Siemens CEO Warns EU Against Prioritizing Digital Sovereignty Over AI Innovation
Roland Busch cautions that restrictive regulations and a focus on independence from US tech could hinder European economic growth
Quick Look
Siemens CEO Roland Busch has warned that the EU's push for digital sovereignty and strict AI regulation could stifle innovation and economic growth, leaving the bloc behind the US in the global AI race.
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Why It Matters
The EU has recently implemented several major digital laws, including the AI Act and the Digital Markets Act, as part of a broader strategy to ensure digital sovereignty and regulate the influence of foreign tech giants.
The EU’s focus on breaking its AI reliance on the US in favor of digital sovereignty could lead to ‘disaster’ for the bloc, Siemens CEO Roland Busch has told the Financial Times.
The European Commission plans to present a tech sovereignty package at the end of May aimed at developing cloud infrastructure and the AI sector. Brussels wants to reduce the bloc’s reliance on US digital solutions and services amid the tensions with Washington which have arisen since President Donald Trump’s return to office.
In an interview published on Tuesday, Bosch says the EU should instead use existing tools to boost economic growth while building its own AI infrastructure.
“You should not throttle your innovation speed for the sake of creating sovereignty,” Busch said. “This would be a disaster.”
The executive highlighted that the bloc risked being left further behind in the race to develop powerful AI tools if it did not simplify its regulations. Busch warned that delaying AI deployment in Europe due to security concerns or excessive regulation would slow growth, calling the approach “miscalibrated” compared to that of the US. As a result, he said, the US economy is a “fast-flowing river” embracing the technology, while Europe’s tech ecosystem resembles “standing water.”
The European Parliament adopted a resolution on technological sovereignty and digital infrastructure in late January, calling for preference for European products in public procurement and proposing support for local cloud providers.
In recent years, the EU has also passed laws regulating the digital and AI sectors, including the AI Act, the Digital Markets Act, and the Digital Services Act. Brussels has expanded its oversight of data transfers, cloud competition, and semiconductor production through initiatives such as the European Chips Act.
US officials have repeatedly raised concerns that the EU’s digital and AI rules could disadvantage American companies. The Office of the US Trade Representative has warned that discriminatory measures under existing laws could trigger retaliatory measures, including fees or restrictions on European services, and expressed unease about the AI Act’s enforceability outside Europe.
What to Watch
AI outlook — possibilities, not facts
The European Commission will face pushback from industry leaders regarding the upcoming tech sovereignty package.
Likely · Within months
US-EU trade tensions will persist as the EU moves to implement its digital sovereignty agenda.
Likely · Within months
Open Questions
- What specific measures will be included in the upcoming May tech sovereignty package?
- How will the US respond if the EU implements discriminatory procurement policies?
