Page 2: Expanding the "sovereign" cloud

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The EU has tried to counteract this with several relevant industrial alliances, including those focused on data exchange, such as Gaia-X, the Commission advisor explains. "However, the results so far have been minimal." Recently, several member states have promoted "secure" cloud set-ups. In these, the EU's own infrastructure providers work together with the distribution of hyperscalers, but retain control over sensitive security and encryption elements. Such cloud solutions are not completely "sovereign" in technological terms either, as the technology core is not developed in the EU and vulnerabilities remain. However, they are now "Europe's second-best option for data security and territorial sovereignty".

Draghi also describes the telecommunications sector as fragmented and internationally uncompetitive. – like his colleague Enrico Letta in his recent internal market report – he is therefore flirting with the much-vaunted "European champions" in this area. Draghi thus calls for a reform of regulatory policy "to complete the digital single market for telecommunications". In this context, "cross-border mergers and operations" should be encouraged. Requirements that apply from the outset to top dogs such as Deutsche Telekom at country level should be abolished, as they discourage "investment and risk-taking".

Telcos as champions

Draghi also brings into play the shopworn idea of big tech cost sharing in network expansion. He calls for contractual agreements to share infrastructure costs between network operators and very large online platforms. If such negotiations fail within a reasonable period of time, "provision should be made for protection through mandatory final arbitration offers by the national competition authorities". Draghi's vision: "The EU will provide its citizens and businesses with state-of-the-art communication services provided by strong and successful EU companies that are not overly dependent on providers of critical equipment and software from outside the EU." Open technologies such as Open RAN are crucial for this. In addition, spectrum licensing must be standardized throughout the EU.

The former Prime Minister sees it as positive "that the EU has secured a strong international position in high-performance computing". In the race to build quantum computers, the EU can also "rely on important strengths such as major public investment, outstanding skills and research capacities". Nevertheless, it is still a long way from achieving its goals in this area. In the chip market, the EU has "important strengths" and leads in selected segments. However, its position in this area is also hampered by a strong dependence on third countries and a low presence in innovative areas.

Divided opinions in the economy

Draghi advises EU bodies to secure a strong position in AI in key industries such as advanced manufacturing and industrial robotics, chemicals, telecommunications and biotechnology over the next five years, based on a number of locally developed models. Another tip: "Maintain control over security, data encryption and storage capacities in EU companies and institutions and facilitate the consolidation of EU cloud providers."

The Federal Association of German Industry (BDI) emphasized that the report makes it clear that there can be "no business as usual in economic policy". Instead, what is needed is "deeper integration of the internal market to increase efficiency and strengthen growth, including in defense, infrastructure, telecommunications and pharmaceuticals". The German Broadband Association (Breko), on the other hand, does not share the diagnosis and therapy proposals: Draghi has left open why a "more consolidated telecommunications market with a few large players would lead to more investment". The industry still needs strong regulation in Germany to enable fair competition. It was Telekom's competitors who got the fiber optic expansion rolling with their investments. Von der Leyen emphasized: "To be competitive, we need to get to grips with ecological and digital change."

(vbr)