EUROPEAN COMMISSION

Brussels, 27.9.2023

COM(2023) 570 final

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

Report on the state of the Digital Decade 2023

{SWD(2023) 570 final} - {SWD(2023) 571 final} - {SWD(2023) 572 final} - {SWD(2023) 573 final} - {SWD(2023) 574 final}

Contents

1. Introduction: delivering the Digital Decade    

2. Key drivers for the digital transformation of Europe in 2022    

3. Digital transformation for a sovereign and competitive Europe    

3.1 Cardinal point: digital infrastructures    

3.1.1 Target: gigabit and wireless high-speed networks for all    

3.1.2 Target: semiconductors    

3.1.3 Target: edge nodes    

3.1.4 Target: quantum computing    

3.2 Cardinal point: digitalisation of businesses    

3.2.1 Target: take-up of digital technologies    

3.2.2 Target: digital intensity of SMEs    

3.2.3 Target: unicorns    

3.3 Digital Decade objective: cybersecurity    

3.4 Digital Decade objective: resilience    

4. Digital transformation to empower EU people and society    

4.1 Cardinal point: digital skills    

4.1.1 Target: basic digital skills    

4.1.2 Target: ICT specialists    

4.2 Cardinal point: digitalisation of public services    

4.2.1 Target: key public services    

4.2.2 Target: electronic identification    

4.2.3 Target: electronic health records    

4.3 Digital Decade objective: safeguarding fundamental rights and empowering democratic life    

4.4 Digital Decade objective: promoting a human-centred environment - focus on protecting children    

5. Digital transformation to support the EU Green Deal    

6. International dimension    

7. Conclusions    

1. Introduction: delivering the Digital Decade

The first State of the Digital Decade report takes stock of the EU’s progress towards a successful digital transformation for people, businesses, and the environment as set out in the Decision establishing the Digital Decade Policy Programme 2030 1 (“the Digital Decade Decision”). It reviews digital policy developments and describes how the EU is advancing towards the agreed targets and objectives, thus outlining where the EU stands at the outset of the implementation of the Digital Decade Policy Programme. 

The overall analysis of the EU’s progress against the Digital Decade objectives and targets is shown below in Figure 1 and the country reports presented in an annex to this report provide a more detailed picture.

Figure 1: Taking stock of progress towards Digital Decade targets set for 2030 2

Figure 1 highlights the need to accelerate and deepen the collective efforts, including through policy measures and investment 3 in digital technologies, skills and infrastructures, which are critical geopolitical, societal, economic and environmental enablers. On this basis, this report includes concrete recommendations to Member States ahead of the adoption of their national strategic roadmaps and for their future adjustments. In its annex, the country specific recommendations are based on each Member State’s performance and potential to contribute to collective efforts towards achieving the Digital Decade targets and objectives.

This report also includes the monitoring of the European Declaration on Digital Rights and Principles for the Digital Decade, which translates the EU’s vision of digital transformation into principles and commitments 4 . With the Declaration, the EU puts people at the centre of the digital transformation, supporting solidarity and inclusion through connectivity; restating the importance of freedom of choice and a fair digital environment; fostering participation in the digital public space; and increasing security and sustainability. The Declaration gives a clear reference point about the type of digital transformation that the EU wants, providing notably a guide for policy makers and companies when dealing with new technologies.

The Digital Decade Policy Programme relies on close cooperation with Member States to ensure collective progress and the involvement of all stakeholders at European, national, regional and local levels. It is complementary to the European Semester of economic and social policy coordination, as well as to the implementation of the Recovery and Resilience Facility (RRF), which includes a strong digital dimension: currently 26% of the Recovery and Resilience Plans’ total allocation (EUR 130 billion of EUR 502 billion) is devoted to the digital transformation 5 .

2. Key drivers for the digital transformation of Europe in 2022

2022 has witnessed a further acceleration of the key trends affecting EU’s digital transformation: ever faster technological developments, such as those on generative Artificial Intelligence (AI), climate change and the associated societal and economic concerns, a growing demand for high-speed connectivity 7 , the rise of internal and external risks to democracy and EU values, and the multi-polarisation of the global scene against an intensifying technological race 8 . The potential impact of technological change is significant and will require the EU to be agile and swift in its transformation.

2022 has magnified the importance of geopolitics, against the backdrop of Russia’s war of aggression against Ukraine, as well as of heightened economic fragmentation risks in some domains in light of competing strategic interests and values. Geopolitics has entered resoundingly into people’s and businesses’ everyday activities with a rise in living costs, a steady and significant increase in the number of cyberattacks in Europe, and the disruption of products and services supply chains 9 .

Digital technologies are at the centre of these geopolitical tensions and of an intensifying technological race, where speed and scale play a critical role to gain and maintain leading positions in the future global economy 10 . Systemic digital innovations have the potential to create spill-over effects across economic sectors. This will give a further edge to established business leaders in the global digital ecosystem, resulting in significant effects on the EU’s competitiveness, growth, and sovereignty.

Figure 2: Composition of activities by digital area in selected geographical areas (2009-2022)

Source: Calza et al., “Analytical insights into the global digital ecosystem (DGTES)”, 2023 11 .

Ranking as one of the largest industries, the global ICT market is forecast to reach a size of EUR 6 trillion in 2023. However, the EU’s position in the global ecosystem, illustrated in the Figure 2, could be substantially improved. Even more importantly, the EU’s share of global revenue in the ICT market has drastically fallen in the last decade, from 21.8% in 2013 to 11.3% in 2022, while US’s share increased from 26.8% to 36%. 12  Currently, the EU relies on foreign countries for over 80% of digital products, as well as for services, infrastructures, and intellectual property. For example, the US and the EU are up to 75-90% production-dependent on Asia for semiconductors 13   14 . 

In this context, over the last year, the EU has stepped up action to re-assert its technological leadership and facilitate digital transformation while fostering its resilience 15 . Building on the world’s largest integrated market area 16 , the EU has boosted action to address strategic dependencies, notably on critical raw materials, semiconductors, IT software (cloud and edge software), and cybersecurity technologies and capabilities 17 . Both reforms and investments have been put in place to this effect, thus contributing to the achievement of the Digital Decade. For example, since its presentation in February last year, the EU Chips Act has given the market the right signals and already EUR 100 billion in planned public and private investments have been announced 18 . The EU has also invested in high-performance computers, of which the EU now holds two of the top five in the world 19 . Finally, targeted research and innovation (R&I) efforts, such as those under Horizon Europe and the European Defence Fund, are also crucial to boost EU’s R&I positioning compared with its global competitors, and thereby further contribute to EU’s long-term competitiveness and resilience and to the reduction of strategic dependencies 20 .

In more detail, with EUR 165 billion in EU funding expected to directly contribute to the Digital Decade targets, the EU is already supporting the Digital Decade through several programmes, notably with the Recovery and Resilience Facility 21 . However, as shown in Figure 1 above (“Taking stock of progress toward 2030”), a successful achievement of the EU’s digital transformation is far from assured and will require additional policy measures, actions and investments, highlighting the importance of joining forces notably through multi-country projects (MCPs). This is made even more necessary by the challenging geopolitical context and global technological race.

Accelerating the delivery of new common industrial digital projects will be a critical element of the Digital Decade. The establishment and implementation of MCPs, pooling EU, Member States’ and private resources, will be more agile and flexible thanks to the European Digital Infrastructure Consortia (EDIC), the new implementing mechanism introduced by the Digital Decade Decision. This is highlighted by the significant number of projects which have already been proposed by Member States to be implemented through EDICs. 22

At the same time, the Commission has updated its State-aid toolbox and in particular endorsed amendments to the General Block Exemption Regulation (GBER) 23 , which have the potential to facilitate, simplify and speed up public support for the EU’s digital transitions, facilitating investments in digital technologies and connectivity. This includes new possibilities for testing digital innovation hubs and experimentation facilities, ambitious connectivity projects for the deployment of fixed broadband networks, mobile networks such as 5G networks, as well as backhaul networks, to bring high quality infrastructure to areas suffering from insufficient broadband coverage, in particular in rural and remote areas. The revised GBER also fosters aid for certain projects of common interest, financed under CEF2 or awarded a Seal of Excellence under CEF2, particularly relevant for cross-border 5G corridors and certain backbone networks and submarine cables. The revised GBER also exempts from notification certain aid measures in the form of a vouchers for consumers to facilitate teleworking, online education, training services or for SMEs, provided that certain conditions are fulfilled.

3. Digital transformation for a sovereign and competitive Europe

The EU’s Digital Decade is being shaped around the ambition of empowering a more digitally sovereign, resilient, and competitive EU. In this context, digital infrastructures, in particular connectivity, are the backbone of the EU’s digital transformation, and the digitalisation of businesses is essential to nurture strong digital European systems and increase the EU’s digital capacity and know-how. Progress in these cardinal points 25  is essential to foster the rise of European global digital players, who will design tomorrow’s business models and shape digital technologies and applications that embed European values and contribute to the EU’s interests.

The following sections monitor progress in relation to these two cardinal points. The analysis is completed by a monitoring of progress also in relation to the Digital Decade objectives related to cybersecurity and resilience, taking into account their importance and relevance with regards to the current context.

