>if there is no demand in Europe - then there is a price problem

A price problem in terms of it not being worth the cost... sure.. but that's because there are little/no fabs in Europe. Lowering the price, even by magic, doesnt really seem like it would matter.

>but i don't like the expectation that governments should subsidize mega corporations profits.

To be clear they are asking the EU to kickstart chip fabrication. Which is a chicken-and-egg problem. A fab can't tool up without orders. Orders wont come without tooling. It's in the EU's interest to fabricate chips locally.