AFAICT, this is *not* a "European Union's (EU) initiative for developing a new Linux distribution initiative".

This is:

- a "*Community-led Proof-of-Concept* for a free Operating System for the EU public sector" (https://eu-os.gitlab.io/?ref=news.itsfoss.com#what-is-eu-os),

- that community being led by a one person team (https://gitlab.com/eu-os/eu-os.gitlab.io/-/project_members),

- and with only 4 commits in its repository (https://gitlab.com/eu-os/workspace-images/eu-os-base-demo/-/...).

"Can this Linux-powered operating system disrupt Windows' hold in the European Union?"

Can a one-person PoC do that?

"The European Union has its own Linux Distribution and it's Called EU OS"

I cannot find any link to any EU announcements on that subject.

IMO, that article is very naïve...