> Huge parts of the public and private sector could collapse.

Today, yes.

The possibility of this, combined with how seriously Greenland was taken, means the EU is collectively saying "as a matter of urgency, we need strategic independence from the US".

This will take a while. Ironically, access to AI will make the transition much faster.

However, this is currently mutual interdependence: if the US actually cut off non-AI cloud to the EU, the US would screw over one of their major suppliers thus preventing them from supplying stuff, and leave itself entirely at the mercy of China. If it cut off AI to the EU, there goes a big market for tokens and the current data centre supply looks even more sketchy than its effect on electricity prices has already made it look. (But one bit of good news is that US electricity prices would come down).