> Imagine if the US, behind closed doors of course, threatened to cut off all cloud services

That would be the single best thing that could happen to the EU.

I think people would be surprised by how quickly European and international companies and governments can rid themselves of the American tech stack. They use this stuff because it's convenient, solid, and cheap, not because it's the only option.

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

Yes, both in the EU and the US, initially. It would also force the EU to finally invest in its own tech stack and end the US's ability to sell software globally.

People seem to believe that America's global economic dominance is a law of nature that will never change, regardless of what the US does. But it's not. There is no American exceptionalism, other than what America worked for.

If you continually kick your customers in the face, they'll eventually stop being your customers.