European dependence on American software and cloud services: an economic and strategic challenge and an opportunity for digital sovereignty 

For over a decade, Europe's digital transformation has relied heavily on software solutions and cloud services from across the Atlantic. This dependence, long seen as an accelerator of innovation, is now revealing its limitations: loss of added value, strategic vulnerability, and a brake on digital sovereignty. A recent report by Asterès, commissioned by Cigref, sheds light on the extent and consequences of this phenomenon, while opening up avenues for redressing the balance. 

The extent of Europe's digital dependency 

The figures speak for themselves: between 80 and 83 % of European spending on professional software and cloud services is captured by American companies, representing around 264 billion euros each year. This "digital bill" now weighs as much, if not more, than other strategic items such as energy or defence. It is equivalent to almost 1.5 % of the European Union's GDP, a sum greater than the EU's annual budget. 

This situation places Europe in a position of structural dependence, with the bulk of digital investment fuelling growth and employment outside its borders. 

Economic and strategic consequences 

Loss of value and jobs 

The Asterès report estimates that the dominance of American players in the cloud and professional software contributes to supporting nearly 2 million direct, indirect and induced jobs in the United States. In other words, every euro invested by a European company in an American solution contributes to the creation of wealth and jobs on the other side of the Atlantic, to the detriment of the European economic fabric. 

Over a decade, nearly €421 billion has left Europe to finance the growth and innovation of American giants. This flight of value weakens the investment capacity of European players and limits the emergence of new technological champions on the continent. 

Impact on the balance of payments and competitiveness 

Digital dependency weighs heavily on the European Union's balance of payments, worsening the trade deficit and weakening Europe's position in global competition. At the same time, the steady rise in prices for cloud services (estimated by Asterès at +10 % per year on average) is increasing the cost of dependency and reducing the room for manoeuvre of European organisations. 

This situation is also reflected in a lack of innovation: without sufficient resources and market share, European suppliers are reluctant to invest in research and development, perpetuating the vicious circle of dependency. 

Operational risks and loss of control 

Beyond the economic aspects, the concentration of digital services in the hands of a few non-European players exposes companies to major operational risks: unilateral modification of contractual conditions, interruption of service, or imposed changes to security and confidentiality policies. This loss of control can have a direct impact on business continuity, regulatory compliance and the protection of sensitive data. 

Sovereignty and security issues 

The issue of digital sovereignty goes far beyond the technical or economic framework. It affects Europe's ability to guarantee the independence, security and control of its critical infrastructures. In an unstable geopolitical context, where trade tensions and cybersecurity issues are multiplying, dependence on foreign players is a major strategic risk. 

Data control and regulatory compliance 

The storage and processing of sensitive data on non-European infrastructures raises the issue of compliance with the RGPD and other European regulations. American extraterritorial laws, such as the Cloud Act, allow the American authorities to access certain data hosted by American suppliers, even if it is stored in Europe. This situation creates legal uncertainty and a risk of leakage of strategic information. 

The cloud as a geopolitical lever 

The Asterès report points out that American domination of the cloud and business software could be used as leverage in trade negotiations or in the event of international tensions. The ability to restrict access to essential services or impose unfavourable conditions is a vulnerability for Europe, which must diversify its suppliers and strengthen its autonomy. 

Scenarios and levers for redressing the balance 

Given this situation, the Asterès report proposes several scenarios for rebalancing the situation, based on a gradual shift in digital spending towards European suppliers. 

Costed scenarios 

• Redirect 5 % Purchasingcreating 178,000 jobs and €12 billion in added value in Europe. 

• Increase this share to 10 % by 2030331,000 jobs created and a significant reduction in foreign currency leakage. 

• Reaching 15 % by 2035463,000 additional jobs, €100 billion in financial flows retained in Europe, and a significant strengthening of Europe's digital ecosystem. 

Levers for action 

A number of levers can be used to achieve these objectives: 

• Public procurementEuropean solutions in public procurement to support local innovation. 

• Support for the ecosystemTo encourage investment in R&D, training and support for start-ups and SMEs in the digital sector. 

• Standardisation and certificationPromoting European standards for security, interoperability and compliance to boost confidence in local solutions. 

• Raising awareness and providing supportTo help companies identify European alternatives and assess the risks associated with dependency.