Brussels will unveil its long-awaited digital sovereignty package today, aiming to reduce Europe's reliance on US and Chinese technology while demanding stronger guarantees from third-country cloud providers. The legislation follows mounting concern across European capitals about American tech's dominance in the bloc's economy.

The package includes a successor to the Chips Act to boost semiconductor manufacturing and emergency intervention powers for supply chain disruptions. A central component is the Cloud and AI Development Act, which introduces four 'assurance levels' requiring providers to demonstrate data protection capabilities, cybersecurity measures, and resilience against extraterritorial laws.

These requirements respond to fears that a future US administration could impose a 'kill switch' on American tech services in Europe through sanctions or export controls. While avoiding explicit 'Buy European' mandates, the EU will assess companies' 'EU value' based on research investments and local commitments.

The announcement coincides with other European business developments, including Real Madrid's controversial plan to attract outside capital at a €10bn-plus valuation and a KPMG report revealing that illegal cigarettes cost Europe €22.4bn in lost tax revenue last year, representing 11.1% of total consumption.