I think it's an interesting point to discuss whether state funding is possible for FOSS software like firefox that creates market competition within a certain segment. It would certainly work well with a more pure view of capitalism, to prevent the monopoly that is the chromium browser (engine). And I also think the EU would be a great candidate for the size/importance of an alternative-to like firefox.

I wrote a more extensive post on my blog, fwiw: https://whatshouldyoueat.com/2020/08/15/mozilla-ideals/