3.1 Cardinal point: digital infrastructures

The Digital Decade Decision sets four targets with regard to digital infrastructures. First, gigabit coverage should be available for everyone and 5G performant networks in all populated areas. Second, the EU should produce at least 20% of the world’s cutting-edge semiconductors. Third, the EU should deploy at least 10 000 climate-neutral, highly secure edge nodes. Fourth, the EU should equip itself of the first computer with quantum acceleration by 2025.

3.1.1 Target: gigabit and wireless high-speed networks for all

Fixed and mobile connectivity are a prerequisite and an essential enabler for digital transformation and inclusion, as reflected in the Declaration on Digital Rights and Principles. The EU is approaching a defining moment where new connectivity services will rapidly emerge from technological developments and synergies between terrestrial, space and sea infrastructures. The stakes are high as 5G and 6G-enabled activity are estimated to generate EUR 3 trillion in growth by 2030 globally 26 . Making this a reality will require a significant effort within a policy mix associating regulatory incentives, cooperation in MCPs and funding. 

At the outset of the Digital Decade, the EU is still far from achieving the Digital Decade connectivity targets. Fibre networks, which are critical for delivering gigabit connectivity, only reach 56% of households. While 5G population coverage stands at 81% 27 , the deployment of 5G stand-alone networks is lagging behind. 5G is still falling short in quality with regards to end-users' expectations and industry needs, as well as in addressing the divide between rural and urban areas 28 . The EU is lagging behind in terms of coverage compared to the US, where 96% of the population is covered by 5G 29 .

There is also less investment in the EU compared to its key trading partners. Public investment in the US has recently reached USD 90 billion only in the context of the Infrastructure Investment and Jobs Act and American Rescue Plan 30 . To compare, in the EU, whilst unprecedented funds have been made available to support progress towards the 2030 connectivity targets, these amount to just over EUR 23 billion in grants available, under EU Programmes for the 2021-2027 programming period, including around EUR 16 billion under the RRF 31 . Moreover, between 2014 and 2021 EUR 53.71 billion of state aid for broadband had already been approved by or communicated to the Commission. In terms of total fixed capital investment in fibre and 5G per capita adjusted to GDP, only EUR 104 were invested in the EU against EUR 260 in Japan, EUR 150 in the US and 110 in China 32 . A JRC study on international benchmarking of digital investments presents a similar picture, finding that private investments (gross fixed capital formation) on telecommunication equipment by the US’s ICT sector reached EUR 590 bn between 2014 and 2020, representing the double the amount invested by the EU’s ICT sector (EUR 277 bn), and 1.8 times the amount invested by the EU after GDP correction 33 . 

This situation needs to be analysed also considering the different scale achieved by operators active in the EU compared with those in the US. While a few European operators are active across multiple Member States, none of these operators compare to the scale achieved by operators on the US market, where five operators offer fixed or mobile networks across the entire country.

Investing in connectivity, including in rural and remote areas, is key to ensuring equal access to digital opportunities and activities that require increasingly higher speeds, in line notably with the Declaration on Digital Rights and Principles. Currently, more than half of rural households (55%) are still not served by any fixed very high-capacity network despite progress in fibre-to-the-premises deployment; 65.3% of populated rural areas are not covered by 5G; and 9% of rural households are not yet covered by any fixed network at all 34 . Building on the European Pillar of Social Rights 35 , those investments need to ensure connectivity also for vulnerable persons and those at higher risk of exclusion or with less economic power, such as older persons and persons with disabilities. 

The remaining gap between total and rural coverage indicates that more investment is needed to ensure full gigabit coverage across the whole single market and 5G coverage of populated areas, thus reducing regional disparities. Reaching the Digital Decade targets for gigabit connectivity and 5G may require a total investment of up to EUR 148 billion, if fixed and mobile networks are deployed independently and a “full 5G” - offering European citizens and businesses the full capabilities that can be offered by 5G mobile networks - is deployed. A further EUR 26-79 billion in investment may be required to ensure full coverage of transport paths including roads, railways, and waterways, bringing the required total investment to more than EUR 200 billion 36 . As 2030 approaches, the more intensive, industrial use of connectivity for internet 4.0 scenarios, and the increasing security requirements, are likely to push the investment needs even higher. Public funding may be necessary to complement private investment where needed, to adequately address market failures in compliance with the applicable State aid rules 37 . Those public investments need to ensure connectivity also to be a reality for vulnerable persons and those at higher risk of exclusion or less economic power such as older persons and persons with disabilities.

Space connectivity is becoming more critical for the EU’s sovereignty and technological leadership. Satellite broadband can bring broadband services with up to 100 Mbps download speeds to very rural and remote areas, where no fixed or mobile very high-capacity networks are available, even if affordability remains crucial to facilitate take-up in these areas. They can also provide resilient emergency services in disaster or crisis situations. With the infrastructure for resilience, interconnectivity and security (IRIS2) programme launch in 2022, the EU is affirming its willingness to become a major player in space policy. With an initial EU budget of EUR 2.4 billion, IRIS² makes space a way to strengthen our autonomy, connectivity and resilience. The IRIS² satellite constellation will provide a secure network for the EU’s governments, which will be more stable against cyberattacks through quantum key encryption.

The EU also needs to step up its efforts to improve the security of its critical communications infrastructure. Ensuring the resilience and security of 5G networks is critical given the importance of the connectivity infrastructure for the digital economy and the dependence of many critical services on 5G networks in non-EU countries. The full application of the 5G toolbox and the eventual application of restrictions on high-risk suppliers for key assets in the EU will be essential 38 . Recent events have also shown the vulnerability of the EU’s key infrastructure, including submarine networks. 99% of the world’s digital communications transit through the global cable network and roughly USD 10 trillion in financial transactions are sent via these cables each day 39 . The EU needs to speed up its efforts to ensure digital sovereignty, security of supply and competition in this market. 

Overall, the significant market and technology changes to connectivity mean major additional investments and targeted regulatory measures are needed to boost network deployment, ensure a level playing field and unleash the full potential of the single market. In this context, the Commission launched an exploratory stakeholder consultation on the future of the connectivity sector and its infrastructure from 23 February to 19 May 2023. The objective of the consultation was to gather views on the changing technological and market landscape and how it may affect the electronic communications sector as well as the types of infrastructure that the EU requires to lead the digital transformation in the coming years.

3.1.2 Target: semiconductors

Semiconductors are essential to all digital technologies and their supply chains are global in nature. The high concentration of semiconductor production in Asian countries has exacerbated the fragility of the semiconductor supply chain. The increasing competition for semiconductor leadership has led to substantial investments by all highly industrialized economies to develop domestic capacity 40 . However, as new fabrication plants and extensive R&D programmes require billions in investment, no region or player alone has end-to-end capabilities for semiconductor design and manufacturing 41 .

Reinforcing EU’s position on the semiconductor sector and building a resilient semiconductor production chain, is a major challenge requiring massive investments 42 . The EU has core strengths in R&D and manufacturing equipment. However, besides advanced manufacturing, the EU must address current weaknesses in chip design and in packaging and assembling, which represent a significant part of the added value in the supply chain. All European players will need to make a significant effort to reach the very ambitious Digital Decade target. In fact, to achieve the target, the EU’s value of revenue in semiconductors may need to quadruple by 2030 because the demand for chips will grow rapidly and is expected to exceed USD 1 trillion by 2030, essentially doubling its value in this decade. 

Against this background, the EU Chips Act aims to build on Europe’s strengths and tackle remaining weaknesses, while setting measures to prepare, anticipate and respond to future supply chain disruptions. It is accompanied by a targeted and well-designed State aid framework 43 which has already ensured the swift mobilisation of funds in support of the Chips Act’s objectives 44 . The EU Chips Act will boost EU’s great potential for developing and manufacturing chips in important domains such as automobile, industrial automation, internet of things, aerospace, defence, data centres, telecommunications and healthcare. 

A fundamental step in this regard is also represented by the Important Project of Common European Interest on Microelectronics and Communication Technologies (IPCEI ME/CT) approved in June 2023 by the Commission. This IPCEI involves 19 Member States, 56 companies and over 40 associated participants and it mobilises EUR 21 billion of private and public investments for 68 multi-country projects in research, innovation, and first industrial deployment. It will contribute to the technological advancement of many sectors, including communications (5G and 6G), autonomous driving, AI and quantum computing 45 .

3.1.3 Target: edge nodes

The development of edge nodes will represent a paradigm change for data storage and processing, moving to a much more decentralised model (i.e. closer to users, on their mobile, computer, car-based or local devices in cities), reducing the volume of data that needs to be transmitted over the network, along with improving cloud computing's overall performance. Global spending on edge computing is steadily on the rise: it has reached EUR 190 billion in 2023, an increase of 13.1% over 2022, and is expected to reach nearly EUR 289 billion in 2026. 46  By 2025, edge computing will complement cloud computing for nearly every enterprise 47 .

