In the last two years, hardly any discussion on digital topics in the EU has failed to mention the concept of digital sovereignty. But what does this only vaguely defined concept mean for the EU’s digital future more concretely? In this policy paper, Anke Obendiek analyzes the potential gains and drawbacks of this term and discusses concrete measures the EU could implement. She warns of putting too much faith into geopolitics as a solid basis for digital policies and suggests the facilitation of public funding for decentralized and interoperable digital solutions that represent European values by design.