Europe under pressure to act: digital sovereignty in the public sector

Current geopolitical tensions are intensifying the call for greater digital independence in Europe. This also applies to public institutions and administrations. But how can digital sovereignty be implemented in European authorities at all levels, and what role does the European Union (EU) play in this?

In our current interview with Jana Gaulke, head of Bitkom's Brussels office, and Esther Steverding, Bitkom's public sector consultant, we get to the bottom of these and other questions.

In view of the current geopolitical shifts, what technological and economic policy changes can Europe expect in the coming years?

Jana Gaulke: "In a geopolitically fragile situation and an increasingly shaky transatlantic partnership, the EU will increasingly place digital sovereignty at the centre of its strategic orientation. The EU perceives dependence on non-European tech companies as a risk. These dependencies extend to a variety of critical areas, including cloud infrastructure, semiconductor production, cybersecurity applications and components for 5G networks. The EU is increasingly recognising that such dependencies can be used as potential geopolitical leverage. A prominent example of this was the use of Starlink by SpaceX to support Ukraine in the context of Russia's war of aggression, which highlighted the geopolitical influence of private companies. In the face of these developments, the EU is setting its political and economic agenda to strengthen its own digital infrastructure and become less dependent on external non-European actors."

How is the EU preparing for these changes?

Jana Gaulke: "The EU is actively promoting initiatives and investments that contribute to strengthening European sovereignty. These include, for example, GAIA-X, which aims to create an interoperable cloud infrastructure for Europe. In addition, corresponding laws such as the European Chips Act are intended to promote investments in the production of key technologies within Europe. In addition to strengthening its own digital capacities, an important aspect is the diversification of supply chains. In the face of geopolitical tensions and global crises, dependence on individual suppliers is increasingly seen as a risk. The EU is promoting the creation of alternative supply chains for digital components to strengthen its resilience and maintain strategic independence. In addition, the Commission wants to focus on the ‘Buy European’ approach. This means giving preference to European products and solutions over non-European products in public procurement. In a globalised tech world, however, this approach is difficult to implement. Instead, objective criteria, such as security-related ones, should be cited in specific procurement procedures. There are already various regulatory provisions, particularly in the security and defence sector, that allow for a more targeted selection and exclusion of candidates and bidders."

What significance does the topic of ‘digital sovereignty’ have for public institutions and administrations within Europe?

Esther Steverding: "The topic of digital sovereignty is also becoming increasingly important for the public sector. What can this mean for public administration? Here is a brief example:
At the end of 2022, beginning of 2023, we experienced an energy crisis in Germany. We were extremely dependent on cheap Russian gas. It became obvious that we were not sovereign here in terms of our energy security. We reacted quickly and avoided major chaos and cold homes in winter. This image of dependency can also be applied to digital sovereignty. We have to consider what we can do to remain digitally capable of acting in the worst-case scenario and not end up in a ‘digital shortage’. And this is precisely what public administrations and many other stakeholders are currently working on, increasingly asking themselves what they can do to act with digital sovereignty. In this context, sovereignty does not just mean being in control of your own data."

What measures can European authorities and municipalities take to strengthen their digital sovereignty?

Esther Steverding: "Digital sovereignty encompasses several dimensions, so there is no single measure that should be taken to achieve digital sovereignty. There are several measures that, when implemented, lead to digital sovereignty. For example, government institutions are increasingly relying on the use of open source software to gain insights into the source code. Another measure is to diversify suppliers and supply chains in order to avoid becoming dependent on a few suppliers. Continuous training of employees is also one of the necessary activities. Promoting European GovTech start-ups is another factor. The goal of storing data in one's own country and in Europe, and not in data centres in third countries, is also a hot topic of discussion. Only a bundle of different measures will ensure that our state and its organisations remain capable of acting."

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