Key Points:
- The European Commission plans to release a massive technology sovereignty package at the end of May.
- Europe wants to reduce its heavy reliance on American computer chips and massive cloud storage services.
- The European Union will launch a €5 billion fund to offer €100 million investment rounds to local companies.
- Nvidia chief executive Jensen Huang praised Central and Eastern Europe as a major hub for technology talent.
Europe wants to build its own independent technology industry but refuses to cut ties with American innovation hubs. Ekaterina Zaharieva serves as the startup chief for the European Commission. She shared her vision during an exclusive interview at POLITICO’s AI and Tech Week summit. Zaharieva made it clear that building technological sovereignty does not mean Europe will stop partnering with other nations. She wants Brussels to move carefully when leaders present a massive new technology package at the end of May.
This upcoming legislative package carries a very specific goal. The European Commission wants to drastically reduce the extent to which the continent relies on American technology companies. Officials are particularly concerned about critical areas such as computer chips and large-scale cloud storage services. Right now, European businesses depend heavily on foreign companies to store their data and power their artificial intelligence models. The new laws will try to build a stronger local industry to handle these essential tasks.
Despite this push for local independence, Zaharieva insists that Europe must keep its friendships strong across the Atlantic Ocean. She just returned from a major trip to Silicon Valley last week. During her visit, she spoke directly with American technology leaders about the future. She noticed that current geopolitical tensions make global supply chains extremely fragile. However, she also realized these same supply chains remain incredibly complicated. Pulling them apart completely would cause massive damage to everyone involved.
Instead of building walls, the European Union looks outward. The commissioner noted that Europe actively pursues a strategy of building partnerships with countries that share similar values. To do this, the bloc negotiates comprehensive free trade agreements around the world. For example, European leaders currently work closely with India and the Mercosur group of South American nations. Zaharieva stressed that pushing for local technology development absolutely does not mean Europe plans to close its economy to the outside world.
Maintaining strong ties with the United States takes real effort these days. Technology relations between Brussels and Washington grew increasingly tense over the past year. President Donald Trump and his administration frequently lash out against the new technology rulebooks coming out of Europe. Several prominent American technology executives join the president in these loud complaints. They claim the strict European rules impose unfair censorship and intentionally target American companies for massive financial fines.
Zaharieva offered a completely different perspective on these transatlantic relationships. She pointed out that many top American executives still see massive value in working alongside European companies. During her recent trip to the United States, she met with Jensen Huang. Huang serves as the chief executive officer of Nvidia, the world’s most powerful artificial intelligence chipmaker. According to Zaharieva, Huang brought a very positive message about the European technology sector.
The Nvidia boss specifically praised Central and Eastern Europe. He views the region as a massive talent hub that stands strong on its own merits. Zaharieva proudly maintained that raw human talent remains Europe’s greatest strength. She said the entire technology world recognizes this simple fact. Huang told the commissioner that Europe employs the absolute best scientists in research-intensive technology fields. He also assured her that artificial intelligence programs will not replace these brilliant human minds anytime soon.
The European Commission knows it must protect and nurture this valuable talent pool. Officials have several different plans already in motion. They want to ensure European startup founders gain easy access to local funding and a strong customer base so they can scale their operations quickly. To help achieve this, Brussels will soon tweak its government procurement rules. The new rules aim to encourage local and national governments to purchase more software and hardware directly from European startups.
While the Commission wants to encourage local spending, Zaharieva completely ruled out setting hard legal targets for government purchases. She prefers to use financial incentives instead of strict mandates. To fuel this growth, the European Union will soon roll out a massive €5 billion scale-up fund. The European Commission and several large private investors will jointly back this massive pool of money. This fund targets companies that have already survived their early startup phases and now need serious cash to expand globally.
This massive new fund will directly fuel €100 million funding rounds for successful local companies. This specific strategy solves a major problem for the European technology sector. In the past, successful European startups had to travel to Silicon Valley or Asia to secure late-stage investment. By offering these massive €100 million checks at home, the Commission relieves startups of the need to seek foreign cash. Zaharieva expects the new fund to start making direct investments in the next couple of months.