The development of edge nodes in the EU is at a very early stage with only three total commercial deployments of edge computing in Europe in 2022, together with announcements of partnerships and pilots in 18 Member States 48 , very far from the objective of 10 000 secure, sustainable edge nodes by 2030. Success on the achievement of this target will require a collective focus on setting up a whole ecosystem, based on a mix of skills, infrastructure, security, innovation and public and private cooperation. 

As a start, the EU has set up a comprehensive set of measures, in particular with the support of the Important Project of Common European Interest for Next Generation Cloud Infrastructure and Services (IPCEI-CIS), to ensure rapid and balanced development with the objective of avoiding a divide. A divide would imply an unequal distribution of economic opportunities for companies and limit the cross-border usage of latency-critical applications like autonomous driving, which would have consequences for EU competitiveness.

3.1.4 Target: quantum computing

Quantum technologies are strategic for the EU, given their foundational role in future digital ecosystems and far-reaching economic and social impact, including through security, defence and space applications. Unavoidably, quantum developments face the same difficult geo-economic and security challenges as semiconductors.

With nearly EUR 7 billion combined, Europe ranks only behind China in public investment in quantum 49 . National initiatives aim to develop Europe’s research excellence into fully-fledged quantum ecosystems. Since 2021, at least eight Member States have launched national quantum programmes either in the form of consortia (e.g., Hungary and Portugal) or by direct R&D investment schemes dedicated to quantum technologies (e.g., Austria), mobilising often significant funding in countries such as Germany (EUR 2 billion, 2021) 50 , France (EUR 1.8 billion, 2021) 51  and the Netherlands (EUR 615 million, 2021) 52 . 

However, more coordinated efforts are needed, in particular to create a vibrant ecosystem of research organisations and start-ups. Despite the launch of the Quantum Flagship programme in 2018 53 , a substantial gap can indeed be observed between the EU and a number of other major world regions as regards private sector investments in quantum (e.g. the US), in a context where around 25% of quantum industry participants globally are based in Europe, but less than 5% of global funding.

3.2 Cardinal point: digitalisation of businesses

The digitalisation of businesses is one of the most crucial current elements for the success and growth of the economy in a highly volatile environment. In a context of a volatile economic environment and supply chains uncertainty, digitalisation is key for advancing companies’ business models, achieving greater efficiency and fostering their resilience, as well as for exploring new opportunities and generating new revenue streams, especially for small and medium-sized enterprises (SMEs). In terms of competitiveness, digitalisation is strongly contributing to growth and increased productivity, improving the capacity to diversify, and helping to cut administrative burden and related costs.

The Digital Decade Decision sets three targets with regard to the digital transformation of businesses. First, at least 75% of EU enterprises shall have taken up cloud computing services, big data, and/or AI. Second, more than 90% of EU SMEs shall have reached at least a basic level of digital intensity. Third, the EU facilitates the growth of its innovative scale-ups and improves their access to finance, leading to at least doubling the number of unicorns.

3.2.1 Target: take-up of digital technologies

The adoption of digital technologies by European companies is still well below these 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 66% of businesses will use cloud, 34% big data and 20% AI, far from the 75% objective set for 2030 54 . Another major concern is the data service providers sector, increasingly dominated by non-European players. Even in a context of significant market growth, European cloud providers’ market share has decreased from 26% in 2017 to 16% in 2020 55 .

The Commission has focused on combining fit-for-purpose legislation and governance with investment in standards, tools, infrastructures, innovation capacities, and skills to ensure the availability of data. The Data Governance Act creates a favourable regulatory environment through measures that promote voluntary data sharing by improving trust in data exchanges, increasing data availability, and overcoming technical barriers to data reuse. The Data Act complements these rules by clarifying legal access to and use of data, leading to a truly European data market with yearly efficiency and productivity gains estimated at up to EUR 196.7 billion by 2028 56 . Moreover, the creation of data spaces in strategic economic sectors, such as health, agriculture, energy, transport and environment, will provide access to more data in a secure and trusted environment and give rise to innovation thanks to the support of the Digital Europe programme. Finally, the adoption of the AI Act should provide the necessary legal certainty to boost AI adoption by businesses in Europe 57 . 

Some Member States have launched initiatives to foster the uptake of digital technologies by businesses 58 , but more needs to be done to collectively achieve the Digital Decade target.

3.2.2 Target: digital intensity of SMEs

Progress toward the digitalisation of SMEs is still insufficient and quite uneven across the EU 59 . It is also at a lower rate than in the US 60 . As shown by the latest European Investment Bank (EIB) survey, there are twice as many SMEs with an international portfolio of so called “4IR patents” (IoT, cloud, 5G, AI) in the US than in the EU 61 . A more ambitious and coordinated policy framework is crucial for promoting digitalisation by addressing infrastructure gaps, improving digital skills, developing the innovation environment (especially by using European Digital Innovation hubs), and regulating efficiently.

3.2.3 Target: unicorns

The EU seems to have progressed well recently with respect to this target, with analysts 62 pointing also to a strong growth in the number of EU-based unicorns in the past decade. Should this trend continue 63 , the EU is likely to meet the Digital Decade target on the number of unicorns in two years.

Despite this, further effort is needed to achieve a leadership position on the global stage, facilitating the growth of the Union’s innovative scale-ups and improving their access to finance. At the start of 2023, only 249 unicorns were based in the EU 64 as compared to 1 444 in the US and 330 in China. Significant further efforts to stimulate the scale-up ecosystem are also needed. Indeed, currently there are no EU start-up ecosystems in the top 10 globally 65 . The best EU ecosystem – Berlin – was ranked 13th worldwide followed by Amsterdam (14th), and Paris (18th). The situation is even more critical in deep tech, including AI, where EU venture capital is still far behind the US 66 .

3.3 Digital Decade objective: cybersecurity

The global cyber threat landscape continues to be volatile, with a rise in cyberthreats of 150% in a year 69 , in particular distributed denial of service (DDoS) attacks and an estimated 280 ransomware incidents attacks per month 70 . During 2021, 22.2% of EU enterprises experienced an ICT security-related incident leading to unavailability, destruction or corruption of data, or the disclosure of confidential data 71 . Increased dependencies and the development of new technologies, such as quantum computing and AI, add complexity to the threat landscape and introduce new risks for which further preparedness is needed. 

While cybersecurity is not included as a target for 2030, improving resilience to cyberattacks, contributing to increasing risk-awareness and the knowledge of cybersecurity processes, and increasing the efforts of public and private organisations to achieve at least basic levels of cybersecurity is one of the general objectives set out in the Digital Decade Decision 72 . Moreover, the Digital Decade Decision points to the development of a possible specific target as part of its review planned in 2026 73 .

Furthermore, the signatories of the Declaration on Digital Rights and Principles 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 74 .

Since 2020, the EU has significantly strengthened its policy landscape to prevent, detect, deter, and respond to cyberattacks on the EU, notably with the NIS2 Directive 75  and the opening of the European Cyber Security Competence Centre in Bucharest, which aims to further increase the EU’s cybersecurity capacities and collaboration between Member States in this field. With the adoption of the e-evidence package this year, Member States’ authorities now have effective tools at their disposal to order the disclosure of digital evidence of cyberattacks of criminal nature, and the 2022 Second Additional Protocol to the Budapest Convention on Cybercrime, which the Commission negotiated on behalf of the Union, strengthens our cooperation with third countries on these matters. As an example of sectoral action, the Digital Finance Strategy 76  and, in particular, the Digital Operational Resilience Regulation 77 set out measures to ensure that financial institutions have adequate safeguards against cyber-risks.

However, more needs to be done to improve situational awareness, crisis preparedness and response, as well as supply chain security in a context of stark growth in the highly impactful and sophisticated supply chain attacks, where bad actors exploit vulnerabilities in suppliers’ products to gain a foothold inside organisations. The proposed Cyber Resilience Act 78 , which is to introduce cybersecurity requirements for hardware and software made available on the European market, is set to become a major game changer in our efforts to combat this type of attacks. The proposed Cyber Solidarity Act 79 will enhance cyber threat detection, preparedness and response. Finally, there is an urgent need to address the lack of cybersecurity professionals in the EU, with estimations on the shortfall ranging between 260 000 and 500 000. The launch of the Cybersecurity Skills Academy 80 has to be built upon to counter this.

3.4 Digital Decade objective: resilience

The COVID-19 pandemic, Russia’s war of aggression against Ukraine, and generally the current geopolitical risks underline how important it is to ensure the EU’s digital transformation is both secure and resilient. Reinforcing the Member States’ collective resilience is one of the general objectives set out in the Digital Decade Decision 82 .

This entails first the identification and better monitoring of the value and supply chains that are strategic for the EU to promptly address high-risk dependencies. Action to identify and address strategic dependencies is being taken through several means. First, the Commission stepped up efforts to identify strategic dependencies across sensitive industrial ecosystems 83 . It continues to do this, for example through the Observatory of Critical Technologies, as well as updated and refined analyses of strategic dependencies 84 . Second, a wide range of policy actions have been taken to address the identified dependencies, through adapted regulatory frameworks (e.g. the EU Chips Act) and other policy instruments (such as e.g. in the context of the updated Industrial Strategy and the Action Plan on synergies between civil, defence and space industries). The recent proposal for a Critical Raw Materials Act 85  also aims to address these challenges and to ensure a secure and sustainable supply of critical raw materials to meet the EU’s needs and stay resilient. Third, Important Projects of Common European Interest, as well as Industrial Alliances 86 , continue to play an important role in addressing known strategic dependencies and increasing the resilience of the value and supply chain that underlies digital technologies.

