. Instead of isolating itself, Europe should embrace global partnerships to harness innovation while maintaining regulatory oversight.
EuroStack’s Contradiction: Demanding European Autonomy While Relying on US Technology
A closer look at EuroStack’s proposals reveals a strong ideological push for European digital sovereignty, rejecting reliance on US cloud, AI models, and digital infrastructure. The initiative calls for Aggressive Buy European procurement mandates and the creation of a fully European-controlled tech stack across cloud computing, AI, chips, cybersecurity, and software ecosystems.
The EuroStack initiative is riddled with hypocrisy. Its most vocal backers – while championing a so-called “sovereign” European cloud – remain deeply reliant on US technologies for their daily operations. This contradiction exposes the fundamental flaw in their argument: a full transition to a purely European cloud ecosystem is not only unrealistic but also self-defeating:
- Several EuroStack supporters run their own services on Microsoft Azure, AWS, or Google Cloud.
- Many rely on Microsoft Windows Server, Oracle databases, MySQL, and WordPress, all US-origin technologies.
- Even firms advocating for “sovereign” European AI models integrate OpenAI APIs and US-based AI toolkits into their solutions.
- Many of the same organisations pushing for European cybersecurity autonomy still use Google reCAPTCHA, Cloudflare, and other US security services.
- Some firms process transactions through PayPal or Stripe, while their online meetings are conducted using Zoom or Microsoft Teams.
If these firms genuinely believed in a European-only cloud, they would have already abandoned these services. Instead, they continue to leverage US technologies because they recognise the efficiency, innovation, and global scalability they provide. The reality is that a forced transition to a fragmented European alternative would impose massive costs, reduce competitiveness, and hinder innovation – while even EuroStack’s own supporters would struggle to operate effectively. The hypocrisy of these backers underscores what EU and Member State policymakers should already know: ideological protectionism is no substitute for technological excellence and market-driven solutions.
In short, the EuroStack vision is logistically unworkable, detached from the economic and technological realities of today’s ICT landscape.
The Risk of Self-Sabotage
If the EU or Member States were to embrace EuroStack’s demands and impose strict Buy European mandates, the consequences would be severe:
- Many EuroStack backers would be forced to cut ties with leading cloud, AI, and cybersecurity services, making them less competitive.
- Billions of euros would be wasted because of artificial market barriers instead of being directed toward fostering genuine innovation and R&D.
Notably, ECIPE research on sovereignty-first ICT procurement, particularly in relation to the EU Cybersecurity Certification Scheme (EUCS; largely equivalent to Aggressive Buy European rules), found that broad ICT procurement restrictions could lead to a 610 billion euro annual GDP loss – equivalent to a nearly 4 percent annual contraction of the EU economy.
These losses would stem from higher costs, limited access to best-in-class cloud services, declining productivity, and increased cybersecurity risks. European vendors simply lack the scale and technological capacities to adequately serve an EU-wide public procurement market, further compounding these challenges, as also demonstrated by CapEx and R&D investment figures outlined in the latest 2024 EU Industrial R&D Investment Scoreboard.
Aggressive “Buy European” policies would fracture the EU digital market, while also increasing costs for public institutions and inviting industrial retaliation from key global trade partners, particularly the United States.
A Much Smarter Strategy: Embracing Global Multi-Cloud Solutions for Public Sector Quality and Efficiency
Instead of resorting to protectionist mandates, Europe’s digital strategy should prioritise competition and interoperability. Imposing Aggressive Buy European rules will not foster innovation or enhance public services – it will create inefficiencies, escalate costs, and restrict access to state-of-the-art technology solutions. Rather than limiting choice, public procurement should be driven by quality, cost-effectiveness, and technological excellence, ensuring that European institutions and businesses can access the best solutions the global market has to offer.
While industry- and market-led initiatives like EuroStack may contribute to strengthening Europe’s digital ecosystem, Aggressive Buy European policies that artificially favour domestic providers will misallocate fiscal resources and deepen market fragmentation. Such approaches – driven by political pressure and corporate lobbying rather than genuine market needs – will isolate Europe from global technological advancements and escalating trade tensions, all without delivering meaningful sovereignty or autonomy. Without a rigorous impact assessment proving that legally mandated European solutions outperform globally available alternatives, these policies remain unjustified and counterproductive.
Political resistance to cloud adoption, framed as a sovereignty issue, has hindered Europe’s digital progress more than technological limitations. Global cloud vendors are already offering sovereign cloud solutions in compliance with EU and Member State data laws, responding to public clients’ demands to avoid vendor lock-in and loss of controllability. As ECIPE’s latest research shows, a non-discriminatory cloud-first, multi-cloud approach offers the best path to balancing data security, modernisation, and economic efficiency.
- A non-discriminatory multi-cloud strategy could unlock up to 450 billion euros in annual fiscal savings by modernising public sector services with cloud-based AI and deep tech innovations.
- EU Member States must avoid artificial sovereignty restrictions and instead create security frameworks that allow both European and global vendors to compete on equal footing.
- A centre-led EU global multi-cloud procurement model can strike a balance between robust oversight and localised decision-making, preventing vendor lock-in while ensuring that public institutions maintain control over data and security.
- Fostering global partnerships is essential, as numerous countries outside the EU have demonstrated the effectiveness of citizen-centric e-government solutions. By embracing best practices from these global leaders, the EU Member States can enhance digital public services and drive innovation in government technology.
True sovereignty is not about exclusion – it is about securing control over data while maintaining access to global technological advancements. Europe’s digital transformation must be driven by a cloud-agnostic, market-driven approach, preventing bureaucratic delays and restrictive EU policies from hindering the modernisation of public services. Beyond procurement reforms, successful cloud adoption also requires a cultural shift within public institutions, with comprehensive training and industry collaboration.
As ECIPE’s latest multi-cloud research shows, an open, flexible, and competitive approach to ICT procurement is by far the best way to strengthen Europe’s native digital capacities. Strict Buy European rules, by contrast, are not just economically inefficient – they also slow down technology adoption, limit diffusion, and weaken resilience. In the long run, this makes it harder for Europe to keep pace in a fast-changing global tech landscape.