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Document 52024DC0260

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS State of the Digital Decade 2024

COM/2024/260 final

Brussels, 2.7.2024

COM(2024) 260 final

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS

State of the Digital Decade 2024


Table of content

1. Introduction: delivering the Digital Decade    

2. EU established as the global policy innovator    

3. A stronger EU digital industrial basis accelerating progress in the Digital Decade    

4. State of the Digital Decade: Progress in 2024    

4.1 A wake-up call    

4.1.1. Progress towards a competitive, sovereign and resilient EU based on technological leadership    

4.1.2. Progress towards the protection and empowerment of EU people and society    

4.1.3 Leveraging digital transformation for a smart greening    

4.2 The strategic Digital Decade national roadmaps and their role in achieving the EU’s ambition    

4.3 Recommendations on the way forward    

5. International dimension    

6. Conclusions    



1. Introduction: delivering the Digital Decade 

This Communication contains the 2024 State of the Digital Decade report. It examines digital policy developments since the 2023 report 1 and presents the EU’s progress towards achieving the agreed objectives and targets for a successful digital transformation for people, businesses, and the environment, as set out in the Decision establishing the Digital Decade policy programme 2030 2 . A snapshot of this analysis per each Digital Decade target is provided in Figure 1 below.

Figure 1. Taking stock of the progress towards Digital Decade targets set for 2030 3

For the first time, this report includes an assessment of national Digital Decade strategic roadmaps. On this basis it outlines Member States’ individual contribution to collectively achieving the Digital Decade’s objectives and targets and, overall, it confirms the findings of the 2023 State of the Digital Decade report:

-Over the past years, the EU has considerably upgraded its action through regulatory and non-regulatory measures to equip itself with a governance framework and a clear vision of the future, based on specific targets and objectives and the means to achieve them. The Digital Decade policy programme has been designed as main instrument to coordinate this effort: it relies on close cooperation with Member States and stakeholders at European, national, regional and local levels to ensure collective progress 4 .

-Thanks to this enabling framework and joint action, some progress has already been achieved. Notably, the implementation of the Recovery and Resilience Facility (RRF) has given an important contribution to the achievement of the Digital Decade policy programme. These instruments and governance framework are complementary to each other and to the European Semester of economic and social policy coordination. 

-Yet, as shown by Figure 2 below 5 , at the current rate of Member State’s intervention, the remaining time projected to meet the targets is sometimes well beyond the agreed 2030 timeframe. It is therefore critical that Member States follow suit and step up their contribution to the achievement of the Digital Decade objectives and targets with concrete measures and policies, starting with the adjustment of their roadmaps.

Figure 2. Projected time to target based on last annual average progress for each KPI

This Communication outlines the main findings of the analysis and it is accompanied by three Annexes: Annex 1 provides an extensive analysis of the progress made towards the Digital Decade objectives and targets and contains horizontal recommendations addressed to all Member States; based on most recent data available, Annex 2 updates the trajectories for the EU to timely reach each Digital Decade target and key performance indicator (KPI); Annex 3 provides a summary of the analysis made for each Member State and includes country specific recommendations. Both the horizontal and the country recommendations aim to accelerate the EU’s collective progress and propose adjustments to national strategic roadmaps 6 .

2. EU established as the global policy innovator

Over the last 5 years, the EU has strategically pivoted toward a more assertive digital policy framework, recognising the urgent need to shape the digital space with targeted investments and robust regulatory mechanisms when necessary. This approach marks a significant disruption, propelling the EU to the forefront of global digital governance and policy innovation. With its state-of-the-art digital rulebook, the EU should contribute, by levelling the playing field across the Member States, to the future achievement of Digital Decade objectives and targets.

2023 and 2024 have been watershed years for the EU’s leadership in the digital age, and its role as a bolder global-class regulator, inspiring other regions of the world to act. The European Commission’s five-year mandate of 2019-2024, has overhauled the digital policy landscape, by proposing and negotiating 23 legislative files 7  which have contributed to reinforce EU’s position in the Digital Decade. 

New EU-wide rules have contributed to the Digital Decade objectives of competitiveness and of the development of a human-centred digital space, strengthening the protection of people, facilitated the growth of enterprises with the deepening of the single market and shaping the digital economy far beyond its borders. Among the important legislation delivered in this mandate is notably the Artificial Intelligence Act (AI Act) 8 , the world’s first initiative regulating specific uses of artificial intelligence based on the level of potential risk. It seeks to address societal challenges, rights and safety including ethical considerations while establishing effective yet light-touch requirements for AI systems operating within the EU. Other initiatives such as the Data Governance Act 9 , the Data Act 10 or the European Health Data Space Regulation 11 , the Once-Only Technical System (OOTS) 12  under the Single Digital Gateway (SDG) Regulation 13  and the Interoperable Europe Act 14 have built the foundations of our data-driven economy. The EU is strengthening the protection against online harms and disinformation for a safer, more transparent digital space, with the initiation of investigations and information requests being launched to enforce the Digital Services Act (DSA) 15 . Large online platforms have already made changes to comply with the Digital Markets Act (DMA) 16 , giving more choice to EU users and ensuring fair and contestable digital markets where our enterprises can grow. Finally, during this mandate, essential steps have also been taken to steer the implementation of major legislative building blocks of the Digital Single Market, such as the 2018 European Electronic Communications Code 17 , the 2019 Copyright Directive and the revised Audiovisual Media Services Directive 18 .

The Digital Decade objectives of resilience and cybersecurity were also strengthened through upgraded frameworks, such as with the update of the Network and Information Systems Security Directive (NIS2) 19 , the Cyber Solidarity Act 20  and the Cyber Resilience Act 21 . Through the European Digital Identity (EUDI) Regulation 22 , the EU is facilitating access to and use of trusted online services with the EU Digital Identity Wallet (EDIW). The EU has driven more economic and social development by accelerating the deployment of high-speed networks with the Gigabit Infrastructure Act 23 . The EU is reinforcing European energy security by adopting the cybersecurity network code for cross-border electricity flows. 

After this wave of strong regulatory efforts, the EU will now need to deliver on implementation and enforcement, with more consistency and coherence and better synergies across regulatory authorities to govern EU digital policies efficiently. This will be essential to strike a balance between innovation and regulatory burden and contribute to the achievement of the EU’s digital decade objectives and targets.

3. A stronger EU digital industrial basis accelerating progress in the Digital Decade

The past 5 years have seen significant advancements in digital innovation and industrial policy, which have fostered a unique and dynamic European ecosystem. This ecosystem, based on connectivity, edge nodes, high performance computing (HPC), quantum, chips and start-ups, supports the EU’s green transition and digital transformation, thereby enhancing its competitiveness. Strengthening the EU’s technological leadership is crucial for accelerating its progress towards the Digital Decade’s objectives and targets.

As shown in Table 1 , with an estimated global effort amounting to EUR 205 billion over the past few years, the EU has made full use of its funding capacity to support the Digital Decade. Being one of the main political priorities of the Commission to enhance the EU’s prosperity, economic recovery, and resilience, the digital transformation receives substantial coordinated support from EU funding across the board. An initial stocktaking exercise demonstrated that EUR 131.9 billion of the 2021 and 2022 EU budgets (including NextGenerationEU) was allocated to the digital transition, representing almost 17.4% of the total EU budget 24 . In particular, the Recovery and Resilience Plans, combining investments and reforms worth EUR 651.7 billion 25 , serve as a key source of funding for the digital transformation at national level for many Member States and complete the large scale strategic European projects funded under the Digital Europe Programme (DIGITAL), Horizon Europe and the Connecting Europe Facility (CEF).

Table 1. EU relevant budget for the Digital Decade targets (2021-2027 MFF, incl. RRF 2020-26, EUR million) 26   27

Fund

Total

RRF
(2020-2026) 28

Cohesion 
(2021-2027) 29

DIGITAL
(2021-2027)

Horizon
(2021-2024)

CEF

Digital
(2021-2027)

Total funding

957 422

651 670

260 896

7 948

35 199

1 709

Digital funding

204 583

150 037

31 063

7 948

13 826

1 709

Digital funding %

21%

23%

12%

100%

39%

100%

Funding DD general objectives

27 488

14 129

4 392

1 275

7 320

373

Funding Digital Decade targets

Total target budget

177 096

135 909

26 672

6 673

6 506

1 336

Basic digital skills

15 405

14 294

950

128

34

0

ICT specialists*

10 881

9 506

633

661

73

8

Gigabit networks

14 003

11 628

2 164

4

0

206

5G*

3 362

1 967

115

4

396

879

Semiconductors*

18 200

14 801

0

1 396

2 004

0

Edge nodes*

609

0

0

220

355

35

Quantum computing*

1 918

866

0

293

669

90

Cloud computing*

8 373

6 019

1 584

370

337

63

Data analytics*

7 552

4 718

1 584

546

678

26

Artificial intelligence*

9 386

5 278

1 584

1 227

1 266

30

Digital late adopters*

19 885

14 154

4 753

674

304

0

Unicorns

19 257

14 158

4 753

159

187

0

Online provision of key public services

32 343

24 449

7 271

616

6

0

e-health

15 233

13 604

1 280

163

187

0

e-ID

688

466

0

212

9

0

In more detail, the Recovery and Resilience Facility represents an unprecedented and, in many cases, the largest source of funding for digital transformation in Member States. Despite major revisions of the Plans, including the incorporation of REPowerEU to address new challenges, the total RRF budget dedicated to digital reforms and investments increased by early 2024 to about EUR 150 billion, representing 26% of the total RRF funding 30 .

RRF has had already significant impact on the Digital Decade across the board. A significant part of the RRF funding directly contributes to Digital Decade objectives and targets, particularly by supporting governments and public bodies in digitising their services and key sectors such as health systems, and by supporting the digitalisation of businesses and improvement of digital skills (cf. table above). Just to make a few examples, to date, 14.7 million additional dwellings have been provided with very high-capacity internet access via Very High-Capacity Networks (VHCN), 728 475 enterprises (mainly SMEs) have been supported in developing digital products, services and processes and 2.1 million people have participated in education or training focused on digital skills 31 .

With a budget of EUR 1.7 billion, the Connecting Europe Facility (CEF 2) Digital supports investment in key European digital infrastructure projects contributing to the Digital Decade’s targets of more resilient and sovereign infrastructures.

CEF2 has had an important impact on the Digital Decade’s targets on connectivity, resilience and sovereignty: so far 158 projects have been awarded, including in the EU Outermost Regions 32 . Projects of strategic importance have benefitted from CEF funding, notably cross border sections of 5G corridors 33 , submarine cables 34 , 5G-based systems enabling use cases functioning as early socio-economic drivers via 5G smart communities in public administrations, healthcare centres, schools and other education and training institutions, as well as quantum communication infrastructure connections.

With a budget of EUR 40,5 million, CEF Digital co-finances a 6-fibre smart submarine cable between continental Portugal Azores Madeira, thus guaranteeing the connection of the two islands for the next 30 years and enabling data gathering as regards seismic detection, environmental monitoring, underwater nautical activity detection and data transmission for scientific purposes, with local, regional, national and worldwide impact. With more than EUR 29 million, CEF2 also finances the 2.145 km long branch extension of the flagship European project Ellalink cable linking Portugal to Brazil towards French Guiana. This branch will not only connect this outermost region of the EU directly to continental Europe with no dependency on any third-party territory but will also lay the foundation for the extension of the cable to European territory in the Caribbean. Another impactful example is the EUR 29 million financing of the first cable linking Ireland directly to the continental EU (France with future extensions to Portugal and Spain).

The CEF2 is also ensuring the development of 5G corridors, granting close to EUR 6 million to the financing of the deployment and upgrade of 5G RAN, Core and transport elements along the Greek (GR) and Bulgarian (BG) highways of the Orient/East-Med (OEM) TEN-T corridor. It also provides over EUR 6.3 million financing covering the motorway section from Frisange (Luxembourg) to Saarbrucken (Germany) at the border crossing near Schengen which will include also connected and automated mobility testing by a major EU car manufacturer.

With a budget of EUR 7.9 billion, the DIGITAL Europe programme is the main programme to fund strategic investments that create digital ecosystems, ensuring the EU’s digital autonomy and global competitiveness. It has already achieved several important results related to the deployment of innovative new digital solutions, capabilities and related services. Among others, the EuroHPC Joint Undertaking awarded the procurement of JUPITER, the first system in Europe to achieve exascale performance, i.e., the ability to execute over one billion calculations per second. Data space initiatives 35 in key sectors are currently being set up, most recently the European Cancer Imaging Initiative and the European Genomic Data Infrastructure. DIGITAL has funded numerous testing and experimentation facilities.

DIGITAL Europe programme has played a critical role in enabling the EU to progress toward infrastructures objectives and targets (notably HPC, quantum, cybersecurity, semiconductors, AI, e-government services) and the financing of cooperation activities such as European Digital Infrastructure Consortia (EDICs) as well as European Digital Innovation Hubs (EDIHs). Operational since 2023, the EDIHs emerged from DIGITAL to support SMEs, mid-caps and public sector organisations in their digital transformation. Offering a comprehensive range of services to their clients – including digital maturity assessments, test before investing platforms, support for investment, training, networking etc. – the network’s strength lies in its extensive reach. It now comprises over 200 hubs, present in 90% of the European regions but covering 100% of the EU, bringing together public and private entities, including research organizations, universities, industry associations, regional development agencies, and private sector companies. DIGITAL contributes to creating more connected public administrations on a cross-border basis, e.g., connecting Member States’ business registers including with other EU level systems 36 . The programme is also supporting bridging the digital divide across regions and has funded various hubs in the EU Outermost Regions 37 .

Horizon Europe is expected to dedicate 35% of its EUR 95 billion budget to the digital transition through the entire 2021-2027 period 38 , with the legal obligation to earmark at least EUR 13 billion for core digital (general-purpose) technologies 39 .

Horizon Europe has fostered EU leadership in several areas underpinning the Digital Decade vision and targets. With the ‘Digital, industry and space’ cluster it supports research and high-end innovation in enabling technologies, such as AI and robotics, next generation internet, microelectronics, the internet of things and cloud computing, high performance computing and data analytics, 6G, extended reality, quantum and other emerging technologies, and several European partnerships 40 .

The InvestEU programme significantly strengthens investments in digital infrastructures and technologies, including media content and skills.

10% of the total investment and financing operations already approved contribute to Digital Decade transformation objectives. EUR 5.24 billion is expected to support digitisation and mobilise up to EUR 74 billion of public and private investments. This funding will provide access to VHCN networks to an additional 1 420 000 households, enterprises or public buildings and will create a significant number of Wi-Fi-hotspots.

Finally, the Technical Support Instrument 41 provides on-demand tailor-made technical expertise to design and implement structural reforms in EU Member States with a budget of EUR 864 million.

The Technical Support Instrument is contributing to building capacity of Member states to participate in the Digital Decade. It is supporting over 240 projects directly linked to the digital economy, including digital transformation governance, AI, business process re-engineering, data-informed decision making and digital skills development. In 2023 more than half of the projects were linked (directly or indirectly) to support Member States’ RRF implementation. The flagship initiative ‘AI-ready public administration’ 42 has particularly supported the deployment of AI in public administration. This year’s call includes a dedicated priority to enhance public administrations’ capacities for Europe's Digital Decade 43 . It aims to strengthen their ability to effectively implement EU legislation in the digital realm and achieve the targets related to the digitalisation of public services.

The EU has also started to reduce its strategic dependencies in critical sectors thanks to key initiatives adopted during this mandate. The Chips Act has triggered a wave of new investments in semiconductor manufacturing in Europe. The EU’s Important Projects of Common European Interest (IPCEIs) are progressing, with notable recent approvals of the second IPCEI on Micro-electronics and Communication Technologies and of the IPCEI on Next Generation Cloud Infrastructure and Services. Several industrial alliances were launched in the areas of batteries, data, edge and cloud computing, processors and semiconductor technologies, and cyber technologies 44 . Thanks to the EU’s investment over the past few years, Europe has become a leader in supercomputing, with 3 of the 10 most powerful supercomputers in the world 45 . In January 2024, the EU adopted the AI innovation package to support AI start-ups and SMEs 46 .These initiatives are supported by considerable investments in advanced digital skills development in key strategic digital areas. 

With the Economic Security Strategy 47  adopted in June 2023, the Commission is coordinating assessments of four categories of risks: (1) risks to the resilience of supply chains; (2) risks to the physical and cyber-security of critical infrastructure; (3) risks to technology security and security-relevant technology leakage; and (4) risks of weaponisation of economic dependencies or economic coercion. These assessments are enabling the EU to understand the evolving, new and emerging risks in this challenging geopolitical context and to find ways to mitigate them, by taking measures to promote EU's competitiveness and protect EU’s economic security, including by partnering with the broadest possible range of partners. In particular, the adoption of the Strategy has kickstarted the risk assessments to evaluate the technology security and technology leakage risks in four technology areas that are extremely critical for the EU (out of the 10 areas identified in the Commission Recommendation of 3 October) 48 , i.e., advanced semiconductor technologies, quantum technologies, AI technologies and biotechnologies. 

To further enhance the EU’s strategic sovereignty and support its technological leadership, the Commission proposed the establishment of the Strategic Technologies for Europe Platform (STEP) in June 2023, an instrument to develop critical emerging technologies that are relevant to the green and digital transitions and to the strategic sovereignty of the EU. The Platform aims to boost the manufacturing capacity in digital technologies and deep tech innovation, clean and resource-efficient technologies and biotechnologies, and to strengthen value chains as well as address labour and skill shortages in these sectors.

Last but not least, concrete cooperation is advancing quickly to develop large-scale projects that a single Member State cannot tackle alone. Three European Digital Infrastructure Consortia (EDICs) have been established by the end of May 2024: the Alliance for Language Technologies EDIC, the Local Digital Twins towards the CitiVERSE EDIC and the EDIC for European Blockchain Partnership and European Blockchain Service Infrastructure (EUROPEUM-EDIC). Eight more are in preparation, and a few additional initiatives are under consideration 49 .

As shown in this chapter, joint and coordinated investment in digital technologies is crucial for accelerating progress toward the Digital Decade objectives and targets, thus driving innovation and economic growth, particularly in an era where digital transformation is reshaping industries and societies. Public investments, when combined with private sector efforts, create a synergistic effect that accelerates technological advancements and broadens their impact. For the European Union to remain competitive on the global stage, it is imperative that funding priorities maintain a strong focus on continuing to leverage the stimulating effect of public and private investment enhancing digital infrastructure, fostering digital skills, and supporting digital innovation across all sectors. By prioritizing digital investment, the EU can secure its position as a leader in the digital age, ensuring sustainable growth and a robust, future-proof economy.

4. State of the Digital Decade: Progress in 2024

4.1 A wake-up call

Despite the significant initiatives undertaken at EU level, the detailed analysis of progress on objectives and targets presented in Annexes 1 and 3 50  reveals two significant concerns: insufficient progress in reaching the objectives and targets and significant fragmentation across Member States. This highlights the need for more significant efforts by Member States to ensure the EU’s control over its future. 

4.1.1. Progress towards a competitive, sovereign and resilient EU based on technological leadership

First of all, the 2024 analysis of progress on objectives and targets confirms the findings of the 2023 report and outlines the need to continue working towards maintaining a leadership position in digital technologies: this is essential for the EU’s future prosperity as it could unlock over EUR 3.4 trillion in economic value, which represents a significant 21% of the EU’s current economy and would greatly contribute to achieve the Digital Decade targets and objectives 51 . 

The full potential of the (Digital) Single Market remains untapped: intra-EU trade in services represent a mere 8% of GDP, in stark contrast to its trade of goods, which exceeds 25%. Capitalising on the single market is essential to address major imbalances in the production of digital services. Currently, 80% of the technologies and services needed for Europes digital transformation are designed and manufactured in third countries 52 and European platforms have struggled to capture more than 5% of global market value for a decade. More generally, the presence of European firms among the world’s leading ICT companies is minimal, with only 3 Europeans in the top 50 ICT companies by market capitalisation 53 .

Tracking progress against the targets based on 2023 data, the report highlights the EU’s strong position in HPC and quantum as well as limited progress in connectivity coverage, especially in terms of quality. Only 64% of households have access to fiber and the rate of progress (13,5%) is far lower than what we need to reach the gigabit target by 2030. Moreover, there is an extremely low uptake of Gigabit connections of just 18,5%. Coverage of high quality 5G extends only to merely 50% of the EU territory (based on main pioneer band), with the large majority of the deployment of 5G not being stand alone. The investment needed to reach connectivity targets is still significant, amounting to EUR 200 billion. Moreover, the deployment of an estimated 1186 edge nodes is insufficient and predominantly utilised for testing and research, rather than being fully operational and available for general use.

In the semiconductor industry, EU revenues declined by 3% between 2022 and 2023 (dropping from EUR 90 billion to 87 billion), while global revenues decreased by 14% (from EUR 918 billion to 791 billion), indicating however a relatively greater resilience in the EU market.

In the realm of quantum technologies, the first milestone of the Digital Decade target – having the first quantum accelerated computer by 2025 – is expected to be reached this year. However, the level of private investment is still low, representing a mere 5% of total funding.

With limited annual progress, businesses’ uptake of digital technologies remains a key challenge. Cloud adoption has increased by only 7%, falling short of the 9% needed to meet the target. There has been no noticeable improvement in AI take-up, and merely 32% of European companies have adopted data analytics. The digitalisation of SMEs is also progressing too slowly and unevenly across the EU, with an annual increase of only 2,5%, which is half of the growth rate required to achieve the target. The startup ecosystem, despite some progress – 5,6% growth in the number of unicorns – remains underdeveloped. The EU is home only to 263 unicorns (13% of the total), compared to 387 in China, and 1 539 in the USA, partly due to a lack of private capital.

4.1.2. Progress towards the protection and empowerment of EU people and society

Key Findings from the Eurobarometer 2024 Report 54 :

- 3 out of 4 Europeans consider that the digitalisation of daily services makes their lives easier.

-46% European citizens think that misuse of personal data is one of the online issues that have major personal impact on them and 45% think the same about fake news and disinformation, while non-justified removal of content and non-transparent content moderation practices were the two least mentioned issues.

- 82% of respondents consider it important for public authorities to ensure that European companies can grow and become European Champions able to compete globally, while 86% believe equally in the importance of increasing research and innovation for more secure and strong digital technologies.

- 9 out of 10 Europeans think it is important for public authorities to provide proper human support to help individuals navigate digital transformation and digital services.

- The insufficient protection of minors on online platforms is one of the most impactful concerns for one-third of respondents, with this concern increasing by 10 percentage points since last year.

- An increasing majority of Europeans is aware that their rights that apply offline should also be respected online (62%), but less than a half of them (45%) feel that their digital rights are well protected.

While the European population increasingly recognizes the importance of digital transformation, it is increasingly sensitive to the effect of the rapid pace of change in their lives. For the digital transformation to be successful, it is essential for people to remain engaged and supportive. According to 88% of the EU population, public authorities are expected to provide adequate support to help citizens navigate the effects of digital transformation in their lives. The promotion and implementation of the Declaration on Digital Rights and Principles 55 , which aims to give citizens a clear reference point about the type of digital transformation the EU wants, should be stepped up in this context.

Very significant work remains to be done to reach the 2030 targets on digital skills: only 55.6% of EU’s population has at least basic digital skills and, at the current pace, the number of ICT specialists will reach just 12 million by 2030 – well below the EUR 20 million target and amid growing competition for digitally skilled talent. The annual progress achieved in 2023 is alarmingly insufficient, falling between 2.5 and 3 times less than the rate needed to reach the targets by 2030.

The availability of eID schemes, digital public services and access to e-Health records is increasing, but there are still significant differences among countries, as the adoption of eID varies. Significant gaps exist in the provision of fully user-centric, accessible 56 , and sovereign digital public services. 

Online risks are on the rise and disinformation has been identified as one of the most destabilising factors for our societies, requiring comprehensive, coordinated action across borders and actors. The EU cybersecurity landscape continues to be strongly impacted by geopolitical events, with cyberattacks on the rise: ENISA recorded more than 2 500 cyber incidents from July 2022 to June 2023, with 220 incidents specifically targeting two or more EU countries 57 . In 2023, 33.5% of individuals surveyed in the EU 58 reported encountering hostile or degrading online messages, targeting specific groups due to their political and social views, racial or ethnic origin, or sexual orientation, highlighting the prevalence of online hate speech. Moreover, a 10 percentage points increase in public support for better protecting children online, highlights a growing focus on safeguarding children in the digital space. The combination of the significant amount of time spent online by children and the sophisticated, invasive digital techniques used by advertisers, poses new and serious challenges for the protection of children in the online space including risks for their mental health, or abuse of unhealthy food, tobacco, or alcohol. Furthermore, the health dimension of digitalisation has recently attracted attention due to the negative impacts that particularly certain online interface designs, can have on health in general, and in particular on mental health.

One of the major challenges faced in the EU’s digital transformation, as seen from monitoring the objectives and targets of the Digital Decade, is the limited spread of digital technologies beyond large cities, linked to increasing digital divides and to the slow digitalisation of businesses, especially SMEs. Convergence is still lagging as major population centres often concentrate investments, human capital and digital infrastructures while small cities, remote and rural areas struggle to stimulate economic activity and face demographic challenges. A successful Digital Decade will therefore not be possible without greater focus on inclusiveness and the participation of all actors at all levels including regions and cities. To this end the Digital Decade policy programme offers a framework for cooperation among actors with new opportunities of collaboration.

4.1.3 Leveraging digital transformation for a smart greening

The digital sector currently accounts for 7-9% of global electricity consumption, which is projected to rise to 13% by 2030 due to the growing demand for Internet services and AI at global level. Efforts to reduce energy consumption of digital services will be crucial, with a focus on energy-efficient semiconductors and climate-neutral edge nodes. Despite its importance for achieving a circular economy, the recycling of digital devices remains limited, with only 10.4% of people reporting to have recycled their mobile/smart phones and another 9.7% and 12.8% their laptops/tablets and desktop computers respectively.

The increasing role of digital transformation and technology adoption in reducing the ICT environmental footprint, driving productivity growth and efficiency gains for companies, as well as advancing breakthroughs in energy, net-zero and clean technologies, is becoming more evident. This sector has indeed the potential to reduce total greenhouse emissions by 15%-20% before 2030, across the whole economy. A significant achievement in 2023 is the development and implementation of a science-based methodology for measuring the net environmental impact of digital solutions, facilitated through the European Green Digital Coalition.

Finally, the RRF is instrumental in supporting the twin, digital and green transition, including Smart Mobility and Smart Energy Systems (such as smart grids and ICT systems).

4.2 The strategic Digital Decade national roadmaps and their role in achieving the EU’s ambition

As mentioned, for the first time, the analysis of EU progress towards the Digital Decade benefits from an analysis of the combined national ambitions as presented in national roadmaps 59  of all Member States. This initial set of national roadmaps represents a successful starting point demonstrating a unified effort by Member States to contribute to the Digital Decade.

In their national roadmaps, Member States propose 1 623 measures aimed at achieving the Digital Decade targets and objectives, amounting to EUR 251.9 billion investments (including EUR 168 billion from the public budget which amounts to 1% of the EU’s GDP). The proposed measures focus mainly on semiconductors (public budget EUR 40 billion, 24%), connectivity (EUR 29 billion, 17%), and basic digital skills (EUR 25 billion, 15%). While references to general objectives in national roadmaps are less developed than the specific targets, they still encompass 414 measures addressing competitiveness (public budget EUR 56.8 billion), technological leadership (EUR 22.3 billion), and cybersecurity (EUR 5.9 billion).

The roadmaps contain also national targets corresponding to the Digital Decade targets and ambitions as illustrated in Figure 3 below. However, only 70% of the expected targets were included in national roadmaps, with 52% of targets being aligned with the EU-level targets. The level of ambition of the Member States is only comparable to the EU’s Digital Decade in the case of basic digital skills, VHCN 60 , basic 5G 61 and Digital Intensity Index while being much lower for FTTP, ICT specialists, data analytics, cloud and AI.

Figure 3. National 2030 targets compared to EU targets

An analysis of the collective effort based on roadmaps against the achievement of targets (cf. Table 2) shows that in the current scenario, the collective efforts of the Member States fall short of the EU’s level of ambition for at least 8 out of 12 KPIs.

Table 2. Aggregation of the national roadmaps’ commitments

KPI

Basic digital skills

ICT Specia-lists

VHCN

FTTP

5G 62

Cloud

Data Ana- lytics

AI 63

DII

Digital Public Services

e-Health

Citi-zens

Busi-ness

% EU target achieved 

98%

62%

97%

69%

94%

63%

51%

48%

95%

77%

77%

76%

A more thorough assessment 64 demonstrates that substantial improvements and adjustments of the national roadmaps are needed to align them with the ambition and benchmarks of the Digital Decade policy programme, as per the Commission’s 2023 Guidance 65 . In particular, all targets should be covered by national targets and trajectories that reflect the EU’s level of ambition, as defined by the co-legislators, and should be translated into more ambitious measures, including budgetary considerations. To ensure a more sustained progress towards these targets Member States should also present an analysis of the impact that these measures will have. Greater attention is required on the challenges faced by each Member State and the general objectives (i.e., human centred digital space, competitiveness, fairness, resilience, sovereignty, inclusiveness, sustainability and greening, coherence of the action) linked with the European Declaration on Digital Rights and Principles 66 . These objectives also emphasise the promotion of cultural and linguistic diversity. The monitoring of the Declaration indeed shows that increasing the profile of the Declaration at national level could also help improve outcomes in the years to come 67 . This will ensure coherence and efficiency in collective action. Finally, stakeholder consultation is a key element of the Digital Decade, and it should be conducted and appropriately reflected in the national roadmaps.

4.3 Recommendations on the way forward

All the advancements made by the EU, supported by vigorous policy action, already start delivering significant progress towards Digital Decade objectives and targets with concrete effects on basic connectivity coverage, semiconductors, and super-computing, as further highlighted in Annex 1.

However, considering the limited progress made in 2023 and the important needs identified by the Digital Decade monitoring in most areas, there is still a critical need for action and investment at EU and national level regarding notably Digital Skills, ICT experts, high-quality connectivity, dissemination of AI and data analytics, start-up ecosystems, whilst efforts in semiconductors should be continued. Among all critical areas, the fostering of collaborative connectivity and computing networks 68  will require at least EUR 280 billion of investment by 2030 69 .

Considering this comprehensive analysis, the Annexes 1 and 3 of this report provide concrete recommendations to Member States on the way forward, addressing the whole possible scope of action: mobilising investments, completing the single market, disseminating technologies, and fostering cooperation between Member States. In a nutshell the recommendations revolve around the following main pillars.

First, in order to swiftly implement and enforce the regulatory frameworks established to drive the digital transformation (including the DSA, the DMA, the AI act, the EU Digital Identity Regulation, the OOTS, the Cybersecurity and Data legislations and the EU toolbox for 5G cybersecurity), the EU and Member States should engage in more coordination and cohesion across the board, synergies among governance entities and funding programmes, and the mitigation of unnecessary administrative burden.

In particular, the reduction of the administrative burden, both in the implementation and enforcement of existing legislative acts, entails promoting synergies, avoiding duplication and adopting a coordinated approach to managing the existing governance structures, with a coherence between digital and cybersecurity policy. In this context, the Digital Decade Board can serve as a central point for Member States, with a broad mandate covering various aspects of digital transformation, such as governance, reporting obligations, and multi-country projects. By leveraging this board, efforts can be further streamlined and harmonised across different entities, across various Member States, ultimately resulting in an adoption the ‘whole-of-government' approach underpinning the Digital Decade. Such approach can break down boundaries between government agencies enabling smooth data and information sharing across their systems. This approach can also foster collaboration in mapping reporting obligations, consolidating, or codifying the digital legal framework, ultimately streamlining processes for businesses and citizens.

Secondly, the Member States should intensify their efforts to strengthen their competitiveness, encompassing productivity, resilience, greening and sovereignty. This requires increased measures and investments, as well as a step change in addressing obstacles to the single market. The EU should be ready to ensure the availability of reliable, fast and secure collaborative connectivity and computing networks throughout the EU, fostering the digitalisation of both business and public services, for the benefit of national and cross-border users. The EU should also equip itself with a more coherent and strategic framework of investment, governance, and capacity-building for an effective and inclusive skills and talent development for the digital age, notably through a swift adaptation of EU education and training systems.

Significant mobilisation of further public and private investments will be critical to foster research, innovation, and digital infrastructure development. These investments are also essential to bridge the digital divide across regions. This includes the cultivation of start-up ecosystems, the creation of software and chips that meet sustainability and security standards and the leveraging of synergies between civil and defence sectors. Progress toward a true capital markets union is also essential for driving growth and innovation.

The report also highlights the need to extend the scope of public policy interventions, particularly in public procurement. This will help accelerate the development of the EU’s digital industrial and services base, including for sovereign AI and cloud technologies and services.

Thirdly, there is still untapped potential to foster the dissemination of digital technologies across society and regions, particularly by developing cooperation and collaboration between European actors at the local level. Building on EDICs, EDIHs and partnerships such as EuroHPC JU, the EU and Member States should establish closer links with local actors, including SMEs, start-ups, universities, etc. This collaboration should also extend to cities and local development banks to fully harness the potential of the European society. The experience and capacities of regions and cities are of paramount importance for a successful Digital Decade. With their practical experience, knowledge, and innovative solutions based on daily contacts with citizens and businesses, regions and cities can help better promote and monitor implementation of the Declaration on Digital Rights and Principles, tackling digital divides and ensuring that the benefits of digitalisation can reach all actors including SMEs.

Fourthly, building on citizens’ growing perception of the potential of the digital transformation to foster a smart green transition, Member States can capitalise on the significant achievements made in 2023 in better understanding the synergies between the twin transitions and possible leverages. The priority is to transition from small scale pilots and initiatives to large scale projects based on cooperation between public and private actors. To achieve this goal, it is notably essential to establish a quantitative target on greening in the Digital Decade, to accelerate the work on identifying best practices as well as to intensify the coordination between national Digital Decade strategic roadmaps and National Energy and Climate Plans (NECPs).

Fifth, a common effort is required to ensure that people and their rights, as committed to in the Declaration on Digital Rights and Principles, are at the centre of the digital transformation, ensuring that they have the adequate digital skills and keeping them on board. To achieve this objective, the EU and Member States will need to better monitor societal and economic risks stemming from digitalisation, addressing issues such as inequality, poverty, online discrimination, and social exclusion and foster direct human support to those who are facing difficulties. Member States should also intensify action against threats to public health and democracy, while at the same time ensuring that the online space becomes a genuinely safe, healthy and secure environment for children. These actions to address inequalities, online discrimination, divides and social exclusion linked to the growing centrality of online interfaces in daily lives are critical to prevent a growing digital disconnect from evolving into digital discontent.

Finally, the identification and sharing of best practices is a key driver of a successful digital transformation and was identified as a priority for both the Commission and Member States. The goal is to foster increased cooperation, mutual inspiration and the sharing of success stories and solutions to systemic challenges. Such collaboration is essential for advancing towards the EU’s 2030 goals and the broader digital transformation. As agreed by the Digital Decade Board and based on the interest of Member States, the process of sharing best practices is scheduled to intensify in 2024, initially focusing on three pilot areas: (i) advancement of digital skills; (ii) uptake of advanced digital technologies, especially AI; and (iii) monitoring of the green footprint of digital technologies. The process will be led by Member States with the Commission acting as an accelerator to identify, select and monitor best practices and their dissemination.

5. International dimension

International cooperation efforts on digital policies focus on (i) promoting the EU human-centric model and regulatory framework, (ii) protecting the EU’s strategic interests including EU economic security and (iii) reinforcing the global role of the EU in the digital world.

The Declaration on Digital Rights and Principles 70 has influenced international texts, including the OECD Declaration on a Trusted, Sustainable and Inclusive Digital Future 71 and discussions for a United Nations Global Digital Compact. The EU has laid down foundations for Digital Diplomacy through Council Conclusions and aims for a stronger, more strategic approach in global digital affairs. The importance of the international dimension of EU digital policies was further emphasised by the European Council in its Conclusions of 18 April 2024, which underlined the need to strengthen the EU’s leadership in global digital affairs and invited the Commission and the High Representative to prepare a joint communication on the subject.

The Commission has continued to develop its network of Trade and Technology Councils (TTC) and Digital Partnerships with like-minded partners like the US, India, Japan, South Korea, Singapore and Canada, developing cooperation on investments and technical support, policy and legislation as well as standardisation. Through the EU-US TTC, the EU has advanced cooperation in key areas such as emerging technologies, secure and resilient connectivity and protection of human rights and values online. The TTC with India and the Digital Partnerships with Japan, the Republic of Korea and Singapore showcase the EU’s strategic engagement in the digital field with the Indo-Pacific.

In the Latin America and Caribbean (LAC) region, bilateral digital policy dialogues have been set up with Brazil and Argentina and a dialogue is planned with Mexico, in complement to the bi-regional dialogue established under the EU-LAC Digital Alliance 72 . In Asia, the EU held a second High Level Dialogue on Digital with China in September 2023 as well as the High- Level Economic Dialogue. The dialogue notably discussed problems EU companies encounter in China such as access to ICT standardisation bodies or cross-border data.

The Global Gateway initiative focuses on digital infrastructure investments to bridge the global digital divide and enhance secure digital connections, notably the deployment of secure 5G networks provided by trusted vendors and the security and resilience of submarine cables, supporting the EU’s digital resilience and reducing dependencies. The Commission has continued to support digital transformation efforts in enlargement countries and the EU neighbourhood, including a long-term roaming arrangement with Ukraine through the EU-Ukraine Association Agreement 73 . The Commission has also engaged in multilateral fora notably on artificial intelligence (G7 Hiroshima AI Process, Council of Europe Convention). To safeguard economic interests, the EU has implemented measures such as the EU Economic Security Strategy, promoting cooperation with key partners in emerging technologies. These measures aim to balance economic openness with strategic interests and enhance the EU's resilience in critical sectors.

Trade policy and agreements also play a vital role in this regard by setting the global and bilateral rules for digital trade in an open but assertive manner, based on European values. The Commission negotiated ambitious commitments on digital trade in recent trade agreements with New Zealand, Chile and Japan. Trade rules allow EU businesses and consumers throughout the economy to have access to the most innovative and best performing goods and services and EU businesses to access to a wider customer base in a global market. As the geopolitical environment is expected to remain tense, agreeing binding digital trade rules with like-minded countries is important to ensure that EU companies can secure access to third country markets and trusted cross-border flows of data, to allow EU companies to scale up and thrive in the digital economy at global level. The EU has also been a driving force in the WTO plurilateral negotiations on e-commerce amongst 90 WTO members, accounting for over 90% of global trade. Most recently, in 2023, the Commission opened negotiations for modern self-standing digital trade agreements with Singapore and with Korea. 

6. Conclusions

Over the past 5 years, the EU has forged an unprecedented digital legacy by developing a vision, the Digital Decade objectives and targets, and the tools to shape its digital transformation towards the achievement of such vision. Its unique digital regulatory framework remains unparalleled, while innovation and industrial policy continue to grow increasingly assertive. 

The state of play presented in this report calls for leveraging the acquis to intensify joint action on the EU’s digital transformation. Member States are invited to take note of the analysis in this State of the Digital Decade report and review the horizontal and Member State-specific recommendations provided in the annexes. It is critical that Member States respond to this call for action and adjust their national roadmaps to align with the ambition of the Digital Decade policy programme, before November 2024 as requested by the Digital Decade decision 74 .

Considering the evidence presented in this report, the Commission will continue its discussions with Member States, the European Parliament, and stakeholders on how to progress together, leveraging the Digital Decade’s governance mechanism, notably the Digital Decade Board. The report will also inform the co-operation with stakeholders and partners outside the EU.

As set out in the Digital Decade policy programme, the Commission will monitor and assess the implementation of these recommendations and report on the progress made in the State of the Digital Decade 2025 report.

The Commission will also start preparing the review of the Digital Decade policy programme, foreseen for June 2026.

(1)  https://digital-strategy.ec.europa.eu/en/library/2023-report-state-digital-decade.
(2)

Decision (EU) 2022/2481 of the European Parliament and of the Council of 14 December 2022 establishing the Digital Decade policy programme 2030, OJ L 323, 19.12.2022, p. 4–26.

(3)

 Commission analysis, SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 .

(4)

The report was drafted following a series of workshops and fact-finding missions which encompassed over 100 meetings held across all Member States. These meetings engaged authorities, regulators and civil society representatives.

(5)

In Figure 2 the ‘time to target’ is calculated by projecting the most recent observed average annual growth (as of 2023). It does not foresee any acceleration neither takes into account very recent actions that may have a positive impact. The current KPI for the 5G target does not take into account quality of service, and therefore most of the current 5G deployment can be categorised as “basic 5G”. "Stand-alone" 5G, which ensures high reliability, low latency and is crucial for enabling advanced features, is still not deployed on any meaningful scale, except in very few cases of private networks. Meanwhile, 5G coverage in the 3.4-3.8 GHz band, considered the primary pioneer band for 5G in the Union and the only available mid-band on a large scale offering a good balance between coverage and capacity, stands at only 51% in 2023. Since 2023, the European Commission together with the Member States is working on an update of the 5G indicator, which entails the development of a methodology to map quality of service (QoS).

(6)

This report is complemented by the Staff Working Document ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260, including horizontal and individual detailed analysis of the Digital Decade strategic roadmaps submitted by the Member States and reporting on the implementation of the European Declaration on Digital Rights and Principles (2023/C 23/01, OJ C 23, 23.1.2023, p. 1–7), which translates the EU’s vision of digital transformation into principles and commitments and provides a clear reference for people, policymakers and companies regarding the desired type of digital transformation in the EU.

(7)  See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 1 List of relevant policy initiatives.
(8)  The regulation is expected to be published in the Official Journal in summer 2024 (AI Act webpage: https://digital-strategy.ec.europa.eu/en/policies/regulatory-framework-ai).
(9)   Regulation (EU) 2022/868 of the European Parliament and of the Council of 30 May 2022 on European data governance and amending Regulation (EU) 2018/1724 (Data Governance Act)., OJ L 152, 3.6.2022, p. 1–44, http://data.europa.eu/eli/reg/2022/868/oj.
(10)   Regulation (EU) 2023/2854 of the European Parliament and of the Council of 13 December 2023 on harmonised rules on fair access to and use of data and amending Regulation (EU) 2017/2394 and Directive (EU) 2020/1828 (Data Act), OJ L 2023/2854, 22.12.2023, http://data.europa.eu/eli/reg/2023/2854/oj.
(11)  The regulation is expected to be published in the Official Journal in autumn 2024 (EHDS webpage: https://health.ec.europa.eu/ehealth-digital-health-and-care/european-health-data-space_en).
(12)  https://commission.europa.eu/news/once-only-technical-system-key-creation-first-european-data-space-2022-07-20_en. 
(13)  Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 establishing a single digital gateway to provide access to information, to procedures and to assistance and problem-solving services and amending Regulation (EU) No 1024/2012, OJ L 295, 21.11.2018, p. 1–38, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.295.01.0001.01.ENG.
(14)  Regulation (EU) 2024/903 of the European Parliament and of the Council of 13 March 2024 laying down measures for a high level of public sector interoperability across the Union (Interoperable Europe Act) OJ L, 2024/903, 22.3.2024, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32024R0903.
(15)  Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market For Digital Services and amending Directive 2000/31/EC (Digital Services Act), OJ L 277, 27.10.2022, p. 1–102, https://eur-lex.europa.eu/eli/reg/2022/2065/oj  1–102, https://eur-lex.europa.eu/eli/reg/2022/2065/oj ;  https://digital-strategy.ec.europa.eu/en/policies/list-designated-vlops-and-vloses ;  https://digital-strategy.ec.europa.eu/en/policies/dsa-enforcement . .
(16)  Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828 (Digital Markets Act), OJ L 265, 12.10.2022, p. 1–66, http://data.europa.eu/eli/reg/2022/1925/oj; DMA designated Gatekeepers (europa.eu)  . 
(17) Directive (EU) 2018/1972 of the European Parliament and of the Council of 11 December 2018 establishing the European Electronic Communications Code, OJ L 321, 17/12/2018, p. 36-214, http://data.europa.eu/eli/dir/2018/1972/oj.
(18)  Commission guidelines on video sharing platforms, on European works and on the scope of MS media literacy reports (https://digital-strategy.ec.europa.eu/en/policies/audiovisual-and-media-services).
(19)  Directive (EU) 2022/2555 of the European Parliament and of the Council of 14 December 2022 on measures for a high common level of cybersecurity across the Union, amending Regulation (EU) No 910/2014 and Directive (EU) 2018/1972, and repealing Directive (EU) 2016/1148, OJ L 333, 27.12.2022, p. 80–152, http://data.europa.eu/eli/dir/2022/2555/2022-12-27 (consolidated text).
(20)  The regulation is expected to be published in the Official Journal in 2024 (Cyber Solidarity Act webpage: https://digital-strategy.ec.europa.eu/en/policies/cyber-solidarity).
(21)  The regulation is expected to be published in the Official Journal in 2024 (Cyber Resilience Act webpage: https://digital-strategy.ec.europa.eu/en/policies/cyber-resilience-act).
(22)  Regulation (EU) 2024/1183 of the European Parliament and of the Council of 11 April 2024 amending Regulation (EU) No 910/2014 as regards establishing the European Digital Identity Framework, OJ L, 2024/1183, 30.4.2024, http://data.europa.eu/eli/reg/2024/1183/oj.
(23)  Regulation (EU) 2024/1309 of the European Parliament and of the Council of 29 April 2024 on measures to reduce the cost of deploying gigabit electronic communications networks, amending Regulation (EU) 2015/2120 and repealing Directive 2014/61/EU (Gigabit Infrastructure Act), OJ L, 2024/1309, 8.5.2024, http://data.europa.eu/eli/reg/2024/1309/oj.
(24)   https://commission.europa.eu/strategy-and-policy/eu-budget/performance-and-reporting/horizontal-priorities/digital-tracking_en .
(25)  This amount represents the total estimated costs of measures included in the Recovery and Resilience Plans, including REpowerEU measures.
(26)  Source: Joint Research Centre report ‘Mapping EU level funding instruments to Digital Decade targets - 2024 update’ (Signorelli et al., 2024).
(27) The Digital Decade targets indicated in the table with an asterisk (*) benefit from HPC funding. This funding not only supports computing research and infrastructures (e.g., quantum, cloud, AI etc.) but also the training of specialists, the development of hyper-connectivity (5G, edge nodes), and the adoption of HPC by SMEs. In total HPC funding amounts to EUR 3 267 million, mainly channelled through DIGITAL (EUR 1 967.2 million), Horizon Europe (EUR 900 million), CEF (EUR 200 million), and the RRF (EUR 168 million).
(28)  Including measures in the REpowerEU chapters contributing to the digital transition. It should be noted that those measures are considered in the analysis in this report but do not contribute to the achievement of the 20% digital target set by the Regulation establishing the Recovery and Resilience Facility (see also the Guidance on Recovery and Resilience Plans in the context of REPowerEU ). Excluding measures under the REpowerEU chapter, the amount of the RRF that contributes to the digital transition is about EUR 149.7 billion, which represents about 26% of the total RRF funds. 
(29)  While the overall Cohesion Policy funds total is EUR 392 billion, only the following funds are included in the mapping. and subsequent estimations: the European Regional Development Fund (ERDF), the Cohesion Fund (CF), and the European Territorial Cooperation Fund (Interreg), Including the digitalization investments from the REPowerEU chapters.
(30) Excluding measures under the REpowerEU chapter. The share is calculated using Annex VII to the Recovery and Resilience Facility (RRF) Regulation.
(31)   https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/common_indicators.html?lang=en. .
(32) The outermost regions (Art. 349 TFEU) are an integral part of the EU and are located in the Atlantic Ocean, the Caribbean basin, South America and the Indian Ocean. CEF Digital provides higher co-financing rates to projects involving the outermost regions and has funded submarine cable infrastructure in these regions worth over EUR 125 million.
(33) 5G Seagul, 5G DeLux, 5G NETC, MEDCOR, 5G Balkans, BaltCor5G.
(34) Continent-Azores-Madeira ring, Pisces project, ViaTunisia project, as well as various Arctic connectivity projects.
(35)   https://digital-strategy.ec.europa.eu/en/library/second-staff-working-document-data-spaces .
(36) Namely the EU Beneficial Ownership Registers Interconnection System (BORIS) and with the EU Insolvency Registers Interconnection system (IRI).
(37) For example, the hub CIDIHUB in the Canary Islands focuses on digitalisation of businesses while EDIH of Réunion specialises in cybersecurity with funding from DIGITAL.
(38)   https://www.statista.com/statistics/732308/worldwide-research-and-development-information-communication-technology/ .
(39)   https://www.statista.com/statistics/732308/worldwide-research-and-development-information-communication-technology/ .
(40) With Joint Undertakings for Chips, EuroHPC, Smart Networks and Services and other partnerships in AI, Data and Robotics partnership, Photonics or Made in Europe and the Virtual Words and Advanced Materials Partnership).
(41)  https://commission.europa.eu/funding-tenders/find-funding/eu-funding-programmes/technical-support-instrument/technical-support-instrument-tsi_en.
(42) https://reform-support.ec.europa.eu/tsi-2024-flagship-ai-ready-public-administration_en.
(43)   https://reform-support.ec.europa.eu/our-projects/flagship-technical-support-projects/tsi-2025-flagship-compact-pillar-ii-capacity-europes-digital-decade_en.  
(44)   https://single-market-economy.ec.europa.eu/industry/strategy/industrial-alliances_en .
(45)   https://www.top500.org/lists/top500/list/2024/06/.
(46) https://digital-strategy.ec.europa.eu/en/news/commission-launches-ai-innovation-package-support-artificial-intelligence-startups-and-smes.
(47) JOIN/2023/20 final – Joint Communication to the EP and the Council on “European economic security strategy”.
(48) C(2023) 6689 final – Commission Recommendation on critical technology areas for the EU's economic security for further risk assessment with Member States.
(49) For a comprehensive description of the ongoing EDICs: SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 Annex 2 Update on MCPs / EDICs.
(50)

 Cf. Communication ‘State of the Digital Decade 2024’ with annexes, COM(2024) 260: https://digital-strategy.ec.europa.eu/en/news-redirect/833324 .

(51)      Since last year, there has been a marginal 0.5 percentage point increase in EU’s share (https://www.statista.com/statistics/263801/global-market-share-held-by-selected-countries-in-the-ict-market/). It may be early to interpret this as a shift in trend, but this could be an encouraging sign.
(52)  https://cerre.eu/wp-content/uploads/2022/12/Digital-Industrial-Policy-for-Europe.pdf.
(53)   https://companiesmarketcap.com/tech/largest-tech-companies-by-market-cap/.
(54)

 Special Eurobarometer 551 ‘The Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351.

(55)

https://digital-strategy.ec.europa.eu/en/policies/digital-principles.

(56) Cross- border availability remains limited for digital public services for citizens and for businesses, both reaching a score of around 70 points out of 100 (Source: eGovernment Benchmark, Capgemini).
(57)   https://www.enisa.europa.eu/publications/enisa-threat-landscape-2023 .
(58)

 Special Eurobarometer 551 ‘The Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351.

(59) https://digital-strategy.ec.europa.eu/en/policies/national-strategic-roadmaps.
(60) Very high capacity networks (VHCN) include both fibre to the premises (FTTP) and DOCSIS 3.1 technologies.
(61)  See footnote 5. The current KPI for the 5G target does not take into account quality of service, and therefore most of the current 5G deployment as well as the corresponding national 5G targets can be categorised as “basic 5G”.
(62) Cf. footnote above.
(63) The most recent figures available on AI take-up by enterprises were collected in 2023 and cannot take into account the possible effect of the innovation package to support Artificial Intelligence startups and SMEs that was launched by the European Commission in January 2024 (https://ec.europa.eu/commission/presscorner/detail/en/ip_24_383).
(64)

 SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325.

(65)  https://digital-strategy.ec.europa.eu/en/library/guidance-member-states-preparation-national-digital-decade-strategic-roadmaps.
(66)

 European Declaration on Digital Rights and Principles for the Digital Decade 2023/C23/01: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOC_2023_023_R_0001.

(67)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325  Annex 4 Monitoring of the European Declaration on Digital Rights and Principles .

(68) An ecosystem that spans semiconductors, computational capacity in all kinds of edge and cloud environments, radio technologies, to connectivity infrastructure, data management, and applications.
(69)  European Commission, White Paper - On options for enhancing support for research and development involving technologies with dual-use potential, 2024: https://research-and-innovation.ec.europa.eu/document/download/7ae11ca9-9ff5-4d0f-a097-86a719ed6892_en; Key Note Speech by President Ursula von der Leyen at the EDA Annual Conference 2023: Powering up European Defence, 30 November 2023: https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_23_6207 . 
(70)

 European Declaration on Digital Rights and Principles for the Digital Decade 2023/C23/01: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOC_2023_023_R_0001.

(71)

OECD, Declaration on a Trusted, Sustainable and Inclusive Digital Future: https://legalinstruments.oecd.org/en/instruments/OECD-LEGAL-0488.

(72)

EU- Latin America and Caribbean Digital Alliance: https://international-partnerships.ec.europa.eu/policies/global-gateway/eu-latin-america-and-caribbean-digital-alliance_en.

(73)

Association Agreement between the European Union and its Member States, of the one part and Ukraine of the other part: http://data.europa.eu/eli/agree_internation/2014/295/2023-12-01.

(74)  DECISION (EU) 2022/2481, Article 8.3.
Top

Brussels, 2.7.2024

COM(2024) 260 final

ANNEX

to the

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2024


Annex 1: Competitiveness and sovereignty, people, smart greening, policy coherence and synergies



Table of Contents

Introduction    

1. Key drivers of the EU’s digital transformation in 2024    

1.1 A new geopolitical paradigm    

1.2. Fostering competitiveness in a complex economic context    

1.3. Entering a new age shaped by generative AI    

1.4 Keeping people and societies on board in an increasingly hybrid context    

2. A competitive, sovereign and resilient EU based on technological leadership    

2.1. Building digital technological leadership for future competitiveness    

2.1.1. Investing in research and innovation    

2.1.2. A functioning Digital Single Market as a public good for EU’s productivity    

2.1.3. Developing and deploying sovereign and resilient collaborative connectivity and computing infrastructure    

2.2. Supporting EU-wide digital ecosystems and scaling up innovative enterprises    

2.2.1. Promoting the digital transformation of EU enterprises    

2.2.2. Scaling up innovative enterprises    

2.3. Strengthening cybersecurity    

3. Protecting and empowering EU people and society    

3.1. Empower people and bring the digital transformation closer to their needs    

3.1.1. Equip people with digital skills    

3.1.2. Trusted solutions for digital interaction: the EU Digital Identity and the digital euro    

3.1.3. Efficient digital public services user-friendly and accessible to all    

3.1.4. Leverage on digital technologies for health    

3.2. Protect people and a build safe and human centric digital environment and technologies    

3.2.1. Build safe digital environments and safeguard fundamental rights online    

3.2.2. Protect and empower children (including via age verification)    

3.2.3. Promote responsible and human-centric AI systems    

3.3. Promote and preserve our democracy    

3.3.1. Address disinformation and preserve election integrity    

3.3.2. Access to media and media pluralism    

4. Leveraging digital transformation for a smart greening    

4.1. The nexus between green transition and digital transformation    

4.2. Towards Sustainable digital infrastructures    

4.3. The digitalisation for the green transition is entering into concrete delivery.    

4.4. The way forward    

5. Building coherence and synergizing digital policies and spending    

5.1. Horizontal implementation through national roadmaps    

5.2. Striving for an effective, efficient and red-tape free implementation of the digital regulatory environment    

5.3. Synergising funding for digitalisation    

5.4. Increase cooperation across levels, including involving cities and regions more in the Digital Decade    



Table of figures

Figure 1. R&D expenditure on information and communication technology (ICT) worldwide in 2022 (Source: European Commission. (2023) and Statista Inc)    

Figure 2. FTTP coverage in the EU. Historical data, Digital Decade (DD) trajectory and 2024 baseline trajectory towards 2030    

Figure 3: Edge node deployment (EU projection to 2030)    

Figure 4. Number of quantum computers in the EU. Trajectory towards 2030    

Figure 5. Quantum technologies start-ups International Benchmarking study    

Figure 6. Percentage of enterprises using cloud services in the EU. Historical data, Digital Decade (DD) trajectory and 2024 baseline trajectory towards 2030    

Figure 7. Percentage of enterprises using AI in the EU. Historical data, Digital Decade (DD) trajectory and 2024 baseline trajectory towards 2030    

Figure 8. AI venture capital investments International Benchmarking study    

Figure 9. Share of enterprises using Data analytics in the EU. Historical data, Digital Decade (DD) trajectory and 2024 baseline trajectory towards 2030    

Figure 10. Digital Intensity Index Historical comparable data, Digital Decade (DD) trajectory and 2024 baseline trajectory towards 2030    

Figure 11. Unicorns International Benchmarking study    

Figure 12. Number of unicorns in the EU. Historical data and 2024 baseline trajectory    

Figure 13. At least basic digital skills in the EU. Historical data, Digital Decade (DD) trajectory and 2024 trajectory towards 2030    

Figure 14: ICT specialists in employment in the EU. Historical data, Digital Decade (DD) trajectory and 2024 trajectory towards 2030    

Figure 15: Online service provision for citizens (top chart) and businesses (bottom chart). Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030    

Figure 16: e-Health composite indicator. Historical data and DD trajectory    

Introduction

This annex is an integral part of the State of the Digital Decade 2024 report. It maintains the three-chapter structure from the 2023 report, focusing on competitiveness, people and society and smart greening, and introduces an additional chapter on synergising digital policies and spending.

This report also addresses the implementation of the Declaration on Digital Rights and Principles 1 . The Declaration translates the EU’s vision of digital transformation into principles and commitments.

Finally, the annex identifies significant gaps and shortages and recommends policies, measures or actions, addressed to all Member States. Such recommendations target areas where additional collective action is required. They advocate for the mobilisation of additional investments and actions to complete the Digital Single Market and boost the dissemination of technologies as well as foster cooperation among Member States.

The analysis primarily relies on the monitoring conducted through the Digital Economic and Society Index (DESI). It is further supported by relevant studies and expert analysis, and the National Digital Decade Strategic Roadmaps submitted by Member States.

1. Key drivers of the EU’s digital transformation in 2024

The key drivers identified in the 2023 Digital Decade report 2 remain globally relevant and important in 2024. However, there have been some notable intensifications and shifts. The current analysis and subsequent recommendations are made in the light of those developments.

1.1 A new geopolitical paradigm

Recent months have seen a marked increase in geopolitical inflection points, driven by escalating conflict, growing fragmentation and power politics 3 . The consequences of these trends, including the increase in cybersecurity threats 4 , disinformation, supply chain disruption, economic coercion and armed conflict, overlap and compound one another 5 . There is no indication that the risks generated by this situation are likely to tail off in the foreseeable future.

The global tech race has intensified in 2024. All major economies, including the EU, the US, China, Japan, and India, are becoming increasingly aware of the economic and national-security significance of advanced technologies and some countries are pursuing aggressive policies to regulate and, at times, secure technology supply chains 6 . As dependencies on these technologies are growing, their risk of being weaponised increases 7 .

Against a backdrop of permanent instability, the EU’s greatest assets are its economic power, its internal market, its resilience, and its wide network of trade partners 8 . In this context, the EU is assuming greater responsibility for its diplomatic leadership and its security and defence by boosting investments 9 and focusing on innovation, especially in dual-use digital technologies 10 and emerging disruptive technologies 11 .

1.2. Fostering competitiveness in a complex economic context

The economic landscape of 2024 is characterised by exceptionally high uncertainty, exacerbated by geopolitical tensions 12 . Additionally, Europe’s economic growth has experienced a slowdown, while debt levels have continued to rise through 2023 and 2024 13 . Furthermore, electricity prices have stabilised at a structurally high level, being three times as high as in the US and more than twice as high as in China 14 . The reasons include increasing inflation rates, a rise in the frequency and severity of adverse supply-side disruptions, and growing supply chain vulnerabilities for essential resources and technologies. Overall, this has created a more challenging investment environment for digital transformation 15 , resulting in the EU lagging significantly behind the US, where productivity gains since 2019 are tenfold in the US (6% compared to 0.6% in Europe) 16 .

All these elements highlight the urgent need for the EU to prioritise action in areas that foster innovation and growth, improve productivity, and mitigate disruptions – in particular in the areas of digital technologies and digital skills 17 . In a broader sense, substantial investments are required to face the challenges of digitalisation, environmental sustainability, population ageing, energy transition the emerging trend of deglobalisation and a reduction of reliance on fossil fuels 18 . Additionally, efforts to strengthen the single market’s attractiveness are crucial to reversing the EU’s declining competitiveness, which stems from insufficient integration 19 . Such measures are essential for modernising EU’s economy and boosting production capacity. Moreover, successfully twinning the green transition with the digital transitions is vital. Achieving these goals will require a dynamic digital transformation.

1.3. Entering a new age shaped by generative AI

While the transformative role of AI has been known for years, the rise of generative AI in 2023 marked a new phase in the technological revolution with the possibility of systemic chain reactions for business, citizens, and public administration in terms of both opportunities and risks. Generative AI is massively democratising content generation 20 – including accessibility, modularity, ease of use and human-like features – presenting tangible prospects for a wide use by all people and enterprises and bringing a possible unique acceleration in AI uptake by European citizens, businesses and public administrations 21 . The wide increase of computing power now enables the integration of AI across various aspects of daily life –cars, mobiles, homes and sport watches among others. This integration is driving systemic innovation, boosting economic efficiency, and enhancing the productivity of business operations. By 2030, the net impact of AI on Europe’s economy is projected to contribute an additional EUR 600 billion to a previously estimated EUR 2.8 trillion 22 . Moreover, the deployment of generative AI is expected to generate business value raging from EUR 2.4 to EUR 4.0 trillion annually 23 . This technological shift will also significantly affect jobs and skillsets in ways that are not yet fully anticipated and understood.

Developing of a robust generative AI ecosystem requires the EU mastering the entire technological value chain across all layers. This includes ensuring the simultaneous development of all interdependent components 24 , the chips and high-performance computing capacities crucial for training models and foundational data for AI systems, and the researchers and specialists who develop these systems. Additionally, it involves cultivating a skilled work force capable of deploying AI in business, including SMEs, and establishing a robust connectivity infrastructure, which encompasses data centres. Investments supported by a well-functioning; deep capital market are also vital. Each of these elements is crucial reinforcing the need for comprehensive progress in all facets of the Digital Decade, to avoid jeopardising the whole initiative.

1.4 Keeping people and societies on board in an increasingly hybrid context

Digital technologies increasingly permeate every aspect of people’s daily lives, sometimes with no or more limited offline alternatives. While they derive important benefits from this transformation in their lives it becomes crucial to tackle the pressing concerns stemming from vulnerabilities and inequities, and more generally to help people adjust to the fast pace of change, notably through a coherent and strategic approach on digital literacy. A substantial share of Europeans feels unequipped or uncomfortable with digital transformation: only 56% of adults have at least basic digital skills and about 100 million European citizens perceive digitalisation as a source of complexity in their lives. A large majority of Europeans (88%) believing that public authorities should prioritise providing human support to help navigate the digital transformation 25 . People also feel vulnerable in the face of online scams or unfair practices regarding cancellations, refunds, and price gouging 26 . Finally, concerns over AI’s impact on human contributions, including jobs, and the loss of privacy, are palpable and growing 27 .

In 2024, technology continues to test our societies with 72% of Europeans now worried about the potential for manipulation and disruption of elections in the EU through cyberattacks 28 . More generally, the exposure of democratic societies to foreign interference is of particular concern this year, - the biggest electoral year in history, with countries worldwide including for 450 million Europeans, voting in pivotal elections. In this context, societal polarisation is emerging as one of the foremost risks for democracies 29 , potentially jeopardising our ability to address effectively the pressing global challenges of our time. Therefore, one critical challenge is ensuring that digital technologies and services enhance – rather than undermine – trust in institutions.

Preventing interferences that impede societal stability such as disinformation is also paramount. Since May 2023, AI-generated false articles have increased by over 1 000% notably published by a constellation of more than 600 unreliable news and information websites 30 . New breeds of social media bots and tools created by generative AI are spreading political, election-related disinformation in ways that are increasingly difficult to detect. More evidence this year has shown that online platforms' recommendation algorithms carry a political bias that can disproportionately promote content, ultimately nudging public opinions and threatening democracy and social cohesion.

Finally, recent developments have exemplified the complex interlinkage of digital technologies with public health. On the positive side, the increased use of AI in health, health data spaces, and increased communication between patients and physicians are opening new opportunities 31 . However, 2023 has also highlighted the negative effects of online interface designs in mental health, as evidenced by addictive behaviours, attention deficits, or desensitisation to violence 32 . Recent analyses regarding children have pointed to a significant shift in childhood experiences, with the rise of a ‘phone-centric culture’. This shift, combined with overprotection offline and declining education standards, has been associated with lower PISA mathematics scores and worsening mental health outcomes, including higher rates of addiction, depression, anxiety, and self-harm 33 .

2. A competitive, sovereign and resilient EU based on technological leadership

The following sections monitor progress on the key general objectives for competitiveness, digital sovereignty (which requires technological leadership), cybersecurity, collective resilience and strong digital ecosystems, as well as their respective targets (gigabit connectivity, edge nodes, quantum and digitalisation of business, including SMEs, Cloud, AI and Big Data).

