If a viable Office 365 alternative appears, it won't be a big top-down bureaucratic initiative from the government, or even the universities. It'll be a nimble EU-based startup company building a full office suite and making it available not just to government organizations via a "contact sales" link (you hear that, NextCloud and OpenDesk?), but via one-click deploy to AWS EU region, docker/k8s, and whatever EU-based cloud hosts exist, so you and your friends can test it out at home.

(If the EU never figures out how to allow nimble startups companies to exist, then forget about it)