I agree. But it is the single most important thing there is, if you want to limit exposure to US tech companies.
The EU has the monetary resources to fund this. But it obviously does not know how, so we have these distributed system, where funding trickles down through multiple layers into many different small projects, which then get some funding for some time.
I think the EU funding these many small projects is nice, but we should not pretend that distributed funding like this makes any meaningful difference, as long as most government and corporate institutions are running Microsoft products everywhere.
A new system vendor needs to be created, it needs to be well funded, it needs to attract really good people and it needs to be deployed, millions of people need to be trained to use it, EU wide. This is a decade long project, but it is the only way to create an EU independent of Microsoft.