The European Commission has proposed an open-source-first approach for public-sector cloud and AI software procurement as part of a broader digital sovereignty push aimed at reducing reliance on foreign technology providers.
The European Commission has unveiled a sweeping technological sovereignty package that places open source at the centre of its efforts to reduce dependence on foreign technology providers and strengthen Europe’s control over critical digital infrastructure.
At the heart of the proposal is the Cloud and AI Development Act (CADA), which would require public administrations to give preference to open-source solutions when procuring cloud and AI software. The move elevates open source from an alternative option to a strategic procurement priority across the European public sector.
The package also introduces a dedicated open-source strategy focused on expanding open-source adoption in government, improving interoperability between public digital systems, supporting the long-term maintenance and security of open-source infrastructure, and fostering open digital ecosystems.
The Commission noted that the EU currently spends €264 billion annually on non-European proprietary software and aims to reduce this dependence by encouraging open ecosystems and European alternatives. Examples highlighted include EUDI Wallet and Mastodon.
Under CADA, member states would be required to conduct sovereignty risk assessments covering digital service control, supply chains, AI data processing, infrastructure location, and cybersecurity. The legislation also seeks to curb “sovereignty washing,” where foreign cloud providers market services as independent European offerings through intermediaries.
In sensitive sectors such as defence and critical infrastructure, authorities could be required to use European software and hardware, while €180 million in services would be directed towards trusted EU partners.
“Europe cannot afford to be dependent on others for critical technologies for hospitals, energy grids, and security services,” said Ursula von der Leyen, President of the European Commission.
Henna Virkkunen, Executive Vice-President of the European Commission, described the initiative as “a historic systemic shift away from a mere consumer role towards a shaping role.”
