It's rather problematic for service providers in the USA: Europe is quite a huge market to lose (as well as a significant source for talents), and other markets may as well follow the switch.

There _are_ working alternatives locally for businesses and administrations, only small because so far, most preferred to procure from the USA.

Now that there is a significant incentive not to do so anymore, maybe europeans providers will get a chance to grow and improve.

Why would that be? There are plenty of local offerings and they're often cheaper, too. They might not be as well marketed or polished, but at the end of the day, most businesses just need some servers, nothing fancy.

The EU company I work for is pretty security conscious and already implements this almost completely (the exception being a few industry specific niche apps). What do you think would be missing?