However, the vulnerability of the digital environment as a whole is still not monitored comprehensively, along the lines of the macroprudential stress tests applied in the financial sector. While the Digital Decade is a first step towards such a comprehensive monitoring, an extensive stress testing would require a new analytics infrastructure and expansive datasets to simulate potential disruptions.

4. Digital transformation to empower EU people and society

Putting people at the centre of the digital transformation of our societies and economies is at the core of the EU vision for the Digital Decade. The EU and its Member States have agreed to ensure digital technologies enhance the well-being and quality of life of all Europeans, respect their rights and freedoms, and promote democracy and equality. This is reflected in the European Declaration on Digital Rights and Principles, which shall be taken into account by Member States when cooperating to achieve and measure progress towards the general objectives. It is also reflected in the general objectives and targets of the Digital Decade Decision, focused around two further cardinal points: digital skills and digitalisation of public services.

The following sections monitor progress in relation to these two cardinal points. The analysis is completed by a monitoring of progress also in relation to the Digital Decade objectives related to safeguarding fundamental rights and empowering democratic life and protection of children, given their particular importance in the context of current key challenges.

4.1 Cardinal point: digital skills

The Digital Decade Decision sets concrete targets for 2030 to ensure that people and society at large are given appropriate digital skills to fully benefit from and contribute to current and future opportunities in the information space. The targets envisage that at least 80% of those aged 16-74 shall have at least basic digital skills and at least 20 million ICT specialists shall be employed within the EU, with the aim of achieving gender balance.

4.1.1 Target: basic digital skills

Increasing digital skills in the population is one of the biggest challenges of the EU, cutting across all objectives and targets. In this context, the Declaration on Digital Rights and Principles states that everyone should be able to acquire all the basic and advanced digital skills they need. Still, 46% of Europeans, in particular among older people, do not currently have the basic digital skills, hampering the use of digital technologies for everyday tasks and access to services offered online 89 . While the digital skills gap between men and women has decreased in recent years 90 , it is still significant for people who are older, have received less formal education, or live in a rural area or an outermost region. Significant differences also remain between Member States. Based on past observed data, only 59% of the population would have at least basic digital skills by 2030, if no further action is taken 91 .

To tackle these issues, the EU has considerably reinforced its action through the Structured Dialogue on digital education and skills 92 to support Member States in applying an integrated, coherent, and more ambitious whole-of-government approach. It led, in April 2023, to the adoption of two proposals for Council Recommendations which aim to support Member States and the education and training sector in providing high-quality, inclusive and accessible digital education and training to develop the digital skills of European citizens 93 . In addition, the Commission is mobilising several funding programmes to boost digital skills, for a total amount of EUR 26.9 billion, notably from the Digital Europe Programme, Erasmus+, the European Social Fund Plus and about 18% of the RRF digital expenditure (i.e., EUR 23 billion) 94 . Finally, given the urgency to boost skills, including digital skills at all levels, President von der Leyen announced during the State of the Union address in 2022 95 that 2023 would be designated as the European Year of Skills 96 .

Nonetheless, reaching the 2030 Digital Decade target on basic skills consequently requires significant investment and targeted policy interventions.

4.1.2 Target: ICT specialists

Ensuring an adequate number of ICT specialists is critical for a successful digital transformation 97 . As reliance on digital technology increases, the workforce must keep up with the evolving skills demand and the objective of regaining leadership. While the number of ICT specialists employed in the EU is growing, so is the number of companies operating in the ICT sector, and a majority of companies looking for ICT specialists continue to report substantial difficulties in recruitment 98 . The lack of available staff with the right set of skills is hampering investments for 85% of EU firms 99 , with SMEs struggling more often in filling ICT vacancies 100 .

The EU needs to step up its efforts in the global race for talents and particularly in the field of science, technology, engineering, and mathematics (STEM). Despite the numerous initiatives and EU funding programmes that play a significant role in developing, attracting, and retaining skills, under a business-as-usual scenario, the number of ICT specialists in the EU will be close to 12 million by 2030 101 . Hence, Member States should collectively more than double the average increase of ICT specialists to close the gap with the Digital Decade target. Innovation depends on the successful nurturing, attraction and retention of talented individuals and a diverse array of skills. High-quality education from early stages and attractive working conditions are key to attracting and ensuring a flow of highly skilled and talented individuals who can help contribute to the digital transformation and give the EU a competitive edge in strategic value chains 102 .

Leveraging women’s contributions is essential for tackling the shortage of ICT specialist skills and building an inclusive digital Europe. The severe and persistent gender gap in the ICT sector undermines how digital solutions are designed and deployed, with proven negative consequences for social equality and welfare overall. In 2021, 81% of employed ICT specialists were male 103 . To increase the number of women in ICT, all EU Member States must take action to promote their access to this field starting from an early age. 

4.2 Cardinal point: digitalisation of public services

Access to digital public services, eID and electronic health records are critical elements of a human-centred digital transformation. The Digital Decade Decision sets concrete targets to ensure that public services, health and care services are available and accessible online for all, in particular, for people in disadvantaged situations, including older people and people with disabilities, as well as people in rural and remote areas. More specifically, the Digital targets provide for 100% online accessibility of key public services and, where relevant, the possibility for citizens and businesses in the Union to interact online with public administrations, online access to their electronic health records for 100% of Union citizens, and access to secure electronic identification (eID) for 100% of Union citizens. While working towards the digital transformation of digital public services and their availability online, Member States need to ensure that the services they offer are accessible to all persons, without discrimination and are aligned with EU fundamental rights

4.2.1 Target: key public services

The situation regarding access to online public services has slightly progressed for businesses and citizens but could nonetheless be further improved. Many Member States are relatively well positioned to achieve the target of 100% online availability of public services for businesses 104  and, in general, 88% of central government services are completely online, compared to 76% for regional government services and 62% of local government services 105 . However significant challenges remain to achieve general objectives such as resilience, sovereignty and a human-centred digital environment.

Member States are investing in the reform of their public sector and its digital transformation: the combined planned investment in digitalising public services and e-government solutions through the national Recovery and Resilience Plans stands at EUR 48 billion 106 . Of this amount, EUR 33.6 billion can be directly linked to the digital public services targets. The implementation of the Single Digital Gateway 107 and of the Once-Only principle will be critical for further stimulating the digitalisation of public services, with the effect of increasing the EU’s competitiveness and achieving a level-playing field within the single market.

While the roll-out of digital public services is progressing steadily, investment in public procurement of innovative digital solutions (e.g., based on AI or big data) is insufficient and would need to increase substantially from EUR 118 billion to EUR 295 billion in order to reach full speed adoption of innovative digital solutions in public services 108 . There is a need for significantly higher investment not only in public services and health, but in all fields of public sector activity, such as transport, security, education and culture, construction, energy, water, and environment.

Furthermore, targeted action is needed to improve cross-border online availability and the overall performance of online public services 109 . Interoperability is a key enabler for this. The Commission has proposed the Interoperable Europe Act 110 to strengthen cross-border interoperability and cooperation in the public sector across the EU. Cross-border interoperability can lead to yearly cost-savings between EUR 5.5 and EUR 6.3 million for citizens and between EUR 5.7 and EUR 19.2 billion for businesses dealing with public administration 111 .

Finally, Member States need to ensure that the digital public services they offer are accessible to all, including older people and people with disabilities, and citizens from other Member States, without discrimination, and that these are aligned with EU fundamental rights, values and principles, such as the once-only principle and user-centricity. The Declaration on Digital Rights and Principles states that everyone should have online access to key public services in the EU. Specifically, the EU and Member States have committed to facilitating and supporting seamless, secure and interoperable access across the EU to digital public services designed to meet people’s needs effectively, including and in particular digital health and care services, notably access to electronic health records.

4.2.2 Target: electronic identification

This Digital Decade target could be achieved thanks to a timely implementation of the European Digital Identity Wallet by the Member States 112 . Thanks to the European Digital Identity Wallet, people and businesses in Europe will have a convenient, secure and interoperable identification service at their disposal. There should be less paperwork and red tape for citizens and companies in all their online transactions, with both public sector bodies and private digital service providers. 

Following a call for proposals in 2022, four pilot projects co-funded under the Digital Europe Programme were launched in April 2023, to test the wallet in a number of everyday situations and its integration into national eID system in 26 Member States and Iceland, Norway and Ukraine. Member States have already scheduled projects for the implementation of the European Digital Identity Wallet in their National Recovery and Resilience Plans.

In order to make sure that our currency, the euro, is fit for the future, in June 2023 the European Commission proposed a legal framework to regulate the essential elements of a digital euro 113 , which would enable the European Central Bank to introduce a digital euro that is widely usable and available. A digital euro will allow business and citizens to have an additional choice of payment with which they can pay widely to other citizens and in shops or e-commerce websites – even without internet connection, and with a high standard of data protection. The goal is for the digital euro to be fully interoperable with the European Digital Identity Wallet.

