Overview
- The European Commission presented the new digital sovereignty package on Wednesday, June 3, opening negotiations on laws and measures to boost on‑continent chips, cloud and AI infrastructure.
- The proposals center on two legislative pillars: a Chips Act 2.0 to expand European semiconductor production and a cloud and AI regulation to encourage local data centers and services.
- Brussels would press public procurement to favour suppliers that meet 'sovereignty' criteria and push wider use of open‑source software in administrations to reduce reliance on foreign platforms.
- Commission documents say the EU depends on non‑European suppliers for more than 80% of its digital products and infrastructure and a study cited estimated U.S. firms hold roughly 83% of the European cloud and software market, costing about €264 billion a year.
- Officials and member states warn the moves could strain transatlantic ties and prompt retaliation from President Donald Trump while proponents say stronger EU capacity would protect hospitals, power grids and citizens' data from sudden foreign service cuts.