Europe's path to digital sovereignty: Insights and strategies from the EU summit 2025

One strategic pillar is the creation of more flexible and innovation-friendly data regulation that promotes access to data and technology development in particular. This goal is to be achieved through the EU Omnibus Regulation, which harmonizes and simplifies existing regulations such as the CSRD (Corporate Sustainability Reporting Directive), CSDDD (Corporate Sustainability Due Diligence Directive), the Data Act, and the EU Taxonomy. The simplification of reporting requirements and the relaxation of due diligence obligations are intended to ease the burden on SMEs and start-ups in particular. However, the compliance burden for large companies is also to be reduced, e.g., in the area of due diligence in the context of supply chain regulation.

The EU summit emphasized the importance of public procurement as a further lever for digital sovereignty. The EU and Germany are counting on the state, as a major purchaser of IT solutions, to specifically favor European technologies and thus strengthen “Made in Europe” solutions. This is intended not only to reduce dependence on non-European cloud providers, but also to promote innovation and the development of digital infrastructures with the highest security standards in Europe as a technology hub. At the same time, the promotion of start-ups and SMEs through targeted investments serves as an essential measure to strengthen Europe's innovative capabilities and competitiveness.

Innovation and technological development require suitable infrastructure. That is why the establishment and operation of sovereign infrastructure, particularly in the field of AI and cloud computing, is of strategic importance. As part of the InvestAI-Initiative, the EU is providing around €20 billion for the establishment of AI Giga-Factories, which are to become core infrastructure. Through the AI Giga-Factories, Europe aims to position itself as a leading AI location, strengthen its technological independence, and reduce its dependence on non-European providers. The AI Giga-Factories are intended to serve as open platforms that provide the entire European innovation ecosystem—from large companies to start-ups and research institutions—with access to first-class AI infrastructure.

Cooperation between innovative start-ups and established industrial companies has been highlighted as essential for Europe's technological and economic resilience. These collaborations enable the rapid transfer of innovations into marketable products and services, promote the scaling of start-ups, and at the same time strengthen industry through access to agile solutions and the latest technologies. Synergies between agility and industrial expertise accelerate innovation and enable more flexible, sovereign digitalization. Supported by funding programs, regulatory relief, and platforms such as the EuroStack Catalog, this cooperation is seen as a cornerstone of a sustainable European innovation economy. The EuroStack Catalog serves as a dynamic directory of sovereign European IT solutions and helps public and private buyers easily and transparently identify and use interoperable and EU-controlled technologies.