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by guiriduro
336 days ago
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Major Cloud providers would still need to invest eu-customer money in providing eu IT services, this is more a legal, security and privacy isolation for big tech players in order to maintain their share, extract royalties etc. Startups that are not in a large marketshare situation wouldn't trigger the need for intermediary/isolation so the effect on FDI would be limited, and anyway, the tides are turning on US capital in general. Retaliation: I'm not sure the US fiscal and legal overreach isn't already in place, e.g. VW dieselgate, export controls etc. The US looks after its interests (fair enough), but its time the EU levelled the field to protect its citizens, a small loss of regional sovereignty for those companies in exchange for the EU revenue they continue to make. |
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That's already done today with little-to-no acrimony, and none of the regulations you mentioned. Where do you think much of that FDI in Ireland, Poland, Czechia, Romania, and Bulgaria is coming from?
> Startups that are not in a large marketshare situation wouldn't trigger the need for intermediary/isolation so the effect on FDI would be limited, and anyway, the tides are turning on US capital in general
It's not just startups. American BigTech GCCs represent the bulk of tech related FDI in Czechia, Romania, Poland, and Bulgaria, and Ireland's US-friendly business law has lead to a severe dependency on the US for capital [1].
> the tides are turning on US capital in general.
American Capital markets continue to remain larger in size than the entire EU's combined [0]. And China's is roughly in size to the entire EU. An the reality is, European capital markets are nowhere near as unified as either the US or China's.
> its time the EU levelled the field to protect its citizens, a small loss of regional sovereignty for those companies in exchange for the EU revenue they continue to make
But how?
The EU isn't significantly unified, and depends on unanimity within the European Council. As I mentioned before, Ireland, Czechia, Romania, Bulgaria, and Poland would be a significant veto to any shift against the US.
Furthermore, French and German domestic giants continue to compete against each other in every industry, which has lead to cooperation failures such as the FCAS snafu recently [2].
There is no "EU grand strategy", as major member states like Germany, France, and others push back or compete with each other internally.
And given the fact that the Chinese players are cannibalizing European competitors within China, major European companies like Volkswagen and Siemens are now heavily dependent on the US as an alternative market.
[0] - https://www.sifma.org/wp-content/uploads/2023/07/2024-SIFMA-...
[1] - https://www.cso.ie/en/releasesandpublications/ep/p-fdi/forei...
[2] - https://on.ft.com/4n77YpQ