Foundation for Economic Education
Europe wants technological sovereignty. But protectionism may leave it paying more for less. Comment “Tech” and we’ll se

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Europe wants technological sovereignty.

But protectionism may leave it paying more for less. Comment “Tech” and we’ll send you an article that explores this further. The EU’s proposed Cloud and AI Development Act would restrict foreign providers in critical sectors, potentially forcing firms like Amazon, Microsoft, and Google to offer separate, more limited services. The problem is that Europe still lacks alternatives at the same scale and quality. Blocking competitors does not create innovation. It raises costs, reduces choice, and can hit smaller businesses hardest. Technological strength comes from attracting investment, encouraging competition, and allowing consumers and firms to choose the best tools available. Sovereignty built by closing markets risks becoming technological isolation.
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