Welcome to ICYMI – a weekly snapshot of European news stories that have given me pause for thought. ICYMI is a chance for you to go beyond the front-page headlines and find out what other stories may be worthy of your attention. This week:
- Europe proceeds with caution as trust in the US wobbles
- British entrepreneurs are seeking opportunity overseas
- France makes a €15 billion bet on AI and emerging tech
Surprise, surprise, it’s been another eventful week for global businesses. In Europe, relations with the US are looking a little frayed, as the repercussions from Trump’s tariffs and protectionist policies continue to be felt in the region. According to a WTO forecast, however, it is the US that will in fact experience the greatest impact, in terms of declining trade volume and shrinking GDP.
Tensions between Europe and the US around tech competition, security, and data privacy have been building for some time, but things reached a new level this week with the US offering European companies an ultimatum: buy American satellite tech with confidence or take a chance with Chinese communications infrastructure.
With concerns heightened around the reliability of Elon Musk’s Starlink satellite service, after the US threatened to cut off Ukraine, and European-owned solutions not able to match the same amount of coverage, the Financial Times reports that Brendan Carr, Chairman of the Federal Communications Commission has told European governments it’s time to choose: either go with Starlink or take a risk with communications infrastructure controlled by the Chinese Communist party (CCP).
In the past, that may have seemed like a clear-cut decision, but with concerns over US-sponsored espionage on the rise, it’s not so black and white. In the last week, the European Commission has advised officials to use burner phones and signal-blocking sleeves when traveling to America. This puts the States in the same category as “higher risk” locations such as China or war zones like Ukraine.
In light of the “new normal”, European companies are proceeding with caution. Across the region, businesses are said to be rethinking their reliance on US tech and data providers, creating a new challenge for communications teams to navigate.
In the Netherlands, Financieel Dagblad reports that a growing number of companies are exploring alternatives to major American cloud services like Amazon, Google, and Microsoft. While the French are taking on American dominance of the cloud market with the launch of a strategic committee tasked with doubling the market share of French-owned providers before the end of the decade.
British entrepreneurs head for the exit
While Europe rethinks how to work with the US, in the UK some entrepreneurs appear to be adopting an “if you can’t beat them, join them” approach.
With the FT reporting that UK-led VC investment is at its lowest level since the pandemic, a growing number of British start-ups are said to be moving to the US in search of greater capital and more business-friendly policies.
Interestingly, it’s not just early-stage companies considering a move. A recent survey published by City AM found that one in nine UK small business owners is thinking about relocating to the US or elsewhere, in response to high taxes, regulatory complexity, and a need for more supportive growth policies.
France goes all-in on AI investment
Across the channel, France is moving forward with confidence. In recent years, the country has emerged as a major player in the AI sector, attracting more than 22% of global AI investment and hosting the Global AI Summit earlier this year.
This momentum shows no signs of stopping, with France announcing a major update to its “France 2030” investment plan last week. €15 billion is to be directed toward priority sectors such as AI, quantum computing, space, and energy technologies. The move signals a strong commitment to invest in high-growth tech industries and reflects France’s desire to strengthen its leadership position in the years ahead.
