I'm sure he means the Commission. And arguably, sovereignty is decreasing for member-states. For instance, possibly as much as two-thirds of the laws and regulations that affect people living in the EU come from the EU itself - not the member-states. For Eurozone members, monetary policy is controlled by the EU, and increasingly fiscal policy. What does sovereignty look like in this picture?
Although, I'm not sure if the Commission itself would have the revenue to support key open source projects. They could certainly enact regulation to encourage funding, however.
