Europe must build its own digital future, EuroStack report urges
New blueprint calls for €300 billion investment to transform Europe into "a global leader in values-driven, sustainable digital innovation".
Published on April 28, 2025
© EuroStack
Bart, co-founder of Media52 and Professor of Journalism oversees IO+, events, and Laio. A journalist at heart, he keeps writing as many stories as possible.
Europe must act swiftly to reclaim control over its digital future, according to the recently released EuroStack report commissioned by the Bertelsmann Stiftung. The report, authored by Francesca Bria, Paul Timmers, and Fausto Gernone, outlines a bold vision for building a European digital ecosystem rooted in sovereignty, sustainability, and democratic values.
“The time has come for Europeans to take decisive steps toward building an interconnected digital future on their own terms,” the report’s authors warn. At a time when over 80% of Europe’s digital infrastructure and technologies are imported, the EuroStack initiative aims to reduce systemic dependencies on foreign providers and strengthen Europe’s strategic autonomy.
Martin Hullin, Director of Digitalization and the Common Good at the Bertelsmann Stiftung, emphasizes the stakes: “The EuroStack vision presents a tangible pathway for Europe to reduce its technological dependence, enhance its strategic autonomy, and lead in values-driven innovation.”
The initiative comes amid growing concerns that Europe’s reliance on non-European technology giants threatens not only its industrial competitiveness but also its democratic resilience and social cohesion.
A digital "Moonshot" for Europe
At the heart of the EuroStack proposal is a call for a €300 billion investment over the next decade to develop Europe’s own technology stack—from semiconductors and cloud infrastructure to sovereign AI platforms and federated data spaces.
Lead author Francesca Bria describes the project as nothing short of transformational: “Europe’s sovereignty demands a tech leap: Build EuroStack now. [...] EuroStack is our moonshot – the digital evolution of the euro and Single Market.”
Bria calls for the creation of an EU Sovereign Tech Fund, a stronger focus on "Made-in-Europe" standards, and strategic public-private partnerships to foster homegrown innovation while curbing the dominance of foreign monopolies.
Without such measures, the report argues, Europe risks surrendering its economy and digital infrastructure to foreign powers, increasing its vulnerability to algorithmic manipulation and undermining its climate and social goals.
Moving beyond incremental change
The report also makes clear that incremental reforms will no longer suffice. Professor Mariana Mazzucato, Founding Director of the UCL Institute for Innovation and Public Purpose (IIPP), urges a mission-driven approach: “The EuroStack report is a powerful call for Europe to move beyond incrementalism and embrace a mission-driven approach to digital sovereignty.”
Governments, Mazzucato argues, must forge closer, symbiotic partnerships with the private sector—but with strict conditionalities to ensure private investment aligns with Europe’s goals for sustainability, inclusivity, and industrial competitiveness.
Among the recommendations: strategic investments in sovereign AI and cloud platforms, fostering open-source technologies, building interoperable digital public infrastructures such as a European Digital Identity Wallet, and creating new standards for digital citizenship and privacy.
Why the EuroStack matters now
Andrea Renda, Director of Research at the Centre for European Policy Studies (CEPS), points to the urgency of the situation: “European leaders are slowly realizing that our industrial future, as well as our democracy and social cohesion, increasingly depend on Europe’s ability to rely on a trustworthy technology stack.”
The risks are clear. With the United States and China dominating foundational technologies like AI, cloud services, and microchips, Europe’s innovation gap continues to widen. Structural barriers also prevent European tech startups from scaling, and critical industries remain exposed to geopolitical disruptions.
Without a strong internal digital infrastructure, the report warns, Europe faces job losses, diminished value creation, technological dependence, and an erosion of democratic control over sensitive information.
A federated, values-driven model
Unlike U.S. or Chinese models of centralized control, the EuroStack initiative proposes a federated and decentralized approach, leveraging Europe’s diversity while maintaining strategic coordination.
Carla Hustedt, Director at the Centre for Digital Society at Stiftung Mercator, underlines the importance of building from a position of strength: “Europe needs its own digital ecosystem to safeguard its values and democracies. This can only be achieved from a position of economic independence and strength.”
The proposed EuroStack infrastructure includes key pillars such as EuroChips (homegrown semiconductor production), SovereignCloud (secure European cloud services), SmartEurope IoT networks, DataCommons for federated data sharing, and SovereignAI services.
These elements would collectively create a resilient ecosystem where citizens, businesses, and governments alike can rely on European-made solutions that prioritize transparency, privacy, and public interest innovation.
A roadmap for immediate action
The report calls for a coordinated European effort, starting with the launch of the EuroStack Challenge—an open competition to fund the development of minimum viable digital products in strategic sectors such as healthcare, mobility, and smart manufacturing.
In parallel, the proposed European Sovereign Technology Fund would prevent the loss of critical tech assets to foreign acquisitions and support strategic investments in next-generation technologies like quantum computing, AI, and energy-efficient cloud services.
In closing, the EuroStack report paints a vivid picture of what is at stake: Europe can either remain a technological follower, vulnerable to the strategic interests of others, or it can reclaim its digital destiny. With decisive action, the EuroStack authors believe, Europe can transform itself into a global leader in values-driven, sustainable digital innovation.