4.2.3 Target: electronic health records

The digitalisation of health has the potential to transform the healthcare landscape, improving access to care, enhancing patient engagement, and ultimately leading to better health outcomes for individuals and communities, notably in rural and remote areas. Improving access to health data is also the first step towards being able to control the flow of health data and to share it securely: for example, to seek a second opinion or receive treatment from a different healthcare provider.

Overall, the EU performs well on the access to e-health records indicator, and it is on track to meet the EU target of 100% of EU citizens having access to their electronic health records 114 . A successful example of this performance is the EU digital COVID certificate 115 , as a key digital tool contributing to health objectives, cross-border travel and making people’s lives easier, which was put in place in record time at the start of summer 2021. More than EUR 2.3 billion EU digital COVID certificates have already been issued in the EU alone. Several factors contributed to this major achievement: (i) a strong political will across all EU institutions and Member States; (ii) excellent cooperation and coordination between Member States; (iii) funding for Member States. In June 2023, the World Health Organization took up the EU’s digital COVID certification to create a global system that will help facilitate global mobility and protect people across the world from ongoing and future health threats, including pandemics 116 . 

Still, issues to be addressed remain and include expanding the number of connected healthcare providers, the range of accessible data, and the use of eIDAS-authentication to health data access services. With the objective of improving the accessibility of health data, the Commission has made a legislative proposal for a European Health Data Space 117 . In particular, the proposal aims to improve people’s access to their own electronic health data, to support the exchange of health data between healthcare providers, and to encourage the reuse of health data to support research, policymaking and other related purposes.

4.3 Digital Decade objective: safeguarding fundamental rights and empowering democratic life

Digital technologies and services have the ability to shape how we live together and exercise our roles as citizens. They create new ways to exercise and enjoy fundamental rights and freedoms as well as to participate in democratic life, but also new ways in which they can be infringed. This is in particular the case for AI and algorithmic systems which could pose serious risks to human dignity, equality, liberty, security, and invasion of privacy including the potential for misuse of personal data 118 . Technologies are instrumentalised by authoritarian regimes 119 , bringing forward new challenges to democracies, the rule of law 120 , and growing polarisation and online hate speech, both in the EU and globally.

Promoting a human-centred, fundamental-rights-based, inclusive, transparent and open digital environment where secure and interoperable digital technologies and services observe and enhance Union principles, rights and values and are accessible to all, everywhere in the Union, is one of the general objectives set out in the Digital Decade Decision 121 . Furthermore, the Declaration on Digital Rights and Principles includes principles and commitments on access to a trustworthy, diverse and multilingual digital environment, with a view to contributing to a pluralistic public debate and effective and non-discriminatory participation in democracy. It highlights notably the role of very large online platforms in mitigating the risks stemming from the functioning and use of their services, including in relation to disinformation. The EU and the Member States have also committed to supporting the development and best use of digital technologies to stimulate people’s civic engagement and democratic participation.

In this context, thanks to pioneering regulation, the EU is setting the global standard in creating more human-centred online environments and digital technologies for this and the following decades.

With the Digital Services Act, the EU has introduced an unparalleled and comprehensive new regulatory framework to address the societal impacts of digital services in the EU and ensure the highest protection for the fundamental rights of EU citizens online in a non-discriminatory way. On 25 April 2023 the Commission designated 17 Very Large Online Platforms (VLOPs) and 2 Very Large Online Search Engines (VLOSEs) 122 . At the date of this Communication, the stringent obligations on these platforms have entered into force. They were required to adopt risk assessment and risk mitigation measures as part of a yearly cycle, to address the risks their services pose to our democratic societies and people’s rights, including the impact on fundamental rights, disinformation and negative effects on physical and mental well-being and on minors, sale of illegal products and a high-level of consumer protection. In its role as supervisor and enforcer, the Commission is scrutinizing the measures taken by VLOPs and VLOSEs, including their content moderation algorithms, their advertising practices and the design of their recommendation systems 123   124 . The Declaration on Digital Rights and Principles provides a clear reference point for policy makers, as well as companies and experts, when making their assessments. 

With the AI Act, the EU is pioneering a regulation to mitigate the threats posed by AI and algorithmic systems and ensure that high-risk AI systems are designed, deployed and used in full consideration and respect of fundamental rights and democratic values. The Commission proposes to classify some systems as high-risk based on their intended purpose and potential impact. These systems would have to comply with specific requirements, like being based on suitable datasets to avoid unlawful discrimination and enabling human supervision of outcomes. In this context, AI standards currently in development 125 will play a key role by defining technical solutions to fulfil the essential AI trustworthiness requirements specified in the legal text. Moreover, the AI Act proposal seeks to ensure an adequate level of transparency and awareness with an obligation to label deep fakes and inform natural persons when they are interacting with an AI system, which are two key elements in light of the new threats and opportunities linked to generative AI. In view of the acceleration of technological developments and of the mainstream adoption of AI technologies, the Commission has also launched discussions towards an AI Pact. This initiative seeks the voluntary commitment of industry to anticipate the AI Act and to start implementing its main requirements ahead of the legal deadline.

Countering the spread of online mis- and disinformation is essential to creating a human-centred digital environment that empowers democratic life. Addressing this threat gains renewed urgency as generative AI technologies provide new tools to bad actors on an unprecedented scale 126 . Beyond the tools offered by the DSA, the Code of Practice on Disinformation 127 , signed by a broad range of signatories including several major online platforms, contains important commitments to limit the spread of disinformation online and aims to become a Code of Conduct under the DSA 128 .

Empowering independent media actors to provide reliable information online and people to seek out such information is key to strengthening our democratic societies’ overall resilience in the digital age. The Commission proposal for a European Media Freedom Act, currently under negotiation, seeks to improve the functioning of the Single Market for media services as they become more digital and inherently cross-border. When adopted, it will lead to increased investment and competition, thus giving consumers access to a more diverse range of quality media content and contributing to pluralistic public debates, in line with the Declaration on Digital Rights and Principles.

With the Communication on virtual worlds 129 , the Commission proposes actions to support the development and use of virtual worlds in the EU, structured around the objectives of the Digital Decade Decision. The Commission aims for a Web 4.0 and virtual worlds based on EU values and principles and fundamental rights, where people can be safe, confident and empowered, where people’s rights as users, consumers, workers or creators are respected, and where European businesses can develop world-leading applications, scale up and grow.

4.4 Digital Decade objective: promoting a human-centred environment - focus on protecting children

Europe’s human-centred digital transformation must protect the most vulnerable members of society from online harms. The internet has accelerated the emergence and development of new threats and trends and the figures are alarming: data collected by the EU-funded Safer Internet Centre helplines show significant increases in the number of people seeking help or advice between 2021 and 2022 on sextortion (up +60%), online reputation (up +32%) and e-crime (+30%). In 2022, 60% of all contacts were made by children aged between 12 and 18, and almost 7.5% from children aged between 5 and 11, reflecting that children are going online and experiencing difficulties at an ever earlier age.

A safer digital environment and more appropriate content for children and young people is a key priority of the Digital Decade. The Declaration on Digital Rights and Principles provides that children and young people should be protected from crimes committed via or facilitated through digital technologies. The Declaration contains several commitments in this respect, from providing education to navigate the digital environment, to protecting children and young people from harmful and illegal content, as well as from profiling for advertising purposes, and involving children themselves in the development of digital policies in which they are concerned.

The EU’s commitment to a digital transformation that works for children is reinforced in the DSA, which includes specific provisions for the protection of minors. The work of the Safer Internet Centres and the actions taken under the Better Internet for Kids strategy 130  will support the implementation of the relevant provisions in the DSA. Online age verification is a priority for the Commission: contributing to the target on access to a digital ID, the Commission will promote the use of the EU Digital Identity Wallet to this effect.

The fight against child sexual abuse and exploitation remains also a key priority for the EU. In May 2022, the Commission adopted a proposal for a Regulation to prevent and combat child sexual abuse 131 setting out clear obligations for online service providers to prevent the risk of child sexual abuse and exploitation on their services, and to detect, report and remove these crimes when they occur.

5. Digital transformation to support the EU Green Deal

The ICT sector is an important source of emissions and waste. Today, it accounts for approximately 7% to 9% of global electricity consumption, forecast to rise to 13% by 2030 132 , for 2% to 4% of total GHG emissions and increasing amounts of eWaste 133 . The fast-evolving nature of digital technologies and the possible sharp increase in digitally enabled services is likely to reinforce this situation.

At the same time, the digital transformation is a vital ally in our efforts to reduce our environmental footprint 134 . The Digital Decade Decision sets the objective of ensuring that digital infrastructure and technologies, including their supply chains, become more sustainable, resilient, and energy- and resource-efficient, with a view to minimising their negative environmental and social impact 135 . Indeed, the Decision includes several references to the sustainability of infrastructures targets, notably edge nodes and semiconductors. The Declaration on Digital Rights and Principles promotes digital products and services with a minimum negative impact on the environment and on society, as well as digital technologies that help fight climate change. Moreover, the Declaration provides that access to accurate and easy-to-understand information on the environmental impact and energy consumption of digital products and services should be available to everyone. Finally, the Council Conclusions Digitalisation for the benefits of the environment of December 2020 recognised that digitalisation is an excellent lever to accelerate the transition to a climate neutral, circular and more resilient economy.

