What is This New EU Policy?
In a significant move towards greater autonomy, the European Union has rolled out a series of initiatives under its 'Tech Sovereignty Package'. Unveiled in mid-2026, this package includes policies like the Chips Act 2.0 and the Cloud and AI Development
Act, all aimed at one central goal: reducing Europe's heavy reliance on non-EU technology providers. The headline-making change is a new approach to public procurement. Recent tenders, particularly for massive projects like the new AI 'Gigafactories', explicitly state that hardware can be sourced from suppliers in Europe and 'like-minded countries'. This isn't just about buying new computers; it's a strategic decision to build Europe’s critical digital infrastructure—from cloud services to AI supercomputers—using technology from trusted sources, while deliberately moving away from non-trusted vendors.
Defining the 'Like-Minded' Club
The term 'like-minded countries' is not officially defined with a static list, but it's understood to refer to nations that share the EU's values on democracy, the rule of law, and open markets. Functionally, this includes strategic partners with whom the EU has strong trade and security relationships. Recent EU actions point towards who belongs in this club. For instance, the Commission has signed letters of intent with American tech giants like AMD, NVIDIA, and Qualcomm to secure access to advanced AI chips for its Gigafactory initiative, signalling that the US is a key like-minded partner. This approach extends a trend seen in other strategic areas, such as the IRIS² secure satellite communication programme, which relies on trusted partners to build out Europe's capabilities. The implication is clear: technology from countries that do not align with these principles, particularly those with state-influenced corporate sectors, may be excluded from sensitive projects.
The Drive for Digital Sovereignty
This policy shift did not happen in a vacuum. It is the culmination of years of growing unease in Brussels about Europe's dependence on foreign technology. The EU currently relies on non-EU nations for a vast majority of its key digital products and infrastructure. This dependency is now viewed as a critical economic and security vulnerability. The goal of 'digital sovereignty' or 'open strategic autonomy' is to ensure Europe can act independently in the digital world by controlling its key technologies and data. The strategy is twofold: first, to bolster Europe’s own industrial base through initiatives like the Chips Act 2.0, which aims to pour investment into the EU's semiconductor ecosystem. Second, it involves diversifying supply chains away from high-risk or politically contentious sources towards a network of trusted international partners.
The Global Ripple Effect
The EU's move is poised to create winners and losers on the global stage. European technology companies and hardware manufacturers stand to gain significantly from a procurement process that now gives them preferential treatment. US-based tech firms, as part of a 'like-minded' nation, are also well-positioned to continue being major suppliers. The most direct impact will be felt by companies from nations excluded from this trusted circle, who may find themselves locked out of the lucrative €2 trillion EU public procurement market for sensitive projects. For a country like India, often seen as a strategic partner to the West, this presents both an opportunity and a question. While India is increasingly part of the 'like-minded' conversation in geopolitical forums, its ability to translate that into becoming a trusted hardware supplier for the EU will depend on aligning with Europe's stringent standards on data security, sustainability, and resilience.
