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Sep 2025
For Henna Virkkunen, Executive Vice-President of the European Commission, digital sovereignty is not about closing Europe off. It’s about giving citizens, businesses, and governments the confidence that the technologies shaping their lives are safe, secure, and built on European values. And in an era when digital power defines global power, that confidence may be Europe’s most important asset of all.
“Achieving technological sovereignty is a must to preserve our competitiveness but also ensure our security and protect our democracy and values,” she stresses.
It’s a clear statement of intent: Europe must be able to build and control the technologies that underpin its future.
Earlier this year, the Commission launched what Virkkunen calls its “overarching strategy” for competitiveness: the Competitiveness Compass. The initiative is designed to bridge Europe’s innovation gap, reduce dependencies on third countries and provide Europe with the tools to lead in critical areas such as artificial intelligence, quantum technologies, semiconductors, and cloud infrastructure.
Concrete steps are already on the table:
But technology alone is not enough. Sovereignty must also be built on trust and interoperability. That’s where European Digital Identity Wallets come in.
“These wallets offer every citizen and resident in the EU a secure and universally recognised means to identify and authenticate themselves, electronically sign documents, and share verified personal information,” Virkkunen explains.
Designed with privacy and security at their core, these wallets are not just digital tools; they are the backbone of a trusted European digital infrastructure. The vision extends further: the EU is also creating European Business Wallets, enabling companies and SMEs to securely share documents and credentials across borders. These wallets will simplify compliance and enhance competitiveness, while strengthening digital resilience and trust in Europe.
Artificial Intelligence is perhaps the greatest test of Europe’s sovereignty. For Virkkunen, the key lies in ensuring AI reflects European values:
“The EU must focus on achieving technological sovereignty to ensure its AI systems reflect European principles,” she says.
Through the AI Act, the world’s first comprehensive rulebook for AI, and investments in AI factories and platforms, Europe is charting its own course. Public administrations are encouraged to experiment with generative AI pilots, but always with transparency, accountability, and human oversight built in.
It’s a “deployment-first” approach that brings researchers, start-ups, and governments together to build AI solutions that work for people. At the same time, initiatives like the AI Skills Academy are training public sector workers and citizens alike to navigate this new landscape responsibly.
“Europe's vision as the AI Continent involves leading globally in trustworthy, democratic AI, setting standards for responsible AI leadership in a democratic society,” Virkkunen states. “The EU aims to demonstrate that innovation can coexist with values, showing that Europe can be both technologically advanced and democratically grounded.”
One of Europe’s most powerful but underused tools, Virkkunen points out, is public procurement. By pooling demand and setting standards for security and innovation, the EU can give European tech companies a home advantage.
“Joint procurement at the EU level can significantly strengthen demand for strategic digital technologies,” she argues.
Open-source solutions, innovation partnerships, and strict security clauses in contracts are part of this vision. Procurement, in other words, becomes a driver of sovereignty helping Europe’s own SMEs and deep-tech firms grow while reducing dependency on non-EU providers.
“Strategic procurement should include clauses that uphold the EU’s security and technological sovereignty, such as data localisation requirements and supply chain security guarantees. Procurement procedures must assess geopolitical risks associated with providers, especially in sensitive sectors like AI, semiconductors, cybersecurity, and connectivity,” Virkkunen says.
Of course, sovereignty is not only about building new tools. It is also about keeping powerful platforms in check.
“As technology giants continue to impact public discourse, the EU is committed to protecting democratic processes and ensuring trust, safety, and accountability online,” Virkkunen stresses.
A significant step in this direction is the Digital Services Act (DSA), “a comprehensive regulatory framework designed to create a safer and more trustworthy online environment.” Virkkunen describes it as “crucial in upholding democratic principles and ensuring digital platforms are held accountable.”
The DSA forces platforms, such as TikTok, X, and Meta, to take responsibility for systemic risks like disinformation and election interference. It demands transparency in algorithms and moderation practices, giving citizens greater control over their online lives. It also grants the Commission the power to enforce, as demonstrated in recent actions against several major platforms.
Virkkunen’s vision is ambitious but consistent: Europe should not try to copy Silicon Valley. Instead, it should lead in its own way by demonstrating that technology and democracy can coexist harmoniously.
This Q&A was published in an edition of Decoding, our monthly briefing on the latest trends in government technology. Read the issue in full here.
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