Don't know how it went down in Sverige. But they might un- decide their choice for Ofiice 365, if enough public, and or like you suggest EU, pressure is given. Tbh, need to check my own Gvement though. But afaik in the NL, the Dutch Cloud was sold off to an US Cny. Hopeless situation too .
Add: the NL Gvement has plans
"The Cloud Acceleration Team operates with 1 central mission: to develop a sovereign cloud infrastructure for the entire government"
I have Quad 9 w/ Vpn andit blocks. Could whitelist, but am too lazy.