MEPs’ proposals to boost European technological sovereignty and digital infrastructure

calls to step up investments and regulatory reforms to enhance innovation

EU depends on third countries for over 80 % of its digital products, services, infrastructure and intellectual property

the shift in the geopolitical landscape is an opportunity for European products and services

European Digital Public Infrastructure should cover semiconductors, connectivity, cloud and AI

MEPs calls for substantial investments and regulatory reforms to foster innovation and address Europe’s dependency on foreign technologies.

The report adopted on Tuesday by the Industry, Research and Energy committee calls for a comprehensive European industrial policy for the digital ecosystem, covering standardisation, R&D, market access, investment, international cooperation and trade. MEPs advocate the development of a risk assessment framework to monitor and address dependencies in the digital value chain.

The report also proposes the establishment of a European Digital Public Infrastructure (DPI), covering technologies such as semiconductors, connectivity, cloud infrastructure, software, data and AI. MEPs call for a base layer for DPI and recommend allocating appropriate funding in the next Multiannual Financial Framework (MFF), with investment focused on areas such as high-performance computing, quantum computing, connectivity, cloud, AI ecosystems and digital libraries.

MEPs also highlight the strategic importance of critical digital infrastructure, including cables, cellular towers, satellites, data centres, and spectrum. These should fall under European jurisdiction and comply fully with EU law. They call on the Commission to propose legislation addressing risks from high-risk vendors from third countries.

MEPs support forthcoming initiatives such as the Digital Networks Act and the Cloud and AI Development Act. They call for a more holistic view on digital infrastructure that includes numerous elements beyond pure connectivity. They also highlight the need to scale up public-private investment tools, improve access to funding for start-ups and scale-ups in critical technology sectors, and the importance of public procurement to support open and interoperable digital solutions.

Quote

"Over the past few months, I have had the opportunity to meet with many experts and entrepreneurs. Their testimonies on overregulation, energy prices, and barriers to private investment have enabled me to develop concrete proposals," said rapporteur Sarah Knafo (ESN, France). "These include lifting barriers to private investment in innovation, deregulating, and enhancing the security level of data hosting to protect us from foreign interventions."

"It is also crucial to relocate the hosting of sensitive data to Europe, to support our businesses in public procurement instead of scattering ineffective subsidies, and finally, to achieve competitive electricity by eliminating anti-nuclear rules from the European electricity market" she added.

Next steps

The non-binding report was adopted with 63 votes to 5, with 10 abstentions, with a compromise amendment tabled by the EPP, S&D, Renew and Greens/EFA groups. It will be put to a vote by the full House in a forthcoming plenary session.

Background

Amid the ongoing shift in the geopolitical landscape, MEPs see a window of opportunity to position Europe as a global leader in trusted and secure digital solutions.

The report defines technological sovereignty as the European Union’s capacity to design, develop and scale digital technologies necessary for economic competitiveness, public welfare, and open strategic autonomy. It notes that the EU relies on third countries for over 80% of its digital products, services, infrastructure, and intellectual property.

MEPs point to the concentration of power in a small number of global companies across key digital sectors, including operating systems, computing, cloud services, artificial intelligence, search, digital advertising, and online payments. They highlight that the EU is at risk of not meeting its Digital Decade targets, including in areas such as cloud adoption, big data and AI.