If it’s not created and grown organically (with some extra funding and indirect support) it will certainly and inevitably suck.
Government bureaucracies can’t directly establish and build a tech company. They will end up replicating their structure and decision making processes which will lead to massive inefficiency and result in crappy product with poor UX that are not built for actual users.
Also free market competition always was and is the main source of human progress. If EU can establish an environment where competition can thrive something might happen. If they create a government owned monopoly and everyone is forced to use the same vendor who has zero incentive to build non crappy products, well.. the outcome won’t be good.