They say "open source" but they are looking for "no-profit motive" IMO. Which is fine, but they should be opening a generous fund for democratically-run non-profits whose primary activity is developing open software which is useful for the EU and is an alternative to US corp-controlled software.
EU has plenty of these orgs it can generously fund, and scoping funding like this would create more. Some existing examples (many of which accept gov't funds but need a lot more to rival big tech):