The European Commission’s 2026 State of the Digital Decade package confirms what many boardrooms have suspected: Europe’s digital transformation is accelerating, but unevenly, and increasingly under the banner of technological sovereignty. With 46.7% of EU enterprises now using cloud services, 39.9% deploying data analytics, and AI adoption reaching nearly 20% of firms — up 48% year over year in 2025 — the direction of travel is clear. What is less clear to many mid-market executives is how quickly the regulatory and strategic context around these numbers is shifting, and what that means for capital allocation, vendor contracts, and risk governance.