2.1. Building digital technological leadership for future competitiveness

In recent years, the EU’s competitiveness has faced significant challenges, particularly due to its technology related shortcomings. The EU has lagged behind in all three key dimensions of innovation, production, and adoption, especially in critical technological developments 34 . These deficiencies have notably affected its performance in digitalisation, raising concerns 35 . Furthermore, the EU’s lag in the ICT race has resulted in a decrease in the global revenue share of EU GDP in the ICT market by 10.5% over the decade between 2013 and 2022 36 , substantially effecting productivity gains.

When it comes to digital technologies and networks, the US is home to 28% of the world’s digital companies, followed by China at 23% and the EU at just 14%. This distribution highlights significant asymmetries in the production of digital services 37 . Notably, 80% of the technologies and services crucial for Europe's digital transformation are still designed and manufactured outside the EU 38 . Furthermore, European platforms have not yet managed to capture more than 5% of the global value over the past decade. Overall, European companies have minimal presence among global leaders, with only three out of the top 50 ICT companies by market capitalisation 39 being European.

In this context, a sustained and coordinated effort is essential to strengthen the EU's digital technological leadership, as a key factor in enhancing its competitiveness. This effort also requires robust governance mechanisms, for European companies and ensure a level playing field within EU’s single market.

The theme of building technological leadership is central in many National Digital Decade Strategic Roadmaps with Member States referencing it when outlining their national contexts, ambitions, and strategies. This aligns with the Digital Decade Policy Programme on building sovereignty and resilience through technological leadership. However, the number of reported measures explicitly contributing to these objectives is rather limited. Member States frequently describe their contribution to technological leadership by citing measures that address the related targets for digital infrastructure and technologies. Most of these measures focus on the development and deployment of sovereign and resilient digital infrastructure and technologies, often through multi-country projects and other cross-border initiatives. This is particularly evident in the areas of high-performance computing, blockchain and security operation centres. Furthermore, some measures reported in the roadmaps support research and development in technologies, networks and infrastructure, including through competence centres and innovation clusters.

2.1.1. Investing in research and innovation

While the EU continues to stand out as a significant contributor to global scientific advancement, since 2022 China has become the new frontrunner, leading publications in the fields of engineering, enabling strategic technologies and ICT 40 . Meanwhile, the EU is falling behind in patent applications, with only Sweden (thanks to the contribution of Ericsson) being the only EU country among the top ten filers of international patent applications. Chinese applications in 2022 were eight times the number filed in Europe and eight out of ten of the top filers of international patents are located in North-East Asia.

Additionally, the EU has also not met its 3% target levels for total (public and private) R&I investment 41  which represents only 2.2% of EU GDP. 42 This level is well below that of the US (3.4%) and slightly below China’s (2.4%), reflecting a particularly low level of investment in the private sector. This discrepancy is even more pronounced in the ICT sector, where the EU’s spending in the ICT sector was around seven times less than the US in 2022 (EUR 39.2 billion against 301.5 billion; cf. graph below).

Figure 1. R&D expenditure on information and communication technology (ICT) worldwide in 2022 (Source: European Commission. (2023) and Statista Inc 43 )

In the tech race, the EU’s companies are aiming for leadership in emerging and disruptive technologies, aiming to enhance their military and intelligence capabilities, while actively pursuing civil-military fusion strategies. To better protect the EU’s strategic assets, interests, autonomy and security, the Commission has introduced safeguards under the Horizon Europe Regulation 44 and investment safeguards under the European Innovation Council. Continuing its efforts to address vulnerabilities and research security risks in the R&I sector, the Commission proposed a Council Recommendation of 24 January 2024, 45 as part of the European Economic Security Strategy. This proposal highlights the necessity to advance a shared understanding of vulnerabilities and take steps to address them at an EU level.

Furthermore, the EU has adopted guidelines for research involving dual-use items, to ensure that risks are identified, managed and mitigated effectively by authorities and research organisations. 46 In line with the Economic Security Package of 24 January 2024 47 , the Commission has launched a public consultation on EU-level R&D support involving technologies with dual-use potential 48 . This consultation seeks to assess the adequacy of support in response to existing and emerging geopolitical challenges outlined in the Economic Security Strategy.

Technological leadership - Recommended policies, measures and actions 49 :

Mobilising investments

Member States are encouraged to effectively increase investment in digital R&I across sectors to achieve the target of 3% of EU GDP 50 . This includes investing in critical infrastructure and technologies, as well as supporting projects of strategic interest for the EU’s digital sovereignty.

Completing the Digital Single market

Member States should help plan and coordinate investment and reforms to deepen the Single Market, which is an essential factor for accelerating an EU-based digital transformation.

Member States should engage with the research and innovation sector to increase research security in national research activities, with the aim of managing risks such as undesirable transfer of critical technology, malign influence, and ethical or integrity violations by non-EU countries.

Fostering cooperation between Member States

Member States are encouraged to fully engage in the joint Economic Security risk assessment exercises. This involves coordinated risk assessments of technology security and technology leakage and notably to share the relevant information in their possession.

2.1.2. A functioning Digital Single Market as a public good for EU’s productivity

Intra-EU trade in services accounts for only about 8% of GDP compared with about 25% for goods. The past 5 years were marked by intensive legislative activity, creating the conditions for a competitive Single Market. A truly functional Single Market will be critical for progressing towards the Digital Decade objectives and targets. By securing a level playing field for all European businesses, the digital single market is one of the key enabling factors allowing companies to seek new opportunities, grow and achieve the necessary scale to compete at EU level and internationally, while also providing more tools to navigate difficult times. The Digital Single Market also widens consumer choice, removing artificial barriers within the EU and helps set common values and standards.

The Implementation of the Digital Markets Act 51 . European small-and medium sized enterprises and startups are reliant on large digital platforms: over 1 million EU businesses sold goods or digital services via online platforms in 2023.

The DMA lays down uniform rules to regulate the behaviour of digital platforms acting as gatekeepers between business users and their customers in the EU. This approach entails a shift from ex-post anti-trust intervention to ex-ante regulation with a set of rules that are changing the way large digital platforms are allowed to operate in the EU.

On 6 September 2023, the Commission designated six gatekeepers - Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft - under the DMA, which were joined by Booking following the designation of 13 May 2024.

In total, 24 core platform services provided by gatekeepers have been designated. These services are important gateways for businesses to reach their consumers.

From 7 March 2024, the first six gatekeepers have to comply fully with the DMA obligations for each of their designated core platform services. If it suspects that this is not the case, the Commission can initiate enforcement actions to ensure compliance. On 25 March, the Commission opened non-compliance investigations against Alphabet, Apple and Meta. Moreover, on 24 June, the Commission also opened new non-compliance investigation into Apple’s new contractual terms for developers. The Commission’s monitoring of effective compliance by gatekeepers is ongoing.

The effective implementation and enforcement of the recently approved legislation will be a key challenge over the coming years. Moreover, a true capital markets union in particular is key for succeeding in the strengthening of the Digital Single Market and ongoing green and digital transitions 52 .

Supporting competitive digital ecosystems and innovative businesses appear as objectives in a large number of National Digital Decade Strategic Roadmaps. This corresponds to the objectives of the Digital Decade Policy Programme, aiming at strong digital ecosystems and resilient supply chains.

However, the number of reported measures that explicitly contribute to these objectives is rather limited. Member States most often describe their contribution to competitiveness and resilience by referring to measures addressing the related targets for digital technologies and digitalisation of business. Most of these measures focuses on supporting digital ecosystems and scaling up innovative businesses.

A small number of measures include regulatory action for standard setting, interoperability and fair competition for users, businesses and regions (e.g., Bulgaria, Cyprus, Greece, Croatia, Luxembourg and Sweden), addressing dependencies for critical technologies supply (e.g., Denmark, Germany, France, Spain, and the Netherlands) as well as initiatives in relation to international exchange (e.g., Lithuania and Sweden).

2.1.3. Developing and deploying sovereign and resilient collaborative connectivity and computing infrastructure

The success of the Digital Decade will depend on the EU’s capacity to build an ecosystem that is grounded in the convergence between connectivity infrastructure and computing services, including chips manufacturers, electronic communications, network equipment providers, edge and cloud service providers, evolving towards the provision of collaborative connectivity and computing.

2.1.3.1. Gigabit connectivity infrastructure

Eurobarometer 2024: to facilitate their daily use of digital technologies, 4 out of 5 Europeans stress the need for better connectivity through the availability and affordability of high-speed internet connections 53 .

A cutting-edge digital network infrastructure is a prerequisite and an essential enabler for developing the services and applications that will benefit European business and consumers as a factor of productivity and economic development. For this reason, the ambition in the Digital Decade is to provide all Europeans and businesses with Gigabit fixed and mobile networks. In the Declaration on Digital Rights and Principles, the EU and its Member States also committed that digital connectivity should be affordable for all 54 .

The EU is still far from achieving its connectivity targets. Fibre networks, which are critical for delivering gigabit connectivity, only reach 64% of households, compared to over 99% in Japan and South Korea 55 . Despite significant progress in some Member States (in particular a 38% increase in FTTP deployment in Greece linked to a catch-up effect) average annual progress in the EU (+13.5%) remains far too limited to ensure that the target of 100% coverage will be achieved by 2030, taking into account the cost and difficulty of covering the remaining 36% of households. Without additional action and investment, less than 90% of the target will be achieved by 2030.

Moreover, significant discrepancies exist between Member States concerning in particular fibre rollout, which is critical for delivering gigabit connectivity. The discrepancy in the deployment of fibre networks may be explained by a different starting point in terms of the quality and the footprint of legacy infrastructure, the different geography of Member States, and also different approaches of public financing of fibre deployment and regulatory treatment of access to legacy networks. Avoiding unnecessary overbuild of infrastructure, in particular that which is publicly funded, has worked well, for instance in France.

There is still a significant digital divide between urban and rural areas in the European Union. Fixed VHCN coverage (FTTP & DOCSIS 3.1) increased by 11.5 p.p. from 44.2% in 2022 to 55.7% in 2023, which is still much below the overall fixed VHCN coverage of 78.8%. FTTP coverage in rural areas increased by 12.1 p.p. to 52.8% in 2023, lagging behind the overall FTTP coverage of 64.0%. 5G coverage in rural areas is increasing quickly, by 22.7 percentage points (p.p.) within one year, reaching 73.7% in 2023. However, this is still much lower than the overall 5G coverage at 89.3%.

On the demand side, as of 2023, the take-up of at least 1 Gbps broadband in the EU remains very low, at 18.5% 56 , while in 20 Member States, less than 10% of consumers have adopted this high-spread broadband. The take-up of high-speed fixed broadband subscriptions is lower in the EU than in the US (20.44%), South Korea (88.04%) and Japan (84.77%) 57 .

Figure 2. FTTP coverage in the EU. Historical data, Digital Decade (DD) trajectory and 2024 baseline trajectory towards 2030

While the rollout of 5G currently reaches 89.3% of EU’s population (with just 73.7% coverage in rural areas), it still fails to deliver advanced 5G performance widely across Europe. Most of the current 5G deployment can be categorised as ‘basic 5G’, while higher quality of service and additional functionalities is still needed to meet the demand for more advanced 5G services. This is also a requirement to achieve the computing continuum that includes connectivity, cloud/AI as well as the Internet of Things (IoT).

‘Stand-alone’ 5G, which ensures high reliability, and low latency, which is crucial for enabling advanced features, is still not deployed on any meaningful scale, except in a very few cases of private networks.

Meanwhile, in 2023, 5G coverage in the 3.4-3.8 GHz band (3.6 GHz band), which is considered the primary pioneer band for 5G in the EU and the only widely available mid-band offering large scale that offers the possibility of large contiguous spectrum portions of 80-100 MHz stood at only 50.6%. This band is critical because it has the potential to achieve high-quality 5G coverage (a good balance between coverage and capacity).

Accelerating deployment is crucial because the availability of high quality dense 5G infrastructure is not only a major driver for today’s EU competitiveness, but also the main basis for the future 6G deployment, which will reuse large parts of the 5G infrastructure (e.g., fibre backhaul, LEO satellites, etc.).

In their National Digital Decade Strategic Roadmaps, 24 Member States have provided trajectories for the gigabit connectivity target and the 5G coverage target. Most of the national target values (23/24 for gigabit connectivity and 22/24 for 5G) for 2030 encompassing basic 5G and very high-capacity network (VHCN). 58

In total Member States reported 93 measures contributing to the gigabit target, with a total budget of EUR 82 billion. Most measures focus on regulatory intervention to facilitate network deployment, including the regulation of access and the re-use of physical infrastructure, financial support for deploying networks in commercially non-viable areas (including rural areas and outermost regions) or for deploying backbone networks.

35 measures were reported to contribute to the 5G target, with a total budget of EUR 7 billion. Most of them focus on spectrum management, including spectrum awards, as well as on regulatory intervention to facilitate network deployment.

The deployment of connectivity networks needs to accelerate, as well as their evolution to a Connected Collaborative Computing Network (3C Network), as described in the White paper on connectivity How to master Europe's digital infrastructure needs? published in February 2024 and subject to public feedback 59 . 

According to estimates, the increasing softwarisation and cloudification of electronic communications networks require an additional EUR 80 billion of investment up to 2027. This is additional to bridging the more than EUR 200 billion investment gap required over the next 6 years to achieve the Digital Decade connectivity targets. 60

These estimates require sustained efforts by private operators and public authorities, going well above the amounts budgeted by the Member States in their national roadmaps to ensure high quality gigabit connectivity with high reliability, low latency and speed that users will need by 2030. More also has to be done to address the unique fragmentation of the European telecom retail markets and provide conditions for scaling up.

The White Paper on connectivity describes the future of the EU’s digital network infrastructures and related challenges. It underlines the need to invest in research and technological capability deployment, as well as in secure and resilient digital infrastructures, and to build a real single market for communications networks enabling the expansion of the sector from the traditional consumer internet market towards a computing continuum: from chips and other components for high-speed processors embedded in devices, to edge computing working cohesively with centralised cloud services and AI-powered applications managing the network.

The Smart Networks and Services Joint Undertaking (SNS JU) brings together industry and public bodies under an EU platform for R&I funding towards 5G advanced and 6G systems, to leverage the EU’s strength in network supply towards the broader value chain including cloud and software as well as devices and components. The SNS JU initiated 6G research in Europe through the co-funding of 63 research and innovation projects on 5G advanced and 6G networks, encompassing architectures, advanced wireless and optical communication, Non-Terrestrial Networks, and secure and reliable communications.

The White Paper also highlights the importance of submarine cable infrastructures, carrying over 99% of intercontinental data traffic, and for which a Recommendation to Member States 61 was adopted in February 2024. The recommendation seeks to foster action for accurate mapping of existing cable infrastructures to facilitate an EU-wide assessment of risks, vulnerabilities, and dependencies, in particular on high-risk suppliers. These will be mitigated by a “Cable Security Toolbox”, a common governance of cable technologies and cable-laying services, ensuring rapid and secure repair and maintenance of cables, as well as identifying and funding critical intra-EU and global Cable Projects of European Interest (CPEIs).

Connectivity - Recommended policies, measures and actions:

Completing the Digital Single market

Member States are encouraged to work with the Commission to take action to transform the electronic communications sector and allow operators to reach critical size.

Mobilising investments

Member States should take targeted measures to incentivise the take-up of enhanced fixed and mobile networks services, which is itself linked to the development and increased take-up of data intensive applications and use cases, based on e.g., edge computing, AI, and IoT, including by SMEs.

Member States should take targeted measures to promote gigabit take-up by end-users, in particular applying best practices to connect end-users including to innovative applications as well as, where appropriate, support schemes to foster take-up by end-users and ensure affordability for higher quality broadband access.

Member States should consider further public support, combined with European funds, as well as incentivise private investments, to reach market failure areas, and facilitate the development of new 5G use cases based on advanced connectivity and associated new ecosystems, such as Connected and Automated Mobility, Smart Cities, eHealth.

They should ensure sufficient access for new players to spectrum for innovative B2B and B2C applications and encourage operators to speed up the deployment of stand-alone 5G core networks. Member States could explore public private partnerships where suitable, for instance where the public capital takes the form of guarantees or junior co-investment, on market terms to help the electronic communications sector fund its transformation.

Member States should integrate a strong sustainability dimension in developing and deploying 6G, in particular aligning with the upcoming EU code of conduct and leveraging the EU taxonomy.

Fostering cooperation between Member States

Members States should implement the new submarine cable recommendation as quickly as possible to ensure a coordinated mapping and assessment of our cable infrastructures, establishing a Cable Security Toolbox of mitigating measures as well as a list of Cable Projects of European Interest.

2.1.3.2. Semiconductors

Semiconductors are the steam engine of the digital and green transformation, providing critical applications and infrastructures to smartphones and cars, healthcare, energy, communications, defence, space, and industrial automation. The semiconductor market is expected to double over this decade from its 2021 value, reaching more than USD 1 trillion by 2030. 62 This expansion encompasses areas such as chip design, wafer production, chemical provision, packaging, and capital equipment.

Semiconductors are at the centre of geostrategic interest and industrial and security strategies across the world. Our partners and competitors deploy vast public and private investments and offensive economic measures, to guarantee supply and production capacity for their economies.

The supply chains are globally interconnected but, for most segments, still highly concentrated in Asia, creating dependencies from non-EU chip designers and manufacturers, and packaging (including advanced packaging) facilities, which can result in supply shortages disrupting entire industrial sectors (e.g., automotive, industrial automation, communications).

Box: Harnessing the best Euro-high performance computing (HPC) for AI models. The rapid advancement of AI services relies heavily on the integration of specialised chips optimised for machine learning algorithms, such as general processing units (GPU). These chips enable efficient processing of vast amounts of data, powering AI applications across various sectors including healthcare, finance, and autonomous vehicles. Similarly, HPC systems, exemplified by projects like JUPITER heavily depend on cutting edge semiconductor technologies to achieve unprecedented computational capabilities, with advanced GPUs playing a pivotal role in accelerating complex simulations and data analysis tasks. JUPITER will be the first EuroHPC exascale supercomputer, located at the Forschungszentrum Jülich campus in Germany and operated by the Jülich Supercomputing Centre. It will be based on Eviden’s BullSequana XH3000 direct liquid cooled architecture, integrating NVIDIA technology into its cutting-edge semiconductor chips. This integration underscores the pivotal role of advanced chips in powering groundbreaking simulations and AI applications, marking a significant milestone in Europe's pursuit of technological leadership in HPC and generative AI.

Europe’s ambition in the Digital Decade is to double its share of global production (from 10 to 20%) and to increase its global leadership in this sector, targeting investments to produce the most advanced semiconductors (2 nanometre process). The EU can leverage its powerful research (IMEC, CEA LETI and Fraunhofer) and technological capacity (ASML, ASM, chemicals), which are state of art for the most advanced chips thanks to past strategies and investments.

The combined EU27 semiconductor value chain market share in 2022 was EUR 90 billion or 9.8% of global value chain revenues. Revenues went up substantially from the 2019 levels of EUR 57 billion, but market share fell slightly from 9.9% in 2019. The US is currently the market leader (around 40%), followed by Taiwan (15%), South Korea (13.2%), Japan (12.4) and the EU27, whose revenues are 9.8% of the global market by value according to International Data Corporation 63  estimation. By country headquarters, the total combined EU-27 value chain revenues are concentrated in the Netherlands, Germany, France, Austria, Belgium, and Luxembourg. Semiconductor manufacturing contributes 56% of total value chain revenues, with equipment at 29%.

The Digital Decade sets the target that the EU’s market share for cutting-edge semiconductors should reach 20% of global revenue by 2030. However, at this stage, cutting-edge semiconductors are still not available on the market and significant investment is planned in EU and will boost manufacturing capability in Europe in the coming years.

Between 2022 and 2023, revenues in the EU declined by 3% (from 90 to 87 billion euros), while global revenues fell by 14% (from 918 to 791 billion euros). In this challenging context, the next stage for the EU is to reinforce further the semiconductor ecosystem in Europe, from R&I to manufacturing capacity, expanding industrial presence across the supply chain. In 2024, the EU faces a significant challenge in ensuring a robust production network, necessitating massive financial input. The EU must in particular overcome weaknesses in chip design, manufacturing, and assembly and packaging, as manufacturing in the EU had fallen over time because of outsourcing to foundries outside the EU and the impact of the 2020-21 shortage.

With the EU Chips Act which entered into force on 21 September 2023 and the second Important Project of Common European Interest on Microelectronics and Communication Technologies (IPCEI ME/CT), and the Alliance on Processors and Semiconductor technologies, the EU has taken bold steps to implement its vision of EU becoming a major actor of the manufacturing of world class semiconductors. Achieving the ambitious Digital Decade goals will require a continuous concerted effort from European entities.

In their National Digital Decade Strategic Roadmaps, Member States reported a total of 47 measures contributing to this target, with a total budget of EUR 48.6 billion, which is the third highest budget reported for a target. Most of the measures focus on support for research and development and for production capacity and industrial deployment of semiconductors, including via the IPCEI on Microelectronics and Communication Technologies. Moreover, a two Member States (Poland, Slovenia) also provide national target values and trajectories for the semiconductor target or for elements contributing to it.

Semiconductors - Recommended policies, measures and actions:

Mobilising investments and fostering cooperation between MSs

Member States should stimulate secure and sustainable domestic chip design and manufacturing capabilities, including by reshoring packaging and assembly activities within the EU, increasing digital skills in advanced technologies across sectors and strengthening engagement with the European ecosystem.

Completing the Digital Single market

Member States should consider policies to leverage trusted electronics including, as necessary, standards, certification, and common requirements for secure chips, including security requirements and related performance-based specifications in public tenders (e.g., for communications networks or data infrastructures).

Member States should develop a stronger Foreign Direct Investments policy to keep intellectual property in Europe.

2.1.3.3. Edge nodes

The development of Edge nodes represents not only a paradigm shift towards a decentralised model of data storage, providing low-latency and privacy-preserving data processing. It also marks the future of digitalisation infrastructures as an essential building block for driving innovative and efficient infrastructures grounded on AI-based software, computing and telecommunications networks. This revolution is also an opportunity for the EU to safeguard the security, sovereignty, and technological independence of digital networks as critical infrastructures.

Figure 3: Edge node deployment (EU projection to 2030) 64

The Digital Decade policy programme aims to deploy at least 10 000 highly secure, climate-neutral edge nodes, distributed in a way that guarantees access to data services with low latency (i.e., a few milliseconds) wherever businesses are located. 

The total deployment of edge nodes in the EU reached 1186 estimated units in 2023, an increase from 499 units in 2022. This estimation is still insufficient to meet the total target, accounting for only 12% of the edge nodes target for 2030. Moreover, the market is far from mature with only 12% of this deployment corresponding to production, while 88% is used for testing and research purposes.

According to preliminary findings of the Edge Observatory and IDC figures 65 , Europe’s edge computing expenditure in 2023 accounted for 22% of global spending on edge computing (EUR 190 billion in 2023). The United States is expected to spend the most on edge computing, more than 40% of the worldwide total, followed by Europe and China. It is expected that Latin America and China will experience the fastest spending growth over the next five years.

The spread of edge nodes in the EU shows significant geographical disparity with front runners in France, Germany, Italy, and Spain. These member states have the potential to set trends and spread best practices, building in particular on France’s fast rate of investment in edge computing infrastructure and adoption of related technologies since the early 2020s, as well as on Spain’s procurement practices to foster environmentally friendly procurement building on the 59% of enterprises which consider the environmental impact of ICT services or equipment before selection.

Six Member States (Croatia, Greece, Italy, Ireland Poland and Slovenia) provided a trajectory for the edge nodes target in their National Digital Decade Strategic Roadmaps. A total of 19 measures contributing to this target, with a total budget of EUR 2 billion, has been reported.

Most of the measures focus on support for deploying edge nodes, including for research and/or first industrial deployment purpose Cvia the Important Project of Common European Interest (IPCEI) on Next-Generation Cloud Infrastructure and Services and support for research and development into edge nodes.

Edge Nodes - Recommended policies, measures and actions:

Mobilising investments

Member States should support the deployment of secure and sustainable edge nodes as part of their connectivity, IoT and AI strategies.

Completing the Digital Single market

Member States should ensure that the deployment of edge nodes does not create new divides within the single market.

2.1.3.4. Quantum computing

Quantum technologies will transform the EU’s industry and society fundamentally, providing for huge productivity gains and revitalising industry, enabling the performance of complex computational tasks, such as modelling biomolecular and chemical reactions, accelerating the accurate diagnosis and treatment of diseases, and protecting communication systems with extremely secure keys. Quantum technologies will be crucial for securing European sovereignty, as highlighted in the European Economic Security Strategy 66 , and the Commission Recommendation on critical technology areas for the EU's economic security for further risk assessment with Member States 67 . 

Since 2018, more than EUR 8 billion has been committed to quantum technologies by the EU and Member States, complemented with the launch of multi-country projects, individual agreements and, most recently, the European Declaration on Quantum Technologies, which is being signed by Member States.

In this context, the first milestone of the Digital Decade target - having a first computer with quantum acceleration by 2025- is expected to be reached this year. The HPC-QS project 68 is scheduled to soon deploy two systems manufactured by the French start-up PASQAL, which began as a project funded by the EUR 1 billion Quantum Technologies Flagship, in France (GENCI) and in Germany (Jülich). The continuation of the Quantum Flagship and the ongoing procurement and deployments of additional quantum computing and simulation systems overseen by the EuroHPC Joint Undertaking, as well as the further development and deployment of the European quantum communication infrastructure (EuroQCI), launched in 2019, and of advanced quantum sensing infrastructures will help the EU progress toward its 2030 target which is to have three quantum computers based on European technology.

Figure 4. Number of quantum computers in the EU. Trajectory towards 2030

The quantum ecosystem is also relatively strong in the EU, with the number of quantum technologies start-ups being the strongest in the world, when GDP weighted.

Figure 5. Quantum technologies start-ups International Benchmarking study 69

On the other hand, European public investment in quantum, although promising, has not yet been matched by the private sector: in 2021, around 25% of quantum industry participants globally were based in Europe, yet the region had received less than 5% of global funding. The European industry needs to identify and invest in quantum use cases that could transform productivity and lead to concrete improvements in everyday life.

Six Member States (Czechia, Germany, Finland, Croatia, Italy and Poland) provided a trajectory for the quantum target in their National Strategic Digital Decade Roadmaps, Furthermore, Member States reported 58 measures contributing to this target, with a total budget of EUR 3.7 billion.

Most of these measures focus on support for research and deployment in quantum computing in companies, including via the European High Performance Joint Undertaking, and on support for deploying quantum technologies. Only a very small number of measures, from Latvia and Croatia, focus on activities supporting ‘from lab to market’, i.e., commercialising new solutions and services on the market.

While progress to date is promising, more coordination and joint action are needed to reach the 2030 target, building on the December 2023 European Quantum Declaration. 70

Quantum - Recommended policies, measures and actions:

Fostering cooperation between MSs:

Member States should advance the objectives of the Quantum Declaration, namely, to collaborate with each other and with the Commission in the strategic and high-potential domain of quantum technologies, with the ultimate aim of making the EU “the quantum valley” of the world.

Member States should coordinate investment in quantum technologies across Member States and strive to address the relatively low level of Europe’s private sector investment.

2.2. Supporting EU-wide digital ecosystems and scaling up innovative enterprises

The ability of business to harness powerful digital ecosystems and embrace digitalisation is essential for EU’s prosperity and competitiveness in the long term. Digitalisation enables businesses to streamline operations, increase efficiency, and adapt quickly to changing market dynamics, while fostering leadership, agility and resilience to market disruptions.

2.2.1. Promoting the digital transformation of EU enterprises

The adoption of digital technologies by business is key to ensure a convergence of productivity between leading and laggard firms and avoid the strengthening of “winner takes all” effect as well as ensure the diffusion of productivity gains across the economy. Reaping the productivity gains of digital technologies not only requires access to secure and affordable technologies but also complementary changes in organisation of businesses, led by management and skills factors 71 .

2.2.1.1. Take up of advanced digital technologies

In 2023, the adoption of digital technologies by European companies was still well below the Digital Decade targets, in particular those for the uptake of AI and big data. Under current trends, and without further investment and incentives, the targets will not be met by 2030: the projected baseline trajectory indicates that only 64% of businesses will use cloud, 50% big data and 17% AI, far from the 75% objective set for 2030. 72  Another major concern is that European cloud providers’ market share has decreased from 27% in 2017 to 13% in Q2 2022 73 .

25 Member States provided a trajectory for the take-up of cloud computing services, big data or artificial intelligence in their National Strategic Digital Decade Roadmaps. Considering the three technologies individually, Denmark assumed a national target value above 75% for cloud computing services and AI and Sweden for cloud computing services.

Member States reported in total 164 measures contributing to the uptake of cloud computing services, big data or artificial intelligence with a total budget of EUR 10.1 billion. The measures mainly focus on three areas: (i) strengthening ecosystems, information sharing and knowledge exchange on the uptake of cloud/AI/big data; (ii) enabling framework conditions for the uptake of these 3 technologies, including access to training and financial support (for example via funding programmes), (iii) support for developing AI/cloud/big data capabilities, including via R&D for advanced technologies. Measures to promote the roll-out and establishment of viable industrial solutions in the market are significantly less numerous – only Belgium, Denmark, Greece, Romania, Sweden and Slovakia reported relevant measures in their roadmaps.

Take up of cloud services

In 2023 the estimated economic value of European cloud data flows is estimated to be EUR 107 billion, of which EUR 77 billion was in the EU (estimated to increase to EUR 328 billion by 2035). The 2023 European total economic value of cloud data flows is thus greater than each of the respective GDPs of Bulgaria, Croatia, Estonia, Latvia, and Lithuania.

In 2023, despite the European cloud computing market expected to be worth EUR 560 billion, 74  cloud uptake among enterprises in the EU was just above one in three (38.9%) with large differences between Member States, company size and cloud service types. This represents an increase of 4.9 percentage points from the last measurement in 2021, corresponding to an annual progress of almost 7%. This remains below the progress of over 9% each year until the end of the decade that would be necessary to meet the target.

Figure 6. Percentage of enterprises using cloud services in the EU. Historical data, Digital Decade (DD) trajectory and 2024 baseline trajectory towards 2030

The EU needs to accelerate the uptake of cloud services, while ensuring respect of European core values and interests. Dissemination and exploitation efforts and strategies, jointly developed by both public and private actors, need to strongly boost the use of new advanced cloud solutions, such as the ones expected to be developed under the IPCEI-CIS, in particular among SME ecosystems. The Cloud IPCEI Exploitation Office should play a key role in this dissemination in addition to the spillovers and dissemination commitments undertaken by the direct participants in the IPCEI CIS.

In recent years, significant public intervention targeted the European Cloud market's supply side, aiming to foster diversification by promoting the development and deployment of interoperable and trusted cloud-to-edge business offerings tailored to European users' requirements. This was done via investments (for example as part of the IPCEI-CIS or under the DIGITAL programme, which covers the procurement of the smart middleware Simpl), the switching provisions in the Data Act designed to eliminate vendor lock-in practices, and through other initiatives like the European Alliance for Industrial Data, Edge and Cloud.

While this intervention has initiated a move towards a more diverse European cloud market, substantial obstacles remain such as unfair market practices including tying and bundling, unfair contractual relationships limiting customers' negotiation power 75 , and telemetry practices where providers leverage their customers' metadata to gain competitive advantages.

Take up of artificial intelligence

The take up of AI is certainly the most pressing and crucial element of the business digitalisation in the EU. The adoption of this technology has marked the least progress in 2023. No improvement is perceptible compared to 2021. From 2021 to 2023, the percentage of enterprises using AI saw little change, increasing slightly from 7.6% in 2021 to 8% in 2023. Based on the current rate of progress, the adoption of AI risks to remain below 17% in 2030.

Figure 7. Percentage of enterprises using AI in the EU. Historical data, Digital Decade (DD) trajectory and 2024 baseline trajectory towards 2030

The EU currently lags behind international competitors when it comes to the adoption of emerging technologies, which include AI. Venture capital investment in AI is also low compared to the US and China.

Figure 8. AI venture capital investments International Benchmarking study

2023 was a disappointing year for Europe's venture capital market, including for AI start-ups. 76 Venture capital investment in European start-ups reached EUR 51.7 billion in 2023 but this represented a drop of 45.6% compared to 2022. 77 EU enterprises also continue to experience difficulties to scale up, due to remaining obstacles to the EU’s Single Market.

While some encouraging signs exist, such as a high number of enterprises in the EU experimenting with AI, and the high and growing number of start-ups working with generative AI, vigorous action is needed to ensure better progress towards this target.

The EU can build on actions such as the recently adopted AI innovation package of 24 January 2024, which will facilitate the creation of AI factories, built around European public supercomputers, bringing together AI-dedicated supercomputers, associated data centres connected via high-speed networks and the corresponding human capital.

The European Digital Infrastructure Consortia (EDICs), fostering cooperation between Member States, are also laying down a new foundation for AI development. The first two EDICs created by Commission’s decision in February 2024 concentrate on AI. One of them is the Alliance for Language Technologies European Digital Infrastructure Consortium (ALT-EDIC) which will provide centralised access to language data for the development of European generative AI ‘Large Language Models’, offering valuable tools to aggregate the required data in particular for Member States with limited language visibility. A third EDIC, Networked Local Digital Twins towards the CitiVERSE (LDT CitiVERSE EDIC), will implement a digital ecosystem around shared infrastructure components and state-of-the-art technologies for data, AI-based services and related elements for cloud-based Smart Communities.

Take up of big data/use of data analytics

Data is the fuel for training and improving artificial intelligence (AI) algorithms and it is an essential driver for innovation in AI. In 2023, only 33.2% of European companies have used data analytics, with large discrepancies between Member States. If progress does not accelerate, it is estimated that take up will reach just over 50% by 2030, a full 25 percentage points below the 2030 target.

Figure 9. Share of enterprises using Data analytics in the EU. Historical data, Digital Decade (DD) trajectory and 2024 baseline trajectory towards 2030

More broadly, the latest figures 78 indicate that the EU data economy increased in 2023 to EUR 544.1 billion, against EUR 497.8 billion in 2022, representing 4.2 % of EU’s GDP. In a baseline scenario, the value of the EU data economy will increase to EUR 851.5 billion by 2030 representing 5.8 % of the overall EU GDP.

The EU data economy employed around 7.66 million data professionals in 2023, accounting for 4.3 % of total employment. Under the same baseline scenario, it is estimated that by 2030 the number of data professionals will increase to 9.9 million, with a compound average growth rate of 3.5 % in 2025-30 period.

The challenge for the years to come will be to swiftly implement all aspects of the European data strategy, starting with applying the provisions of the Data Governance Act 79 and Data Act 80 , to create legal certainty and ensure a secure and fair legal framework for the data economy. Stakeholders will also need to focus on the concrete deployment and interconnection of the common European data spaces, leading to an internal data market with more data availability and more data-driven innovation and policies.

Take up of Cloud-AI-Big Data - Recommended policies, measures and actions:

Mobilising investments 

Member States should take policy measures and earmark resources to support the adoption of trustworthy and sovereign AI-enabled solutions by European companies, step up public investment in general purpose/generative AI based and incentivise private investments.

Member States should stimulate national efforts for cloud adoption through cloud-targeted investment and exploitation strategies for advanced cloud solutions among businesses (in particular SMEs) as well as by developing dedicated skilling programmes, including on cloud security and environmental performance.

Member States should foster consistency and synergies when leveraging the Recovery and Resilience Fund for investing in business cloudification.

Disseminating digital technologies

Member States should foster the availability of legal and technical support to procure and implement trustworthy and sovereign AI solutions across sectors.

Member States should ensure that the effort towards greater business cloud uptake is jointly approached by all governmental and business actors.

Member States should boost the uptake of new advanced cloud-edge solutions among SMEs by setting up strategies and activities to fully exploit the IPCEI-CIS, by leveraging the complementarity activities of the Exploitation Office and the spillover commitments already undertaken by the direct participants in this IPCEI CIS. The Member States that do not participate in this IPCEI should actively seek out ways of engagement to benefit from spillovers, liaise with and possibly establish, post approval decisions, collaborations with its interested direct participants or indirect partners.

Completing the Digital Single market and fostering cooperation between Member States:

Member States should continue to foster secure and trusted data sharing, in particular by supporting the deployment of common European data spaces and by implementing relevant data legislation such as the Data Governance Act and the Data Act. In this context, Member States should also take full advantage of relevant newly created EDICs (ALT-EDIC and LDT CitiVERSE EDIC), as well as speed up the creation of other relevant EDICs in preparation (e.g., Mobility and Logistics Data EDIC, the EDIC for Digital Commons).

2.2.1.2. Fostering the digitalisation of SMEs

Progress toward the digitalisation of SMEs in 2023 is still insufficient and quite uneven across the EU. Between 2021 and 2023, the only two comparable years so far, the percentage of enterprises with at least basic levels of digital intensity slightly increased to 57.7% from 54.8% in 2021. This corresponds to a modest annual advancement of 2.6%, which is less than half the pace of growth required to reach the 2030 target 81 . Under a business-as-usual scenario, only 68% of SMEs will be digitalised by 2030, showing that further efforts are needed. It is also at a lower rate than in the US 82 .

Figure 10. Digital Intensity Index Historical comparable data, Digital Decade (DD) trajectory and 2024 baseline trajectory towards 2030

This percentage varies greatly among Member States, with more than 75% of SMEs having already reached this level in Finland, Sweden, Netherlands, Malta and Denmark, while less than a third in Bulgaria and Romania.

Over the coming period, the European Digital Innovation Hubs (EDIHs) will play a key role in bringing the various European digital initiatives to the actors on the ground, supporting their implementation at local level, while also accompanying businesses in their digitalisation efforts.

25 Member States set in their National Strategic Digital Decade Roadmaps, a national value and a trajectory for the percentage of SMEs having reached a basic level of digital intensity. The majority of these national target values are in line with the EU target. Six Member States set a target value below the EU target and four Member States (Germany, the Netherlands, Sweden and Denmark) went above the EU target value.

A total of 126 measures have been reported that contribute to this target, with a total budget of EUR 16 billion. Most focus on support for the uptake and deployment of digital technologies in companies, in particular SMEs, including on providing training to use digital technologies as well as financial support, for example via funding programmes. Other measures focus on strengthening the ecosystem, information sharing and knowledge exchange about digital technologies, including via EDIH. Only a very small number of measures focus on commercialising new solutions and services on the market (e.g. Bulgaria, Portugal).

Digitalisation of SMEs - Recommended policies, measures and actions:

Fostering cooperation between Member States

Member States should strengthen their policies and incentives for accelerating SME’s digitalisation, in particular with specific strategies, sharing of best practices and leveraging common projects.

Member States should increase linkages between EDIHs and other networks (e.g., local and national digitalisation frameworks, Testing and Experimentation Facilities, National/European Cybersecurity Competence Centres and High-Performance Computing centres) and communities. The goal is to ensure a cohesive ecosystem that offers comprehensive digital transformation services across various technologies and sectors.

Member States are in particular encouraged to prioritise the integration and adoption of AI within the EDIH framework. This includes providing specialised AI services, facilitating access to, for example, AI Testing and Experimentations Facilities and the AI on demand platform.

Mobilising investments:

Moreover, Member States are encouraged to address the critical challenge of financing by establishing EDIHs as primary gateways for businesses to access public procurement opportunities in digital services and goods, and venture capital, facilitate connections with financial intermediaries and leverage EU support.

Disseminating digital technologies:

Member States should intensify their activities to foster dissemination of the use of digital tools by SMEs, in particular with local actors (business organisation, cities, universities, etc.)

2.2.2. Scaling up innovative enterprises

The startup and unicorn ecosystem plays a pivotal role in increasing the EU’s competitiveness. These ventures promote economic growth by introducing disruptive technologies, creating new job opportunities, promoting innovation, and attracting investment. They embody agility, creativity, and adaptability, driving traditional industries to evolve and remain relevant in a rapidly changing market landscape. Furthermore, startups serve as a breeding ground for entrepreneurship, nurturing a culture of risk-taking and innovation essential for long-term economic sustainability.

In recent years, the European ecosystem has been quite successful in increasing the number of unicorns, demonstrating that Europe can develop its own model of startup-ecosystem across the continent, supported by the Digital Decade commitment to at least doubling the number of unicorns compared to the 2022 baseline.

Yet, the EU is currently home only to approximately 13% of the world’s unicorns. At the end of 2023 there were 263 unicorns in the EU, which was a 5.6% increase compared to 2022 (249 unicorns at the end of 2022). In both percentage and absolute terms this is a significant reduction in the annual growth of the number of EU unicorns compared to 2020 (~30% increase) and 2021 (~62%). Fewer unicorns were created in the EU in 2023 than any year since 2017, against the background of a global contraction in private capital markets throughout 2023.

Figure 11. Unicorns International Benchmarking study

AU: Australia, CN: China, IL: Israel, JP: Japan, KR: Republic of Korea, UK: United Kingdom, US: United States of America, EU: European Union

The difference in absolute numbers of EU headquartered unicorns compared to other key countries remains stark, with 263 unicorns in the EU 83 , 387 in China, and 1,539 in the USA by the end of 2023. This underlines the need for focused action at both EU and national level, to ensure not only that the 2030 Digital Decade target of 500 unicorns in the EU is met, but also to sustain growth and match the performance of other parts of the world.

Figure 12. Number of unicorns in the EU. Historical data and 2024 baseline trajectory

15 Member States provided a trajectory for the unicorns and innovative scale-ups target in their National Digital Decade Strategic Roadmap. Member States reported in total 100 measures that contribute to this target with a total budget of EUR 26.4 billion.

Most of the measures focus on access to finance, including new funding opportunities adapted to the different unicorns/scale-up life cycles. Other aspects that are covered include fostering technology transfer, incubation, spin offs, spin outs and start-up ecosystems. and supporting framework conditions and regulation for start-ups, including relevant strategies and a framework for promoting innovation activities.

Progress toward achieving the Digital Decade is still facing many challenges. Worsening external finance conditions will hit young and innovative companies hard, especially those introducing new market innovations. These firms depend heavily on external funding, making them vulnerable to any tightening of finance accessibility. This dependence, coupled with their exposure to investor risk aversion, heightens uncertainty about their financial stability. It is therefore essential to ensure supportive finance conditions to foster innovation and sustain the growth of these emerging enterprises.

Moreover, a relative lack of private capital for ‘big ticket’ investments forces too many EU startups to seek late-stage growth capital from venture capital funds outside of Europe 84 , with the consequence of often moving their corporate headquarters outside of the EU. The lack of take-up of established best policy practices across Member States leads to fewer opportunities for startups to attract and retain talent, access finance or have their innovations procured in public procurement.

The challenging picture for delivering conditions that are conducive to unicorn creation is completed by the suboptimal linkages between EU and national research programmes and programmes (which are critical to support the emergence of national champions from EU-funded innovation programmes), and the insufficient support to stimulate the creation of more spin offs from universities.

Unicorns - Recommended policies, measures and actions:

Member States should mobilise public policies – especially in the area of tech transfer and the use of the public procurement budget to procure innovations from startups – to foster the scaling up of start-ups and facilitate the creation of spinoffs from universities and research centres. Progress in these areas should be monitored.

Member States should introduce or improve policy initiatives that aim to increase the amount and diversity of private capital (for example from national pension funds) available for co-investing in high-growth startups.

2.3. Strengthening cybersecurity

The Digital Decade objectives 85 include improving resilience to cyberattacks, contributing to increasing risk-awareness and increasing knowledge of cybersecurity processes, as well as increasing efforts by public and private organisations to achieve at least basic levels of cybersecurity. The Digital Decade Decision provides the possibility to develop specific targets as part of its review planned in 2026 86 .

Furthermore, in the Declaration on Digital Rights and Principles, the EU and its Member States committed to take further measures to promote traceable and safe products on the digital single market, and to protect people, businesses, and public institutions against cybersecurity risks and cybercrime, including via cybersecurity requirements for connected products placed on the single market 87 . 

In 2023, EU’s cyber threat landscape has continued to be strongly impacted by geopolitical events 88 , with operations continuing to target the EU actors, particularly government, military, critical infrastructure, and foreign affairs bodies. Threats include ransomware, supply chain and physical attacks, and sabotage of digital infrastructure.

Cyberattacks and extorsion operations were on the rise in 2023 89 . Ransomware groups are not only targeting corporations but also government agencies and critical infrastructures, with geopolitical motivations. The EU Agency for Cybersecurity ENISA itself recorded more than 2,500 cyber incidents from July 2022 to June 2023, with 220 specifically targeting two or more EU countries. Public administrations and health were the top targets at 19% and 8%, while 6% of all hacks targeted the manufacturing, transport and financial sectors.

In April 2023, the Commission has proposed the Cyber Solidarity Act, aiming to strengthen the solidarity at the EU level to better detect, prepare and respond to cybersecurity threats and incidents. The network of National and Cross-border Hubs would serve to increase detection of cybersecurity threats and incidents. The Cybersecurity Emergency Mechanism would enhance preparedness by setting up coordinated preparedness testing and other preparedness actions for important and essential entities. This Mechanism would also include an EU Cybersecurity Reserve consisting of services from a selected pool of trusted private companies providing managed security services, such as incident analysis or incident response coordination.

Four years on, more efforts still need to be made by some Member States to implement the EU 5G Security Toolbox and effectively mitigate the risks, posed in particular by high-risk suppliers. In 2023, the Commission also underlined its strong concerns about the risks to the EU security posed by certain 5G suppliers 90 and is working to ensure security and avoid the exposure of its own corporate communications to high-risk suppliers and to reflect its assessment in all relevant EU funding programmes and instruments.

At the beginning of 2024, the Commission adopted the first-ever European cybersecurity certification scheme 91 , in line with the EU Cybersecurity Act. The scheme offers an EU-wide set of rules and procedures on how to certify ICT products in their lifetime and thus make them more trustworthy for users. This major step promotes Europe's global digital leadership.

On 30 November 2023 the European Parliament and the Council have reached a political agreement on the Cyber Resilience Act (CRA) 92 , which was adopted by the European Parliament on 12 March 2024 and will enter into force in the course of 2024. The CRA makes the selling of hardware and software products on the European market contingent on compliance with cybersecurity requirements. It is the first regulation of its kind not only in Europe but also internationally. 

The law introduces security by design obligations for manufacturers of hardware and software products. Acknowledging that manufacturers along the entire supply chain are responsible for security outcomes, it not only covers the final product, such as a laptop or an operating system, but also its hardware and software components. During the transition period of 3 years from the act’s entry into force, the European Standardisation Organisations will be tasked with developing standards to facilitate compliance by manufacturers, and the Commission will adopt relevant delegated and implementing acts as well as guidance to ensure that manufacturers can easily comply with the act.

The NIS2 Directive 93 requires Member States to adopt national cybersecurity strategies which must contain policies that directly contribute to meeting the general objective on cybersecurity set out in the Digital Decade, such as policies on promoting active cyber protection and on promoting and developing education and training on cybersecurity, cybersecurity skills, awareness raising and research and development initiatives, as well as guidance on good cyber hygiene practices and controls, aimed at citizens, stakeholders, and entities.

Cybersecurity measures are not well reflected in the National Digital Decade Strategic Roadmaps. Some Member States however do include cybersecurity specific measures in their roadmaps. Such measures include cybersecurity-related strategies and action plans, in particular in the areas of awareness raising, cybersecurity skills training and protection of critical infrastructures.

Objective Cybersecurity - Recommended policies, measures and actions:

Mobilising investments

Member States should continue their efforts to take specific measures to address the cybersecurity skills gap.

Completing the Digital Single Market

Member States that have not yet implemented the EU toolbox for 5G Cybersecurity should urgently adopt relevant measures to quickly and effectively address cybersecurity risks.

3. Protecting and empowering EU people and society

Eurobarometer 2024: 3 out of 4 respondents consider their daily use of digital technologies would improve significantly with more education and training to develop their skills for using digital services. Meanwhile, 4 out of 5 Europeans consider important that the public authorities shape the development of Artificial Intelligence and other digital technologies to ensure they respect our rights and values, and 3 out of 4 respondents consider that by 2030, digital technologies will be important for engaging in democratic life. 

Putting people at the centre of the digital transformation of our societies and economies is at the core of the Digital Decade. This is reflected in the European Declaration on Digital Rights and Principles and in the general objectives and targets of the Digital Decade Decision, focused on building a human centred digital space, safeguarding fundamental rights and addressing digital divides, promoting digital skills, empowering democratic life, and protecting vulnerable people, including children. The following sections monitor progress in relation to these objectives and targets which include basic digital skills, ICT specialists, eGovernment services, e-ID and e-Health.

3.1. Empower people and bring the digital transformation closer to their needs

Eurobarometer 2024 - 3 out of 4 Europeans consider that the digitalisation of daily public and private services is making their lives easier.

- For 9 out of 10 Europeans, it is important that public authorities ensure people receive proper human support to accompany the transformation brought by digital technologies and services in their lives.

In a context where digital tools are now pervasive in every aspect of our daily lives, Europeans should be able to acquire all basic and advanced digital skills and have the possibility to adjust to changes brought by the digitalisation of work through up-skilling and re-skilling, in particular in line with the Declaration on Digital Rights and Principles 94 . It is equally essential to provide people with trusted tools, like secure e-ID means, to ensure that digital technologies and online public services, including health services, are accessible to everyone across the EU, including those with disabilities 95 .

3.1.1. Equip people with digital skills

A digitally skilled population: at least basic digital skills

A key target of the Digital Decade is to ensure that at least 80% of individuals aged 16-74 possess at least basic digital skills by 2030. In 2023, slightly more than 55.6% of those individuals reported having at least basic digital skills, with variations across Member States from 82.7% to about 27.7%. Compared to 2021, the EU average level of at least basic digital skills in 2023 increased by only 1.7 percentage point, a pace of progress that is insufficient to reach the 2030 target. Compared to the ideal trajectory required to reach the 80% target, the EU is 4.2 percentage points below the 2023 ideal value needed to be on track. Without further action, only 59.8% of the population would have at least basic digital skills by 2030 as estimated along the baseline trajectory.

Figure 13. At least basic digital skills in the EU. Historical data, Digital Decade (DD) trajectory and 2024 trajectory towards 2030

Shortcomings in digital skills do not only concern older population. A notable portion (30%) of the younger generation aged 16-24 years lacks at least basic digital skills. While the gender gap in basic digital skills continues to narrow (55% of females versus 57% of males), there are considerable differences linked with the level of education (80% of individuals with high formal education, versus 34% of those with no or low formal education) and a clear urban-rural divide (63% of people living in cities versus 48% of people in rural areas).

During its current mandate, the European Commission has made substantial efforts to advance digital skills in the European Pillar of Social Rights Action Plan and the Digital Education Action Plan 2021-2027, advocating for EU-level support to strengthen education and training systems, in particular through the Structured Dialogue on digital education and skills. 2023 marked the European Year of Skills, which reinforced the importance of acquiring essential skills, including digital skills, to secure quality employment and address workforce shortages. In 2023, another important achievement was the adoption of a digital education and skills package, including two proposals for Council Recommendations: one on the key enabling factors for successful digital education and training; another on improving the provision of digital skills and competences in education and training. In addition, through the unanimous adoption of the Council Recommendation for Roma equality, inclusion and participation, Member States committed to develop measures to support the acquisition of digital skills by Roma people 96 . Finally, the Commission has mobilised various funding programmes to boost digital skills across Europe, such as the European Social Fund Plus 97 , Digital Europe Programme (DEP) and Erasmus+ 98 .

Digital skills are prominent in National Digital Decade Strategic Roadmaps. 26 Member States provided a trajectory for the target on basic digital skills that, in most cases, is in line with the EU target value of 80%. Three Member States (Spain, Finland and the Netherlands) assumed a target value above the EU target value. Bulgaria is the only Member State explicitly referring to achieving gender balance for this target. Member States have reported a total of 292 measures that contribute to this target, with a total budget of EUR 24.8 billion. They cover a number of aspects, from digital skills in formal education and upskilling and reskilling programmes for people currently in employment, to actions addressed at vulnerable groups. A very small number of the measures are explicitly focused on improving the gender balance by increasing basic and intermediate digital skills of girls and women (in particular in Portugal, Italy, Cyprus and Austria).

The monitoring of the Declaration on Digital Rights and Principles shows that Member States are quite active in taking measures to provide digital education, training and skills to their citizens 99 .

Nevertheless, increased, and focused efforts by the European institutions as well as the Member States are necessary to facilitate the acquisition of digital skills. In the context of an ageing population and an increasingly technology-driven society, there is a crucial need to follow a multi-faceted approach targeting digital skills in primary, secondary and higher education, Vocational Education and Training and lifelong learning, as well as focusing on priority or ‘hard-to-reach’ groups. Moreover, the current economic landscape and challenges for Europe’s competitiveness call for a more coherent and strategic framework of investment, governance, and capacity-building for effective and inclusive digital skills and talent development. This requires a swift adaptation of EU education and training systems to the digital age, to ensure they can play a key role in improving the provision of digital skills at all levels and in a lifelong learning perspective, thus contributing to increase Europe’s growth and competitiveness 100 .

Basic skills - Recommended policies, measures and actions:

Mobilising investments:

Member States should prioritise investment in digital education and skills in line with the Council Recommendation on improving the provision of digital skills and competences in education and training, including targeted policies for groups most in need including vulnerable groups, the older population, people with little or no formal education, people living in rural areas and people with disabilities.

A highly skilled digital workforce: ICT specialists and advanced digital skills

In an era characterised by rapid technological advancements, the shortage of ICT specialists is a systemic issue that is essential for reaching all Digital Decade objectives and targets. It is therefore vital to build up a sufficient talent pool of highly skilled professionals in those key capacity areas. The EU’s ambitious Digital Decade target aim to employ at least 20 million ICT experts in the EU by 2030, with more graduates and gender convergence in the sector.

Figure 14: ICT specialists in employment in the EU. Historical data, Digital Decade (DD) trajectory and 2024 trajectory towards 2030


Over the past ten years, significant advancements have been made in the supply of ICT specialists. In 2023, nearly 9.8 million ICT specialists were contributing to the EU's employment representing an annual increase of 4% compared to 2022. However, in 2023, the EU is 0.9 million specialists below the value that would be needed to be on track towards the 2030 target, as estimated along the baseline trajectory. According to the current trend, the number of ICT specialists in the EU will be around 12 million in 2030 if no further intervention is put in place. The gender gap is still substantial and persisting. In 2023, just 19.4% of ICT specialists employed in the EU were women, also undermining how digital solutions are designed and deployed, with proven negative consequences for social equality and welfare overall. To reach the digital decade targets, the EU is also increasingly reliant on attracting foreign talent. In 2023, 11% of ICT specialists employed in the EU came from third countries, compared to 8% in 2019 101 .

European companies already face increased competition for digitally skilled talent, with more than 60% of EU enterprises that recruited or tried to recruit ICT specialists reporting difficulties in doing so in 2022 102 and significant advanced digital skills gaps in more traditional non-ICT professions 103 .

These issues are projected to increase and be exacerbated by the global race for digital talents. For example, the demand for professionals working in AI development and deployment has increased by 33% from 2019 to 2022 in selected OECD countries 104 . Estimates suggest that, to meet future industry demand of AI skills alone, between 0.5 and 2.8 million Europeans will need to acquire these skills over the next five years, while approximately 1.2 to 3.7 million individuals will be required to gain proficiency in cloud computing skills 105 .

There are many and complex drivers behind these shortcomings, including the low number of young people entering science, technology, engineering and mathematics (STEM) or ICT studies, with only 4.2% of all graduates in the EU pursuing degrees in ICT 106 : a shortage of specialised training programmes, misalignment with industry needs and the lack of flexibility of existing learning pathways. Furthermore, the challenges in attracting and keeping women in tech impede the needed increase of EU’s workforce in ICT. More diverse teams lead to better decision-making and more innovative products and services, positively impacting the usability of technology for diverse users, including women.

One cornerstone of the Commission’s strategy was the adoption of the Council Recommendation on improving the provision of digital skills and competences in education and training 107 . Advanced digital skills are also supported by multiple funding programmes, notably the DEP, which includes the development of specialised educational programmes at different academic levels 108 as well as short-term training courses in diverse key digital areas. Member States are also building the Cybersecurity Skills Academy, one of the European Digital Infrastructure Consortia in preparation.

The Commission has recently also taken a set of mutually reinforcing actions to make the EU more attractive to third-country talent as well as to boost intra-EU mobility 109 . The Commission is, in particular, proposing to set up an EU Talent Pool to facilitate the strategic international recruitment of non-EU jobseekers in shortage occupations 110 . It is also revising the EU Blue Card Directive 111  which, among other things, has introduced equivalence as regards skills attested by professional experience and comparable higher education qualifications in some ICT jobs. Finally, through the Talent Partnerships with key partner countries, the EU is supporting mobility schemes, capacity building and investments in human capital.

In their National Digital Decade Strategic Roadmaps, 24 Member States have outlined trajectories for ICT specialists, with around half aligning with or, in the case of Ireland and Sweden, surpassing the EU goal 112 . Moreover, several Member States indicate that they aim to increase the share of female ICT specialists and Portugal, Sweden and Slovakia even establish national targets for this. These endeavours are supported by a total of 178 measures, amounting to a budget of EUR 9.5 billion and covering several aspects of skills development: from advanced digital skills in formal and higher education, to measures supporting the upskilling of the workforce and other support initiatives, emphasising for instance gender balance or the retention and attraction of ICT specialists globally.

Despite these actions, it will be challenging to reach the 2030 Digital Decade targets on ICT specialists under a business-as-usual scenario. Urgent action is imperative through a comprehensive and coordinated approach spanning the entire education and training continuum, including lifelong learning and leveraging collaborative efforts among stakeholders.

ICT specialists - Recommended policies, measures and actions:

Mobilising investments:

Member States should swiftly develop initiatives, strengthen their policy and prioritise action in line with the specific recommendations for addressing the shortage of ICT professionals in the Council Recommendation on improving the provision of digital skills and competences in education and training. They should in particular support early exposure of young people, particularly girls, to STEM, promote VET and lifelong learning in the domain of ICT, increase the academic offer in advanced digital skills, facilitate collaboration among higher education institutions, boost industry integration and foster diversity and inclusion, particularly of women.

3.1.2. Trusted solutions for digital interaction: the EU Digital Identity and the digital euro

With digital transactions and interactions becoming essential in daily lives, EU citizens need more and more easy-to-use, reliable, and safe means for online identification, authentication, for storing and sharing digital attestations, and using electronic signatures. The EU Digital Identity regulation, entered into force in May 2024, answers to this need and represents a game changer in both simplifying the life of citizens and businesses, and protecting fundamental rights online, ensuring safety and privacy, giving citizens full control over the data they share, and avoiding profiling, tracing and tracking, in line with EU digital rights and principles.

The swift implementation of the EU Digital Identity Wallets (EDIW) by 2026 is also the condition for the achievement of the Digital Decade target: by 2030 100% of Union citizens should have access to a secure electronic identification (e-ID) means recognised throughout the Union, giving users full control over identity transactions and shared personal data.

Currently, notified e-IDs are available in 22 Member States (plus Norway and Lichtenstein), being available to 93% of the EU population. However, the take-up of e-IDs is very uneven across Member States. In 2023, 35.7% of individuals in the EU used an e-ID to access services provided by public authorities or public services of their country, from 95% in the Netherlands to less than 1% in Cyprus 113 . The implementation of the EDIW is expected to promote uptake, with a single tool for accessing public and private digital services.

Since April 2023, the DEP finances 4 large-scale pilot projects to test use cases such as: storing and sharing education credentials, travel documents, like boarding passes, or digital driving licences; accessing digital public services (including cross-border); opening a bank account, accessing it and authorising payments; buying a pre-paid SIM card; signing contracts; and proving professional affiliations. The wide participation by almost all Member States reflects the recommendations of the 2023 State of the Digital Decade report, which invited Member State ‘to prepare to set and implement the EUDIW, in particular through pilot projects and by mobilising the digital ecosystem’.

Finally, the Task Force on Age Verification, set up under the Digital Services Act with Member States, the European Regulators Group for Audiovisual Media Services (ERGA) and European Data Protection Board (EDPB), is currently exploring how to make best use of the Wallet for age verification purposes, as a key response to concerns linked to children’s exposure to harmful content (cf. below). Age verification supported by the Wallet is also one of the priority use cases in the call for proposals for new pilot projects that are expected to start in 2025.

As the use of banknotes and coins declines, the European Central Bank plans to introduce a digital euro by 2027. The European Parliament and Council are currently examining the legislative framework proposed by the Commission in June 2023 to establish the digital euro and to regulate its essential elements. Once this legislative process is complete, the European Central Bank will decide on its issuance. This pan-European public payment scheme would provide central bank money in digital form, allowing citizens and businesses to make secure, private, and widely accepted payments across the entire euro area. The digital euro, as a public good, aims to ensure our monetary system keeps pace with digitalisation while remaining inclusive. It would establish a new European infrastructure, enabling market players to innovate and develop value-added services. The goal is for the digital euro to be fully interoperable with the European Digital Identity Wallets, supporting various use cases from e-commerce to in-store and peer-to-peer transactions, even without internet connectivity.

Member States’s National Digital Decade Strategy Roadmaps do not provide a strong focus on the e-ID and Digital Wallets target. Member States reported in total 60 measures contributing to this target, with a total budget of EUR 0.9 billion. Those measures generally concern the deployment of Electronic Identification and Trust Services, including certification processes and regulation, and the implementation of the EDIW, for instance through proof-of-concepts and pilot projects.

EU Digital Identity - Recommended policies, measures and actions:

Mobilising investments:

Member States should give priority to the development of concrete use cases to support users and private and public service providers in the use of the EU digital identity wallet and trust services based on the European Digital Identity Framework.

3.1.3. Efficient digital public services user-friendly and accessible to all

Member States are continuing to progress towards the target of making 100% of key public services for citizens and businesses accessible online. In 2023, the average EU score was 79 out of 100 as regards availability of digital public services for citizens (from 77/100 in 2022) and 85 out of 100 as regards businesses (from 84 in 2022). Both values remain below the 2023 value required to be on track towards the 2030 target (7.8 points below for citizens and 5,4 below for businesses). Despite the number of measures taken in Member States to make digital public services accessible to all Europeans 114 , in a business-as-usual scenario, the achievement of the EU target by 2030 remains challenging.

Figure 15: Online service provision for citizens (top chart) and businesses (bottom chart). Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030

(a)Share of administrative steps that can be done online for major life events for citizens nationals and foreigners (0 = no steps can be done online; 100 = the whole process can be done online). Historical data, Digital Decade and baseline trajectory

(b)Share of public services needed to start a business and conduct regular business operations that are available online for national as well as for foreign users (0 = no steps can be done online; 100 = the whole process can be done online). Historical data, Digital Decade and baseline trajectory

Substantial gaps remain in the delivery of digital public services which are fully user-centric, accessible to users with disabilities 115 , and sovereign– in a context where most digital services, e.g., cloud, are developed by non-EU companies.

Digital public services have been one of the main areas of investment in the Recovery and Resilience Facility with EUR 24.5 billion directly contributing to these targets 116 .

On the legislative side, the implementation of the Single Digital Gateway Regulation 117  has contributed to reduce the administrative burden for the EU citizens and businesses with the single digital gateway user interface, the Your Europe portal giving access to a wide range of online information and public services. Furthermore, the recent launch of the Once Only Technical System (OOTS) will allow connecting administrations across the member state and the cross-border exchange of public documents and data. Both the single digital gateway and the OOTS make it easier for citizens and to study, move, work, retire and for companies, notably SMEs, to do business across the EU.

In April 2024, the Interoperable Europe Act 118 entered into force and, with mandatory interoperability assessments, will boost the availability of user-centric and cross-border key digital public services. The Data Act will mitigate concerns related to the dependency of public administrations on technological solutions provided by foreign vendors like hyperscale cloud providers. Steps forward have also been taken on digital accessibility, a fundamental right for people with disabilities, which saw a significant shift following the adoption of the Web Accessibility Directive in 2016.

Finally, Member States strengthened their collaboration across the EU, developing common infrastructure and leveraging advanced technologies for cross-border services. The EDIC in the field of connected public administration (IMPACTS) is under preparation, and the European Blockchain Partnership and European Blockchain Services Infrastructure (EUROPEUM) has been established.

In their National Digital Decade Strategic Roadmaps, 21 Member States provided a trajectory for digital public services for citizens and businesses. 21 national target values are in line with the EU target value, which is 100% of key public services accessible online. Member States reported in total 238 measures contributing to this target, with a total budget of EUR 14 billion. These measures cover different domains: from increasing trust and satisfaction of the public on electronic services, to measures to support interoperability.

Reducing administrative burden has been a key priority of the European Commission 119  especially as regards SMEs. Embracing digital transformation and leveraging innovative technologies for efficient public services can unlock significant time and cost savings while improving the overall effectiveness and responsiveness of public policies.

Digitalisation indeed has the potential to significantly streamline bureaucratic processes and cut through red tape in Europe with electronic documentation and signatures, online government services, data sharing and integration, automated data verification systems, automated compliance and reporting and digital identity.

Digitalisation can have even more profound impacts by enabling a significant shift in regulatory approach cutting red tape and allowing more innovation, such as the use of regulatory sandboxes, as implemented in in the financial industry. By creating a safe space for experimentation, regulators can collaborate with stakeholders including innovative enterprises, to understand emerging technologies, assess potential risks, and develop appropriate regulatory frameworks that balance innovation with consumer protection and systemic stability. The potential for regulatory shift could be explored in areas such as healthcare, financial services, mobility or agriculture, with a view to providing not only a more agile framework but also to improve data-based and AI powered-high quality information for users and beneficiaries. Digitalisation has thus the potential to foster a regulatory shift as well as to radically simplify regulatory compliance while providing for new services, for example in the area of precision agriculture, traceability and farm management essential for the farmer’s competitivity and to foster their positive footprint on the environment. In this respect a European Digital Infrastructure Consortium for AgriFood is also under consideration among Member States.

e-Government services - Recommended policies, measures and actions:

Mobilising investments and completing the Digital Single market:

Member States should focus investment and regulatory measures to develop and make available secure, sovereign and interoperable digital solutions for online public and government services, including possibly in the context of public procurements.

