Sovereignty doesn't mean autarky - it means having the capacity to maintain operations and pivot should a black swan event arise.
The EU is a transnational bloc that has had experience helping it's member states find niches of competitive advantage and take full advantage of that.
Germany doesn't need to fully replicate Denmark's biopharma pipeline nor does Denmark have the need to fully replicate Germany's nuclear submarine IP because both can and have continued to coexist with each other and build resilience through additonal partnerships which prevent one from dominating the other.
This is the modus operandi of EU soverignity - integrate players into following a set of collective norms and aligning each other's incentives with the larger collective.
This is why EU's grand strategy incorporates the industrial base of other regional powers like Japan, SK, India, Vietnam, Canada, Australia, UAE, Israel, etc because it increasingly aligns all these regional powers against domination from either the US or China.
