Europe at an autonomously shifting crossroads. And the Netherlands counts

The Amsterdam City Council recently fully endorsed the aim to be digitally independent of American Big Tech companies and aims to implement its own European solutions by 2030 at the latest, with or without open source software.

Without a doubt a good objective, the question remains what effective policy is. The ICT industry has long had economies of scale under the motto ‘the winner takes it all’. Microsoft, Amazon, Facebook and Google are the well-known examples of lock-in and market dominance. The recent breakthrough of AI also significantly accelerates this lead.

The Netherlands

The Dutch ASML and the European Airbus are welcome pearls that confirm the perspective that Europe does indeed play a relevant role in the ICT field. Then an effective EU industrial policy is a requirement and the Netherlands can play a potentially important role in this.

The Netherlands is often good at putting off major problems, such as gas extraction and the benefits file. We are also skilled in decentralizing problems to municipalities, for example youth care and asylum policy. The Municipality of Amsterdam, on the other hand, is looking for workable solutions in larger contexts such as cooperation with other European cities, especially Eurocities. However, the main line in the Netherlands is ‘a lot of busyness, limited effectiveness’.

The Dutch government supports European partnerships policy-wise and financially, but spending money and effectiveness are different things. Since the 1980s, Europe has spent billions on subsidies to encourage ICT companies from different Member States to collaborate on pre-competitive R&D. However, a 2024 report from the European Business Roundtable shows that European industry growth has structurally lagged behind the US in recent years. China also shows a considerably more positive picture than Europe.

Europe

The EU is still struggling to find its own way between the Chinese and American industrial models. We may be successfully regulating American AI, but that is completely different from creating services and making money.

In addition, there is a blind spot, the lack of a large internal market. At crucial moments, national interests still prevail or, at best, cause delays. The Netherlands can once again take on a pioneering role here, as we have done with the BENELUX and the EEU. However, time is running out. Europe is lagging behind in solar panels and batteries.

Hardware control is increasingly done from an overlying, online software. EVs are also called phones on wheels. At the recent Hannover Messe it was clear that ICT will also play an increasingly important role in traditional hardware industries.

Mario Draghi’s findings are eagerly awaited, exposing the policy shortcomings for European industry and identifying possible solutions. Enrico Letta’s reporting in the same area was recently completed. But the question that remains is what the new European Parliament will do with this. And whether Thierry Breton will continue his work as an advocate of the internal market and digitalization in the new constellation after the European elections. And also how involved member states such as the Netherlands then deal with this or negotiate an exceptional position for themselves.

Transatlantic cooperation and the related trade policy will have to be given a place in this. In addition to China and the US, Taiwan, Japan and South Korea will also have to be included. In the short term, however, the production capacity of the defense industries as well as the effectiveness of AI/ICT hardware are also being challenged. These are key points of attention for the European Union and for the Netherlands on the global ICT chessboard.

Final word

Now, historically, Europe has always shown itself to be successful in making steps forward at crucial moments in its existence. With this reassuring thought, we look confidently to the future in which the Netherlands takes on a pioneering role in the digital field in Europe.

Drs. Dick van Schooneveld MBA
Drs. Kees Mulder MBA (lead author)