Europe’s digital sovereignty: From rulemaker to superpower in the age of US-China rivalry

Summary:

• COVID-19 has revealed the critical importance of technology for economic and health resilience, making Europe’s digital transformation and sovereignty a question of existential importance.
• Rising US-China tensions are an additional incentive for Europe to develop its own digital capabilities; it risks becoming a battleground in their struggle for tech and industrial supremacy.
• Democratic governments – keen to preserve an open market in digital services while protecting the interests of citizens – find the European model an increasingly attractive alternative to the US and Chinese approaches.
• The EU cannot continue to rely on its regulatory power but must become a tech superpower in its own right. Referees do not win the game.
• Europe missed the first wave of technology but must take advantage of the next, in which it has competitive advantages such as in edge computing.
• EU member states lack a common position on tech issues or even a shared understanding of the strategic importance of digital technologies, such as on broadband rollout or application of AI.

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