Signal EU Competitiveness Compass and a June 2026 technology sovereignty package target dependence

Summary

The plan reports that the EU is pursuing stronger single-market integration and lower external supply-chain dependence through its five-year Competitiveness Compass of January 2025. The Compass rests on three innovation pillars of closing the innovation gap, decarbonization and reducing dependence while strengthening economic security. In June 2026 the EU announced a technology sovereignty package that includes a Chips Act 2.0 and a Cloud and AI Development Act. The package aims to double the EU share of semiconductor production with cross-border projects worth 120 billion euros in total, and to require critical government data to be stored in EU clouds while favouring data centres that use EU chips. To build its innovation ecosystem, the EU also adopted a startup and scaleup strategy in May 2025, a European Innovation Act and TechEU investment led by the European Investment Bank.