Insider Brief

• Europe risks losing its competitive edge in quantum technology without urgent action to close funding gaps and build a full-stack quantum ecosystem, according to a new strategy paper by the European Quantum Industry Consortium (QuIC).
• The U.S. tripled its private investment in quantum startups in 2023–2024 while European investment fell by 40%, leaving European firms underfunded and vulnerable.
• QuIC recommends coordinated EU action across hardware, software, supply chains, and workforce development, backed by expanded funding and stronger public-private collaboration.

Europe could still dominate the quantum era — but only if it acts faster. That’s the warning from a new white paper by the European Quantum Industry Consortium, or QuIC, which lays out a sweeping strategy to safeguard Europe’s technological future in quantum computing, sensing, and communication.

Published as guidance for the European Commission’s upcoming Quantum Strategy, the study urges a shift from fragmented efforts to a coordinated continental push that rivals the scale of historical scientific efforts like the Apollo Program or the Human Genome Project.

While this sounds like a big ask for the continent, the study points out Europe is not starting from scratch. The region trains more quantum engineers and specialists than any other, and it leads the world in academic output on quantum technologies—a sign of both deep bench strength and innovative capacity. Nearly a quarter of the world’s quantum companies are based in Europe, including leaders in hardware, software, and components that feed the global supply chain. Flagship programs like the EuroHPC supercomputing initiative, EuroQCI secure communication network, and Chips JU fabrication effort reflect a coordinated push by EU member states to match infrastructure with ambition. Collectively, they are backed by €7.5 billion in pledged funding and a political consensus embodied in the EU’s Quantum Pact.

 

Funding Lags, Talent Gaps, Supply Chain Risks

However, the 62-page report is blunt about where Europe stands. Despite being a global leader in scientific research and academic publications, European companies are underfunded, underpatented and outpaced by their American and Chinese rivals. Private investment in U.S.-based quantum start-ups tripled in the past year, while European investment fell by 40%, according to QuIC. That leaves the continent’s quantum sector “financially vulnerable.”

Meanwhile, many key components in Europe’s quantum computers come from abroad. QuIC warns that without stronger domestic manufacturing and supply chain infrastructure, the region will remain dependent on non-EU suppliers for the technologies it hopes to commercialize.

A ‘Made in Europe’ Quantum Stack

One of the centerpiece recommendations is the development of a fully European quantum computer stack — from the chips and cryogenics to the software and cloud access. QuIC calls for EU funding to support modular, gate-based and analog systems capable of fault-tolerant quantum computing by 2030. Integration with high-performance computing (HPC) and artificial intelligence is essential, the paper states.

At present, Europe’s hardware progress is scattered. QuIC highlights existing EU pilot lines like Qu-Test and Qu-Pilot as promising starts but calls for industrial-grade fabrication capacity to produce quantum chips at scale. It also encourages the development of software stacks tailored for hybrid quantum-classical computing, including middleware to translate conventional code into quantum workflows.

“Developing powerful quantum processing units (QPUs) for error-free operations will keep the EU at the forefront of QC technology. This involves advancing the development of qubit quality, scalability, interactions, and connectivity, as well as novel QPU architectures for analogue and gate-based QC to establish a robust, fault- tolerant QC capability within this decade.” the analysts write in the report.

Quantum Supply Chain: Control Points Needed

A major focus is on strategic autonomy. The report recommends building “control points” in the global quantum supply chain—nodes where European firms produce key inputs that others depend on. This not only strengthens Europe’s position but provides what the authors call “geoeconomic leverage.”

To do that, the EU should boost public procurement of domestic quantum tech, support start-up and SME involvement through open tendering processes, and prioritize interoperability through standards developed in Europe.

QuIC also proposes forming a European Quantum Supply Chain Alliance to identify vulnerabilities, coordinate responses, and share best practices across member states.

IP Strategy and Standards Development

Another area where Europe trails is intellectual property. QuIC cites its own 2025 patent landscape analysis, which shows Europe behind the U.S. in quantum-related IP even within the European market. The report recommends tying EU funding more tightly to IP creation, including mandatory valorization plans and success tracking.

Equally important is standardization. The paper advocates for Europe to take the lead in quantum benchmarking and certification through its Joint Technical Committees, aiming to shape the rules that will define the global quantum economy. It proposes creating a Quantum Software Consortium to establish best practices and common interfaces.

Gaps in Investment and Scale-Up

On investment, QuIC highlights structural weaknesses: Europe lacks venture capital firms capable of leading €100 million-plus rounds, forcing scale-ups to look to North America and Asia. The European Investment Council’s (EIC) support is stretched too thin, with only two to three quantum companies expected to receive scale-up funding per year under the current €300 million annual cap across all deep tech domains.

The report recommends ring-fencing funding for quantum technologies in the next EIC work programme and significantly increasing the EIC Scale-Up budget in 2026 and 2027. It also calls for the creation of a dedicated quantum fund and a pan-European tax relief scheme for investors.

To prevent a “quantum brain drain,” the paper proposes a harmonized legal regime for start-ups, a framework for intra-EU mergers and acquisitions, and fast-track visa programs modeled on Canada and Australia to attract global talent.

Sensing, Security and Society

Beyond computing, the report also emphasizes the strategic importance of quantum sensing and quantum communication. It calls for continued support for cryptographic techniques that are resistant to quantum attacks, such as post-quantum cryptography (PQC) and quantum key distribution (QKD). These are essential to protect against “Harvest Now, Decrypt Later” threats, where adversaries stockpile encrypted data for future decryption with quantum computers.

Europe is currently a leader in QKD but must act quickly to secure that lead, according to QuIC. The report recommends investing in terrestrial and satellite-based QKD infrastructure and expanding certification processes to ensure the entire QKD supply chain remains European.

On sensing, QuIC suggests the EU should focus on technologies with dual-use applications in defense, space, and environmental monitoring, including optical clocks, Rydberg atom sensors, and compact accelerometers. These technologies can feed into quantum-enhanced climate and navigation systems, among others.

Toward Sovereignty and Societal Benefit

In a section titled “European Quantum Sovereignty,” QuIC outlines measures to secure Europe’s quantum future: harmonized export controls, integration of national quantum strategies, and the creation of a European Quantum Coordination Office. The group also advocates for a continent-wide procurement program to support domestic sourcing and calls for greater attention to dual-use technologies.

The study concludes with a call to align quantum development with broader societal goals, including the United Nations Sustainable Development Goals (SDGs). Suggested applications range from quantum-assisted water management and energy optimization to quantum-secure infrastructures for vulnerable communities.

A Closing Window

The overarching message of the white paper is that Europe’s window of opportunity is closing. With rival nations accelerating both public and private investment in quantum, the EU must act swiftly and in concert to claim its share of what McKinsey estimates will be a €2 trillion quantum economy by 2035.

“Europe has the scientific base, the talent, and the industrial know-how,” the QuIC study says. “But leadership will depend not on invention, but on action.”

This article is based on the European Quantum Industry Consortium’s 2025 white paper Recommendations for the EU Quantum Strategy, available at euroquic.org​.

QuIC Report: Europe’s Quantum Edge Hinges on Urgency, Collaboration And Coordination