leaders that ignored the potential to set up homegrown cloud providers, software suites or tech companies

Remarkable how it is the politicans who should have been doing this when it doesn't get done, and how everyone is quick to complain if politicians meddle in what the private sector should have been doing. This is a recurring theme in a lot of debates. And I think it has to do with our need to blame someone but ourselves.

Yes, one could solve this through procurement rules that favor domestic or regional products. And there are sometimes procurement rules that state that domestic vendors should be preferred. But I have seen that in practice and it doesn't actually work. One one project I worked on decades ago the military was sourcing a system for "local administration". A company that was effectively bankrupt, had the weirdest OS I have ever used, and the worst office support systems I've had the misfortune of trying to use, was the only domestic candidate. Yes, it did check the boxes in the procurement process, but everyone knew it was never going to happen.

Interoperability, product maturity, familiarity, feature completeness, quality etc tends to win out.

I think we have to realize that this has almost nothing to do with our political leaders and everything to do with our inability to create software businesses in Europe. We need to figure that bit out. And perhaps this is the kick in the behind we needed to get our act together.

I don't think anybody expected EU politicians to create the software companies

When we speak of the failure of EU politicians, it has been in removing the barriers in their own market to even develop successful technology companies given all the highly educated local talent (they have a larger population than the US!).

The lack of a single capital market, no single regulatory market, no single language market, hilariously wide variance in taxation/labor/corporate law, etc. is why the EU can never compete in each tech wave (from the transistor to mainframes to the PC to the internet to ecommerce to social media to smartphones to AI etc. etc.)

Trillions in tax revenue is missing from the successful companies that were never built and the income tax from high-paid employees that don't exist. The last 60 years of growth in the digital realm could be funding the EU's various rotting social welfare systems and instead be providing countries across the region with a higher standard of living. Instead they are stuck living off the tax receipts thrown off by dying industrial-age giants. Which China will soon kill.

This is absolutely a policy failure, and regardless of the historical reasons why we ended up here, to paint it as anything other than a policy failure is to not live in reality.