The European Union’s push for digital sovereignty risks hampering innovation and economic growth if it moves too quickly to replace U.S. technology, Siemens CEO Roland Busch has warned. Speaking to the Financial Times, Busch argued that throttling the adoption of existing advanced tools, particularly in artificial intelligence, to build separate European infrastructure would be a “disaster” for the bloc.
The warning comes as the European Commission prepares a tech sovereignty package for late May, focused on developing cloud infrastructure and bolstering the EU’s AI sector. The initiative aims to reduce reliance on U.S. digital services amid heightened transatlantic tensions following Donald Trump’s return to the U.S. presidency. Busch advocated instead for using current tools to stimulate growth while gradually building domestic capabilities. “You should not throttle your innovation speed for the sake of creating sovereignty,” he stated, cautioning that the EU could fall further behind in the global AI race.
Busch identified excessive regulation and delays in AI deployment as critical obstacles. He contrasted the U.S. approach, describing its economy as a “fast-flowing river” embracing AI, with Europe’s ecosystem, which he likened to “standing water.” He called the EU’s regulatory stance “miscalibrated,” suggesting it would slow technological advancement and economic momentum.
This tension sits within a broader context of the EU’s assertive digital policy. The European Parliament adopted a resolution in January urging preference for European tech in public procurement and support for local cloud providers. In recent years, Brussels has enacted a suite of regulatory laws, including the AI Act, the Digital Markets Act (DMA), and the Digital Services Act (DSA). Initiatives like the European Chips Act also target semiconductor production and data transfer oversight.
These measures have drawn consistent criticism from U.S. officials. The Office of the U.S. Trade Representative has warned that EU rules could disadvantage American companies, potentially triggering retaliatory trade measures. Specific concerns focus on the enforceability of the AI Act beyond European borders and the potential for discriminatory application of existing regulations.
The debate highlights a fundamental strategic divergence: the EU’s prioritization of regulatory control, ethical standards, and strategic autonomy versus industry leaders’ calls for rapid adoption of global best practices to maintain competitiveness. As the EU advances its sovereignty agenda, the balance between regulatory ambition and innovation speed remains a pivotal challenge for the bloc’s digital future.
