Dutch central bank warns Europe’s reliance on U.S. tech firms threatens digital security

Klaas Knot, president of De Nederlandsche Bank (DNB), warned that the Netherlands and Europe are too dependent on foreign companies—especially American firms—for key financial and digital services. He also pushed back against criticism from U.S. officials after Moody’s, a major credit rating agency, lowered the country’s credit rating.

At a recent press conference, Knot responded to comments from U.S. Treasury official Scott Bessent, who said the Moody’s downgrade does not reflect current economic conditions. Knot defended the agency, saying credit rating firms are “forward-looking.” He noted that the Netherlands lost its triple-A rating more than 10 years ago, which also led to political backlash. “It is always ‘don’t shoot the messenger,’ I think,” he said.

Moody’s, which evaluates how likely countries are to repay their debts, lowered the U.S. credit rating from Aaa to Aa1. That means Moody’s sees the U.S. as slightly riskier to lend money to than before. The agency cited the country’s rising national debt as the reason.

Knot defended the move, saying it wasn’t about past problems but about what’s coming. He said the downgrade was based on future budget forecasts from the Congressional Budget Office, which has warned that the U.S. financial situation is “unsustainable.”

Knot also raised alarms about Europe’s growing dependence on non-European companies for payment systems. He said that while services like iDEAL appear Dutch, much of the technology behind them is controlled by two American firms that together hold more than 60 percent of the market in the Netherlands and across Europe.

“We simply assume these companies have an interest in offering good service,” Knot said. “But you have to ask yourself: is this a healthy dependence? Or should we consider building a European alternative?”

He also raised concerns about Europe’s heavy reliance on American tech companies for cloud services. Dutch banks, businesses, government agencies, and even DNB itself rely heavily on U.S. firms like Amazon, Google, and Microsoft to store and manage sensitive digital data.

He warned this could become a serious risk, especially during global tensions. “You don’t want to create panic,” he said, “but we now have to think about scenarios we haven’t considered in 80 years.”

The Dutch central bank recently published a report saying these dependencies could make Europe vulnerable. The report also noted rising political tensions are making it harder for international organizations such as the International Monetary Fund to work together. However, Knot stressed the United States has no plans to pull out of the IMF.

The risks of relying on American tech companies became clearer recently when Microsoft blocked access to the official email account of International Criminal Court (ICC) Chief Prosecutor Karim Khan. According to Dutch newspaper de Volkskrant, Microsoft acted after U.S. sanctions were placed on the ICC by President Donald Trump following arrest warrants issued against Israeli Prime Minister Benjamin Netanyahu and others. As a result, Khan can no longer read official messages sent to his work email, raising alarms about how much control U.S. tech companies have over European institutions.

A senior Dutch civil servant told de Volkskrant, “It’s absolutely on our radar. This issue is receiving full attention across all levels of government.”

Dutch cloud provider Intermax said at least 10 key public-sector organizations have contacted them to reduce reliance on U.S. cloud services. Director Ludo Baauw called the response to Trump’s return “an earthquake.”

Baauw told de Volkskrant many agencies are reviewing their use of Microsoft, but switching providers is difficult and can take six months to three years. Dutch law requires critical services like hospitals and energy providers to have backup plans in case cloud access is cut off. Intermax is helping some store email data locally to maintain access if Microsoft blocks accounts.

Microsoft is deeply embedded in the Dutch government. In 2023, four ministries launched the Beter Samen Werken (Better Working Together) program using Microsoft Teams. Despite concerns, the program will continue with Teams, though the Ministry of the Interior said it is now reconsidering due to geopolitical tensions and the need for digital autonomy.