As shown in the 2022 Strategic Foresight Report, when implemented under the right conditions, digital solutions have demonstrated significant reduction in greenhouse gas emissions, increased resource efficiency and improved environmental monitoring 136 . The overall potential of emission reduction using digital solutions based on existing technologies is estimated at 15%-20% of total greenhouse gas emissions by 2030, provided they are properly used and governed 137 .

The EU has been actively working to maximise the synergies of the green transition and digital transformation:

-In the Europe fit for the digital age strategy 138 , the Commission set ambitious goals such as the climate neutrality of data centres in the EU by 2030. Measures to improve the circularity of digital devices and to reduce eWaste include the Right to repair Directive 139  and the recently issued eco-design criteria for mobile phones and tablets 140 . Efforts are also ongoing to develop low-energy chips under the European Processor Initiative 141 . Finally, digital skills initiatives are also identified as key to ensuring a workforce with the digital skills needed to contribute to the twin transition (see Section 4.1).

-In the EU Action Plan on the Digitalisation of the Energy System 142 , the Commission identifies the ICT sector as a driver of investments in renewables and energy efficiency along the value chain. A declaration of intent 143 towards the creation of a digital twin of the European electricity grid, signed in December 2022, will help drive and coordinate investments in the digitalisation of the electricity infrastructure. 

-With the Sustainable and Smart Mobility Strategy 144 , the Commission aims to make mobility and the transport systems greener and more efficient. The EU is keen to use digitalisation and automation to improve not only our global competitiveness through efficient and resilient logistics chains, but also the sustainability of the transport sector.

-With the EU Environment Action Programme 145 , the Commission aims to accelerate the green transition to a climate-neutral, sustainable, non-toxic, resource-efficient, renewable energy-based, resilient and competitive circular economy in a just, equitable and inclusive way. Harnessing the potential of digital and data technologies is identified as an enabling condition to attain the priority objectives and to support environment policy, while increasing efforts to minimise the environmental footprint of digitalisation.

-To ensure synergies between green and digital investments and policies, the Commission Notice on the Guidance to Member States for the update of the 2021-2030 national energy and climate plans 146 , encourages and assists Member States to make use of the existing tools and to explore the full potential of the twin green and digital transitions, while avoiding duplication.

Nonetheless further action is needed and investment is key to incentivise the move towards more resource-efficient digital technologies. The delegated act of the EU Taxonomy Regulation 147 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. At the same time, the Temporary Crisis and Transition State Aid Framework 148 will help harness digital technologies for a greener and more sustainable economy, in particular the digital component of clean tech manufacturing, whilst the amendments to the GBER have the potential to facilitate, simplify and speed up support for the EU’s green and digital transitions, facilitating investments in digital technologies and connectivity 149 . Finally, the revision of the Recovery and Resilience Plans, in light of REPowerEU, where inter alia the potential of digital solutions for the energy transition can be considered, is an opportunity to support the digitalisation of the energy system.

Moreover, there is a need for science-based assessment methodology on the ‘net environmental impact’ of increased digitalisation that take into account both the benefits and the possible rebound effects. This entails also the collection of evidence of the net environmental impacts of digitalisation across the EU to ensure its positive contribution to European Green Deal goals. The Commission has launched dedicated R&I initiatives, including under Horizon Europe, to support this ambition and will intensify its work to on developing common indicators for measuring the environmental footprint of electronic communications services.

6. International dimension

International cooperation activities aim at proactively projecting our model based on human-centric values and to promote the EU’s interests on the global stage. In the Declaration on Digital Rights and Principles, the EU and the Member States have committed to promote their vision of digital transformation to international partners. This has inspired the Declaration on the Future of the Internet 151  and the OECD’s Declaration on a Trusted, Sustainable and Inclusive Digital Future  152 , and it is feeding into the works that will lead to the agreement on a United Nations Global Digital Compact 153 . Following the adoption of the Council Conclusions on EU Digital Diplomacy 154 in July 2022, the EU established a strong foundation for our external engagement on digital issues. The subsequent Council Conclusions on EU Digital Diplomacy 155  of June 2023 propose a set of priority actions needed for a stronger, more strategic, coherent and effective EU policy and action in global digital affairs. Team Europe coordination has been enhanced, including EU Delegations’ role in communicating and promoting EU legislative and policy developments among governments and stakeholders in partner countries.

The goal of EU Digital Diplomacy is to secure the EU’s global role in the digital world. At the bilateral level, international outreach relies on leveraging digital partnerships, building on our strong ties with like-minded partners such as Japan, the Republic of Korea and Singapore, across the four cardinal points. International cooperation is also structured across Trade and Technology Councils (EU-US TTC, EU-India TTC), regional alliances (Latin America, Africa) and digital dialogues with Latin America and Asia. The EU has also substantially stepped up its support for the digital transformation of Ukraine, focusing both on emergency and long-term measures, in particular on roaming. At multilateral levels, in particular the G20 and G7, in line with the concept of ‘trusted connectivity’ 156 , the EU promotes an approach that recognizes the role of digital regulation to contribute to trust in the digital economy and facilitate data flows.

The Global Gateway 157  is strengthening the people-to-people connections between Europe and its partners with targeted digital infrastructure investments aiming at tackling the global digital divide and strengthening secure and trusted digital connections. The Commission is working to reinforce the European backbone infrastructure and connectivity of EU territories with likeminded third countries, using a global and secure network of submarine cables to support the EU’s digital resilience and reduce dependencies by means of promoting the diversification of international routes.

Foreign investment and trade are essential for our economic growth, competitiveness, employment, and innovation. However, today more than ever, the EU’s openness needs to be balanced by appropriate tools, in order to safeguard its key strategic asset and to ensure Union-wide coordination. The EU Economic Security Strategy 158  will enable maximising the benefits of economic openness while minimising the risks of economic interdependencies, reinforcing EU’s resilience of its supply chains and help addressing technology leakage or the possible weaponisation of economic dependencies including economic coercion. The EU has also rolled out assertive economic measures such as the EU’s framework for screening of foreign direct investment (FDI) 159 , enabling Member States and the Commission to monitor and influence FDIs’ effects on critical infrastructure, critical technologies and dual-use items, supply of critical inputs, access to sensitive information and freedom and pluralism of the media. Moreover, the EU's Foreign Subsidies Regulation (FSR), which entered into force in July 2023, allows the Commission to investigate and remedy subsidies received from non-EU countries that distort the EU internal market. The EU can now also rely on a strengthened export control toolbox to respond effectively to evolving security risks and emerging technologies. The new Export Control Regulation sets up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items, which includes a list of digital technologies 160 .

7. Conclusions

The success of the Digital Decade will be critical for the EU’s future prosperity. Achieving the EU’s Digital Decade agenda could unlock over EUR 2.8 trillion in economic value 161  that is equivalent to 21% of the EU’s current economy.

The state of play presented in this report demonstrates that the success of the EU’s digital transformation will require a substantial acceleration and a deepening of the EU’s and Member States’ action to make reforms, improve the business environment, create incentives and boost investment in digital technologies, skills and infrastructures. Implementing the cross-cutting approach of the Digital Decade and building on the synergies among the cardinal points, target areas and objectives will be critical to make progress towards a successful digital transformation. 

The state of play presented in this report also calls for a greater coordinated joint action on the EU’s digital transformation. Member States are invited to make further progress with the implementation of MCPs and EDICs in view of their potential contribution to bridging the gaps between the current state of play and the 2030 targets.

The monitoring of progress against common objectives and targets through the Digital Decade governance mechanism is essential to better understand the interdependence between regulatory and funding policies, and to find common strengths and synergies to achieve EU’s strategic objectives. It is therefore critical that the national roadmaps to be adopted by Member States by early October 2023, and further adjustments later on, reflect this integrated approach and take into account the recommended policies, measures and actions contained in this report.

The Commission will now engage in discussions with Members States, the European Parliament and stakeholders on how to progress together using the Digital Decade governance mechanism. In parallel, it will also engage with stakeholders and partners outside of the EU.

(1)

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.

(2)

 Source: Commission analysis SWD(2023) 571  ‘Digital Decade cardinal points: digital skills, digital infrastructures, digitalisation of businesses and digitalisation of public services’. See C(2023) 7500 ‘Communication from the Commission establishing the Union-level projected trajectories for the digital targets’. 

(3)

References in this Communication, its annex and accompanying Staff Working Documents that support measures that may amount to State aid are without prejudice to the State-aid assessment.

(4)

European Declaration on Digital Rights and Principles for the Digital Decade, OJ C 23, 23.1.2023, p. 1–7. The Declaration builds on primary EU law, in particular the Treaty on European Union, the Treaty on the Functioning of the European Union, the Charter of Fundamental Rights of the European Union, as well as on secondary law and the caselaw of the Court of Justice of the European Union.

