No non-US government should host anything on azure, or any other US-owned cloud. Thats security and sovereignity 101, or more like 100. Reality with hostile US being as it is.

What you list are no showstoppers, and since its a well known topic I cant imagine why some EU-funded effort in say 2 billions over next 3-5 years shouldnt reaolve it once and for all, for entire world. Well invested money.