OpenForum Europe (OFE) has released its much-anticipated report, Funding Europe’s Open Digital Infrastructure: A Study on the Economic, Legal, and Political Feasibility of an EU Sovereign Tech Fund (EU-STF). Developed in collaboration with Fraunhofer ISI and the European University Institute, the study makes a forceful case for a mission-driven, EU-wide investment vehicle to address systemic underfunding of the open digital infrastructure Europe depends on.
With over 70% of modern software built on open source, chronic underinvestment creates systemic risks that Europe cannot afford to ignore. Cybersecurity vulnerabilities, supply chain fragility, and strategic dependence on non-European technology providers all stem from the same structural problem: the sustainability and security of open digital base technologies – those packages, components, and libraries beneath the application and services layer – is frequently built and maintained in a patchwork way. While the private sector has done a lot to support the open source ecosystem, we need a more diverse pool of investment – particularly at the most foundational layers – to support their sustainability and security.
As Astor Nummelin Carlberg, OFE’s Executive Director, put it: “Open source is the premier strategic tool for strengthening Europe’s digital sovereignty and competitiveness. But as political recognition of its potential for accelerated innovation rapidly grows, the long-term maintenance of its global digital foundations must not be overlooked. Open source is 21st-century infrastructure – and like all critical infrastructure, it requires investment.”
Open Source as Europe’s Strategic Compass
Open source is not merely a technological choice; it is a strategic asset – one that embodies European values of openness, collaboration, and shared innovation while reducing dependency on non-European technology providers. The report provides a roadmap for establishing an EU Sovereign Tech Fund (EU-STF) to secure and maintain critical open source technologies essential for Europe’s digital sovereignty, cybersecurity/cyber resilience, and competitiveness. It places open source at the very heart of Europe’s digital policy ambitions, arguing that public-led, mission-driven investment is indispensable to safeguarding and strengthening the foundations of Europe’s digital future.
Why is this a matter of public responsibility? Just as Europe invests in roads, bridges, and energy grids, it must also treat open source as a shared public good – a critical layer of open digital infrastructure that underpins everything from cybersecurity to industrial innovation. Private sector contribution, volunteer support, and market-driven sustainability models have been essential for the proliferation of open source, but what we need is more diversified funding through a mission-driven public investment instrument. Public-led, coordinated investment is therefore not just an economic opportunity but a strategic imperative for Europe.
For Europe, open source is more than just an infrastructure issue – it is an opportunity born out of its position as the ‘challenger’ in a global technology landscape dominated by the United States and China. Unlike these incumbents, which have built power through proprietary platforms, vast commercial ecosystems, and state-backed corporate champions, Europe’s strengths lie in openness, interoperability, and collaborative innovation. Such investment is not just about “catching up” technologically but about shaping global collaboration and norms in a way that reinforces Europe’s autonomy and resilience in key technological domains.
What is an EU Sovereign Tech Fund?
The proposed EU-STF is envisioned as a pan-European, mission-driven initiative, modelled on Germany’s successful Sovereign Tech Fund but scaled up to meet the EU’s strategic needs. With a proposed budget of at least €350 million over seven years, it would invest in the maintenance, security, and improvement of key open source components, map and address critical dependencies, and fund activities to strengthen the broader ecosystem.
What sets the EU-STF apart is its explicitly mission-driven design. It is not about ad-hoc or fragmented funding but about building a coherent, strategic instrument that treats open source as open digital infrastructure. The feasibility study identifies seven core design principles – tested in Germany and adapted for the EU context – that are essential to making the fund a success:
- Pooled Financing: By combining EU, Member State, and industry contributions, the fund spreads financial responsibility, diversifies risk, and ensures long-term sustainability.
- Low Bureaucracy: Application and reporting processes must remain lightweight, lowering barriers for small, resource-constrained developer teams while making funding accessible to the full breadth of the open source ecosystem.
- Political Independence: The fund should be shielded from short-term political cycles, maintaining a clear, mission-driven focus on infrastructure health rather than shifting political priorities.
- Flexible Funding: Funding should be tailored to the diverse needs of open source projects, from rapid-response security fixes to multi-year maintenance investments.
- Community Focus: Decision-making must actively involve the open source community, ensuring funding goes where it is most needed and respects existing ecosystem governance structures.
- Strategic Alignment: Investments should prioritise components critical to Europe’s security, competitiveness, and digital sovereignty, ensuring that resources are directed to projects with systemic impact.
- Transparency: Open reporting on funding decisions, governance, and impact will foster trust and accountability among developers, industry partners, and policymakers alike.
These principles are not abstract ideals; they are practical lessons learned from the German STF, where such an approach has already led to tangible improvements in the security and resilience of key open source components. By embedding these principles into the EU-STF’s design, Europe can ensure that its investments deliver not only immediate technical benefits but also builds systemic and long-term autonomy and resilience, as well as technological leverage.
Two funding scenarios are proposed for the EU-STF in the report:
- A standalone, centralised EU fund – created by legislation and secured via the next Multiannual Financial Framework (MFF) negotiations.
- A hybrid/shared management model – leveraging existing EU frameworks (such as EDICs) to pool contributions from Member States, the EU, and industry.
Both approaches share the same mission: to secure Europe’s digital foundations, but each comes with trade-offs. A centralised fund offers visibility and a significant volume of capital, whereas a hybrid approach preserves flexibility and political independence and could be launched faster, without legislative change. Crucially, neither model should place the budgetary burden solely on the EU; diversified financing – including private-sector co-investment – is essential for long-term sustainability.
Call-to-Action: Europe Must Build the EU-STF
Now is the time to do something for open source. The EU has a unique opportunity to institutionalise investment in openness at scale through a continent-wide fund, positioning Europe as a leader in open technology globally.
This sentiment is echoed across Europe’s open source ecosystem. Daniel Stenberg, lead developer of cURL and Preisdent of the European Open Source Academy, emphasised that: “Current digital infrastructure is to a large degree built on layers and layers of open source, and yet a substantial part of this open source is built and maintained by enthusiasts or other financially and resource-constrained teams. Funding options like the EU-STF proposal can truly help enforce the ecosystem and offer new paths towards sustainability.”
Germany’s Sovereign Tech Fund has already shown what is possible by supporting critical open source libraries, encryption protocols, and developer tools. Says Adriana Groh, co-founder and CEO of the Sovereign Tech Agency: “The Sovereign Tech Fund acknowledges a shared European responsibility: to invest in open source as the backbone of innovation, security, and competition. With a proven model in place, we’re proud to take this mission forward with partners across the EU.“
Industry voices are also calling for action. Magnus Östberg, Chief Software Officer at Mercedes-Benz AG, notes: “Open source accelerates innovation across the automotive industry. But to maintain this shared infrastructure at scale, we need strong, reliable public-private collaboration. EU-STF sets exactly the right course.” This sentiment is echoed by SAP in their foreword to the report, where the company notes that: “By introducing government-backed funding via the EU-STF initiative, Europe can elevate open source to a truly resilient, sovereign digital infrastructure. This synergy assures long-term security, enhances freedom of choice, and empowers both public services and European businesses.”
The political will to act has never been stronger. OFE calls on the European Commission, Member States, and industry partners to take a step back and seize this moment and invest in open source. Anything less is short-sighted and risks undermining Europe’s delivery of its digital policy agenda.
This report would not have been possible without generous funding from GitHub and the Digital Infrastructure Insights Fund. The final report is now available under a Creative Commons license at eu-stf.openforumeurope.org.