BERLIN — Germany’s Digital Minister Karsten Wildberger wants a European alternative to American data analytics giant Palantir, he told POLITICO.

“My preference is that we develop our own products and companies in Europe that are competitive on the global market … That is why, in the long term, we want to rely on European alternatives,” Wildberger said in an interview.

The use of Palantir software is controversial in Germany and across Europe, with critics warning of risks to data protection and fundamental rights, as well as dependencies on a U.S. provider.

According to Wildberger, suitable providers already exist: “There are European companies with the necessary capabilities that we can support.” The challenge is scaling them up, which “could take two to three years,” he said.

Governments should back smaller players, Wildberger said. “This is the only way to accelerate the development of a European alternative: we need to send them a signal that we trust them with such responsibilities,” he said.

Palantir is used by police departments in German states including Bavaria and Hesse for data analysis. It is also built into systems at Europol and in countries including Denmark.

Europe for now still needs Palantir for national security, Wildberger said: “If the alternative is that no comparable solution is available, then security takes priority for me.”

“It is generally possible to deploy the technology in a way that meets certain sovereignty requirements,” he said.

Shifting off Microsoft

Governments in Europe have been reassessing their dependencies on American technology under the second Trump administration. But Europe still faces a lack of homegrown alternatives in many parts of the tech supply chain.

Wildberger said he wants to reduce the use of U.S. software provider Microsoft in the federal administration in favor of domestic solutions.

“Microsoft has been a trusted partner in Germany for many, many decades,” he said. Yet his ministry is increasingly turning to open-source solutions, following the example of German states such as Schleswig-Holstein. “We are on the path to deploying this extensively across workplaces in our ministry as well,” Wildberger said.

This is part of a broader strategy: “That we want to become independent and must not be vulnerable is beyond question.”

Due to a lack of European alternatives, this will be “a long road,” he said.

Federal spending on Microsoft software by German authorities has risen significantly in recent years, reaching more than €480 million in 2025.

Wildberger emphasized that the goal is not just to replace individual software options. “More important than simply cutting ties is to structurally position ourselves so that we can build scalable products in open-source-based administrative software that are not only suitable for public administration,” he said.

EU regulation ‘far too restrictive’

A former business executive in charge of brands including MediaMarkt, Wildberger took office in May of last year as minister in charge of digitalization and government modernization.

The German minister also addressed the EU’s AI rulebook, calling for changes through ongoing talks in Brussels to simplify the rules.

“If you ask me about AI regulation, and whether we allow companies to develop things quickly, with little bureaucracy and in an innovative way, then I would say that our framework […] is far too restrictive,” he said.

The current AI legislation “does not meet international standards at all. This is also one of the reasons why so many companies in Europe turn abroad when it comes to AI development,” he said. Wildberger said he fears that German companies will leave the country if the EU’s legislation doesn’t create more supportive conditions.

He pointed to a connection with the sovereignty debate, arguing the rules are one of the main reasons why German and European companies use foreign software providers.

“As a result, we regularly end up being customers of large providers from the United States or other countries. That is why we need to ensure that regulation becomes more innovation-friendly — while still guaranteeing the safety of products,” he said.