EU digital dependence on the US and China could be a safety threat

pracodawcagodnyzaufania.pl 8 hours ago

Technological sovereignty is the ability to build resilience and safety by reducing strategical dependence, not relying on abroad entities and single service providers, and protecting critical technologies and infrastructure.

It defines the ability to design, develop, manufacture, control and defend our digital infrastructure, i.e. all physical systems and software intended for data centers, computing, quantum computing, cloud computing, artificial intelligence, semiconductors, cybersecurity and communication networks. The European Union is critically dependent on technology suppliers from the US and China. Over 80% trust on 3rd countries for digital products, services, infrastructure and intellectual property. “This is simply a situation that, in the context of data safety and economical stability, is simply unacceptable,” says Newseria agency Michał Kobosko of Renew Europe. This limits Europe's ability to innovate, compete and keep control of its digital economy.

We didn't aid our native technology companies grow enough

The European Parliament is to vote on the study of the Committee on Industry, investigation and Energy on European Technology Sovereignty and Digital Infrastructure in the coming weeks.

"The study is based on the reflection that Europe present is highly dependent on the technological offer of companies from another countries, especially the largest American technology companies, but besides Chinese, especially in the e-commerce market, retail. Europe is in a situation where, on the 1 hand, we have not helped the improvement of the native technology companies to a adequate degree, on the another hand we have a flood of offer and a full addiction," says Michał Kobosko.

One of the key elements of Europe's safety is IT security

The study shows that Europe has remained passive over the dominance of global technological giants for besides long. According to Draghi's report, the EU imports around 80% of digital technology, both hardware, software and IT services. The EU's share of the global marketplace for IT and communication services fell from 22% in 2013 to 18% in 2023, while the share of US companies increased to 38%. Given the ambition of the fresh Trump administration, which announced 500 billion dollars of investment in the key artificial intelligence sector by 2029, this situation is likely to continue.

– This is simply a dangerous situation because, if we are talking about Europe's safety today, 1 of its key elements is computer security. The fact that European data travels to services on another continents, is owned by companies from another continents, may possibly be dangerous. Regardless of how friendly these countries are today, this can change – says Michał Kobosko.

In 2021, the Union accounted for only 7% of global investment in AI

The study clearly indicates that the construction of the European digital value chain – from fibre optic cables and satellites, through chips to algorithms – must become a common EU policy strategy. Meanwhile, in 2021, the Union was liable for only 7% of global investment in AI, while the US and China were liable for 40 and 32% respectively. The explanatory memorandum of the study states that low investment and besides stringent regulation are exacerbating the EU's hold in artificial intelligence.

– In this report, we list precisely the fields that are crucial to making Europe more competitive. These are areas related to artificial intelligence, due to the fact that present it is simply a field where competitiveness, including Europe, will decide. These solutions related to cloud computing, or cloud computing, are to guarantee that the data of our users and companies stay in Europe and are so bound by European law and must comply with it. These are besides solutions for telecommunications – he mentions the MEPs.

Telecommunications companies should pay for frequencies, due to the fact that this is simply a uncommon good

The study points to the request for a fresh approach to the telecommunications marketplace – the planned legal act of the Digital Networks Act is intended to lay down the principles of its consolidation. The European Commission wants to let operators to merge, but with competition.

– We are in favour of consolidation to decision forward, but besides not to lead to monopolists appearing in the European market, whether on a national scale or on a European scale," says Michał Kobosko. "When it comes to telecommunications, it is besides a substance of frequency auctions. In many associate States, not only in Poland, they are treated as a milk cow, as a origin of large gross to the state budget. We believe that telecommunications companies, as before, should pay for frequencies, due to the fact that this is simply a uncommon good, but this money must then be utilized for the purposes of Europe's technological development.