EU Budget Proposal Lacks Essential Support for Open Source

On July 16, the European Commission unveiled a groundbreaking €2 trillion budget proposal for the next seven years, marking the largest fiscal plan in the EU’s history. Aimed at enhancing autonomy, competitiveness, and resilience, the spending blueprint addresses key areas such as cybersecurity and innovation. However, a significant aspect is glaringly absent: funding for open source initiatives.
The Importance of Open Source in Today’s Digital Landscape
Open source software—developed and maintained by community contributions rather than solely by private companies—serves as the backbone of modern digital infrastructure. Since the 1990s, open source has integrated itself into the very fabric of European industry and public sector operations, creating a substantial reliance on open source applications and libraries.
From commercial devices and services to government systems and academic research, open source plays a crucial role in powering the internet and numerous platforms that we use daily. This model offers unmatched benefits like transparency, security, and flexibility, which proprietary software often lacks. By investing in open source, Europe can equip small businesses, universities, and public institutions with the necessary tools to compete against global tech giants.
The Budget Proposal’s Oversight
Despite the critical role that open source plays, the recent budget proposal does not allocate specific funding for such initiatives. This omission is particularly perplexing given the prominence that open source has garnered in recent European legislation, including the Cyber Resilience Act, the AI Act, and the proposed Cloud and AI Development Act. As Europe strives to enhance digital sovereignty and bolster cybersecurity, neglecting to support open source projects stands as a significant concern.
If Europe wishes to maintain its competitive edge and self-sufficiency in the digital arena, strategic and efficient support for open source is essential. Public investment must galvanize resources that the private sector, philanthropy, volunteers, and market forces alone cannot provide.
The Case for an EU Sovereign Tech Fund
Grassroots innovation funding has been the foundation for the EU’s limited investment in open source. Consequently, there’s a pressing need to scale these technologies into core elements of digital infrastructure.
To address this, OpenForum Europe, an organization focused on open technologies, recently published a landmark report advocating for a dedicated "EU Sovereign Tech Fund." This fund would back European technology projects crucial for digital sovereignty, placing open source at its core. The proposal builds on the German Sovereign Tech Fund, which has effectively supported global open source collaboration.
A dedicated fund could significantly alter the landscape. Without investments in open source, Europe risks becoming overly dependent on foreign technologies, exposing itself to external threats and compromising its competitive stance in global markets. Open source enables Europe to cultivate its own tech infrastructure, thereby enhancing control, transparency, and security.
This initiative doesn’t promote isolationism; rather, it aims to invest in the autonomy and resilience of digital infrastructure on a global scale. The long-term benefits extend not only to Europe itself but also support alternative technological models that challenge dominant trends from the US—characterized by platform monopolies and market-driven control—and from China, which emphasizes state-directed environments.
In contrast, Europe’s open source framework advocates for a pluralistic and collaborative approach, focused on transparency, interoperability, and public value, making investment in the global open source ecosystem not just beneficial but essential.
A Missed Opportunity with the European Competitiveness Fund
The proposed European Competitiveness Fund, a key financial tool under the new budget, does not recognize open source as a strategic investment area, either at a macro level or through detailed actions related to digitalization. This oversight is a significant concern. Given that this fund is designed to drive innovation and digitalization across Europe, omitting open source represents a missed opportunity that can easily be rectified.
Failing to allocate funds for open source could soon be perceived as a short-sighted approach, undermining Europe’s digital transformation amid an increasingly multipolar and competitive geopolitical landscape. EU leaders must prioritize open source in their seven-year budget strategy by explicitly incorporating it into the digitalization objectives of the European Competitiveness Fund. Establishing the EU Sovereign Tech Fund, along with other targeted investments in open source, will be crucial for achieving their overarching goals.
This opinion piece is authored by Daniel Stenberg, co-founder and lead developer of cURL, a widely-used command-line tool designed for transferring data with URLs. Stenberg also serves as president of the European Open Source Academy.
For further insights into open source technologies and European initiatives, you might find this article on AI in Europe informative.
For a deeper dive into technology and its implications, visit TechCrunch.
