Ericsson chief warns Europe on sovereignty dangers

Ericsson CEO Borje Ekholm has warned that the European Union’s drive to cut its reliance on US technology and pursue digital sovereignty could backfire. Speaking to Bloomberg at the World Economic Forum in Davos, he said he does not believe Europe “has the capability to become sovereign today” and argued that forcing a shift to homegrown suppliers of AI chips and services would likely raise costs and deepen tensions with Washington.

Ekholm’s comments come as European operators lobby for digital sovereignty to be made a top EU priority, against a backdrop of strained US‑EU relations and threats of new US tariffs over political disputes, including control of Greenland. Ericsson and rival Nokia have already gained from US‑led bans on Huawei and ZTE in several markets on security grounds. Ekholm urged European policymakers not to “overreact” and instead “figure out a way to work together” with the US. He also noted that Ericsson is considering moving its headquarters from Sweden to the US, a year after winning a $14 billion open RAN contract with AT&T.