Europe is not a political entity or an organisation. Who exactly will do it? The EU, some EU country, Russia, the UK, Switzerland, some cooperative agreement...?
We're talking about running a few mail server, network shares, and an office suite (LibreOffice if you want). Any university's in-house IT department should be able to pull that off, and it's exactly what many did for a very long time.
If Universities are anything like other large public/public-adjacent organizations, the bulk of the in-house IT department was long since replaced by Microsoft resellers posing as IT. It’s insidious.
Not all universities in Europe are like this, but some are 100% like this. But if there was a larger political directive towards a more autonomous solution, it would eventually work, I think.
The trap of Microsoft is long contracts and setting up dependency. In many cases it was a big undertaking to get the current setup, now try convincing anyone to tear it out.