Since the Nordic, Baltic, and other small European countries banded together in 2016 to create the D9 group, they promoted themselves as pro-tech advocates of an open digital economy. Now, in reaction to Washington’s imposition of punitive tariffs, they are changing gears.
The European Union needs a strategy that increases “tech sovereignty,” the group’s communique from its latest summit in Amsterdam states. To do so, Europe “needs to strengthen its technological capabilities as well as its trade relations.”
The declaration marks a stark contrast with previous positions. Before Amsterdam, the D9+ advocated a pause on new digital regulations and a review of the impact of digital regulation on innovation and competitiveness. New US tariffs on European cars, steel, aluminum, and other products have provoked a dramatic rethink. In retaliation, the EU is weighing measures to hit US digital exports, including those from Silicon Valley companies. “Europe holds many cards,” European Commission President Ursula von der Leyen recently told the European Parliament. “From trade to technology to the size of our market. But this strength is also built on our readiness to take firm countermeasures. All instruments are on the table.”
What specific weapons Europe might use remains unclear. The European Commission is expected to announce new penalties against Meta and Apple for its Digital Markets Act violations in the coming days. Additional potential measures include limiting US companies’ ability to bid on public contracts to a new Anti-Coercion Instrument allowing sweeping moves such as banning US social media platforms, potentially starting with Elon Musk’s X.
The continent is divided on how far to go, waiting to absorb the breadth of US tariffs. France wants strict measures. Italy, under right-wing leader Giorgia Meloni, is cautious. The small D9+ countries – from Finland in the north to Portugal in the South – previously could be counted on to fight for few European-only restrictions.
The latest D9+ communique on “tech sovereignty” could still be read differently. It calls for reducing regulation and promoting Europe’s digital economy, arguing that the EU should boost the development of European artificial intelligence, cloud, and connectivity. But it describes “tech sovereignty in an open manner,” meaning “the ability to act autonomously on the world stage and in line with our values while reaping the benefits of collaboration with global partners when possible.” In other words, promote European digital businesses while working with US partners.
At the same time, the communique also emphasizes that “the EU needs to strengthen its technological capabilities as well as its trade relations, with the goal to mitigate strategic dependencies.” Pressure has been building for the EU to reduce its reliance on the US and build a European technology infrastructure in light of worsening EU-US relations. In March, some 100 European companies, including defense heavyweights Airbus and Dassault, sent a letter to von der Leyen calling for the EU to become “more technologically independent across all layers of its critical digital infrastructure.”
Europe’s next steps require bold investments in research and technology, even as new Washington tariffs threaten to escalate tensions. Tech sovereignty means building up local capabilities so that Europe can negotiate from a position of strength. The communique’s mention of “an open manner” underscores that the EU should seek better terms, not break global ties.
As D9+ governments turn to digital sovereignty, European businesses are turning to digital competitiveness. During the uDutch government’s summit for D9+ digital ministers, the so-called S9+ (S for Startups) hosted an event on ‘Accelerating Europe’s competitiveness.’ It issued a declaration pushing back against “excessive regulation on digital businesses” and stating that “Europe’s excessive and fragmented regulation has become a self-imposed barrier, making scaling for start-ups increasingly difficult.”
The S9+ Declaration highlights five key areas: “AI Competitiveness,” “Balanced Data Regulation,” “Unlocking Growth Capital,” “Preserving data-driven marketing and advertising,” and “Enabling Digital Infrastructure.” Europe controls the ability to take these actions independently. An unanswered question is whether it will manage to find ways to work with Washington or will be forced to go it alone.
William Echikson is a Non-resident Senior Fellow with the Tech Policy Program and editor of the online tech policy journal Bandwidth at the Center for European Policy Analysis (CEPA).
Bandwidth is CEPA’s online journal dedicated to advancing transatlantic cooperation on tech policy. All opinions expressed on Bandwidth are those of the author alone and may not represent those of the institutions they represent or the Center for European Policy Analysis. CEPA maintains a strict intellectual independence policy across all its projects and publications.
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