Every project I worked on, developers (consultants like me) advocated for finding a way of bypassing the hosting partner, and either doing their thing on top of platforms like Hetzner, or switching to AWS/Azure. Not because they particularly love AWS, but because the default hosting solution sucks so much arse.
I can totally see EU cloud infrastructure working for the public sector, but ONLY if they come with the same level of self-service management as the big cloud providers. Without that, it's a non-starter.
[1] One of those is a large French company on the verge of banruptcy.