Disseminating digital technologies:

Member States should monitor the effective use of online public services by national and, possibly, by cross-border users as well as possible gaps, including between urban and rural areas.

Member States should intensify their efforts to ensure that everyone, including older people and people with disabilities, has equal access to online public services.

Member States should work with the Commission on ways to ensure digital technologies and tools are put at the service of more agile, red-tape free, data-based regulatory frameworks.

Fostering cooperation between MSs:

Member States are invited to make further progress with their multi-country commitments and cooperation in the field of connected public administration and the European Blockchain Services Infrastructure, through the EDICs recently established.

3.1.4. Leverage on digital technologies for health

The use of health data and of advanced technologies have great potential to improve access to health services by citizens, increase the quality and efficiency of healthcare, develop personalised approaches and support research and innovation 120 . According to the findings of the Eurobarometer 2024, four out of five respondents consider digital technologies to be important by 2030 for accessing or receiving healthcare services (e.g., telemedicine, artificial intelligence supporting diagnosing diseases).

During the pandemic, the EU Digital COVID Certificate (EU DCC), developed in record time and risen as global standard, is a notable example: more than 2.3 billion certificates were issued EU-wide and a total of 78 countries were connected to this European solution, which significantly contributed to the global fight against the disease, protecting EU citizens’ health, and restored their right of free movement.

The Digital Decade Policy Programme establishes the target of 100% of Union citizens with access to their electronic health records. In 2023, the EU scored 79/100 up from 72/100 in 2022, corresponding to an annual growth rate of 9.7% 121 . All Member States now have some form of electronic health access service in place, be it regional or national, and have improved the extent of accessible health data categories, access technology and means, and the access opportunities for certain categories of people. The current value is above the expected value of the trajectory in 2023. At this pace, the target will be reached in 2026.

Figure 16: e-Health composite indicator. Historical data and DD trajectory


In their National Digital Decade Strategic Roadmaps, 22 Member States provided a trajectory for the target on the availability of electronic medical data. 21 national target values are in line with the EU target value, which is 100% of citizens have access to their electronic health records. 93 measures contribute to this target, with a total budget of EUR 5.5 billion, with focus on health data access for citizens, including portal solutions and applications for mobile devices, regulations, roadmaps and cross-border projects.

The successful conclusion of the political negotiations on the European Health Data Space Regulation is an important milestone to further reinforce progress in this area and empower and benefit citizens by further developing secure access to electronic health data nationally and across borders, contributing to more efficient healthcare delivery, and improving the quality and accessibility of health data for secondary use for research, innovation and health policy making purposes.

The Commission has put forward several initiatives on health data infrastructure and research and innovation in the area of health. The European Cancer Imaging Initiative, launched in December 2022 is federating cancer imaging and clinical data across 12 European countries to support innovation in clinical decision-making and prediction; the 1+ Million Genomes Initiative is establishing secure access to genomic and linked clinical data through the European Genomic Data Infrastructure and a European reference genome, the Genome of Europe; and the European Virtual Human Twins Initiative, launched in December 2023, which aims to accelerate personalised care through advanced modelling, with applications in drug discovery, clinical research, and medical training.

Recently, the attention on the health dimension of digitalisation has also focused on the fact that particularly certain online interface designs can have negative impacts on health, in particular mental health, as result of excessive connectivity and related stress, addiction risks, or exposure to violent and inappropriate content 122 . Recently adopted legislations, notably the Digital Services Act, offer tools to address such risks (see section below).

e-health - Recommended policies, measures and actions:

Completing the Digital Single market: Member States should ensure that access to electronic health records, with a minimum set of health-related data stored in public and private electronic health record systems, is technologically enabled and easily accessible for people (via a patient portal or patient mobile app). In alignment with the goals of the European Health Data Space, this minimum set should include electronic health record summaries, electronic prescriptions and dispensations, as well as electronic results and reports including medical imaging studies, laboratory results, and hospital discharge reports.

Member States should cooperate to fully deploy the innovation potential of health data by maximising the use of existing and future health data initiatives and infrastructure, investing in the research and deployment of advanced technologies such as high-performance computing and trustworthy AI applications in healthcare, while strengthening cybersecurity measures.

Fostering cooperation between MSs:

Member States are invited to make further progress in setting up the proposed EDICs in the area of genomics and cancer imaging data with a view to driving innovation in personalised healthcare and AI solutions in cancer care. 

3.2. Protect people and a build safe and human centric digital environment and technologies

The general objectives set out in the Digital Decade Decision emphasise the fostering of a human-centred, fundamental-rights-based, inclusive, transparent and open digital environment 123 . Furthermore, the Declaration on Digital Rights and Principles encompasses principles and commitments for accessing a trustworthy, diverse and non-discriminatory digital environment. It underscores in particular the role of very large online platforms in mitigating risks arising from their services, including disinformation.

3.2.1. Build safe digital environments and safeguard fundamental rights online

The misuse of online platforms and their algorithms can facilitate and amplify the spread of hate speech, violent extremism, and terrorist content, posing threats to individuals or specific target groups. Recent events, like the Middle East crisis, provided yet another reminder of how online platforms can be used for incitement to terrorism and dissemination of illegal hate speech. According to Eurobarometer 2024's findings, risks linked to misuse of personal data, the proliferation of fake news and disinformation are one of the main issues of concern encountered online, while non-justified removal of content and non-transparent content moderation practices were the two least mentioned issues.

In 2023, 33.5% of EU individuals reported having encountered hostile or degrading online messages targeting specific groups because of their political and social views, racial or ethnic origin, or sexual orientation, highlighting the widespread nature of online hate speech 124 .

In the Declaration on Digital Rights and Principles, the EU and Member States have committed to tackle all forms of illegal and harmful content online, in full respect for fundamental rights, notably freedom of expression. 125

The implementation of the Digital Services Act 126 . Since April 2023, the Commission designated 24 Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs). 17 February 2024 marked the DSA’s entry into full application. From this date, the Member States were required to designate and adequately empower their Digital Service Coordinators (DSCs) 127 and the new rules started to apply to all online intermediaries, irrespective of their size. Although at its early stages, the DSA already started to have a notable impact. Enforcement actions addressed to VLOPs and VLOSEs have been already taken by the Commission. In December 2023 and April 2024, the Commission opened formal proceedings respectively against X and Meta (for both Facebook and Instagram), which, among others, concerned the dissemination of illegal content in the EU and the effectiveness of measures taken to mitigate risks to civic discourse and electoral processes. Formal proceedings were opened against TikTok (in February and April 2024) and Meta (for both Facebook and Instagram, in May 2024) in areas related to the management of risks related to negative effects on physical and mental health and children’s rights, notably as a result of addictive design, ‘rabbit holes’ or access to harmful content. In the second case against TikTok, concerning addictive features of TikTok Lite, the Commission communicated to TikTok its intention to suspend the relevant features in the EU pending the assessment of their safety: as a result, TikTok announced unilaterally to withdraw the relevant features; the non-compliance case remains nonetheless open and the investigation is ongoing. In March 2024, AliExpress was also added to the group of VLOPs against which the Commission opened formal proceedings. Among other things, the proceeding concerned issues such as the lack of enforcement of the terms of service prohibiting certain products posing risks for consumers' health, such as fake medicines, the compliance with the DSA obligation to allow all users to notify illegal content on the platform, and with the transparency obligations. Finally, in June 2024, following a request for information from the Commission, LinkedIn decided to voluntarily discontinue a functionality on which there was a suspicion that it would violate the DSA ban on targeted ads based on sensitive personal data, like sexual orientation, political opinions, or race.

Protecting fundamental rights and empowering democratic values online is an aspect that a small number of National Digital Decade Strategic Roadmaps took into account (Belgium, Croatia, Greece, Luxembourg, the Netherlands, Romania, Slovenia). The measures include activities aiming to protect from disinformation, manipulation and harmful content. Please note that these elements are also relevant to section 4.3 below.

Beyond strong supervision and enforcement, it will be crucial to monitor emerging trends and deepen knowledge and research into complex issues such as the dynamic interplay between digital tool usage, exposure to harmful content, and mental health and well-being, in terms of addiction, depression anxiety, self-harm, depression.

Objective safeguarding rights - Recommended policies, measures and actions:

Completing the Digital Single market:

Members States should accelerate action that is necessary for the implementation of the regulatory framework, particularly the DSA. They should focus on establishing the necessary governance system at national level and to foster close cooperation and engagement with the Commission, the newly created European Board for Digital Services, Digital Services Coordinators and civil society.

Mobilising investments:

Member States should step up effort to develop research and knowledge on – and monitor the trends in – the online domain, notably on the interplay between digital tool usage, exposure to harmful content, and mental health (including on children and adolescents).

3.2.2. Protect and empower children (including via age verification)

Protecting children is a key priority for the Digital Decade. In the Declaration on Digital Rights and Principles, the EU is committed to empower children to make safe and informed choices, including by promoting positive experiences for children and protecting them against harmful content and abuse 128 . The risks related to illegal and harmful content presented above are even more pertinent to children, as young people frequently use digital products and services designed for adults. Digital services, from social media to interactive games, can expose children to risks such as addiction, unsuitable content, bullying, grooming, dangerous challenges, child sexual abuse or radicalisation, and some of these phenomena are surging across the EU. Statistics from the Insafe helplines run by the EU-funded Safer Internet Centres (SIC) show that there has been a 34% increase in the number of reports from young people about cyberbullying between 2022 and 2023 129 , while the number of reports to the INHOPE hotlines of suspected child sexual abuse material from the public also increased by one third 130 . Other sources show a dramatic increase (+320%) of grooming reports, including financial sextortion, in EU countries quadrupling from 2022 to 2023, settling at over 32 thousand online enticement reports in the EU alone 131 .

On 7 June 2023, the Commission Communication on a comprehensive approach to mental health put mental health on par with physical health, as part of a strong European Health Union 132 , and it flags the potential negative effect that digital tools can have on children’s well-being and health, calling for a safer and healthier digital space for children. The combination of the significant amount of time spent online by children with the sophisticated and invasive digital techniques used by advertisers poses new and serious challenges for the protection of children, from mental health issues to unhealthy food, tobacco and emerging products and alcohol marketing. In this regard, some precautionary action might be also needed, linked to the absence of evidence that the online space is sufficiently safe for children and teens.

The Audiovisual Media Services Directive (AVMSD) and Digital Service Act (DSA), in addition to the General Data Protection Regulation (GDPR), seeks to protect the privacy and safety of minors, e.g., by banning targeted advertisement addressed to minors based on profiling, and requiring VLOPs and VLOSEs to assess and mitigate systemic risks of their services to children’s rights as well as negative effects of their services on people’s mental or physical well-being.

To better protect children online, in May 2022 the Commission also adopted a proposal for a Regulation on preventing and combating child sexual abuse (CSA) 133 while the 2022 Better internet for kids strategy (BIK+) supports children’s empowerment and provides resources for awareness campaigns and offers helpline and hotline services.

Finally, the Task Force on Age Verification is currently exploring the use of the EU Digital Wallet for an EU-wide, interoperable, secure and privacy preserving solution to prove users’ age.

Protecting children online is also a well-established priority at national level and, in recent years, in most Member States there have been notable developments and an increasing attention to children's online safety, health and as well-being online, sexual exploitation, and cyberbullying 134 . A very small number of National Digital Decade Strategic Roadmaps (mainly Poland and Romania) cover protecting children online, reporting specific measures planned or already in place. When reported, the measures include legislative action and the development of relevant strategies, but not specific funding.

Going forward, greater attention is needed, as reflected by the growing perception that children need to be better protected online (the 2024 Eurobarometer survey showed a 10 percentage points increase in one year). This would encompass a more solid understanding of the complex interlinks between digital tools and well-being of children as well as concrete and bold action 135 , design of technical solutions, strong enforcement of the existing legislation, strengthened information on existing rules, awareness raising on risks and proactive measures to minimise them.

Objective: protecting kids - Recommended policies, measures and actions:

Completing the Digital Single market:

Member States should work with the Commission to ensure secure, privacy preserving, user-friendly and interoperable digital identity solutions and trust services, including for age verification, to enable the development of a harmonised solution from 2025 across the EU, notably leveraging the EDIW.

Cooperation

Member States are encouraged to continue coordinating with the Commission to increase protection, digital empowerment and safety of children online, notably in the implementation of the European Strategy for a Better Internet for Kids Plus. Special attention should be given to awareness-raising initiatives concerning new challenges to child safety and well-being raised by artificial intelligence, virtual worlds, overexposure to digital content, digital threats (such as hate speech, cyberbullying, harassment, child sexual abuse, grooming, and violent content), or aggressive marketing, including through child protection safeguards by design.

Member States should step up effort to cooperate on protecting children from the risks that the use of digital technologies has on their health including with better monitoring and research.

3.2.3. Promote responsible and human-centric AI systems

The emergence of General Purpose and Generative AI models (GPAI) has led to both unprecedented potential and heightened risks including malfunctioning systems endangering physical safety, opaque decision-making processes, privacy infringements, criminal exploitation of data, discriminatory algorithms, and the proliferation of AI-generated disinformation.

In response to these challenges, the landmark European AI Act was officially adopted in April 2024. This pioneering regulation is the world's first horizontal AI legislation and seeks to address societal challenges, rights and safety, including ethical considerations while establishing effective yet proportionate requirements for AI systems operating within the European Union. Provisions within the AI Act include prohibitions on AI systems posing unacceptable risks (considered as a clear threat to the safety, livelihoods and fundamental rights), minimum quality standards for AI systems and use cases that pose a high risk to fundamental rights (such as in healthcare, education, and policing), enhanced transparency measures, and mechanisms for individuals to file complaints regarding AI-related harms. The monitoring of the Declaration on Digital Rights and Principles 136  shows that parallel efforts to address AI are made at national level, including through soft law codes or co-regulation. Many other regions in the world have been inspired by the European approach and are now considering legislative measures looking at the EU’s experience and expertise.

Promote human centric and responsible AI systems is an aspect that a small number of National Digital Decade Strategic Roadmaps (Belgium, Germany, Greece, the Netherlands, Sweden) took into account in their roadmaps. The measures support the development of safe and non-discriminatory AI systems, including in social services, education and R&D projects in SMEs.

Looking ahead, successful implementation of the AI Act is paramount. Collaboration with Member States, SMEs, and other stakeholders will be essential to ensure effective implementation, including through the development of technical standards, guidance documents, and common principles.

Objective Human centred - Recommended policies, measures and actions:

Completing the Digital Single market:

Members States should accelerate action that is necessary to accompany the implementation of the AI Act. This requires notably to foster close cooperation and engagement with the Commission, the newly created AI office and National regulators, and civil society.

Member States should step up their efforts to develop research on human-centric AI systems.

3.3. Promote and preserve our democracy

Achieving the Digital Decade general objectives and upholding the European Declaration on Digital Rights and Principles is essential for the EU’s democratic systems, as these aim to counter the spread of online misinformation and disinformation. This effort ensures that citizens can make informed choices and have cross-border access to reliable information, provided by high-quality, independent and transparent media. 

3.3.1. Address disinformation and preserve election integrity    

Disinformation has been identified as one of the biggest destabilising factors for our societies going into the future 137 , including in the EU where 38% of EU citizens listed ‘false and/or misleading information circulating online and offline’ as the biggest threat to democracy 138 in 2023. According to the Eurobarometer 2024, 45% of Europeans consider fake news and disinformation to be one of the issues encountered online with the biggest personal impact on them.

The proliferation of disinformation poses a significant threat to civic discourse and the integrity of electoral systems in the EU. The COVID-19 pandemic and then the political developments of 2023, notably the Russia's ongoing invasion of Ukraine and the Israeli-Palestinian conflict, further fuelled disinformation, linked in particular to foreign information manipulation and interference (FIMI) 139 . The spread of disinformation has the potential to amplify societal and political polarisation, as well as distrust in institutions, including in electoral processes. On top of the earlier recognised patterns of mis- and disinformation, the recent rise of generative AI has brought novel threats, such as its use to facilitate the creation of disinformation or spread it through chatbot hallucinations and deepfakes.

In the last years, the European Commission proposed two main pillars of the strategy against disinformation: the Digital Services Act, according to which VLOPs and VLOSEs must take appropriate mitigation measures in case their functioning poses the risk of amplifying disinformation, and the Code of Practice on Disinformation, which is now in process of being converted into a Code of Conduct under the DSA. In March 2024, the Commission adopted guidelines on the mitigation of systemic risks for electoral processes setting out the measures that it expects to be adopted by VLOPs and VLOSEs to comply with the DSA. Three formal proceedings for breaching the obligation to counter the spread of disinformation have already been opened under the DSA, notably against X and Meta’s Facebook and Instagram.

In December 2023, the Commission adopted the defence-of-democracy package, consisting of proposals and recommendations to address challenges such as foreign interference, to encourage civic engagement and democratic participation in the EU. In line with the Declaration on Digital Rights and Principles, the Commission Recommendation of 12 December 2023 asked Member States to take measures to promote inclusive participation and resilience against disinformation and cyber threats 140 . The monitoring of the Declaration on Digital Rights and Principles also shows that, due to the challenge of tackling harmful content itself, most Member States’ efforts rely on improving citizens’ media literacy and critical thinking through various educational activities, that are key prerequisites for building our society’s resilience towards disinformation along in the long term 141 .

The Commission has funded the European Digital Media Observatory (EDMO) to join efforts by academia, civil society and public authorities to strengthen media literacy and build societal resilience to online disinformation. 

Objective protecting democracy - Recommended policies, measures and actions:

Mobilising investments:

Member States should foster the growth of a community that would tackle different challenges linked to disinformation, like fact-checking, media literacy and research activities, such as engaging in more research on disinformation, regarding structural, psychological, sociological, and technological factors driving it. Member states could in particular foster the growth of fact-checking services to contribute to the new digital media ecosystem as well as invest in developing technological tools that can help users better detect and contextualise disinformation.

Member States should create and implement a strategy for countering foreign information manipulation and interference (FIMI) campaigns. They should continue working on identifying FIMI campaigns, while also creating efficient and effective channels for the exchange of data.

Promoting cooperation:

Member States should explore the establishment of a European Observatory on the Digital Divide to analyse, from a comparative perspective, the issue of digital divide on vulnerable social groups across the EU.

Member States are encouraged to continue supporting the Commission in the effective enforcement of the Digital Services Act in relation to the fight against disinformation, especially by providing supporting data.

3.3.2. Access to media and media pluralism

Empowering independent media actors to provide reliable information online and people to seek out such information is key to strengthening democratic societies’ resilience in the digital age.

TV remains the most used media to access news, however online media are catching up, while the printed press is dropping to just less than 1/5th of the population consuming it everyday 142 . The first European Media Industry Outlook from May 2023 143 shed a light on key trends in the media industry, also showing that media increasingly operate under the logic of an attention economy, whereby different forms of content (news, advertising, entertainment) compete to capture attention.

The European Media Freedom Act (EMFA), which entered into force on 7 May 2024, aims to improve the functioning of the single market for media services as they become increasingly digital and inherently cross-border. This strengthened EU media law framework will be promoted by the new independent European Board for Media Services.

The EMFA includes unprecedented safeguards for media and journalists against political interference, as well as rules ensuring that media can operate more easily across borders, without undue pressure and benefiting from the digital transformation of the media space. With its provisions on the provision of and access to media services online and transparency rules on media ownership, the act will lead to more diverse range of quality media content enabling pluralistic public debates, in line with the Digital Decade objectives and the Declaration on Digital Rights and Principles.

The EMFA comes together with other initiatives supporting media freedom and pluralism, such as the proposed Directive to improve the protection of journalists and human rights defenders from abusive court proceedings (SLAPPs) and recommendations on internal safeguards for editorial independence and ownership transparency in the media sector and the protection, safety and empowerment of journalists. It has synergies with the DSA, the Code of Practice on Disinformation and other digital regulation. Finally, actions to promote the digital transformation of media industry, its pluralism, quality journalism, fact-checked information and media literacy are supported under the Commission’s Media and Audiovisual Action Plan 144 and dedicated funding 145 , notably the Creative Europe programme.

Objective protecting democracy - Recommended policies, measures and actions:

Member States should foster media freedom and pluralism to help citizens to access a diverse online information and news space, by supporting the industry and cooperating with other Member States and with the European Commission.

4. Leveraging digital transformation for a smart greening

Eurobarometer 2024: the twinning of the digital and green transitions is considered a key factor in Europe’s digitalisation. Four out of five people in Europe consider it important that the public authorities ensure that digital technologies serve the green transition.

The Digital Decade objectives aim to ensure the sustainability and resource-efficiency of digital infrastructures and technologies. It also highlights several infrastructure sustainability targets such as the development of edge nodes and semiconductors. Together with the European Declaration on Digital Rights and Principles, the Digital Decade seeks to promote sustainable digital technologies, products and services, as well as providing access to information on environmental impact and energy consumption. Furthermore, it encourages the adoption of digital technologies that have appositive impact on the environment and climate 146 .

4.1. The nexus between green transition and digital transformation

Global warming concerns have grown in recent months, and environmental hazards continue to dominate the risk landscape. Temperature records continued to be broken in 2023 and climate change and biodiversity loss are among the world's biggest challenges in the next decade, according to the World Economic Forum's 2024 Global Risks Perception Survey (GRPS) and the Munich Security Report 2024 147 . Europe is particularly exposed as the fastest warming continent in the world, with several regions such as Southern Europe being hotspots for multiple climate risks 148 .

With climate change concerns, assessing the environmental effect of technologies’ growing proliferation and use has become paramount. While challenges persist in measuring impacts and determining the assessments that should occur, data robustly shows technologies’ footprint on the environment is set to enlarge. Digitalisation is a resource-intensive process (energy, water and raw materials extraction), and while some technologies are revealing sustainability paths, the so-called 'twin transition’ is not yet guaranteed in practice.

The monitoring of the Declaration so far reports a limited number of measures taken by Member States in relation to developing sustainable technologies and technologies that have a positive impact on climate and the environments, such as standards and labels 149 .

The perception of the role that the digital transformation and the adoption of technologies is playing is growing, both regarding the need to reduce the ICT footprint and achieve productivity growth and efficiency gains for companies, as well as breakthroughs in energy-efficiency, net-zero and clean technologies. Figures released by the International Energy Agency (IEA) suggest that global electricity demand rose considerably in 2023 and is expected to grow at ai much faster pace in the next two years, in line with the global demand for Internet services and AI 150 . Electricity consumption from data centres, AI and the cryptocurrency sector could double in the next two years, as large storage capacities and efficient processing techniques are required to feeding AI systems. But today's data centres are not designed to support this: greater energy and storage capacities will need to be built 151 .

More generally, there is a growing sense that digital transformation can steer a ‘smart green transition” which is enabled by and supports a more competitive European economy.

4.2. Towards Sustainable digital infrastructures

Eurobarometer 2024: The perception of the role of digital technology to fight climate change is increasing- 3 out of 4 Europeans consider that digital technologies will be playing an important role in helping to fight climate change, showing a 10% progress in one year, as they were only 2 out of 3 respondents in the Eurobarometer 2023.

The digital sector remains a significant source of energy consumption, emissions and waste. Today, it accounts for approximately 7-9% of global electricity consumption, forecasted to rise to 13% by 2030 152 , and for increasing amounts of e-waste 153 .

For example, in the case of France, the vast majority (79%) of the carbon footprint of the digital sector comes from digital devices (including smartphones, computers, tablets), especially at the production stage. However, recent trends suggest that the GHG emissions of device manufacturers are slowly decreasing (-5.4% between 2021 and 2022), while the data centres’ which represented only 16% of the emissions, have increased over 2021-2022 with +14% of GHG emissions, +15% electric consumption, and +20% water consumption 154 . A prospective study 155 evaluated that, in a no-policy change scenario, the carbon footprint of the digital sector would increase by +45% by 2030. This large increase is driven by the growth in data flows, mainly videos, itself supported by a growing number of data centres. The latter could represent 22% of digital GHG emissions in 2050, despite the use of technologies ensuring better energy efficiency.

A substantial share of digital energy and resource consumption is expected to be linked to AI, as reported by the OECD 156 . This is due likely massive increase in data storage and processing. Recent estimates predicting that at a global level, the electricity consumption of data centres could double between 2022 and 2026 157 . Depending on the technology used, cooling of data centres can also have a significant impact on water use and hence need to be addressed on the path towards sustainable digital infrastructures.

In terms of the circular economy, the use of recycling remains limited as in the EU, 10.4% of people reported recycling their mobile/smart phones, 9.7% for laptops and tablets and 12.8% for desktop computers. At business level, almost one in two enterprises (48.7%) have considered the environmental impact of ICT services and equipment before selecting them and applying some measures, affecting the paper or energy consumption of the ICT equipment 158 .

In 2023, the EU has set eco-design minimum efficiency requirements for smartphones, tablets and earlier for servers and computers that are currently under review. The revision of the Energy Efficiency Directive 159 included, for the first time, provisions on the energy performance of data centres. New planning and assessment rules have been adopted with a view to encouraging new data centres to be located where waste heat can be reused, and energy and water needs for cooling be reduced. In addition, the Delegated Regulation 2024/1364 160 sets out the rules to monitor the energy performance of data centres and to collect and publish data, including also on the energy and water footprint of data centres.

The Commission also conducted in 2023 a study led by its JRC to identify common indicators for measuring the environmental footprint of electronic communications services 161 . The final report includes a selection of possible indicators to be used as a basis for future Code of Conduct for sustainable telecommunications networks, which should be finalised by the end of 2025.

Energy-efficient semiconductors are critical for reducing the energy consumption of electronic devices, playing a pivotal role in global efforts to mitigate carbon emissions. This is an area where the EU has a clear global leadership. Several developments, supported by the EU and Member States, will contribute to accelerate progress toward carbon neutrality. First, the miniaturisation of chips will considerably increase their energy efficiency. In particular, the leading European technologies developed by ASML and Imec will enable to design 3 nm chips that will deliver 35% of efficiency gains as compared with 5 nm ones. Second, low-power processors will lead to groundbreaking energy savings in AI technologies based on edge. Third, the use of new materials – so called wide-bandgap materials such as Silicon Carbide and Gallium Nitride are also expected to improve performance and energy efficiency.

Investment will be critical to incentivise the move towards more resource-efficient digital technologies. The Recovery and Resilience Facility thus supports measures that leverage digital technologies to support the green transition, such as the digitalization of transport systems, including railways and urban transport, or the deployment of Smart Energy Systems (including smart grids and ICT systems).

The EU Taxonomy Regulation Delegated Act on climate mitigation and adaptation has set clear criteria that will help steer investment towards greener data centres and proven green digital solutions as a sustainable economic activity. Over the summer of 2024, the Commission will publish an EU Cloud Rulebook as a single point of reference for relevant rules applicable to the cloud, including on sustainability.

In February 2024, the Commission launched a feedback period for stakeholders on the White Paper titled 'How to master Europe's digital infrastructure needs?' 162 . As set out in one of the several scenarios, the Commission may consider facilitating greening of digital networks through promoting the timely switch-off of copper networks and moving to a full fibre environment and more efficient use of networks (codecs) throughout the Union territory. It includes engaging with the industry to further improve the usability and potential scope of the EU Taxonomy for green investments, metrics to estimate the net carbon impact of digital solutions, and the cooperation of all players of the digital network ecosystem to reduce their carbon footprint, including concrete actions such as codecs performance labels.

Sustainable digital infrastructures and technologies are an aspect that only a small number of National Digital Decade Strategic Roadmaps (mainly Belgium, France, Germany, Greece, the Netherlands, Luxemburg, Slovenia and Slovakia) have addressed. The largest part of the measures focuses on the development and use of energy- and resource-efficient technologies and infrastructure, ranging from reducing e-waste to measures supporting circular and digital business models. Developing measurements and monitoring the environmental impact of digital technologies, including in design of new e-services, is also taken into account through a small number of measures.

Greater coordination is possible between national roadmaps and National Energy and Climate Plans (NECPs). In December 2023, the Commission has published its assessment of EU Member States' draft NECPs and issued recommendations to assist Member States in raising their ambitions in line with EU targets for 2030. Several links between digitalisation and sustainability were made in the assessment, notably digitalisation as an enabler to integrate renewables in the grid, and cybersecurity as a key requirement for a secure and robust energy system. Overall, Member States’ draft updated plans lack measures and funding to implement the EU action plan to digitalise the energy system as well as on digital and green skills 163 .

4.3. The digitalisation for the green transition is entering into concrete delivery.

The digital transformation is playing an essential role in the efforts to reduce the environmental footprint and achieve the European Green Deal, with a potential to reduce the total GHGs by 15%-20% before 2030 (WEF, GESI), if properly used and governed.

In this regard, 2024 is a delivery year with very substantial and concrete outcomes.

-One of the current priorities has been to deliver a science-based methodology to measure the net environmental impact of digital solution, to enable the collection of evidence as a basis to develop policies. Launched in 2021 by the Commission the European Green Digital Coalition 164  (EGDC) was established to bring main ICT stakeholders to develop science-based methodology to quantify the net environmental impact of digital solutions, to demonstrate its usability in use cases, and to develop guidelines for major sectors. The EGDC has successfully delivered all goals in March 2024 and will engage as of Q4 of 2024 with stakeholders of climate critical sectors, namely energy, transport, construction, agriculture, health, smart cities, and manufacturing, to develop eligibility criteria to support such digitalisation with sustainable finance.

-The Commission is supporting a range of AI-driven projects through Horizon Europe and DEP to optimise resource utilisation, minimise waste, and curb energy use across various sectors.

-Digital tools are playing a key role to foster coordination and cooperation at local level. The newly established European Digital Infrastructure Consortium CitiVERSE will contribute to build smart and green cities, fully in line with the twin digital and green transition and the New European Bauhaus of creating inclusive, aesthetic and sustainable cities. By the same token, the European Digital Innovation Hubs (EDIH) network promotes a sustainable approach to digitalisation in all the activities and services they provide at regional level to SMEs and local public administrations. The European Green Deal Data Space will be implemented as of Q4 2024 and it will boost a data economy to achieve Green Deal Objectives in the area of Circular Economy, Biodiversity, Climate change/ adaptation and Zero Pollution. The EU today is home to 114 hubs addressing both the green transition and digital or derivatives of those policy priorities.

-Destination Earth (DestinE), a digital twin of the Earth supported by the European Commission, is on the eve of being launched and open to users mid-2024. With its groundbreaking features enabling to model, monitor and simulate natural phenomena, hazards and the related human activities with a unique level of accuracy, speed and interactivity, DestinE will assist users in designing accurate and actionable adaptation strategies and mitigation measures.

-The Commission supports the electricity grid operators (DSOs and TSOs) to develop a digital twin of the European grids. This will foster cooperation between grid operators, help drive and coordinate public and private investments, and facilitate standardisation efforts.

The contribution of digitalisation to the green transition is an aspect that a small number of National Digital Decade Strategic Roadmaps (mainly Croatia, Cyprus, Denmark, Germany, Greece, Romania, Slovakia, Slovenia, Sweden) took into account. The measures include various application fields, including edge computing and data centres, tourism, energy efficiency of buildings, high-speed connectivity networks and mobility.

4.4. The way forward

Building on the growing citizen’s perception and overall political support in Europe on the important potential of the digital transformation to foster a smart green transition 165 and on the achievement realised in 2023, the priority is to develop synergies and move from small scale pilots and initiatives to large scale projects based on cooperation between public and private actors.

Objective smart greening - Recommended policies, measures and actions:

National Roadmaps:

Member States should consider wider deployment of digital solutions in supporting the sustainability targets of climate critical sectors such as energy, transport, buildings, and agriculture. This will also support the competitiveness and growth of the EU green digital tech market.

Completing the Digital Single market:

Member States should accelerate and intensify their preparatory action necessary to report con data centre sustainability building on the Energy Efficiency Directive.

Member States, in cooperation with European Commission and relevant stakeholders, should develop a methodology to assess the carbon footprint and enablement of digital infrastructures, and in particular, the energy consumption of edge nodes, with the view, by end of 2025, to progress towards Digital Decade metrics to improve the sustainability of digital infrastructures and energy efficiency of edge computing.

Member States should use the European Green Digital Coalition methodology released in April 2024 to measure avoided GHG emissions due to the use of digitally enabled solutions in sectors such as energy, transport, buildings, agriculture, health, smart cities, and manufacturing. These measurements will provide the necessary evidence for eligibility of climate (green) financing for digitalisation of climate critical sectors.

Mobilising investments:

Member States should intensify the work with the European Commission and institutional financial actors on eligibility criteria for green finance to support the deployment of digital infrastructures and solutions that demonstrate positive sustainability impact.

5. Building coherence and synergizing digital policies and spending

The Digital Decade includes a joint commitment to ensure that digital policies, measures and programmes which are relevant for EU’s digital transformation are taken into account in a coordinated and coherent way to fully contribute to Digital Decade objectives, while avoiding overlaps and minimising administrative burdens. This section monitors progress towards these objectives.

5.1. Horizontal implementation through national roadmaps

The first round of national roadmaps marks a successful starting point for discussing, aligning, and sharing pathways for digital transformation across Member States along a common vision. For the first time, the EU can count on national roadmaps for all 27 Member States. Four countries (Czechia, Germany, Greece, and Latvia) have also thoroughly and explicitly integrated the recommendations from the State of the Digital Decade Report 2023 into their roadmaps. Nevertheless, a comprehensive assessment 166 demonstrates that substantial horizontal improvements and adjustments in the national roadmaps are needed to align them with the benchmarks set out in the Digital Decade Policy programme, as per the Commission guidance published in 2023.

Strategic Digital Decade National Roadmaps - Recommended policies, measures and actions

Members States should ensure that all EU targets are covered by national targets and trajectories, reflecting EU’s level of ambition.

Member States should ensure that those national targets and objectives are translated into more ambitious measures, including budget considerations.

Member States should present an analysis of the impact that these measures create to ensure a more sustained progress towards these targets and objectives.

Member States should pay greater attention to the challenges concerning the achievement of general objectives (i.e., human centred digital space, competitiveness, resilience, sovereignty, inclusiveness, sustainability and greening, coherence of the action) and on the necessary measures that should be taken, including as regards to the implementation of the Declaration on Digital Rights and Principles.

Member States should associate stakeholders in appropriate consultation in the adjustment of the national roadmaps.

5.2. Striving for an effective, efficient and red-tape free implementation of the digital regulatory environment

The need to reduce the administrative burden both in the implementation and enforcement of existing legislative acts and when reflecting on new legislative initiatives has been increasingly raised by the Commission and Member States 167 . They have called for synergies, the avoidance of duplication and the adoption of a coordinated approach in managing the existing governance structures, as well as stressing the need for coherence between digital and cybersecurity policy. The following areas could be explored to promote the implementation of the digital acquis, as follows:

-The possibility to consolidate part of the digital acquis in some areas – building on the experience of the European Electronic Communications Code which merged five directives into a single legal document.

-Making full use of the follow up to the White paper on the future of connectivity adopted in February 2024, regarding the simplification of the telecom regulatory framework against a background of a convergence between telecom and cloud-edge services.

-Undertaking a comprehensive mapping of reporting obligations across the entire digital acquis, building on the initial work already done in 2023, with a view to simplify reporting obligations, leveraging the experience of sandboxes, and building on the new possibility of digital reporting.

-Ensuring a swift implementation of the acts, guidelines, codes of practice and other legal initiatives which the European Commission and its new AI Office will have to adopt over the next few months to prepare the ground for the AI Act.

Last but not least, the ‘whole-of-government' approach promoted by the Digital Decade can reduce boundaries between government agencies and facilitate the seamless exchange of data and information between the various systems, thereby simplifying processes for businesses and citizens. 

The new Comitology committee (for implementing acts) and the Digital Decade Board (DDB) as an Expert group (for collaboration and cooperation activities with Member States) were established by Decision of the Commission in 2023. The DDB was designed as a central point for Member States and granted with a broad mandate covering potentially all issues and discussions related to digital transformation, including with regards to governance and reporting obligations, and multi-country projects.

In 2023 and 2024, the Commission and the Member States discussed ways to give the DDB a strategic role, to build on the Board's mandate, and upgrade its positioning as a reference for decision-makers and political leaders under the impulse of the Spanish, Belgium and soon Hungarian Presidency of the EU Council.

The Digital Decade Policy Programme could in particular play a role in promoting synergies between the work of sectorial boards (such as the European Board for Digital Services under the DSA, or the AI Board) and in analysing and clarifying how various EU laws and their governing bodies, such as expert groups, will intersect with one another, ensuring a better understanding of those interactions by stakeholders, especially SMEs.

Objective fostering coordination and coherence - Recommended policies, measures and actions

Completing the Digital Single market:

Members States should cooperate with the Commission to implement tools and solutions to promote consistency in the application of existing legislative acts and to explore ways to reduce administrative burdens, in particular for SMEs.

Member States should exchange best practices on consolidation and codification of the existing digital regulatory framework together with the Commission.

Members States should cooperate with the Commission to develop synergies and improve coordination of existing EU laws with their various governance structures and entities to increase the overall efficiency and coherence of EU legislation while contributing to the improvement of compliance and the reinforcement of the Single Market.

Member States should fully leverage the DDB's role and expertise to help support the implementation of digital acquis.

5.3. Synergising funding for digitalisation

Several EU programmes - such as Horizon Europe, DIGITAL, CEF digital, RRF, and InvestEU – are essential to achieve the objectives and targets of the Digital Decade.

The significant scale-up of EU investment in digital technologies delivered through programmes and instruments in the Multi-annual Financial Framework (MFF) 2021-27 creates opportunities to improve efficiencies, including the cross-fertilisation of industries. It also opens a window to reinforce European innovation by exploring and exploiting technologies at the interface between the civil, defence and space industries, such as artificial intelligence, cloud and quantum computing, as set out in the Action Plan on Synergies between the European civil, defence and space industry of February 2021.

Building on the conclusions of the Council May 2024 168 , the creation of synergies requires adequate planning, designing, and programming of EU funding programmes, aligning strategic priorities, and harmonising rules. Synergies can be developed and fostered in three main areas.

First, complementary funding enables different programmes to participate in the same project. Complementary funding was possible for many of the European Digital Innovation Hubs (EDIH), funded under the DEP in combination with the European Regional Development Fund due to the very strong regional dimension of the EDIH.

Second, sequential funding addresses successive projects built on each other, upstream or downstream, notably between Horizon Europe, Digital Europe Programme (DIGITAL or DEP) and Connecting Europe Facility (CEF2 – Digital) to prepare, deploy and connect digital infrastructures. Horizon Europe supports research, technological development, demonstration, piloting, proof-of-concept, testing and innovation - including pre-commercial deployment - for innovative digital technologies. The DEP focuses on large-scale digital capacity and infrastructure building to support the uptake and deployment of critical existing or tested innovative digital solutions across the EU. The CEF2 - Digital supports the deployment of very high-capacity backbone networks and 5G networks, both corridors and smart communities, necessary to deploy digital services and technologies across the EU. Another example of sequential funding is the action being put into place to allow for the migration of innovation from the civil to the defence sector, in the context of spin-in or spin-off calls.

Third, alternative funding enables one programme or instrument to take up high-quality project proposals from other programmes, in particular through the Seal of Excellence, which recognises the value of a project and encourages other funds to benefit from the high-quality evaluation process. Under Horizon Europe, the European Innovation Council (EIC) Accelerator Seal of Excellence offers a wide variety of funding opportunities by using synergies with other EU and national programmes such as NextGenerationEU or Cohesion funds. The DEP awards the Seal of Excellence notably for the European Digital Innovation Hubs (EDIHs). 151 EDIHs are funded by the DEP and over 70 Seals of Excellence EDIHs have been funded by the European Structural and Investment Funds (ESIF) or the RRF. In 2023, CEF Digital also attributed Seals of Excellence to a number of projects submitted in Call 2 for Global Gateways, which could not otherwise be funded due to lack of budget. Building on the success of the Seal of Excellence, the Strategic Technologies for Europe Platform (STEP) Regulation 169 has introduced the Sovereignty Seal. The Sovereignty Seal will be awarded to projects meeting the minimum quality requirements (including eligibility, exclusion, and award criteria) in the selection process under the DEP, the European Defence Fund, the EU4Health programme, Horizon Europe, or the Innovation Fund.

Last but not least, synergies can also take place between grants and repayable forms of support such as loans, guarantees and equity investment to address particular market failures or investment gaps. The InvestEU Fund can be combined with grants or financial instruments (or both), funded by the centrally managed EU budget or by the EU Innovation Fund. Such a streamlined investment process enables visibility of the project pipeline and maximises synergies across relevant EU programmes in areas such as digitisation. This is the case with the blending operations between DEP and InvestEU, where the InvestEU guarantee is increased to provide targeted equity support in the field of strategic digital Technologies or chips.

Objective fostering coordination and coherence - Recommended policies, measures and actions:

Mobilising investments:

Member States should cooperate with the Commission to develop further synergies across the funding programmes that are mobilised for EU’s digital transformation, to avoid duplication and pursue complementarities.

Member States should maximise the impact of the EU budget by supporting in particular projects with strong cross-border dimension which have received Seals of excellence or should further extend their coverage, thus ensuring European investments act as an accelerator for upcoming initiatives to achieve the Digital Decade’s objectives and targets.

Member States should cooperate with the Commission to promote a streamlined investment process to ensure the visibility of project pipelines and maximise existing synergies.

5.4. Increase cooperation across levels, including involving cities and regions more in the Digital Decade

One of the major issues faced by the EU’s digital transformation, as reflected in the monitoring of objectives and targets, is the lack of dissemination of digital technologies beyond hot spots including some large cities as shown by the persisting digital divide and the lack of digitalisation of businesses, especially SMEs. As shown by the 9th Cohesion Report 170 regional convergence is still lagging as capital regions often concentrate investments, human capital and digital infrastructures while other regions, remote and rural areas, struggle to boost economic activity and face demographic challenges. A successful Digital Decade will not be possible without greater attention to inclusiveness and the involvement of all actors at all levels. Institutionally, the multiple references to regions in the policy programme demonstrate the objective of the European Parliament and the EU Council to ensure an inclusive approach for the digital decade that goes beyond EU and national level.

Regions and municipalities share many of the key challenges obstructing the digital transformation whether on infrastructure, smart governance, smart mobility, start-up ecosystems, open data or digital sustainability. A recent survey 171 undertaken by the EIB shows that access to digital and technical skills represent major obstacles to the digital transformation of more than half (58%) of municipalities in the EU. More generally, local and regional authorities play an important role in the delivery of Union’s initiatives as 70% of EU legislation needs their intervention to be implemented 172 .

The Digital Decade Policy Programme and the Declaration on Digital Rights and Principles are an opportunity to increase regions and cities’ contribution to the EU’s digital transformation, providing a common language and a comprehensive framework, enabling alignment on priorities defining the ‘European way’ based on cooperation and a governance mechanism that creates new opportunities for Member States, regions and cities to partner up and intensify their action, including via projects such as the LDT-CitiVERSE-EDIC.

Conversely, the specific experience and capacities of regions and cities are critical for a successful Digital Decade with a wealth of practical experience, knowledge, innovative solutions based on everyday contacts with people and businesses that can also help better monitor the Declaration on Digital Rights and Principles, tackle issues such as the digital divide and ensure that the benefits of digitalisation can reach all local groups, including SMEs. Local observatories and Observatories of Digital Divide are promising channels through which regions and cities are hosting a breeding ground of information from the public on the challenges of digitalisation in their daily lives, and on digital divides 173 . The Cities Coalition for Digital Rights 174 , a network of cities committed to promoting and defending digital rights in the urban context can also play a key role in implementing the Declaration on Digital Rights and Principles.

At local level, the grassroot Living-in.EU movement set up by European cities has embraced the Digital Decade to lead digital transformation in regions, cities and local communities. It is supported by the Committee of the Regions and by the European Commission via the DEP. Set up in 2019, the movement is growing constantly and boasts more than 150 signatories and over 130 institutional supporters, representing already 10% of the EU population. The Living-in-EU movement initiated LORDIMAS, a tool developed to measure digital maturity at the local level, which could be further aligned with the Digital Decade to help national and EU-level policymakers provide better policy support and targeted funding. However, regions and cities’ current modes of disseminating best practices and success stories lack the efficiency of a framework and the internal engineering needed to share their experiences and knowledge more effectively, in particular with regards to the smallest communities. Cities across the EU would benefit from actual dissemination projects, including deadlines, financial means, and, by design, a mechanism to replicate the best practices for smaller cities.

Objective fostering coordination and coherence across levels - Recommended policies, measures and actions:

Member States should cooperate with the Commission to stimulate a closer and bidirectional dialogue with regions and cities including through existing networks; and to identify, collect and disseminate best practices, notably reflecting the Declaration of Digital Rights and Principles. This should build on existing ‘Local Observatories’ which could act as the main vehicle for collecting best practices and disseminating them across governance levels.

Member States should improve data collection and monitoring of the digital transformation at the local level in support of the Digital Decade Policy Programme.

(1)

 SWD ‘Digital Decade in 2024: Implementation and perspective’, Annex 3. Analysis of national Digital Decade strategic roadmaps, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325 . The monitoring of the Declaration on Digital Rights and Principles draws on various sources, including an independent support study ( https://digital-strategy.ec.europa.eu/en/news-redirect/833359 ), Commission reporting mechanisms such the monitoring of the Berlin Declaration , and the 2024 Special Eurobarometer Report on the Digital Decade (Eurobarometer 551 ‘The Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351 ).

(2)

Commission Communication, Report on the state of the Digital Decade 2023, COM/2023/570 final, https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2023:570:FIN.

(3)

 Strategic Compass for Security and Defence, https://data.consilium.europa.eu/doc/document/ST-7371-2022-INIT/en/pdf .

(4)

NIS Cooperation Group, Cybersecurity and resiliency of Europe’s communications infrastructures and networks: Follow-up to the Nevers Call of 9 March 2022, February 2024, https://digital-strategy.ec.europa.eu/en/library/report-cybersecurity-and-resiliency-eu-communications-infrastructures-and-networks .

(5)

 Speech of President von der Leyen at the World Economic Forum in Davos 2024, https://ec.europa.eu/commission/presscorner/detail/en/speech_24_221.

(6)

 Varadajan et al., ‘The Unwinding of Global Tech Supply Chains’, Boston Consulting Group, March 2023, https://www.bcg.com/publications/2023/the-unwinding-of-global-tech-supply-chains#SnippetTab.

(7)

 Joint Communication on a European Economic Security Strategy, JOIN/2023/20 final, https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=JOIN:2023:20:FIN.

(8)

ESPAS, Global Trends to 2040: Choosing Europe's Future, April 2024, https://www.espas.eu/files/espas_files/about/ESPAS-Global-Trends-to-2040-Choosing-Europes-Future.pdf.

(9)

 A new European Defence Industrial Strategy: Achieving EU readiness through a responsive and resilient European Defence Industry,  https://defence-industry-space.ec.europa.eu/document/download/643c4a00-0da9-4768-83cd-a5628f5c3063_en?filename=EDIS%20Joint%20Communication.pdf .

(10)

European Commission, White Paper on options for enhancing support for research and development involving technologies with dual-use potential, January 2024, https://research-and-innovation.ec.europa.eu/system/files/2024-01/ec_rtd_white-paper-dual-use-potential.pdf; Keynote speech by the President: EDA Annual Conference 2023, 30 November 2023, https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_23_6207.

(11)

 A new European Defence Industrial Strategy: Achieving EU readiness through a responsive and resilient European Defence Industry,  https://defence-industry-space.ec.europa.eu/document/download/643c4a00-0da9-4768-83cd-a5628f5c3063_en?filename=EDIS%20Joint%20Communication.pdf .

(12)

 Statement by Commissioner Gentiloni at the presentation of the Winter 2024 Economic Forecast, February 2024, https://ec.europa.eu/commission/presscorner/detail/en/speech_24_844 .

(13)

McKinsey Global Institute, Accelerating Europe: Competitiveness for a new era, January 2024,  https://www.mckinsey.com/mgi/our-research/accelerating-europe-competitiveness-for-a-new-era .

(14)

Inaugural lecture of the EMU Lab by Isabel Schnabel, Executive Board of the ECB, at the European University Institute, ‘From laggard to leader? Closing the euro area’s technology gap’, Florence, February 2024, https://www.ecb.europa.eu/press/key/date/2024/html/ecb.sp240216~df6f8d9c31.en.html.

(15)

European Commission, The 2024 Annual Single Market and Competitiveness Report, SWD(2024) 77 final - SWD(2024) 78 final,  https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52024DC0077 .

(16)

  https://www.cfr.org/event/conversation-christine-lagarde-0 .

(17)

Recommendation (EU) 2023/2113 of 3 October 2023 on critical technology areas for the EU’s economic security for further risk assessment with Member States, C(2023) 6689 final, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202302113.

(18)

European Investment Bank, Investment Report 2023/2024: Transforming for competitiveness, https://www.eib.org/attachments/lucalli/20230323_economic_investment_report_2023_2024_en.pdf.

(19)

Letta E., Much more than a market – Speed, Security, Solidarity: Empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens, April 2024, https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-letta.pdf.

(20)

European Commission, Opportunities and challenges of Artificial Intelligence Technologies for the Cultural and Creative Sectors, February 2022, https://op.europa.eu/en/publication-detail/-/publication/359880c1-a4dc-11ec-83e1-01aa75ed71a1/language-en.

(21)

A survey of over 16 000 citizens and 14 000 businesses found that 38% of companies were experimenting with AI, https://www.unlockingeuropesaipotential.com/executive-summary.

(22)

 https://www.aboutamazon.eu/news/job-creation-and-investment/ai-adoption-forecast-to-unleash-600-billion-growth-in-europes-economy.

(23)

McKinsey, The economic potential of generative AI: The next productivity frontier, 14 June 2023, https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-economic-potential-of-generative-ai-the-next-productivity-frontier#introduction and https://digital-strategy.ec.europa.eu/en/library/communication-boosting-startups-and-innovation-trustworthy-artificial-intelligence .

(24)

Commission Communication on boosting startups and innovation in trustworthy artificial intelligence, COM(2024) 28 final, https://digital-strategy.ec.europa.eu/en/library/communication-boosting-startups-and-innovation-trustworthy-artificial-intelligence.

(25)

 Special Eurobarometer 551 ‘The Digital Decade’ 2024: .

(26)

  https://www.oecd-ilibrary.org/science-and-technology/consumer-vulnerability-in-the-digital-age_4d013cc5-en .

(27)

Edelman R., Technology Industry Watch Out: Innovation at Risk, March 2024, https://www.edelman.com/insights/technology-industry-watch-out-innovation-risk.

(28)

 The EU in 2023: General report on the activities of the European Union, https://op.europa.eu/en/publication-detail/-/publication/ea6b0987-dd66-11ee-b9d9-01aa75ed71a1 .

(29)

World Economic Forum, Global Risks Report 2024, https://www.weforum.org/publications/global-risks-report-2024/.

(30)

  https://www.newsguardtech.com/special-reports/ai-tracking-center/ ; https://www.washingtonpost.com/technology/2023/12/17/ai-fake-news-misinformation/.

(31)

See notably https://www.economist.com/technology-quarterly/2024/03/27/artificial-intelligence-has-long-been-improving-diagnoses .

(32)

  https://ec.europa.eu/commission/presscorner/detail/en/ip_24_926 ; In December 2023, the European Parliament adopted an initiative report which stressed the significant impact of addictive design on all individuals, but especially on children and adolescents.

(33)

PISA 2023. Insights and interpretations How smart phones and tablets can impact learning. December 2023.

(34)

Commission Communication Long-term competitiveness of the EU: looking beyond 2030 , COM(2023) 168 final: https://commission.europa.eu/system/files/2023-03/Communication_Long-term-competitiveness.pdf .

(35)

Research estimates that digitization and other technological advances could add 0.5 to 1.0 percent to annual productivity growth. MGI, March 2021.

(36)

Statista, ICT global market share worldwide 2023 , https://www.statista.com/statistics/263801/global-market-share-held-by-selected-countries-in-the-ict-market/ .

(37)

Centre on Regulation in Europe (CERRE), Digital Industrial Policy for Europe , December 2022, p. 15, https://cerre.eu/publications/digital-industrial-policy-for-europe/.

(38)

Centre on Regulation in Europe (CERRE), Digital Industrial Policy for Europe , December 2022, p. 15, https://cerre.eu/publications/digital-industrial-policy-for-europe/.

(39)

  https://companiesmarketcap.com/tech/largest-tech-companies-by-market-cap/ .

(40)

Horizon Europe strategic plan 2025-2027 analysis, p. 52 – 55, https://op.europa.eu/en/publication-detail/-/publication/b3baec75-fdd0-11ed-a05c-01aa75ed71a1/language-en/format-PDF/source-287596143.

(41)

 Commission Communication ‘A new ERA for Research and Innovation’, COM/2020/628 final: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2020:628:FIN.

(42)

 Based on the latest available data from 2022 ( https://ec.europa.eu/eurostat/statistics- explained/index.php?title=R%26D_expenditure&oldid=627002#Gross_domestic_expenditure_on_R.26D ) , R&I investment stood at 2.2% of EU GD{. This level is well below that of the US (3.4%) and slightly below China’s (2.4%), reflecting a particularly low level of investment in the private sector.

(43)

  https://www.statista.com/statistics/732308/worldwide-research-and-development-information-communication-technology./ ;  https://www.statista.com/statistics/732308/worldwide-research-and-development-information-communication-technology./ .  

(44)

Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013.

(45)

  Proposal for a Council Recommendation on enhancing research security, COM(2024) 24 final:  https://research-and-innovation.ec.europa.eu/system/files/2024-01/ec_rtd_council-recommendation-research-security.pdf .

(46)

Commission Recommendation (EU) 2021/1700 of 15 September 2021 on internal compliance programmes for controls of research involving dual-use items under Regulation (EU) 2021/821 of the European Parliament and of the Council setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items.

(47)

https://europa.eu/newsroom/ecpc-failover/pdf/ip-24-363_en.pdf.

(48)

https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14060-RD-on-dual-use-technologies-options-for-support_en.

(49)

Recommendations in this report build on those issued with the first report on the State of the Digital Decade, considering the progress made where possible and acknowledging the short time elapsed between last year’s recommendations (end of September) and the submission of Member States’ national roadmaps. In many cases, the recommendations of the first report on the State of the Digital Decade are reiterated in the present report, either with same scope, or with a partly different focus and level of detail. This is valid for all recommendations issued in the present report.

(50)

Council Recommendation (EU) 2021/2122 of 26 November 2021 on a Pact for Research and Innovation in Europe, OJ L 431, 2.12.2021, p. 1–9.

(51)

 Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828 (Digital Markets Act), OJ L 265, 12.10.2022, p. 1–66, http://data.europa.eu/eli/reg/2022/1925/oj.

(52)

 Lagarde, C. A Kantian shift for the capital markets union, speech at the European Banking Congress, Frankfurt am Main, 17 November 2023, https://www.ecb.europa.eu/press/key/date/2023/html/ecb.sp231117~88389f194b.en.html , following Commission Communication ‘ A Capital Markets Union Action Plan for people and businesses-new action plan’, COM(2020) 590 final: https://eur-lex.europa.eu/resource.html?uri=cellar:61042990-fe46-11ea-b44f-01aa75ed71a1.0001.02/DOC_1&format=PDF .

(53)

 Special Eurobarometer 551 ‘The Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351 . In this document, the study is referred to as ‘Eurobarometer 2024’.

(54)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4.

(55)

 Visionary Analytics, International benchmarking of the digital transformation, March 2024.

(56)

Source: Communications Committee (COCOM).

(57)

Share of fibre subscriptions in total fixed broadband in 2022, source: OECD.

(58)

 Based on the Commission Implementing Decision of 30.06.2023 setting out key performance indicators to measure the progress towards the digital targets established by Article 4(1) of Decision (EU) 2022/2481 of the European Parliament and of the Council:

- Gigabit connectivity is measured as the percentage of households covered by fixed Very High-Capacity Networks (VHCN). The technologies considered are those currently able to deliver gigabit connectivity, namely Fibre to the Premises and Cable DOCSIS 3.1. The evolution of the Fibre to the Premises coverage will also be monitored separately and taken into consideration when interpreting VHCN coverage data.

- 5G coverage is measured as the percentage of populated areas covered by at least one 5G network regardless of the spectrum band used.

(59)

  European Commission, White Paper - How to master Europe’s digital infrastructure needs?, February 2024, https://digital-strategy.ec.europa.eu/en/library/white-paper-how-master-europes-digital-infrastructure-needs.

(60)

  WIK Consult, Investment and funding needs for the Digital Decade connectivity targets, July 2023, https://digital-strategy.ec.europa.eu/en/library/investment-and-funding-needs-digital-decade-connectivity-targets

(61)

 Commission Recommendation (EU) 2024/779 of 26 February 2024 on Secure and Resilient Submarine Cable Infrastructures, C/2024/1181, OJ L, 2024/779, 8.3.2024.

(62)

McKinsey, Exploring new regions: The greenfield opportunity in semiconductors, January 2024, https://www.mckinsey.com/industries/semiconductors/our-insights/exploring-new-regions-the-greenfield-opportunity-in-semiconductors.

(63)

  https://www.idc.com/about/ .

(64)

The edge node trajectory is based on findings of the Edge Observatory study (https://digital-strategy.ec.europa.eu/en/policies/edge-observatory)

(65)

  https://digital-strategy.ec.europa.eu/en/policies/edge-observatory and IDC Worldwide Edge Spending Guide, https://www.idc.com/getdoc.jsp?containerId=IDC_P39947.

(66)

Joint Communication on a European Economic Security Strategy, JOIN/2023/20 final, https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=JOIN:2023:20:FIN.

(67)

Recommendation (EU) 2023/2113 of 3 October 2023 on critical technology areas for the EU’s economic security for further risk assessment with Member States, C(2023) 6689 final, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202302113.

(68)

https://www.hpcqs.eu.

(69)

 Study ‘International Benchmarking of the Digital Transformation 2024’: https://digital-strategy.ec.europa.eu/en/news-redirect/833343 .

(70)

 European Declaration on Quantum Technologies, https://digital-strategy.ec.europa.eu/en/library/european-declaration-quantum-technologies .  

(71)

 Anderton, R., Botelho, V. and Reimers, P. (2023), Digitalisation and productivity: gamechanger or sideshow ?, Working Paper Series, No 2794, ECB, March 2023.

(72)

Commission Communication establishing the Union-level projected trajectories for the digital targets, C (2023) 7500: https://digital-strategy.ec.europa.eu/en/library/communication-establishing-union-level-projected-trajectories-digital-targets.

(73)

Sinergy Research Group, European Cloud Providers Double in Size but Lose Market Share, 27 September 2022: https://www.srgresearch.com/articles/european-cloud-providers-continue-to-grow-but-still-lose-market-share.

(74)

Statista, Cloud Computing in Europe – statistics and facts, https://www.statista.com/topics/8472/cloud-computing-in-europe/#topicOverview.

(75)

European Commission, Study on the Economic Detriment to Small and Medium-Sized Enterprises Arising from Unfair and Unbalanced Cloud Computing Contracts, November 2019, https://commission.europa.eu/publications/study-economic-detriment-small-and-medium-sized-enterprises-arising-unfair-and-unbalanced-cloud_en.It is to be noted that the Data Act, which will apply from 12 September 2025, sets minimum requirements for cloud contracts.

(76)

  https://pitchbook.com/news/reports/2023-annual-european-venture-report ; World Economic Forum, Global Risks Report 2024, https://www.weforum.org/publications/global-risks-report-2024 , p. 50 on AI.

(77)

  https://www.orrick.com/en/Insights/2024/03/Deal-Flow-4-5-Things-We-Learned-About-European-Tech-Deal-Terms-in-2023 ; https://pitchbook.com/news/reports/2023-annual-european-venture-report .  

(78)

European Data Market Study (Update October 2023).

(79)

Regulation (EU) 2022/868 of the European Parliament and of the Council of 30 May 2022 on European data governance and amending Regulation (EU) 2018/1724 (Data Governance Act)., OJ L 152, 3.6.2022, p. 1–44, http://data.europa.eu/eli/reg/2022/868/oj.

(80)

  Regulation (EU) 2023/2854 of the European Parliament and of the Council of 13 December 2023 on harmonised rules on fair access to and use of data and amending Regulation (EU) 2017/2394 and Directive (EU) 2020/1828 (Data Act), OJ L 2023/2854, 22.12.2023, http://data.europa.eu/eli/reg/2023/2854/oj .

(81)

European Investment Bank, EIB Investment Survey 2019-2022.

(82)

 SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325 .

(83)

The Dealroom platform regularly updates the number of unicorns. The number of unicorns in the EU on 29.01.2024 was 263, as downloaded from Dealroom. The UK was excluded from the statistics.

(84)

Today more than 90% of the worldwide venture capital investment in AI, which shot up from EUR 2.7 billion in 2022 to EUR 24 billion in 202338, is done in the United States. Attracting investment in European AI startups is crucial for accelerating the deployment of advanced AI solutions.

(85)

 See Article 3(1)(k) of Decision (EU) 2022/2481 of the European Parliament and of the Council of 14 December 2022 establishing the Digital Decade Policy Programme, OJ L 323, 19.12.2022, p. 4 (‘Digital Decade Decision’).

(86)

See recital 20 of the Digital Decade Decision.

(87)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4.

(88)

ENISA, ENISA Threat Landscape 2023, https://www.enisa.europa.eu/publications/enisa-threat-landscape-2023. 

(89)

 ENISA, ENISA Threat Landscape 2023,  https://www.enisa.europa.eu/publications/enisa-threat-landscape-2023 . 

(90)

Commission Communication ‘Implementation of the 5G cybersecurity Toolbox’, C (2023) 4049 final, https://digital-strategy.ec.europa.eu/en/library/communication-commission-implementation-5g-cybersecurity-toolbox.

(91)

Commission Implementing Regulation laying down rules for the application of Regulation (EU) 2019/881 of the European Parliament and of the Council as regards the adoption of the European Common Criteria-based cybersecurity certification scheme (EUCC), C (2024) 560, https://digital-strategy.ec.europa.eu/en/library/implementing-regulation-adoption-european-common-criteria-based-cybersecurity-certification-scheme.

(92)

Political agreement on Cyber Resilience Act, https://ec.europa.eu/commission/presscorner/detail/en/ip_23_6168.

(93)

Directive (EU) 2022/2555 of the European Parliament and of the Council of 14 December 2022 on measures for a high common level of cybersecurity across the Union, amending Regulation (EU) No 910/2014 and Directive (EU) 2018/1972, and repealing Directive (EU) 2016/1148, OJ L 333, 27.12.2022, p. 80–152, http://data.europa.eu/eli/dir/2022/2555/2022-12-27 (consolidated text).

(94)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4.

(95)

Mazzoni et al., ‘Implications of the Digital Transformation on Different Social Groups’, EP studies, March 2024, https://www.europarl.europa.eu/RegData/etudes/STUD/2024/760277/IPOL_STU(2024)760277_EN.pdf.

(96)

  Council Recommendation of 12 March 2021 on Roma equality, inclusion and participation  2021/C 93/01, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ%3AJOC_2021_093_R_0001.

(97)

Under which about EUR 2 billion have been programmed so far exclusively for the support do digital skills, beyond other more general measures that may also involve the development of digital skills through for example the modernisation of education and training systems or the delivery of active labour market policies.

(98)

 The actions mentioned above are coupled with a number of additional initiatives, spanning from 2019 to 2024, either directly focusing on digital skills or encompassing digital skills as part of broader efforts to enhance skills development. Examples include: Digital Skills and Jobs Coalition and its National Coalitions, the Digital Skills and Jobs Platform , the European Digital Skills Awards , the Pact for Skills , Centres of Vocational Excellence and the EU Code Week.

(99)

 In terms of number of measures implemented. See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4.

(100)

Commission Communication ‘Digital Education Action Plan 2021-2027 Resetting education and training for the digital age’, COM/2020/624 final, 2020 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52020DC0624.

(101)

Eurostat, ad hoc elaboration on Labour Force Survey data.

(102)

Eurostat, isoc_ske_itrcrs.

(103)

For example, medical doctors who are increasingly relying on advanced digital technologies to provide more accurate diagnoses, or sector specialists needed to unlock the potential of innovative digital solutions in the green transition.

(104)

https://digital-skills-jobs.europa.eu/en/latest/news/brave-new-world-oecds-2023-skills-outlook-new-approach-skills .

(105)

  https://advancedskills.eu/wp-content/uploads/2023/10/D2.2_LEADS_GAP_ANALYSIS_v1.0.pdf .

(106)

Eurostat, educ_uoe_grad02, https://ec.europa.eu/eurostat/databrowser/view/EDUC_UOE_GRAD02__custom_5451972/bookmark/table?lang=en&bookmarkId=2b0446a9-c20a-4e43-a024-8a75c5afa79e .

(107)

  https://data.consilium.europa.eu/doc/document/ST-15740-2023-INIT/en/pdf .  

(108)

Or equivalents at ISCED levels 6-8.

(109)

  https://migrant-integration.ec.europa.eu/news/european-commission-adopts-skills-and-talent-mobility-package_en .

(110)

 Proposal for a Regulation of the European Parliament and of the Council Establishing an EU Talent Pool, COM/2023/716 final,  https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2023%3A716%3AFIN .

(111)

 Directive (EU) 2021/1883 of the European Parliament and of the Council of 20 October 2021 on the conditions of entry and residence of third-country nationals for the purpose of highly qualified employment, and repealing Council Directive 2009/50/EC, OJ L 382, 28.10.2021, p. 1–38, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32021L1883 .

(112)

The target of 20 million ICT specialists in the EU corresponds to about 10% of employed people in each Member State.

(113)

Eurostat, Use of electronic identification (eID), isoc_eid_ieid.

(114)

 In terms of initiatives implemented. See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4.

(115)

Cross- border availability remains limited for digital public services for citizens and for businesses, both reaching a score of around 70 points out of 100 (Source: eGovernment Benchmark, Capgemini).

(116)

JRC report ‘Mapping EU level funding instruments 2020-2027 to Digital Decade targets - 2024 update’ (Signorelli et al., 2024). This amount increases to EUR 49.5 billion if all measures under the ‘e-government services’ intervention field, according to the methodology of Annex VII of the RRF Regulation, are considered.

(117)

Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 establishing a single digital gateway to provide access to information, to procedures and to assistance and problem-solving services and amending Regulation (EU) No 1024/2012, OJ L 295, 21.11.2018, p. 1–38, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.295.01.0001.01.ENG.

(118)

 Regulation (EU) 2024/903 of the European Parliament and of the Council of 13 March 2024 laying down measures for a high level of public sector interoperability across the Union (Interoperable Europe Act) OJ L, 2024/903, 22.3.2024, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32024R0903. Mandatory interoperability assessments, collaborative efforts to develop interoperability solutions through GovTech partnerships and participation in interoperability sandboxes, and the proactive enhancement of interoperability skills within the public sector are just a few examples of the multifaceted strategy envisioned by the Act.

(119)

As part of efforts to reduce burdens for businesses and administrations, the Commission has committed in its long-term strategy for competitiveness published in March 2023 to rationalise reporting obligations and reduce such burdens by 25%, without undermining the related policy objectives.

(120)

Notably reflected in the Council Recommendation of 8 December 2022 on access to affordable high-quality long-term care, 2022/C 476/01, calling for rolling out accessible technology and digital solutions to support autonomy and independent living.

(121)

The score is calculated on the basis of the indicators that capture the following dimensions: 1. the nationwide availability of online access to electronic health data; 2. the categories of accessible health data; 3. the availability of authentication schemes, type of front-end solutions and coverage; 4. accessibility for certain categories of people, like vulnerable groups.

(122)

See European Parliament resolution of 5 July 2022 on mental health in the digital world of work and Commission Communication on a comprehensive approach to mental health, COM(2023) 298 final, https://health.ec.europa.eu/publications/comprehensive-approach-mental-health_en . Regarding risks for children and adolescents, see also https://www.hhs.gov/surgeongeneral/priorities/youth-mental-health/social-media/index.html#:~:text=Children%20and%20adolescents%20who%20spend,symptoms%20of%20depression%20and%20anxiety.and SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , section 4.2.1.

(123)

See Article 3(1)(a) Digital Decade Decision.

(124)

Eurostat, Individuals - encountering hostile or degrading online messages ( isoc_ci_hm ).

(125)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4.

(126)

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Top

Brussels, 2.7.2024

COM(2024) 260 final

ANNEX

to the

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2024


Annex 2: Update of the EU-level projected trajectories for the digital targets

Contents

1.Introduction

1.1.EU projected trajectories by digital target

1.1.1.Basic digital skills

1.1.2.ICT specialists (and gender gap in ICT)

1.1.3.Connectivity

1.1.4.Semiconductors

1.1.5.Edge nodes

1.1.6.Quantum computing

1.1.7.Take-up of digital technologies

1.1.8.Basic level of digital intensity

1.1.9.Innovative businesses/scale-ups (unicorns)

1.1.10.Digitalisation of public services

1.1.11.Electronic health record

1.1.12.Electronic identification (eID)

2.Annex: bird’s eye view of the 2024 trajectories of the Digital Decade Policy Programme



List of Figures

Figure 1: At least basic digital skills in the EU. Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030    

Figure 2: Percentage of individuals aged 16-74 with at least basic skills in the EU by sex (from 2015 to 2023).    

Figure 3: ICT specialists in the EU. Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030    

Figure 4: Percentage of individuals employed in ICT specialists’ occupations in the EU by sex (2012-2023). The solid line shows the time trend since 2012. Left-hand side: percentage of women in total ICT specialists; right-hand side: percentage of men in total ICT specialists. The range of values is different in the two charts.    

Figure 5: Fixed VHCN coverage in the EU. Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030    

Figure 6: FTTP coverage in the EU. Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030    

Figure 7: Overall 5G roll-out in the EU, historical data and revised baseline trajectory towards 2030    

Figure 8: EU semiconductor value chain revenue and share versus the global market. Values are estimated as of 2023 (source International Data Corporation)    

Figure 9: Edge node deployment (EU projection to 2030). The edge node trajectory is based on findings of the Edge Observatory study (https://digital-strategy.ec.europa.eu/en/policies/edge-observatory)    

Figure 10: Number of quantum computers in the EU. Trajectory towards 2030    

Figure 11: Percentage of enterprises using cloud services in the EU. Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030     

Figure 12: Share of enterprises using Data analytics in the EU. Historical data, Digital Decade (DD) trajectory and baseline trajectory towards 2030    

Figure 13: Percentage of enterprises using AI in the EU. Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030 (same speed of diffusion parameter as in the big data baseline trajectory established in the 2023 Communication on EU-level trajectories)    

Figure 14: Percentage of enterprises using AI or cloud computing or data analytics in the EU. Historical data, Digital Decade (DD) trajectory and baseline trajectory towards 2030 (same speed of diffusion parameter as in cloud baseline trajectory)    

Figure 15: Digital Intensity Index ver. III. Historical comparable data and the Digital Decade (DD) trajectory towards 2030 based on DII ver III    

Figure 16: Number of unicorns in the EU. Historical data and baseline trajectory    

Figure 17: Online service provision for citizens (top chart) and businesses (bottom chart). Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030    

Figure 18: e-Health composite indicator. Historical data and DD trajectory    

 

List of TABLEs

Table 1: Summary table on state of play, progress, and gap analysis    

Table 2: Number of unicorns in the EU by year: annual net increase (births-deaths) and relative annual progress since 2009    

1.Introduction

This Communication accompanies and complements the Commission’s second report on the state of the Digital Decade. It updates the 2023 Communication of the Commission establishing the EU-level projected trajectories for the digital targets C (2023) 7500  1 , ‘2023 Communication on EU-level trajectories’) by taking into account the most recent data available for the key performance indicators (KPIs) set out in the Commission Implementing Decision 2 , adopted by the Commission on 30 June 2023 (‘KPI Implementing Decision’).

The availability of new data, collected in 2023, enabled the Commission to update the baseline trajectories, which are projections of the KPI yearly values estimated by extrapolating available historical data.

The baseline trajectories describe the ‘business as usual’ scenario because, being estimated on the basis of past observed data, they only capture past investments and interventions, both private and public. For each KPI, baseline trajectories are based on the longest, available set of comparable historical data and their starting point (baseline value) is always the most recent data point for that KPI.

The Commission uses baseline trajectories for illustrative purposes to assess and regularly monitor the gap between the estimated trend and the ideal trend for each KPI defined in the ‘KPI Implementing Decision’.

The baseline trajectory extrapolates historical trends towards a plausible future while considering solely the impact of all funding instruments, interventions, and investments – both private and public – put in place during and before the period that spans the KPI’s time series. For this reason, the 2030 value estimated along the baseline trajectory should be considered the conservative lower bound. The first year and value of the baseline trajectory always coincides with the year and value of the most recent data point available, which in this revision is 2023 for all the KPIs.

This Annex presents the baseline trajectories updated based on the latest observed data and trends. By including most recent data, the EU-level baseline trajectories dynamically capture the actual KPI path towards its 2030 target. In so doing, the baseline trajectories dynamically consider the impact of new investments, including the Recovery and Resilience Facility and cohesion policy funds, on the different KPIs.

The updated baseline trajectories are developed using the same methodology as the one adopted for the 2023 Communication establishing the EU-level projected trajectories for the digital targets.

The Digital Decade (DD) trajectories presented in this Annex are instead those established by the ‘2023 Communication on EU-level trajectories. They describe the theoretical path of progression of each KPI value from the last available historical data at the start of the DD monitoring process up to its 2030 target value. However, there are two exceptions: the DD trajectory for the level of digital intensity of businesses and the newly established trajectory for the combined KPI on take-up of cloud computing services or data analytics or artificial intelligence (AI) by enterprises, now available for the first time. These cases will be discussed in the remainder of this document.



Table   1 presents data on the current level and disparity (gap) between the estimated and ideal values of those KPIs for which historical data are available and trajectories are based on mathematical modelling rather than expert’s estimations. It includes information on the KPI's value in 2023, and an analysis of progress from 2023 to 2030. Specifically, the table includes: the current value of the KPI (the year of reference is 2023 for all the KPIs); the most recent annual progress rate, computed as the average annual progress between 2023 and the previous observed data point (the compound annual growth rate); the ideal annual progress rate necessary to reach the EU target; the difference between the observed and ideal annual progress rate; the 2023 estimated value along the baseline trajectory, which is the value the EU will reach without new policy interventions and associated investments; the gap between the estimated value along the baseline trajectory and the ideal value along the DD trajectory, measured as percentage of the ideal value, both in 2023 and 2030; and the gap between the estimated value along the baseline trajectory and the ideal one along the DD trajectory, measured as difference between the two, in 2023 and 2030.

The following sections provide a detailed explanation of the revision of the EU-level trajectories using the latest available data points for each KPI.


Table 1: Summary table on state of play, progress, and gap analysis

1.1.EU projected trajectories by digital target

The following subsections describe the construction of the revised EU-level baseline trajectories for each KPI in relation to each target. The KPI and target definitions are aligned with the KPI Implementing Decision and the ‘Decision’ respectively, more details in the DESI 2024 Methodological Note – State of the Digital Decade Report 2024’ 3 .

The trajectory estimation methodology is aligned with the one in the ‘2023 Communication on EU-level trajectories’  4 .

1.1.1.Basic digital skills

Target: A digitally skilled population and highly skilled digital professionals, with the aim of achieving gender balance, where (a) at least 80% of those aged 16-74 have at least basic digital skills; […]

KPI definition (referring to part (a) of the target): At least basic digital skills, measured as percentage of individuals aged between 16 and 74 years old disaggregated by sex with basic or above basic digital skills in each of the following five dimensions: information, communication, problem solving, digital content creation and safety skills. It is measured based on the activities that individuals carried out during the previous 3 months 5 ; and gender convergence, measured as the percentage of women and men among those individuals with basic or above basic digital skills.

Source: Eurostat, European Union survey on ICT usage in households and by individuals.

Available data points: 2015, 2016, 2017, 2019, 2021, 2023 (with a break in series in 2021).

2023 data values: 55.6%

Latest developments 

The baseline trajectory is based on the linear functional form. The assumption is that the indicator will follow a linear trend, with a constant growth rate until 2030. Between 2019 and 2021, a revision of the methodology to measure this indicator caused a break in the series. As in the ‘2023 Communication on EU-level trajectories ‘, the baseline trajectory is first estimated based on the historical time series until 2019 (included) and then adjusted to correct for the break in series. The adjustment for the break in series consists of computing the regression line’s intercept by imposing that the starting value of the baseline trajectory coincides with the latest observed data point.

Figure 1 shows the available historical data, and the Digital Decade and baseline trajectories of the KPI indicator. The recent trend shows that in 2023 the gap between the latest observed value and the ideal one along the Digital Decade trajectory is already at more than 4 percentage points. This indicates that the target will not be met without new policy interventions and associated investments as the 2030 forecast projected along the baseline trajectory is that 59.8% of people aged 16-74 would have at least basic digital skills, falling short by more than 20 points from the target.

Figure 1: At least basic digital skills in the EU. Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030

In 2023, only 55.6% of EU citizens had at least basic digital skills, up from 53.9% in 2021. In a couple of years, the EU has experienced a mere 1.5% annual progression, far below the necessary average annual growth of over 4.5% over a decade to meet the target. Recent trends underscore the urgent need for significant and immediate efforts to bridge the gap towards the 2030 target on at least basic digital skills.

There is no significant difference between sexes as regards share of people with at least basic digital skills but on average men tend to have better digital skills than women (see Figure 2 ). The gap between men and women (as a percentage) has been decreasing in recent years, with the difference between men and women having at least basic skills dropping from 5.6 points in 2015 to 2.2 points in 2023. 

Figure 2: Percentage of individuals aged 16-74 with at least basic skills in the EU by sex (from 2015 to 2023).

1.1.2.ICT specialists (and gender gap in ICT)

Target (same as previous): A digitally skilled population and highly skilled digital professionals, with the aim of achieving gender balance, where […] (b) at least 20 million ICT specialists are employed within the Union, while promoting the access of women to this field and increasing the number of ICT graduates.

KPI definition (referring to part (b) of the target): ICT specialists, measured as the number of individuals aged 15-74 who are employed as ICT specialists; and gender convergence, measured as the percentage of women and men among those individuals employed as ICT specialists. In accordance with the ISCO-08  6 code classification, ICT specialists are workers who have the ability to develop, operate and maintain ICT systems, and for whom ICT constitutes the main part of their job, including but not limited to ICT service managers, ICT professionals, ICT technicians, ICT installers and servicers. 

The gender gap in ICT specialists in employment is computed as the share of female ICT specialists in the total ICT specialists in employment. While the promotion of women’s access to this field is mentioned in the target, the Decision does not establish a specific and quantitative target for gender convergence. As a result, this part of the target is not treated as a separate KPI.

Source: Eurostat – Labour Force Survey.

Available data points: from 2011 to 2023.

2023 data values: Total ICT specialists = 9.79 million; share of female ICT specialists = 19.4%.

Context, assumptions, model functional form and latest developments 

The indicator to monitor this target refers to ICT specialists as ‘workers who have the ability to develop, operate and maintain ICT systems, and for whom ICT constitutes the main part of their job  7 .

The Digital Decade trajectory is the same as that published in the 2023 Communication on EU-level trajectories’ and is based on a linear functional form, assuming that the KPI follows an increasing trend with a constant rate over the whole period. Figure 3 illustrates the updated baseline trajectory that incorporates the 2023 data point. As anticipated in 2023, the EU remains significantly distant from achieving the target under the 'business as usual' scenario. In 2023, the EU employed just under 10 million ICT specialists, accounting for merely 4.8% of total employment. This already created a shortfall of 900 000 specialists compared to the value predicted in 2023 along the Digital Decade trajectory, with an expected deficit of 7.8 million by 2030 if no further investments are made.

The projected number of ICT specialists by 2030 along the baseline trajectory is 12.2 million, representing approximately 6% of total employment. Over the past year, the number of employed ICT specialists increased by 4.1%, rising from 9.40 to 9.79 million. However, this progress rate falls significantly short of the required annual increase of nearly 10% to achieve the target.

Figure 3: ICT specialists in the EU. Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030

In 2023, 19.4% of the total ICT specialists in employment was made up of women. In the past decade, the percentage of men steadily remained some 60 percentage points above the percentage of women, with the women’s percentage between 16.3% and 19.4% and the men’s between 80.6% and 83.7% ( Figure 4 ). Despite a small dip between 2013 and 2015, the percentage of women employed as ICT specialists has risen steadily albeit at a slow pace since 2012 ( Figure 4 , left). By contrast, the percentage of men employed as ICT specialists has decreased since its peak in 2014-2015 but remains significantly higher than the percentage of women in ICT occupations, more than four times higher ( Figure 4 , right).

Figure 4: Percentage of individuals employed in ICT specialists’ occupations in the EU by sex (2012-2023). The solid line shows the time trend since 2012. Left-hand side: percentage of women in total ICT specialists; right-hand side: percentage of men in total ICT specialists. The range of values is different in the two charts.

1.1.3.Connectivity 

Target: Secure, resilient, performant and sustainable digital infrastructures where all end users at a fixed location are covered by a gigabit network up to the network termination point, and all populated areas are covered by next-generation wireless high-speed networks with performance at least equivalent to that of 5G, in accordance with the principle of technological neutrality.

KPI definition:

·Gigabit connectivity, measured by the percentage of households covered by fixed Very High-Capacity Networks (VHCN). The technologies considered are those currently able to deliver gigabit connectivity, namely Fibre to the Premises (FTTP) and Cable DOCSIS  8 3.1. The evolution of the FTTP coverage will also be monitored separately and taken into consideration when interpreting VHCN coverage data. 

·5G coverage, measured as the percentage of populated areas covered by at least one 5G network regardless of the spectrum band used.

Source: Broadband coverage in Europe studies for the European Commission by Omdia and Point Topic  9 .

Available data points: Gigabit: from 2013 to 2023; 5G: from 2020 to 2023

2023 data values: VHCN = 78.8% in 2023; 5G coverage = 89.3% in 2023  10

Context, assumptions, model functional form and latest trends 

The availability of gigabit connectivity services and 5G mobile coverage are essential enablers of the digital transformation. Household behaviours and the uptake of new technologies such as virtual and augmented reality, AI applications, automated driving, logistics and manufacturing processes will further drive demand.

This target is related to two KPIs:

·Availability to all European households of fixed connections able to deliver very high-speed and reliable connectivity services (measured with the VHCN indicator). 

·Availability in all populated areas of a 5G mobile network regardless of the spectrum band used.

Gigabit: The VHCN trajectory is the reference one for tracking the gigabit target. Based on the KPI Implementing Decision, the VHCN trajectory is complemented by the FTTP one. In line with the ‘2023 Communication on EU-level trajectories’, the S-shaped trend is adopted for this KPI for both the Digital Decade and the baseline trajectory ( Figure 5 ), with the speed of diffusion of the VHCN baseline trajectory based on the FTTP historical data. Figure 5 shows the Digital Decade and the revised baseline trajectory for the fixed VHCN indicator.

Figure 5: Fixed VHCN coverage in the EU. Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030

Based on the current VHCN definition and available data, fixed VHCN having the capability of offering gigabit connectivity covered 78.8% of EU households in 2023, up from 73.4% a year earlier, and is expected to reach 94.7% by the end of the projection period. The gap with respect to the ideal, Digital Decade trajectory amounts to 6.4 percentage points in 2023 and is forecast to slightly decrease to 5.3 points along the ‘business as usual’ scenario by 2030 if no additional investments are made (94.7% is the 2030 forecast projected along the baseline trajectory). Since 2022, the percentage of households reached by fixed VHCN has increased by 7.4%. The recent development of this KPI has been driven by the deployment of optical fibre networks (FTTP), which covered 64% of EU households in 2023. The remaining 21% of households still not covered by VHCN will be reached mainly through further FTTP deployments, which will require sustained efforts considering that households still not reached by the network are likely to live in the more cost-intensive suburban, semi-rural and rural areas.

To track the progress of FTTP coverage, as outlined in the KPI Implementing Decision, and to better interpret VHCN coverage data, an EU-level trajectory is also established and monitored for this indicator ( Figure 6 ). Fibre covered 64.0% of EU households in 2023 and is expected to reach 89.5% by the end of the projection period along the ‘business as usual’ scenario. In one year, the percentage of households reached by fibre increased by 13.5%, from 56.4% in 2022 to 64% in 2023. The gap with respect to the ideal, Digital Decade trajectory was 10.8 percentage points in 2023 and is forecast to remain substantially stable by 2030 if no additional investments are made.

Figure 6: FTTP coverage in the EU. Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030

Overall 5G coverage: The mobile network connectivity target set out in Article 4(1), point (2)(a) of the Decision aims to ensure that all populated areas are covered by a next-generation wireless high-speed network with at least 5G equivalent performance in accordance with the principle of technology neutrality. The corresponding KPI included in the ‘KPI Implementing Decision’ measures the percentage of populated areas covered by at least one 5G network regardless of the spectrum band used (overall 5G coverage).

Based on the available data, 5G coverage progressed rapidly in the EU, reaching 89.3% in 2023, with four Member States reaching 100% and a few others being very close to it. The forecast along the revised baseline trajectory predicts that by 2025, close to 100% of populated areas in the EU will be covered by 5G networks overall. Since 2022, the 5G coverage has increased by almost 10% at the EU level (9.84%), growing from 81.3 to 89.3. No Digital Decade trajectory is displayed in Figure 7 .

However, it should be noted that the current KPI for the 5G target has methodological limits, as it does not take into account the quality of service provided under peak time conditions. In October 2023, the Commission proposed an update to the DD KPIs to members of the Digital Decade Group focusing specifically on connectivity and 5G. The update involves a two-stage approach. The first stage concentrates on the short term, to be used for the 2024 State of the Digital Decade report, and maintains the existing 5G indicator, which is based on population coverage across all available bands. The second stage, currently underway, entails the development of a methodology to map Quality of Service (QoS) coverage for wireless fixed and mobile broadband services, with a particular emphasis on 5G. This methodology draws from the Guidelines on Geographical surveys of network deployments by the Body of European Regulators for Electronic Communications (BEREC), as outlined in Article 22 of the European Electronic Communications Code, and the Mapping Annex of the EU Guidelines on State aid for Broadband. The overarching objective is to close any remaining gap and achieve a common and fully harmonised approach applicable to both policy (the Digital Decade Policy Programme), regulatory (the European Electronic Communications Code), and State aid contexts. This initiative aims to assist Member States in overcoming potential barriers faced by data collectors. The development of the methodology is expected to be concluded by the end of 2024 and will involve consultations with all the relevant authorities, as well as with representatives from the telecommunication industry.

Figure 7: Overall 5G roll-out in the EU, historical data and revised baseline trajectory towards 2030

1.1.4.Semiconductors 

Target: Secure, resilient, performant and sustainable digital infrastructures where the production, in accordance with Union law on environmental sustainability, of cutting-edge semiconductors in the Union is at least 20% of world production in value.

KPI definition: Semiconductors, measured as value generated, in terms of revenues, by semiconductor activities in the Union, in all stages of the value chain, with respect to the global market value. For the first year, reporting will be done on the basis of those activities in Europe.

Source: Study in progress by the International Data Corporation.

Available data points: from 2019 to 2022

2023 data value (estimate): 11% of the global market share by value

Semiconductors are at the centre of strong geostrategic interests and the global technology race. They are essential building blocks of digital and digitised products. From smartphones and cars through to critical applications and infrastructure for healthcare, energy, defence, communications and industrial automation, chips are central to the modern digital economy.

The Digital Decade sets the target that the EU’s market share for cutting-edge semiconductors should reach 20% of the global revenue by 2030.

Figure 8 shows the historical observed values from 2019 to 2022 and the forecast values from 2023 up to 2030, provided by the IDC’s study  11 . Green bars indicate the EU semiconductor value chain revenue, and the black line indicates the relevant share versus the global market. The EU27 semiconductor value chain market share in 2022 was EUR 90 billion or 9.8% of global value chain revenues. From 2022 to 2023, revenues in the EU declined by 3% (from 90 to 87 billion euros), while global revenues fell by 14% (from 918 to 791 billion euros). This indicates that the EU market demonstrated relatively greater resilience.

The IDC estimates that the EU share will grow to 11.7% in 2030. The IDC considers the effect of existing policy interventions and investments, such as the investments triggered by the European Chips Act. However, their estimates are still subject to uncertainty in an evolving context of geopolitical and market context. Moreover, at this stage, cutting-edge semiconductors within the meaning of the relevant Digital Decade target are still not available on the market and significant investments are planned in the EU which will boost the manufacturing capability in Europe in the coming few years. Further data and analysis are therefore needed to estimate the EU trajectory.

Figure 8: EU semiconductor value chain revenue and share versus the global market. Values are estimated as of 2023 (source International Data Corporation)

As the digital transition accelerates, worldwide demand for chips will grow rapidly and is expected to exceed USD 1 trillion by 2030, essentially doubling its value over this decade. This means that the EU’s revenues in semiconductors should quadruple by 2030.

Thanks to the European Chips Act and the new relevant investments within the EU such as the Important Projects of Common European Interest, the EU aims to reach its target of doubling its current global market share to 20% in 2030.

1.1.5.Edge nodes

Target: Secure, resilient, performant and sustainable digital infrastructures where at least 10 000 climate-neutral highly secure edge nodes are deployed in the Union, distributed in a way that guarantees access to data services with low latency (i.e., a few milliseconds) wherever businesses are located.

KPI definition: Edge nodes, measured as the number of compute nodes providing latencies below 20 milliseconds; such as an individual server or other set of connected computing resources, operated as part of an edge computing infrastructure, typically residing within an edge data centre operating at the infrastructure edge, and therefore physically closer to its intended users than a cloud node in a centralised data centre.

Source: Edge Observatory 12

No available data points

2023 data value (estimate): 1186 in 2023.

Context, assumptions, model functional form and latest trends 

Edge computing enables the supply of data processing services from decentralised compute nodes and infrastructures at the network’s edge, minimising the transmission of unnecessary data over the network and improving cloud computing’s overall performance. The deployment of edge nodes supports the development of low-latency data processing services. When combined with a variety of technologies such as AI, machine learning, 5G deployment, sensors and the Internet of Things, data, virtual reality and robotics, the deployment of edge nodes has the potential to produce significant benefits to businesses and to support the advancement of the digital transformation of multiple sectors of the economy.

The deployment of highly secure and climate-neutral edge nodes is estimated to evolve into an S-curve of technology and innovation adoption, based on budget allocation and expenditure trends observed by the Edge Observatory for the market for edge IT infrastructure  13 .

The Edge Observatory for Digital Decade Monitoring Methodology  14 estimated that the edge node deployment baseline in 2022 was 499 units across the EU  15 . This assessment resulted from projections based on private budget allocation and spending for edge IT infrastructure rather than unit numbers, serving to estimate the deployment of edge nodes in future years. Concretely, the edge nodes baseline estimates are based on IDC assumptions and best knowledge about the potential number of public and private edge facilities in Europe, including existing edge infrastructure, devices and edge nodes that provide local computing and storage resources closer to where the data are generated.

The Edge Observatory for the Digital Decade 2023 Data Report completed its first data-gathering report in the summer of 2023. As part of this process, 300 respondents from European firms with over 50 employees in 10 Member States were interviewed: Czechia, Estonia, France, Germany, Italy, Netherlands, Poland, Romania, Spain, and Sweden, accounting a total of 30 respondents per surveyed Member State. The organisations surveyed comprised a wide range of company typologies, from 14% of organisations with 250 to 499 workers to 5% of companies with more than 1000 employees. The participants represent 37 different economic sectors of the EU economy.

The findings evidenced that edge computing is increasingly an investment area for European organisations. The growing need for edge computing installations has created a substantial market opportunity for technology suppliers, who are increasingly forming partnerships and alliances to deliver solutions. This is particularly the case for Industry 4.0 16 , making the most of the benefits edge offers in smart manufacturing settings.

In line with this trend, the Netherlands and the Czechia have made significant investments in edge computing cutting-edge technology, devoting 33% and 41% of their respective budgets to edge hardware. Spain, the Netherlands, and Italy are the three countries spending the most on edge software—32%, 37%, and 34% of their total investments, respectively. The noteworthy allocation of financial resources towards edge services in Estonia (71%) and Poland (66%) underscores the importance of services such as administration, maintenance, and support in the setup and functioning of edge nodes. Sweden and Romania offer a complete strategy that gives hardware, software, and services priority when allocating resources. This balanced investment plan shows that successful edge nodes deployment is complex, requiring the coordinated development and integration of all three components.

On edge node deployment, the Edge Observatory’s report indicates that, while there is widespread interest in edge computing, the transition from theoretical knowledge to actual implementation is gradual and country specific.

According to the Edge Observatory Data Report analysis, while there is general interest in edge computing, the move from theoretical understanding to practical implementation is gradual and varies by country. Organisations are tentatively exploring edge computing potential benefits through investigations and pilots but are seeking more clarity on business impacts and sustainability before proceeding to widespread deployment. The disparities in engagement levels may reflect regional differences in technological maturity, market readiness, and confidence in the edge computing model integration into existing and future business strategies. Only 12% of businesses have implemented edge deployment in production environments. It is important to note that all the analyses presented relate to the deployment of edge node technology in general and do not account for the nodes’ high level of security and climate neutrality, which are specified as part of the Digital Decade target for edge nodes. Regarding these two domains, the Edge Observatory’s findings indicate that there is a notable focus across enterprises in the area of data privacy and security, with a total of 67% acknowledging concerns. In contrast, just 5% of the organisations surveyed indicated that sustainability was part of edge node deployment priorities.

Furthermore, the Edge Observatory for the Digital Decade 17 has further refined the trajectory and distribution of edge nodes by Member State taking into account Member State surface area and factoring in several direct and indirect parameters to provide the projected estimation of edge node deployment until 2023. As direct parameters, it includes population, GDP, and Member State total technology spend  18 . In terms of indirect parameters, it considers GDP per capita, population density and the Member State edge propensity. This parameter is the result of the surveys conducted by this study and reflects the propensity of the surveyed industries in the Member State to invest in its own distributed edge computing infrastructures.

Figure 9: Edge node deployment (EU projection to 2030). The edge node trajectory is based on findings of the Edge Observatory study (https://digital-strategy.ec.europa.eu/en/policies/edge-observatory)

The second Edge Deployment Data Report 19  provides an international perspective by comparing the edge deployment status with other geographical areas outside the EU, including the United States, China, Japan, and South Korea, as well as a comparative assessment of their developments in the field of edge computing.

Following this, the edge deployment data monitoring process will continue to track the EU edge deployment progress by collecting data from a further 10 Member States in a continuous process until 2030.

1.1.6.Quantum computing 

Target: Secure, resilient, performant and sustainable digital infrastructures where the Union has, by 2025, its first computer with quantum acceleration, paving the way for the Union to be at the cutting edge of quantum capabilities by 2030.

KPI definition: Quantum computing, measured as the number of operational quantum computers or quantum simulators, including accelerators of High Performance Computing supercomputers, deployed and accessible to the user communities.

Source: Quantum Flagship study  20

Available data points: 2022 and 2023

2023 data point: 0

The starting value for this KPI is 0 in 2022 and remained the same in 2023, as the trajectory (Figure 10). It is expected that at least one operational quantum computer will be deployed by 2024, ahead of the target timeline, followed by a second in 2027 and at least three by 2030. Due to the specificity of this target, no baseline trajectory is established.

Figure 10: Number of quantum computers in the EU. Trajectory towards 2030

Note: The quantum computing trajectory is based solely on an assessment by experts (same as in the ‘2023 Communication on EU-level trajectories’).

1.1.7.Take-up of digital technologies

Target: The digital transformation of businesses, where at least 75% of Union enterprises have taken up one or more of the following, in line with their business operations: (i) cloud computing services; (ii) big data; (iii) artificial intelligence.

KPI definition  21 :

(I)Cloud computing, measured as the percentage of enterprises using at least one of the following cloud computing services: finance or accounting software applications, enterprise resource planning (ERP) software applications, customer relationship management (CRM) software applications, security software applications, hosting the enterprise’s database(s), and computing platform providing a hosted environment for application development, testing or deployment.

(II)Big data, measured as the percentage of enterprises analysing big data from any data source (internal or external). As of the 2024 report, big data will be measured by the percentage of enterprises performing data analytics (internally or externally).

(III)Artificial intelligence, measured as the percentage of enterprises using at least one artificial intelligence technology. 

Source: Eurostat – European Union survey on ICT usage and e-commerce in enterprises.

Available data points: Cloud: 2014, 2016, 2018, 2020, 2021 and 2023 (break in series in 2021); Data analytics (Big data before 2023): 2016, 2018, 2020 and 2023 (break in series in 2023); AI: 2021 and 2023.

2023 data values: Cloud computing = 38.9%; Data analytics = 33.2%; AI = 8%, AI or Cloud or Data analytics = 54.6%

Latest developments

This target refers to the uptake by EU enterprises of three different digital technologies that play a key role in supporting competitiveness, improving the ability to store, extract and process data, improving services and products or creating new ones. The measurement of the target is supported by four indicators that look at the share of EU enterprises which:

·Use sophisticated or intermediate cloud computing services.

·Use Data analytics, which refers to the use of technologies, techniques or software tools for analysing data to extract patterns, trends and insights to make conclusions, and predictions and ensure better decision-making with the aim of improving performance (e.g., increase production, reduce costs). Data may be extracted from your own enterprise’ data source or from external sources (e.g., suppliers, customers, government).

·Use at least one artificial intelligence (AI) technology, such as (1) text mining, (2) speech recognition, (3) natural language generation, (4) image recognition and processing, (5) machine learning (e.g., deep learning) for data analysis, (6) AI based software robotic process automation, (7) autonomous robots, self-driving vehicles, autonomous drones.

·Use Artificial Intelligence or Cloud computing services or Data analytics. This indicator, calculated in 2023, is line with the take-up of digital technologies target.

The corresponding trajectories are described below.

Cloud:

Figure 11 shows the Digital Decade trajectory and the revised baseline trajectory for the percentage of enterprises using sophisticated or intermediate cloud services. In 2023 slightly less than 40% of enterprises used cloud computing services, with a gap of 8.4 percentage points with respect to the ideal, Digital Decade trajectory. This gap is forecast to slightly increase to more than 10 points along the ‘business as usual’ scenario by 2030 if no additional investments are implemented (64.4% is the 2030 forecast projected along the baseline trajectory). 

Since 2021, the percentage of enterprises using cloud computing services progressed by 4.9 percentage points, from 34.0% to 38.9%, corresponding to an annual progress of almost 7%. Such a rate of progress remains slightly below the necessary annual progress of over 9% over a decade to meet the target.

The 2030 forecast projected value along the baseline trajectory is 64.4%.

Figure 11: Percentage of enterprises using cloud services in the EU. Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030  22

Data analytics (former Big data):

Figure 12 shows the newly established Digital Decade and baseline trajectories for the percentage of enterprises using data analytics. The change in the indicator in 2023, from use of big data to use of data analytics  23 , implied that a new digital decade trajectory was established for data analytics with baseline value 33.2% in 2023 ( Figure 12 ). The speed of diffusion of the baseline trajectory is estimated on the basis of the historical data points available for the big data indicator, indicated by the red dots in Figure 12 . The timing of diffusion depends on the 2023 baseline value of the data analytics indicator.

The estimated 2030 value in the ‘business as usual’ scenario the 2030 forecast projected along the baseline trajectory is 50.3%, 25 points below the 2030 target.

Figure 12: Share of enterprises using Data analytics in the EU. Historical data, Digital Decade (DD) trajectory and baseline trajectory towards 2030

Artificial intelligence: With only two available data points for AI adoption, the baseline trajectory for AI uses the same speed of diffusion parameter as that estimated for the big data baseline trajectory established in the Communication on EU-level trajectories. As for all the other KPIs, the timing of diffusion is instead computed by imposing that the baseline trajectory starting point coincides with the 2023 observed data point.

Figure 13 shows the Digital Decade and revised baseline trajectories for the percentage of firms using AI. The percentage of enterprises using AI increased by a mere 0.4 percentage point in 2 years, from 7.6% in 2021 24 to 8.0% in 2023. The gap between the observed and ideal value is above 11 percentage points in 2023 and is estimated to increase to almost 60 points by 2030 in the ‘business as usual’ scenario. Less than 17% of enterprises are expected to take-up AI by 2030 if no further action is taken (16.8% is the 2030 forecast projected along the baseline trajectory).

From 2021 to 2023, the percentage of enterprises utilising AI saw little change, increasing slightly to 8% in 2023 from 7.6% in 2021  25 . This corresponds to a modest annual advancement of merely 2.6%. This pace of growth falls significantly short of the nearly 30% annual progress required to reach the 2030 target. The 2030 forecast projected value along the baseline trajectory is 16.8%.

Figure 13: Percentage of enterprises using AI in the EU. Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030 (same speed of diffusion parameter as in the big data baseline trajectory established in the 2023 Communication on EU-level trajectories)

Artificial intelligence or Cloud computing services or Data analytics: In 2023, all three indicators artificial intelligence, cloud computing services or data analytics were collected. It was therefore possible to measure the take-up of the digital technologies target as the percentage of enterprises having taken up one or more of the three technologies. In 2023, 54.6% of enterprises in the EU used at least one of the technologies. By definition, a higher number of enterprises fulfil the requirement of this KPI’s definition than in the separate take-up of digital technologies KPIs.

The S-shaped functional form is employed for this KPI as well. In the absence of historical data for this KPI, the speed of diffusion of cloud technology take-up is used here, while the timing of diffusion depends on the 2023 observed value for this KPI. The forecast 2030 value along the ‘business as usual’ trajectory is 72.3%, not far from the 75% EU target.



Figure 14: Percentage of enterprises using AI or cloud computing or data analytics in the EU. Historical data, Digital Decade (DD) trajectory and baseline trajectory towards 2030 (same speed of diffusion parameter as in cloud baseline trajectory)

Overall, it can be observed that the adoption of digital technologies by enterprises remains uneven. It varies depending on the technology used, with sharp differences among Member States and economic sectors. The use of cloud computing services experienced some progress in recent years, reaching almost 39% of enterprises in the EU in 2023. The uptake of data analytics is also relatively high, at 33.2% in 2023. The uptake of AI technologies remains much more limited, used by only 8% of EU enterprises and stable in the past couple of years.

The new indicator take-up of AI or cloud or data analytics, that was available for the first time in 2023 and reflects the KPI of this target, had a higher value that the indicators referring to the three separate technologies, almost 55%. The lack of historical data does not allow for a precise estimate of the level of progress for the next few years to 2030. Assuming similar progress as for cloud computing, one can deduce that the EU as a whole will not be far from the 2030 target. However, the cloud indicator is the one showing the highest rate of progress in the past while the evolution of data analytics and especially AI is much slower and could also slow down the evolution of the combined indicator (AI or cloud or data analytics).

Reaching the Digital Decade targets will require substantial efforts by Member States through comprehensive and integrated policies aimed at boosting uptake and addressing obstacles that hinder progress (including the lack of specialised skills and technical expertise, obstacles to the use of data). Without additional targeted actions, the uptake of data analytics and AI in particular will fall significantly short of the 2030 targets.

1.1.8.Basic level of digital intensity

Target: The digital transformation of businesses, where more than 90% of the Union SMEs reach at least a basic level of digital intensity  26 .

KPI definition: SMEs with at least a basic level of digital intensity, measured as the percentage of SMEs using at least 4 of 12 selected digital technologies.

Source: Eurostat European Union survey on ICT usage and e-commerce in enterprises (code: ISOC_E_DII  27 . As from 2021, two different versions of this indicator are measured every second year: DII ver. III measured on 2021 and 2023; DII ver. IV measured in 2022. It is aimed to keep the DII ver. III stable from 2026 onwards.

Available data points: from 2015 to 2023. Break in series every year except 2023 and 2021.

2023 data value: 57.7%

Context, assumptions, model functional form and latest developments

‘Digital intensity’ is an aggregate value based on the number of technologies a business uses, against a scoreboard of various technologies, in line with the Digital Economy and Society Index. This target refers to a wide uptake of digital technologies among the EU’s SMEs  28 , the businesses that employed almost two thirds of the active population in the EU’s non-financial economy in 2020.

Digital Intensity is measured via the Digital Intensity Index (DII), which measures how many of 12 selected technologies are used by firms. A basic level of digital intensity means that an enterprise uses at least 4 of the 12 selected digital technologies.

Every year, the index covers a broad range of technologies, from basic to more sophisticated ones, and aims to measure the level of digitalisation of SMEs in the EU. The 2023 survey included the following 12 technologies and/or criteria (source Eurostat): Enterprises where more than 50% of the persons employed used computers with access to the internet for business purposes; Have ERP software package to share information between different functional areas; The maximum contracted download speed of the fastest fixed line internet connection is at least 30 Mb/s; Enterprises where web sales were more than 1% of the total turnover and B2C web sales more than 10% of the web sales; Data analytics for the enterprise is performed by the enterprise's own employees or by an external provider; Use any social media; Have customer relationship management (CRM) software; Buy sophisticated or intermediate cloud computing services; Use any AI technology; Buy cloud computing services used over the internet; Used any computer networks for sales (at least 1%); Use two or more social media 29 .

Having a flexible definition enables the indicator to be adapted to technological change and develop, as skills or technologies that are considered advanced today might become basic in the future.

The availability of two comparable data points, 2021 and 2023, allowed the Commission to estimate a new Digital Decade trajectory with baseline value in 2021 and a baseline trajectory based on DII ver. III.

The Digital Decade trajectory is based on a linear functional form as the assumption is that the KPI will follow an increasing trend from 2021, reaching the target in 2030 (Figure 14).

Figure 15: Digital Intensity Index ver. III. Historical comparable data and the Digital Decade (DD) trajectory towards 2030 based on DII ver III

From 2021 to 2023, the percentage of enterprises with at least basic levels of digital intensity slightly increased to 57.7% from 54.8% in 2021. This corresponds to a modest annual advancement of 2.6%, that is less than half the pace of growth required to reach the 2030 target (5.7% in the decade 2021-2030). The 2030 forecast’s value along the baseline trajectory is 67.9%.

1.1.9.Innovative businesses/scale-ups (unicorns)

Target: The digital transformation of businesses, where the Union facilitates the growth of its innovative scale-ups and improves their access to finance, leading to at least doubling the number of unicorns.

KPI definition: Unicorns are measured as the sum of unicorns referred to in Article 2, point (11)(a), of the Decision and those referred to in Article 2, point (11)(b), of that Decision.

Source: Dealroom platform 30 .

Available data points: from 2008 to 2023.

2023 data value 31 : 263

The 2030 target for this KPI requires a definition of the reference data point. This Communication takes the number of unicorns recorded in 2022 in the EU (249) as the reference point and considers 500 as the 2030 target. Assuming an equally spread effort, the country-level 2030 target should be at least twice the total number of unicorns that were present in the country at the end of 2022 and published in 2023 DESI.

Newly released data shows that fewer unicorns were created in the EU in 2023 than any year since 2017 as valuations soften on start-ups. In 2023 there was a net increase of 14 start-ups with a valuation above USD 1 billion across the whole EU, down 82% from 2021’s high-water mark of +79 ( Table 2 ). The valuation boom that characterised COVID times in 2021 and 2022 has clearly come to a halt. The annual rate of progress in 2023 compared to 2022 is 5.6%, from 249 to 263, the lowest recorded since 2009. This slowdown is aligned with the global squeeze in private capital markets experienced throughout 2023 and is confirmed by the most recent quarterly EU data.

Data for Q1-2024 32 indicates that the increase in unicorns in the EU was relatively low in the first months of 2024, with only 6 new units recorded. This is in line with the growth seen in Q1-2023 (with 4 new unicorns) suggesting that the corner has not yet been turned. It also is in stark contrast with the growth in the corresponding periods of Q1 2021 and Q1 2022 (17 and 19 new unicorns in the EU respectively). In conclusion, the ‘birth rate’ of unicorns in the EU has significantly declined to pre-COVID levels.

Table 2: Number of unicorns in the EU by year: annual net increase (births-deaths) and relative annual progress since 2009

The baseline trajectory relies on the historical data of unicorns covering the period 2008-2023. The functional form chosen in this case is the exponential one  33 and fits well with the historical data ( Figure 16 ). In line with the ‘2023 Communication on EU-level trajectories’, no Digital Decade trajectory is shown in this case.

Figure 16: Number of unicorns in the EU. Historical data and baseline trajectory

Despite the clear slow-down in 2023, the exponential trend is still the most appropriate in capturing the historical trend, however, we do note that the most recent data point to a future trend that is more linear than exponential. According to the estimated baseline curve shown in Figure 16, it is expected that 500 unicorns will be reached well before 2030, i.e. by the end of 2025. The scenario excluding COVID years 2021 and 2022 from the estimation lead to very similar results. The effects of the slow-down in the creation of new unicorns both at the EU and global level are likely to be become evident in the next few years.



1.1.10.Digitalisation of public services 

Target: The digitalisation of public services, where there is 100% online accessible provision of key public services and, where relevant, it is possible for citizens and businesses in the Union to interact online with public administrations.

KPI definition:

-Citizens: Online provision of key public services for citizens, measured as the share of administrative steps that can be done fully online for major life events. The following life events are considered: moving; transport; starting a small claims procedure; family; career; studying; and health.

-Businesses: Online provision of key public services for businesses, measured as the share of administrative steps needed to start a business and conduct regular business operations, which can be done fully online.

Source: e-Government benchmark 34 .

Available data points: from 2013 to 2023 (break in series as of 2020).

2023 data value: Citizens = 79.4 (score 0-100); Businesses = 85.4 (score 0-100).

Latest developments

The two KPIs used for trajectory estimations are:

·For citizens, the target is monitored via the share of administrative steps that can be carried out online for major life events (moving; transport; starting a small claims procedure; family; career; studying; health) for citizens.

·For businesses, the target is monitored via the share of public services needed for starting a business and for conducting regular business operations that are available online for domestic as well as for foreign users.

The methodology used by the eGovernment benchmark was revised in 2020, leading to a break in the series for both indicators  35 . The availability of three, comparable data points after the break in series, allowed for estimation of the revised baseline trajectories fully on post-break in series data (2021, 2022 and 2023).

Historical data, the Digital Decade trajectory and the revised baseline trajectory are shown in Figure 17 (a) for the citizen KPI and Figure 17 (b) for the business KPI.

Figure 17: Online service provision for citizens (top chart) and businesses (bottom chart). Historical data, Digital Decade (DD) trajectory and revised baseline trajectory towards 2030

(a)Share of administrative steps that can be done online for major life events for citizens nationals and foreigners (0 = no steps can be done online; 100 = the whole process can be done online). Historical data, Digital Decade and baseline trajectory 

(b)Share of public services needed to start a business and conduct regular business operations that are available online for national and for foreign users (0 = no steps can be done online; 100 = the whole process can be done online). Historical data, Digital Decade and baseline trajectory

The score on the provision of key digital public services to citizens increased in one year by 3.2%, from 77.0/100 to 79.4/100. The recent rate of progress is slightly below the necessary average annual growth of 3.3% over a decade to meet the target assuming a linear trend. In 2023 the gap between the latest observed value and the ideal value along the Digital Decade trajectory is 7.8 points and it is forecast to increase to 9.8 points in 2030. This indicates that the current trend will fall short of the target.

A similar pattern is observed for the provision of key public services for businesses that increased by 2% in one year, from 83.7/100 to 85.4/100. The estimated gaps from the ideal path in 2023 and 2030 are more limited than in the services for citizens case, respectively at 5.4 and 6.2 percentage points.

It should be noted that these KPIs are both at the upper end of the ‘technology deployment’ curve, at least at the EU level. This describes a situation where public services websites become more mature and of better quality, while incremental improvements become more and more challenging.

The 2030 forecast projected value along the baseline trajectory is 90.9/100 for the citizen indicator and 93.8/100 for the business indicator.

1.1.11.Electronic health record 

Target: The digitalisation of public services, where 100% of Union citizens have access to their electronic health records.

KPI definition: Access to e-health records, measured as: (i) the nationwide availability of online access services for citizens to their electronic health records data (via a patient portal, or a patient mobile app) with additional measures in place that enable certain categories of people (e.g. guardians for children, people with disabilities, elderly) to also access their data, and (ii) the percentage of individuals that have the ability to obtain or make use of their own minimum set of health-related data currently stored in public and private electronic health-record (EHR) systems.

Source: Capgemini Invent 36

Available data points: 2022 and 2023 

2023 data value: 2023 = 79 (score 0-100)

The conceptual framework of the e-Health indicator is focused on the availability of electronic health data for European citizens and does not measure actual usage of online health data access services. The framework consists of four thematic dimensions, each including indicators that measure key aspects of the availability of online access to electronic health record data. There are 12 indicators in total at country level that describe:

1. the nationwide availability of online access to electronic health data;

2. the categories of accessible health data;

3. the availability of authentication schemes, type of front-end solutions and coverage;

4. accessibility for certain categories of people, like vulnerable groups.

The e-Health indicator is an aggregate measure of the scores of each thematic dimension.

The Digital Decade trajectory is the same as that published in the ‘2023 Communication on EU-level trajectories’ and is based on a linear functional form, assuming that the KPI follows an increasing trend with a constant rate over the whole period. With only two available data points, 2022 and 2023, the baseline trajectory is assumed to be the line passing through these two points ( Figure 18 ).

In 2023, the EU scored 79/100, up from 72/100 in 2022, corresponding to an annual growth rate of 9.7%. At this pace, the 2030 target will be reached in 2026.

However, it is important to acknowledge that the linear functional form might not be the most suitable for predicting the evolution of the eHealth indicator. With the majority of electronic health record systems reaching the maturity phase, it is probable that the curve will plateau. This could be due to factors such as the increasing complexity of providing access to remaining categories of health data, connecting all applicable types of healthcare providers, and ensuring sufficient support for vulnerable groups. Consequently, keeping the pace of the growth recently observed may become challenging. In the future, as more data points become accessible, it is plausible that an S-shaped curve might be adopted.

Figure 18: e-Health composite indicator. Historical data and DD trajectory

1.1.12.Electronic identification (eID)

Target: The digitalisation of public services where 100% of Union citizens have access to secure electronic identification (eID) means that are recognised throughout the Union, enabling them to have full control over identity transactions and shared personal data.

KPI definition: Access to eID is measured by two KPIs: (1) the number of Member States that have notified at least one national eID scheme in accordance with Regulation (EU) No 910/2014; and (2) the number of Member States that have provided access to secure privacy-enhancing eID via the European Digital Identity Wallet in accordance with the Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 910/2014 as regards establishing a framework for a European Digital Identity 37 .

Source: The European Digital Identity Framework.

2023 data values: 22 out of 27 national eID scheme notified in accordance with Regulation (EU) No 910/2014.

The Digital Decade target on electronic identification provides for 100% of citizens having access to secure, privacy-enhancing eID by 2030.

The target is tracked by two KPIs. The first one is the number of Member States that have notified at least one national eID scheme to the Commission in accordance with Regulation (EU) No 910/2014.

In 2024, notified eIDs are available in 22 EU Member States, being available to slightly more than 93% of the EU population. This figure represents slight progress compared to 2023, when 21 Member States notified their eID schemes. However, the advancement has been remarkable over the last 3 years: in 2021, at the time of adoption of the regulation introducing the European Digital Identity Framework, only 14 Member States had notified an eID scheme, available to almost 60% of the EU population. This figure increased to 18 Member States with notified eID schemes in 2022. The need to make progress in this area had been highlighted by the 2023 State of the Digital Decade Report  38  which invited Member States to notify the eID scheme.

The second KPI uses as a benchmark the proposal enshrined in the new European Digital Identity Framework, revising the existing European electronic identification and trust services initiative (eIDAS Regulation). Proposed in 2021 39 , the new framework aims to ensure that by 2030, in line with the target set in the Digital Decade Policy Programme, 100% of EU citizens have access to a secure eID scheme recognised throughout the EU, giving users full control over identity transactions and shared personal data. The new framework includes a personal digital wallet to allow people to prove their identity and share identity-related attributes and electronic documents in a secure and convenient way. The European Digital Identity wallets will enable people to choose which aspects of their identity, data and certificates they share with third parties and keep track of sharing. User control ensures that only information that needs to be shared will be shared. Use of the European Digital Identity Wallet will always be at the choice of the user. The new framework, that entered into force on 20 May 2024, requires EU Member States to provide access to a digital wallet built on common technical standards.

The evolution of this target is conditioned by the implementation of the European Digital Identity Framework by the Member States. The trajectories of this target will be established based on the deadline set by the co-legislators for the provision of the European Digital Identity Wallet by Member States.

In the context of the review of the digital targets that the Commission should undertake by June 2026 where necessary, pursuant to Article 4(2) of Decision (EU) 2022/2481, the 2030 target for access to secure, privacy-enhancing eID may be reviewed taking into account the adoption and implementation stages of the European Digital Identity Framework.

2.Annex: bird’s eye view of the 2024 trajectories of the Digital Decade Policy Programme 

 

At least basic digital skills

2023 value: 55.6%

2030 value:

·target: 80%

·projected: 59.8%

ICT specialists in employment

2023 value: 9.79 million

2030 value:

·target: 20 million

·projected: 12.2 million 

Fixed Very High-Capacity Network (gigabit)

2023 value: 78.8%

2030 value:

·target: 100%

·projected: 94.7%

Fibre To the Premises (FTTP)

2023 value: 64.0%

2030 value:

·target: 100%

·projected: 89.5%

Overall 5G coverage

2023 value: 89.3%

2030 value:

·target: 100%

·projected: 100%

Semiconductors

2023 value (estimate): 11%

2030 value:

·target: 20%

·projected: NA 

n/a

Edge nodes

2023 value (estimate): 687

2030 value:

·target: 10 000

·projected: n/a 

Number of quantum computers

2023 value: 0

2030 value:

·target: the cutting edge of quantum capabilities

·projected: 3

Take-up of cloud computing services by businesses

2023 value: 38.9%

2030 value:

·target: 75%

·projected: 64.4%

Take-up of Data Analytics by businesses

2023 value: 33.2%

2030 value:

·target: 75%

·projected: 50.3%

Take-up of AI by businesses

2023 value: 8.0%

2030 value:

·target: 75%

·projected: 16.8%

Take-up of AI or Cloud computing services or Data Analytics

2023 value: 54.6%

2030 value:

·target: 75%

·projected: 72.3%

SMEs with at least basic digital intensity

2023 value: 57.7%

2030 value:

·target: 90%

·projected: 67.9

Number of unicorns

2023 value: 263 (number)

2030 value:

·target: 500

·projected: >500

Digitalisation of public services for citizens

2023: 79.4/100

2030 value:

·target: 100/100

·projected: 90.9/100

Digitalisation of public services for businesses

2023: 85.4/100

2030 value:

·target: 100/100

·projected: 93.8/100

e-Health composite indicator on the availability of electronic medical data

2023: 79 (score 0-100)

2030 value:

·target: 100/100

·projected: 100

eID

2023: 22 countries with eID schemes notified 

eWallet

The KPI follows the European Digital Identity Framework.

n/a

(1)  https://digital-strategy.ec.europa.eu/en/library/communication-establishing-EU-level-projected-trajectories-digital-targets.
(2)  Commission Implementing Decision (EU) 2023/1353 of 30 June 2023 setting out key performance indicators to measure the progress towards the digital targets established by Article 4(1) of Decision (EU) 2022/2481 of the European Parliament and of the Council.
(3)   https://digital-strategy.ec.europa.eu/en/news-redirect/833329 .
(4)    The 2023 methodology is based on this study: Joint Research Centre, Methodology to project Digital Decade trajectories towards 2030, https://publications.jrc.ec.europa.eu/repository/handle/JRC133748.
(5) Defined based on the Eurostat methodology reflecting the revised  Digital Competence Framework  (DIGCOMP 2.0), as also set out in Commission Implementing Regulation (EU) 2022/1399 of 1 August 2022 specifying the technical items of the data set, establishing the technical formats for transmission of information and specifying the arrangements and content of the quality reports on the organisation of a sample survey in the use of information and communication technologies domain for the reference year 2023 in accordance with Regulation (EU) 2019/1700 of the European Parliament and of the Council.
(6) International Standard Classification of Occupations 2008.
(7) Eurostat definition operationalised through the International Standard Classification of Occupations (ISCO).
(8)    Data Over Cable Service Interface Specification.
(9)    Broadband coverage in Europe 2023, Omdia and Point Topic for the European Commission: https://digital-strategy.ec.europa.eu/en/news-redirect/833345 .
(10)    Note that figures are constantly updated and revised by the National Regulatory Agencies even retroactively. This may cause slight changes of past values with respect to those reported in the ‘2023 Communication on EU-level trajectories’.
(11)    Observed and estimated values are provided at the EU global level only.
(12)

  https://digital-strategy.ec.europa.eu/en/policies/edge-observatory .  

(13)   Edge Observatory for Digital Decade_Monitoring Methodology : https://ec.europa.eu/newsroom/dae/redirection/document/100201.
(14)   Edge Observatory for Digital Decade_Monitoring Methodology , https://ec.europa.eu/newsroom/dae/redirection/document/100201.
(15) Please note that this estimate varies from the one published in the 2023 State of Digital Decade Report, which was for 0 nodes in anticipation that forthcoming phases of Edge observatory study will yield the necessary empirical data to inform future projections accurately. The Edge observatory released its findings in November 2023, after the publication of the 2023 State of Digital Decade Report.
(16)  McKinsey, What are Industry 4.0, the Fourth Industrial Revolution, and 4IR?, https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-are-industry-4-0-the-fourth-industrial-revolution-and-4ir.
(17)  Edge Observatory for the Digital Decade, Edge Deployment Data report 1, https://ec.europa.eu/newsroom/dae/redirection/document/100264  .
(18)    Total Technology Spend in billion USD (constant annual 2022) originated from the IDC Spending Guide - Worldwide Black Book Live Edition.
(19)     https://ec.europa.eu/newsroom/dae/redirection/document/105371 .
(20)     https://digital-strategy.ec.europa.eu/en/policies/quantum-technologies-flagship .
(21)    Further details on these KPI’s definition are set out in the ‘KPI Implementing Decision: https://digital-strategy.ec.europa.eu/en/news-redirect/833345 .
(22)    Eurostat’s indicator ‘Enterprises purchasing at least one of the following cloud computing (CC) services: hosting of the enterprise’s database, accounting software applications, customer relationship management software, computing power’ (code E_CC_GE_ME) is used for the period 2014-2020. A break in series occurred in 2021 when the indicator ‘Enterprises buying sophisticated or intermediate CC Services’ was used. This indicator includes different CC services: Accounting software (CC_PFACC); ERP software (CC_PERP); CRM software (CC_PCRM); Security software (CC_PSEC); Database hosting (CC_PDB) and Hosting environment for application development (CC_PDEV).
(23)    In 2023, Eurostat in cooperation with all the EU National Statistical Institutes replaced the Big Data indicator with the Data Analytics one. Data analytics refers to the use of technologies, techniques or software tools for analysing data to extract patterns, trends and insights to make conclusions, predictions and better decision-making with the aim of improving performance (e.g., increase production, reduce costs). Data may be extracted from your own enterprise’ data source or from external sources (e.g., suppliers, customers, government) (source Eurostat). Data Analytics includes a broader set of technologies than the former Big Data.
(24)    At the end of 2023, Eurostat published a backward revision of the 2021 figures on AI take-up. The EU average was revised as well, from 7.9% before the revision to 7.6% after it.
(25)    The most recent figures available on AI take-up by enterprises were collected in 2023 and cannot take into account the possible effect of the innovation package to support Artificial Intelligence startups and SMEs that was launched by the European Commission in January 2024 (https://ec.europa.eu/commission/presscorner/detail/en/ip_24_383).
(26)    As defined in Commission Implementing Regulation (EU) 2021/1190 of 15 July 2021 laying down the technical specifications of data requirements for the topic ‘ICT usage and e-commerce’ for the reference year 2022, and subsequent implementing regulations pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council (Text with EEA relevance), in particular Article 7(1) and Article 17(6).
(27)    The KPI is computed as the complement to 100 of the percentage of SMEs with a very low digital intensity index (sub-category E_DI4_VLO).
(28)    Enterprises having between 10 and 249 number of employees and self-employed persons are considered for the DII estimation (data for micro enterprises missing for almost all the MSs).
(29)    The Enterprise survey questions used for the definition of the Digital Intensity Index vary every year but in 2023 most of the technologies are the same as those of the 2021survey. The list used by year is provided by Eurostat.
(30)    https://dealroom.co/guides/guide-to-unicorns.
(31)    The Dealroom platform regularly updates the number of unicorns. The number of unicorns in the EU on 29.01.2024 was 263, as downloaded from Dealroom. The UK is excluded from the statistics.
(32) Dealroom, https://tinyurl.com/EU-unicorns-Q1-2023 , last accessed on 05.04.2024.
(33)    The functional form is linear in the logarithm of the number of unicorns.
(34)    The eGovernment Benchmark Report 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833346 .
(35)    As part of the methodology update, the number of services per life event was reduced and the Transparency of Public Organisations indicator was replaced with the Transparency of Service Design indicator. Full details on the revision and the new method in the eGovernment Benchmark Method Paper 2020-2023 .
(36)    Study ‘Digital Decade eHealth Indicator Study’:  https://digital-strategy.ec.europa.eu/en/news-redirect/833348 .
(37)    The Digital Identity Regulation - (EU) 2024/1183 - entered into force on 20.05.2024. It amends the previous Regulation (EU) No 910/2014 as regards establishing the European Digital Identity Framework.
(38)    The 2023 Report on the state of the Digital Decade: https://digital-strategy.ec.europa.eu/en/library/2023-report-state-digital-decade.
(39)      To set up the necessary technical architecture, speed up implementation of the revised regulation, provide guidelines to Member States and avoid fragmentation, the proposal was accompanied by a recommendation for the development of a common EU toolbox defining harmonised technical specifications for the wallet.
Top

Brussels, 2.7.2024

COM(2024) 260 final

ANNEX

to the

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2024


Annex 3: Short EU 27 Member States reports

State of the Digital Decade 2024

Austria


1 Executive summary

Austria brings a positive contribution to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Austria made notable progress in the area of gigabit connectivity infrastructure (notably FTTP) and the adoption of cloud technologies. However, some challenges persist in high quality gigabit networks coverage and in the adoption of data analytics by enterprises. The Digital Austria Act sets out the digital measures and principles of the governments’ work programme. This national strategy is well aligned with the Digital Decade targets (such as connectivity, skills, and e-government) and objectives (e.g., cybersecurity, competitiveness, innovation, climate action). The Austrian authorities recognise and actively engage with the transformative impact of digitalisation on economic growth and jobs. The self-assessment of strengths, weaknesses and challenges presented in the roadmap is consistent with the one carried out in the Digital Decade framework. Austria has a skilled population, competitive actors in semiconductors and quantum sectors and very good support system for start-ups. However, broadband connectivity remains underdeveloped and take up of digital technologies by enterprises could be improved. According to the Special Eurobarometer ‘Digital Decade 2024’ 1  , 71% of Austrian citizens consider that the digitalisation of daily public and private services is making their life easier, around the UE average (73%).

Regarding European Digital Infrastructure Consortiums (EDICs), Austria is an observing country of the Alliance for Language Technologies European Digital Infrastructure Consortium and is finalising negotiations to become a member of the Local Digital Twins towards the CitiVERSE EDIC (ALT-EDIC, CitiVERSE EDIC, both already set up). Austria also participates in working groups aiming to set up EDICs in other areas, including Mobility and Logistics Data, Cybersecurity Skills Academy, Connected Public Administration, Digital Commons or AGRIfood 2 .

The Austrian Recovery and Resilience plan allocates 36% to digital transformation (EUR 1.3 billion) 3 , with priorities given to gigabit connectivity and digital skills. Under cohesion policy, an additional EUR 80 million (7% of the country’s total cohesion policy funding) is allocated to the country’s digital transformation 4 .



Austria

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

AT

EU

Fixed Very High Capacity Network (VHCN) coverage

54.8%

67.6%

23.3%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

36.6%

41.0%

11.9%

64.0%

13.5%

x

-

Overall 5G coverage

91.7%

96.0%

4.7%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

30

1 186

x

10 000

SMEs with at least a basic level of digital intensity

64.4%

57.9%

-5.2%

57.7%

2.6%

x

90%

Cloud

28.8%

35.6%

11.2%

38.9%

7.0%

x

75%

Artificial Intelligence

8.8%

10.8%

10.8%

8.0%

2.6%

x

75%

Data analytics

NA

23.9%

NA

33.2%

NA

x

75%

AI or Cloud or Data analytics

NA

47.0%

NA

54.6%

NA

75%

Unicorns

5

263

x

500

At least basic digital skills

63.3%

64.7%

1.1%

55.6%

1.5%

100%

80%

ICT specialists

5.0%

5.3%

6.0%

4.8%

4.3%

x

~10%

eID scheme notification

Yes

Digital public services for citizens

78.4

80.7

2.9%

79.4

3.1%

x

100

Digital public services for businesses

82.9

82.9

0.0%

85.4

2.0%

x

100

Access to e-Health records

88.2

88.2

0.0%

79.1

10.6%

x

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmaps

With respect to Austria’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a low ambition however, based on this document, intends to allocate significant effort to achieve the Digital Decade objectives and targets.

The roadmap is overall coherent and identifies relevant weaknesses but lacks formal national commitments. The Austrian roadmap shows that the target for the KPI on access to a secure e-ID has been already achieved and includes 2030 national targets for 3 KPIs (VHCN, 5G, population with at least basic digital skills) but lacks formal national targets for the remaining 12 KPIs. The three 2030 national targets are aligned with the EU 2030 targets (VHCN and 5G) and ‘at least basic digital skills’ is more ambitious (100% instead of 80%). Trajectories with annual projections until 2030 are missing for all targets except VHCN and 5G. The roadmap covers several objectives of the Digital Decade such as resilience, security, and sovereignty. Other dimensions like the green transition could be further explored.

The total budget of the 60 measures proposed is estimated to EUR 3.4 bn (about 0.7% GDP) with priorities set on gigabit connectivity and support to start-ups and unicorns. According with the Austria’s roadmap there are currently six unicorns in the country, just one more than the value recorded by dealroom , used as data source in this report. Some aspects require more effort, especially for the digitalisation of enterprises (adoption of advanced technologies).



Recommendations for the roadmap

In this context, Austria should, when submitting adjustments to its roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Set explicit national targets for 2030 that will contribute to achieve the EU 2030 targets for ICT specialists, FTTP, edge nodes, SMEs with at least a basic level of digital intensity, take-up of data analytics, cloud, and artificial intelligence, unicorns, digital public services for citizens and businesses, and access to e-Health records; (ii) Define the related trajectories with annual projections until 2030 for all targets (except VHCN and 5G).

-MEASURES: (i) Add more details on budget and sources of funding for those measures lacking it; (ii) Add measures on edge nodes and take-up of Data Analytics; (iii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' reveals key insights into Austrian perceptions of digital rights. With an 8-point increase, 55% of Austrians believe the EU protects their digital rights, above the EU average of 45%. Confidence in all relevant areas such as freedom of assembly online (65%), digital public services (65%) and privacy friendly technologies (67%), is higher than the EU average. Significant concerns include control over personal data (38%) and the online safety for children (47%). The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 5 .

A competitive, sovereign and resilient EU based on technological leadership

Austria could improve its technological leadership and competitiveness by bridging the gap in connectivity and take-up of technologies by enterprises. The coverage of very high capacity networks (67.6%, EU average: 78.8%) and FTTP (41.0%; EU average: 64.0%) remains the major weakness of the Austrian digital infrastructure but the situation is improving due the implementation of the Broadband Austria 2030 initiative. 5G coverage is very good (96.0%) but take-up lags behind. For both fixed and mobile connectivity, particular attention is to be given to rural areas. The digitalisation of enterprises shows a mixed picture. There are flagship actors in the semiconductors and quantum sectors; public support to start-up is high and the take up of AI by enterprise is good. On the other side, the digitalisation of all SMEs remains average and the take up of data analytics and cloud technologies could be improved. The challenge for Austria is to preserve its frontrunner enterprises while ensuring that digitalisation percolates to all actors of the economy. The Digital Action Plan foresees general directions to ensure digital sovereignty, including data sovereignty. The Austrian Cybersecurity Strategy provides a strategic framework in the domain and will foster the implementation of the NIS2 Directive.

Recommendations – Austria should:

-CONNECTIVITY INFRASTRUCTURE: (i) Take appropriate actions to maintain the current sustained FTTP rollout pace and carefully monitor the metrics including rural coverage in order to reach full coverage by 2030; (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-EDGE NODES: Propose dedicated measures to support the deployment of edge nodes.

-SMEs: Provide a clear strategy targeted at SMEs, proposing more ambitious dedicated support schemes to impulse new dynamics in their digitalisation.

-AI/CLOUD/DATA ANALYTICS(i) Design specific measures to increase the take-up of advanced technologies by enterprises, especially for data analytics techniques and cloud; (ii) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS.

Protecting and empowering EU people and society

Austria can rely on a digitally skilled population but still experiences skills shortages on the job market. The level of digital skills of the population (64.7%) is significantly above the EU average (55.6%). Under the Digital Decade, Austria’s ambition stands out as the country aims by 2030 to reach 100% of its population aged 16-74 having at least basic digital skills. Achieving this target will require a sustained progression pace with appropriate support measures. There are 237 000 ICT specialists in Austria (5.3% of employment, above the EU average). Still, Austria experiences challenges related to skills shortages, as also highlighted in the recent European Semester country reports. While measures on improving the digital skills of the population seem effective (mainly at the level of formal education), the use of this advantage to feed the labour market is still to be unlocked.

The state of digitalisation of public services is average and might require acceleration. The roadmap provides for prospective actions to improve its performance in digitalising the public services in the future. Austria has an overall e-Health maturity score of 88.2 in 2023 and remains stable compared to last year’s data and still above the EU average. All citizens have access to a secure digital identity (e-ID), but its use should be fostered. Austria is anticipating the implementation of the future European Digital Identity Wallet (EUDI Wallet).

Recommendations – Austria should:

-BASIC DIGITAL SKILLSExplore measures to boost the digital skills of the population that is far from digitalisation (such as low-skilled jobseekers) in order to achieve the very ambitious national target.

-ICT SPECIALISTSBased on the conclusion of the study on professionals in the Digital Skills Offensive, design new targeted measures to increase drastically the number of ICT specialists, including by upskilling/reskilling the labour force and bridging the gender gap.

-e-ID/KEY DIGITAL PUBLIC SERVICESPromote the use of e-ID and digital public services by the citizens. Make use of the conclusions of the ‘Study on appropriate channels for digitalisation with maximum benefits’ to further digitalise public services in an efficient manner.

-e-HEALTH: (i) Make all data types available to citizens through the online access service; (ii) Offer a mobile application for citizens to access their electronic health records; (iii) Increase the supply of health data by onboarding more categories of healthcare providers.

Leveraging digital transformation for a smart greening

In Austria, the awareness of coupling the digital and green transitions is growing but should be backed up by actions in the roadmap. Several measures dedicated to Digital Decade targets contain a green dimension and the ‘tech for green’ area was identified as a priority for future digital challenges. However, the roadmap lacks dedicated measures on the decarbonation of the ICT sector, including monitoring frameworks.

Recommendations – Austria should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing.

State of the Digital Decade 2024

Belgium


1 Executive summary

Belgium brings a positive contribution to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Belgium made notable progress in terms of the adoption of artificial intelligence by its enterprises and stands out as a frontrunner in providing digital public services. However, important challenges persist in the area of basic and advanced digital skills.

As one of  Europe’s ‘innovation leaders’,  Belgium can count on a combination of high-performing research institutions (such as Imec, which is known for its world-class R&D in semiconductors), and a dynamic R&D ecosystem to support the development and uptake of technologies and innovations by enterprises. Belgium’s performance on both digital skills and on connectivity infrastructures shows there is a need to increase efforts substantially to achieve the EU’s 2030 targets and objectives. 

According to the Special Eurobarometer survey on the ‘Digital Decade 2024’ 6 , 77% of Belgium’s population consider that the digitalisation of daily public and private services is making their lives easier (just above the EU average of 73%).

Concurrently, Belgium is strongly engaged in several European Digital Infrastructure Consortia (EDICs). For the already established EDICs, Belgium is the hosting Member State of the EUROPEUM / Blockchain EDIC and member of the Networked Local Digital Twins towards the CitiVERSE (LDT CitiVERSE EDIC), which seeks to connect local digital twins across Europe. It participates as an observer in the Alliance for Language Technologies (ALT-EDIC) addressing the scarcity of European language data available for Artificial Intelligence (AI) solutions. To May 2024, Belgium is also involved in discussions on the preparations of the EDICs on Genome, Digital Commons, and Agri-Food. The country has also expressed interest in participating to the discussions about the setting up of the EDIC for Mobility and Logistics Data 7 .

Belgium allocates 27% of its total Recovery and Resilience Plan to digital objectives (EUR 1.25 billion) 8 . Under Cohesion Policy, an additional EUR 0.3 billion (13% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 9 .



Belgium

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

BE

EU

Fixed Very High Capacity Network (VHCN) coverage

78.3%

96.0%

22.6%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

17.2%

25.0%

45.7%

64.0%

13.5%

x

-

Overall 5G coverage

29.6%

40.4%

36.2%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

8

1 186

x

10 000

SMEs with at least a basic level of digital intensity

65.3%

74.5%

6.8%

57.7%

2.6%

90%

90%

Cloud

46.9%

47.7%

0.8%

38.9%

7.0%

75%

75%

Artificial Intelligence

10.3%

13.8%

15.7%

8.0%

2.6%

75%

75%

Data analytics

NA

44.5%

NA

33.2%

NA

75%

75%

AI or Cloud or Data analytics

NA

64.2%

NA

54.6%

NA

75%

Unicorns

7

263

14

500

At least basic digital skills

54.2%

59.4%

4.6%

55.6%

1.5%

80%

80%

ICT specialists

5.6%

5.4%

-3.6%

4.8%

4.3%

10%

~10%

eID scheme notification

Yes

Digital public services for citizens

81.5

82.3

1.1%

79.4

3.1%

100

100

Digital public services for businesses

87.6

91.6

4.6%

85.4

2.0%

100

100

Access to e-Health records

85.1

100

17.6%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Belgium’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a very high ambition and, based on this document, intends to allocate some effort to achieve the Digital Decade objectives and targets.

Belgium’s roadmap is coherent overall with the efforts needed across all the dimensions of digitalisation. Belgium has integrated the regional dimension of the DDPP, in particular with a dedicated roadmap for Flanders. Belgium has seized the opportunity of its EU Presidency to foster references to the Digital Decade and the Declaration in Council work, as well as to explore closer cooperation with its regions. The total budget for the 161 measures presented in the country’s roadmap is estimated to be EUR 892 million (about 0.2% of GDP). The Belgian roadmap is a comprehensive exercise, with most measures ongoing or adopted in 2023 and 2024, and Belgium has prioritised the digitalisation of key public services and the promotion of basic and advanced digital skills. The roadmap includes national target values for almost all DDPP targets (except FTTP and edge nodes), all matching the level of ambitions in the EU targets. Recommendations from the State of the Digital Decade 2023 report were taken on board, especially on coordination and synergies between private and public actors. Nevertheless, as acknowledged in the roadmap, several of the measures adopted in response to these recommendations have yet to be further advanced into solid actions.

Recommendations for the roadmap

Belgium should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: Propose a target and trajectory for FTTP and edge nodes.

-MEASURES: (i) Review and update the budget description of all presented measures, highlighting EU sources e.g., RRF; (ii) Include more measures and policies that contribute to the twin transition; (iii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

-CONSULTATION: Report with more detail the results of the consultation process and include more information about the stakeholders invited.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' highlights key insights into Belgian perceptions of digital rights. With 51% of Belgians believing the EU protects their digital rights, this figure has decreased by 5 percentage points, while remaining above the EU average. Concerns are growing, with 48% worried about children's online safety and 42% about control over personal data. On a positive note, 66% trust in privacy online, and 70% value the freedom of association online, both well above the EU average. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 10 .

A competitive, sovereign and resilient EU based on technological leadership

Despite progress in its gigabit and 5G networks’ coverage, Belgium remains far below the EU’s average for FTTP and 5G coverage. Nevertheless, Belgium is in leading position and way above the EU average as far as VHCN (gigabit) coverage is concerned. 5G in the 3.4-3.8 GHz band, an essential band for enabling advanced applications requiring large spectrum bandwidth, covered 14.2% of Belgian households in 2023, far below EU average (50.6%). 5G coverage is however increasing substantially. In January 2024, 87% of the Belgian households could already benefit from 5G. Take-up of high-speed broadband is low, with the share of fixed broadband subscriptions reported at 5.4% for speeds greater than 1 Gbps (compared to the EU average of 18.5%), despite Belgium being above the EU average (72.25% versus 65.9%) for subscriptions to services that provide speeds greater than 100 Mbps.

On the cybersecurity front, many initiatives are in place to raise the country’s capabilities and preparedness, especially through awareness raising and educational efforts by Belgium’s National Cybersecurity Centre. Belgium’s SMEs are making good progress on digitalisation, with a strong uptake of cloud and data analytics, and very strong progress (above the EU average) in AI. The country is dedicated to and has strong capabilities in R&D such as in semiconductors. It is also engaged in partnerships in areas like quantum computing. This shows Belgium is well-aligned with the Digital Decade’s governance mindset: i.e., collaboration across the EU and joint efforts.



Recommendations – Belgium should:

-CONNECTIVITY INFRASTRUCTURE: (i) Accelerate efforts to ensure full FTTP and 5G coverage, addressing the remaining issues such as limited speed and service in rural areas; (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-CYBERSECURITY: (i) Continue support its national Centre for Cybersecurity’s (CCB) activities, including to raise awareness among enterprises for their internal strategies; (ii) Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-CLOUD: Support the broad uptake of the next generation of cloud infrastructure and services under development in the IPCEI-CIS by companies of all sizes, including by liaising with the direct participants to develop a country-specific dissemination strategy reaching beyond the participating organisations.

Protecting and empowering EU people and society

Belgium's regions and its national level, the federal government, have all made it a priority to tackle the digital divide and promote an inclusive, green digital transformation, including through RRF projects. Belgium is a frontrunner in providing key digital public services and solutions to citizens and enterprises. A large share of measures and programmes listed in Belgium’s roadmap are focused on enhancing the digitalisation of key public services, which reflects the country’s determination to make progress on these targets. Belgium’s performance on e-government is particularly solid. In 2023 Belgium was the first Member State to score 100 on the e-Health indicator, well above the EU-27 average of 79. Measures to promote the digitalisation of key public services are balanced, with a significant focus on skills. Continuing efforts to reach its 2030 goals will bear fruit, but more work is needed to increase the basic digital skills of Belgians and to address the country’s persisting labour shortages in ICT positions.

Recommendations – Belgium should:

-BASIC DIGITAL SKILLS: (i) Integrate the learning of digital skills into all levels of education and training, notably on AI, cybersecurity, and ethics of technology; (ii) Accelerate efforts to strengthen adults’ participation in up- and reskilling training and elevate lifelong learning initiatives.

-ICT SPECIALISTS: (i) Pursue academic and industrial partnerships, lowering barriers to attract and employ digital talent; (ii) Seek to increase the number of female ICT graduates.

-E-HEALTH: To improve the quality of service, Belgium could consider going beyond the requirements of the eHealth methodology and monitor the supply of a diverse set of health data by all categories of healthcare providers, as well as establish a feedback system for citizens enabling them to report any limitations in access to their data.

Leveraging digital transformation for a smart greening

Belgium’s federal government, regional governments, and enterprises prioritise environmental impacts when adopting ICT strategies and solutions, reflecting a proactive stance toward smart greening. However, Belgium’s performance in environmental innovation and in addressing sustainability objectives could be improved. Its telecom sector, already, remains committed to further reducing emissions and increasing energy efficiency. The national regulatory authority (BIPT) monitors and encourages environmental efforts among operators, contributing to the industry's overall sustainability.

Recommendations – Belgium should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs. 

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing. 

State of the Digital Decade 2024

Bulgaria


1 Executive summary

Bulgaria has scope to improve its performance to contribute the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Bulgaria has made notable progress in the delivery of online services to businesses, and in its contribution to the development of strategic technologies such as chips and quantum computing. Particularly important challenges persist in terms of basic and advanced digital skills, the adoption of technologies by its enterprises, and closing urban-rural divides.

Although Bulgaria continues to perform well on fixed gigabit connectivity, its 5G coverage remains below the EU average. The uneven distribution of digital infrastructure in sparsely populated, remote and rural areas also requires further attention. Bulgaria should promote favourable conditions for the successful digitalisation of its SMEs to foster technology transfer and accelerate the uptake of technologies, in particular Artificial Intelligence (AI). The uptake of digital public services by citizens is still low and targeted measures are needed to address this. Leveraging its strong performance in connectivity, Bulgaria can accelerate access to digital services for all.

According to the Special Eurobarometer survey on the ‘Digital Decade 2024’ 11 , 73% of the Bulgarian population considers that the digitalisation of daily public and private services is making their lives easier (on a par with the EU average of 73%).

Regarding participation in European Digital Infrastructure Consortiums (EDICs), Bulgaria is a member of the established Alliance for Language Technologies European Digital Infrastructure Consortium (ALT-EDIC), which aims to address the scarcity of European language data available for AI solutions.  To May 2024 and with other Member States, Bulgaria is developing the Statute of the Genome EDIC and the Statute of the Mobility and Logistics Data EDIC within their respective informal Working Groups 12 .

Bulgaria’s Recovery and Resilience Plan (RRP) dedicates 23.1% of its funding to the digital transformation (EUR 1.3 million) 13 . Under Cohesion Policy, an additional EUR 1.3 billion (13% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 14 .



Bulgaria

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

BG

EU

Fixed Very High Capacity Network (VHCN) coverage

85.6%

88.6%

3.5%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

85.6%

88.6%

3.5%

64.0%

13.5%

100%

-

Overall 5G coverage

67.2%

70.9%

5.4%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

5

1 186

x

10 000

SMEs with at least a basic level of digital intensity

25.2%

28.4%

6.2%

57.7%

2.6%

60%

90%

Cloud

9.9%

14.2%

19.8%

38.9%

7.0%

15%

75%

Artificial Intelligence

3.3%

3.6%

4.4%

8.0%

2.6%

11%

75%

Data analytics

NA

21.9%

NA

33.2%

NA

9%

75%

AI or Cloud or Data analytics

NA

29.3%

NA

54.6%

NA

35%

75%

Unicorns

0

263

x

500

At least basic digital skills

31.2%

35.5%

6.7%

55.6%

1.5%

52%

80%

ICT specialists

3.8%

4.3%

13.2%

4.8%

4.3%

5%

~10%

eID scheme notification

Yes

Digital public services for citizens

59.5

67.5

13.4%

79.4

3.1%

100

100

Digital public services for businesses

80.8

91.9

13.8%

85.4

2.0%

100

100

Access to e-Health records

77.2

77.2

0.0%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Bulgaria’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a high ambition, and, based on this document, intends to allocate significant effort to achieve the Digital Decade objectives and targets.

Bulgaria’s roadmap partly reflects the efforts needed in all the dimensions of digitalisation. The roadmap presents a realistic, comprehensive assessment of the country’s state of play and capacity to achieve the Digital Decade targets, aligning its efforts with the recommendations of the 2023 State of the Digital Decade report. The total budget for the 60 measures presented is estimated to be EUR 2.19 billion (about 2.3% of GDP). Around three fourths of the roadmap’s measures presented are new and are especially focused on basic digital skills, the digitalisation of businesses, and of key public services, which reflect Bulgaria’s main areas for improvement. There are fewer measures on targets and objectives related to connectivity, although the country is a frontrunner in gigabit connectivity. The roadmap includes targets and trajectories for all KPIs except for unicorns. Most targets that Bulgaria has set for 2030 are below the EU’s target levels of ambition, with the exception of digital public services and 5G coverage. Some aspects require more effort, especially targets for basic and advanced digital skills as well as for the digitalisation of enterprises. Bulgaria only refers once to the Declaration on Digital Rights and Principles in its roadmap. Limited information is provided on the green transition and Bulgaria could strengthen its narrative on objectives, in particular in the areas of cybersecurity, resilience and sovereignty, and digital inclusion.

Recommendations for the roadmap

Bulgaria should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Provide national targets for the following KPIs: unicorns, edge nodes and e-ID; (ii) Present national projected trajectory for unicorns; (iii) Align the level of ambition of the national targets for basic digital skills, ICT specialists, digitalisation of SMEs, take up of advanced technologies (cloud, AI, data analytics) by enterprises.

-MEASURES: (i) Clarify the budget description of all presented measures, highlighting EU sources such as the RRF; (ii) Indicate clearly whether the measures are investments or reforms; (iii) Include more targeted, specific measures and policies that contribute to synergising the digital transformation and the green transition; (iv) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it; 

-CONSULTATION: Report with more detail the results of the consultation process and include more information about the stakeholders invited.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' highlights key insights into Bulgarian perceptions of digital rights. While 40% of Bulgarians believe the EU protects their digital rights, their confidence remains below the EU average of 45%. Concerns have grown, with 52% worried about children's online safety, a 12-point increase, and 36% concerned about their online privacy, up 7 points. On a positive note, 63% trust in affordable high-speed internet and the advancement of their digital skills. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 15 .

A competitive, sovereign and resilient EU based on technological leadership

In the area of digital infrastructure and connectivity, Bulgaria is one of the frontrunners in the EU. It is important for Bulgaria to address inadequate digital infrastructure coverage in sparsely populated, remote and rural areas, as this is a persistent challenge for 5G wireless and gigabit connectivity, in particular with public funding, especially in the rural, remote and scarcely populated areas where operators have no commercial drivers in investing in the deployment of VHCN. 5G in the 3.4-3.8 GHz band, an essential band for enabling advanced applications requiring large spectrum bandwidth, covered 45.1% of Bulgarian households in 2023, slightly below the EU average (50.6%). Take-up of high-speed broadband is poor with the share of fixed broadband subscriptions reported at 53.4% for speeds of more than 100 Mbps (below the EU average) and 1% for speeds of more than 1 Gbps. The high prices of gigabit services are an issue, given the low purchasing power of the average user. Cybersecurity is an area in which Bulgaria has made regulatory progress, but the country continues to grapple with high cybersecurity risks. According to its roadmap, Bulgaria’s digital ecosystem benefits from established ICT clusters and technology parks, along with access to a skilled workforce and scientific talent. Despite positive dynamics on SMEs’ take-up of cloud and their overall digital intensity, and involvement in AI (such as with the ALT-EDIC, centres of excellence and the creation of BgGPT), the uptake of digital technologies in the country remains significantly below the EU average. Areas of the Digital Decade to which the country is expected to contribute significantly include semiconductors and quantum computing. 

Recommendations – Bulgaria should:

-COMPETITIVENESS/RESILIENCE: (i) Stimulate demand in view of reaching full FTTP coverage; (ii) Accelerate efforts to increase 5G coverage; (iii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks. 

-DIGITALISATION OF SMEs / TAKE UP OF AI/CLOUD/DATA ANALYTICS: (i) Accelerate its efforts with more measures aiming to increase SMEs' uptake of technologies, including measures to stimulate investments in technology transfers, such as through more lab-to-market measures, and support to its innovative start-ups; (ii) Leverage activities as part of the ALT-EDIC and build on its capabilities such as BgGPT to design new measures aiming at developing the AI ecosystem and fostering AI adoption; (iii) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS. 

-CYBERSECURITY: (i) Establish a national cybersecurity infrastructure to increase the efficiency of cybersecurity measures and integrate cybersecurity into all digitalisation programmes and projects; (ii) Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks;

Protecting and empowering EU people and society

There have been rapid, positive developments in the field of digital democracy and e-Government over the past 2 years in Bulgaria. The national scheme for electronic identification is still under construction, but regulatory adjustments introduced in 2023 are considerably improving the situation. Bulgaria had an overall e-Health maturity score of 77.2 in 2023, close to the EU average of 79.1. Despite a positive dynamic, the take-up of online public services by citizens remains below the EU average, with too few public services provided fully online. Bulgaria has put in place a significant number of measures for training programmes in line with recommendations to upskill and reskill the workforce and address adult learning needs. Nevertheless, some aspects require more effort, in particular to improve basic and advanced digital skills, enhance digital inclusion especially for vulnerable, ageing, or remotely located populations. There is room for progress in both raising the population’s awareness of its rights and addressing the lack of trust online.

Recommendations – Bulgaria should:

-BASIC DIGITAL SKILLS / DIGITAL EDUCATION: (i) Take additional support measures to compensate for the deficit of basic to advanced digital skills, reviewing the approach on talent retention and providing attractive conditions; (ii) Ensure the implementation of measures that can enhance digital inclusion of vulnerable populations, raise awareness of people about their rights through guidance, and stimulate digital competence/culture from early childhood and throughout working life.

-ICT SPECIALISTS: Develop measures including through EU programmes to support companies to hire experts in the least populated areas where technology uptake and the skills gap are pressing issues.

-KEY PUBLIC SERVICES: (i) e-ID: Further develop and improve the architecture of e-Government, beyond digitisation, to enhance public procedures’ user-friendliness while minimising administrative burden, such as by considering implementing the Once Only Principle; (ii) Continue collaborations with local public or private actors, to address the pronounced regional imbalances which hinder the access to, use and awareness of digital services, in particular regarding the delivery of online services for citizens.

-E-HEALTH: (i) Expand the coverage of the online access service to ensure that all citizens can access their electronic health data online; (ii) make the data type of medical images available to citizens through the online access service; (iii) ensure that all data types are made available in a timely manner.

Leveraging digital transformation for a smart greening

Bulgaria has adopted several sustainable ICT practices for its digital transformation. In 2023, several measures promoted the green transition. Some of these measures are ongoing, while others are pending launch or evaluation, and they include measures that focus on the circular economy. Of note, the country aims to become a world-leading hydrogen valley – which contributes to priorities of the EU's hydrogen strategy and REPowerEU plan and objectives to achieve climate neutrality. Bulgaria is home to 4 European Digital Innovation Hubs (EDIHs) with co-funding from Digital Europe Programme and 8 Seals of Excellence, which play a role in promoting the green and digital development of Bulgarian enterprises. However, there is no comprehensive framework that would make it possible to monitor the impact of digital on the twin transition.

Recommendations – Bulgaria should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs. 

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing. 

 

State of the Digital Decade 2024

Croatia


1 Executive summary

Croatia brings a positive contribution to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Croatia made notable progress in increasing the number of ICT specialists, in the digitalisation of its SMEs, and in the rollout of gigabit connectivity (FTTP networks). However, particularly important challenges persist in the digitalisation of government services and in the adoption of AI and data analytics, as well as in increasing connectivity in rural areas.

Croatia’s National Digital Strategy for the period until 2032 (DCS 2032) provides the strategic framework for action in line with the Digital Decade. It establishes a set of clear goals for a digital Croatia over the next years, defining the priorities of public policies’ implementation in all areas of the digital transformation.

According to the Special Eurobarometer ‘Digital Decade 2024’ 16 , 83% of the population consider that the digitalisation of daily public and private services is making their lives easier, proportion which is significantly higher than the EU average of 73%. 

Regarding participation in European Digital Infrastructure Consortiums (EDICs), Croatia has joined several EDICs including the Language Technologies ALT-EDIC, the Agri-food EDIC, the Blockchain EUROPEUM-EDIC (both already set up) and is participating in the working groups aiming to set up EDICs in other areas, including: Cancer Images EUCAIM EDIC, the Genome EDIC, the Connected Public Administration IMPACTS EDIC; and the Cybersecurity Skills Academy EDIC 17 .

Croatia allocates 20% of its total Recovery and Resilience plan to digital (EUR 1.4 billion) 18 . Under cohesion policy, an additional EUR 0.8 billion (9% of the country’s total cohesion policy funding) is allocated to the country’s digital transformation 19 . The largest investment is dedicated to digital public services for citizens and enterprises (EUR 303 million) and eHealth (EUR 66 million), followed by VHCN gigabit connectivity (EUR 207.5 million) and digital skills (EUR 134.4 million).



Croatia

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

HR

EU

Fixed Very High Capacity Network (VHCN) coverage

61.5%

67.8%

10.3%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

54.0%

62.1%

15.1%

64.0%

13.5%

100%

-

Overall 5G coverage

82.5%

83.4%

1.1%

89.3%

9.8%

95%

100%

Semiconductors

NA

Edge Nodes

3

1 186

x

10 000

SMEs with at least a basic level of digital intensity

49.7%

56.0%

6.1%

57.7%

2.6%

90%

90%

Cloud

34.6%

40.7%

8.5%

38.9%

7.0%

75%

75%

Artificial Intelligence

8.7%

7.9%

-4.7%(2)

8.0%

2.6%

20%

75%

Data analytics

NA

51.7%

NA

33.2%

NA

30%

75%

AI or Cloud or Data analytics

NA

65.6%

NA

54.6%

NA

75%

Unicorns

2

263

4

500

At least basic digital skills

63.4%

59.0%

-3.6%

55.6%

1.5%

80%

80%

ICT specialists

3.7%

4.3%

16.2%

4.8%

4.3%

7%

~10%

eID scheme notification

Yes

Digital public services for citizens

71.1

67.2

-5.6%

79.4

3.1%

100

100

Digital public services for businesses

66.8

66.2

-0.9%

85.4

2.0%

100

100

Access to e-Health records

85.6

85.6

0.0%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

(2) The variation between the two years is not considered statistically significant but in line with the stagnation of this indicator.

National Digital Decade strategic roadmap 

With respect to Croatia’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a very high ambition and, based on this document, intends to make a significant effort to achieve the Digital Decade objectives and targets. 

In March2024, Croatia adopted its national strategic roadmap, in accordance with Article 7 of the DDPP Decision, following a consultation with a series of workshops with stakeholders and then published it in Croatia’s official journal . The Croatian roadmap includes national targets and trajectories for all Digital Decade targets, except semiconductors. All national target values provided are aligned with the 2030 EU targets, except for the ones on the adoption of AI, big data, ICT specialists and 5G, which are lower and justified by the Croatian authorities in view of the national context, starting point and planned measures. Measures in the roadmap are supporting all the Digital Decade targets, although measures on connectivity and digitalisation of business are very likely to fall short of the 2030 target.

Recommendations for the Roadmap:

Croatia should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Raise the level of ambition for the targets on for the ICT specialists, AI / data analytics adoption, and 5G. 

-MEASURES: (i) Include more measures supporting connectivity, digital skills, for cloud, AI, and data analytics, and in the digitalisation of public services. (ii) Provide a better overview of measures supporting the wider objectives of the programme. (iii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

-CONSULTATION: Ensure a wider and more thorough consultation process with relevant stakeholders.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' provides key insights into Croatian perceptions of digital rights. While 56% of Croatians believe the EU protects their digital rights effectively, this figure is above the EU average of 45%. Concerns have increased, with 44% worried about children's online safety and 40% about control over personal data, reflecting a growing awareness of digital risks. On a positive note, 69% trust in the freedom of expression online as well as in online privacy, both above the EU average. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 20 .

A competitive, sovereign and resilient EU based on technological leadership

In 2023 Croatia brought a positive but limited contribution to the EU’s Digital Decade targets for digital infrastructures, particularly evident in terms of Fixed Very High-Capacity Network (VHCN) coverage, which has shown an increase of about 6 percentage points compared to the previous year: 61% in 2022 and 67.8% in 2023. There is still untapped potential with respect to the coverage of rural areas, with 25.5% of rural areas covered compared to an EU average of 55.6%. In terms of Fibre to the Premises (FTTP) coverage, Croatia improved from 54% in 2022 to 62.1% in 2023, but Croatia risks missing the FTTP target for 2030. 5G in the 3.4-3.8 GHz band, an essential band for enabling advanced applications requiring large spectrum bandwidth, covers 40% of Croatian households in 2023, below the EU average (50.6%). In 2023 Croatia started an initiative aimed at the establishment of the Croatian Competence Centre for Semiconductors (CROCCS) as a contribution to the EU’s semiconductors target.

The digitalisation of SMEs in Croatia reveals a mixed dynamic, with several indicators close to the EU average (for example e-Commerce where with 11.3% is it close to the EU average of 11.9%) and others where the country performs much better than the EU average (29.5% versus an EU average of 19.1%). Croatia is also among the EU forerunners concerning the use of data analytic by enterprises (51.7 % versus an EU average of 33.20%). Croatia’s contribution in the field of unicorns is limited to 2, among the 263 unicorns in the entire EU. Some of the reasons include the low R&D investment (an annual R&D in the ICT sector of only 0.2% of GDP) and the suboptimal access to finance. Croatia is putting in place a number of measures to facilitate access to finance in order to increase the number of unicorns.



Recommendations – Croatia should:

-CONNECTIVITY: (a) Continue and expand the measures aimed at supporting FTTP rollout, aiming to fully close the rural urban divide, including by supporting the demand of gigabit services; (ii) Ensure sufficient access of new players to spectrum for innovative B2B and B2C applications and encourage operators to speed up the deployment of 5G stand-alone core networks. 

-QUANTUM & EDGE NODES: Increase efforts in the areas of quantum computing and edge nodes, in view of their importance for competitiveness, resilience, sovereignty, European values and climate action. 

-CLOUD: Support the broad uptake of the next generation of cloud infrastructure and services under development in the IPCEI-CIS by companies of all sizes, including by liaising with the direct participants to develop a country-specific dissemination strategy reaching beyond the participating organisations.

-TAKE UP OF AI/CLOUD/DATA ANALYTICS & UNICORNS: Increase the level of effort to support the unicorns target, including by increasing the level of R&D in the ICT sector, by improving access to finance and by supporting the development and deployment of trustworthy, secure, sovereign advanced technologies and solutions.

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

Protecting and empowering EU people and society

Croatia is well placed in terms of basic digital skills, with 59% of the population having at least basic digital skills compared with an EU average of 55.6%. There is also a good overall gender balance in the distribution of digital skills. The percentage of the Croatian population with digital content creation skills (81.5%) is well above the EU average of 68.3%. The percentage of ICT specialists in employment in Croatia of 4.3% is below the EU average of 4.8%. Croatia’s RRP investment of EUR 176.5 million on "Digital products and platforms" aims at further increasing the percentage of ICT experts in the workforce.

Croatia has scope to improve its performance in the field of digital public services with scores of 67.2 for digital services available to citizens (versus an EU average of 79.4) and 66.2 for digital services for business (versus an EU average of 85.4). Nevertheless, Croatia scores significantly above the EU average for e-Government users, reflecting the good level of digital skills of its population and underlining the relevance of improving the delivery of the services. Croatia is making a positive contribution to the eHealth target.

Croatia is also making a positive contribution in the field of human centred digitalisation, implementing new regulatory solutions that ensure the safe and ethical implementation of digital technologies.

Recommendations – Croatia should:

-DIGITAL SKILLS: Continue the efforts on digital basic skills and ICT specialists in view of ensuring sufficient progress towards the 2030 targets.

-KEY DIGITAL PUBLIC SERVICES: Take measures to increase the digitalisation of public services and improve the accessibility and user friendliness of its services to citizens and enterprises. 

-e-HEALTH: (i) Introduce a legal basis and provide the technical functionality for authorised persons to access electronic health data on behalf of others; (ii) Make the data type of medical images available to citizens through the online access service; (iii)) Offer a mobile application for citizens to access their electronic health records.

Leveraging digital transformation for a smart greening

Croatia has taken extensive measures to renew and digitalise its energy system, with Eurostat reporting the country as one of the best-performing Member States in the decarbonization of the energy and transport sectors. Nevertheless, the country’s contribution towards the Digital Decade objectives remains limited in the areas of more sustainable energy and more resource efficient digital infrastructure and technologies. This indicates that Croatia has untapped potential to contribute to the EU’s digital objective of twinning the green and digital transitions.

Recommendations – Croatia should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs. 

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing. 

State of the Digital Decade 2024

Cyprus

 

1 Executive summary

Cyprus has untapped potential to contribute to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Cyprus made notable progress in gigabit connectivity infrastructure (notably FTTP), and in the share of ICT specialists in employment. However, important challenges persist in at least basic digital skills and e-health. 

Cyprus has made significant progress over the last few years. The country’s National Digital Strategy 2020-2025 aims to make Cyprus ‘a fit-for-the-future society and knowledge-based economy’. Implementation of the strategy is showing positive results, in particular the deployment of the gigabit connectivity infrastructure reaching 77.1% coverage in 2023. Although Cyprus made progress in almost all indicators compared to 2022, half the population still lacks at least a basic level of digital skills. But the results for ICT specialists in employment with 5.4% shows a very strong dynamic, exceeding the expectations. Building a solid, secure, integrated, and modern digital government architecture is at the core of Cyprus’s digital transition to provide safe and inclusive digital services for people and businesses.

According to the Special Eurobarometer ‘Digital Decade 2024’ 21 , 79% of respondents in Cyprus consider that the digitalisation of daily public and private services is making their lives easier, considerably above the EU average of 73%. However, only 56 % of respondents are aware that rights that apply offline should also be respected online, below the EU average (62%).

Cyprus is actively collaborating at EU level, being member of the European Digital Infrastructure Consortium (EDIC) on Blockchain, EUROPEUM-EDIC (already set up). It is also developing the Statute and other relevant documents of the possible future Cybersecurity Skills Academy EDIC, within an informal working group. In addition, the country is participating in Multi-Country Projects (MCPs) such as EuroHPC and the European consortium POTENTIAL (Pilots for European digital Identity Wallet).

Cyprus’s Recovery and Resilience plan (RRP) allocates 24.6% of its total budget to the digital transformation (EUR 274 million). A high priority is given to digitalising public services and upgrading connectivity infrastructure in line with the European Semester country-specific recommendations 22 . Under Cohesion Policy, an additional EUR 0.1 billion (12% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 23 .

Cyprus

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

CY

EU

Fixed Very High Capacity Network (VHCN) coverage

60.0%

77.1%

28.5%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

60.0%

77.1%

28.5%

64.0%

13.5%

100%

-

Overall 5G coverage

100.0%

100.0%

0.0%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

7

1 186

x

10 000

SMEs with at least a basic level of digital intensity

66.2%

67.3%

0.8%

57.7%

2.6%

90.1%

90%

Cloud

42.2%

45.5%

3.8%

38.9%

7.0%

75%

75%

Artificial Intelligence

2.6%

4.7%

34.5%

8.0%

2.6%

75%

75%

Data analytics

NA

33.5%

NA

33.2%

NA

75%

75%

AI or Cloud or Data analytics

NA

58.0%

NA

54.6%

NA

75%

Unicorns

3

263

x

500

At least basic digital skills

50.2%

49.5%

-0.7%

55.6%

1.5%

80%

80%

ICT specialists

4.6%

5.4%

17.4%

4.8%

4.3%

9%

~10%

eID scheme notification

Yes

Digital public services for citizens

63.6

74.0

16.3%

79.4

3.1%

100

100

Digital public services for businesses

84.7

86.1

1.6%

85.4

2.0%

100

100

Access to e-Health records

70.2

68.1

-3.0%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Cyprus’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a high ambition but, based on this document, intends to allocate some effort to achieve the Digital Decade objectives and targets.

The national strategic roadmap of Cyprus is well aligned with the vision of the Digital Decade and is nearing full completion. It sets out measures for the majority of the targets, and 12 national trajectories to help reach the corresponding targets by 2030. Only trajectories and targets for edge nodes and unicorns are missing. The 5G target has already reached 100% coverage. The national targets are in line with the EU’s 2030 target values, except for the percentage of ICT specialists in employment: the national target is cautiously set at 9%, and the EU’s is 10%. Some parts of the roadmap could benefit from additional focus and effort, given the current results and the slow annual growth. This particularly concerns improving the population’s digital skills, encouraging business take-up of AI, and digitalising public services for citizens. The broad objectives of the Digital Decade are presented alongside existing strategies. In particular, a green digital transition is part of the National Digital Strategy 2020-2025, with a target to reduce the digital sector’s environmental impact by 20% by 2025. However, no specific measures are described in the roadmap to accelerate progress on these objectives, even though several initiatives are on-going at national level. The Digital Decade and the Declaration of Digital Rights and Principles are implicitly included in the national strategies for the country’s digital transition.

The total budget of the measures presented is estimated at EUR 497.1 million (about 1.7% GDP), with priorities set on digitalising public services, promoting the digital transformation of SMEs and creating an innovative ecosystem for start-ups and scale-ups. Funding the digital transformation relies heavily on EU funding (the Recovery and Resilience Facility (RRF) and cohesion policy funding).

Recommendations for the roadmap

When adjusting its national roadmap in accordance with Article 8(3) of the Digital Decade Policy Programme (DDPP) Decision, Cyprus should:

-TARGETS: Provide a target and trajectory for unicorns and edge nodes

-MEASURES: (i) Review and strengthen measures to contribute to the targets that are the most challenging to reach, such as digital skills for all and business take-up of AI; (ii) Provide more information on the implementation of the digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' provides insights into Cypriot perceptions of digital rights. While 43% of Cypriots believe the EU protects their digital rights effectively, a decrease of 10 percentage points from last year, it is slightly below the EU average of 45%. Concerns are notable, with 54% worried about children's online safety, up 15 points, and 47% concerned about control over personal data, up 12 points. Positively, 58% appreciate access to online public services and freedom of assembly and association in the online environment. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 24 .

A competitive, sovereign and resilient EU based on technological leadership

On technological leadership and competitiveness, Cyprus recently made good progress in deploying gigabit connectivity infrastructure and has already reached the 5G coverage 100% target for 2030. On advanced digital infrastructure, Cyprus’s contribution to reaching the Digital Decade targets is currently limited in scope. Technological advancements are a challenge to an economy specialised in service industry, even though technology continues to play an essential role in making digital services resilient to cyberthreat. Cyprus has recently taken a significant step in building capabilities to strengthen cybersecurity with the establishment of the National Security Operations Centre (SOC). Furthermore, Cyprus brings a positive contribution to the EU’s Digital Decade target on digitalisation of SMEs: 67.3% of SMEs have at least a basic level of digital intensity. The country is also committed to developing its innovation ecosystem for start-ups and scale-ups. It created the country’s first equity fund with the support of the RRF.

Recommendations – Cyprus should

-CONNECTIVITY INFRASTRUCTURE: (i) Maintain the pace of VHCN roll-out, with a special attention to reach the underserved areas; (ii) Regularly assess emerging market demand for the remaining unassigned spectrum in the 26GHz band; (iii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-SEMICONDUCTORS: Draw up a strategy to support research and innovation to contribute to the European semiconductor ecosystem.

-EDGE NODES: Continue to assess the market to develop measures or actions in the short term to contribute to the EU edge nodes target.

-CLOUD/AI/DATA ANALYTICS: (i) Consider if additional targeted measures for facilitating the adoption of AI by enterprises, in particular SMEs, would be necessary to reach the target by 2030; (ii) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS.

Protecting and empowering EU people and society

Equipping people with digital skills is a priority for Cyprus which put the digital transformation of schools at the core of the overall digital transition policy. A major reform includes revising the curricula, developing educational material and training teachers. The reform is on track to contribute to the Digital Decade target for basic digital skills and lay the groundwork for nurturing future ICT specialists. In 2023, Cyprus already made a positive contribution to the EU’s Digital Decade target with ICT specialists making up 5.4% of the population in employment, above the EU average (4.8%). However, in 2023, half the population lacked at least a basic level of digital skills, which is a challenge given the pace of society and the economy’s digital transformation. In its roadmap, Cyprus has also planned to develop a solid, secure, integrated and modern government digital architecture to provide safe and inclusive digital services to improve people’s quality of life and the business environment. Nonetheless, in 2023, Cyprus demonstrated it had untapped potential to contribute to the Digital Decade targets for digital public services for citizens, scoring lower (74 out of 100) than the EU average (79.4). However, Cyprus has shown significant progress since 2022 when the score was 63.6.

Recommendations – Cyprus should

-BASIC DIGITAL SKILLS: Consider, based on the current moderate results, strengthening the strategy for developing the population’s basic digital skills, especially by training people over 55.

-DIGITAL PUBLIC SERVICES: Consider focused measures, after further analysis of the e-government benchmarking methodology, to ensure that the benchmarking results reflect the current status of the country’s digital public services.

-E-HEALTH: (i) Enhance the authentication method for logging into the online access service by using a notified e-ID; (ii) Make the data types of medical images and hospital discharge reports available to citizens through the online access service; (iii) Ensure that the online access service complies to web accessibility guidelines.

Leveraging digital transformation for a smart greening

The National Digital Strategy 2020-2025 commits Cyprus to the objective of a green digital transition. The plan sets out a target to reduce the digital sector’s environmental impact by 20% by 2025 and promote the use of digital technologies to support sustainable development. Several actions, notably in R&D, have been undertaken in 2023.

Recommendations – Cyprus should

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing

State of the Digital Decade 2024

Czechia

 

1 Executive summary

Czechia has untapped potential to contribute to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Czechia made notable progress in enhancing digital skills and up-take of AI. Significant efforts were made to digitalise key public services. However, important challenges persist in the roll out of FTTP networks and the digitalisation of SMEs.

Czechia aims to excel in cutting-edge technologies like quantum, microchips, and AI, as well as upskill its population to keep up with innovation. To nurture its ambitions and keep up with the growing adoption of AI by its enterprises, Czechia is updating its National AI Strategy of the Czech Republic, its National Quantum Strategy 2030 and its National Semiconductor Strategy 2030. Czechia also continues to improve children, students and workers’ digital skills and to make more online public services available and increase their use. Improving online public services is essential as, according to the Special EurobarometerDigital Decade 2024’ 25 , 78% of Czechia’s population consider that digitalising everyday public and private services makes their lives easier. 

However, Czechia faces big challenges with the digitalisation of businesses, especially SMEs, recruiting ICT experts and expanding fixed very-high capacity networks (VHCN), particularly in rural areas. Tackling these challenges is needed: the European Declaration on Digital Rights and Principles states that ‘everyone, everywhere in the EU should have access to high-speed digital connectivity’. Small enterprises need access to a good network infrastructure and resources to embrace digitalisation. Czechia introduced several initiatives to improve connectivity and business digitalisation to improve the situation.

Czechia is active in several multi-country projects, such as the IPCEI on Microelectronics and Communications Technologies, and is a member of the European Digital Infrastructure Consortia (EDIC) on Language Technologies (ALT-EDIC) and on Local Digital Twins towards the CitiVERSE. The country is also engaged in the discussions related to the setting up of the Genome and Digital Commons EDICs. In quantum technologies Czechia participates in EuroQCI, EURHPC-LUMI-Q, CLONETS and EPIQUE 26 .

Czechia’s recovery and resilience plan (RRP) allocates 22.8% of the total budget to digital (EUR 1.94 billion) 27 . Under cohesion policy, an additional EUR 1.9 billion (9% of the country’s total cohesion policy funding) is allocated to the country’s digital transformation 28 .



Czechia

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

CZ

EU

Fixed Very High Capacity Network (VHCN) coverage

53.2%

50.5%

-5.0%

78.8%

7.4%

95%

100%

Fibre to the Premises (FTTP) coverage

37.4%

36.1%

-3.7%

64.0%

13.5%

x

-

Overall 5G coverage

82.6%

94.6%

14.5%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

10

1 186

x

10 000

SMEs with at least a basic level of digital intensity

52.5%

49.3%

-3.1%

57.7%

2.6%

80%

90%

Cloud

40.0%

35.2%

-6.2%

38.9%

7.0%

60%

75%

Artificial Intelligence

4.5%

5.9%

14.5%

8.0%

2.6%

16%

75%

Data analytics

NA

19.5%

NA

33.2%

NA

25%

75%

AI or Cloud or Data analytics

NA

43.1%

NA

54.6%

NA

75%

Unicorns

4

263

6

500

At least basic digital skills

59.7%

69.1%

7.6%

55.6%

1.5%

80%

80%

ICT specialists

4.5%

4.3%

-4.4%

4.8%

4.3%

7%

~10%

eID scheme notification

Yes

Digital public services for citizens

76.2

76.3

0.2%

79.4

3.1%

100

100

Digital public services for businesses

83.8

83.8

0.0%

85.4

2.0%

100

100

Access to e-Health records

46.6

51.1

9.5%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Czechia’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a very high ambition however, based on this document, intends to allocate limited effort to achieve the Digital Decade objectives and targets.

Overall, Czechia’s roadmap is consistent with the efforts needed to support the country’s digitalisation, but the specific targets should be more detailed. The roadmap includes 2030 targets for all indicators, except for Fibre to the Premises (FTTP) and edge nodes which will be introduced next year. In total, 5 of the national targets are aligned with the EU’s 2030 targets, and 7 are lower: VHCN, ICT specialists, SMEs with at least a basic level of digital intensity, the number of unicorn companies, and take-up of AI, data analytics and cloud. There are no trajectories for FTTP and edge nodes. Moreover, on skills, Czechia could make a distinction between basic and advanced skills and set out targeted measures to increase the number of ICT specialists. Although the roadmap partially covers Digital Decade objectives such as online safety, sovereignty, representation of women working in ICT and online access to public services, it does not cover the green transition. The total budget for the roadmap’s 58 measures is estimated at EUR 1.77 billion (about 0.6% of GDP), prioritising ICT specialists, connectivity, and key public services. Some aspects require more action, especially the aim of business digitalisation (in terms of both basic intensity and the rate of adoption of advanced technologies).

Recommendations for the roadmap

When adjusting its national roadmap in accordance with Article 8(3) of the Digital Decade Policy Programme (DDPP) Decision, Czechia should tackle the additional recommendations below:

-TARGETS: (i) Propose a target and trajectory for edge nodes and formalise the trajectory for FTTP; (ii) Distinguish and align the level of ambition of targets for the 3 technologies’ take up by enterprises (AI, cloud, data analytics) to the EU’s targets. ​

-MEASURES: (i) Strengthen the measures contributing to targets that are most difficult to achieve the digitalisation of enterprises and distinguish measures contributing to basic digital skills and advanced ones; (ii) Review the budget description of all presented measures, duly highlighting EU sources such as the RRF; (iii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' sheds light on Czech perceptions of digital rights. 46% of Czechs doesn't believe the EU protects their digital rights well, a decrease in confidence of 5 percentage points from last year. Concerns have escalated, particularly with 58% worried about children's online safety and 44% about control over personal data, both experiencing increases in concern. On the positive side, 57% value freedom of expression and 55% appreciate the availability of privacy-friendly technologies, both figures aligning closely with EU averages. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 29 .

A competitive, sovereign and resilient EU based on technological leadership

To underpin its technological leadership and competitiveness, Czechia must strengthen its fixed network infrastructure and boost business digitalisation. Czechia’s infrastructure has problems in reaching 100% coverage for VHCN due to the slow roll-out of fibre and a very low take-up of fixed broadband capable of 1 Gbps speed. 5G coverage is rapidly expanding, with nearly 95% of households now covered. However, in 2023, only 39.3% of Czech households had 5G in the 3.4-3.8 GHz band, which was slightly below the EU average (50.6%). Digitalisation indicators for businesses are all below the EU average, including the basic intensity of SMEs and the adoption of data analytics, AI and cloud technologies. A revised strategy for AI is being drawn up, with the aim to raise business interest and promote its adoption. Improving the start-up ecosystem could be achieved by helping entrepreneurs raise funds and access consulting services. The country can also count on technology-intensive companies in areas such as microelectronics, quantum computing and AI start-ups. Lastly, on cybersecurity, Czechia is facing an increasing number of threats. The country’s agency, the National Cyber and Information Security Agency (NUKIB), is actively trying to address them and disseminates best practices and supporting materials to stakeholders through its websites and conferences to facilitate the transition to post-quantum encryption.

Recommendations – Czechia should:

-CONNECTIVITY INFRASTRUCTURE: (i) Accelerate the rollout of FTTP, among others by raising awareness on the benefits of Gigabit networks, by simplifying processes and permits for rolling out networks, and by promoting the construction of fibre-ready buildings. (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-DIGITALISATION OF ENTERPRISES: Continue and scale up the subsidy calls for digitalisation of SMEs to increase their capacity building through supporting services in the implementation of their project.

-UNICORNS: (i) Support applied research for patents and ideas to be adapted to the market and create a business case for innovation; (ii) Facilitate access to capital for start-ups, including venture and growth capital.

AI/CLOUD/DATA ANALYTICS: (i) Review the mix of measures to support the adoption of advanced digital technologies including AI, Cloud and big data to understand the decline in adoption. (ii) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS.

-EDGE NODES: As edge computing is an important component of AI, future network deployment, and the Internet of Things, member states should consider edge node deployment when creating investment programmes and strategies in these areas. 

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

Protecting and empowering EU people and society

Czechia is well equipped to deliver an inclusive digital transition thanks to continuous efforts to increase digital skills. However, there should be a stronger focus on training ICT specialists. The population’s level of digital skills is well above the EU average. Since 2022, Czechia has been implementing a reform of its primary and secondary school curricula to integrate digital subjects and equip schools with digital tools. ICT specialists as a percentage of the population in employment is below the EU average, partly due to a shortage of workers in the country; moreover, of the 4.3% of ICT specialists in the workforce, only 12.4% are women. Progress on the digitalisation of public services and e-health development needs to pick up as Czechia’s scores are below the EU average. The creation of the Digital and Information Agency (DIA) is a promising development as it centralises e-government decisions. This has helped make initiatives more consistent with each other and accelerate the roll-out of the Czech digital wallet. However, the number of projects to be managed should be carefully assessed, and more staff might be needed.

Recommendations – Czechia should:

-ICT SPECIALISTS: Increase the attractiveness of science, technology, engineering and mathematics (STEM) studies and ICT careers especially among women.

-DIGITALISATION OF PUBLIC SERVICES: Accelerate efforts for the digitalisation of public services, also ensuring sufficient administrative resources to support these.

-e-HEALTH: (i) Expand the coverage of the online access service to ensure that all citizens can access their electronic health data online. (ii)Expand the data types made available to citizens through the online access service. (iii) Increase the supply of health data by onboarding more categories of healthcare providers.

Leveraging digital transformation for a smart greening

Czechia has not set a strategy to bring the digital and green transitions together. The country has only started to reflect how to calculate the ICT sector’s environmental footprint, promote responsible energy use among consumers and advance the eco-design of ICT equipment and services.

Recommendations – Czechia should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs. 

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing. 

   

State of the Digital Decade 2024

Denmark

 

1 Executive Summary

Denmark brings a very strong contribution to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Denmark made notable progress in digitalising public services for businesses and in increasing the number of ICT specialists. However, challenges persist in the digitalisation of SMEs and, more generally, in enterprises’ take-up of advanced technologies, such as artificial intelligence (AI).

With a focus on solving societal challenges through digital means, Denmark presented a national roadmap that demonstrates plans to strengthen the competitiveness of enterprises, improve public services and advance the green transition. The updated Digitalisation Strategy 2024 – 2027 , launched in November 2023, marks the allocation of approximately EUR 100 million for initiatives that focus on providing technology knowledge in primary schools, increasing the uptake of digital technologies such as AI and robotics, using data for the green transition, among other things. Relevant strategies also include the Joint Government Digital Strategy 2022-2025, the national Broadband Strategy, Denmark’s National Strategy for Quantum Technology  and the Strategy for Cyber and Information Security . 

According to the Special Eurobarometer ‘Digital Decade 2024 30  survey, 83% of the Danish population consider that the digitalisation of daily public and private services is making their lives easier, well above the EU average of 73%.

Denmark is a member of the Alliance for Language Technologies European Digital Infrastructure Consortium (ALT-EDIC), which addresses the scarcity of European language data needed for AI solutions. It is also developing the Statute and other relevant documents of the possible future Genome EDIC and engaging in discussions on the set-up of the Digital Commons EDIC, both within informal Working Groups. Denmark is also finalising membership negotiations with the Local Digital Twins towards the CitiVERSE EDIC. Finally, the country has set up five European Digital Innovation Hubs (EDIHs) to build up the digital capacity of companies and public sector organisations 31 .

Denmark

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

DK

EU

Fixed Very High Capacity Network (VHCN) coverage

96.3%

97.2%

0.9%

78.8%

7.4%

x

100%

Fibre to the Premises (FTTP) coverage

77.9%

84.0%

7.9%

64.0%

13.5%

x

-

Overall 5G coverage

97.8%

100.0%

2.2%

89.3%

9.8%

x

100%

Semiconductors

NA

Edge Nodes

22

1 186

x

10 000

SMEs with at least a basic level of digital intensity

79.4%

75.3%

-2.6%

57.7%

2.6%

95%

90%

Cloud

62.2%

66.2%

3.2%

38.9%

7.0%

78%

75%

Artificial Intelligence

23.9%

15.2%

-20.3%(2)

8.0%

2.6%

76.6%

75%

Data analytics

NA

49.5%

NA

33.2%

NA

72.7%

75%

AI or Cloud or Data analytics

NA

77.4%

NA

54.6%

NA

75%

75%

Unicorns

8

263

x

500

At least basic digital skills

68.7%

69.6%

0.7%

55.6%

1.5%

80%

80%

ICT specialists

5.7%

5.9%

3.5%

4.8%

4.3%

7.7%

~10%

eID scheme notification

Yes

Digital public services for citizens

84.1

84.2

0.2%

79.4

3.1%

100

100

Digital public services for businesses

88.7

88.7

0.0%

85.4

2.0%

100

100

Access to e-Health records

95.8

97.9

2.2%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

(2) The decrease recently observed on the AI value is likely linked to a heightened awareness among enterprises regarding both the utilisation of specific AI technologies, like for example Robotic Process Automation (RPA) based on AI.

Denmark’s Recovery and Resilience plan (RRP) devotes 27% of the total budget to the country’s digital transformation (approximately EUR 382 million) 32 . Priority is given to implementing the new digital strategy, extending high-speed rural broadband coverage, improving cybersecurity readiness and the use of AI, further digitalising SMEs and the public administration, with a particular attention to developing digital solutions for the healthcare sector, and boosting R&D. Under Cohesion Policy, an additional EUR 1.9 billion (9% of the country’s total cohesion policy funding) is allocated to the country’s digital transformation 33 .

National Digital Decade strategic roadmap

With respect to Denmark’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a high ambition and, based on this document, intends to allocate some effort to achieve the Digital Decade objectives and targets.

The Danish roadmap is coherent, including on objectives, but only partly reflects the efforts needed to achieve the Digital Decade targets. It includes 2030 national targets for 10 of the 15 key performance indicators (KPIs) but lacks formalised targets and trajectories for Fibre-to-the-premises (FTTP) coverage, edge nodes and unicorns. The Fixed Very High-Capacity Networks (VHCN) coverage target is set for 2025, while the 5G target is assumed not to feature because the country has already reached full coverage. In total, 9 of the national targets presented are aligned with the EU’s 2030 targets, while ICT specialists is below. The roadmap covers all objectives, namely digital citizenship, fostering leadership and competitiveness, and digital for green. With 55 measures presented, the total reported budget in the roadmap at the time of writing is estimated at EUR 145.4 million (less than 0.11% of GDP), with priorities set on quantum, the uptake of key technologies by enterprises and the digitalisation of public services. Some aspects might require more effort, especially for digital skills, boosting the number of edge nodes and the uptake of digital technologies by smaller enterprises.

Recommendations for the roadmap

Denmark should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the Digital Decade Policy Programme (DDPP) Decision:

-TARGETS: (i) Provide targets and trajectories for FTTP, edge nodes and unicorns, and formalise the trajectory for VHCN up to 2030. (ii) Consider aligning the level of ambition of targets for the number of ICT specialists to the corresponding EU targets. (iii) Recalculate some of the trajectories using the correct starting year for the following KPIs (basic digital skills, cloud, data analytics and SMEs with at least a basic level of digital intensity), as in SDDR2023.

-MEASURES: (i) Strengthen the measures contributing to targets where Denmark has the potential to do more, including on digital skills, edge nodes and the uptake of digital technologies by smaller enterprises; (ii) Review the budget description for all measures, highlighting EU sources of funding such as the Recovery and Resilience Facility (RRF). ​(iii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

-CONSULTATION: Provide additional detail on the stakeholder consultation of the roadmap.

Digital rights and principles

The Digital Decade Eurobarometer sheds light on Danish perceptions of digital rights. While 60% of Danes believe the EU protects their digital rights effectively, a 4-point decrease from last year, it remains above the EU average of 45%. Concerns have escalated, particularly with 67% worried about children's online safety, a significant 25-point increase, and 47% about control over personal data, up 6 points. Positively, 74% value the freedom of assembly online, and 72% appreciate access to free public services, both well above the EU average. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 34 .

A competitive, sovereign and resilient EU based on technological leadership

To underpin its technological leadership and competitiveness, Denmark is equipped with strong infrastructure and a high-quality research community, particularly in the fields of robotics and deep-tech centres for the fabrication of nano technologies like quantum technologies, sensors and chips. However, more can still be done to transfer R&D into market innovation and to boost the use of new technologies, in particular AI and cloud, by smaller younger companies, and help them to keep pace with larger companies when it comes to the level of digitalisation.

On infrastructure, Denmark is on track to reach 100% coverage for VHCN and 5G by 2025, 5 years earlier than the EU’s 2030 target. The country boasts one of the highest percentages of fixed broadband subscriptions with speeds above 1 Gbps in the EU (29.3%). 5G in the 3.4-3.8 GHz band, which is essential for enabling advanced applications requiring large spectrum bandwidth, covered 85.0% of Danish households in 2023, significantly above the EU average of 50.6%. Denmark continues to focus on technological leadership and sovereignty, with plans to invest more in semiconductors and the commercialisation of quantum technologies, where Denmark is already contributing significantly.

Although all indicators on businesses digitalisation exceed the EU average (for example, 75.3% of SMEs have at least a basic level of digital intensity), their limited or at times very limited dynamic suggests there can still be some room for improvement. Through automation initiatives like SME:Digital and SME:Robot, Denmark aims to streamline digital processes in SMEs. However, more could be done to promote a wide range of digital solutions designed to meet the needs and resources of all types of SMEs, particularly smaller enterprises. The recent allocation of a EUR 4.2 million research fund under the Danish Innovation Fund will already contribute to reinforcing strategic research in key technologies, particularly big data, AI, as well as cyber, information security and semiconductors. More could be envisaged when it comes to Danish enterprises taking advantage of European co-funding to have a real impact on the country’s competitiveness and productivity. Denmark’s start-up scene thrives in robotics, automation, quantum, and drone technologies, but still faces challenges in accessing venture capital and competing for talent. On cybersecurity, the National Strategy for Cyber and Information Security is being implemented to protect critical government ICT systems and improve the cyber skills of people, businesses, and authorities.

Recommendations – Denmark should:

-DIGITALISATION OF ENTERPRISES: Focus on supporting and raising smaller enterprises awareness of digital solutions to improve their businesses and learn how to better use them.

-AI/CLOUD/DATA ANALYTICS: (i) Review the mix of measures to support the adoption of advanced digital technologies by businesses, particularly those targeting the adoption of AI by enterprises. (ii) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS.

-CYBERSECURITY: Continue to implement the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-CONNECTIVITY INFRASTRUCTURE: Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-EDGE NODES: Consider integrating the deployment of more edge nodes at national level, as well as investment programmes, factoring in the innovation that edge nodes will bring in the areas of AI, the Internet of Things (IoT) and networks rollout.

Protecting and empowering EU people and society

Denmark is delivering a digital transformation that aims to boost digital inclusion and a skilled workforce. In 2023, 69.6% of the population had at least a basic level of digital skills, above the EU average of 55.6%. However, there is still scope for improvement to bridge the urban-rural divide and the gender gap, especially to avoid the risk of digital exclusion in a country where the digital transformation is steadily advancing. ICT specialists as a percentage of the Danish population in employment is 5.9%, which is also above the EU average of 4.8%, yet still showing important gender differences (only 22.6% of employed ICT specialists are women). Moreover, the share of companies that had hard-to-fill ICT vacancies looking for ICT specialists in 2022 (10.7%) was generally higher than in the EU (6%), showing there is still an issue in the ICT labour market. Looking ahead, more can be done to improve young people’s interest in the ICT field, especially among women. Denmark also aims to step up existing efforts in upskilling and reskilling the labour force and to retain more international ICT students in the Danish labour market. These efforts could help increase enrolment rates in ICT courses and the number of graduates in the country (currently representing 5.5% of graduates in the country) as, although ICT-focused degree programmes have enough places available, they often go unfilled. On the digitalisation of the administration (public services for citizens and businesses, e-ID and access to e-health records), Denmark is on track and performing above the EU average, with a notable e-Health maturity score of 97.9 out of 100 and with health data supplied across all the categories of healthcare providers. The country’s new single secure e-ID solution, MitID, was notified under the e-IDAS regulation with a substantial and high level of assurance. Data shows that 83.9% of Danish citizens made use of the e-ID to access public services in the last 12 months, which is much higher than the EU average (36.1%). With a high level of digitalised public services, Denmark pays particular attention to ensuring inclusiveness and accessibility giving, whenever necessary, the possibility to those with impairments to opt out.

Recommendations – Denmark should:

-BASIC DIGITAL SKILLS: Focus on integrating basic digital skills in primary and lower-secondary education at national level, to ensure there is an equal level of basic digital skills among the Danish population, paying particular attention to the existing urban-rural divide and gender gap.

-ICT SKILLS: Follow up on the plans set out in the new digitalisation strategy to upskill and reskill ICT specialists. Design schemes to improve young people’s interest in ICT, including among women, and retain international students in ICT-related degree programmes to increase enrolment rates.

-E-HEALTH: Make the data type of medical images available to citizens through the online access service.

Leveraging digital transformation for a smart greening

Denmark is actively improving the standardisation, digitalisation, and automation of data to support businesses, public authorities and the population in accessing their climate and environmental footprints and make smarter, more informed choices. In line with this, the Danish government wants to create a circular data bank that collects and shares data on waste and materials.

Recommendations – Denmark should:

-Continue developing a coherent approach to twinning the digital and green transitions, including by supporting relevant pilots. First, continue to promote energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs. 

-Build on existing measures to monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing. Where possible, take the lead in this area by promoting national tools and methodologies at EU level.

State of the Digital Decade 2024

Estonia

 
1 Executive summary

Estonia brings a positive contribution to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Estonia made notable progress in digitalisation of public services, and in digital skills including ICT specialists as well as cybersecurity initiatives. However, important challenges persist in reaching full gigabit coverage and the digitalisation of SMEs.

Digitalisation is a priority in Estonia, as demonstrated by its national Digital Agenda for 2030, adopted in 2021. The Digital Strategy focuses on three areas: the digital state, cyber security, and connectivity. Estonia’s digitalisation policies are very comprehensive, however, there are no strategies on semiconductors, edge nodes and quantum policies. Furthermore, Estonia could improve its connectivity infrastructure, in particularly its coverage and speed. The digitalisation of key public services is a top priority in Estonia.

Estonia is putting people at the centre of digitalisation, focusing on inclusion and participation: it has implemented accessible key public services for people and enterprises, enabling activities such as engaging in the democratic process. Estonia’s focus on cybersecurity also shows its commitment to ensuring a safe and secure digital environment.

According to the Special Eurobarometer Digital Decade 2024 35 (Digital Decade Eurobarometer), 81% of Estonians consider that the digitalisation of daily public and private services is making their lives easier, considerably above the EU average of 73%. Additionally, 73% of Estonians are aware that rights that apply offline should also be respected online.

Estonia is a member of the Networked Local Digital Twins towards CitiVERSE European Digital Infrastructure Consortium (EDIC), and an observer in the Alliance for Language Technologies EDIC which addresses the scarcity of European language data needed for AI solutions (both EDICs have already been set up). Estonia is also in the working groups aiming to set up the Genome and the Digital Commons EDICs 36 .

Estonia’s Recovery and Resilience Plan (RRP) allocates 24.1% of its budget to digital policies (EUR 208 million), with priorities on digitalising enterprises and public administrations, and increasing connectivity 37 . Under Cohesion Policy, an additional EUR 0.4 billion (11% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 38 .



Estonia

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

EE

EU

Fixed Very High Capacity Network (VHCN) coverage

76.3%

76.9%

0.8%

78.8%

7.4%

x

100%

Fibre to the Premises (FTTP) coverage

76.3%

76.9%

0.8%

64.0%

13.5%

x

-

Overall 5G coverage

43.3%

87.5%

102.0%

89.3%

9.8%

x

100%

Semiconductors

NA

Edge Nodes

3

1 186

x

10 000

SMEs with at least a basic level of digital intensity

54.0%

55.9%

1.7%

57.7%

2.6%

x

90%

Cloud

50.5%

52.6%

2.1%

38.9%

7.0%

x

75%

Artificial Intelligence

2.8%

5.2%

36.3%

8.0%

2.6%

x

75%

Data analytics

NA

25.6%

NA

33.2%

NA

x

75%

AI or Cloud or Data analytics

NA

60.6%

NA

54.6%

NA

75%

Unicorns

2

263

x

500

At least basic digital skills

56.4%

62.6%

5.4%

55.6%

1.5%

60%

80%

ICT specialists

6.6%

6.7%

1.5%

4.8%

4.3%

x

~10%

eID scheme notification

Yes

Digital public services for citizens

94.0

95.8

1.9%

79.4

3.1%

x

100

Digital public services for businesses

98.8

98.8

0.0%

85.4

2.0%

x

100

Access to e-Health records

89.2

97.5

9.3%

79.1

10.6%

x

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Estonia’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a low ambition and, based on this document, intends to allocate limited effort to achieve the Digital Decade objectives and targets, although the formal adoption of the roadmap at the national level which is crucial for the country to fully commit towards these ambitions, is still pending. 

The roadmap presents one national target out of 15, zero trajectories out of 13 possible and three measures. The roadmap does not present targets nor trajectories on very high-capacity networks (VHCN), Fibre-to-the-premises (FTTP) coverage, overall 5G coverage, edge nodes, SMEs with at least a basic level of digital intensity, cloud, artificial intelligence, data analytics, unicorns, ICT specialists, digital public services for citizens, and businesses, nor access to e-health records.

The national target included in the roadmap and the three measures briefly referred to in the roadmap refer to basic digital skills. The national target being 60% is not in line with the EU’s level of ambition, which is 80% by 2030. Moreover, with 62.6% of its population having already at least a basic level of digital skills, Estonia has in fact already reached its national target.

Furthermore, the roadmap does not detail the amount of funds dedicated to the Digital Decade. In addition, Estonia did not consult stakeholders on the roadmap. Given Estonia’s digital steps forward, it is important that the roadmap reflects these. The roadmap requires more effort in all areas.

Recommendations for the roadmap 

Estonia should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Establish a national target and trajectory on VHCN coverage, FTTP coverage, 5G coverage, edge nodes, SMEs with at least a basic level of digital intensity, cloud, AI, data analytics, unicorns, ICT specialists, digital public services for citizens, digital public services for business, and access to health records. (ii) Align the level of ambition of the national target and propose a trajectory for at least basic digital skills. 

-MEASURES: (i) Clearly present measures dedicated to VHCN coverage, FTTP coverage, 5G coverage, edge nodes, SMEs with at least a basic level of digital intensity, cloud, AI, data analytics, unicorns, ICT specialists, at least basic digital skills, digital public services for citizens, digital public services for business, and access to health records considering the Digital decade objectives. When presenting the measures in the roadmap provide a description of the measures, describe its intended effects and results, state the budget of the measure differentiating from public, EU and private funding. (ii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

-CONSULTATION: (i) Consult stakeholders in the drafting of the roadmap. (ii) Report on the consideration of stakeholders' feedback in the roadmap.

Digital rights and principles

The Digital Decade Eurobarometer reveals Estonian perceptions of digital rights. While 42% of Estonians believe the EU protects their digital rights effectively, a decrease of 6 points from last year brings it below the EU average of 47%. Concerns have intensified, particularly with 55% worried about childrens online safety, a 10-point increase, and 46% about control over personal data, up 11 points. On the positive side, 66% appreciate the level of digital skills and education, and another 68% access to online public services, both well above the EU average. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 39 .

A competitive, sovereign and resilient EU based on technological leadership

Estonia is committed to improving digital infrastructures and technologies. The country is working on infrastructure improvements, such as the Access to Networks Support Scheme 1.0 and 2.0. There has been significant annual growth in 5G coverage thanks to the radio spectrum auctions of the 700 MHz and
3.4-3
.8 GHz bands in 2022. There is an important urban rural divide, and the government aims to tackle this and ensure full coverage for all through the Access to Networks Support Scheme 4.0. However, there is a greater need for public and private investment to reach more households and cover the white areas (areas with low connectivity). Additionally, Estonia does not have measures on edge nodes or semiconductors. The percentage of SMEs with at least a basic level of digital intensity is falling behind the EU average. Estonia’s progress on data analytics and AI take-up is slow. Creating a safe and secure digital environment is of importance to Estonia at every level. Measures include strengthening the country’s infrastructure and improving the population’s cybersecurity skills.

Recommendations – Estonia should:

-CONNECTIVTY INFRASTRUCTURE: (i) Continue the ongoing efforts to support VHCN, FTTP and 5G rollout, including by fostering private investment and by stimulating take-up. (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-SEMICONDUCTORS/QUANTUM COMPUTERS: Develop strategies and measures for semiconductors, and quantum computing.

-EDGE NODES: As edge computing is an important component of AI, future network deployment, and the Internet of Things, consider edge node deployment when creating investment programmes and strategies in these areas.

-DIGITALISATION OF ENTERPRISES AND AI/CLOUD/DATA ANALYTICS: (i) Continue work on digitalising SMEs especially for data analytics and AI. (ii) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS.

Protecting and empowering EU people and society

Estonia is heavily committed to improving peoples’ digital skills and putting them at the centre of digital transformation. Estonia is actively creating a human-centred, inclusive, and transparent digital environment in line with the overarching EU objectives for digitally empowering people. The country performs above the EU average in improving the public’s digital skills and ICT specialists already make up a high percentage of the in employment (6.7%). Estonia also has the second highest percentage of female ICT specialists in the EU (26.8%). Estonia has introduced educational measures aiming to educate both educators and people in different parts of life, by focusing on lifelong learning.

Estonia is a front runner in providing key public services for people and businesses, striving to make digital services available for every major life event. In 2023, the government introduced new online applications to streamline administrative processes such as marriage, childbirth, military service, migration and death of a loved one. The application Digigate is set to reduce the administrative burden on entrepreneurs by letting them provide all relevant information in one place online, streamlining communication with the authorities.

Almost 80% of the Estonian population has at least one e-ID. Additionally, Estonia's high e-health maturity places it in the trendsetter cluster. All data categories investigated in this framework are made available to citizens in a timely manner. Moreover, all the categories of healthcare providers investigated in the eHealth survey supply relevant data to the online access service for electronic health records. Citizens can access these data through an online portal, although a mobile application is not available. Furthermore, all applicable categories of healthcare providers supply relevant data. Regarding access opportunities for certain categories of people, Estonia scores 100/100 compared to a European average of 77/100 and does follow the Web Content Accessibility Guidelines accessibility guidelines. Overall, Estonia is working to further streamline public service applications to make data accessible in a single, user-friendly platform.

Recommendations – Estonia should:

-BASIC DIGITAL SKILLS: Continue implementing initiatives to improve digital skills and ensure that no one is left behind.

-ICT SPECIALISTS: Continue measures aiming at increasing the number of more senior ICT specialists (higher level of experience) and continue improving gender balance.

-E-HEALTH: Offer a mobile application for citizens to access their electronic health records.

Leveraging digital transformation for a smart greening

Estonia shows great ambition to bringing the green and digital transitions together with the government aiming at becoming the greenest digital government in the world , in its Digital Agenda 2030. Estonia needs to continue capitalising on opportunities presented by the green transition by integrating related initiatives into a wider framework. Through its study carried out in 2023, ‘Analysis of the Current State and Opportunities for environmental friendliness in the digital state environment’, the country aims to identify key digital and green challenges. The findings will be presented in 2024, which will pave the way for an action plan. Although Estonia has already introduced green requirements into public procurement procedures, the country could develop a more extensive strategy that combines green and digital measures for the private sector. Private enterprises, particularly the start-ups, are taking steps to create synergies between green and digital steps.

Recommendations – Estonia should:

-Continue developing a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing.

-Encourage private investments and initiatives in responsible green tech.

(1)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(2)

 Information last updated on 31 May 2024.

(3)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(4)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(5)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4. 

(6)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(7)

Information last updated on 31 May 2024.

(8)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(9)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(10)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: ﷟ https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4.

(11)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(12)

Information last updated on 31 May 2024.

(13)

   The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(14)

   This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(15)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4.

(16)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(17)

Information last updated on 31 May 2024.

(18)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(19)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(20)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4.

(21)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(22)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(23)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(24)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4.

(25)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(26)

Information last updated on 31 May 2024.

(27)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(28)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(29)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4. 

(30)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(31)

Information last updated on 31 May 2024.

(32)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(33)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(34)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4.

(35)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(36)

Information last updated on 31 May 2024.

(37)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(38)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(39)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4.

Top

Brussels, 2.7.2024

COM(2024) 260 final

ANNEX

to the

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2024


Annex 3: Short EU 27 Member States reports

State of the Digital Decade 2024

Finland


1 Executive summary

Finland brings a very strong contribution to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.  

In 2023, Finland made notable progress in gigabit networks roll-out and continued to record growth in the digital skills of the population and the digitalisation of its enterprises. However, challenges persist to keep up with gigabit networks deployment across its territory and in the area of e-government, where there is a need to improve on e-health and to ensure that access to other digital public services remains at highest possible levels. 

Using digitalisation as a tool to achieve a thriving and resilient economy and a safe, inclusive society is a priority for the Finnish authorities. Finland set out its vision for 2030 in the national digital compass, in line with the EU-level objectives. As the digital transition is at full speed in Finland, the country is focusing on research, development and innovation (RDI) in advanced technologies, 6G connectivity and opportunities deriving from the data economy. The production of semiconductors and quantum computing are also given a top priority. These developments in Finland are in a context of accessible online public services and a highly digitally literate population. ICT specialists remain sought after to meet labour shortages.

According to the Special Eurobarometer ‘Digital Decade 2024’ 1 , 78% of the Finnish population consider that the digitalisation of daily public and private services makes their life easier. This is slightly above the EU average of 73%.  

Finland is participating in the works to set up European Digital Infrastructure Consortia (EDICs) for the Genome EDIC, the Mobility and Logistics Data EDIC and Connected Public Administration EDIC (IMPACTS-EDIC). The country is finalising membership negotiations for the Local Digital Twins (LDT  CitiVERSE) EDIC and has decided to seek an observer status in the Alliance for Language Technologies one (ALT-EDIC) 2 (both already set up). The country also participates in the EuroHPC Joint Undertaking, hosting LUMI, one of the supercomputers procured by the Joint Undertaking. 

Finland’s recovery and resilience plan dedicates 29% of its budget to digital policy measures (EUR 0.5 billion), with priorities given to e-Health, cybersecurity, and R&D in key technologies (6G, AI, quantum) 3 . Under Cohesion Policy, an additional EUR 0.4 billion (20% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 4 .



Finland

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

FI

EU

Fixed Very High Capacity Network (VHCN) coverage

70.8%

77.7%

9.8%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

50.3%

61.2%

21.5%

64.0%

13.5%

x

-

Overall 5G coverage

94.7%

98.4%

3.9%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

24

1 186

x

10 000

SMEs with at least a basic level of digital intensity

81.6%

85.6%

2.4%

57.7%

2.6%

90%

90%

Cloud

66.3%

73.0%

4.9%

38.9%

7.0%

75%

75%

Artificial Intelligence

15.8%

15.1%

-2.2%(2)

8.0%

2.6%

75%

75%

Data analytics

NA

40.6%

NA

33.2%

NA

75%

75%

AI or Cloud or Data analytics

NA

79.5%

NA

54.6%

NA

75%

Unicorns

7

263

x

500

At least basic digital skills

79.2%

82.0%

1.8%

55.6%

1.5%

87%

80%

ICT specialists

7.6%

7.6%

0.0%

4.8%

4.3%

10%

~10%

eID scheme notification

No

Digital public services for citizens

91.6

90.6

-1.1%

79.4

3.1%

100

100

Digital public services for businesses

100.0

100.0

0.0%

85.4

2.0%

100

100

Access to e-Health records

90.1

82.6

-8.3%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

(2) The variation between the two years is not considered statistically significant but in line with the stagnation of this indicator.

National Digital Decade strategic roadmap

With respect to Finland’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a very high ambition and based on this document, intends to allocate significant effort to achieve the Digital Decade objectives and targets.

The roadmap is ambitious and coherent including all objectives. Finland’s national roadmap includes 2030 targets for all KPIs except for FTTP, edge nodes and unicorns. It also demonstrates ambitions in areas such as semiconductors and quantum. In total, all the national targets presented are aligned with EU 2030 targets. At this stage, trajectories are missing for FTTP, edge nodes, unicorns, take-up of cloud, AI and data analytics, digital public services for citizens and e-health. The roadmap covers all objectives of the Digital Decade, such as technological leadership, sovereignty, competitiveness, cybersecurity, protection of fundamental rights in the digital space and the green transition. The proposed set of measures to achieve them is underpinned by values such as trust and sustainability.

The total budget for the measures is an estimated EUR 499.7 million (0.2% of GDP). The priorities are the uptake of cloud, artificial intelligence and data analytics/big data, the development of quantum computing capacities, innovations in connectivity (such as 6G) and increasing RDI expenditure.

Recommendations for the roadmap

Finland should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Propose a target and trajectory for FTTP, edge nodes and unicorns, design a trajectory for VHCN, cloud, data analytics, AI, digital public services for citizens and e-health; (ii) Propose a higher target for basic digital intensity of enterprises.

-MEASURES: (i) Strengthen the measures on ICT specialists and gigabit, add measures on digital public services and e-health; (ii) Review the budget description of all presented measures, duly highlighting national and EU sources such as Recovery and Resilience Facility; (iii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

Digital rights and principles

The Digital Decade Eurobarometer reveals detailed views from Finland on digital rights. While the majority find digitalisation beneficial, only 58% of Finns believe their rights are well protected by the EU, a 9-point drop since 2023 but still higher than the EU average (45%). Key concerns include safe internet for children and digital legacy control, with only 33% and 36% feeling secure, respectively. However, 71% feel they have sufficient freedom of expression and information online, up by 5 points. Positive trends are seen in access to high-speed internet (68% satisfaction, up 2%) and online privacy protection (69% satisfaction). The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 5 .

A competitive, sovereign and resilient EU based on technological leadership

To underpin its technological leadership and competitiveness, Finland is equipped with excellent mobile network infrastructures, a high level of digitalisation of businesses and high level of investment in disruptive technologies. On infrastructures, Finland is already very close to reaching 100% coverage for 5G (98.4%). 5G in the 3.4-3.8 GHz band, essential for enabling advanced applications requiring large-spectrum bandwidth, covers 89.7% of Finnish households. The rate of deployment of gigabit networks (VHCNs) is rising steadily but the coverage remains slightly below the EU average. However, fixed broadband subscriptions with download speeds of 1 Gbps or more are at 4%, lower than the EU average of 18.5%.

85.6% of SMEs in Finland have at least a basic level of digital intensity and almost 80% use AI, Cloud or Data analytics. Companies are continuously encouraged to increase their productivity and competitiveness by tapping the potential of 6G, the data economy and AI. The Government and industry invest heavily in research and development across multiple digital areas, notably semiconductors, AI and quantum computing. The current approach to cybersecurity frames the issue as an exercise for the whole society, with public investments in citizen skills and resilience of businesses. The national strategy in this area will be updated in 2024.

Recommendations – Finland should:

-CONNECTIVITY INFRASTRUCTURE: (i) Intensify efforts to develop fixed gigabit connectivity, including by reinforcing public investments where necessary; (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to continue the deployment of 5G stand-alone core networks.

-AI/CLOUD/DATA ANALYTICS: (i) Encourage enterprises to apply existing advanced technological solutions, such as AI or quantum testing possibilities and innovate further in these areas; (ii) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS.  

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks. 

-TECHNOLOGICAL LEADERSHIP: Secure further sources of funding and encourage private investment in disruptive technologies.

Protecting and empowering EU people and society

Finland is well equipped to deliver the digital transformation based on trust and putting people at the centre. Finland has already reached the EU-level target of at least basic skills with measures planned to boost societal resilience and to keep bridging geographical and demographical divides in formal and informal education and training. The country aims to achieve a 10% proportion of ICT specialists in employment, which requires keeping up the momentum, even though it performs better than other EU countries. To increase the number of employees with advanced digital skills, Finland’s roadmap proposes a higher number of places in higher education institutions and incentives for foreigners. The country scores 90.6 in the accessibility of digital public services for citizens and 100 on access for businesses. The e-ID is very widely used, and in 2023 Finland has started the process to notify an e-ID for cross-border authentication under the eIDAS Regulation. Looking beyond the country’s above-average performance in e-health, digital support in health and care services could help offset labour shortages in these fields and additional features of the e-health system – increase its user-friendliness.

Recommendations – Finland should:

-BASIC SKILLS: Continue empowering literacy of its population and developing competences in areas such as cybersecurity.

-ICT SPECIALISTS: Intensify efforts in attracting ICT specialists and offering tailored training paths as well as address the gender gap in this field.

-e-ID: Notify to the Commission an e-ID scheme under the eIDAS Regulation.

-e-Health: (i) Expand the coverage of the online access service to ensure that all citizens can access their electronic health data online; (ii) Widen the catalogue of data available to citizens in that service; (iii) Consider offering a mobile application for citizens to access their electronic health records and enhanced authentication methods.

Leveraging digital transformation for a smart greening

Finland’s ambition for digital leadership is based on sustainability as an underlying value and the goal of facilitating a digital green transition. The government published a Climate and Environmental Strategy for the ICT Sector in 2021 in cooperation with the private sector and research community and keeps following its implementation. In Finland, research and other activities are ongoing to not only reduce its carbon footprint but also to create a handprint of technological industries. The aim is therefore to develop digital technologies that can help overcome global climate and environmental challenges. One example is the choice of Finnish supercomputer LUMI to run the Climate Change Adaptation Digital Twin (Climate DT), a high-priority digital twin under the EU flagship initiative Destination Earth.

Recommendations – Finland should:

-Continue developing a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in  view of future policy development, as well as of attracting relevant financing.

-Demonstrate leadership in using digital transition for environmental purposes by promoting national tools and methodologies at European level.

State of the Digital Decade 2024

France

 

1 Executive summary

France brings a positive contribution to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.  

In 2023, France made notable progress in e-health and rolling out its fibre network. However, important challenges persist in the digitalisation of SMEs and the adoption of advanced technologies (such as AI and cloud) by enterprises. 

Digitalisation is a priority for the French authorities with an emphasis on infrastructure and research and development (R&D) in key technologies. Under its investment plan ‘France 2030’, France is investing massively in research and innovation in new technologies such as cloud, cybersecurity, Artificial Intelligence (AI), and quantum. The production of semiconductors on the national territory is also given a top priority. France also benefits from robust digital infrastructures. Although its digitalisation policies cover a broad range of areas, there is scope to improve several metrics related to the general population of citizens and enterprises. According to the special Eurobarometer survey on the Digital Decade 2024’ 6 , only 64% of the French population consider that the digitalisation of daily public and private services makes their life easier, one of the lowest scores in the EU.

France is hosting the European Digital Infrastructure Consortium (EDIC) ALT-EDIC (already set up), which addresses the scarcity of European language data needed for AI solutions, and is candidate to host two more EDICs, both in the making: Agrifood EDIC and (along with The Netherlands) and Digital Commons EDIC. France is also a member of the Local Digital Twins towards the CitiVERSE EDIC (already set up). In addition, France is developing the Statute of the possible future Mobility and Logistics Data EDIC and the Genome EDIC 7 . 

France allocates 21.6% of its total Recovery and Resilience plan to digital (EUR 8.1 billion) 8 with the priorities given to e-Health and R&D in key technologies (5G, quantum, and cloud). Under Cohesion Policy, an additional EUR 1.9 billion (11% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 9 .



France

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

FR

EU

Fixed Very High Capacity Network (VHCN) coverage

73.4%

81.4%

10.9%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

73.4%

81.4%

10.9%

64.0%

13.5%

x

-

Overall 5G coverage

88.8%

93.2%

4.9%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

257

1 186

x

10 000

SMEs with at least a basic level of digital intensity

47.0%

52.0%

(2)

57.7%

2.6%

90%

90%

Cloud

25.3%

22.9%

(2)

38.9%

7.0%

53.3%

75%

Artificial Intelligence

6.7%

5.9%

(2)

8.0%

2.6%

46.7%

75%

Data analytics

NA

33.9%

NA

33.2%

NA

49.7%

75%

AI or Cloud or Data analytics

NA

44.9%

NA

54.6%

NA

75%

Unicorns

40

263

100

500

At least basic digital skills

62.0%

59.7%

-1.9%

55.6%

1.5%

80%

80%

ICT specialists

4.3%

4.7%

9.3%

4.8%

4.3%

10%

~10%

eID scheme notification

Yes

Digital public services for citizens

71.3

72.1

1.1%

79.4

3.1%

100

100

Digital public services for businesses

79.3

79.3

0.0%

85.4

2.0%

100

100

Access to e-Health records

54.5

79.3

45.5%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

(2) Comparison with previous years cannot be done for France due to methodological changes.

National Digital Decade strategic roadmap

With respect to France’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a high ambition and, based on this document, intends to allocate some effort to achieve the Digital Decade objectives and targets.

Overall, France’s roadmap is ambitious and consistent including on objectives but with some weaknesses in the digitalisation of enterprises. France’s national roadmap includes 2030 targets for all KPIs except for FTTP and edge nodes (the former is assumed to be similar to VHCN but needs formalisation). In total, 9 national targets are aligned with EU 2030 targets, but 3 are below: take up of AI, take up of data analytics and take up of cloud. Trajectories are missing for FTTP, edge nodes and unicorns. The roadmap covers all objectives of the Digital Decade such as a human-centred digital space, resilience and security, sovereignty, green, and protection of the society with a high level of ambition, especially on the human centred digital space, on sovereignty, and on the green transition.

The total budget of the measures (public and private) presented in the roadmap is estimated to EUR 17.8 billion (about 0.6% of GDP) with the priorities being semiconductors, connectivity, and e-Health. Some aspects require more action, especially regarding ICT specialists to double the current number of ICT professionals and for the digitalisation of enterprises (both in terms of basic digital intensity and the rate of adoption of advanced technologies).

Recommendations for the roadmap

France should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the Digital Decade Policy Programme (DDPP) Decision:

-TARGETS: (i) Provide a target and trajectory for edge nodes, design a trajectory for unicorns, and formalise the trajectory for FTTP; (ii) Consider aligning the level of ambition of targets for the 3 technologies take-up by enterprises (AI, cloud, data analytics) to the EU’s targets. 

-MEASURES: (i) Strengthen the measures contributing to targets that are the most difficult to achieve, especially as regards skills and digitalisation of enterprises; ​(ii) Review the budget description of all presented measures, duly highlighting EU sources such as Recovery and Resilience Facility (RRF); (iii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

-CONSULTATION: Report on the consultation of stakeholders in the roadmap

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' provides insights into French perceptions of digital rights. Although 39% of French respondents believe the EU protects their digital rights effectively, this marks a decrease and is below the EU average of 47%. Concerns have intensified, with 52% worried about children's online safety and 45% about control over personal data, reflecting growing unease. On a positive note, 85% value digital technologies for connecting with friends and family, and 82% for accessing public services, indicating strong appreciation for digital advancements. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 10 .

A competitive, sovereign and resilient EU based on technological leadership

To underpin its technological leadership and competitiveness, France is equipped with good infrastructures with a positive deployment dynamic but should boost the digitalisation of its businesses. On infrastructures, France is on track to reach 100% coverage for VHCN (+3.5 million fibre connections in 2023) and 5G for 2025, 5 years earlier than the EU target. France shows the highest share of fixed broadband subscriptions with speed > 1 Gbps in the EU with 51.6%. This is mainly due to the successful roll-out of the fast broadband plan ‘France très haut débit, the choice of FTTH as the leading technology, and the French appetite for high-speed broadband. 5G coverage stands at 93.2% with 64.8% of French households covered by the 3.4-3.8 GHz band, an essential band for enabling advanced applications requiring large spectrum bandwidth. Several calls for projects were launched to develop industrial 5G and the 26GHz band has been open since 2019 for experimentation purposes. However, the indicators on the digitalisation of enterprises (basic intensity of SMEs and take-up of data analytics, AI, and cloud) all point to a performance below the EU average. Although France hosts some innovative frontrunners (including dynamic start-ups), as a whole, the global business sector underperforms on digitalisation. France has made digital sovereignty a priority by, for example, increasing the production of semiconductors and is developing sovereign solutions in AI, cloud, quantum, and cybersecurity. On AI, a national commission recently released a report guiding the future actions of the government. The national cybersecurity strategy will be updated in 2024 with a focus on skills.

Recommendations – France should:

-CONNECTIVITY INFRASTRUCTURE: Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-CYBERSECURITY: (i) Continue efforts in cybersecurity to address evolving threats and restore the confidence of enterprises and general public; (ii) Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-SMEs: Set up additional measures and increase resources for existing schemes to improve the SMEs digitalisation performance and to further leverage the impact of the European Digital Innovation Hub in regions and its close presence to regional ecosystems, paying special attention to its outermost regions.

-AI/CLOUD/DATA ANALYTICS/EDGE NODES: 

-(i) Review the mix of measures to support the adoption of advanced digital technologies (with a particular attention to AI and cloud). Foster the creation of local ecosystems to allow technologies (AI, cloud, data analytics) and best practices to diffuse across the broader business sector. Build on the recent national AI Commission report to design new measures to develop the AI ecosystem and foster related technologies adoption by enterprises.

-(ii) Ensure the broad uptake of the next generation of cloud infrastructure and services under development in the IPCEI-CIS by companies of all sizes, including by developing a country-specific dissemination strategy (complementing what has already been committed under IPCEI-CIS); contributing to the additional dissemination activities led by the Cloud IPCEI Exploitation Office.

-(iii) Consider measures specific to edge nodes deployment, supplementary to the IPCEI-CIS participation.

Protecting and empowering EU people and society

France is well equipped to deliver an inclusive digital transition, but it will require sustained efforts to continuously increase the level of digital skills of the population and train ICT specialists. The level of digital skills of the population is still slightly above the EU average, with a slight decrease compared to last year’s report, possibly due to post-COVID-19 effects (i.e., lower usage of ICT tools). Over the last years, France has integrated digital skills in curricula at different stage. In 2023 it also announced measures to strengthen the basic education (especially in mathematics) and boost the attractiveness of science, technology, engineering, and mathematics (STEM). This could increase the number of young people embarking on a digital career in the future. The proportion of ICT specialists (4.7%) in employment is broadly in line with the EU average and in strong progress. However, it will require sustained action to reach the EU and national Digital Decade targets given the relatively slow change in population indicators. The digitalisation of public services will require acceleration as France is slightly below the EU average. France improved its overall e-Health maturity score from 54.5 in 2022 to 79.3 in 2023. In February 2024, the authorities launched ‘France Identité’, a companion application enabling e-ID users to authenticate and access digital ID services. France has a long history of prioritising inclusiveness in designing policies. Digitalisation is current practice with measures in place to narrow the geographical divides and the gender gap and to reduce digital illiteracy.

Recommendations – France should:

-BASIC DIGITAL SKILLS: Take measures to boost the digital skills of the population on the shorter term, with additional efforts in its outermost regions.

-ICT SPECIALISTS: (i) Increase the attractiveness of STEM disciplines at school to boost the number of young people, including girls, interested in taking up ICT-related studies or careers; (ii) Increase the visibility and readability of training and reskilling options. Design incentive schemes to attract and retain ICT specialists.

-KEY DIGITAL PUBLIC SERVICES: Make efforts to digitalise public services, with particular attention to re-use of information available to public administrations and user support.

-E-HEALTH: (i) Make all data types available to citizens through the online access service; (ii) Enhance the authentication method for logging in to the online access service by using a (pre)notified e-ID; (iii) Introduce a legal basis and provide the technical functionality for authorised persons to access electronic health data on behalf of others.

Leveraging digital transformation for a smart greening

France emerges as an EU leader in its ability to create links between the digital and green transitions. It is at the forefront in monitoring the footprint of the ICT sector and in promoting energy sobriety and the eco-design of ICT equipment and services. During the French presidency of the EU, France drafted a joint declaration on the dual digital and environmental transition, signed by 22 Member States.

Recommendations – France should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Demonstrate leadership and continue monitoring and quantifying the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing.

State of the Digital Decade 2024

Germany

  

1 Executive summary

Germany brings a positive contribution to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Germany made notable progress in the deployment of connectivity infrastructure, in particular 5G stand-alone-ready infrastructure and in FTTP. There is also good progress in enhancing basic digital skills. However, the country is still facing important challenges in reaching full FTTP coverage as well as in the digitalisation of public services.  

Digitalisation is a top priority for the Federal Government, reflected in several targeted strategies and massive investments in research and development of digital technologies. Germany’s cornerstone policy is the Digital Strategy , adopted in August 2022 and updated in April 2023, which encompasses all facets of a sovereign, digital society, an innovative economy and a digital state. Several other strategies focus on specific aspects of digitalisation in Germany, such as the Gigabit Strategy , the AI Strategy , the Data Strategy , the Start-up Strategy ; Education in the Digital World Strategy and the National Further Education Strategy .

According to the Special Eurobarometer survey, the ‘Digital Decade 2024’ 11 , 70% of the German population said that the digitalisation of daily public and private services makes their life easier, below the EU average of 73%.

Regarding European Digital Infrastructure Consortia (EDICs) Germany is engaging in discussions on the setting up of the Mobility and Logistics Data EDIC, the Digital Commons EDIC, the Cancer Image Europe (EUCAIM) EDIC, the Genome EDIC and the AGRIfood EDIC. The country is also finalising membership negotiations with the Local Digital Twins towards the CitiVERSE – EDIC 12 (already set up). As part of the EuroHPC Joint Undertaking, Germany will host one of the two EU’s exascale supercomputers, and one of the quantum computers.  

Regarding EU funding, both Germany’s Recovery and Resilience plan (DARP) and the cohesion funds support Germany’s commitment to digitalisation. The DARP focuses on digital investments, featuring two important projects of common European interest (IPCEIs), one on semiconductors and one on cloud. Germany allocates 48% of its total Recovery and Resilience plan to digital (EUR 13.5 billion) 13 . Under cohesion policy, an additional EUR 2.3 billion (12% of the country’s total cohesion policy funding) is allocated to the country’s digital transformation 14 .

Germany

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

DE

EU

Fixed Very High Capacity Network (VHCN) coverage

70.1%

74.7%

6.6%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

19.3%

29.8%

54.2%

64.0%

13.5%

100%

-

Overall 5G coverage

93.2%

98.1%

5.3%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

351

1 186

x

10 000

SMEs with at least a basic level of digital intensity

58.9%

61.4%

2.1%

57.7%

2.6%

91%

90%

Cloud

31.8%

38.5%

10.0%

38.9%

7.0%

x

75%

Artificial Intelligence

10.6%

11.6%

4.6%

8.0%

2.6%

x

75%

Data analytics

NA

37.1%

NA

33.2%

NA

x

75%

AI or Cloud or Data analytics

NA

58.0%

NA

54.6%

NA

75%

75%

Unicorns

67

263

122 15

500

At least basic digital skills

48.9%

52.2%

3.3%

55.6%

1.5%

80%

80%

ICT specialists

5.0%

4.9%

-2.0%

4.8%

4.3%

x

~10%

eID scheme notification

Yes

Digital public services for citizens

78.4

75.8

-3.3%

79.4

3.1%

x

100

Digital public services for businesses

80.7

78.6

-2.6%

85.4

2.0%

x

100

Access to e-Health records

70.3

87.0

23.7%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Germany’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating some ambition and, based on this document, intends to allocate very significant effort to achieve the Digital Decade objectives and targets.

More specifically, the targets set are ambitious, but not all targets are covered. The roadmap sets 2030 targets for 8 KPIs (VHCN, FTTP, 5G, the AI or cloud or big data joint indicator (the three technologies together), digital intensity, unicorn companies, digital skills and e-health). It sets no target and therefore also no trajectory for 7 KPIs: ICT specialists, edge nodes, AI, cloud, big data (separately), digital public services for citizens and for businesses. All the national targets are aligned with the EU’s 2030 targets, but full trajectories are provided for only 2 KPIs: SMEs with at least a basic level of digital intensity and e-health. Trajectories with one or two datapoints are provided for 3 KPIs: FTTP/VHCN and 5G. Although this is not required, the roadmap also provides a full trajectory on quantum, the joint AI or cloud or big data indicator and on e-ID.

The roadmap briefly covers the objectives of the Digital Decade such as digital citizenship, promoting leadership and sovereignty and contributing to the green transition.

The total budget of measures is estimated at almost EUR 100 billion (about 2.4% of Germany’s GDP), with 60% allocated to fibre roll-out, followed by 17% for semiconductors and 10% for unicorn companies/start-ups. Some aspects require more action, such as the aim to increase the current number of ICT professionals. The roadmap assesses the key challenges related to the targets and analyses the impact of the measures on areas where specific challenges exist.

Recommendations for the roadmap

Germany should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the Digital Decade Policy Programme (DDPP) Decision:

-TARGETS: (i) Propose a target and a trajectory for ICT specialists, edge nodes, AI, cloud and data analytics (separately), digital public services for citizens and for businesses; (ii) Complement the trajectory and thus provide yearly datapoints for the following 5 KPIs: FTTP, VHCN, 5G, unicorns and basic digital skills.

-MEASURES: Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' provides insights into German perceptions of digital rights. Although 41% of Germans believe the EU protects their digital rights effectively, this is a decrease of 6 points from last year and is below the EU average of 45%. Concerns have intensified, with 58% worried about children's online safety, up 4 points, and 44% about control over personal data, up 2 points. On the positive side, 57% value freedom of expression online, re satisfied with the level of digital skills, both figures remaining below the EU average. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 16 .

A competitive, sovereign and resilient EU based on technological leadership

Germany aims to become a technological leader and is investing massively in leading technologies (semiconductors, quantum etc.), but it should continue to increase its fibre network coverage, where it made a very positive progress in deployment over the past year. On infrastructure, Germany is second last in the EU on FTTP coverage with 29.8%, well below the EU average, however, with a strong growth (more than 10 percentage points from last year). To reach 100% coverage by 2030, it must continue deployment at this high growth rate. The necessary funding will come from both public and private sources, with the private sector forecast to invest EUR 50 billion in the coming years. The share of broadband retail lines with above 1 Gbps speeds is still very low at 5.45%, well below the EU average of 18.5%. At 98.1%, Germany is close to reaching full overall 5G household coverage. German authorities reported 87.3% stand alone-ready 5G coverage of Germany’s territory. However, the coverage in the 3.4-3.8 GHz band, which is needed for this technology to realise its full potential, is rather limited (43.8% household coverage). Moreover, only 16.5% of the German population uses 5G SIM cards in 2023, well below the EU average of 24.6%.

The digitalisation of enterprises is slowly gaining traction in Germany, as almost all relevant KPIs indicate an above-EU-average performance. Germany also hosts 67 unicorn companies, accounting for 25% of all EU unicorns. Innovative, technology-driven start-ups are supported by the ‘Future Fund’ with EUR 10 billion. Digital and technological sovereignty is one of the priorities Germany set in its Digital Strategy and the country is strongly involved in projects that will advance this goal in the area of semiconductors (IPCEI on microelectronics), data (Gaia-X) and cloud (IPCEI-CIS).

Recommendations – Germany should:

-CONNECTIVITY INFRASTRUCTURE: (i) Maintain the recent higher pace of deployment of the fibre infrastructure to reach the Digital Decade target. (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to continue the deployment of 5G stand-alone core networks.

-CLOUD: Ensure the broad uptake of the next generation of cloud infrastructure and services under development in the IPCEI-CIS by companies of all sizes, including by developing a country-specific dissemination strategy (complementing what has already been committed under IPCEI-CIS); contributing to the additional dissemination activities led by the Cloud IPCEI Exploitation Office.

-SMEs: Continue supporting the digitalisation of SMEs. 

-CYBERSECURITY: (i) Continue efforts in cybersecurity to address evolving threats and strengthen in this regard the collaboration between the state and the industry; (ii) Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

Protecting and empowering EU people and society

Germany is committed to enhancing the digital skills of the population and to training ICT specialists, but progress is slow, and it will require sustained efforts to digitalise public services. The level of digital skills of the population is slightly below the EU average, but slowly increasing. Skills development is a joint responsibility of the Federal Government and the Länder, meaning that a good cooperation is necessary. In recent years, Germany has launched several initiatives to develop digital skills. It included related measures in the Recovery and Resilience Plan and listed in its roadmap 17 measures that are relevant in this area with EUR 7.5 billion in support. The Digital Pact for Schools, with a budget of EUR 6.5 billion, supports the Länder in providing a minimum level of digital infrastructure and teaching-learning technologies in schools. However, this project is due to end in May 2024. A follow-up project (Digital Pact School 2.0) is being negotiated at the time of writing (March 2024). The proportion of ICT specialists in employment is slightly above the EU average. However, a challenge that Germany faces is the overall decline in the number of first year students due to demographical changes. The country will need to accelerate the pace of digitalisation of public services as it is below the EU average and even saw a slight decline in the related indicators.

As of April 2024, there were 157 17 digital public services available nationwide out of the 575 services that Germany had proposed to digitalise by the end of 2022 based on the Online Access Act. To promote the uptake of these services, Germany is increasingly focusing on the user friendliness of its digital public services. To this end, in February 2024, it adopted the Online Access Amendment Act (Onlinezugangsänderungsgesetz) 20/8093 . Germany is below the EU average in digitalisation of public services both for citizens (score 75.8 versus the EU average of 79.4) and businesses (78.6 versus 85.4).

Germany had an overall e-health maturity score of 87 in 2023, above the EU average of 79 and well above its score of 70 in 2022.

Recommendations – Germany should:

-BASIC DIGITAL SKILLS: Step up cooperation at all levels of administration to boost the digital skills of the population by 2030.  

-ICT SPECIALISTS: (i) Increase the attractiveness of STEM disciplines at school to boost the number of young people, including girls and women, interested in taking up ICT-related studies or careers; (ii) Design incentive schemes to attract/retain ICT specialists.

-DIGITAL PUBLIC SERVICES: Accelerate the digitalisation of public services for citizens and businesses.

-E-HEALTH: (i) Ensure that all data types are made available in a timely manner; (ii) Increase the supply of health data by onboarding more categories of healthcare providers.

Leveraging digital transformation for a smart greening

For Germany the green and digital twin transition is a top priority, underpinned by an action plan of the Federal Ministry of Education and Research (BMBF) Natural. Digital. Sustainable’ . This is the basis for the ‘Digital Sustainability Innovations’ initiative that creates specific funding to connect between digitalisation and sustainability. 18  German enterprises and people are generally sensitive to the green transition of the digital sector. Germany has brought a wealth of measures that aim to green the digital economy, ranging from the application of AI technologies, organising workshops to promoting implementation of the Blue Angel criteria. Germany is committed to monitoring the impact of ICT systems. The German National Regulatory Authority, the Bundesnetzagentur commissioned a study , published in 2023, which resulted in a set of indicators assessing the environmental sustainability of the telecommunications infrastructure. Four digitalisation measures were launched in Germany providing direct support for the green transition and that will also have a positive impact on the environment.

Recommendations – Germany should:

-Continue developing a coherent approach to twinning the digital and green transitions. First, continue promoting improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, continue supporting the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Demonstrate leadership and continue monitoring and quantifying the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing.

-Share its experience in developing resource-efficient AI technologies and its best practice in using AI to increase resource efficiency and material savings.

State of the Digital Decade 2024

Greece

  

1 Executive summary

Greece has scope to improve its performance to contribute to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.  

In 2023, Greece made notable progress in rolling out Fibre to the Premises (FTTP) connectivity infrastructure, and digitalising public services. However, important challenges persist in the share of ICT specialists in employment and in the basic level of digital intensity of SMEs. 

Although Greece still has a relatively low level of digital maturity, it has reversed the trend over the last 5 years. Greece’s digital transition draws on a strong political commitment and an overall digital transformation strategy spanning 2020-2025. It started by focusing specifically on digitalising public services for people and businesses, and sustained efforts are yielding tangible results. Ongoing action is also directed towards digitalising other crucial public sectors such as education, justice, healthcare, and to economic sectors that still have great untapped potential. Overall, these initiatives, in line with the European Semester’s country specific recommendations, benefited from funding under the Recovery and Resilience Facility at a crucial moment. However, since Greece started its digital transition late, some structural challenges are still pending. In particular, the lack of progress on digital skills of the population is a hurdle for digitalisation to steadily drive the country’s competitiveness and prosperity, despite high investments in digital education and training.

According to the special Eurobarometer survey Digital Decade 2024’ 19 , 75% of respondents in Greece said that the digitalisation of daily public and private services makes their life easier, slightly above the EU average of 73%.

Greece is very active in collaborating at EU level. Greece is a member of the Alliance for Language Technologies EDIC (ALT-EDIC) and of the EUROPEUM-EDIC on blockchain (both already set up). Greece is expected to be the hosting Member State of the possible future Connected Public Administration EDIC and of the possible future Cybersecurity Skills Academy EDIC. Greece is developing the Statute and other relevant documents of the possible future Genome EDIC, within an informal working group. It is also engaging in discussions on the setup of possible future Cancer Image Europe (EUCAIM) EDIC, within an informal working group 20 . Greece also participates in the IPCEI Microelectronics and Communication Technology (ME/CT) and in the EU Digital Wallet consortia: POTENTIAL, EWC, DC4EU.

Greece’s Recovery and Resilience Plan (RRP) allocates 22.1% of its total budget to the digital transition (EUR 7.78 billion) 21 with a strong priority on the transformation of the public administration and on digitising the economy, particularly SMEs. It is also investing significantly in increasing the digital skills of the population. Under Cohesion Policy, an additional EUR 2.7 billion (13% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 22 .



Greece

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

EL

EU

Fixed Very High Capacity Network (VHCN) coverage

27.9%

38.4%

37.9%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

27.9%

38.4%

37.9%

64.0%

13.5%

100%

-

Overall 5G coverage

85.7%

98.1%

14.5%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

12

1 186

95

10 000

SMEs with at least a basic level of digital intensity

37.7%

43.3%

7.2%

57.7%

2.6%

79.7%

90%

Cloud

15.2%

18.1%

9.1%

38.9%

7.0%

56%

75%

Artificial Intelligence

2.6%

4.0%

24.0%

8.0%

2.6%

32%

75%

Data analytics

NA

25.0%

NA

33.2%

NA

40%

75%

AI or Cloud or Data analytics

NA

33.5%

NA

54.6%

NA

75%

Unicorns

3

263

20

500

At least basic digital skills

52.5%

52.4%

-0.1%

55.6%

1.5%

70.2%

80%

ICT specialists

2.5%

2.4%

-4.0%

4.8%

4.3%

4.5%

~10%

eID scheme notification

No

Digital public services for citizens

64.6

75.9

17.5%

79.4

3.1%

98.2

100

Digital public services for businesses

73.7

86.2

17.0%

85.4

2.0%

100

100

Access to e-Health records

60.7

73.8

21.6%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Greece’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a very high ambition and, based on this document, intends to allocate significant effort to achieve the Digital Decade objectives and targets.

The roadmap is mostly complete and presents 14 national trajectories and targets to be achieved by 2030. The national targets set for connectivity, digital transformation of public services and e-health match the EU’s 2030 targets, but the targets for digital skills and for the digital transformation of businesses are below the EU’s 2030 targets. The roadmap contains a detailed analysis of the current state of play, and a comprehensive set of measures and initiatives designed to meet the objectives and targets of the Digital Decade to transform the country into a digitally advanced and inclusive society by 2030. It is based on the  Digital Transformation Bible  2020-2025, the country’s current national digital strategy. Funding for the digital transformation relies heavily on EU funds (RRF and cohesion policy funding).

The total public funding for the 104 measures in the roadmap is estimated at EUR 5 230.2 million (about 2.37% of GDP). The priorities are on the digital transformation of the public sector including the health sector, the digital transformation of the economy, and the uptake of advanced digital technologies by businesses. The roadmap also gives a rough estimate of private investments for the coming years in data centres and gigabit connectivity of EUR 6 900 million.

Recommendations for the roadmap

When adjusting the roadmap in accordance with Article 8(3) of the Digital Decade Policy Programme (DDPP) Decision, Greece should:

-TARGETS: Consider in due time reviewing all the national targets that are not aligned with the EU’s 2030 targets, and in particular the take up of cloud, data analytics and AI by enterprises, the target for which is currently low on ambition.

-MEASURES: Review and reinforce the strategy and measures to contribute to the targets (i) that are the most challenging to reach, such as digital infrastructure, ICT specialists; and (ii) that have a low level of ambition, the take up of cloud, data analytics and AI by enterprises. Provide additional details on how existing and planned measures for the digitalisation of SMEs will contribute to reaching the target for 2030; (iii) Provide more information on the implementation of digital rights and principles, including the national measures that contribute to it.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' provides insights into Greeks' perceptions of digital rights. Only 33% of Greeks believe that the EU protects their digital rights well, although this figure has increased by 1 point since last year, it remains significantly below the EU average of 47%. Concerns are escalating, with 62% worried about children's online safety, up 2 points, and 51% about control over personal data, while overall respondents seem to be more worried about their digital rights and principles than the EU average. On a positive note, 85% of respondents value digital technologies for connecting with friends and family, which is above the EU average of 83%. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 23 .

A competitive, sovereign and resilient EU based on technological leadership

With significant support from EU funds, Greece is taking action to start upgrading its digital and research infrastructure and to develop ecosystems for innovation in cutting-edge technologies, which are currently in their infancy. The country still faces several challenges. It lags behind on the deployment of fibre networks to deliver gigabit connectivity for all, although its National Broadband Plan 2021-2027 is starting to bear fruit. Moreover, all the indicators on the digitalisation of enterprises indicate a below EU average performance. Many SMEs have a relatively moderate level of innovation and a low level of digital maturity. In 2023, only 43.3% of SMEs had at least a basic level of digital intensity, below the EU average (57.7%). Businesses in Greece also have a low level of take up of advanced technologies such as AI, cloud, and data analytics in general. However, the dynamic start-up ecosystem is a positive sign of a digital ecosystem in development.

Recommendations – Greece should:

-CONNECTIVITY INFRASTRUCTURE: (i) closely monitor the progress on the gigabit coverage to identify early enough any remaining investment gaps to reach the target for 2030; (ii) ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-SEMICONDUCTORS, QUANTUM TECHNOLOGIES, EDGE NODES: Develop additional measures in due time to accelerate the deployment of digital and data infrastructure and promote the use of digital capabilities and the access to digital technologies.

-DIGITAL TRANSFORMATION OF BUSINESSES: Consider reinforcing the framework conditions to enable (i) less digitally mature SMEs to adopt digital transition; and (ii) all enterprises to benefit from the data economy by a rapid adoption of advanced technology (AI, cloud, data analytics) as a competitive advantage; (iii) stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS.

Protecting and empowering EU people and society

The concerted efforts made on digital transformation in recent years have resulted in a demonstrable and significant improvement in the public digital services available to citizens and businesses. This is expected to make a significant contribution to the country’s resilience and competitiveness. However, in terms of empowering people to benefit from opportunities created by an increasingly digitalised society and economy, Greece has not yet met the challenge of training its population in the level of digital skills needed, despite several recent measures, investments and reforms. In 2023, only 52.4% of the population had at least basic digital skills (EU average 55.5%), indicating no progress since the previous data collection in 2021. The number of ICT specialists in terms of the share of employment is 2.4%, far below the EU average (4.8%). However, in 2023, information technology was reported  to be the business sector in Greece with the highest score on intention to hire new professionals, with employment prospects reaching 27%.

Recommendations – Greece should:

-DIGITAL SKILLS: Review and consider whether additional targeted measures to train the population are sufficient to reach the target, boost the resilience of the economy and society and achieve inclusive growth.

-ICT SPECIALISTS: Reinforce the strategy and the measures to increase the number of ICT specialists and retain the best talents.

-e-ID: Greece should notify to the Commission an e-ID scheme under the eIDAS Regulation.

-e-Health: (i) Make the data types of medical imaging reports and medical images available to people through the online access service, (ii) Ensure that the online access service complies to web accessibility guidelines.

Leveraging digital transformation for a smart greening

Greece national roadmap mentions some measures related to the green transition in addition to the measures related to establishing more sustainable, energy- and resource-efficient digital infrastructure and technologies (e.g., sovereign cloud, edge nodes and 5G infrastructure). Greece also set goals in its national energy and climate plan and in the RRP for which digital technologies can be used as smart agents to trigger the green transition (e.g., smart meters). In 2023, a programme supported by cohesion policy funding has been launched for the ‘green transformation of SMEs’ to support projects aiming at developing and using modern technologies to upgrade their products, services and processes in terms of energy upgrading, the circular economy and the adoption of clean energy sources. However, a more comprehensive approach to make the digital sector more environmentally friendly and sustainable is missing. According to the Eurobarometer 2024 survey, 86% of respondents in Greece said that ensuring that digital technologies serve the green transition should be an important action for public authorities (above the EU average of 81%). In this regard the Data Centre that is operated by the General Secretariat of Information Systems and Digital Governance of the Ministry of Digital Governance has adopted and implemented the European Code of Conduct for Energy Efficiency in Data Centres

Recommendations – Greece should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructure, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs. 

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing. 

State of the Digital Decade 2024

Hungary

 

1 Executive summary

Hungary has untapped potential to contribute to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.  

In 2023, Hungary made notable progress in the area of broadband connectivity, enhancing basic 5G coverage, and in digitalisation of SMEs, in particular adoption to Cloud and Data Analytics. However, particularly important challenges persist in the area of digital skills, especially for the older generations, and in the adoption of advanced technologies such as AI at Hungarian enterprises. 

Hungary has the very ambitious and challenging objective to be among the 10 leading EU economies in terms of digitalisation by 2030. This is reflected in the National Digitalisation Strategy 2022-2030 , which is aligned with the EU Digital Decade Policy Programme. Although, there have been several changes to the Hungarian institutional system responsible for implementing the Digital Decade (transformation of ministries and their background institutions in the field of ICT), the responsibility for coordinating the initiatives led by different ministries is below ministerial level, in the hand of the Digital Hungary Agency.

According to the Special Eurobarometer survey ‘Digital Decade 2024’ 24 , 83% of respondents in Hungary said that the digitalisation of daily public and private services makes their life easier. This is the second highest score in the EU and significantly above the EU average of 73%.

Hungary is involved in 3 European Digital Infrastructure Consortia (EDICs) already set up or in development, including the already established Alliance for Language Technologies (ALT EDIC, already set up), the Local Digital Twins towards the CitiVERSE (already set up) and the Connected Public Administration (IMPACTS-EDIC in development).

The Hungarian Recovery and Resilience plan allocates EUR 1.7 billion (29.1% of the total allocation) to the digital transformation 25 , with priority given to e-Health and digital skills. Under Cohesion Policy, an additional EUR 2.5 billion (12% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 26 . 

Hungary

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

HU

EU

Fixed Very High Capacity Network (VHCN) coverage

80.3%

84.1%

4.8%

78.8%

7.4%

95%

100%

Fibre to the Premises (FTTP) coverage

70.1%

76.2%

8.7%

64.0%

13.5%

X

-

Overall 5G coverage

57.9%

83.7%

44.6%

89.3%

9.8%

99%

100%

Semiconductors

NA

Edge Nodes

5

1 186

X

10 000

SMEs with at least a basic level of digital intensity

34.5%

53.2%

24.2%

57.7%

2.6%

89%

90%

Cloud

20.6%

37.1%

34.2%

38.9%

7.0%

60%

75%

Artificial Intelligence

3.0%

3.7%

11.1%

8.0%

2.6%

24%

75%

Data analytics

NA

53.2%

NA

33.2%

NA

30%

75%

AI or Cloud or Data analytics

NA

65.6%

NA

54.6%

NA

75%

Unicorns

0

263

2

500

At least basic digital skills

49.1%

58.9%

9.5%

55.6%

1.5%

60%

80%

ICT specialists

4.1%

4.2%

2.4%

4.8%

4.3%

8.3%

~10%

eID scheme notification

No

Digital public services for citizens

67.9

73.4

8.1%

79.4

3.1%

96.3

100

Digital public services for businesses

76.3

74.9

-1.8%

85.4

2.0%

97.2

100

Access to e-Health records

79.9

86.0

7.6%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Hungary’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a high ambition however, based on this document, intends to allocate some effort to achieve the Digital Decade objectives and targets.

The roadmap is overall realistic and comprehensive, but rather cautious when setting targets. It sets 2030 targets and trajectories for 12 KPIs (VHCN, 5G, digital intensity, cloud, big data, AI, unicorns, digital skills, ICT specialists, digital public services for citizens and for businesses, and e-Health). The roadmap includes 2030 targets for all KPIs except for edge nodes. Two national targets (e-health, unicorns) fully correspond to the EU 2030 targets, while 4 national targets are very close to and overall line with the EU target (5G, digital public services for citizens and for businesses, SMEs with at least basic digital intensity). 6 targets are, however, below the EU targets (VHCN, digital skills, ICT specialists, Cloud services, data analytics and AI). In terms of measures, Hungary’s roadmap, which was adopted and published in December 2023, presents a comprehensive overview of the nation's digital strategy. The total budget of measures amounts to EUR 2.4 billion (around 1.2% of GDP) with priority given to digital skills and digital infrastructure. In addition, some of the DDPP’s objectives, such as those relating to the green transition, competitiveness, sovereignty, leadership, and resilience, including cybersecurity, were also reflected in the document.

Recommendations for the roadmap

Hungary should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Propose national target values and trajectories for edge nodes, and formalise the trajectory for FTTP; (ii) Increase the VHCN target, to be closer to the EU’s target, given the country’s good starting point and its current rate of progress; (iii) Consider more ambitious targets for the cloud and data analytics technologies take-up by enterprises to be closer to the EU’s targets, as the current performance of these indicators are already above the targets defined in the roadmap of Hungary; (iv) Define a more ambitious target for digital skills closer to the EU’s target, as the current national target is almost achieved according to the 2023 value.

-MEASURES: Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' offers key insights into Hungarians' perceptions of digital rights. 60% of Hungarians believe that the EU protects their digital rights well, significantly above the EU average of 47%. While some concerns have grown, notably regarding the freedom of online association and online safety for children (both by 5 percentage points), Hungarians remain overall more confident compared to the EU average. On the positive side, a significant 70% is satisfied with the level of digital skills, and 68% appreciate aspects such as access to affordable high-speed internet or environmentally friendly online services. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 27 .

A competitive, sovereign and resilient EU based on technological leadership

To underpin its technological leadership and competitiveness, Hungary is equipped with strong digital infrastructures and is making good progress on deployment. It should, however, focus more on the digitalisation of its businesses. On infrastructures, Hungary is above the EU average for VHCN and is also very close to the EU’s average for 5G. Thanks to the strategic agreements with the major telecommunication service providers, committing to coverage figures corresponding to the National Digitalisation Strategy of Hungary, the country is on track to reach the VHCN and 5G targets defined for 2030. Despite the significant increase in the take up of advanced technologies, most businesses, in particular SMEs, are not yet reaping all the benefits of these digital technologies, due to a lack of digital skills. This in turn has a negative impact on the competitiveness of the economy, however the favourable results in Data Analytics can potentially be a breakout point for the economy. Significant progress has been made in the digitisation of SMEs as a 24.2 % improvement can be seen approaching the EU average. The initiatives planned in the strategically important defence industry and cybersecurity will unfortunately not yield results in the next years.

Recommendations – Hungary should:

-CONNECTIVITY INFRASTRUCTURE: (i) Sustain and increase efforts to ensure full gigabit and 5G coverage, in line with the EU level of ambition. (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-SMEs: Continue its efforts through initiating new supporting programmes and incentives- to support the digital transformation of SMEs and increase resources for existing schemes, including a focus on cloud adoption by SMEs.

-AI/CLOUD/DATA ANALYTICS/EDGE NODES: (i) Provide further support for capital investment in cloud computing, artificial Intelligence, data analytics, and other cutting-edge technologies; (ii) Ensure the broad uptake of the next generation of cloud infrastructure and services under development in the IPCEI-CIS by companies of all sizes, including by developing a country-specific dissemination strategy (complementing what has already been committed under IPCEI-CIS); contributing to the additional dissemination activities led by the Cloud IPCEI Exploitation Office; (iii) Consider measures specific to edge nodes deployment, supplementary to the IPCEI-CIS participation.

Protecting and empowering EU people and society

Digital skills are increasingly becoming a requirement for people seeking employment in industry and services. However, the gap is widening between routine users of digital tools and those who are not interested in taking courses to upskill, with the latter group accounting for almost half of the workforce. Although businesses have been focusing on optimising operations and retaining their talents, demand for specific ICT specialists is still huge, especially in the area of AI, Cloud and Cybersecurity. On the other hand, significant progress has been made in at least basic digital skills, showing a 9.5% increase, surpassing the EU average: 58.9% of people in HU have at least basic digital skills (EU average is 55.6%). Gaps remain significant, however, among the older generations and vulnerable groups.

Although over 70% of the Hungarian population already possesses an e-ID, its use is limited to within the country. Hungary’s roadmap sets out several measures aimed at accelerating the transition to the new mobile e-ID solution, which should bring results by 2026, and which will be the key to cross-border use as well.

As regards the availability of key digital public services for citizens and businesses, Hungary remains below the EU average. On access to electronic health records, instead, Hungary is already well advanced. Its new mobile application, which provides access to Health records, has become the county’s most widely used mobile digital public service. The main gaps in Hungary's eHealth maturity are the inability to authenticate with a (pre)notified e-ID and the fact that the access service does not follow guidelines on web accessibility.

Recommendations – Hungary should:

-BASIC DIGITAL SKILLS: Accelerate its efforts to bridge the digital divide through developing and investing in inclusion policies focusing on vulnerable groups, such as the low-skilled, the unemployed, people over 55, persons with disabilities and the Roma.

-ICT SPECIALISTS: (i) Keep up their high rate of ICT graduates but focus more on attracting women to the study field; (ii) Monitor closely the implementation of existing measures to boost the number of ICT specialists in the shorter term and continue measures to increase the percentage of women in ICT careers; (iii) Increase efforts to reduce the cybersecurity skills gap.

-KEY DIGITAL PUBLIC SERVICES: Accelerate its efforts to digitalise public services for citizens and businesses 

-e-ID: Notify to the Commission an e-ID scheme under the eIDAS Regulation.

-e-Health: (i) Make the data type of medical images available to citizens through the online access service. (ii) Enhance the authentication method for logging in to the online access service by using a (pre)notified e-ID. (iii) Ensure that the online access service complies to web accessibility guidelines.

Leveraging digital transformation for a smart greening

The green transition and sustainability are key trends within the digitalisation in Hungary, with the increased energy prices being the main forces behind the changes. As part of the modified Recovery and Resilience Plan submitted by Hungary in 2023, several measures set out in the REPowerEU chapter will address the challenges related to the green transition, including the digitalisation of the electricity grids.

Recommendations – Hungary should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing.

-Support digital players, including telecom service providers, to accelerate the transition of their network infrastructure to greener, less energy intensive solutions.

State of the Digital Decade 2024

Ireland

 

1 Executive summary

Ireland brings a positive contribution to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.  

In 2023, Ireland made notable progress in FTTP infrastructure and invested significantly in the digital literacy of its population. However, significant challenges persist in addressing the ICT specialists’ gap and in advancing e-Health initiatives, where progress is still slow.

As stated in the national digital framework Harnessing Digital, Ireland’s goal is to be a digital leader at the heart of European and global digital developments.

To reinforce the recognition of Ireland’s digital prowess both internally and on the international stage, the country continues to prioritise strategic initiatives aimed at bolstering digital infrastructure, fostering innovation and ensuring digital sovereignty. In addition, Ireland’s commitment to improving the digital literacy and skills of its population further solidifies its position as a global leader in the digital landscape. By collaborating with industry stakeholders, academia, and government agencies, Ireland is set to accelerate its digital transformation even further, to contribute significantly to the EU’s Digital Decade objectives, and to strengthen its position as a digital frontrunner on the global stage.

While the deployment of 5G networks is progressing steadily and is in line with the EU average, Ireland has been slow in deploying 5G service in the 3.6 GHz band, which is the only spectrum band currently available to deliver high performance 5G services to a large proportion of the population and for business-to-business (B2B) communications. Irish operators should be encouraged to accelerate such 5G deployment in mid band.

According to the Special Eurobarometer ‘Digital Decade 2024’ 28 , 76% of the Irish respondents consider that the digitalisation of daily public and private services makes their life easier, above the EU average of 73%. Ireland is the third largest exporter of digitally delivered services in the world 29 .

The country is a member of the Alliance for Language Technologies European Digital Infrastructure Consortium (ALT-EDIC) which has already been established and addresses the scarcity of European language data needed for AI solutions 30 .

Ireland allocates 34% of its total Recover and Resilience plan to digital (EUR 313 million) 31 . Under Cohesion Policy, an additional EUR 54 million (5% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 32 .



Ireland

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

IE

EU

Fixed Very High Capacity Network (VHCN) coverage

83.8%

87.0%

3.8%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

72.1%

78.5%

8.9%

64.0%

13.5%

x

-

Overall 5G coverage

83.9%

85.3%

1.7%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

24

1 186

x

10 000

SMEs with at least a basic level of digital intensity

64.2%

66.1%

1.5%

57.7%

2.6%

90%

90%

Cloud

47.4%

53.1%

5.8%

38.9%

7.0%

75%

75%

Artificial Intelligence

7.9%

8.0%

0.6%

8.0%

2.6%

75%

75%

Data analytics

NA

37.1%

NA

33.2%

NA

75%

75%

AI or Cloud or Data analytics

NA

64.1%

NA

54.6%

NA

75%

Unicorns

12

263

x

500

At least basic digital skills

70.5%

72.9%

1.7%

55.6%

1.5%

80%

80%

ICT specialists

6.3%

6.2%

-1.6%

4.8%

4.3%

9.6%

~10%

eID scheme notification

Yes

Digital public services for citizens

81.1

81.2

0.2%

79.4

3.1%

100

100

Digital public services for businesses

100.0

100.0

0.0%

85.4

2.0%

100

100

Access to e-Health records

0.0

11.4

79.1

10.6%

80

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Ireland’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a high ambition and, based on this document, intends to allocate very significant effort to achieve the Digital Decade objectives and targets.

Ireland's national strategic roadmap is aligned with the EU Digital Decade Policy Programme and sets out a comprehensive plan with all sections completed. While the challenges, strengths, and assets are clearly indicated, important information, notably on targets FTTP, edge nodes, and unicorns are missing. The roadmap outlines 59 measures with an estimated budget of EUR 14.9 billion (2.9% of GDP) that are aligned with the targets and objectives of the Policy Programme and the European Declaration on Digital Rights and Principles. Building on existing strategies such as the national digital strategy ‘Harnessing Digital’, Ireland focuses on digital public services, ICT specialists, and connectivity, with a major emphasis on measures to support unicorns. The roadmap strikes a balance between private and public needs, aligning with the Digital Decade goals of enhancing competitiveness, cybersecurity, and citizen empowerment. Overall, Ireland’s roadmap is consistent and innovative, positioning the country on track to meet the EU’s digital targets.

Recommendations for the roadmap

Ireland should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Prioritize setting clear and measurable targets for all key areas outlined in the national strategic roadmap, including FTTP, edge nodes and unicorns. (ii) Increase efforts to achieve the EU-level target on e-Health, in line with the requirements under the upcoming European Health Data Space regulation.

-MEASURES: (i) Enhance the analysis and evaluation of measures included in the national strategic roadmap by providing comprehensive information on expected impacts and budget allocations for each measure, including RRP contribution. (ii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

Digital rights and principles

The Special Eurobarometer Digital Decade 2024 provides insights into Irish perceptions of digital rights. Although there is a decline of 7 points since last year, 62% of Irish respondents still believe the EU protects their digital rights, slightly above the EU average of 45%. Concerns have increased, with 41% worried about children's online safety, up 13 points, and 32% about control over their digital legacy, up 11 points. On the positive side, 70% appreciate the existence of digital skills, and 63% trust in the freedom of assembly online, both well above the EU averages. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 33 .

A competitive, sovereign and resilient EU based on technological leadership

Ireland’s strategic initiatives are closely aligned with the EU’s goals of advancing digital infrastructure, fostering research and innovation, and safeguarding digital sovereignty. Initiatives like the National Broadband Plan and the deployment of high-speed fibre networks demonstrate Ireland’s commitment to meeting the EU’s Digital Decade targets for connectivity infrastructure and ensuring resilient and accessible digital systems for citizens and businesses alike.

By supporting EU-wide digital ecosystems and innovative enterprises with initiatives such as the Digital Transition Fund and the SME Growth Plan, Ireland demonstrates its dedication to competitiveness and digital sovereignty. By prioritising cloud, AI and data analytics technologies uptake, Ireland aims to accelerate the digital transformation and nurture potential digital leaders, in line with the EU's vision. Furthermore, Ireland’s focus on research and innovation underscores its commitment to driving digital progress and addressing key RDI challenges. With plans to set up a new research funding agency by 2024, Ireland is poised to further boost its position as a leader in digital innovation within the EU.

Recommendations – Ireland should:

-CONNECTIVITY INFRASTRUCTURE: (i) Continue efforts to ensure full gigabit and 5G coverage, including by addressing operational bottlenecks such as permissions for telecoms mast deployment to extend mobile coverage. (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-EDGE NODES: Explore opportunities for public-private partnerships and leverage funding mechanisms to support the rollout of edge nodes infrastructure.

-CLOUD/AI/DATA ANALYTICS: (i) Develop targeted programs and incentives to encourage enterprises and SMEs to adopt Big Data and AI and leverage their potential for innovation and growth; (ii) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS.

-UNICORNS: Increase funding mechanisms such as the Digital Transition Fund and Seed and Venture Capital Scheme to support digital entrepreneurship and nurture potential unicorns.

