Time to build a European digital ecosystem

Policy Study

The beginning of the new EU mandate means the closure of a very productive legislature in the digital domain. Landmark regulations such as the Digital Services Act (DSA) and the Digital Markets Act (DMA) have reshaped the EU’s digital landscape, while Europe was the first to legislate artificial intelligence (AI). Now, the European Union is at a crossroad in its digital transformation. Geopolitical tensions and growing reliance on foreign tech giants underscore the urgent need for greater technological sovereignty.

The policy study ‘Time to build a European ecosystem’ outlines critical steps for the EU to reduce digital dependencies and create a resilient, autonomous, and socially inclusive digital framework. The study emphasises the importance of enforcing existing digital regulations and creating a European Digital Industrial Policy (EDIP) to drive innovation and secure European values. 

The new European Commission will have to ensure digital gatekeepers like Google and Meta comply with existing legislation – and enforce them when needed. Critical recommendations for the new EC focus on creating a unified digital industrial strategy, including developing a ‘EuroStack’, a European technology framework encompassing hardware, infrastructure, AI, data, and governance.

Public institutions should lead by adopting European-made technologies, setting standards, and investing in crucial infrastructure. A strengthened digital commons model, including open and interoperable systems, can help counter Big Tech’s monopolistic control and ensure inclusivity and sustainability in digital governance.

The study also stresses the need for sustainable AI development, calling for energy-efficient, renewable solutions to meet the growing demands of AI applications. Public investments in AI must be tied to societal benefits rather than competing with Big Tech. A progressive AI regulation approach should foster fair competition and democratic decision-making while promoting innovation across European AI value chains.

Effective enforcement of EU digital rules is paramount. The study highlights the importance of enforcing regulations like the Digital Services and Markets Acts and GDPR, particularly around algorithmic transparency and the protection of users’ data. The EU must also address the accountability of algorithmic management at work, ensuring that workers’ rights are protected through social dialogue and transparent decision-making processes.

Achieving digital sovereignty requires a strategic overhaul. Legislative measures must be paired with capacity building to advance a digital future that reflects European values of fairness, sustainability, and innovation.

This policy study was launched at FEPS HQ and at the European Parliament on 14 January 2025.