From my understanding, most European governments purchase American or other foreign-owned software, which often does not contribute to tax revenues in the countries where it is used.
Software licenses are certainly a major expense for all levels of the Danish government. (Cloud infrastructure, too, increasingly.)
They've started complaining, especially since prices have been going up, but while there's rumbling underground, we've yet to see any real movement away from Microsoft.
The open-source project Grist Core (https://github.com/gristlabs/grist-core) is developed in the United States, with contributions from some French gov tech team.
From my understanding, all features are not open source, for example organization management aren't open-source, which limits its adoption in large institution …