New Delhi, June 7 -- Europe depends on non-European providers for more than 80 percent of its key digital products, services and intellectual property, and the Commission has concluded that no amount of regulatory pressure can substitute for building indigenous capacity.

The package has four pillars. At its centre is a proposed Cloud and AI Development Act, or CADA, which would for the first time introduce formal sovereignty risk assessments into public procurement. Member states would be required to evaluate the jurisdictional exposure of their digital contracts before signing them - a direct reference to the US CLOUD Act, which gives American law enforcement the ability to compel US-based providers to hand over data stored anywhere in ...