[Sayrus]

Yes and no. While it doesn't change anything if you're on AWS/Azure/GCP and other providers, this basically sink funds from institutions to private companies who have no interest in actually delivering a working cloud provider.

There are existing providers in Europe who have small clouds with less services and integrations, and sometimes not the same performance or reliability as well (such as Scaleway, OVH, Hetzner, ...) who could use those funds to improve their offering and provide a realistic alternative to foreign cloud providers.

This does not prevent companies from building sovereign cloud, but it cuts public funding where it's the most needed.

There is IPCEI CIS which aims at actually helping building a cloud provider rather than standards but I don't know much about it.