(5)

Each Recovery and Resilience Plan has to dedicate at least 20% of the plan’s total allocation to the digital transformation. To this end, the plans had to specify and justify the digital contribution of each measure, using the methodology set out in Annex VII of the RRF Regulation.

(6)

Special Eurobarometer 532 “The Digital Decade”, March 2023, hereafter referred to as Eurobarometer 2023.

(7)

According to Eurostat 2023 data (online data code: ISOC_CI_IFP_FU), in 2022, 84% of individuals in the EU accessed the internet daily, with a further 5% using it at least once a week.

(8)

Strategic Foresight report 2021 (COM (2021) 750 final) and 2022 (COM(2022) 289 final).

(9)

McKinsey, Taking the pulse of shifting supply chains, 2022.

(10)

  SWD(2023)570  ‘Implementing Digital Decade objectives and the Digital rights and Principles’.

(11)

 Calza, E., Dalla Benetta, A., Kostić, U., Mitton, I., Moraschini, M., Vazquez-Prada Baillet, M., Cardona, M., Papazoglou, M., Righi, R., Torrecillas Jodar, J., Lopez Cobo, M., Cira, P. and De Prato, G., Analytical insights into the global digital ecosystem (DGTES), EUR 31538 EN, Publications Office of the European Union, Luxembourg, 2023, ISBN 978-92-68-04045-4, doi:10.2760/811932, JRC132991. See https://publications.jrc.ec.europa.eu/repository/handle/JRC132991

(12)

ICT global market share by country 2022 | Statista.

(13)

 Center on Regulation in Europe (CERRE), Digital Industrial Policy for Europe , December 2022.

(14)

In the context of the 2021 Industrial Policy package, the Commission has proposed a methodology to map EU strategic dependent products across sensitive ecosystems. Within the digital ecosystems, the latest analysis points to dependencies for laptops, cell phones, and radio broadcast receivers, among others, which are also subject to single points of failure. For more details see SWD (2021) 352 and Single Market Economics Papers (Working Paper 14, 2023): “An enhanced methodology to monitor the EU’s strategic dependencies and vulnerabilities”.

(15)

See the Declaration of leaders, meeting of the Head of State and government, Versailles 10/11 March 2022.

(16)

Communication from the Commission ‘The Single Market at 30’, (COM(2023) 162 final); measured in purchasing power parity, IMF World Economic Outlook.

(17)

EU strategic dependencies and capacities: second stage of in-depth reviews (SWD (2022) 41 final).

(18)

  Commission welcomes political agreement on the European Chips Act (europa.eu)

(19)

  SWD(2023)570 ‘Implementation of the Digital Decade objectives and the Digital Rights and Principles’.

(20)

  The R&D 2022 scoreboard shows that US private companies’ investments are between three times and ten times larger than European ones. For instance, the US and China together account for over 80% of the EUR 25 billion of annual equity investments in AI and blockchain technologies, while the EU 27 only accounts for 7% of this global amount, investing around EUR 1.75 billion. 

(21)

Around 70% of the contribution is expected to come from the RRF. For a comprehensive overview cf. SWD(2023)570  ‘Implementation of Digital Decade objectives and Declaration on Digital rights and Principles’ Chapter 5 “Delivering the Digital Decade with EU investments”.

(22)

   SWD(2023)573  ’Implementation of multi-country projects’, Section 1.1. A new implementation mechanism for multi-country projects.

(23)

Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, OJ L 187, 26.6.2014, p. 1–78, and its updates, last brought about by Commission Regulation (EU) 2023/1315 of 23 June 2023, OJ L 167, 30.6.2023, p. 1–90.

(24)

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.

(25)

 The Digital Decade Decision sets out digital targets grouped into four cardinal points, which were first identified in the Digital Compass Communication (COM/2021/118 final)  as key areas for the digital transformation of the Union: digital skills, digital infrastructures, the digitalisation of businesses, and the digitalisation of public services. 

(26)

McKinsey Global Institute, Connected world: An evolution in connectivity beyond the 5G revolution, 2020.

(27)

See  https://5gobservatory.eu/observatory-overview/interactive-5g-scoreboard/

(28)

The current KPI for the 5G target does not take into account the quality of service provided under peak-time conditions. A key challenge is to ensure that the deployed networks respond to future needs, notably supporting key industry sectors and critical applications that will benefit consumers and businesses in all sectors. To measure Member States readiness to overcome this challenge, further examination is required to strengthen and broaden the 5G measurement framework. See C(2023) 7500  ‘Communication from the Commission establishing the Union-level projected trajectories for the digital targets’  

(29)

ETNO, State of Digital Communications 2023. “5G coverage is approaching 96% in the USA, 95% in South Korea, 90% in Japan and 86% in China.”

(30)

See US response at this link .

(31)

SWD (2023)570  ‘Implementation of the Digital Decade objectives and the Declaration on digital Rights and Principles’, Annex 5 Delivering the Digital Decade with EU investments. Beyond RRF funding, the estimate of over EUR 23 billion in grants includes more than EUR 4 billion cohesion policy funding, around EUR 1 billion Horizon2020/Horizon Europe and around EUR 1 billion CEF funding. Additional funding has been granted in the form of financial instruments (namely, trough Invest EU and the Connecting Europe Broadband Fund).

(32)

ETNO, State of Digital Communications 2023, p.31.

(33)

  International benchmarking of investments in Digital Decade thematic areas, JRC, 2023  

(34)

  SWD (2023)571 ‘Digital Decade cardinal points: digital skills, digital infrastructures, digitalisation of business and digitalisation of public services’.

(35)

Principle 20 on access to essential services states that everyone should have access to digital communications and that support for access should be available for those in need.

(36)

 See WIK Consult , cit.

(37)

See in particular the revised Guidelines on State aid for broadband networks, OJ C 36, 31.1.2023, p. 1–42, and GBER possibilities outlined in Section 2.

(38)

Second report on Member States’ progress in implementing the EU Toolbox on 5G Cybersecurity, June 2023 and Commission Communication on the Implementation of the 5G cybersecurity Toolbox, C(2023) 4049 final, 15 June 2023.

(39)

European Parliament, Directorate-General for External Policies of the Union, Bueger, C., Liebetrau, T., Franken, J., Security threats to undersea communications cables and infrastructure: consequences for the EU: in-depth analysis, Publications Office of the European Union, 2022, doi:10.2861/35332.

(40)

European Commission, Joint Research Centre, Carrara, S., Bobba, S., Blagoeva, D., et al., Supply chain analysis and material demand forecast in strategic technologies and sectors in the EU: a foresight study, Publications Office of the European Union, 2023, doi:10.2760/386650.

(41)

McKinsey, Semiconductor design and manufacturing: Achieving leading-edge capabilities, August 2020.

(42)

  SWD (2023)570 ‘Implementation of the Digital Decade objectives and the Digital Rights and Principles’

(43)

 COM/2022/45 final, Communication ‘A Chips Act for Europe’.

(44)

See decision of 04.10.2022 in Case SA.103083 - RRF - STMICROELECTRONICS S.R.L. (ST) – NEW SIC SUBSTRATES PLANT IN CATANIA, and decision of 27.04.2023 in Case SA.102430 - FR - Project Liberty - New semiconductor manufacturing plant by STMicroelectronics and GlobalFoundries.

(45)

See decision of 8 June 2023 in Cases SA.101202 (Austria), SA.101141 (Czechia), SA.101143 (Finland), SA.101193 (France), SA.101129 (Germany), SA.101210 (Greece), SA.101151 (Ireland), SA.101186 (Italy), SA.101201 (Malta), SA.101171 (the Netherlands), SA.101175 (Poland), SA.101192 (Romania), SA.101200 (Slovakia) and SA.101150 (Spain).

(46)

See IDC Worldwide Edge Spending Guide.

(47)

See https://www.gartner.com/en/doc/750789-infographic-understanding-edge-computing.

(48)

ETNO, The State of Digital Communications 2023, February 2023.

(49)

McKinsey, Quantum computing funding remains strong, but talent gap raises concerns, 15 June 2022.

(50)

 See Quantum technologies – from basic research to market (quantentechnologien.de)

(51)

 See Investir dans la France de 2030 | Strategie quantique : lancement d’une plateforme nationale de calcul quantique (gouvernement.fr)  

(52)

See Quantum technologies and value chains: Why and how Europe must act now (epc.eu)

(53)

 See Quantum Technology | The future is Quantum (qt.eu)

(54)

  C(2023) 7500  ‘Communication from the Commission establishing the Union-level projected trajectories for the digital targets’

(55)

Sinergy Research Group, European Cloud Providers Double in Size but Lose Market Share, 21 September 2021.

(56)

  Support study to the impact assessment for the proposal for a Data Act  

(57)

These acts complement the General Data Protection Regulation that lays down rules relating to the free movement of personal data.

(58)

As an example, Spain launched the Digital Kit initiative to promote scalable, high-impact, and public-private collaboration mechanisms to accelerate the digitalisation of SMEs, and the Agents of Change programme to give SMEs grants to hire digital transformation experts.

