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This week the European Commission unveiled its Tech Sovereignty Package. While the Package’s energy proposals mark a significant step forward for EU energy resilience, the Cloud and AI Development Act (CADA) proposal overlooks the reality of global technology supply chains and introduces significant legal uncertainty and fragmentation for businesses.

The central question for the Tech Sovereignty Package is how to build resilience without undermining competitiveness. Concerns around overdependence on a limited number of providers, the risk of external disruption to service continuity and the long-term position of the EU’s digital industries are all legitimate. However, greater sovereignty will only be sustainable if it is built on a competitive, diverse and innovative digital ecosystem. The technologies that underpin the global digital economy are developed through highly international supply chains, with innovation spread across multiple markets.

Viewed through this lens, the individual proposals in the Package vary in the extent to which they reinforce resilience while preserving openness and competitiveness. In particular, the proposed CADA risks discriminating against providers that rely on global supply chains – both those based in Europe and those in third countries – even where they offer superior resilience.

‘An origin-based approach is too blunt for such a complex global market’, said Malte Lohan, CEO of the American Chamber of Commerce to the European Union, commenting on the Package.

‘A more credible path to achieving greater resilience and control in such an interconnected landscape is to define sovereignty in terms of outcomes: secure and reliable technologies, customer choice, strong safeguards against undue interference and a business environment that supports investment and growth. That points to a risk-based framework where the EU is open to working with trusted partners. This trust should be assessed on the basis of objective standards rather than origin alone’, Mr Lohan added.

Last year alone, US technology firms operating in Europe and their supply chains supported €1.0 trillion in EU GDP, equivalent to 5.4% of total output. The scale of this contribution underscores the need for the EU to preserve an open environment with legal clarity and proportionality in any restrictions or safeguards that would impact commercial operations.

The Package’s Strategic Roadmap for Digitalisation and AI in energy is a positive step that could help unlock the benefits of digitalisation for Europe’s energy needs, enabling faster and more flexible grids. Digitalisation provides new opportunities to strengthen the reliability and resilience of energy systems. If executed well, the roadmap could support the growing demand of Europe’s digital and AI sectors for low-carbon energy.

Ultimately, the importance of the Tech Sovereignty Package extends well beyond the technology sector itself. Manufacturers, healthcare and life sciences, financial services, mobility, energy and retail all increasingly depend on access to advanced digital technologies to innovate and compete. For the Tech Sovereignty Package to support these sectors, it must ensure companies in Europe continue to benefit from economic openness.

The Digital Networks Act (DNA) can help the EU build a more coherent connectivity framework for businesses operating across borders. Today, fragmented rules and complex compliance obligations continue to hold back innovation and Europe’s competitiveness.

To this end, the DNA must reduce – not add to – regulatory complexity, ensure legal certainty and avoid duplication with existing EU legislation. It should support investment in next-generation networks while avoiding duplication with existing EU frameworks. Clear scope will be essential to prevent unintended overlap with cloud, content delivery networks or private networks.

Read more on how the DNA can support Europe’s digital transition and long-term competitiveness.

Intel has called Ireland home since 1989, investing more than €30 billion and supporting 4,900 jobs. Alongside this long-term commitment, the company is helping strengthen local communities through its Signature Charity initiative. For the past 16 years, the Intel Foundation and Intel employees have selected a charity each year to support through volunteering and fundraising. In 2025, Intel Ireland chose Teach Tearmainn, the only organisation in County Kildare dedicated to supporting women and children experiencing domestic violence and abuse. Through fun runs, cycling events, a triathlon, a giving campaign, employee-led fundraising and recycling initiatives, Intel employees raised €80,000 for the charity – the company’s largest charity donation to date. These efforts show how long-term investment, employee engagement and community partnerships can help deliver meaningful support where it is needed most. Read the full story on Invested in Europe.