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DRAFT REPORT (2025/2007(INI))

On European technological sovereignty and digital infrastructure

ITRE-PR-768180

Committee on Industry, Research and Energy · Rapporteur: Sarah Knafo

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Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

This draft report on European technological sovereignty and digital infrastructure calls for reducing dependence on foreign technologies, reforming public procurement, boosting private investment, easing regulation, and reforming the electricity market.

Committee position. The rapporteur proposes a resolution calling for measures to achieve technological sovereignty, including procurement reform, investment incentives, deregulation, and energy market reform.

Key points

  1. Recalls that technological sovereignty is a fundamental pillar for the EU's competitiveness, security and strategic independence.
  2. Notes that heavy reliance on foreign technologies exposes Europe to legal, economic and security risks.
  3. Expresses concern that European businesses struggle to compete with US and Chinese companies in strategic sectors such as cloud, cybersecurity, AI, semiconductors and communication infrastructure.
  4. Regrets that European regulations increase administrative burden and costs for local businesses without effectively counteracting the domination of foreign giants.
  5. Reiterates that sensitive data should be hosted in sovereign infrastructure, protected from foreign extraterritorial laws.
  6. Stresses the urgency of reforming European public procurement to allow Member States to restrict strategic procurement to European companies meeting sovereignty criteria.
  7. Calls on the Commission to align the 'high' level of the European Cybersecurity Certification Scheme for Cloud Services (EUCS) with SecNumCloud certification requirements to ensure hosting providers are not subject to extra-European legislation.
  8. Urges the Commission to facilitate 5G roll-out by relaxing conditions on concentration of firms to encourage infrastructure sharing.
  9. Calls on the Commission and Parliament committees to promote public-private partnerships and ease access to private financing for European technology companies.
  10. Calls for allowing life insurance and pension funds to invest in strategic sectors and for reducing regulation that makes risky assets less attractive.
  11. Requests review of the IPCEI framework to include exemptions for strategic mergers and acquisitions responding to sovereignty issues.
  12. Calls on the Commission to remove two regulations for each new regulation in strategic sectors, and to reform the electricity market by ending the merit order mechanism and re-establishing nuclear power for competitive, stable electricity.

Who is affected

  • European technology companies in cloud, cybersecurity, AI, semiconductors and communication infrastructure would benefit from easier financing and procurement opportunities.
  • Member States would be allowed to restrict strategic public procurement to European companies meeting sovereignty criteria.
  • Cloud service providers would face stricter certification requirements aligned with SecNumCloud.
  • Life insurance and pension funds would be encouraged to invest in strategic sectors.
  • Nuclear energy producers would benefit from a reformed electricity market.

Figures and deadlines

  • 92 % of the West's data are stored in the USA.
  • 69 % of Europe's cloud market share is held by US companies, compared to 13 % by European companies.
  • The Union accounts for only 7 % of global investment in AI, compared to 40 % for the USA and 32 % for China.
  • The EU's share of global microchip production is only 10 %.
  • Fibre optic networks cover approximately 64 % of households; 'high quality' 5G coverage extends to merely 50 % of EU territory.
  • One in eight businesses were affected by cyberattacks in 2020; in 2023 this figure reached 58 % in Germany and 53 % in France.

Legal basis: Articles 173, 179 and 190 of the Treaty on the Functioning of the European Union