BRUSSELS – With the Industrial Accelerator Act advancing today and a broader technology sovereignty package expected in April, Europe is entering a new phase of industrial policy. The Business Software Alliance (BSA) is urging policymakers to ensure that this next chapter strengthens Europe’s capabilities without weakening the digital foundations on which modern industry depends.

Over the past decade, Europe’s economic strength has increasingly been shaped by digital infrastructure. Manufacturing plants are designed with AI systems. Energy networks rely on real-time cloud analytics. Hospitals, logistics platforms, and public administrations depend on advanced cybersecurity and data management. Industrial capacity today is built as much on software as on physical production.

In response to geopolitical tension and supply chain disruption, governments are seeking greater control over critical capabilities. That objective is widely shared and understandable. The central question, however, is how sovereignty is defined. When policy focuses on enforceable security standards, transparent governance, and objective risk management, it reinforces resilience. When it substitutes geographic origin for measurable safeguards, it risks narrowing markets and limiting access to technologies that European industry relies upon.

Public procurement will be one of the clearest tests of this direction. Decisions taken now will shape competition, investment, and innovation across the Single Market. In its recent submission on the review of EU public procurement rules, BSA argued for criteria centered on performance, security, and compliance. This approach strengthens supply chains while preserving competition. The same principles underpin BSA’s paper, “Keeping the Door Open: The EU’s Path to Digital Sovereignty,” which sets out how Europe can reinforce sovereignty through interoperability, global standards, and trusted partnerships.

Enterprise software companies are deeply invested across Europe, operating data centers, supporting critical sectors, advancing research, and developing digital skills. Europe’s industrial and technological ambitions will be strongest when they build on this ecosystem rather than constrain it.

Done well, the forthcoming tech sovereignty package offers an opportunity to reinforce Europe’s industrial capacity in ways that support long-term competitiveness and resilience. To that end, BSA stands ready to engage constructively with EU institutions and Member States as these discussions move forward.