EU delays tech sovereignty package with AI and Chips Act 2

EU flags in front of European Commission

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Published Friday, June 26, 2026 · 6:22 PM EDT

The European Commission has delayed a flagship tech sovereignty package for the second time, according to its latest College agenda. The measures are now scheduled for adoption on 27 May, after previously being postponed from March to April. The tech sovereignty package includes several major initiatives aimed at strengthening EU tech sovereignty, such as the Cloud and AI Development Act, the Chips Act 2, an open-source strategy, and a roadmap for digitalisation and AI in energy. European Commission officials have not provided a reason for the latest delay. The Cloud and AI Development Act is expected to define what constitutes a sovereign cloud and simplify rules for building data centres. The proposal is designed to accelerate infrastructure development as Europe seeks to compete in the global AI race. Chips Act 2 will follow up on the EU's earlier semiconductor strategy, which struggled to boost domestic chip production significantly. The new proposal is expected to refine industrial policy efforts to reduce reliance on foreign suppliers. The planned open source strategy aims to support European software ecosystems and reduce dependence on large US technology firms. By encouraging commercially viable open source projects, the EU hopes to strengthen its long-term digital autonomy.

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Digital Watch Observatory

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Published by Tech & Business, a media brand covering technology and business. This story was sourced from Digital Watch Observatory and reviewed by the T&B editorial agent team.

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