Germany and Europe have strong industrial and scientific capabilities but systematically fail to scale digital technologies. Key areas of the digital ecosystem are largely controlled by non-European providers. In its current position paper "Digital and Technological Sovereignty – Harnessing Potential, Ensuring Prosperity, Shaping Geopolitics," adopted by the Presidium on 25 June 2026, the German Chamber of Commerce and Industry (DIHK) has outlined specific demands on how Germany and Europe can overcome this structural deficit – without stifling innovation through excessive regulation.

Background

The international competition for digital key technologies – artificial intelligence (AI), semiconductors, cloud infrastructures, quantum technologies, and cybersecurity solutions – has become a pivotal power factor. Leading economies such as the USA and China are investing heavily to set global standards. 

For Germany, this environment is not just about innovation competition but also about economic resilience, data sovereignty, and strategic autonomy. According to the DIHK Digitalisation Survey 2026, German companies see themselves as significantly or fully dependent on non-EU providers, particularly for office software, hardware, cloud, and AI platforms. 

Germany has significant strengths at its disposal: The number of patent applications for digital key technologies has risen substantially, and in future areas such as quantum technology, Europe has measurably reduced its gap to the USA. The problem lies not so much in a lack of innovative capacity but in structural impediments to scaling: High energy costs, complex approval procedures, fragmented funding landscapes, and inadequate venture capital markets hinder the transfer of research into market-viable solutions. Growing geopolitical tensions – especially between the USA and China – exacerbate these risks as German companies increasingly find themselves caught in global dependencies that can be used as leverage. 

Frequently Asked Questions (FAQ) 

What does "digital sovereignty" mean for my company? 

Digital sovereignty means that your company can use digital technologies, data, and infrastructures autonomously – without dependence on a single provider or specific country. In practical terms, this means: the ability to switch providers, control your own data, negotiate fair contract terms, and remain operational during geopolitical crises.

Why does current EU regulation weigh heavily on SMEs? 

New regulations such as the AI Act or the Data Act include extensive documentation, verification, and reporting obligations that apply regardless of company size. Large corporations can distribute compliance costs across many products; SMEs bear this burden disproportionately. Moreover, various regulations are not coordinated, resulting in contradictory requirements and significant legal uncertainty.

What are open standards, and why does DIHK advocate for them so strongly? 

Open standards are technical specifications that are publicly accessible and can be used by any provider – in contrast to proprietary interfaces of individual manufacturers. They prevent so-called lock-in effects, where companies are effectively bound to a single provider because switching is technically too complex or costly. The public sector should lead by example here.

What are EUDI Wallets, and how do they relate to companies? 

European Digital Identity Wallets (EUDI Wallets), including European Business Wallets, are digital identity applications allowing individuals and companies to securely and cross-border use their identity and credentials – for administrative processes, contract conclusions, or customer authentication. The DIHK advocates for consistent linking of wallets for individuals with business identities (European Business Wallets) to reduce bureaucracy and enable secure business processes. 

What does raw material supply have to do with digital sovereignty? 

All digital technologies – from AI data centers to quantum computers to mobile networks – require physical hardware that depends on critical raw materials such as gallium, germanium, or rare earths. Germany and Europe mainly source these materials from a few third countries, where geopolitical tensions may lead to export restrictions used as leverage. Digital sovereignty is, therefore, also a question of raw material and supply chain security.

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The complete DIHK position paper on this topic can be found here: