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Land Grab: Inside Israel’s Escalating Campaign for Control of the West Bank

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Land Grab: Inside Israel’s Escalating Campaign for Control of the West Bank

Every Saturday, sheep owned by Jewish settlers march through the olive groves that Rezeq Abu Naim and his family have tended for generations, crushing tree limbs and damaging roots. The extremist settlers, armed and sometimes masked, lead their herds to drink from the family’s scant water supplies while Mr. Abu Naim watches from the ramshackle tents of Al Mughayir, where he lives above the valley.

“I beg you, I beg you. God, just let us be,’” Mr. Abu Naim recalled telling settlers during a recent confrontation. “Just go away. We don’t want any problems.”

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Vast stretches of his family’s farm and wheat have been seized by Israeli settlers who have set up outposts, illegal encampments that can eventually grow to become large settlements, on the nearby hills.

New roads cut through the land on which his own flock of sheep graze — and settlers routinely steal the animals, he said. Six months ago, a masked settler armed with a gun broke into his family home at 3 a.m., he recalled. He described raiders tearing through his son’s nearby home at night last December, slashing tents and stealing solar panels.

The family takes turns at night guarding their sheep against attacks from settlers. On a recent day, we found Mr. Abu Naim resting on pillows, a portable radio pressed to his ear listening for regional news.

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Go away. Go away from here. Leave, Mr. Abu Naim said the settlers have told him repeatedly.

“I’m 70 years old, and I’ve been here all my life,” he replies. “But you came yesterday, and you want me now to leave, to go home.”

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“This is my home.”

The fate of a farmer trying to wrest a livelihood out of a landscape dotted since biblical times by sheep and gnarled olive trees may seem distant from a modern world of clashing superpowers.

But these remote hilltops and hamlets sit at the leading edge of an intractable geopolitical conflict.

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Even as the war in Gaza commanded the world’s attention over the past two years, the facts on the ground were shifting in the West Bank, intensifying the battle for control of the lands of Bethlehem and Jericho, Ramallah and Hebron.

For many Palestinians, they are the foundation of a future state of their own — and a future peace. But for many Jews, they are a rightful homeland.

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Extremist Jewish settlers and Palestinian farmers are the foot soldiers in this endless conflict, an extension of the war in 1948 that accompanied the establishment of Israel. And since the Oct. 7., 2023, attack on Israel by Palestinian militants from Gaza, Israel’s far-right government has embraced a playbook of expanding settlements across the West Bank, transforming the region, piece by piece, from a patchwork of connected Palestinian villages into a collection of Israeli neighborhoods.

The unrelenting violent campaign by these settlers, that critics say is largely tolerated by the Israeli military, consists of brutal harassment, beatings, even killings, as well as high-impact roadblocks and village closures. These are coupled with a drastic increase in land seizures by the state and the demolition of villages to force Palestinians to abandon their land.

Many of the settlers are young extremists whose views go beyond even the far-right ideology of the government. They are not generally operating on direct orders from Israel’s military leadership. But they know the military frequently looks the other way and facilitates their actions.

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In many cases, it is the military that forces Palestinians to evacuate or orders the destruction of their homes once settlers drive them to flee.

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Accelerating violence and displacement in the West Bank

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Sources: U.N. Office for the Coordination of Humanitarian Affairs; Peace Now (outposts and state land)

We attempted to speak to settlers near two of the West Bank villages that have been the targets of such pressure. None were willing to speak with us.

In a statement, the Israeli military said that its “security forces are committed to maintaining order and security for all residents of the area and act decisively against any manifestations of violence within their area of responsibility.”

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The far-right Israeli government has been transparent about its mission: to sabotage what diplomats call the two-state solution and its goal of an Israeli and a Palestinian nation living side by side. “Every town, every neighborhood, every housing unit,” Bezalel Smotrich, the ultra-right-wing finance minister, said recently, “is another nail in the coffin of this dangerous idea.”

For years, the United Nations, the United States and much of the Western world have warned that the continuous expansion of Israeli settlements would eventually make the establishment of a contiguous Palestinian state impossible.

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Across the West Bank, there is desperation among Palestinian villagers and farmers as they watch the takeover of their lands at a pace never seen before. And there is fear that the changes are already becoming irreversible.

We spent more than two months in a dozen villages in the West Bank, meeting with Palestinian families, local officials, Bedouin farmers and young human rights activists, often visiting from abroad. We watched as groups of young Israeli settlers showed up in Palestinian villages to harass or intimidate them.

We met a family in Tulkarm whose 21-year-old daughter, Rahaf al-Ashqar, was killed in February by an explosion set off by Israeli soldiers who raided their home, claiming they were looking for terrorists.

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We saw a 16-foot fence covered with razor wire that was built this year in the town of Sinjil that now separates Walid Naim from his family’s orchards.

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We watched settlers block the road and try to stop Palestinian farmers from leaving their land after harvesting their olive trees in October.

In October, after settlers and soldiers stormed the gate of Masher Hamdan’s farm in the village of Turmus Aya, he decided to evacuate his sheep, goats, lambs and poultry to save his livelihood.

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The New York Times studied mapping data and court orders that document the expansion of claims by the Israeli government to land that had long been in Palestinian hands. We photographed the construction of Israeli roadblocks designed to limit Palestinian movements and saw the installation of fences that cut off farmers from their land.

The Israeli onslaught has all but vanquished a free Palestinian existence in the West Bank. While the Palestinian Authority governs part of the West Bank, the Israeli military remains the occupying power of the whole territory, and military law supersedes the authority’s rule.

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There is little due process and villagers live at the mercy of vigilante settlers and members of military platoons who exert almost total power over them. Settlers, who are subject to Israeli civil and criminal law rather than the military’s jurisdiction, are rarely detained or arrested for extremist or violent actions, while the military routinely rounds up Palestinians with little explanation or justification.

In late November, the Israeli military launched what it called a counterterrorism operation in the West Bank city of Tubas, arresting 22 Palestinians. On Dec. 10, Israeli officials approved construction of 764 homes in three West Bank settlements. The day before, the military uprooted about 20 acres of olive trees in a village south of Nablus.

How to Empty a Village

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The campaign to isolate Palestinians and drive them off their land is evident in Al Mughayir, about 20 miles north of Jerusalem. What used to be a thriving Palestinian village has been surrounded by Jewish settlements, and villagers like Mr. Abu Naim have been squeezed into increasingly smaller areas, cut off from their land and their livelihoods.

Al Mughayir is one of several small Palestinian villages clustered roughly in the center of the West Bank, all of which have been relentlessly targeted in recent months by settlers and the Israeli government.

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This is the pattern that has played out across the West Bank, transforming the entire territory.

A Jewish outpost, not authorized under Israeli law, pops up — a small trailer, perhaps, or a large tent housing just a few young men. Settler attacks soon follow. Then come the military orders demanding evacuations of Palestinian communities and the installation of large, iron roadblocks cutting off Palestinian villagers from the rest of the West Bank.

Over weeks and months, the outposts grow and are often eventually authorized by the Israeli government. Settlers build homes, businesses, schools and roads to accommodate hundreds and eventually thousands of Jewish families. In the Palestinian villages, the opposite happens. Schools are shuttered, farmers are cut off from their lands, and homes are destroyed.

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Destroyed Bedouin homes near Al Mughayir.

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The campaign started in earnest after Prime Minister Benjamin Netanyahu returned to office in 2022 and accelerated after the war began. In 2024 and 2025, Israelis built about 130 new outposts, more than the number built in the previous two decades, according to Peace Now, an Israeli activist group that tracks settlement expansion.

Erasure

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The flip side of the construction is destruction.

Across the West Bank, settlers and the military razed more than 1,500 Palestinian structures in 2025 — double the annual average in the decade before the war.

The dismantling of one long-established Palestinian community, East Muarrajat, began not long after a settler attack. On July 3, settlers, aided by members of the Israeli military, went house to house through the village where Bedouin families had lived for several generations in the white sand hills of the Jordan Valley, just north of Jericho.

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The residents, who had already suffered years of harassment, decided that night to abandon their homes in the middle of the night when dozens of masked settlers, many of whom appeared to be drunk, showed up on four-wheeled ATVs. Some brandished guns as they raced through the village on the vehicles and circled crying women and children.

The settlers rammed the vehicles into people’s homes, then ransacked them, tearing down furnishings and throwing belongings outside while screaming obscenities.

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“It was like the whole village was a compound of people screaming and yelling,” recalled one villager, Mohammed Mlehat. “We were afraid of things that are unspeakable, because they were dozens of young men who seemed to be drugged or drunk.”

A statement by the Israeli military said soldiers arrived in East Muarrajat that night after receiving reports of “friction” between Palestinians and settlers but “no violent incidents were identified.”

Fearful of more attacks, the villagers left that night, Mr. Mlehat said, and the destruction of the homes happened in the days and weeks that followed. His family now lives in tents without access to drinking water or electricity, just a few miles from where the village, now reduced to mostly rubble, once stood.

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Among the few buildings still standing in East Muarrajat is an abandoned school that began operating in 1964. Through broken classroom windows, there are SpongeBob curtains still visible and school supplies scattered on the ground. A playground is littered with discarded hula hoops and backpacks strewn about.

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Expelled villagers building makeshift homes.

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An abandoned school in East Muarrajat.

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A settler herding animals by Bedouin homes.

Mr. Mlehat’s nephew, Jamal Mlehat, said the attacks showed the hypocrisy of settlers who seek sympathy, saying they want only to establish homes for themselves. He cited a Bedouin proverb: “You attack with the wolf and you cry with the sheep.”

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“This is what they did with us,” he said.

Unending Harassment

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The episodes of intimidation rarely let up.

The number of attacks by extremist settlers in the West Bank has skyrocketed in the last two years. In October, there were an average of eight incidents per day, the highest since the United Nations began keeping records two decades ago.

That coincided with the start of the olive harvest in the West Bank, when many Palestinian farmers have just four weeks to secure their livelihoods from the ancient trees that cover the region’s valleys and hills.

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We saw Yousef Fandi and his brother, Abed Alnasser Fandi, being attacked in a field of olive trees in the village of Huwara on the morning of Oct. 9. They told us later that day that they had been tending the family olive grove when they were surrounded by settlers.

One was on horseback, armed and masked. Two others walked beside him. A fourth carried an assault rifle.

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“What are you doing here?” demanded the man with the gun, leveling the weapon at them, Yousef Fandi recalled.

The settlers took the men’s phones, ordered them to the ground and proceeded to kick them in the ribs and head for about a half-hour, a scene we witnessed ourselves. Blood spotted Mr. Fandi’s shirt as he later recounted the beating to us.

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“I thought that they might shoot us,” he said.

Since Oct. 1, the United Nations reports, 151 Palestinians have been injured in more than 178 separate attacks on olive harvesters. About half were tied to settlers and the rest to soldiers, the organization said.

By the time the Israeli soldiers arrived that morning in the village of Huwara, southwest of the city of Nablus, a large group of villagers had gathered, joined by journalists and activists who had heard about the clash.

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The soldiers told the settlers to leave — but bore bad news for the Palestinians eager to return to their harvest.

As the villagers pushed to gain access to the fields, one of the soldiers waved a copy of a military order. A map on the document showed the olive orchard in Huwara completely covered in red, indicating that Palestinians were not allowed in the area for the next 30 days.

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“The order was signed following an operational situation assessment,” the Israeli military said in a statement in response to questions. “Accordingly, farmers were informed that they would not be permitted to harvest in the area at that time.”

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Settlers attacking the Fandi brothers.

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An Israeli soldier with the land-closure order.

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Mohamed Suleiman, 76, with his olive trees felled by settlers.

Military orders have become a staple of the Israeli settlement drive in the West Bank, with the government often declaring territory to be “state land” and denying Palestinian claims to family-owned property.

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The clash in Huwara that day ended the way many others did during the olive harvest: with the farmers denied access to their fields.

“I have the documents of this land,” Yousef Fandi protested. “This is my land.”

Deadly Confrontations

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For Sayfollah Musallet, a 20-year-old Palestinian American, one of the clashes with settlers turned deadly.

One Friday in July, young Israeli settlers cascaded down from their hilltop outpost above Sinjil, armed and masked, instigating a clash with Palestinian farmers whose land the settlers claimed as their own.

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A pickup truck driven by the settlers ran into a crowd of Palestinians and activists, breaking one man’s leg before speeding off, according to Jonathan Pollak, an Israeli activist who witnessed the incident. When a Palestinian ambulance arrived, settlers pelted it with rocks and batons, cracking its windshield, Mr. Pollak said.

During the confrontation, Israeli settlers beat Mr. Musallet to death, according to his family members and the Palestinian authorities. Mike Huckabee, the American ambassador to Israel and a staunch supporter of the Netanyahu government, called the death a “criminal and terrorist act” and demanded that the Israeli authorities “aggressively investigate” it.

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Masked settlers hurled stones in Sinjil.

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Soldiers kept Palestinians from their wounded.

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Sinjil villagers were taken for treatment.

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A second Palestinian man, Mohammad Shalabi, 23, was also killed during the clash. His body was found by villagers late that night with a gunshot wound and extensive bruising on his face and neck, according to his uncle.

Both men were buried at a funeral two days later that was attended by hundreds of villagers.

In the past three years alone, there were more than 1,200 Palestinian fatalities in the West Bank, nearly double the number for the decade before that, the United Nations reports.

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A statement about the incident in Sinjil from the Israeli military said that “terrorists threw stones at Israeli civilians near the village” and said that the incident was being investigated.

Mr. Pollak, who was helping the Palestinians in Sinjil and was arrested by the Israeli military that day, said the violence by the settlers was part of a clear pattern.

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“I want to say it was an inconceivable tragedy, but really, tragedy isn’t the right word,” he said. “You know, a tragedy is a force of nature. A tragedy is being hit by a lightning bolt. This is not what happened here.”

Renewed Attacks

For Mr. Abu Naim, the farmer in Al Mughayir, the threats to his family have not stopped.

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On Sunday, Dec. 7, at 1:40 a.m., eight masked settlers armed with clubs attacked the caves and tents where Mr. Abu Naim and his nine children and grandchildren live. Six members of the family were sent to the hospital, including his 13-year-old grandson, who suffered cuts and bruises to his head.

The scene was described to us by activists, several of whom were sleeping at the home and were also injured. One of them, Phoebe Smith, who is from Britain, was wakened by screams, she said. When she went outside, she was attacked, too.

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“I was outside of the tent, being beaten by them around the torso, the legs, the head,” Ms. Smith recalled as she recovered in Ramallah. “It was terrifying. Really terrifying.”

The Dec. 7 onslaught lasted about 10 minutes, she said. The attackers turned over furniture, grabbed three phones and used Ms. Smith’s laptop computer to beat several of the family members. They did not enter another tent, where Mr. Abu Naim’s daughter, nearly nine months pregnant, was cowering inside with two children.

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A cave became home for some in the Abu Naim family.

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Mr. Abu Naim guarding his sheep.

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Some of the Abu Naim children playing near the cave.

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Before heading out, the settlers issued a warning: Leave for good within two days, they said, or we will return and burn you in your home.

The Israeli military did not show up on Dec. 7. But three days later, on Dec. 10, settlers did return for another round of intimidation. Then a few hours later, activists said, five military jeeps carrying 20 soldiers and border police officers arrived with an order declaring the family’s compound a closed military zone.

Two activists were detained, and Mr. Abu Naim’s pregnant daughter and several children fled to safety. On Dec. 12, the military returned and extended the closure for 30 days. In a statement, the Israeli military said Palestinians instigated the Dec. 10 clash by throwing stones and rolling burning tires toward Israelis, which the villagers deny.

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The statement said the area was declared a military zone on Dec. 12 “to maintain calm in the area following a prolonged period of tension.”

From the rocky edge of a cliff overlooking the valley, Mr. Abu Naim can keep an eye on his sheep. He can see the Jewish outposts that have sprung up in recent months. And he can try to spot any settlers headed toward his home to warn his children and grandchildren.

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The war in Gaza, Mr. Abu Naim said, was a turning point.

“We used to come and go, mostly without any problems,” he recalled recently. “If we met the army, they would ask for our IDs. We give them. We went back and forth. We didn’t have the same problems.”

“But,” he added, “these guys are completely different.”

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Video: A Death at the Epicenter of Ebola

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Video: A Death at the Epicenter of Ebola

new video loaded: A Death at the Epicenter of Ebola

Our chief Africa correspondent, Declan Walsh, reports from the epicenter of the Ebola outbreak on how families, medical workers and local volunteers are grappling with losses of life.

By Declan Walsh, Estelle Caswell, Thomas Vollkommer and Arlette Bashizi

June 3, 2026

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US ally Kuwait condemns ‘brutal and ongoing Iranian attacks’ after airport was hit

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US ally Kuwait condemns ‘brutal and ongoing Iranian attacks’ after airport was hit

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Kuwait decried Iranian attacks in a statement issued by its foreign affairs ministry, saying that the Kuwait International Airport had been targeted.

“The Ministry of Foreign Affairs expresses the State of Kuwait’s condemnation and denunciation, in the strongest terms, of the brutal and ongoing Iranian attacks using ballistic missiles and drones, the latest of which occurred at dawn today, targeting once again civilian and vital facilities, including Kuwait International Airport, resulting in the death of one individual, injuries to others, and damage to vital facilities, including diplomatic missions,” part of the statement declared, according to a translation of the Arabic-language post on X.

Kuwait’s Ministry of Defense spokesperson had indicated that a building at Kuwait International Airport was damaged and people were injured, according to a post on X by the official account of Kuwait Army general staff headquarters.

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People are seen at Kuwait International Airport in Kuwait City, Kuwait, on June 1, 2026. (Jaber Abdulkhaleq/Anadolu via Getty Images)

“The Official Spokesman for the Ministry of Defense, Brigadier General Saud Abdulaziz Al-Otaibi, stated that a number of hostile drones targeted today the passenger building (T1) at Kuwait International Airport as a result of the criminal Iranian aggression, which resulted in significant material damage to the building and injuries to a number of individuals, who received the necessary medical care,” according to a translation of the Arabic-language post.

“He affirmed that the armed forces are monitoring the situation in coordination with the relevant authorities, and they are in a state of complete readiness to deal with any developments, and to take all necessary measures to preserve the security of the country and its stability,” the post added.

The Iranian hostilities come more than three months since the start of the U.S. war against the Islamic Republic.

In a Tuesday statement, U.S. Central Command (CENTCOM) indicated that America had engaged in “self-defense strikes” against Iran.

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US MILITARY ATTACKS IRAN IN ‘SELF-DEFENSE STRIKES’ OVER WEEKEND

Imam Sadiq (AS) mosque with a giant Iranian flag installed on its front at the Palestine Square in Tehran on April 19, 2026. (ATTA KENARE / AFP via Getty Images)

“U.S. forces successfully defeated multiple Iranian ballistic missiles and drones, and conducted self-defense strikes on Qeshm Island in response to attempted attacks by Iran across the Middle East, June 2. Iran launched several ballistic missiles toward regional neighbors; however, all failed to hit their intended targets. Two Iranian missiles fired at Kuwait fell short or broke apart enroute, and three missiles launched at Bahrain were immediately intercepted by U.S. and Bahrain air defense forces,” the release noted.

“Moments earlier, U.S. Central Command (CENTCOM) forces shot down three one-way attack drones launched by Iran toward civilian mariners that were rightfully transiting regional waters. American forces also conducted self-defense strikes on an Iranian military ground control station on Qeshm Island. No U.S. personnel were harmed. CENTCOM forces remain vigilant and ready to defend against unwarranted Iranian aggression during the ongoing ceasefire,” the statement added.

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Secretary of War Pete Hegseth listens as Adm. Brad Cooper, commander of U.S. Central Command, speaks during a press briefing at the Pentagon on April 16, 2026, in Arlington, Va. (Alex Wong/Getty Images)

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CENTCOM noted in a post on X that, “An additional wave of Iranian drones attempting to attack U.S. forces in Kuwait failed to impact intended targets tonight. U.S. Central Command air defenses successfully downed multiple drones and ensured no American personnel or assets were harmed.”

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EU launches major tech push to break US and China dependence

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EU launches major tech push to break US and China dependence

The European Commission has presented a sweeping package to boost homegrown technologies and reduce dependency on American and Chinese companies. Whether it will make a meaningful difference — and how the two superpowers will react — remain open questions.

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The EU imports most of its tech services and products from abroad. The digital market is dominated by US giants such as Google, Microsoft and Apple, and Chinese conglomerates such as Alibaba and TikTok-owner ByteDance.

“We live in a world where geopolitics and technology are inseparable. Those who champion technological innovation will shape the future, and we must ensure that Europe plays a leading role in this,” European Commission Executive Vice President Henna Virkkunen said.

The package seeks to boost Europe’s domestic tech sector, with a heavy focus on cloud infrastructure, AI services, open source and chips.

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In his landmark report on the languishing state of the European economy, former Italian Prime Minister Mario Draghi argued that most of the recent divergence in GDP growth between the EU and the US could be explained by digital technologies.

Having missed the first wave of the digital economy — the internet-driven services boom — Draghi warned that Europe’s last chance to rejoin the international tech race was not to be missed, namely the transformative potential of artificial intelligence.

While growing dependency on foreign technologies had been widely known among European decision-makers for decades, US President Donald Trump’s assertive trade agenda and China’s willingness to weaponise such dependencies have provided fresh momentum.

Will Brussels’ move be enough to shift the dial, or is it too little too late? And what will be the economic cost of severing deeply entrenched dependencies if the EU draws the ire of Washington and Beijing?

What’s in the package?

The main target of the European Commission’s proposal is the cloud sector, which provides the physical infrastructure underpinning most digital services. Amazon, Microsoft and Google account for 80% of the European market, with EU-based providers relegated to the margins.

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The draft law introduces four different levels of digital sovereignty that public authorities must consider when purchasing cloud services, depending on how sensitive the use case is.

The highest tier, covering sectors such as defence and healthcare, would effectively bar non-European companies from winning public contracts. The aim is to prevent a so-called “kill switch” scenario, the risk that a foreign government might simply cut off access to hospitals or fighter jets.

For MEP Axel Voss (EPP/Germany), the Commission’s approach is both bold and pragmatic. “Building genuine European cloud and AI sovereignty is overdue, and giving our providers a fair seat at the table in strategic public tenders is the right instinct,” he said.

Europe also needs to catch up on chips — the fundamental components at the heart of almost every electronic device. The most advanced chips, used to develop cutting-edge AI technologies, are designed in the US and produced in Taiwan or South Korea.

After the first Chips Act failed to significantly bring semiconductor factories back to Europe through state subsidies, the Commission is trying again — this time focusing on stimulating demand for European chips, on the assumption that supply will follow.

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Certain key sectors, such as automotive, will also be required to diversify their chip suppliers in certain circumstances, as part of a broader effort to reduce reliance on Chinese-subsidised producers accused of flooding the market through dumping.

Will it be effective?

The guiding principle of the initiative is AI — the transformative technology that, much like the internet before it, is reshaping the digital economy. Cloud data centres and chips provide the essential infrastructure for the next generation of AI.

Yet the AI market is dominated by the likes of OpenAI, Anthropic and DeepSeek. A European preference in lucrative defence contracts could serve as a lifeline for Mistral AI, the only EU-based company at the cutting edge of the AI race.

The EU lags significantly behind in data centre construction needed to meet expected demand for AI services in the coming years, held back by a mix of slow permitting, high energy costs and a scarcity of available land.

“Europe cannot regulate its way out of technological dependency,” MEP Matthias Ecke (S&D/Germany) told reporters. “It must build its own capacity, overcoming one-sided dependencies and restoring a genuine choice for businesses and consumers alike.”

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At the same time, the EU is set to join a US-led initiative, Pax Silica, to secure chip supply chains, in recognition that Europe cannot do without Nvidia chips in the short term.

That dependency could nonetheless prove self-perpetuating: regulators and rivals warn that Nvidia tends to build a closed ecosystem that is difficult to break away from.

Will there be a backlash?

The concept of technological sovereignty originated in French defence circles, rooted in the idea of developing an autonomous nuclear deterrent. The debate spilled over into digital technologies — given their dual-use potential — during Trump’s first term.

A stark wake-up call for EU policymakers came when, after the International Criminal Court issued an arrest warrant for Israeli Prime Minister Benjamin Netanyahu, the US administration sanctioned several ICC officials — cutting them off from American services woven into daily life, such as Visa, Amazon and Uber.

As Washington has grown more explicit about weaponising critical dependencies, concerns about retaliation against any treatment of US firms deemed unfair have mounted.

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Commission insiders, however, consider the US front largely pacified by the EU-US Turnberry agreement, which broadly favours the American side, and say the tone behind the scenes in recent weeks has been far more constructive than the public outbursts suggest.

On the China front, the tech sovereignty debate is just one thread in a far broader tapestry of strained relations between Brussels and Beijing, with discussions around a potential trade war reaching a fever pitch in recent weeks.

Both Washington and Beijing have weaponised strategic dependencies in what analyst Mark Leonard has called the Age of Unpeace. Yet neither superpower can afford to lose access to Europe’s main strength: one of the world’s largest and most lucrative markets.

Where is Europe headed?

In the complex chip value chain, Europe still controls critical chokepoints, most notably through Dutch company ASML, which holds a near-monopoly on the industrial machinery essential to chip production.

The package also includes a strategy to leverage open-source technologies, which could help the EU overcome its fragmented tech landscape — one that has yet to produce a company capable of directly competing with Silicon Valley’s giants with an integrated offering.

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Still, the lack of a scalable European single market and access to capital are frequently cited by European start-ups as the main reasons they move abroad — issues the Commission is attempting to address through the EU Inc. proposal and the capital markets union.

In short, the EU faces structural problems dragging its tech sector back. The sovereignty package addresses some of them while attempting to leverage Europe’s own strengths, conscious that complete autonomy in a globalised world is unrealistic.

For instance, Japan coined the concept of “strategic indispensability,” which emphasises controlling critical leverage points.

“The target is to achieve something visible by 2030,” Virkkunen said. “80% of technology is coming from outside Europe. We will not change that overnight.”

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