Personal Blog of Patrick Sauerwein

Problem Hypothesis

Europe – and especially Germany – is critically dependent on non-European technology across nearly every layer of IT, from hardware manufacturing to cloud infrastructure and, most recently, generative AI. This dependency poses serious risks not only to privacy, but also to economic security, innovation capacity, and the future viability of entire industries. Even established sectors, such as the German automotive industry, are feeling the pressure from rapid technological advances abroad.

A recent management visit to China highlighted the scale of this challenge: the pace of innovation was striking, with cities like Beijing already transformed by widespread adoption of electric vehicles-making urban environments noticeably quieter and more advanced.

This experience has raised several pressing questions for me:

• Why is it so difficult for Europe, and especially Germany, to adapt to or lead in IT?
• Why do we continue to lag behind, focusing mainly on customization rather than true innovation?
• What does this mean for our digital sovereignty and autonomy?
• How have international political developments, such as the Trump administration, influenced our position?
• Are our freedom and economic prosperity at risk?
• How long can we afford to maintain the status quo?

I do not claim to have all the answers, but I want to share these concerns and invite further discussion.

Ray Dalio’s recent analysis

Ray Dalio’s recent analysis offers a clearer perspective on the shifting global landscape, highlighting the rise of China and the relative decline of the U.S. Dalio warns that the global order is already undergoing fundamental change, with China emerging as a leading economic and consumer powerhouse while the U.S. faces mounting debt, unsustainable trade imbalances, and waning influence. This realignment is not just theoretical-it is already reshaping global trade, capital flows, and geopolitical power

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The Reality: Designed in the West, Built in the East, Controlled from the U.S.

• Hardware: Nearly all computers and mobile devices are manufactured in Asia. Even U.S. brands only design at home; Europe’s hardware footprint is minimal, with a few niche PC makers (e.g., Tuxedo, Schenker/XMG) and almost no smartphone production.
• Operating Systems: Windows, macOS, Android, and iOS – all U.S.-controlled. No major European OS has global relevance.
• Cloud & Software: U.S. hyperscalers (AWS, Azure, Google Cloud) dominate. European alternatives exist (e.g., OVHcloud, Telekom), but lack scale.
• AI: U.S. and China lead. France has Mistral and Le Chat; Germany has Aleph Alpha and DeepL, but nothing at the scale of OpenAI or Anthropic. Even nothing is really accessible as an end-user.

Why Is Germany Lagging?

• Innovation Gap: Strong in research, but slow to commercialize and scale digital solutions.
• Customization over Leadership: Focus on adapting existing tech, not pioneering new platforms.
• Fragmented Initiatives: Many small projects, little unified impact.
• Skills Shortage: Not enough digital talent and slow STEM education reform.
• Bureaucracy: Rigid rules and outdated public IT systems slow down progress.

Why Digital Sovereignty Is a Strategic Imperative

• Security & Compliance: Reliance on non-European providers exposes sensitive data to foreign laws (e.g., U.S. CLOUD Act).
• Economic Resilience: Without control over key technologies, Germany’s prosperity and competitiveness are at risk.
• Geopolitical Leverage: Digital dependency weakens Europe’s global influence and makes it vulnerable to political pressure or sanctions.
• Innovation & Value Creation: Sovereignty enables tailored solutions and supports local industry growth.

Points to Consider

• Make Digital Sovereignty a Top Priority: Treat it as essential for security, prosperity, and freedom.
• Invest in Homegrown Tech: Scale up European cloud, AI, and hardware providers.
• Modernize Public IT: Streamline procurement, cut bureaucracy, and upgrade infrastructure.
• Foster Digital Skills: Reform education and invest in lifelong digital learning.
• Promote Open Standards: Support modular, open-source solutions to avoid vendor lock-in.
• Strengthen Collaboration: Unite government, industry, and research for a resilient digital ecosystem.

Wake-up Call

Germany and Europe must wake up to the risks of digital dependency. Without bold investment, unified strategy, and a willingness to lead, Europe will remain a digital colony – missing out on the economic, social, and strategic benefits of true digital sovereignty. The time to act is now!

Let’s pioneer – digital sovereignty isn’t just a technical issue – it’s about securing Europe’s future.