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

Protecting and empowering EU people and society

Ireland has made significant strides towards achieving the EU’s Digital Decade target for basic digital skills, with 72.9% of the population having at least basic digital skills, surpassing the EU average. Key initiatives such as Adult Literacy for Life and the Digital Strategy for Schools have played a vital role in promoting digital literacy across society. Efforts such as the STEM (science, technology, engineering, and mathematics) Education Implementation Plan demonstrate Ireland’s commitment to empowering people through education and skill development, while addressing the demand for ICT specialists reflects a concerted approach to bridging divides and fostering digital readiness in the workforce.

Ireland is also advancing its digital public services to enhance inclusion and accessibility. Initiatives such as a national procurement framework and setting up Shared Government Data Centre facility reflect the country’s efforts to modernise public services and promote efficiency. The investments in digital health initiatives further highlight Ireland’s dedication to leveraging technology for healthcare accessibility and patient empowerment, driving its digital transformation agenda forward.

Recommendations – Ireland should:

-ICT Specialists: Expand apprenticeship programs, reskilling, and upskilling initiatives to meet the growing demand for ICT specialists, through a structural reform of the National Training Fund. Efforts should be continued in bridging the gender gap.

-e-ID: Notify to the Commission an e-ID scheme under eIDAS Regulation, while leveraging digital schemes such as MyGovID and the EU Digital Identity Wallet to improve access to essential services under eIDAS.

-e-Health: (i) Expand the coverage of the online access service to ensure that all citizens can access their electronic health data online. (ii) Make further data types available to citizens through the online access service. (iii) Increase the supply of health data by onboarding more categories of healthcare providers.

Leveraging digital transformation for a smart greening

The latest Eurobarometer results reveal strong public support in Ireland, with 89% of respondents emphasising the role of digital technologies in the green transition. To deliver on its commitment to reduce emissions, Ireland is focusing on integrating green and digital transitions into future enterprise policy. Initiatives such as the Circular Economy Act and the Build Digital project reflect the country’s efforts to promote sustainability in the digital sector. Challenges remain, with only 20% of businesses implementing energy-efficient measures for ICT equipment. However, government initiatives, such as the National Remote Work Strategy and the new data processing centre, aim to mitigate environmental impact while maximizing digital benefits. Regulatory bodies contribute to sustainability efforts, highlighting a comprehensive approach to advancing environmental goals within the digital landscape.

Recommendations – Ireland should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing.

State of the Digital Decade 2024

Italy

  

1 Executive summary

Italy has untapped potential to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.  

In 2023, Italy made progress in the area of e-government, in particular in e-health and key digital public services for businesses and continued to advance on gigabit networks roll-out. However, despite some progress, particularly important challenges persist in digital skills, while Italian enterprises lag behind in the adoption of advanced technologies such as AI.

In recent years, also building on the Recovery and Resilience Plan, Italy put in place significant efforts for the digital transformation of the country, intensifying initiatives to digitalise the public administration, support the digitalisation of enterprises and improve digital skills across the country. Additionally, Italy can count on a robust foundation in areas as such as semiconductors, edge computing and quantum, which are key for the country’s position and technological leadership.

According to the Special Eurobarometer Digital Decade 2024’ 34 , 71% of the Italians consider that the digitalisation of daily public and private services is making their life easier (73% in the EU), a figure that needs to be improved by bringing all citizens on board.

Participating in joint efforts with other EU Member States also remains crucial. Currently, Italy is involved in nine European Digital Infrastructure Consortia (EDICs) already set up or in the making 35 , and in the Important Projects of Common European Interest (IPCEI) in the area of cloud infrastructure and services and microelectronics.

Italy allocates 25.6% of its total Recovery and Resilience Plan to digital (EUR 47 billion) 36 , which represents a significant opportunity but remains insufficient to fully reach the Digital Decade targets and requires strong focus on implementation and alignment with the various existing strategic plans. Under Cohesion Policy, an additional EUR 5.5 billion (13% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 37 . 



Italy

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

IT

EU

Fixed Very High Capacity Network (VHCN) coverage

53.7%

59.6%

11.0%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage (2)

53.7%

59.6%

11.0%

64.0%

13.5%

100%

-

Overall 5G coverage

99.7%

99.5%

-0.2%(3)

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

77

1 186

946

10 000

SMEs with at least a basic level of digital intensity

60.3%

60.7%

0.3%

57.7%

2.6%

90%

90%

Cloud

51.9%

55.1%

3.0%

38.9%

7.0%

74%

75%

Artificial Intelligence

6.2%

5.0%

-10.2%(4)

8.0%

2.6%

60%

75%

Data analytics

NA

26.6%

NA

33.2%

NA

60%

75%

AI or Cloud or Data analytics

NA

63.1%

NA

54.6%

NA

75%

Unicorns

7

263

16

500

At least basic digital skills

45.6%

45.8%

0.2%

55.6%

1.5%

74.6%

80%

ICT specialists

3.9%

4.1%

5.1%

4.8%

4.3%

7.3%

~10%

eID scheme notification

Yes

Digital public services for citizens

67.9

68.3

0.5%

79.4

3.1%

100

100

Digital public services for businesses

74.7

76.3

2.1%

85.4

2.0%

100

100

Access to e-Health records

71.3

82.7

15.9%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics.

(2) The indicator on VHCN coverage and the indicator on FTTP coverage coincide.

(3) The variation does not reflect a change in coverage, but it is the consequence of small refinements in criteria adopted to estimate the coverage.

(4) The variation between the two years is not considered statistically significant but in line with the stagnation of this indicator.

National Digital Decade strategic roadmap

With respect to Italy’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a very high ambition and, based on this document, intends to devote significant effort to achieve the Digital Decade objectives and targets. However, the formal adoption and publication of the roadmap at the national level, which is crucial for the country to fully commit towards these ambitions, is still pending.

The roadmap provides a complete overview, covering all targets to 2030. While targets are generally ambitious and in line with the EU targets, those on basic digital skills and ICT specialists and on the uptake of Artificial Intelligence (AI) and data analytics remain below the EU levels, reflecting only the measures currently in place. The roadmap outlines a total of over 60 policy measures with a budget of over EUR 32 billion (about 1.6% of GDP). Accent is on improving digital skills, ICT specialists and digital public services. However, some areas, including unicorns and uptake of AI, lack targeted measures. A more comprehensive approach could be taken regarding the country's position in key technology areas, such as semiconductors and quantum.

Recommendations for the roadmap

Italy should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Provide a trajectory for the target on unicorns; (ii) Consider aligning the level of ambition of targets for basic digital skills, ICT specialists and technologies take up (AI, cloud, data analytics) to the EU’s target.

-MEASURES: (i) Strengthen and/or better tailor the measures contributing to targets that are the most difficult to achieve, especially for skills, ICT specialists, take up of AI and big data analytics; (ii) Specify the measures that support the target on unicorns; (iii) Consider providing a more comprehensive analysis and overview of the measures and strategies for semiconductors and quantum; (iv) Review the budget description of all measures, ensuring completeness and accuracy; (v) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

-CONSULTATION: Organize a consultation process on the roadmap, according to the national rules, and report on it.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' reveals that, in Italy, 49% of the population believes the EU protects their digital rights well, and while it marks a 6-point decline from the previous year, still remains above the EU average of 45%. Confidence in digital privacy stands at 57%, also above the EU average. Concerns include the safety of digital environments for children, with 45% expressing worry, and 40% are concerned about control over personal data. Despite these concerns, 83% of Italians recognize the importance of digital technologies for accessing public services, and 81% for connecting with friends and family, highlighting a strong appreciation for digital advancements. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 38 .

A competitive, sovereign and resilient EU based on technological leadership

The country is making progress in deploying connectivity networks, while advanced technologies such as edge, quantum and semiconductors are increasingly gaining attention. Sustaining this momentum should remain a priority in order to strengthen the country’s capabilities and positioning. While Italy is advanced in general 5G coverage, continued and rapid progress to deploy fixed Very High-Capacity Networks (VHCN), and specifically fibre-to-the-premises networks (FTTP), is needed, next to increased efforts to link the connectivity infrastructure with cloud and edge computing capabilities. In addition, more efforts should be devoted to improving the Quality of Service of 5G networks and provide on a large scale the superior performance that is needed for advanced use cases, especially for business-to-business (B2B) communications.

The presence of key projects and centres of excellence in quantum capabilities could boost Italy's ambitions in the field, but the level of investment needs careful assessment. The semiconductor sector is gaining attention with growing investments, requiring a coherent vision and sustained efforts.

The uptake of technologies is relatively high among Italian enterprises, including SMEs. However, major gaps remain in the use of AI and in the area of innovative and high-growth enterprises (unicorns). Scaling up enterprises in Italy remains difficult, hindered by a generally weak ecosystem and limited venture capital investments.

Recommendations – Italy should: 

-CONNECTIVITY INFRASTRUCTURE: (i) Continue to deploy FTTP ensuring a high growth rate and strengthen efforts to develop connectivity infrastructures coherently and jointly with cloud and edge computing capabilities exploiting the potential of the country’s 5G network; (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks. 

-SEMICONDUCTORS AND QUANTUM: Continue the efforts in the semiconductors sector and increase investments in quantum technologies also within the frame of EU initiatives and in view of contributing to the European Chips Act.

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-AI/CLOUD/DATA ANALYTICS: 

o(i) Strengthen measures targeted to the adoption of technologies by enterprises, with particular attention to AI and looking at the barriers and drivers specific to the national context.

o(ii) Ensuring the broad uptake of the next generation of cloud infrastructure and services under development in the IPCEI-CIS by companies of all sizes, including by developing a country-specific dissemination strategy (complementing what has already been committed under IPCEI-CIS); contributing to the additional dissemination activities led by the Cloud IPCEI Exploitation Office. 

-UNICORNS: Strengthen actions to sustain the ecosystem of start-ups and innovative enterprises, including boosting the availability of effective financial tools, initiatives to support the scale up of enterprises, in particular in strategic sectors, building synergies between research and industrial systems.

Protecting and empowering EU people and society

The country’s major gaps remain in digital skills, impacting efforts to close the digital divides and hindering competitiveness. Despite the roadmap’s focus and Italy's numerous recent initiatives, only 45.8% of people in Italy have at least basic digital skills and the share of ICT specialists in employment remains limited, while demand by enterprises for these skills is surging.

Italy performs well on the deployment of the Electronic Health Records and its action to strengthen access to key digital public services continued in 2023, but further efforts are needed. Italy has two certified eIDAS digital identity schemes and is contributing to the work for the deployment of the EU Digital Identity Wallet. The Electronic Health Record (EHR) has been introduced in all regions. However, the availability of digital public services for citizens was still below the EU average in 2023. The ongoing major e-government projects and investments are not yet showing their full impact.

Recommendations – Italy should:

-BASIC DIGITAL SKILLS: Increase efforts to boost digital skills across all target groups with tailored interventions, including by: (i) strengthening services to accompany citizens in the use of digital tools; (ii) expanding digital educational programmes in schools and increasing interest in STEM (Science Technology Engineering and Mathematics) and ICT disciplines; (iii) and incentivising reskilling and upskilling paths for workers.

-ICT SPECIALISTS: (i) Increase ICT programmes in higher education, including the strengthening of ITS Academies, in connection with the job market needs and in collaboration with industry; (ii) take specific measures to increase participation of women in ICT education and in the ICT careers; (iii) consider measures to attract and retain ICT specialists

-KEY DIGITAL PUBLIC SERVICES: Continue efforts to digitalise public services, focusing on user-friendliness and interoperability to further increase simplification and re-use of information available to public administrations.

-E-HEALTH: (i) Increase the supply of health data by onboarding more categories of healthcare providers; (ii) build on existing legal provisions and implement access opportunities for legal guardians, authorised persons and disadvantaged groups; (iii) make all types of medical images available to citizens in a timely manner and in all regions through the online access service, including through mobile applications.

Leveraging digital transformation for a smart greening

The Recovery and Resilience Plan is boosting initiatives twinning the green and digital transition. The adoption of the ‘Transition 5.0’ plan, part of the REPowerEU chapter, promotes the transition of enterprises through investment to reduce their energy consumption. The plan also includes measures on advanced climate change monitoring and support for smart transport systems in three pilot cities. These efforts complement existing initiatives in urban energy management, strategic asset utilisation, and innovative public procurement.

Recommendations – Italy should:

-Continue and intensify the efforts to join up the twin green and digital transition, also leveraging advanced technologies and scaling up successful initiatives.

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in  view of future policy development, as well as of attracting relevant financing. 

(1)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(2)

Information last updated on 31 May 2024.

(3)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(4)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(5)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

(6)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(7)

Information last updated on 31 May 2024.

(8)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(9)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(10)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

(11)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(12)

Information last updated on 31 May 2024.

(13)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(14)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(15)

No concrete number was provided in the roadmap. The target is assumed by the European Commission, which uses Dealroom as database. For DESI 2023, the European Commission determined 61 unicorns in Germany. Germany does not have direct access to the data and therefore cannot take any responsibility for comparability with other countries or for completeness and accuracy. In the event of a change in the database, the target would have to be adjusted if necessary.

(16)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

(17)

  https://dashboard.digitale-verwaltung.de/

(18)

  Digitalisierung und Nachhaltigkeit - BMBF

(19)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(20)

Information last updated on 31 May 2024.

(21)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(22)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(23)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

(24)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(25)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(26)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(27)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

(28)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(29)

World Trade Organization (2023) Global Trade Outlook and Statistics.

(30)

Information last updated on 31 May 2024.

(31)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(32)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(33)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

(34)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(35)

Information updated on 31 May 2024.

(36)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(37)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(38)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

Top

Brussels, 2.7.2024

COM(2024) 260 final

ANNEX

to the

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2024


Annex 3: Short EU 27 Member States reports

 


 

State of the Digital Decade 2024

Latvia


1 Executive Summary

Latvia has untapped potential to contribute to the EU’s Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Latvia made notable progress in the digitalisation of SMEs, the overall uptake of cloud and in the digitalisation of public services for businesses. However, particularly important challenges persist in improving citizens digital skills and strengthening the overall connectivity infrastructure, both gigabit and 5G.

Digitalisation is a priority for the Latvian authorities. It is included in several national strategies such as the Digital Transformation Guidelines 2021-2027, Electronic Communications Sector Development Plan for 2021-2027, National Industrial Policy Guidelines (2021-2027) and National Development Plan 2021-2027. Latvia ranks below the EU average for digital infrastructures, despite showing a strong annual growth. Latvia is progressing in the digitalisation of public services for citizens and enterprises, while at the same time falling below the EU average in basic digital skills, digitalisation of SMEs.

According to the Special Eurobarometer ‘Digital Decade 2024’ 1 , 78% of Latvians consider that the digitalisation of daily public and private services is making their life easier, which is above the EU average of 73%.

Latvia is a member of the existing Alliance for Language Technologies EDIC (ALT EDIC) and Local Digital Twins towards CitiVERSE EDIC and is engaging in discussion on the setting up of Cancer Image Europe (EUCAIM) EDIC with an informal working group. The country also participates with indirect participants in the IPCEI Next Generation Cloud Infrastructure and Services 2 .

The Latvian RRP dedicates 23% of the plan to foster the digital transition (EUR 416 million) 3 with a focus on improving basic digital skills, increasing the uptake of digital solutions, and the number of ICT specialists. Under Cohesion Policy, an additional EUR 0.5 billion (11% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 4 .



Latvia

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

LV

EU

Fixed Very High Capacity Network (VHCN) coverage

62.7%

71.5%

13.9%

78.8%

7.4%

53%

100%

Fibre to the Premises (FTTP) coverage

60.9%

61.9%

1.6%

64.0%

13.5%

x

-

Overall 5G coverage

42.0%

53.1%

26.5%

89.3%

9.8%

70%

100%

Semiconductors

NA

Edge Nodes

3

1 186

x

10 000

SMEs with at least a basic level of digital intensity

38.1%

48.2%

12.5%

57.7%

2.6%

90%

90%

Cloud

22.2%

29.0%

14.3%

38.9%

7.0%

75%

75%

Artificial Intelligence

3.7%

4.5%

10.3%

8.0%

2.6%

75%

75%

Data analytics

NA

36.9%

NA

33.2%

NA

75%

75%

AI or Cloud or Data analytics

NA

48.2%

NA

54.6%

NA

75%

Unicorns

0

263

2

500

At least basic digital skills

50.8%

45.3%

-5.5%

55.6%

1.5%

70%

80%

ICT specialists

4.4%

4.4%

0.0%

4.8%

4.3%

10%

~10%

eID scheme notification

Yes

Digital public services for citizens

87.2

88.2

1.2%

79.4

3.1%

100

100

Digital public services for businesses

85.8

87.2

1.6%

85.4

2.0%

100

100

Access to e-Health records

78.8

84.8

7.6%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Latvia’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a high ambition and, based on this document, intends to allocate significant effort to achieve the Digital Decade objectives and targets.

The roadmap is overall ambitious and coherent including on objectives but with some weaknesses in the digitalisation of enterprises. The roadmap covers all objectives of the Digital Decade such as a human centred digital space, resilience and security, sovereignty, green, and protection of the society with a high level of ambition, especially on the human centricity, and sovereignty.

The roadmap includes all 2030 KPIs provides limited information on progress for semiconductors, edge nodes and FTTP. All, but three national targets (basic digital skills, gigabit and 5G connectivity) are aligned with EU 2030 targets. The roadmap does not provide a national target nor trajectory on FTTP nor edge nodes. In total, the roadmap presents 47 measures.

A public consultation on the roadmap resulted in extensive feedback including from the social partners and non-governmental organisations (NGOs). Latvia has taken this feedback, and the Commission’s recommendations from the 2023 report on the Digital Decade into account in the version submitted.

The roadmap’s total budget is estimated at EUR 1 539 million (about 4.5% of its GDP) with priorities set on developing unicorns, SME take-up and take-up of cloud/AI/big data. Some aspects require further effort, especially in raising the level of digital skills.

Recommendations for the roadmap

Latvia should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Propose a target and trajectory for FTTP and edge nodes. (ii) Align the level of ambition of targets for at least basic digital skills, VHCN, and 5G with the EU targets.

-MEASURES: (i) Strengthen measures and increase funding for at least basic digital skills, VHCN, and 5G to be able to align its national targets with the Digital Decade target. (ii) Increase funding for digitalisation of businesses and digital skills to be able to reach targets for digital intensity of SMEs, uptake of cloud, AI, data analytics, and for ICT specialists. (iii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' reveals key insights into Latvian perceptions of digital rights. Only 42% of Latvians believe the EU protects their digital rights well, a significant 16-point decrease from last year, and 3 points lower than the EU average. Confidence in digital privacy is at 48%, also 3 points lower than the EU average. Concerns include the safety of digital environments for children (56% concerned) and control over personal data (38% concerned), with a notable decline in confidence. Positive trends include the importance of digital technologies for connecting with friends and family (90%), significantly above the EU average of 83%. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 5 .

A competitive, sovereign and resilient EU based on technological leadership

When it comes to reaching a technological leadership for a competitive, sovereign, and resilient EU Latvia is falling behind on connectivity infrastructure, while showing impressive growth and ambition in terms of SMEs’s digital uptake. In terms of FTTP coverage, Latvia is below the EU average with an annual growth rate significantly below the EU average. As regards VHCN and 5G coverage, Latvia also falls below the EU average, though in this case the growth rate is more consistent (above the EU average). Latvia has an uphill challenge to establish a good digital infrastructure. In this respect it is focusing on targeted public support measures to deploy of middle and last mile network segments. Latvia is showing progress in semiconductors and quantum computing, while demonstrating extremely limited initiatives in edge nodes. Furthermore, the indicators on the digitalisation of businesses (basic intensity of SMEs and take-up of data analytics, AI, or cloud) all point to a performance below the EU average, however, show a remarkable growth. Latvia is focusing on cybersecurity, demonstrated by the launch of their Cybersecurity Strategy 2023-2026, measures targeting cybersecurity infrastructure and multi-country collaboration, which is especially important due to their geopolitical position.

Recommendations – Latvia should:

-CONNECTIVITY INFRASTRUCTURE: (i) Continue the ongoing efforts to support VHCN, FTTP and significantly increase efforts for 5G rollout, including by fostering private investment and by stimulating take-up. (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-CYBERSECURITY: (i) Implement cyber security classes in the formal education in relevant study programs; (ii) Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks. 

-EDGE NODES: Consider measures specific to edge nodes deployment, supplementary to the IPCEI-CIS participation.

-DIGITALISATION OF ENTEPRISES: Establish and sustain ambitious initiatives to further increase the digitalisation of SMEs.

-CLOUD/AI/DATA ANALYTICS: (i) Continue, expand, and accelerate public and private investments in the uptake of Cloud/AI/Data analytics. (ii) Support the broad uptake of the next generation of cloud infrastructure and services under development in the IPCEI-CIS by companies of all sizes, including by liaising with the direct participants to develop a country-specific dissemination strategy reaching beyond the participating organisations.

Protecting and empowering EU people and society

Latvia is working towards delivering an inclusive digital transition. This will, however, require sustained and ambitious efforts to increase the level of digital skills of the population. The level of basic digital skills of the population is below the EU average; with a significant decrease compared to last years’ report, due to post-COVID-19 effects (i.e., lower usage of ICT tools). Over the last years, Latvia has made the development of digital skills a national priority. The country and has as a result integrated digital skills training at various stages, from early formal and non-formal education, employed people, adult learning, individual learning account approach, and e-learning. It is crucial that Latvia continues, sustains, and increases efforts to improve at least basic digital skills, as this impacts all the digital targets. Latvia is implementing measures specifically targeting girls and women, to boost their basic digital skills and increase the number of female ICT specialists, to maintain their performance above the EU average. The ambition of the EU’s Digital Decade will require sustained efforts considering the relatively slow evolution of increase of digital skills. The digitalisation of public services, and development of e-health and e-ID is progressing well, above the EU average.

Recommendations – Latvia should:

-BASIC DIGITAL SKILLS: (i) Accelerate measures to further boost digital skills of the population and increase investments. (ii) Focus on implementing measures and digital literacy education for everyone.

-ICT SPECIALIST: Continue existing and implement additional measures targeting various groups to ensure an increase of ICT specialists, and improve gender balance.

-e-HEALTH: (i) Ensure that all data types are made available in a timely manner. (ii) Offer a mobile application for citizens to access their electronic health records. (iii) Connect more private rehabilitation centres to the online access service. (iv) Ensure that the online access service complies to web accessibility guidelines.

-KEY PUBLIC SERVICES: Ensure coordinated implementation of public services and work towards integration of public records with the view of implementing 'once-only' principle in public administration. 



Leveraging digital transformation for a smart greening

Latvia has started to implement green policies in its digital transformation. The 2021-2027 Environmental Policy as well as Green ICT Procurement policy are examples of the interplay between the green and digital. However, most of the measures outlined in the Latvian roadmap are cross-cutting initiatives that by reduce environmental effects as a by-product, rather than actively targeting them.

Recommendations – Latvia should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs. 

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing.



State of the Digital Decade 2024

Lithuania

 

1 Executive summary

Lithuania brings a positive contribution to the EU’s digital decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Lithuania made notable progress in increasing the level of digital skills of its population and the number ICT specialists in employment, as well as improving 5G coverage. However, challenges persist particularly in the uptake of advanced technologies, such as AI and Cloud, by enterprises and in creating synergies between the digital and green transitions. 

Digitalisation is a priority for Lithuanian authorities, included in the National Progress Plan 2021-2030  that sets out the country's development directions, priorities, and principles in the different areas of state governance. Moreover, one of the five axes in the State Progress Strategy  Lithuania's vision for the future of Lithuania 2050  is a connected country with sustainable and well-balanced development.

According to the Special Eurobarometer 'Digital Decade 2024' 6 , 75% of Lithuanian citizens consider that the digitalisation of daily public and private services is making their lives easier, which is slightly above the EU average (75%).

Lithuania is one of the members of the already established European Digital Infrastructure Consortium (EDIC) for the Alliance for Language Technologies (ALT-EDIC). In addition, Lithuania is developing the Statutes and other relevant documents of the possible future Genome EDIC and the possible future Connected Public Administration EDIC, within their informal working groups 7 .

The Lithuanian Recovery and Resilience Plan (RRP) includes 23.3% (EUR 724 million) 8  of its budget to foster the digital transition. Its update, including a REPowerEU chapter, was approved in November 2023. The Lithuanian RRP presents a variety of measures to help businesses and citizens, improve public services, and speed up the digital transition in Lithuania through actions to digitalise the public and private sectors, support innovation and research, etc. Under cohesion policy, an additional EUR 309 million is allocated to the country’s digital transformation 9 .



Lithuania

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

LT

EU

Fixed Very High Capacity Network (VHCN) coverage

78.0%

78.1%

0.1%

78.8%

7.4%

98%

100%

Fibre to the Premises (FTTP) coverage

78.0%

78.1%

0.1%

64.0%

13.5%

x

-

Overall 5G coverage

90.1%

98.9%

9.8%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

3

1 186

x

10 000

SMEs with at least a basic level of digital intensity

56.7%

60.0%

2.9%

57.7%

2.6%

90%

90%

Cloud

27.7%

33.6%

10.1%

38.9%

7.0%

75%

75%

Artificial Intelligence

4.5%

4.9%

4.3%

8.0%

2.6%

75%

75%

Data analytics

NA

40.5%

NA

33.2%

NA

75%

75%

AI or Cloud or Data analytics

NA

53.5%

NA

54.6%

NA

75%

Unicorns

2

263

6

500

At least basic digital skills

48.8%

52.9%

4.1%

55.6%

1.5%

80%

80%

ICT specialists

4.4%

4.9%

11.4%

4.8%

4.3%

6.9%

~10%

eID scheme notification

Yes

Digital public services for citizens

83.9

86.7

3.4%

79.4

3.1%

100

100

Digital public services for businesses

94.4

95.9

1.7%

85.4

2.0%

100

100

Access to e-Health records

92.0

95.4

3.8%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Lithuania’s contribution to the Digital Decade, its roadmap demonstrates high ambition. Based on this document, the country intends to dedicate some effort to achieve the Digital Decade objectives and targets. 

The Lithuanian roadmap is generally coherent and very ambitious in achieving the Digital Decade targets. It includes 2030 targets and trajectories for all KPIs except for FTTP and Edge nodes. They are all aligned with the EU targets, except for ICT specialists, which stands well below the EU targets. The roadmap covers all the objectives of the Digital Decade, such as a human-centred digital space, resilience and security, sovereignty, green, and protection of the society with a high level of ambition, focusing on human centricity, sovereignty, and the green dimension.

The roadmap includes 22 measures with a total budget of almost EUR 1.5 billion, taking into account the RRF, other EU funds and the national budget, which equate to around 2% of its GDP. Regarding the ICT specialists, more ambition is required in order to reach the EU target.

Recommendations for the roadmap

Lithuania should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Propose a target and develop a trajectory for Edge nodes. (ii) Clarify whether the target and trajectory of the ‘Ultra-fast broadband coverage’ corresponds to FTTP networks only or if it includes other types of VHCN. If so, please formalise a target and develop a trajectory for the missing technologies. (iii) Align the level of ambition of target for the number of ICT specialists with the EU target.

-MEASURES: (i) Strengthen or better tailor the measures contributing to targets that are the most difficult to achieve especially as regards skills, ICT specialists, take up of AI and big data analytics; (ii) Propose measures in Semiconductors, Edge nodes and Quantum computing; (iii) Review the budget description of all presented measures, ensuring completeness and accuracy; (iv) Review description of measures to provide information on expected impacts; (v) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

-CONSULTATION: Provide more details on the consultation of stakeholders. 

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' reveals key insights into Lithuanian perceptions of digital rights. Despite a 5-point decrease since last year, 57% of Lithuanians believe the EU protects their digital rights, above the EU average of 45%. Confidence in digital privacy rose to 52%, slightly above the EU average. Concerns, although increased by 5 and 10 points, respectively, over control of one’s digital legacy (31%) and online safety for children (46%), still remain below the EU average. Many Lithuanians value digital technologies for connecting with friends and family (84%). These findings underscore the need for more prominent presence of digital rights and principles in Lithuania’s roadmap and digital strategies 10 .

A competitive, sovereign and resilient EU based on technological leadership

For its technological leadership and competitiveness, Lithuania can rely on good infrastructures with a positive deployment dynamic, notably in 5G coverage, with 98.9% of the populated areas covered.

The indicators on the digitalisation of enterprises (basic intensity of SMEs and take-up of data analytics, AI, and cloud) show a generally positive dynamic, in particular in the basic intensity of SMEs. Lithuania prioritises its start-up ecosystem, which is one of the engines of the Lithuanian economy, contributing significantly to the country's innovation and technological progress. It ensures that Lithuanian companies can grow and become European champions able to compete globally. Lithuania also relies on its digital industry linked to semiconductors production, especially lasers, which form an indispensable part of the chip production chain and potentially quantum computers.

Recommendations – Lithuania should:  

-CONNECTIVITY INFRASTRUCTURE: (i) Intensify efforts in the deployment of gigabit network, promoting public and private investments, especially in rural areas; (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-AI/CLOUD/DATA ANALYTICS: (i) Review the mix of measures to support the adoption of advanced digital technologies to guarantee the achievement of the ambitious targets; (ii) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS.  

Protecting and empowering EU people and society

Lithuania is well equipped to deliver an inclusive digital transition, but it will require sustained efforts to continue to raise the population’s level of digital skills and train ICT specialists. The population's digital skills level remains slightly below the EU average while the share of ICT specialists has increased significantly over the last year. It is important given the Lithuanian economic dynamism where the ICT sector has an important role. The digital public services for citizens and businesses stand above the EU average, reflecting the country's high level of digitalisation. At the same time, the Eurobarometer 2024 results show the excellent rate of digital progress and future ambition perceived and expected by its citizens.

Recommendations – Lithuania should: 

-BASIC DIGITAL SKILLS: Continue implementing initiatives to improve digital skills to ensure that no one is left behind.

-ICT SPECIALISTS: Continue implementing its efforts to increase the number of ICT specialists.

Leveraging digital transformation for a smart greening

The Lithuanian authorities do not yet focus on creating synergies between the digital and green transitions. This contrasts with 82% of Lithuanians, who think that ensuring digital technologies serve the green transition should be an important consideration for public authorities, according to the Eurobarometer 2024.

Although innovation for sustainability is one of the objectives of the National Progress Plan 2021-2030, and the roadmap presents a measure linked with sustainability, no specific progress in this respect has been reported in 2023. However, it should be noted that the RRP allocates 37.4% of its budget to climate targets, although these are not directly linked to fostering the digital transition.

Recommendations – Lithuania should:

-Lithuania should be more ambitious in synergising the digital and green transitions, focusing on the contribution that digital can bring toward sustainability, and also leveraging advanced technologies and scaling up successful initiatives, as well as proposing decarbonization measures and encouraging initiatives in responsible green technologies.

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs; 

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in  view of future policy development, as well as of attracting relevant financing. 

State of the Digital Decade 2024

Luxembourg

 

1 Executive summary

Luxembourg brings a very strong contribution to the EU’s Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Luxembourg made notable progress in the share of ICT specialists in employment and in increasing 5G coverage, including in the 3.4-3.8 GHz band. However, some challenges persist in at least basic digital skills and the adoption of advanced technologies (e.g., cloud) by enterprises. 

Luxembourg fully subscribes to the EU’s 2030 objectives for a digital transition which places people at the centre of the digitalisation of our EU society. The country performs already well in many of the Key Performance Indicators (KPI) and sets national targets for 2030 in line with the EU targets. Over the past few years, there has been more focus on digital issues and their growing political importance, which has resulted in the development and implementation of several initiatives to improve the digital performance of the country. Luxembourg can already rely on a very broad deployment of gigabit infrastructures and a very large number of ICT specialists in employment. The country also presents a high number of online public services for both people and businesses, including an e-health record for all. However, the availability of electronic medical data remains low. Luxembourg is currently placing cybersecurity at the core of its strategy for technological development and is developing a national data strategy. When it comes to the basic level of digital intensity of SMEs, the results in 2023 are still far from the EU target 2030, despite showing a positive dynamic.

According to the ‘Special Eurobarometer Digital Decade 2024’ 11 , 88% of the respondents in Luxembourg consider that the digitalisation of daily public and private services is making their lives easier (above the EU average 73%).

Luxembourg is very active in collaborating at EU level. Luxembourg is a member of the Local Digital Twins towards the CitiVERSE (LDT Citiverse) EDIC, the EUROPEUM-EDIC on blockchain and the Alliance for Language and Technology EDIC (ALT-EDIC), all already established. Luxembourg is developing the Statute and other documents for the possible future Mobility and Logistics Data EDIC and for the possible future Connected Public Administration EDIC (IMPACTS EDIC). Luxembourg offered to be the hosting Member State of the possible future Genome EDIC. The country is also participating in multi-country projects including IPCEI on Next Generation Cloud Infrastructure and Services (IPCEI-CIS) with seven indirect partners, EuroHPC, and POTENTIAL 12 .

Luxembourg’s Recovery and Resilience plan (RRP) allocates 29.6% of its total RRP budget to the digital transformation (EUR 24.5 million) 13 with a strong priority given to the modernisation of the public administration through digitalisation and the digitalisation of SMEs. Under Cohesion Policy, an additional EUR 6.8 million (18% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 14 .

Luxembourg

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

LU

EU

Fixed Very High Capacity Network (VHCN) coverage

93.3%

94.7%

1.5%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

76.2%

78.9%

3.5%

64.0%

13.5%

100%

-

Overall 5G coverage

93.2%

99.6%

6.9%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

8

1 186

x

10 000

SMEs with at least a basic level of digital intensity

53.9%

57.8%

3.6%

57.7%

2.6%

90%

90%

Cloud

29.0%

32.6%

6.0%

38.9%

7.0%

75%

75%

Artificial Intelligence

13.0%

14.4%

5.2%

8.0%

2.6%

75%

75%

Data analytics

NA

32.4%

NA

33.2%

NA

75%

75%

AI or Cloud or Data analytics

NA

52.0%

NA

54.6%

NA

75%

Unicorns

2

263

x

500

At least basic digital skills

63.8%

60.1%

-2.9%

55.6%

1.5%

80%

80%

ICT specialists

7.7%

8.0%

3.9%

4.8%

4.3%

10%

~10%

eID scheme notification

Yes

Digital public services for citizens

94.8

94.8

0.0%

79.4

3.1%

100

100

Digital public services for businesses

96.7

96.7

0.0%

85.4

2.0%

100

100

Access to e-Health records

67.2

76.1

13.3%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Luxembourg’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a high ambition and, based on this document, intends to allocate significant effort to achieve the Digital Decade objectives and targets.

The roadmap of Luxembourg sets out a quite detailed plan of actions with 12 targets and trajectories demonstrating willingness to contribute to the EU’s Digital Decade common objectives and targets. Most of the national targets and trajectories for 2030 are provided, except for edge nodes and unicorns. All targets presented are in line with EU target values.

The roadmap is consistent with the objectives of the Digital Decade including policies and measures addressing inclusion, resilience, cybersecurity, technological sovereignty, and sustainability.

The total budget of the measures presented in the national roadmap is estimated at EUR 309.5 million (about 0.39% of GDP) with priorities set on digital skills for all, support to national and European start-ups and scale-ups ecosystem with the goal to increase the number of European unicorns. A large number of measures is also dedicated to reach the objectives of the Digital Decade, in particular in cybersecurity, sovereign cloud, digital innovation, safety online, and accessibility of online services.



Recommendations for the roadmap

When adjusting its national roadmap in line with Article 8(3) of the Digital Decade Policy Programme (DDPP) Decision, Luxembourg should:

-TARGETS: (i) examine the opportunity of providing a target and trajectory for unicorns, (ii) provide a target and trajectory for edge nodes.

-MEASURES: (i) review and reinforce, if deemed necessary at this stage, measures to contribute to the targets that are the most challenging to reach, such as the digital skills for all, the basic level of digital intensity for SMEs, (ii) provide more information on the implementation of digital rights and principles, including what national measures contribute to it.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' reveals key insights into Luxembourg's perceptions of digital rights. Despite an 8-point decrease since last year, 56% of Luxembourgers believe the EU protects their digital rights, still above the EU average of 45%. Confidence in digital privacy is at 66%, higher than the EU average of 51%. Concerns have increased over the control of one’s digital legacy (28%) and online safety for children (40%), both rising by 10 and 2 points respectively. Positive trends include the high importance of digital technologies for accessing public services online and connecting with friends and family (90%), significantly above the EU average of 83%. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 15 .

A competitive, sovereign and resilient EU based on technological leadership

For its technological leadership and competitiveness, Luxembourg can rely on a strong connectivity infrastructure with very high level of coverage in VHCN and 5G. Luxembourg is on track to reach the 2030 EU targets for VHCN and 5G and is closely monitoring if the white areas can be covered by 2030. In terms of SMEs with basic level of digital intensity (57.8%), Luxembourg performs broadly at the EU level (57.7%). Recent annual progress might not be sufficient to reach the EU target of 90%, even though several measures are set out in the roadmap for the coming years. For businesses, in particular small ones, Luxembourg plans to make the adoption of advanced technologies easier by lowering the technical knowledge and financial entry barriers for businesses to use advanced technologies such as cloud, AI and data analytics. Luxembourg is also focusing on cybersecurity and setting up a sovereign national cloud to give businesses, including SMEs, located in Luxembourg maximum security and guarantees to deploy further in a data-driven economy.

Recommendations – Luxembourg should:

-CONNECTIVITY INFRASTRUCTURE: Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-customer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks. 

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-DIGITALISATION OF ENTERPRISES: Aim to reach the 2030 target by adopting further measures, when necessary, to convince less digitalised SMEs to engage in a digital transition to boost their growth.

-CLOUD/AI/DATA ANALYTICS: (i) Consider further awareness-raising measures and/or training directed at SMEs to adopt AI and data analytics as means to boost competitiveness. (ii) Support the broad uptake of the next generation of cloud infrastructure and services under development in the IPCEI-CIS by companies of all sizes, including by liaising with the direct participants to develop a country-specific dissemination strategy reaching beyond the participating organisations.

Protecting and empowering EU people and society

Luxembourg can rely on a high percentage of ICT specialists in employment (8.0%). Furthermore, in 2023, 60.1% of the population in Luxembourg had at least basic digital skills, which is above the EU average (55.6%). However, recent annual progress is slow, although equipping people with digital skills and fostering digital inclusion is a priority for Luxembourg. Dedicated measures are also in place to empower people, in particular the young ones, to use digital technologies safely and responsibly. Luxembourg is a front-runner in terms of digitalised public services for people (94.8) and businesses (96.7), already close to the 2030 EU target. It already has a national e-ID scheme in place to which citizen have access. The national EU Digital Identity Wallet is currently under development and is estimated to be in place in 2024. Luxembourg has an overall e-health maturity score of 76.1 in 2023, below the EU average 79.1. Although all citizens in Luxembourg have by default an electronic health record, the volume of health data accessible remains limited.

Recommendations – Luxembourg should:

-BASIC DIGITAL SKILLS: Strengthen the strategy to develop the population’s basic digital skills.

-E-HEALTH:(i) Make the data types of e-prescription and e-dispensation available to people through the online access service; (ii) Ensure that all data types are made available in a timely manner; (iii)Enhance the authentication method for logging into the online access service by using a notified e-ID; (vi) Increase the supply of health data by onboarding more categories of healthcare providers. 

Leveraging digital transformation for a smart greening

In the national roadmap of Luxembourg, some measures which are in line with the general objectives, related to energy efficiency of digital sector, and the use of digital technologies for energy efficiency and sustainability of products and processes are mentioned. Reduction of energy costs are foreseen in line with the broad e-governance strategy of Luxembourg, hosting the GovCloud in data centres highly efficient in terms of energy use and cooling. The rollout of smart meters started in 2016 and is about to be completed.

Recommendations – Luxembourg should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing.

State of the Digital Decade 2024

Malta

  

1 Executive summary

Malta brings a very strong contribution to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.  

In 2023, Malta made notable progress in connectivity infrastructure, and specifically in the roll-out of fibre-to-the-premises (FTTP) networks, the uptake of Artificial Intelligence and Cloud by enterprises. However, FTTP networks remain to be fully deployed across the country and challenges persist in basic digital skills and in filling the ICT specialists’ gap.

Digitalisation is a priority of Malta’s authorities. Malta Diġitali is the main strategy for 2022-2027. The country performs very well in several areas, and particularly in digital infrastructure, where it reached already the target VHCN and basic 5G coverage, and digital public services, already fully accessible to citizens and businesses. Moreover, Malta strategic approach focuses on a human-centred approach, recognizing the diverse digital needs across society, business, and government.

According to the Special Eurobarometer ‘Digital Decade 2024’ 16 , 80% of Malta’s population consider that the digitalisation of daily public and private services is making their lives easier (above the EU average of 73%).

Malta is an observing country on the already established Alliance for Language Technologies European Digital Infrastructure Consortium (ALT EDIC) 17 .

Malta’s Recovery and Resilience Plan (RRP) dedicates 26.2% to digital (EUR 68 million) 18 , with measures on digital skills, digitalisation of enterprises and of the public sector. Under cohesion policy, an additional EUR 129 million (17% of the country’s total cohesion policy funding) is allocated to the country’s digital transformation 19 .

Malta

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

MT

EU

Fixed Very High Capacity Network (VHCN) coverage

100.0%

100.0%

0.0%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

56.2%

69.6%

23.8%

64.0%

13.5%

100%

-

Overall 5G coverage

100.0%

100.0%

0.0%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

21

1 186

x

10 000

SMEs with at least a basic level of digital intensity

72.8%

76.5%

2.5%

57.7%

2.6%

85%

90%

Cloud

47.5%

58.2%

10.7%

38.9%

7.0%

80%

75%

Artificial Intelligence

10.2%

13.2%

13.8%

8.0%

2.6%

27.2%

75%

Data analytics

NA

35.6%

NA

33.2%

NA

51.1%

75%

AI or Cloud or Data analytics

NA

68.3%

NA

54.6%

NA

75%

Unicorns

3

263

x

500

At least basic digital skills

61.2%

63.0%

1.5%

55.6%

1.5%

75%

80%

ICT specialists

5.0%

4.7%

-6.0%

4.8%

4.3%

8%

~10%

eID scheme notification

Yes

Digital public services for citizens

100.0

100.0

0.0%

79.4

3.1%

100

100

Digital public services for businesses

97.2

100.0

2.9%

85.4

2.0%

100

100

Access to e-Health records

77.6

88.0

13.4%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Malta’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a high ambition, however, based on this document, intends to allocate very significant effort to achieve the Digital Decade objectives and targets.

The roadmap is overall coherent with the efforts needed in all the dimensions of digitalisation. The Maltese roadmap includes 66 measures with a total budget of EUR 214.65 million (1.5% of GDP) covering most of the targets. In total, three targets (i.e., VHCN, 5G and Digital Public Service for Citizen) have already been reached, while five others align with EU’s 2030 targets. However, according to the Country’s roadmap, three national targets (basic digital skills, number of ICT specialist and SMEs with at least a basic level of digital intensity) fall slightly below the EU targets. This seems related to the estimation algorithm used to project historical values up to 2030. Trajectories for edge nodes, e-Health and unicorns are missing. Although the roadmap covers nearly all objectives of the Digital Decade, some aspects may require more effort. For instance, elements related to the green and digital activities are notably underreported in the roadmap.

Recommendations for the roadmap

Malta should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Propose a target and trajectory for edge nodes and unicorns and formalise the trajectory for FTTP and eHealth (ii) Align the level of ambition of targets for the Digital Skills, ICT specialists and SME with at least basic digital intensity to the corresponding EU targets.

-MEASURES: (i) Strengthen the measures contributing to targets that are the most difficult to achieve, notably those on digital skills, ICT specialists and digitalisation of enterprises; (ii) Review the budget description of all presented measures, duly highlighting EU sources such as the Recovery and Resilience Facility (RRF); (iii) Report what are the most important public support measures or private sector initiatives that are going to be implemented in the country contributing to the objective of assessing and monitoring the impact of the digital transformation on the green transition. (iv) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

-CONSULTATION: Report on the consultation of stakeholders on the roadmap. ​

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' reveals key insights into Maltese perceptions of digital rights. Despite a significant 16-point decrease, 49% believe the EU protects their digital rights, slightly above the EU average of 45%. Confidence in digital privacy stands at 56%, also higher than the EU average of 51%. Concerns have increased significantly, with 55% worried about online safety for children, up 24 points, and 36% about control over personal data, up 16 points. Positive trends include the high importance of digital technologies e.g., for connecting with friends and family (86%), above the EU average of 83%. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 20 .

A competitive, sovereign and resilient EU based on technological leadership

Malta can rely on good infrastructure and good uptake of technologies by businesses. Malta already reached 100% coverage for VHCN and 5G, in 2020 and 2022 respectively. However, 5G coverage in the 3.4–3.8 GHz bands remains limited, i.e., 24.7% versus 50.6% at the EU level. Moreover, despite the strong positioning on digital infrastructure, Malta currently has no known edge node deployment plans.

The indicators on the digitalisation of enterprises (basic intensity of SMEs and take-up of data analytics, AI and cloud) show values equal or above the EU average. The SME ecosystem is very dynamic, with 66.1% of SMEs having at least a basic level of digital intensity in 2023. On cloud computing, AI and data analytics various entities have initiated measures to facilitate technology adoption, placing Malta well above the EU average in almost all areas. In 2023 there were three unicorns in Malta, while the country continues focusing on developing an agile and conducive start-up ecosystem.

Malta is part of the European semiconductor ecosystem, specialising in back-end packaging operations which mainly cater to the automotive and telecommunications sectors, and is part of the Important Projects of Common European Interests (IPCEIs). Regarding quantum technologies, the country is active in QuantERA, a European network of public organisations funding quantum-related research and innovation projects.

Recommendations – Malta should:

-DIGITALISATION OF BUSINESSES AND AI/CLOUD/DATA ANALYTICS: (i) Continue implementing policies in the area of digitalisation of businesses. In particular, Malta should further facilitate access to secure and sovereign advanced digital technologies and solutions and encourage investment in digital research and innovation; (ii) Raise awareness about the benefits of digital technologies and increase participation in existing funding schemes, especially among the many family-owned micro, small and medium-sized businesses making up Malta’s economy. (iii) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS.

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-CONNECTIVITY INFRASTRUCTURE: Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

Protecting and empowering EU people and society

Digital skills remain crucial to ensure that Maltese citizens have access to and make use of the available digital infrastructure to achieve the Digital Decade targets. Several initiatives have been implemented in recent years to incentivise individuals to attain at least basic digital skills, and to enhance levels of ICT employment. In 2023, Malta remains above the EU average, with 63% of the population having basic digital skills compared to the EU average of 55.6%. However, the share of ICT specialists in employment remains stagnant in Malta (4.7% vs the EU average of 4.8%), and it remains low in comparison to the required demand. Women are under-represented. The shortage of digital skills is partly addressed by Malta’s National e-Skills Strategy 2022-2025 which provides a framework for evaluating existing initiatives and introducing new ones, to promote basic and above basic digital skills and tools that can translate into increased employment.

Malta is a leader in the provision of key digital public services and performs very well in the implementing and giving access to electronic health records.

Recommendations – Malta should:

-BASIC DIGITAL SKILLS: Continue encouraging people to take part in digital skills trainings by raising awareness and facilitating access, with a special focus on vulnerable groups.

-ICT SPECIALISTS: Continue skills forecasting and improve cooperation with industry and the civil society to regularly evaluate and adjust education and training offers to labour market needs and encourage women to become ICT specialists.

-E-HEALTH: Offer a mobile application for citizens to access their electronic health records. Increase the supply of health data by onboarding more categories of healthcare providers.

Leveraging digital transformation for a smart greening

Malta’s movement to the twinning digital and green transition is slowly ramping up. It is primarily taking place in foreign direct investment operating enterprises and cascading into indigenous enterprises. The Ministry for Environment, Energy and Regeneration of the Grand Harbour has introduced Malta’s Sustainable Development Strategy for 2050 and opened it for public consultation. The Strategy is an ambitious document that translates  Malta’s Sustainable Development Vision for 2050  into a strategic policy direction for the environmental protection and socio-economic development of the Maltese Islands.

Recommendations – Malta should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing.

State of the Digital Decade 2024

The Netherlands

 

1 Executive Summary

The Netherlands brings a very strong contribution to the EU’s Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, The Netherlands made notable progress in rolling out its fibre network and in the area of basic digital skills, particularly with regards to strengthening knowledge of digitalisation and digital tools. However, important challenges persist in filling the ICT specialists' gap and close attention should also be given to companies’ continued adoption of advanced technologies, such as artificial intelligence (AI) and cloud. 

Digitalisation in the Netherlands is seen as an opportunity to grow, be more competitive and resilient. Its strategies, including the Dutch Strategy for the Digital Economy and the Dutch Value-Driven Digitalisation Work agenda , address priorities spanning digital skills and knowledge, high-performance digital infrastructure and technological innovation, but also digital trust, inclusiveness, transparency and cybersecurity. Other noteworthy strategies include the National Technology Strategy to promote technological sovereignty and the  Cybersecurity Strategy for enhanced action against cyber threats.

According to the Special Eurobarometer ‘Digital Decade 2024 21 , 83% of the Dutch population consider that the digitalisation of daily public and private services is making their lives easier. This is one of the highest scores in the EU and markedly above the EU average of 73%.

The Netherlands is involved in several European Digital Infrastructure Consortia (EDICs). Notably, it is expected to be the hosting Member State of the possible future EDIC for Mobility and Logistics Data and, with France, it is one of the potential host Member State of the possible future Digital Commons EDIC. The country is a member of the Alliance for Language Technologies (ALT) EDIC  one of the first EDICs ever set up and which addresses the scarcity of European language data needed for AI solutions. It is also developing the Statute and other relevant documents of the possible future Cybersecurity Skills Academy EDIC and the possible future Genome EDIC, both within informal Working Groups. Finally, the Netherlands is concluding membership negotiations with the Local Digital Twins towards the CitiVERSEEDIC 22 (already set up).

The Dutch Recovery and Resilience Plan (RRP) dedicates around 26% of its funds to digital policy (about EUR 1.2 billion) 23 .  Priority is given to investments in innovative digital technologies, notably quantum and AI, the development of digital skills at different levels of the education system and the increased digitalisation of public services.  Under Cohesion Policy, an additional EUR 200 million (11% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 24 .



The Netherlands

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

NL

EU

Fixed Very High Capacity Network (VHCN) coverage

97.8%

98.3%

0.5%

78.8%

7.4%

99.6%

100%

Fibre to the Premises (FTTP) coverage

63.4%

77.7%

22.6%

64.0%

13.5%

99.6%

-

Overall 5G coverage

100.0%

100.0%

0.0%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

27

1 186

x

10 000

SMEs with at least a basic level of digital intensity

75.3%

78.6%

2.2%

57.7%

2.6%

88.2%

90%

Cloud

60.2%

57.4%

-2.4%

38.9%

7.0%

82%

75%

Artificial Intelligence

13.1%

13.4%

1.1%

8.0%

2.6%

75%

75%

Data analytics

NA

48.6%

NA

33.2%

NA

40%

75%

AI or Cloud or Data analytics

NA

70.9%

NA

54.6%

NA

75%

75%

Unicorns

30

263

x

500

At least basic digital skills

78.9%

82.7%

2.4%

55.6%

1.5%

x

80%

ICT specialists

7.2%

6.9%

-4.2%

4.8%

4.3%

9.2%

~10%

eID scheme notification

Yes

Digital public services for citizens

84.6

85.9

1.5%

79.4

3.1%

x

100

Digital public services for businesses

89.4

86.7

-3.1%

85.4

2.0%

x

100

Access to e-Health records

69.4

72.5

4.5%

79.1

10.6%

x

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to the Netherlands’ contribution to the Digital Decade reflected in its roadmap, it is demonstrating some ambition. However, based on this document, the country intends to allocate significant effort to achieve the Digital Decade objectives and targets.

The Dutch roadmap is coherent, but only partly reflects the efforts needed to achieve the Digital Decade targets. It includes 2030 targets for 9 key performance indicators (KPIs), but some crucial targets and trajectories like edge nodes, unicorns, basic digital skills, digital public services for citizens and businesses and access to e-health records are missing.

Most national targets are in line with the EU’s 2030 targets, while the take-up by enterprises of data analytics and the level of ICT specialists in employment fall below. The Netherlands maintains in several instances that it is fully committed to realising the EU targets by 2030 and aims to include all of them in the roadmap’s future revision. The roadmap covers all Digital Decade objectives, namely digital citizenship, fostering technological leadership and sovereignty and contributing to the green transition.

There are 55 measures, corresponding to a total budget estimated at EUR 5.4 billion (about 0.5% of the GDP), although many measures have no indicated budget and others include approximations. The priorities are set on the digitalisation of key public services, semiconductors and quantum technologies. Some comprehensive efforts have been undertaken, particularly regarding ICT specialists and more targeted efforts for the digitalisation of enterprises, but more could still be done. Some sections, including on creating synergies between the digital and green transitions, could benefit from being more explicit on the planned actions and expected results.

Recommendations for the roadmap

The Netherlands should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the Digital Decade Policy Programme (DDPP) Decision:

-TARGETS: (i) Propose a target and trajectory for edge nodes, unicorns, at least basic digital skills, digitalisation of public services, and access to e-Health records; (ii) Align the level of ambition of targets for VHCN, SMEs with at least a basic level of digital intensity, the take-up of data analytics by enterprises and ICT specialists with the corresponding EU targets. 

-MEASURES: (i) Strengthen the measures contributing to targets that are the most difficult to achieve, including on ICT specialists and the digitalisation of SMEs; (ii) Review the budget description of all presented measures, duly highlighting EU sources such as the Recovery and Resilience Facility (RRF); (iii) Refer more concretely on actions and implementation of certain measures, particularly related to the Digital Decade objectives, as well as their expected outcomes; (iv) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including on contributing measures.

-CONSULTATION: Provide additional detail on the stakeholder consultation process of the roadmap.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' reveals key insights into Dutch perceptions of digital rights. Despite a 12-point decrease, 45% of Dutch respondents believe the EU protects their digital rights, aligning with the EU average. Confidence in digital privacy is at 54%, above the EU average of 51%. Concerns have risen significantly, with 63% worried about the online safety for children, up 10 points, and 58% about the control of one’s digital legacy, up 8 points. Positive trends include the high importance of digital technologies for accessing public services (91%) and connecting with friends and family (87%), both above the EU average of 83%. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 25 .

A competitive, sovereign and resilient EU based on technological leadership

The Netherlands is leveraging its strong digital infrastructure, knowledge base and research community to achieve technological leadership and competitiveness. However, there is room to improve investments in research and development (R&D), apply key digital technologies and create a conducive environment for tech businesses and start-ups. Progress is manifest, as borne out by the Netherlands having achieved the Gigabit target and 100% 5G coverage in 2022, although more work is needed on high-speed broadband subscriptions and industrial 5G development. On high-speed broadband, the Netherlands has achieved only 4.13% of fixed broadband subscriptions with speeds > 1 Gbps, much lower than the EU average of 18.5%. On industrial 5G, the recent launch of the 3.6GHz auction band for 5G is a positive development, but roll-out will be essential to enable advanced applications requiring large spectrum bandwidth. 

While indicators on the digitalisation of enterprises generally surpass the EU average, with 78.6% of SMEs reporting having at least a basic level of digital intensity, the Dutch government highlights there is a need for more public and private funds to scale up successful digital technologies like AI applications and to exceed EU levels of digital technology adoption, in line with the Netherlands’ aspirations. Initiatives like Quantum Delta NL and PhotonDelta will remain pivotal for the country’s long-term competitive advantage. On digital sovereignty, the Netherlands has taken the lead in analysing digital technology risks, identifying high-priority critical technologies and committing to innovation and industrial policies. On cybersecurity, the Netherlands is focusing on enhancing cyber awareness, cyber skills and upholding democratic and human rights globally.

Recommendations – The Netherlands should:

-CONNECTIVITY INFRASTRUCTURE: Ensure sufficient access of new players to spectrum for innovative B2B and B2C applications and encourage operators to speed up the deployment of 5G stand-alone core networks. 

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-AI/CLOUD/DATA ANALYTICS: (i) Continue to support the adoption of advanced digital technologies, with particular attention to scaling up successful AI innovations and improving access to finance, data, and computing infrastructure. (ii) Ensure the broad uptake of the next generation of cloud infrastructure and services under development in the IPCEI-CIS by companies of all sizes, including by developing a country-specific dissemination strategy; contribute to the dissemination activities led by the Cloud IPCEI Exploitation Office; consider measures specific to edge nodes deployment, supplementary to the IPCEI-CIS participation.

-QUANTUM/SEMICONDUCTORS: Continue to secure public funding and stimulate private investments to capitalise its competitive advantage in the areas of semiconductors and quantum technologies, while maintaining a good business environment for long-term digital innovation.

Protecting and empowering EU people and society

With a highly digitalised economy and society, the Netherlands is committed to, and progressing well towards, ensuring digital inclusion for its population and workers, strengthening knowledge of digitalisation and empowering society against disinformation. However, more can be done to address the gaps in the ICT jobs market. Efforts to improve digital skills have surpassed EU targets, with 82.7% of the population possessing at least basic digital skills, the highest score in the EU. Further national-level initiatives, such as integrating digital literacy in school curricula, could enhance skills levels and help the Netherlands achieve an even more ambitious target. On ICT specialists, the government has further developed its flagship initiative, the Action Plan on Green and Digital Jobs, while also investing in partnerships to accelerate the training, retraining, and upskilling of ICT people. Although ICT specialists account for 6.9% of the Netherlands’ employed population, outpacing the EU average of 4.8%, challenges remain in meeting the needs of the market and ensuring there is a strong availability of talent. The digitalisation of public services and e-ID development are overall on track, although the Netherlands should maintain its focus to prevent future stagnation in the digitalisation of services for businesses, where it currently scores 86.7 out of 100, as well as to improve the availability of a more diverse range of medical data types for citizens online. With an overall high score (85.9 out of 100) for digital public services for citizens and with many planned measures, the Netherlands aims to enhance the interoperability, proactiveness and accessibility of these services.



Recommendations – The Netherlands should:

-BASIC DIGITAL SKILLS: Introduce measures to help concretise national plans to boost digital skills and awareness in schools, to complement the ongoing efforts at local and regional level to ensure digital inclusion.

-ICT SPECIALISTS: Closely monitor the implementation of existing measures and partnerships to upskill and retain ICT specialists, including women. Design incentive schemes to increase the attractiveness of STEM disciplines, particularly for girls, and to boost the number of young people interested in taking up ICT-related studies or careers. Further reinforce collaboration between industries, education institutions and the public administration to improve the link between vocational education and the labour market needs.

-E-HEALTH: Make more health data types available to citizens through the online access service and increase the supply of health data by onboarding more categories of healthcare providers.

Leveraging digital transformation for a smart greening 

The Netherlands recognises the need to enhance sustainability in the ICT sector, with a focus on coordinating governmental actions to reduce energy consumption in ICT devices and infrastructure like data centres. Challenges include providing tools, cost information for sustainable choices, and reliable metrics to measure impact. An interdepartmental committee is making progress to draft a national action plan linking the digital and green transitions.

Recommendations – The Netherlands should:

-Continue developing a coherent approach to twinning the digital and green transitions, including by supporting relevant pilots. First, continue to promote energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs. 

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing.

State of the Digital Decade 2024

Poland

 

1 Executive summary

Poland has scope to improve its performance to contribute to the EU’s Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Poland made notable progress in the area of gigabit connectivity and digitalisation of SMEs. However, challenges persist in the area of digital skills and adoption of advanced technologies, such as AI and data analytics, by enterprises.

Significant resources are dedicated to improving connectivity, enhancing enterprises’ use of digital technologies, and developing digital public services that should improve the competitiveness of the Polish economy and boost the whole society’s use of digital technology. Poland will also invest in the production of semiconductors and participate in projects to build quantum computers.

The Polish population recognises importance of digitalisation: according to the Special Eurobarometer ‘Digital Decade 2024’ 26 , 81% of Poles consider that the digitalisation of daily public and private services is making their lives easier. This is one of the highest scores in the EU and markedly above the EU average of 73%.

Poland is a member of the Alliance for Language Technologies European Digital Infrastructure Consortium (ALT-EDIC) and applied to join the European Digital Infrastructure Consortium for European Blockchain Partnership and European Blockchain Service Infrastructure (EUROPEUM EDIC). It also participates in the Important Projects of Common European Interest on Next Generation Cloud Infrastructure and Services (IPCEI-CIS) and on Microelectronics and Communication Technologies (IPCEI-ME/CT) 27 .

Poland’s recovery and resilience plan dedicates 21% to digital policy (EUR 7.4 billion) 28 , with the bulk of the investment going to broadband deployment, improving digital skills, digitalisation of public services, and to e-health and cybersecurity. Under cohesion policy programmes, an additional EUR 5.7 billion (8% of the country’s total cohesion policy funding) is allocated to the country’s digital transformation 29 .



Poland

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

PL

EU

Fixed Very High Capacity Network (VHCN) coverage

70.7%

81.1%

14.6%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

59.5%

75.4%

26.7%

64.0%

13.5%

100%

-

Overall 5G coverage

63.4%

71.9%

13.4%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

44

1 186

370

10 000

SMEs with at least a basic level of digital intensity

39.8%

50.0%

12.1%

57.7%

2.6%

90%

90%

Cloud

19.2%

46.5%

55.6%

38.9%

7.0%

75%

75%

Artificial Intelligence

2.9%

3.7%

13.0%

8.0%

2.6%

10%

75%

Data analytics

NA

19.3%

NA

33.2%

NA

35%

75%

AI or Cloud or Data analytics

NA

51.8%

NA

54.6%

NA

75%

Unicorns

11

263

20

500

At least basic digital skills

42.9%

44.3%

1.6%

55.6%

1.5%

80%

80%

ICT specialists

3.7%

4.3%

16.2%

4.8%

4.3%

6%

~10%

eID scheme notification

Yes

Digital public services for citizens

59.9

63.7

6.4%

79.4

3.1%

100

100

Digital public services for businesses

72.7

72.9

0.2%

85.4

2.0%

100

100

Access to e-Health records

86.4

90.0

4.2%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Poland’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a very high ambition and, based on this document, intends to allocate significant effort to achieve the Digital Decade objectives and targets. although the formal adoption of the roadmap at the national level which is crucial for the country to fully commit towards these ambitions, is still pending.

Poland’s draft roadmap 30 is ambitious and coherent, though there are some weaknesses regarding digital competences and digitalisation of enterprises. It includes trajectories and national-level targets for all key performance indicators except for VHCN. 31 The national targets are mostly aligned with the EU’s 2030 targets, except for ICT specialists, take-up of data analytics and take-up of AI, where they are lower.

The roadmap identifies key challenges for Poland and covers all Digital Decade objectives, with a high level of ambition for sovereignty and competitiveness, integration of new technologies, inclusive public services, and cybersecurity. Other dimensions like enhancing digital competences and the green transition could be further developed. It contains also general presentation of expected impacts.

There are 52 measures, and their total budget is estimated at EUR 12.4 billion (about 1.6% of GDP), with priorities set on gigabit connectivity, digitalisation of enterprises, semiconductors, and e-health. Some aspects require more effort, especially on basic digital skills and ICT specialists and adoption of advanced technologies, such as AI and data analytics, by enterprises.

Recommendations for the roadmap

Poland should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Consider aligning with EU targets the level of ambition of targets for the number of ICT specialists and for enterprises’ take-up of AI and data analytics.

-MEASURES: (i) Strengthen measures contributing to the targets that are the most difficult to achieve in particular for digital skills. (ii) Review the description of measures on the digitalisation of businesses and connectivity to clarify their contribution to specific KPI. (iii) Provide information on relevant measures at regional level, including regional operational programmes funded from the cohesion policy. (iv) Provide information about the estimated investment gap, where this was not available (i.e., on digital skills, ICT specialists, semiconductors, edge nodes, implementation of key digital online public services, e-health and e-ID). (v) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it.

Digital rights and principles

The Digital Decade Eurobarometer reveals key insights into Polish perceptions of digital rights. 66% of Poles believe the EU protects their digital rights, significantly above the EU average of 45%. Confidence in digital privacy is at 68%, higher than the EU average of 51%. Despite rising EU-wide concerns about online safety for children (up 10 points) and control over personal data (up 5 points), 59% and 64% of Poles, respectively, remain confident. Positive trends include the high importance of digital technologies for connecting with friends and family (82%) and accessing public services (82%), both aligning with the EU average of 83%. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 32 . 

A competitive, sovereign and resilient EU based on technological leadership

To enhance its competitiveness, Poland needs to reach complete coverage of gigabit connectivity and boost the digitalisation of businesses. It must also overcome delays in deployment of the 5G network.

Poland appears to be on track to reach 100% VHCN coverage by 2030, although the last deployments might prove more difficult to achieve. The development of 5G is late, primarily due to the delayed authorisation of the 5G pioneer bands; only the 3.4-3.8 GHz band has been assigned so far. As a result, industrial 5G is yet to be developed. Moreover, the European Electronic Communications Code (Directive (EU) 2018/1972) has still to be transposed into national law, making Poland the last country in the EU that had not adjusted its electronic communications framework.

All the KPIs on the digitalisation of enterprises, except for the use of cloud services, attest to Poland’s performance being below the EU average. Polish start-ups have a very large growth potential, but the country’s start-up ecosystem has yet to deliver on its promise. With 20 unicorns, Poland’s target for 2030 is in line with the goal of doubling their number but appears modest given the country’s potential for innovation.

