At the 9 June 2026 Transport, Telecommunications and Energy Council, Cyprus and the European Commission staked out different positions on the balance between openness and reducing dependencies in the EU's tech sovereignty agenda. Cyprus, represented by Minister Nicodemos Damianou, presented a general approach on the European business wallet and progress reports on the Digital Networks Act and cybersecurity package. Executive Vice-President for Tech Sovereignty Henna Virkkunen framed these as part of a broader tech sovereignty strategy linking cybersecurity, connectivity, procurement, and investment to competitiveness and single-market integration.
Virkkunen stressed that openness without capacity becomes dependency, while Cyprus emphasised control over critical systems. On Franco-German sovereignty criteria, Virkkunen rejected any conflict framing, seeing member-state initiatives as converging with the Commission package. Cyprus pushed back on being excluded from those talks, insisting the Council is the proper forum. On procurement, Virkkunen defended tech-sovereignty criteria against French criticism that incentives are insufficient, while Cyprus added that procurement is only one tool, needing start-up ecosystem support. On market-share targets, Virkkunen acknowledged European cloud companies hold only 15% and have lost share, but argued the cloud and AI development act would boost demand. On external engagement, both backed ITU cooperation but Virkkunen stressed internal capacity.
EU businesses and public administrations face a trade-off between single-market simplification and stricter sovereignty criteria that could limit procurement choices. Cloud and AI providers stand to benefit from demand-boosting measures but may face new compliance costs. Telecom operators could see investment incentives tied to cybersecurity and connectivity goals. Next steps: unfinished files continue under the incoming Irish presidency.