EU Commission Cloud Contract: Reducing Dependence on Non-European Technology

What happened: The European Commission is actively reducing dependence on non-European technology, particularly in the cloud sector. On April 17, it awarded a €180 million cloud contract to four European providers. The ECB, on May 24, signed agreements with European standard-setting bodies to build the digital euro on open, non-proprietary infrastructure, challenging Visa and Mastercard's dominance. Meanwhile, the EU Commission proposed new rules on June 2 to bolster European tech sovereignty in chips, AI, and cloud services.

Market impact: European cloud providers like Atos, T-Systems, and Deutsche Telekom benefited from the €180 million contract. The ECB's move threatens Visa and Mastercard's market share in the eurozone. The EU's tech sovereignty push could reshape global tech supply chains, with potential costs exceeding €400 billion for the bloc, according to a Chinese study. European companies may face increased competition and regulation.

What to watch next: On June 23, the EU Parliament will vote on the proposed tech sovereignty rules. On July 22, ASML reports Q2 earnings, which could provide insights into European tech demand. Additionally, monitor the EU's progress in phasing out Chinese green tech, with a focus on the upcoming COP26 climate summit in November.