Homomorphic encryption represents the next evolutionary step in cryptography. With this technology, databases can be encrypted for the first time. It also opens up numerous new possibilities in the area of multi-cloud computing and machine learning. In addition, homomorphic cryptography has political implications. The technology is central to security policy, for example in the exchange of data between security authorities. New multi-cloud business models could also create new dependencies, for example on the USA, where work is already underway on standardisation. In order not to be left behind, the EU should promote application research and include homomorphic encryption in the planning for its own cloud initiative Gaia-X at an early stage.