An alternative report on the European Union’s dependence on foreign technology, drawn up after far-right French MEP Sarah Knafo (ESN) published her draft report, is more complex and more comprehensive than Knafo’s – but also more cautious, according to a working document seen by Euractiv.
A number of MEPs from the centre-right European People’s Party (EPP), the centre-left Socialists and Democrats (S&D) and liberal Renew groups agreed to draft a counter-report to Knafo’s (ESN) initiative, and have met multiple times to refine their approach, two sources close to the topic told Euractiv.
All political groups are set to submit their own amendments to Knafo’s report by 20 March, with further negotiations by the coalition of MEPs then expected to work on compromise amendments. Knafo’s report is expected to be heavily rewritten, or even entirely replaced, in the process.
Despite being just eight pages long, the alternative report is also denser and packed with EU-specific terminology, making it more technical than Knafo’s draft. The report is also more aligned with existing EU initiatives, strategies, and commitments. Another key distinction is the language – the working document is written in English, while Knafo’s draft was tabled in French.
The working document seen by Euractiv is divided into three core areas: the EU’s connectivity, computing and secure infrastructure needs, and contains a number of key differences with Knafo’s draft.
EU’s connectivity needs
Unlike Knafo, the group of MEPs included a mention of the EU’s broadband law negotiated during the previous term, the Gigabit Infrastructure Act, and a call on the European Commission to enforce it.
They also reiterated the European Parliament’s push to speed up the permit-granting process for fixed and mobile communications infrastructure. Additionally, they backed enhanced coordination on harmonizing spectrum frequencies across the EU, a proposal that the Council of the European Union strongly opposes.
The section on space connectivity is much more detailed than Knafo’s report, with added emphasis on the need for the EU to make more progress on sovereign access to space, particularly through the Ariane 6 launcher. The MEPs also acknowledged the importance of integrating 5G technology with space connectivity, as lower satellite connectivity capacities mean they can complement but not replace terrestrial 5G networks.
The MEPs did not take a position on the current debate over relaxing EU rules for telecom operator mergers, even though Knafo clearly expressed her support for such changes.
EU’s computing needs
The MEPs are preparing to call for a revision of the EU’s Chips Act, which currently allows member states to subsidise microchip manufacturing facilities. Their goal is to make artificial intelligence (AI) chips a central focus of the revision, according to the working document.
The working document also emphasised the importance of cloud infrastructure for the EU, though they have not yet stated their position on sovereign requirements for sovereign cloud certifications. This contentious debate has been central to negotiations on an EU-wide cyber certification scheme for five years, pitting France’s push for sovereignty against concerns from other EU countries, who view it as a protectionist move.
Additionally, the MEPs called for a Commission roadmap on quantum technology, urging the proposed Quantum Act to deliver practical tech applications, as well as an EU strategy on post-quantum cryptography.
The MEPs noted that the EU aims to achieve climate neutrality for data centres by 2030, something that would require much greater energy efficiency. They are preparing to call for the Commission to strongly enforce the Data Act, which is designed to open EU’s cloud market to alternative providers, including European firms, and reduce the dominance of US hyperscalers like Amazon, Microsoft, and Google.
Knafo, who placed heavy emphasis on sovereign requirements, which also aligns with the French government’s position, does not mention those issues in her report.
Knafo did, however, offer her unequivocal support for using nuclear energy to meet future data centre energy needs, something left unmentioned in the MEPs’ working document.
Instead, the MEPs focus on the need to improve the integration of data centres with energy systems and promote research into cooling solutions and energy-efficient processors.
EU’s secure digital infrastructure needs
The MEPs highlighted the Commission’s concern over the vulnerability of undersea cables across the EU, including efforts to coordinate responses, increase security and repair damage. That contrasts with Knafo’s focus in her draft on the lack of resilience of the cables.
The MEPs also acknowledged the work done during the previous term on cybersecurity, referencing various cyber laws and initiatives, which Knafo’s draft mentioned in the introduction but did not consider further.
The MEPs are also considering urging the Commission to make the 5G toolbox binding, so that the 16 EU countries that have yet to take action on phasing out high-risk Chinese vendors like Huawei and ZTE begin implementing necessary measures. That point was not addressed in Knafo’s report.
Knafo’s call to draw inspiration from US policy regulatory and investment culture, was missing from the working document. The document made no mention of US-inspired rules to drive European public spending toward EU-based small and medium companies, nor did it address Knafo’s wish to loosen regulation in order to allow pension funds and life insurance firms to invest into the European tech sector.
The recommendations in the working document are currently too cautious and will be made more ambitious, a European Parliament source working on the alternative report, who was granted anonymity to speak freely, told Euractiv.
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