European technology giants, including Airbus Group and Dassault Systèmes, along with over 90 other European technology companies and industry groups, have called on European Commission President Ursula von der Leyen to create a sovereign wealth infrastructure fund. This collaborative effort aims to lessen the EU’s dependence on external operators and foster greater domestic growth.
In a joint letter issued on March 14th, the coalition underscored the importance of maintaining strategic autonomy in crucial sectors and increasing public investment in advanced technologies, such as artificial intelligence (AI) and semiconductors. “Europe needs to regain control and become more technologically self-sufficient across all aspects of its critical digital infrastructure,” the letter stated, as reported by Reuters. This includes everything from logical infrastructure like applications and AI frameworks to physical infrastructure such as chips and connectivity.
The letter, also addressed to EU chief technology officer Henna Virkkunen, received support from a diverse group of organizations. These included French cloud service provider OVH Cloud, the European Software Institute, the European Startup Network, the German Association for Artificial Intelligence, the Amsterdam Internet Exchange (AMS-IX), and French public investment bank BPI France.
The group emphasized that Europe’s existing dependencies pose a risk to its security, sovereignty, and economic growth. “Europe’s current multiple dependencies create security and reliability risks, compromise our sovereignty and hurt our growth,” the tech firms asserted.
Further, the coalition proposed a “European buy” policy in public tenders to stimulate demand and encourage domestic investment. The aim, they explained, is “not to exclude non-European players, but to create space where European suppliers can legitimately compete (and justify investment).”
This initiative arises amidst recent policy shifts in other regions, particularly the US Inflation Reduction Act, which prioritizes domestic production. This act has triggered concerns within Europe about potential trade barriers and investment shifts away from European industries. The US legislation also centers on clean energy and industrial policy, intensifying the pressure on Europe to bolster its green investments and industrial capabilities.
Europe has consistently increased its investments in energy independence and sustainability to reduce its dependence on external sources, especially in light of rising geopolitical tensions. In February, the European Commission announced the allocation of over €100 billion to support clean production within the EU via a new Clean Industrial Deal. This deal seeks to accelerate decarbonization and ensure the competitiveness and resilience of energy-intensive industries like steel, metals, and chemicals, alongside the clean technology sector.
The EU’s Critical Materials Act and Zero Emission Industry Act further aim to solidify Europe’s industrial and environmental resilience in strategic sectors, including renewable energy, digital technologies, and aerospace, reducing dependence on single-country suppliers through import diversification and boosting national supply chains.
