A year ago, Finland made the silly decision to move some of the government key hosting services onto US clouds, like Amazon and Microsoft platforms, and away from the largely Finnish Tieto services. Justice of Ministry, Social services and Tax Administration data, along with the election data was going to make the move in 2027. And while it still could, the questions are finally starting to be raised given the rapid degradation in US-EU relations over the last few months. The political instability has consequences.
Similarly, news of France making moves to build "sovereign platforms" to use instead of Microsoft Teams and Zoom for conference calling, in a move away from US-based companies. And while governments might not be the best at building technological solutions, what could happen is a multitude of new initiatives and companies within the EU that will build to dilute the marketplace away from the money-grabbing, no-tax-paying companies from the US. This should happen across all digital platform sectors, including social media, but it takes time.
With so much relying on technological solutions, it is vital that there is decentralisation of infrastructure and services. And with so much potential for instability and disruption, as well as manipulation and corruption tied to the tech, it is also vital to have more localised control of data services, and the way the data is used, and who else has access to it. At the best of times I wouldn't want the US government or its affiliate corporations to have access to data, and these are definitely not the best of times.
I believe that the EU can stand on its own two feet in many ways, but it isn't going to do so unless forced. If there isn't enough disruption, the default is for lowest price, but when there is disruption and volatility, as well as unpredictable political landscaping, security takes precedence. The EU has plenty of tech talent available and moving more development and production in-house would rejuvenate the industry and economy.
Simultaneously, as I keep harping on about, the EU should force the multinational digital companies to pay their taxes in full in the countries in which the revenue is generated. This would be in the many tens of billions and could be used to invest into local development to replace the largely US-based tech. This has a knock-on effect throughout the economy, as more are employed locally across a multitude of new businesses, and innovation increases, which in turn drives more localised growth and opportunity. As I see it, the taxing US services in the EU fully, is one of the biggest levers it should pull in any trade discussions, but so far has been kept off the table. But, it should be on the table, and a norm, as it is costing EU citizens enormously.
Paying a bit less for services doesn't bring local benefits, if that "less" is being spent in the US. Paying a bit more locally means that the majority of the cost is kept within the EU, benefiting EU producers, and workers. If the US wants to bring manufacturing back within its borders, the EU should be bringing tech development back within its own too, instead of paying the most valuable companies in the world for theirs. This would go for military development too, where instead of buying planes from the US, they can buy from the likes of Saab in Sweden, Airbus, or BAE Systems.
There is plenty of know-how.
What the current US government has made clear around the world, is that the US cannot be relied upon for anything at all, and they have time and time again proven it, and highlighted the many flaws. And this raises the questions for alternatives, and increases shopping around. Rather than looking only at the lowest price, sourcing departments are looking at a wider range of factors, including security. And while the options are currently limited, once the governments start shopping around outside of the US, the incentive to establish and innovate locally grows, with innovation and offerings improving.
This should have been happening long ago.
It is not about restricting trade, but rather about improving possibilities. The more concentrated sources become, the less innovative and more controlling they become. Even though there are efficiencies, there are also risks in the homogenisation of products and services, and we are seeing the risk of relying on the US come to the fore now. Even inside the country, there are severe political struggles that are based on too much reliance on the government to provide, which is now presenting as government control to the point that they are breaking their own laws and openly going against legal rulings.
These are not the actions of a good business partner.
The "United States" is quickly being replaced by the Central Authority government, where the power of the states is being continually diminished, right down to having national militia roaming the streets. The "European Union" should be taking advantage of this situation and strengthening the development across the union, leveraging localised skills and resources, and taking responsibility for its future. Rather than engaging in the same conversations the US has, the discussions in the EU should be on growth, innovation and improving wellbeing through activity.
Stop saving money, and start building better.
Taraz
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