Because that's the desired feature, not a bug. The system works just as intended. None of the people at the helm actually believe they can create competitors to US giants, the scope is to funnel public tax money into the right politically connected private industry pockets.

It's just wealth redistribution with a veneer of "sovereignty", similar to large infrastructure projects, except a lot more profitable since more people understand physical infrastructure so it can more easily be scrutinized for corruption, but almost nobody understands IT infrastructure, so it can easily gamed as a bottomless pit for your tax euros that constantly fails in a loop while you socialize the losses and privatize the winnings.