Europe’s digital crossroads: Build walls or build strength?

Monday, 2 March 2026.

By Carolina Costa, Head of Policy, Red Flag

Heightened geopolitical tension is reshaping Europe’s digital policy debate. Concerns about technological dependence, supply chain disruption and geopolitical leverage are no longer abstract. They are influencing concrete proposals in Brussels and across European capitals.

Recently, I co-organized a roundtable with the Centre for Information Policy Leadership (CIPL) and Women4Cyber to discuss Europe’s digital resilience. Around the table sat policymakers and industry leaders. The mood was serious. Europe faces mounting cyber threats, geopolitical uncertainty and legitimate concerns about technological dependence.

What emerged clearly from that discussion was this: resilience is essential, but the way Europe pursues it will determine whether it strengthens or weakens its long-term competitiveness.

Competitiveness cannot be an afterthought

Europe’s economic growth depends on technological advancement. The Commission’s Competitiveness Compass, aligned with the Draghi Report, recognises the urgency of closing the innovation gap and restoring productivity. That objective requires faster technology adoption, greater investment and access to cutting-edge tools.

At the same time, the digital sovereignty debate is gaining momentum. Proposals such as the development of a “EuroStack” and calls for mandatory “buy European” procurement requirements aim to build local capacity along digital value chains. The strategic instinct is understandable.

But capacity-building and isolation are not the same thing.

Europe already faces a substantial investment gap. The European Centre for International Political Economy (ECIPE), in its study “The EU’s Trillion Dollar Gap in ICT and Cloud Computing Capacities,” estimates that Europe has a massive shortfall in ICT and cloud infrastructure compared to global leaders. Attempting to close this gap solely through duplication, rather than through partnership, would be extraordinarily costly and time-consuming.

In addition, the Chamber of Progress estimates that constructing a fully independent European technology stack could exceed €5 trillion. Those are resources that could otherwise be directed toward research, skills, startups and next-generation innovation.

Resilience through bridges, not walls

Zero-dependence in a globally integrated digital economy is neither realistic nor desirable. Resilience does not come from cutting ties with trusted partners. It comes from diversification, standards, interoperability and strategic investment at home.

If Europe responds to geopolitical tensions or tariff threats by raising trade barriers against trusted partners, such as U.S. technology firms, or introducing restrictive sovereignty requirements, it risks undermining its own competitiveness. EU companies are not merely consumers of foreign technology. They are innovators who rely on global AI models, advanced processors and cloud infrastructure to develop industrial solutions and compete worldwide.

Disrupting access to best-in-class digital services would slow AI adoption at precisely the moment Europe needs it most to restore productivity and growth.

This is not a choice between sovereignty and cooperation. It is a question of how sovereignty is achieved. Durable sovereignty is built by strengthening Europe’s capabilities while maintaining the partnerships that enable innovation.

In times of political strain, the temptation is to build walls. The smarter course is to build bridges, reinforcing Europe’s technological base while preserving the openness that supports growth, security and shared resilience.

Pragmatism is not a weakness. In this geopolitical moment, it is Europe’s strongest strategic asset.