Critique of EU’s Tech Sovereignty Package and Protectionism

The European Commission unveiled the Tech Sovereignty Package on June 3, 2026, proposing measures (including the Cloud and AI Development Act and Chips Act 2.0) intended to reduce dependence on American technology.

• Main announcement: The EU’s Tech Sovereignty Package (announced June 3, 2026) includes the Cloud and Artificial Intelligence (AI) Development Act (which would bar non-European providers from some sensitive public contracts), Chips Act 2.0 (focusing on demand generation for domestic chipmakers), and a target to triple data center output within five to seven years; the Commission notes only one percent of public services are sufficiently sensitive to justify excluding foreign providers.
• Background and detail: The article argues Europe relies on U.S. cloud companies (about 70 percent of the EU cloud market) and produces only 10 percent of the world’s semiconductors; it warns the package risks protectionism, may undermine transatlantic cooperation (including the EU joining Pax Silica), and highlights related frameworks such as the Strategic Roadmap for Digitalization and AI in the Energy Sector (permit streamlining, electricity access, government funding) needed to support data center expansion.