Tech Sovereignty Strategy: EU Combines Regulation with Industrial Defense

The European Union is pivoting from a reliance on regulatory leadership to a comprehensive strategy that integrates long-term industrial policy with resilience instruments to safeguard its technological sovereignty. Experts argue that regulation alone is insufficient to defend European sovereignty in an increasingly hostile geopolitical environment where external powers leverage technological dependencies [3]. The new approach requires capabilities to reduce dependencies, safeguard democracy, and strengthen the EU's technological base against coercion [3].

The first pillar of this strategy focuses on developing a European technological and industrial base, known as "Eurostack," in areas where external dependence creates economic or security risks [3]. This involves massive investment in semiconductor production, domestic energy resources, and critical digital infrastructure to ensure the bloc can operate independently during global disruptions [2]. By building this base, the EU aims to mitigate the risks of being pressured into regulatory changes by foreign powers [3].

Beyond industrial development, the strategy includes instruments of deterrence against technological coercion and strengthened protection of the democratic space against digital interference [3]. This dual approach ensures that the EU not only builds its own capabilities but also actively defends them against external threats. The integration of these elements is designed to create a robust defense system that can withstand the pressures of the new geopolitics of technology [3].

This shift reflects a broader recognition that the EU faces an existential challenge in the face of global technological competition and coercion [3]. By combining industrial policy with resilience and deterrence, the EU is signaling its intent to become a self-reliant global power capable of defending its own technological and democratic interests [3]. The strategy is a direct response to the growing trend of technological coercion and the need for a unified European front in the digital age.