Ekholm Warns Europe on Sovereignty Dangers

Ericsson CEO Borje Ekholm cautioned that a European Union push to reduce dependence on US technology and pursue sovereignty is dangerous for the continent. Although he is aware that the relations between the US and the EU have become increasingly strained, Ekholm believes caution is necessary.

Speaking to Bloomberg at the World Economic Forum (WEF) in Davos, Ekholm said he is concerned about the whole narrative in Europe, adding he does not believe that the continent can become sovereign today. Ericsson and Nokia have benefited from restrictions being placed on Huawei and ZTE due to security concerns, a push that was originally led by the US and resulted in bans on the Chinese vendors’ equipment in several markets.

In the AI era, calls for Europe to also become independent from US technology have grown stronger, with major operators in the continent calling for regulatory reforms to make digital sovereignty a top strategic priority. The calls for the EU to switch to homegrown suppliers of AI chips and services have gotten even louder as US President Donald Trump threatens tariffs on countries in the bloc that oppose his calls for Denmark to transfer control of Greenland.

Ekholm is, however, not convinced, warning that building European alternatives to US-made technology would not only result in higher prices but would heighten a rift with President Trump’s government. Ekholm added he hopes there will be no overreaction on the European side. The Ericsson boss said in 2024 that the company would consider relocating its headquarters from Sweden to the US.