To contribute to EU sovereignty, Poland aims to: (i) boost its share in global microelectronics production value chains from minimal at present to 0.5% by 2030; (ii) deploy 370 edge nodes by 2030; and (iii) host one quantum computer by 2025.

The current national cybersecurity strategy was adopted in 2019. As the strategy runs for five years, it may have to be amended or replaced this year, while the NIS2 Directive has yet to be transposed.

Recommendations – Poland should:

-CONNECTIVITY INFRASTRUCTURE: (i) Proceed with the allocation of remaining 5G pioneer bands. (ii) Transpose the European Electronic Communications Code into national law. (iii) Strengthen measures on 5G deployment, including those alongside the main transport corridors. (iv) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-CYBERSECURITY: continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

-AI/CLOUD/DATA ANALYTICS: (i) Review the mix of measures to support the adoption of advanced digital technologies (with a particular attention to AI and data analytics). (ii) Ensure the broad uptake of the next generation of cloud infrastructure and services under development in the IPCEI-CIS by companies of all sizes, including by developing a country-specific dissemination strategy (complementing what has already been committed under IPCEI-CIS); contributing to the additional dissemination activities led by the Cloud IPCEI Exploitation Office.

Protecting and empowering EU people and society

To ensure that digital transformation is inclusive, Poland needs to improve the digital skills of the population and the share of ICT specialists in the workforce at a much faster pace than in previous years.

The share of the Polish population with at least basic digital skills is below the EU average; to achieve the target of 80% of the population with at least basic digital skills by 2030, the pace of growth until then would have to be more than five times higher than the average observed in recent years. For ICT specialists also, the 2023 value is below the EU average, but Poland does not plan to equal the EU target (of 10%) proposing instead a national target of 6%. Even so, the measures announced in the draft roadmap do not promise results that would be sufficient to achieve the expected increase by 2030.

Poland has made strides in its electronic identification scheme, with one notification submitted to the European Commission in 2023 and another in preparation. 36.5% of Poles used e-ID to access public services in Poland (EU average: 36.1%), a good result most likely related to the widespread use of the mObywatel application and e-ID means – the personal profile (profil osobisty) that is available in the ID card. Poland ranks below the EU average on the availability of public services for citizens and businesses online and the use of e-government in the last 12 months, but the average rate of growth and efforts to improve available services or offer new ones should, if sustained, enable Poland to close the gap by 2030. Poland’s score for online access to e-health records is much higher than for the whole EU and its actions in this area suggest the target score of 100 is within reach.

Recommendations – Poland should:

-BASIC DIGITAL SKILLS: Include in the roadmap measures to improve the basic skills of younger population (e.g., actions to improve digital equipment in schools, qualifications of ICT teachers, changes to programmes to increase the attractiveness of STEM disciplines)

-ICT SPECIALISTS: Take measures to increase the number of ICT specialists (e.g., improved visibility and accessibility of training and reskilling options; incentive schemes to attract new / retain current ICT specialists) and promote ICT studies and careers to women and girls.

-PUBLIC SERVICES: Ensure coordinated implementation of public service and work towards integration of public records with a view to implement the ‘once-only’ principle.

-E-HEALTH: (i) Make the data types of current problems and medical images available to citizens through the online access service. (ii) Ensure that all data types are made available in a timely manner.

Leveraging digital transformation for a smart greening

Polish public authorities and businesses consider the energy- and resource-efficient digital infrastructure and technologies in their daily operations and investments, particularly where EU resources are concerned. However, these efforts seem to be driven mostly by regulatory compliance or cost reduction. There is no system to monitor digital impacts on the environment, nor any comprehensive reflection on the opportunities offered by synergies between green and digital technologies.

Recommendations – Poland should:

-Mainstream considerations for the impact on the environment, including potential synergies, in the strategical reflection on national digital policy and ddevelop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing.

(1)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(2)

 Information last updated on 31 May 2024.

(3)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(4)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(5)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4. 

(6)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(7)

Information last updated on 31 May 2024.

(8)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(9)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund

(10)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4.

(11)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(12)

Information last updated on 31 May 2024.

(13)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation

(14)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(15)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4. 

(16)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(17)

Information last updated on 31 May 2024.

(18)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(19)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(20)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4. 

(21)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(22)

Information last updated on 31 May 2024.

(23)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(24)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(25)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4.

(26)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024: https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(27)

Information last updated on 31 May 2024.

(28)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(29)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund

(30)

On 30 January 2024, the Polish authorities shared with the Commission a draft roadmap, which has yet to be formally endorsed by the Council of Ministers. At the time of writing, this formal endorsement has yet to take place, hence this report relies on the draft provided in January, which may differ slightly from the final roadmap currently in the adoption process.

(31)

However, it provides a trajectory for FTTB, with target of 100% by 2030, which implies the target for VHCN will also be achieved by that time.

(32)

See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260: https://digital-strategy.ec.europa.eu/en/news-redirect/833325, Annex 4. 

Top

Brussels, 2.7.2024

COM(2024) 260 final

ANNEX

to the

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2024


Annex 3: Short EU 27 Member States reports

State of the Digital Decade 2024

Portugal

 

1 Executive summary

Portugal has untapped potential to contribute to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action. 

In 2023, Portugal made notable progress in e-health and in rolling out 5G networks, including in the 3.4–3.8 GHz band. However, important challenges persist in improving basic and advanced skills across the population. 

Digitalisation is a priority of the Portuguese authorities with the emphasis on reliable online public services, development of digital skills and unleashing the digital potential of enterprises. Portugal is seizing the opportunity to use EU funds to transform its economy and society and is devising its strategies on new technologies such as cybersecurity, AI, and advanced computing. Its work in this respect is facilitated by excellent digital infrastructure. However, despite the efforts, some metrics related to the general population and enterprises suggest the need for more intensive action.

According to the Special Eurobarometer ‘Digital Decade 2024’ 1 , 74% of Portugal’s population consider that the digitalisation of daily public and private services is making their lives easier (just above the EU average of 73%).

Portugal is a member of the already established Local Digital Twins towards CitiVERSE European Digital Infrastructure Consortium (LDT CitiVERSE EDIC) and of the EUROPEUM-EDIC. Portugal, together with other Member States is participating in the works for the possible future EDICs: Cybersecurity Skills Academy EDIC, the EUCAIM EDIC and the Genome EDIC 2 .

The Portuguese Recovery and Resilience plan dedicates EUR 4.5 billion (21% of the total allocation) 3  to the digital transformation, with priorities given to digital qualification and skills and the digital transformation of businesses. Under Cohesion Policy, an additional EUR 2.4 billion (11% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 4 . 

Portugal

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

PT

EU

Fixed Very High Capacity Network (VHCN) coverage

93.0%

94.2%

1.2%

78.8%

7.4%

x

100%

Fibre to the Premises (FTTP) coverage

90.8%

92.3%

1.7%

64.0%

13.5%

x

-

Overall 5G coverage

70.1%

98.1%

40.0%

89.3%

9.8%

x

100%

Semiconductors

NA

Edge Nodes

19

1 186

x

10 000

SMEs with at least a basic level of digital intensity

48.6%

53.6%

5.0%

57.7%

2.6%

90%

90%

Cloud

28.1%

32.3%

7.2%

38.9%

7.0%

x

75%

Artificial Intelligence

7.2%

7.9%

4.7%

8.0%

2.6%

x

75%

Data analytics

NA

38.6%

NA

33.2%

NA

x

75%

AI or Cloud or Data analytics

NA

54.4%

NA

54.6%

NA

75%

75%

Unicorns

1

263

2

500

At least basic digital skills

55.3%

56.0%

0.6%

55.6%

1.5%

80%

80%

ICT specialists

4.3%

4.5%

4.7%

4.8%

4.3%

7%

~10%

eID scheme notification

Yes

Digital public services for citizens

77.8

81.5

4.8%

79.4

3.1%

x

100

Digital public services for businesses

81.9

81.9

0.0%

85.4

2.0%

x

100

Access to e-Health records

62.7

86.0

37.2%

79.1

10.6%

x

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Portugal’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating some ambition however, based on this document, intends to allocate limited effort to achieve the Digital Decade objectives and targets. The formal adoption of the roadmap at the national level which is crucial for the country to fully commit towards these ambitions, is still pending.

Portugal’s roadmap partly reflects the efforts needed in all dimensions of digitalisation. The roadmap includes only some of the expected national targets, i.e., those related to digital skills, at least a basic level of digital intensity of SMEs, unicorns, and a joint target for the take-up of AI, cloud or data analytics, leaving space for higher ambition. The roadmap does not include any trajectories making it difficult to assess the pace of implementation. The national targets set for 2030 reflect EU target levels of ambition except for ICT specialists. The total budget for the measures is EUR 854 million (0.3 % of GDP). While the measures presented tackle some of the most pressing issues, such as the insufficient level of basic digital skills, ICT specialists, and the digitalisation of businesses, more intensive efforts are needed to reach the national targets. For the sake of the cooperation foreseen by the programme, a comprehensive roadmap perspective remains crucial also in areas where the country performs well, e.g., connectivity.

Recommendations for the roadmap

Portugal should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Propose targets and trajectories concerning VHCN, FTTP, 5G coverage, edge nodes, cloud, AI and data analytics separately, accessibility of key public services for citizens and businesses, access to e-health records and set trajectories for basic digital skills, ICT specialists, digital intensity of SMEs, unicorns using correct baseline value. (ii) Align the level of ambition of the target for ICT specialists with the EU target. (iii) Consider establishing national ambitions for technological leadership, competitiveness, and resilience to support EU-wide targets regarding semiconductors and quantum.

-MEASURES: (i) Supplement the roadmap with measures related to connectivity. (ii) Review the measures contributing to targets on skills and digitalisation of enterprises, consider setting up additional measures for ICT specialists and basic digital intensity of enterprises. (iii) Review the budget description of all presented measures, highlighting both national and EU sources. (iv) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it. (v) Incorporate, where appropriate, measures reported through other channels in the roadmap.

-CONSULTATION: Consult key stakeholders, as outlined in the DDPP, before proposing the adjustment to the national roadmap.

Digital rights and principles

The Digital Decade Eurobarometer reveals that 43% of Portuguese respondents believe the EU protects their digital rights, slightly below the EU average of 45%. Confidence in digital privacy stands at 48%, also lower than the EU average. Concerns have risen significantly, with 60% worried about children's online safety, up 20 points since 2023, and 52% about control over personal data, up 15 points since 2023. Despite these concerns, 78% consider digital technologies important for accessing public services and 83% for connecting with friends and family, aligning with the EU average. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 5 . 

A competitive, sovereign and resilient EU based on technological leadership

To underpin its technological leadership and competitiveness, Portugal is equipped with excellent infrastructures, with a positive deployment dynamic, but it can still boost the digitalisation of its businesses. On infrastructures, Portugal is on track to reach 100% coverage for Gigabit connectivity (VHCN 94.2%, and 92.3% for FTTP) and 5G (98.1%) much earlier than 2030, the timing set for the EU target. 65.2% of Portuguese households are covered by 5G in the 3.4-3.8 GHz band, essential for enabling advanced applications requiring large spectrum bandwidth. However, the figure for fixed broadband subscriptions with download speeds of 1 Gbps or more is 9.1%, below the EU average of 18.5%. Portugal’s overall good starting point is due to public initiatives, such as the recent 5G auction and the ongoing Gigabit tender, combined with the dynamism of private operators. On the other hand, the indicators on the digitalisation of enterprises (basic digital intensity of SMEs and take-up of data analytics, AI and cloud) point to a performance below or equal to the EU average. SMEs are underperforming in the adoption of digital technologies, despite ample funding support offered by the Portuguese recovery and resilience plan and other sources of EU funding, and the vision established in the COMPETE 2030 programme. However, a strong agenda is in place to foster the growth of the start-up ecosystem. Portugal aims to step up its contribution to the EU’s technological resilience and sovereignty with the recent strategy on semiconductors, and the revision of its strategies and actions on advanced computing and AI. A whole-of-society approach to cybersecurity skills and capabilities is also contributing to this objective.

Recommendations – Portugal should:

-CONNECTIVITY INFRASTRUCTURE: Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-SEMICONDUCTORS: Continue efforts in the area of semiconductors including by proposing concrete actions and exploring synergies between the national strategy and the EU-level cooperation.

-DIGITALISATION OF SMEs and UNICORNS: (i) Intensify the existing measures in view of the ambitious target on the basic digital intensity of enterprises and the need to ensure continuity of support until 2030; (ii) Continue reinforcing the country's start-up and scale-up ecosystem, in particular by ensuring availability and effectiveness of adopted measures.

-AI/CLOUD/DATA ANALYTICS: (i) Envisage specific measures for the take up of cloud, AI and data analytics, such as reinforced collaboration between public and private sector and with academia to better match the potential of these technologies with the business needs; (ii) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS. 

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

Protecting and empowering EU people and society

Portugal is well equipped to deliver an inclusive digital transition, but sustained efforts will be required to continuously increase the population’s level of digital skills and train ICT specialists. The population’s level of at least basic digital skills is just above the EU average, showing limited progress in the past few years. The proportion of ICT specialists in employment is lower than the EU average, with a decreasing share of women in the profession. Over the last few years, Portuguese authorities devised multiple initiatives to enhance the digital skills of the population, including in the workforce; these include reforms and investments in the education system and the provision of other training initiatives. The ambition of the Digital Decade and national targets will require Portugal to further intensify its efforts in this domain. The digitalisation of public services remains close to the EU average, while the level of e-health maturity improved significantly and is now above the EU average. With measures supporting digitalisation of the health system, implementing e-ID schemes and supporting the modernisation of public administration, Portugal is on track to achieve the EU-wide targets. At the same time, it could do more to raise awareness among the population about the benefits of the solutions in place.

Recommendations – Portugal should:

-BASIC DIGITAL SKILLS: Intensify efforts including by evaluating the take-up of the current measures and the remaining needs in order to meet the ambitious target.

-ICT SPECIALISTS: Adopt additional measures for ICT specialists, including cybersecurity talent and promoting ICT studies and gender balance in the field.

-DIGITAL PUBLIC SERVICES/e-ID: Continue developing user-friendly e-Government solutions and intensify efforts to promote their take-up, with particular attention to the e-ID. 

-E-HEALTH: Make the data types of medical images and hospital discharge reports available to citizens through the online access service and, building on existing legal provisions, implement technical functionality for legal guardians and authorised persons to access electronic health data on behalf of others.

Leveraging digital transformation for a smart greening

Portugal is beginning to attach importance to twining the digital and green transitions. The Portuguese authorities have shown growing commitment to a more sustainable future, putting in place digital measures, such as paperless invoicing or energy efficiency tracking, to support more resource-efficient public administration, enterprises and individual lives. On the objective of making the ICT sector more environmentally friendly, most of the players in the telecoms sector are carrying out sustainability reporting, which makes it possible to track improvements in the connectivity sector. However, a more comprehensive approach in this area may be necessary.

Recommendations – Portugal should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing. 

State of the Digital Decade 2024

Romania

 

1 Executive summary

Romania has scope to improve its performance to contribute to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Romania made notable progress in digitalising public services and in digitalising SMEs and continued to have an outstanding performance on FTTP coverage. However, in spite of the ongoing efforts, important challenges persist in improving basic digital skills across the population and in rolling out 5G networks. 

Digital transformation has gained political importance in Romania over the last few years, and currently benefits from significant amounts of EU funding. Romania dedicates 21.8% of its total Recovery and Resilience Plan to digital (EUR 5.8 billion) 6 . Under Cohesion Policy, an additional EUR 3 billion (10% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 7 Some of the ongoing measures already start to generate improvements in key performance indicators (KPIs), but for now the large-scale benefits to citizens and businesses in terms of digital education and inclusion, competitive and innovative business or better and more transparent public services remain insufficient. 

According to the Special Eurobarometer Digital Decade 2024 8 , 59% of Romania’s population considers that the digitalisation of daily public and private services makes their life easier. This is one of the lowest scores in the EU, much below the EU average of 73%.

Regarding participation in European Digital Infrastructure Consortia (EDICs), Romania is a member of the EUROPEUM EDIC (in the area of blockchain, already set up) and is participating in the Working Groups developing the Statues and other relevant documents of the possible future Genome and IMPACTS (Connected Public Administration) EDICs 9 .

Romania

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

RO

EU

Fixed Very High Capacity Network (VHCN) coverage 10

95.6%

95.0%

-0.6%

78.8%

7.4%

99%

100%

Fibre to the Premises (FTTP) coverage

95.6%

95.0%

-0.6%

64.0%

13.5%

99%

-

Overall 5G coverage

26.8%

32.8%

22.4%

89.3%

9.8%

62%

100%

Semiconductors

NA

Edge Nodes

5

1 186

113

10 000

SMEs with at least a basic level of digital intensity

22.2%

26.8%

9.9%

57.7%

2.6%

75%

90%

Cloud

11.3%

15.5%

17.1%

38.9%

7.0%

40%

75%

Artificial Intelligence

1.4%

1.5%

3.5%

8.0%

2.6%

10%

75%

Data analytics

NA

21.9%

NA

33.2%

NA

15%

75%

AI or Cloud or Data analytics

NA

28.7%

NA

54.6%

NA

75%

Unicorns

0

263

x

500

At least basic digital skills

27.8%

27.7%

-0.2%

55.6%

1.5%

50%

80%

ICT specialists

2.8%

2.6%

-7.1%

4.8%

4.3%

4%

~10%

eID scheme notification

No

Digital public services for citizens

47.6

52.2

9.7%

79.4

3.1%

100

100

Digital public services for businesses

44.6

50.0

12.1%

85.4

2.0%

100

100

Access to e-Health records

57.1

58.6

2.7%

79.1

10.6%

x

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Romania’s contribution to the Digital Decade reflected in its roadmap , it is demonstrating a high ambition and, based on this document, intends to allocate some effort to achieve the Digital Decade objectives and targets, although the formal adoption of the roadmap at the national level, which is crucial for the country to fully commit towards these ambitions, is still pending. 

Romania endorsed national targets corresponding to all Digital Decade 2030 targets, with the exception of e-Health, quantum, edge nodes and semiconductors. The targets for digital skills, the digitalisation of businesses, and 5G coverage are set significantly below the levels of the EU targets.

The 97 measures included in the roadmap largely build on the Romanian Recovery and Resilience Plan (RRP) and, to a more limited extent, on the relevant cohesion policy funding. Based on the budget information that is included in the plan, it appears that most funding efforts concentrate on the digitalisation of public services (11 measures worth over EUR 1 billion) and on improving digital skills (23 measures worth over EUR 1 billion), which are seen as key drivers of Romania’s digitalisation. On the digitalisation of businesses, most measures included in the roadmap are taken at regional level via the European Digital Innovation Hubs, and as such they are not likely to address all the identified challenges. The roadmap acknowledges that further action is needed to support digital R&D, innovation, and the digital transformation of businesses. Interinstitutional processes have started to develop policies in areas such as semiconductors, quantum and, to a lesser extent, edge nodes, partly building on Romania’s participation in multi-country projects. Overall, the roadmap could be further developed to reflect the general objectives of the programme.

Recommendations for the roadmap 

Romania should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) propose targets and trajectories for edge nodes and eHealth; (ii) revise the unicorns target in line with the current KPI definition; (ii) Raise the level of ambition for 5G, basic digital skills, ICT specialists, digitalization of SMEs and the take up of advanced digital technologies.

-MEASURES: (i) review the measures supporting the targets for the digitalisation of business and take up of advanced digital technologies, to ensure a more comprehensive overview, as well as the objectives of the programme; (ii) continue the institutional process to develop policies in the areas of semiconductors, edge, and quantum; (iii) review the budget description of the measures funded by national budget and cohesion policy; (iv) classify the measures according to the target and/or objective that they contribute to; (v) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including on contributing measures.

-CONSULTATION: Ensure a consultation process for the revised roadmap, giving interested stakeholders sufficient time to react, and report on it in the roadmap. 

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' reveals key insights into Romanian perceptions of digital rights. 45% believe the EU protects their digital rights, just like the EU average. Confidence in digital privacy is at 48%, slightly below average. Concerns include online safety for children (48%) and control over personal data (41%), both showing a prominent increase. Positive trends include the importance attributed by Romanians to digital technologies for accessing public services (64%) and connecting with friends and family (71%). The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 11 .

A competitive, sovereign and resilient EU based on technological leadership 

With 95% coverage of households (second highest in the EU), Romania is close to delivering almost full FTTP coverage to its citizens and businesses, including in rural areas, where coverage is 92.5% already and still progressing quickly. The country also has the highest take up of high-speed internet in the EU: 94% of internet connections are at speeds of 100Mbps or above. Following the recent spectrum allocation and various regulatory measures, 5G coverage is improving, but still severely lagging behind the EU average. Performance on the digitalisation of businesses remains much below the EU average, although a positive dynamic has been observed for basic digital intensity and some other related indicators, in particular e-Invoicing. Despite efforts, a significant gap remains to achieve the digitalisation of business targets by 2030 and to implement the roadmap, including to increase the level of R&D and innovation in the ICT sector. Significant developments in the field of cybersecurity were also observed in 2023, initiated by both private and public actors, including efforts to raise awareness and build relevant skills.



Recommendations – Romania should: 

-CONNECTIVITY INFRASTRUCTURE: (i) Undertake additional efforts to support a higher level of ambition for the 5G target, including possible support for use cases and pilots, in view of the importance for EU and Romania’s future competitiveness and building on the current positive trend; (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-SMEs: Intensify action on digitalisation of business, starting with providing a comprehensive overview of the available support measures and identifying potential gaps in terms of meeting existing needs, as well as with ensuring the good functioning of the EDIHs.

-CLOUD/EDGE: (i) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the Member States participating in the IPCEI-CIS; (ii) Consider edge node deployment when creating investment programmes and strategies in these areas of AI, future network deployment, and the Internet of Things, as edge computing is an important component of those. 

-UNICORNS: Extend the measures to support an innovative, R&D driven ICT sector, as part of the competitiveness and technological leadership objectives in the roadmap.

-QUANTUM/SEMICONDUCTORS: Develop a policy and further measures to support the semiconductors, quantum, and edge nodes targets, building on the growing national interest and existing assets, as well as multi-country cooperation.

-CYBERSECURITY: (i) Extend the roadmap to better reflect the growing interest in and activities related to cybersecurity, setting clear objectives in this respect; (ii) Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

Protecting and empowering EU people and society

Romania is making massive efforts to raise the level of digital skills, in a context where more than 72% of its population still lacks basic digital skills. The focus is currently on integrating digital skills into all levels of formal education, including through curricula reforms, teacher trainings, infrastructure and learning resources. Some more limited measures target adults by transforming public libraries into hubs for digital skills, upskilling/reskilling working adults, and training young people. While Romania continues to perform very well on training ICT specialists, the proportion of ICT specialists in its workforce is relatively low, partly due to difficulties to retain them in the country.

The performance concerning the digitalisation of public services remains low, but continuous action could lead to radical improvements in the coming years, in terms of transparency, simplification, and quality. Important in this respect are the efforts to digitalise key national and regional services and to set up a governmental cloud and an interoperability portal and framework. An e-ID solution, ROeID, is in the pre-notification process. Access to health records remains poor but has the potential to improve as a result of a wider RRF investment. Finally, Romania pays increasing attention to protecting children online, and to societal issues such as disinformation and trust in online services.

Recommendations – Romania should:

-BASIC DIGITAL SKILLS: (i) Intensify the measures related to upskilling and reskilling of the workforce; (ii) Continue to improve the quality and the relevance of courses, teaching digital skills not only as a separate subject but also integrating digital skills and digital education into all levels, while taking a cross curricular approach.

-ICT SPECIALISTS: Consider additional measures targeting to retain ICT specialists in the country. 

-DIGITAL PUBLIC SERVICES: Maintain the efforts needed to implement the ambitious ongoing agenda for the digitalisation of public services, including by ensuring sufficient levels of funding, project management capacity and ICT specialists, and extensive/strong coordination across the various relevant authorities. 

-E-HEALTH: Expand the coverage of the online access service, make the data regarding medical devices/implants, laboratory tests, and medical images available to citizens through this online access service and onboard more categories of healthcare providers to it.

Leveraging digital transformation for a smart greening

Romania underlines that its major efforts to digitalise government services, in particular environmental services, will also bring significant benefits in terms of climate action. As of 2023, digital and green education are brought to school children as optional courses. Importantly, a dynamic clean-tech sector seems to be emerging and benefits from several support measures at national and regional levels.

Recommendations – Romania should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing. 

State of the Digital Decade 2024

Slovakia

 

1 Executive summary

Slovakia has scope to improve its performance to contribute to the EU’s Digital Decade objectives and targets in view of a successful digitalisation that fosters skills, competitiveness, resilience, sovereignty, European values, and climate action.

In 2023, Slovakia made notable progress in enhancing digital public services for citizens and businesses, as well as advancing e-Health initiatives. However, significant challenges persist in expanding gigabit network coverage and improving basic and advanced digital skills across the population.

Digitalisation has been at the centre of the government’s latest reforms and plans. In addition to the Action plan for the digital transformation of Slovakia for 2023-2026 and the National Digital Skills Strategy of the Slovak Republic and the 2023-2026 Action Plan, Slovakia has published the Smart Cities and Regions Plan 2023-2026 and the National Research & Development & Innovation Strategy 2030, adopting comprehensive and challenging objectives at all levels for a better quality of life. The implementation of these strategies should boost Slovakia’s digital transformation, as it still lags behind the EU average in all but one Digital Decade key performance indicators (KPIs).

According to the Digital Decade Eurobarometer 12 , 82% of Slovakia’s population consider that the digitalisation of daily public and private services makes their life easier. This score is significantly above the EU average of 73%.

Slovakia is a member of the Local Digital Twins – CitiVERSE European Digital Infrastructure Consortium (EDIC), an observer in the Alliance for Language Technologies EDIC, (all already set up). Slovakia is a member of the working groups aiming to set up the IMPACTS EDIC, the Mobility and Logistics Data EDIC, the Genome EDIC and the Digital Commons EDIC 13 , and of working groups exploring other possible areas to set up EDICs. It is also a member of the important project of common European interest in the field of microelectronics and communication technologies (IPCEI-ME/CT).

Slovakia’s Recovery and Resilience Plan (RRP) allocates 20.5% to digital (EUR 1.2 billion) 14 . It was updated in July 2023 to include reforms and investments that address REPowerEU objectives. Under Cohesion Policy, an additional EUR 0.9 billion (7% of the country’s total Cohesion Policy funding) is allocated to the country’s digital transformation 15 .



Slovakia

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

SK

EU

Fixed Very High Capacity Network (VHCN) coverage

71.3%

69.1%

-3.1%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

66.9%

64.2%

-4.0%

64.0%

13.5%

x

-

Overall 5G coverage

55.3%

79.0%

42.8%

89.3%

9.8%

98.5%

100%

Semiconductors

NA

Edge Nodes

8

1 186

x

10 000

SMEs with at least a basic level of digital intensity

43.0%

42.2%

-0.9%

57.7%

2.6%

90%

90%

Cloud

30.8%

30.2%

-1.0%

38.9%

7.0%

75%

75%

Artificial Intelligence

5.2%

7.0%

16.0%

8.0%

2.6%

75%

75%

Data analytics

NA

30.2%

NA

33.2%

NA

75%

75%

AI or Cloud or Data analytics

NA

45.8%

NA

54.6%

NA

75%

Unicorns

0

263

3

500

At least basic digital skills

55.2%

51.3%

-3.6%

55.6%

1.5%

70%

80%

ICT specialists

4.3%

4.2%

-2.3%

4.8%

4.3%

6%

~10%

eID scheme notification

Yes

Digital public services for citizens

67.2

72.1

7.2%

79.4

3.1%

100

100

Digital public services for businesses

77.9

79.2

1.6%

85.4

2.0%

100

100

Access to e-Health records

42.0

66.3

57.8%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

(2) Last measure used is for 2021

National Digital Decade strategic roadmap

With respect to Slovakia’s contribution to the Digital Decade Policy Programme, its national roadmap demonstrates a high ambition while it intends to devote significant effort to achieve the Digital Decade objectives and targets.

Slovakia's roadmap, published in March 2024, presents a comprehensive overview of the country’s digital strategic direction for development. The document provides insights into the state of play, challenges, and strengths across various sectors. In particular, the roadmap outlines numerous targets, most of them (nine targets on connectivity, businesses, and public services) in line with the EU target. It also mentions 113 measures, with a significant commitment to digital advancement, underscored by an estimated budget of EUR 2 270 million (1.8% of GDP).

Some areas are presented in less detail. For example, no detailed measures are mentioned for edge nodes, semiconductors, and quantum technologies. The roadmap partially aligns with key recommendations presented in the Slovak Digital Decade Country Report 2023, with an emphasis on action to improve access to information and knowledge sharing for businesses, including through European Digital Innovation Hubs and action to digitalise public services. However, more ambition is needed on connectivity and digital skills.

Recommendations for the roadmap

Slovakia should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Propose national target values for FTTP and edge nodes. (ii) Recompute the VHCN trajectory using the correct values. (iii) Re-evaluate possible efforts on 5G coverage, basic digital skills and ICT specialists.

-MEASURES: (i) Reinforce measures aimed to contribute to digital skills development and to foster connectivity. (ii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it. (iii) Review the budget estimated for all presented measures, highlighting the different sources, including more detail on EU funds such as RRF.

-CONSULTATION: Provide further detail on the consultation process of the roadmap.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' provides key insights into Slovak perceptions of digital rights. 47% of Slovak respondents believe the EU protects their digital rights, a 5-point increase since last year. Confidence in digital privacy stands increased by 5 points to 52%, aligning with the EU average. Notable concerns include worries about online safety for children (57% of respondents, up 8 points), and about control over personal data (39%). Positive trends are evident in the high value placed on digital technologies for accessing public services (84%) and connecting with friends and family (89%), both above the EU average. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 16 .

A competitive, sovereign and resilient EU based on technological leadership 

Despite a commitment to ensure equal access to affordable high-quality digital connectivity, with 69% of households currently covered by VHCN, challenges remain to ensure Gigabit coverage for all. Action to create opportunities through research, development and innovation is underway, although the share of the ICT sector in private R&D expenditure remains relatively low at 0.6%. Initiatives for collaboration undertaken between academia, industry, and government aim to drive innovation and develop capacities in areas like semiconductors and quantum. Infrastructure enhancements, such as the new international optical backbone route and development of the Slovak quantum communication infrastructure, help to further improve the resilience of Slovakia's digital ecosystem. Moreover, Slovakia has taken action to promote the uptake of digital technologies by businesses, with currently 42% of SMEs having at least a basic level of digital intensity, recognising their role in driving economic growth.

Recommendations – Slovakia should:

-CONNECTIVITY INFRASTRUCTURE: (i) Develop targeted initiatives to fill the investment gap and secure public and private funding in broadband coverage and uptake to address the identified gigabit and 5G connectivity challenges, especially in rural areas. (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-SMEs: Accelerate the diffusion of innovative technologies and solutions across the economy to improve digital adoption and competitiveness.

-SEMICONDUCTORS/EDGENODES/QUANTUM: Foster increased involvement at the European level to promote the adoption of semiconductors, edge nodes, and quantum technologies. 

-AI/CLOUD/DATA ANALYTICS: (i) Support the development, roll out and take up, including support for capital investment in cloud computing, artificial intelligence, data analytics, and other cutting-edge technologies. (ii) Stimulate the adoption of next generation cloud infrastructure and services by companies of all sizes, including by liaising with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS.

-UNICORNS: Expand existing measures aimed at supporting the growth of scale-ups and startups that drive innovation and invest in emerging technologies.

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks. 

Protecting and empowering EU people and society 

Slovakia is actively fostering a human-centred, inclusive, and transparent digital environment, in alignment with overarching EU objectives for the digital empowerment of its citizens. Measures such as the adoption of the Consumer Protection Act reflect efforts to empower individuals by ensuring a fair balance between consumer rights and obligations in the digital sphere. These legislative measures address emerging challenges in the digital realm and align with EU consumer legislation. Additionally, Slovakia's participation in the INHOPE network underscores the country's dedication to promoting digital inclusion and safeguarding online safety, particularly for vulnerable groups like children. However, Slovakia’s measures have not yet translated into better performance on digital skills. Actions in education at all levels still require improvement, with a decline in basic digital skills from 55% to 51% in the past year, below the EU average of 55%, possibly due to post-COVID-19 effects (i.e., lower usage of ICT tools). Special attention is needed for age groups 55 to 64 (38%) and 65 to 74 (19%). The national targets for 2030 are lower than the EU targets. With a national target of 70% for basic digital skills, and 6% for the population being ICT experts by 2030, more specific and broader measures are necessary and are crucial for strengthening digital skills in Slovakia, in alignment with existing national strategies.

The use of e-ID remains limited as only 8% of the population use e-ID for public services, compared to an EU average of 36%. To address this, Slovakia has launched the Digital Identity Testing and Deployment project, which will run until 2026, aiming to enable access to digital identity through mobile devices. In the realm of digital public services, Slovakia’s performance in services offered to citizens and businesses, although showing some improvement, continues to lag behind the EU average. Actions are underway to promote digitalization, including by streamlining public procurement processes, increasing electronic communication with public administration, and improving access to electronic health records. Awareness campaigns and the development of dedicated mobile applications are being considered to boost usage and accessibility of e-Health services, aligning with Slovakia's commitment to leveraging technology to improve healthcare provision.



Recommendations – Slovakia should:

-BASIC DIGITAL SKILLS: (i) Expedite the implementation of new curricula in primary and secondary schools, incorporating robust programs focused on informatics and digital skills. (ii) Implement a comprehensive upskilling program for schoolteachers to ensure that all educators possess adequate digital competencies.

-ICT SPECIALISTS: Foster the development of more flexible and diverse certified ICT studies at various levels and modalities within higher education.

-DIGITAL PUBLIC SERVICES: Strengthen the digital transformation of public services and actively encourage the adoption of electronic modalities by both workers and retired citizens.

-E-HEALTH: (i) Offer a mobile application for citizens to access their electronic health records, enhancing the authentication method for logging into the online access services with full accessibility compliance. (ii) Make the data type of medical images available to citizens through the online access service. (iii) Expand the coverage of the online access service to ensure that all citizens can access their electronic health data online.

Leveraging digital transformation for a smart greening

Slovakia can still capitalise on green transformation opportunities, fostering the development of green skills and advancing its digital and professional capabilities in line with its strategic objectives. Measures like the ‘Analysis of the transition to green ICT in public administration’ are underway to assess the impact of transitioning to sustainable communication infrastructures, green data centres, and energy-efficient ICT services. These initiatives prioritize digital rights and sustainability by integrating principles of data privacy, security, and ethical technology use, helping to achieve environmental sustainability and digital inclusion.

Recommendations – Slovakia should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing. 

State of the Digital Decade 2024

Slovenia

 

1 Executive Summary

Slovenia has untapped potential to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Slovenia made notable progress in e-government, through the notification of its national e-ID scheme and a high overall eHealth maturity, and in 5G coverage, including in the 3.4-3.8 GHz bands. However, despite ongoing efforts, challenges persist in improving basic digital skills of the population, while Slovenian enterprises, especially SMEs, lag behind in the adoption of advanced technologies like data analytics. 

According to the Special EurobarometerDigital Decade 2024’ 17 , 74% of Slovenia’s population considers the digitalisation of daily public and private services to be making their lives easier (just above the EU average of 73%).

Slovenia is actively laying the foundation for its digital transformation by developing complementary strategic orientations and action plans, including strategies on semiconductors and quantum technology. The long awaited Digital Public Services Strategy 2030  was published in 2023 and Slovenia's participation in EDICs underlines its commitment to advancing digital initiatives.

Slovenia is a member of several EDICs, including the Alliance for Language Technologies (ALT), Local Digital Twins towards the CitiVERSE and EUROPEUM (all already set up). It is also developing the Statute and other relevant documents of the possible future Cybersecurity Skills Academy EDIC and is engaging in discussions on the setup of the possible future Digital Commons EDIC, within informal Working Groups. 18  However, Slovenia does not participate in the IPCEI CIS.

Even though some implementation activities have taken place, broader scale progress and transformational effects have yet to materialise.

The Slovenian Recovery and Resilience Plan (RRP) allocates 20% (EUR 0.5 billion) to digital 19 policy measures. Priority is given to digitising public services and e-Health as well as participation in digital multi-country projects for example on cloud and semiconductors. Additionally, 9% (EUR 0.3 billion) of Slovenia’s total Cohesion Policy funding is dedicated to digital transformation 20 .



Slovenia

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

SI

EU

Fixed Very High Capacity Network (VHCN) coverage

75.5%

78.5%

4.0%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

75.5%

78.5%

4.0%

64.0%

13.5%

100%

-

Overall 5G coverage

63.9%

82.1%

28.5%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

5

1 186

200

10 000

SMEs with at least a basic level of digital intensity

55.2%

50.4%

-4.4%

57.7%

2.6%

90%

90%

Cloud

37.6%

36.0%

-2.2%

38.9%

7.0%

75%

75%

Artificial Intelligence

11.7%

11.4%

-1.3%

8.0%

2.6%

75%

75%

Data analytics

NA

19.1%

NA

33.2%

NA

75%

75%

AI or Cloud or Data analytics

NA

44.7%

NA

54.6%

NA

75%

Unicorns

0

263

7

500

At least basic digital skills

49.7%

46.7%

-3.0%

55.6%

1.5%

80%

80%

ICT specialists

4.5%

3.8%

-15.6%

4.8%

4.3%

10%

~10%

eID scheme notification

Yes

Digital public services for citizens

71.4

77.0

7.9%

79.4

3.1%

100

100

Digital public services for businesses

82.7

84.0

1.5%

85.4

2.0%

100

100

Access to e-Health records

80.4

87.6

8.9%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

With respect to Slovenia’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a very high ambition and, based on this document, intends to allocate very significant effort to achieve the Digital Decade objectives and targets. However, the formal adoption of the roadmap at the national level which is crucial for the country to fully commit towards these ambitions, is still pending.

Slovenia’s roadmap is very ambitious and coherent, addressing all Digital Decade objectives through a comprehensive range of 99 measures. Its 2030 targets for the key performance indicators (KPI) are aligned with those of the EU and it introduces additional targets such us the uptake of e-ID. It also includes quantitative estimations of how it expects to help achieve the edge node and semiconductor targets.

The total budget for the measures outlined in the roadmap is estimated to be EUR 1 billion (approximately 1.7% of GDP), with the priorities being basic digital skills, digital public services, gigabit connectivity, and the uptake of AI / cloud / data analytics (especially AI). However, more comprehensive action is required to address limitations (e.g., ICT specialists) and bring forward targeted initiatives (i.e., for the digitalisation of SMEs). Additionally, the roadmap would benefit from a more detailed description of the planned strategies and activities for semiconductors, quantum and AI, including the planned competence centre.

Recommendations for the roadmap

In addition to horizontal recommendations provided to all Member States (MS) regarding their national roadmaps, Slovenia should consider the following adjustments to its roadmap (Article 8(3) of the DDPP Decision):

-MEASURES: (i) Bring forward additional measures for the digitalisation of SMEs and the uptake of advanced technologies, particularly data analytics, along with upskilling the population, focusing on ICT specialists and women in ICT, and emphasising semiconductors, quantum and AI; (ii) Revise the budget description to ensure overall consistency and complement the information on expected impact on measure-level; (iii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including what national measures contribute to it. 

Digital rights and principles

The Digital Decade Eurobarometer shows that 46% of Slovenians feel the EU protects their digital rights, a 5-point drop from last year, just below the EU average of 47%. Rising concerns include 62% worried about children's online safety (up 11 points) and 47% about their control over personal data. However, 62% trust in online freedom of assembly and 57% in safe and privacy-friendly technologies, both above the EU average. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 21 .

A competitive, sovereign and resilient EU based on technological leadership

To underpin its technological leadership and competitiveness, Slovenia is taking considerable action to develop cutting-edge technologies, but further measures are required to boost the digital transformation and uptake of advanced technologies in businesses, especially SMEs.

On connectivity, Slovenia performs fairly well, with the exception of fixed and mobile connectivity in rural areas. This long-standing issue, which is partially structural (i.e., topography-related), is being addressed through measures such as the ongoing construction of broadband networks of at least 100 Mbps in white areas, co-funded by public and private stakeholders. Furthermore, Slovenia is taking action to prepare for the next generation of electronic communication networks, including with the auctioning of private 5G networks in March 2024, and preparing to auction bands for machine-to-machine communication networks, including Internet of Things.

Slovenia falls below the EU average in the digitalisation of businesses. Despite the strong digitalisation of large enterprises (including the high uptake of AI) and the country’s participation in initiatives (including at EU level) to develop cutting-edge technologies (i.e., cloud, semiconductors, quantum – with a focus on research – and blockchain), the uptake of digital technologies remains a persisting challenge. Slovenian SMEs, in particular, have the lowest scores in the EU in basic digital intensity, cloud computing adoption, and data analytics uptake. This is being addressed by action to boost the uptake of advanced technologies among large companies and SMEs, unprecedented investments via the Technology Innovation Fund (part of the Slovene Enterprise Fund), and structural framework improvements, particularly regarding the employment of non-EU nationals (although some of these programmes are currently on hold). European Digital Innovation Hubs are also making their services available to Slovenian SMEs. Moreover, Slovenia is taking action to improve its cybersecurity with projects to set up cybersecurity schools and a national cybersecurity coordination centre, but not yet on a broad scale.

Recommendations – Slovenia should:

-CONNECTIVITY INFRASTRUCTURE: (i) Continue and supplement measures to tackle 5G connectivity challenges, especially in rural areas. (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks. 

-SEMICONDUCTORS: Sustain activities on semiconductors and quickly implement them on the ground.

-SMEs: Accelerate policies to increase the uptake of digital technologies by SMEs. In particular by quickly implementing, maintaining and complementing the efforts to provide supportive framework conditions, including a highly skilled workforce, in a continuous manner and by paying particular attention to the specificities of industries.

-AI/CLOUD/DATA ANALYTICS: (i) Accelerate policies to increase and speed up the uptake of advanced technologies. In particular by stepping up actions on data analytics, and by speeding up and further targeting preparation and implementation of measures on AI. (ii) Support broad uptake of the next generation of cloud infrastructure and services under development in the IPCEI-CIS by companies of all sizes, including by liaising with the direct participants to develop a country-specific dissemination strategy reaching beyond the participating organisations. 

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

Protecting and empowering EU people and society

Slovenia is committed to achieving an inclusive digital transformation, yet significant and continuous action is needed to ensure people have the necessary digital skills and can access user-friendly digital public services, and to address the shortage of ICT specialists to help boost economic competitiveness.

The country’s performance on basic digital skills is below the EU average (including a further decrease since last year, possibly due to post-COVID-19 effects, i.e., lower use of ICT tools), with ongoing measures targeting various groups (i.e., young people, adults, and vulnerable populations). Slovenia also aims to tackle challenges in recruiting ICT specialists through reforms in higher education curricula (which are ongoing) and (a small number of) specific training programmes, including initiatives to promote the presence of women in the ICT field. Action is under way to gain an understanding of the need for ICT specialists through the ‘Skills Forecasting and Labour Market Platform’.

In the area of digital public services, e-health and e-ID, Slovenia performs close to the EU average, but there is also a gap between the services offered and their utilisation. Improving digital literacy could help bridge this gap, particularly as a significant number of people do not interact with public authorities online due to a lack of skills and knowledge. The Digital Public Services Strategy 2030 is expected to put such measures in practice.

Recommendations – Slovenia should:

-BASIC DIGITAL SKILLS: Accelerate efforts in the area of basic digital skills. In particular, by increasing the level of these skills to allow its population and economy to make full use of the potential of digital transformation. This can be done through an increased and intensified offer and collaboration between public and private actors.

-ICT SPECIALISTS: Strengthen the early identification of labour market needs and further complement them for a swift reaction, especially in the area of digital upskilling and reskilling, adapt the (higher) education curricula to the latest digital needs and addressing the gender gap. Strengthened collaboration between industries, (higher) education institutions, public administration and relevant stakeholders can increase the effectiveness of those measures.

-e-HEALTH: Make the data types of medical imaging reports and medical images available to citizens through the online access service and build on existing legal provisions as well as technical solutions, for authorised persons to access electronic health data on behalf of others.

-DIGITAL PUBLIC SERVICES: Continue efforts to digitalise public services. Slovenia should continue to pay particular attention to the participatory development and user-friendliness of these services.

Leveraging digital transformation for a smart greening

Slovenia has started to make use of digital technologies to support the green transition, with a particular focus on increasing energy efficiency. An example of the latter is a pilot project prepared by the Ministry of Digital Transformation using the Internet of Things to collect data on energy consumption in buildings managed by the Ministry of Public Administration. The promotion of sustainable, circular business models starts to fall under the scope of public support measures on digital. Furthermore, Slovenia is developing a green budgeting framework.

Recommendations – Slovenia should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs. 

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing. 

State of the Digital Decade 2024

Spain

 

1 Executive summary

Spain brings a very strong contribution to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action. 

In 2023, Spain made notable progress on increasing basic digital skills and in the use of artificial intelligence by enterprises. Spain has an excellent FTTP coverage and has taken significant action in the area of semiconductors. However, important challenges persist regarding the lack of ICT specialists and some indicators related to the digitalization of business, including the take up of cloud.

The Digital Spain Agenda is the country’s digital transformation strategy aiming to leverage new technologies to drive intensive economic growth, placing people at the centre, and reaching all territories. The agenda is structured around ten strategic axes and two cross-cutting axes, which are framed by three dimensions reflecting the Digital Decade Policy Programme: (i) infrastructure and technology; (ii) economy; and (iii) people. It was approved in 2020 and updated in 2022 under the name ‘Digital Spain 2026’. According to the special Eurobarometer on the Digital Decade 2024 22 , 73% of Spanish citizens consider that the digitalisation of daily public and private services is making their lives easier. This percentage aligns with the EU average and reflects the success of Spanish authorities in the inclusive implementation of the Digital Agenda.

Spain is a member and the host of the European Digital Infrastructure Consortium of the Local Digital Twins towards the CitiVERSE – EDIC (already set up) and has recently joined the Alliance for Language Technologies EDIC (ALT-EDIC, already set up), which addresses the scarcity of European language data needed for AI solutions. Spain is also developing the Statutes and other relevant documents of the possible future Genome EDIC and the EDIC for Mobility and Logistics Data, within their informal working groups. In addition, the country is engaging in discussions on the setting up of the Cancer Image Europe (EUCAIM) and the Agri-Food EDICs, within their informal Working Groups 23 . Concerning the Important Projects of Common European Interest (IPCEIs), Spain takes part in the IPCEI on Next Generation Cloud Infrastructure and Services (IPCEI-CIS) and the IPCEI on Microelectronics and Communication Technologies (IPCEI-ME/CT). In addition, Spain takes part in the European High Performance Computing Joint Undertaking (EuroHPC) with the supercomputer MareNostrum 5 based in Barcelona.

The Spanish Recovery and Resilience Plan (RRP) allocates 26% of its budget to measures linked to the digital area 24 . The modified plan, updated in October 2023, has a stronger focus on the digital transition, devoting EUR 40.4 billion to measures that support digital objectives (up from EUR 19.7 billion in the original plan). Under the cohesion policy, an additional EUR 5.7 billion (16% of the country’s total cohesion policy funding) is allocated to the country’s digital transformation 25 .



Spain

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

ES

EU

Fixed Very High Capacity Network (VHCN) coverage

93.3%

96.3%

3.2%

78.8%

7.4%

100%

100%

Fibre to the Premises (FTTP) coverage

91.0%

95.2%

4.6%

64.0%

13.5%

100%

-

Overall 5G coverage

82.3%

92.3%

12.1%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

171

1 186

x

10 000

SMEs with at least a basic level of digital intensity

59.7%

60.5%

0.7%

57.7%

2.6%

90%

90%

Cloud

27.0%

27.2%

0.4%

38.9%

7.0%

75%

75%

Artificial Intelligence

7.7%

9.2%

9.3%

8.0%

2.6%

75%

75%

Data analytics

NA

38.0%

NA

33.2%

NA

75%

75%

AI or Cloud or Data analytics

NA

49.9%

NA

54.6%

NA

75%

Unicorns

11

263

24

500

At least basic digital skills

64.2%

66.2%

1.6%

55.6%

1.5%

85%

80%

ICT specialists

4.3%

4.4%

2.3%

4.8%

4.3%

8.6%

~10%

eID scheme notification

Yes

Digital public services for citizens

86.2

84.2

-2.3%

79.4

3.1%

100

100

Digital public services for businesses

91.0

91.0

0.0%

85.4

2.0%

100

100

Access to e-Health records

83.2

84.6

1.7%

79.1

10.6%

100

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

National Digital Decade strategic roadmap

Regarding the Spain’s contribution to the Digital Decade reflected in its roadmap, the country is demonstrating a very high ambition while intends to dedicate significant effort to achieve the Digital Decade objectives and targets. 

The Spanish roadmap is ambitious, comprehensive, and coherent with the vision of Spain making a strong contribution to achieving the EU's Digital Decade targets. Building on the roadmap, Spanish authorities have paved the way for the digital transformation of the Spanish economy throughout the past years, with the document reflecting this vision and commitment. The roadmap presents targets and trajectories for all the Digital Decade targets, except for Edge-nodes. Overall, the targets are aligned with the EU values with the exception of the basic digital skills, which surpasses the EU target, and the ICT specialists, which stands slightly below the EU ambition level. The roadmap contains up 67 measures with a total budget of EUR 33 750 million (about 2.3% of its GDP), setting as key deliverables the growth of unicorns, innovative scale-up ecosystem, and the production of semiconductors. 

Recommendations for the roadmap

Spain should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Propose targets and develop trajectories for edge nodes; (ii) align with the EU level of ambition for ICT specialists. 

-MEASURES: (i) Reinforce the roadmap with additional measures on ICT specialists, on the adoption of the advanced digital technologies, and on objectives; (ii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including on contributing measures.

-CONSULTATION: Publish the roadmap to encourage open debate and engagement with the Digital objectives and receive future stakeholder feedback. 

Digital rights and principles

The Special Eurobarometer on 'the Digital Decade' 2024 highlights that only 36% of Spaniards believe the EU protects their digital rights, a significant 9-point gap below the EU average (45%) and a 13-point increase in distrust since last year. Concerns are growing, notably with 61% alarmed about children's online safety—up 21 points, and 53% about control over personal data—up 17 points. Positively, 60% trust in affordable high-speed internet and 62% are satisfied with the level of digital skills. These findings underscore the urgency of enhancing digital rights and principles in Spain's roadmap and digital strategies. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help to improve outcomes in the years to come 26 .

A competitive, sovereign and resilient EU based on technological leadership

Spain performs exceptionally well in connectivity: FTTP stands at 95.2% and 5G coverage at 92.3%, much above the EU average and close to reaching the target. Concerning semiconductor production, the country set it up as a priority through the PERTE Chip. Although the roadmap does not present targets and trajectories for it, the country can be considered ambitious in Edge nodes given the public and private investments and its participation in IPCEI-CIS to accelerate the edge nodes deployment. The same approach applies to Quantum technology, given Spain's participation in the EuroHPC and the presentations in last December of the 'Quantum Pact' and the MareNostrum 5 supercomputer. While the country performs relatively well in the basic digital intensity of SMEs (60.5%), it is facing challenges although improving, in the advanced digitalisation of enterprises, such as the uptake of cloud, data analytics, and AI. The country is also focused on supporting the innovative scale-up ecosystem, planning, and implementing investments to support innovative enterprises.

Recommendations – Spain should:

-CONNECTIVITY INFRASTRUCTURE: Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks. 

-DIGITALISATION OF SMEs/ AI, CLOUD and DATA ANALYTICS: (i) Continue the efforts to support the digitalisation of enterprises, in particular to foster the adoption of advanced technologies; (ii) Ensure the broad uptake of the next generation of cloud infrastructure and services under development in the IPCEI-CIS by companies of all sizes, including by developing a country-specific dissemination strategy (complementing what has already been committed under IPCEI-CIS); contributing to the additional dissemination activities led by the Cloud IPCEI Exploitation Office. 

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks. 

Protecting and empowering EU people and society

Spain is taking positive steps toward empowering people and promoting continuous opportunities for all individuals in the digital economy. To bridge gaps, digital technologies should be accessible to all, and that is what Spain is aiming for through all the activities related to its National Digital Skills Plan. The national target for basic digital skills of 85% of the population by 2030 is above the EU level of ambition, just as the current value is above the EU average (66.2% vs 55.6%). On the other hand, more ambition could be envisaged for the ICT specialists as the roadmap sets a target that is lower than the EU expectations. Concerning the Digital Public Services, Spain brings a positive contribution to the EU’s Digital Decade targets on both public services for citizens (84) and businesses (91), ranking well above the EU average (79 and 85, respectively). 

The country proceeded with the promotion of the Charter of Digital Rights approved in 2021 as well as the creation of a Digital Rights Observatory.

Recommendations – Spain should:

-ICT SPECIALISTS: Continue implementing its efforts to achieve a greater number of ICT specialists, designing incentives schemes to attract and retain them, and increasing the visibility and readability of training and reskilling options. 

-DIGITAL PUBLIC SERVICES: Continue efforts to digitalise public services and further promote their use. 

-e-HEALTH: (i) Make the data types of medical devices/implants, procedures/operations, and medical images available to citizens in all regions through the online access services; (ii) Increase the supply of health data by onboarding more categories of healthcare providers, especially in the private sector; (iii) Build on existing legal provisions and implement technical functionality for authorised persons to access electronic health data on behalf of others.

Leveraging digital transformation for a smart greening

Spain is harnessing digital technologies to enhance the green transition in key areas while implementing innovative programs to reduce the environmental impact of energy-intensive digital technologies. To develop environmentally friendly technologies guided by sustainability criteria, the National Green Algorithms Plan (PNAV) has been launched, with an investment of EUR 257 million from the European Next Generation EU funds.

Overall, Spain is committed to ensuring that all the measures included in the Digital Spain agenda adhere to the principle of not causing significant harm to the environment, which, combined with the relevant climate/environmental labelling, ensures that digitisation progresses in a sustainable manner.

Recommendations – Spain should:

-Continue developing and implementing a coherent approach to twinning the digital and green transitions, by leveraging advanced technologies and scaling up successful initiatives that improve the energy and material efficiency of digital infrastructures, in particular data centres, and by proposing decarbonisation measures and supporting the take up of green technologies that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture. 

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing. 

State of the Digital Decade 2024

Sweden

 

1 Executive summary

Sweden brings a very strong contribution to the European Union’s (EU) Digital Decade objectives and targets, in view of a successful digitalisation that fosters competitiveness, resilience, sovereignty, European values and climate action.

In 2023, Sweden made notable progress in 5G coverage, including in the 3.4-3.8 GHz bands, and in promoting unicorns. However, challenges persist in the area of e-health and the country needs to continue the work on e-ID.

Sweden seeks to be a global leader in digitalisation and continues to build on the increasing economic importance of its ICT sector. Its main strength is its digitally skilled workforce, combined with well-developed infrastructure in most of the country. Eurostat data show that the ICT sector accounted for 6.5% of the economy in 2019 and 7.1% in 2020. Venture capital investments as a share of GDP grew from 7% in 2020 and 8% in 2021 to 9% in 2022. Sweden continues to perform well and is one of the top digital skills performers in the EU. Sweden has made significant steps in rolling out 5G – increasing from 21% to 90% household coverage compared to the previous year. Fibre deployment continues with public support. Despite the funding available, notably under the Recovery and Resilience plan, it will be difficult to ensure that all households have access to a FTTP network by 2030.

According to the Digital Decade Eurobarometer 27 , 88% of Sweden’s population (well above the EU average of 73%) consider that the digitalisation of daily public and private services is making their lives easier. 

Sweden does not at present participate in any European Digital Infrastructure Consortium (EDIC) but may join in the future. In this context, Sweden has expressed interest in the established Alliance for Language Technologies (ALT EDIC) project 28 .

Sweden’s Recovery and Resilience plan allocates 21% (EUR 674 million) 29 of its funding to digital, most of it to support the deployment of VHCNs in rural areas. Under cohesion policy, an additional EUR 0.2 billion (13% of the country’s total cohesion policy funding) is allocated to the country’s digital transformation 30 .

 

Sweden

EU

Digital Decade target by 2030

Digital Decade KPI (1)

DESI 2023

DESI 2024 (year 2023)

Annual progress

DESI 2024 (year 2023)

Annual progress

SE

EU

Fixed Very High Capacity Network (VHCN) coverage

81.6%

88.5%

8.4%

78.8%

7.4%

98.5%

100%

Fibre to the Premises (FTTP) coverage

81.5%

83.9%

2.9%

64.0%

13.5%

98.5%

-

Overall 5G coverage

20.5%

90.3%

341.3%

89.3%

9.8%

100%

100%

Semiconductors

NA

Edge Nodes

34

1186

x

10000

SMEs with at least a basic level of digital intensity

86.1%

79.9%

-3.7%

57.7%

2.6%

95%

90%

Cloud

69.2%

66.0%

(2)

38.9%

7.0%

94%

75%

Artificial Intelligence

9.9%

10.4%

2.5%

8.0%

2.6%

39%

75%

Data analytics

NA

35.0%

NA

33.2%

NA

56%

75%

AI or Cloud or Data analytics

NA

73.1%

NA

54.6%

NA

75%

Unicorns

36

263

64

500

At least basic digital skills

66.6%

66.4%

-0.1%

55.6%

1.5%

89%

80%

ICT specialists

8.6%

8.7%

1.2%

4.8%

4.3%

12%

~10%

eID scheme notification

Yes

Digital public services for citizens

88.2

93.3

5.8%

79.4

3.1%

90

100

Digital public services for businesses

87.9

96.0

9.2%

85.4

2.0%

90.5

100

Access to e-Health records

70.3

77.9

10.9%

79.1

10.6%

78.5

100

(1) See the methodological note for the description of the indicators and other descriptive metrics

(2) Comparison with previous years cannot be done for Sweden due to methodological changes.

National Digital Decade Strategic Roadmap

With respect to Sweden’s contribution to the Digital Decade reflected in its roadmap, it is demonstrating a very high ambition and, based on this document, intends to allocate significant effort to achieve the Digital Decade objectives and targets.

The roadmap is overall consistent with the efforts needed across all the dimensions of digitalisation. It provides a good overview of the areas where Sweden can contribute to the Digital Decade programme and where Sweden needs to step up its efforts. The roadmap sets targets and trajectories for most of the KPIs, but some, such as the KPI on access to e-Health records, are not expected to achieve EU targets for 2030. Trajectories are based on information available before 1 June 2023. Measures are especially focused on digital skills and digital infrastructures, with fewer measures focusing on the digitalisation of public services. Some aspects require more efforts, such as the greening of digitalisation.

Recommendations for the roadmap

Sweden should, when submitting adjustments to its national roadmap in accordance with Article 8(3) of the DDPP Decision:

-TARGETS: (i) Complete the roadmap with the missing target for edge nodes; (ii) When there is more than one trajectory for a target, identify the most likely one.

-MEASURES: (i) Give a fuller account of how the measures that are broader in scope, such as Strategic Innovation Programmes, Impact Innovation and Business Sweden, support the Digital Decade objectives and targets; (ii) Provide more information on the implementation of digital rights and principles (and Digital Decade general objectives), including on contributing measures.

-CONSULTATION: Explain in greater detail how the stakeholder comments were addressed during the consultation process.

Digital rights and principles

The Special Eurobarometer 'Digital Decade 2024' offers key insights into Swedish perceptions of digital rights. Despite a 5-point decline from last year, 50% of Swedes still believe the EU effectively protects their digital rights, which is above the EU average of 45%. Concerns are growing, particularly with 74% expressing worry about children's online safety—a 21-point increase and the highest in the EU. Additionally, 59% are concerned about control over digital legacy, 19 points above the EU average. On a positive note, 80% trust in the freedom of assembly online, 21 points above the EU average, and 65% appreciate the level of digital skills in the country. The monitoring of the Declaration on Digital Rights and Principles shows that increasing the profile of the Declaration at national level and fostering better stakeholder engagement could help improve outcomes in the years to come 31 .

A competitive, sovereign and resilient EU based on technological leadership

Sweden is active in deploying connectivity infrastructure. A substantial share of households already have access to VHCNs and 5G networks; however, the cost of connecting a household to FTTP is rapidly increasing and the most remote households will be the costliest to cover. 5G in the 3.4-3.8 GHz band, an essential band for enabling advanced applications requiring large spectrum bandwidth, covers 64.5% of Swedish households in 2023, above the EU average (50.6%).

Sweden has a business environment conducive to innovation with good access to finance, as evidenced by the high number of unicorn companies. Enterprises in Sweden have a high take-up of cloud technologies; however, the take up of AI and data analytics is slower . Sweden argued in the roadmap that the insufficient number of ICT specialists, in particular, restricts the take-up of AI. Sweden is developing a STEM-strategy. By increasing the number of engineers, Sweden can better meet the demand on skills.

Sweden continues to strengthen the National Cybersecurity Centre to further enhance cybersecurity. Sweden is also preparing national information and cybersecurity strategy to be presented in 2024. This will be complemented at a later stage by a national strategy on international cyber and digital issues.



Recommendations – Sweden should:

-CONNECTIVITY INFRASTRUCTURE: (i) Continue efforts to achieve full Gigabit coverage, starting with the implementation of the national broadband strategy which sets targets for 2025. Meeting the national targets will be a step towards meeting the Digital Decade targets by 2030; (ii) Ensure sufficient access of new players to spectrum for innovative business-to-business (B2B) and business-to-consumer (B2C) applications and encourage operators to speed up the deployment of 5G stand-alone core networks.

-AI/CLOUD/DATA ANALYTICS: (i) Maintain attention to encourage the use of AI and big data analytics by enterprises in Sweden; and (ii) Liaise with the Cloud IPCEI Exploitation office and/or the coordinators and the Member States participating in the IPCEI-CIS.

-CYBERSECURITY: Continue the implementation of the 5G Cybersecurity Toolbox to ensure secure and resilient 5G networks.

Protecting and empowering EU people and society

The level of digital skills of the population and the share of ICT specialists among the workforce ensure that Sweden will make a strong contribution to the EU targets. Sweden relies heavily on developing and using digital solutions which require a high level of digital skills. Sweden scores well above the EU average in both basic digital skills and ICT specialists; in the former area, however, there is a disparity between rural and non-rural areas regarding the former. Sweden is increasingly taking measures to meet the demand for basic digital skills as well as the demand from industry for more ICT specialists and increased digital skills in the general workforce.

Access for all to an e-ID is also essential in order to use digital solutions provided by both public services and enterprises. Sweden has started a number of actions that aim to ensure that everyone has access to an e-ID.

Recommendations – Sweden should:

-BASIC DIGITAL SKILLS: Continue efforts to ensure that the population can improve basic skills, in particular, in rural areas.

-ICT SPECIALISTS: (i) Finalise the discussions on a national strategy focussing on science, technology, engineering and mathematics (STEM); (ii) Take action to ensure that more ICT specialists are women.

-e-ID: Continue efforts to ensure that everyone has access to an e-ID.

-e-HEALTH: Increase efforts to ensure that everyone can access their health records online by 2030, in line with the requirements under the upcoming European Health Data Space regulation. In particular (i) make the data type of medical devices/implants, available to citizens in all regions through the online access services, (ii) Ensure that all data types are made available in a timely manner and (iii) implement technical functionality with the necessary legal basis for legal guardians and authorised persons to access electronic health data on behalf of others. 

Leveraging digital transformation for a smart greening

Sweden underlines the potential of digitalisation to green the economy. Replacing old copper and weak mobile connectivity with broadband is important for the society as a well as for the green transition. Surveys show the importance Swedes attach to the use of digital tools to support greening. Sweden is carrying out several projects to better understand the impact of digitalisation on greening; however, it proposes relatively few concrete actions in this area

Recommendations – Sweden should:

-Develop a coherent approach to twinning the digital and green transitions. First, promote improvements in energy and material efficiency of digital infrastructures, in particular data centres. Second, support the development and deployment of digital solutions that reduce the carbon footprint in other sectors, such as energy, transport, buildings, and agriculture, including the uptake of such solutions by SMEs.

-Monitor and quantify the emission reductions of the deployed digital solutions in line with the relevant EU guidance and with the support of the methodology developed by the European Green Digital Coalition , in view of future policy development, as well as of attracting relevant financing.

(1)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024:  https://digital-strategy.ec.europa.eu/en/news-redirect/833351 . 

(2)

Information last updated on 31 May 2024.

(3)

The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(4)

This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(5)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

(6)

 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(7)

 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(8)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024:  https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(9)

 Information last updated on 31 May 2024.

(10)

Compared to the previous DESI data, where operators used to report estimated figures for broadband coverage in terms of homes passed, in DESI 2024 the households’ broadband coverage has been processed using data provided by operators at the address level. Due to the detailed geographical spatial resolution, the reporting became more robust and pertinent, leading also to minor differences compared to previous editions.

(11)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

(12)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024:  https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(13)

Information last updated on 31 May 2024.

(14)

 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(15)

 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(16)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

(17)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024:  https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(18)

Information updated on 31 May 2024.

(19)

 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(20)

 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(21)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

(22)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024:  https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(23)

 Information last updated on 31 May 2024.

(24)

 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(25)

 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(26)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

(27)

 Special Eurobarometer 551 on ‘the Digital Decade’ 2024:  https://digital-strategy.ec.europa.eu/en/news-redirect/833351

(28)

Information last updated on 31 May 2024.

(29)

 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation.

(30)

 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion Policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.

(31)

 See SWD ‘Digital Decade in 2024: Implementation and perspective’ with annexes, SWD(2024)260:  https://digital-strategy.ec.europa.eu/en/news-redirect/833325 , Annex 4. 

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