European tech leaders are accelerating efforts to build sovereign technology stacks after the Trump administration ordered Anthropic to block foreign access to its powerful AI models in June 2026. The move highlighted vulnerabilities in Europe's reliance on US technology, with company executives now urgently assessing their technology dependencies.

The shift is already showing results in some markets. Raphael Auphan of Proton reported a 100% surge in Danish signups following Trump's Greenland threats, while a Proton survey revealed 74% of European public companies still depend on US email services. CIOs are actively seeking risk reduction strategies, aiming to cut foreign dependencies within one to two years.

However, the transition faces significant hurdles. Fabrizio Pirondini of satellite startup Xoople noted that US partners remain the only viable option for global-scale technology, forcing European companies to rely on American infrastructure despite sovereignty goals. The economics of competing with US giants require substantial capital deployment.

Europe holds enormous untapped resources, with 3.8 trillion euros in pension fund assets available for investment. Economist Cristina Caffarra argues redirecting even a fraction of the annual €300 billion sent to US venture capital could fund competitive European alternatives, though she emphasizes market-driven demand rather than policy mandates as the key catalyst.