(59)

  SWD(2023)570  ‘Implementation of the Digital Decade objectives and the Digital Rights and Principles’.

(60)

European investment Bank, EIB Investment Survey 2019-2022.

(61)

European investment Bank, EIB Investment Survey 2023.

(62)

  Dealroom.co

(63)

See  C(2023) 7500 ‘Communication from the Commission establishing the Union-level projected trajectories for the digital targets’ on the volatility of the trend over the past few years.

(64)

EU unicorn numbers stated are for EU-founded companies that continue to have their HQ in the EU.

(65)

Startup Genome,  The Global Startup Ecosystem Report 2023 .

(66)

DealRoom, The European Deep Tech Report 2023 edition. Venture capital spent by startup whose HQ is in the EU is worth EUR 30 billion against EUR 166 billion for the US between 2020 and 2022.

(67)

  Launch of New Fund of Funds to Support European Tech Champions  

(68)

  24 EU Member States committed at Digital Day to take action to support growth of EU Startups  

(69)

Thales, A year of cyber conflict in Ukraine, February 2023.

(70)

ENISA, Threat landscape for ransomware attacks, July 2022.

(71)

See Eurostat, ICT security measures used by EU enterprises in 2022, which shows that large enterprises reported significantly higher values of incidents than SMEs.

(72)

See Article 3(1)(k) of the Digital Decade Decision.

(73)

See recital 20.

(74)

  SWD(2023)570 ‘Implementation of the Digital Decade objectives and the Digital Rights and Principles’.

(75)

  Directive (EU) 2022/2555 on measures for a high common level of cybersecurity across the Union

(76)

  Digital Finance Strategy

(77)

  Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience for the financial sector

(78)

COM/2022/454 final, proposal for a Regulation of the European Parliament and of the Council on horizontal cybersecurity requirements for products with digital elements and amending Regulation (EU) 2019/1020  

(79)

  COM (2023) 209 final, proposal for a Regulation of the European Parliament and of the Council laying down measures to strengthen solidarity and capacities in the Union to detect, prepare for and respond to cybersecurity threats and incidents.

(80)

COM (2023) 207 final, Closing the cybersecurity talent gap to boost the EU’s competitiveness, growth and

Resilience ('The Cybersecurity Skills Academy').

(81)

The European cyber crisis liaison organisation network (EU-CyCLONe) is a cooperation network for Member States national authorities in charge of cyber crisis management.

(82)

See Article 3(1)(k) of the Digital Decade Decision.

(83)

See for example SWD (2021)352 and SWD(2022)41.

(84)

See for example Single Market Economics Papers (Working Paper 14, 2023): “An enhanced methodology to monitor the EU’s strategic dependencies and vulnerabilities”.

(85)

COM/2023/160 final, Proposal for a Regulation establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) 168/2013, (EU) 2018/858, 2018/1724 and (EU) 2019/1020.

(86)

Such as the European Battery Alliance , the European Alliance for Industrial Data, Edge and Cloud and the Industrial Alliance on Processors and Semiconductor Technologies .

(87)

COM(2023) 335 final, Proposal for a Regulation of the European Parliament and of the Council establishing the Strategic Technologies for Europe Platform (‘STEP’) and amending Directive 2003/87/EC, Regulations (EU) 2021/1058, (EU) 2021/1056, (EU) 2021/1057, (EU) No 1303/2013, (EU) No 223/2014, (EU) 2021/1060, (EU) 2021/523, (EU) 2021/695, (EU) 2021/697 and (EU) 2021/241.

(88)

JOIN (2023) 20 final, Economic Security Strategy.

(89)

 Such as obtaining information from public authorities, using online banking, buying online, or other selected activities related to internet or software use. For more information on the digital skills indicators published by Eurostat see: https://ec.europa.eu/eurostat/web/digital-economy-and-society/data/database .

(90)

  SWD (2023)571 ‘Digital Decade cardinal points: digital skills, digital infrastructures, digitalisation of business and digitalisation of public services’.

(91)

 See C(2023) 7500 ‘Communication from the Commission establishing the Union-level projected trajectories for the digital targets’ 

(92)

 Available at:  https://education.ec.europa.eu/focus-topics/digital-education/action-plan/action-1 .

(93)

COM/2023/205 final/2, Proposal for Council Recommendation on the key enabling factors for successful digital education and training, and COM/2023/206 final, Proposal for a Council Recommendation on improving the provision of digital skills in education and training.

(94)

In accordance with Annex VII of the RRF Regulation.

(95)

  State of the Union addresses (europa.eu)  

(96)

  European Year of Skills (europa.eu)

(97)

  SWD (2023)571 ‘Digital Decade cardinal points: digital skills, digital infrastructures, digitalisation of business and digitalisation of public services’.

(98)

See also Khan, J. (2021), European academic brain drain: A meta‐synthesis. European Journal of Education, 56(2), 265-278.

(99)

European Investment Bank, Investment Report 2022/2023: Resilience and renewal in Europe, 2023.

(100)

  Eurostat survey on the skills gap | Digital Skills and Jobs Platform (europa.eu)

(101)

 See C(2023) 7500 ‘Communication from the Commission establishing the Union-level projected trajectories for the digital targets’.]

(102)

COM/2022/332 final, A New European Innovation Agenda.

(103)

 See ICT specialists in employment - Statistics Explained (europa.eu)

(104)

As regards companies, Directive (EU) 2019/1151 of the European Parliament and of the Council of 20 June 2019 amending Directive (EU) 2017/1132 as regards the use of digital tools and processes in company law, OJ L 186, 11.7.2019, p. 80–104, was a major step to reduce the burden. It ensures that companies and their branches in other Member States can be registered, and file their information in the business register, fully online. As a second step, the proposal on Upgrading Digital Company Law (COM/2023/177 final) will help companies to do business in the EU by increasing the availability of company information and removing administrative barriers when companies use their information in cross-border situations.

(105)

  e-Government Benchmark 2023, Capgemini, Sogeti, IDC and Politecnico di Milano for the European Commission

(106)

  SWD (2023)571  ‘Digital Decade cardinal points: digital skills, digital infrastructures, digitalisation of business and digitalisation of public services’.

(107)

For further information, see Single digital gateway (europa.eu)

(108)

 See result of the Commission Benchmarking of innovation procurement investments and policy frameworks across Europe, March 2023 .

(109)

  e-Government Benchmark 2023, Capgemini, Sogeti, IDC and Politecnico di Milano for the European Commission

(110)

  COM (2022) 720 final, Proposal for a Regulation of the European Parliament and of the Council laying down measures for a high level of public sector interoperability across the Union (Interoperable Europe Act).  

(111)

 SWD(2022)721, Impact Assessment Report Accompanying the Proposal for a Interoperable Europe Act , p. 54.

(112)

 Following the revision of the Regulation on electronic identification and trust services for electronic transactions (eIDAS) , Member States will be obliged to issue Digital Identity Wallets within 12 months of the entry into force of the Regulation .

(113)

  Single Currency Package: new proposals to support the use of cash and to propose a framework for a digital euro  

(114)

Digital Decade e-Health indicators development, Empirica GmbH and PredictBy study for the European Commission

(115)

  The EU digital COVID certificate  

(116)

See statement:  The European Commission and WHO launch landmark digital health initiative to strengthen global health security  

(117)

COM/2022/197 final, Proposal for a Regulation of The European Parliament and of the Council on the European Health Data Space, 3 May 2022.

(118)

See AccessNow (2023):  What you need to know about generative AI and human rights ; Marina Escobar-Planas, Emilia Gómez and Carlos Martínez Honarejos, Guidelines to Develop Trustworthy Conversational Agents for Children, Ethicomp, 2022; and https://www.ohchr.org/en/stories/2022/01/web-was-created-everyone-regardless-their-gender .

(119)

  Democracy Report 2022 Autocratisation Changing Nature? V-DEM institute  

(120)

  2023 Rule of Law report  

(121)

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

(122)

The list of designated  VLOPs and VLOSEs is available at this  link .

(123)

 It will do so with the help of experts from the newly established European Centre for Algorithmic Transparency .

(124)

Several other sectorial initiatives at EU level seek to tackle specific types of illegal or harmful content, while at the same time guaranteeing the protection of fundamental rights. For example, the Audiovisual Media Services Directive  , the Code of conduct on countering illegal hate speech  , the Recommendation on the safety of journalists  , the Regulation on addressing the dissemination of terrorist content online , the proposal for the Regulation on political advertising  , and the General Product Safety Regulation .

(125)

 See JRC Publications Repository, Analysis of the preliminary AI standardisation work plan in support of the AI Act

(126)

 Analysis from the European Digital Media Observatory (an independent network of fact-checkers, media literacy experts and academic researchers working together to detect, analyse and expose disinformation campaigns and research mitigating measures) shows that while the percentage of AI-generated disinformation was still quite low in March 2023, it was circulated widely across the EU; see EDMO, Monthly brief no. 22.

(127)

  2022 Strengthened Code of practice on disinformation

(128)

 See  Commission Guidance on Strengthening the Code of Practice on Disinformation   

(129)

COM (2023) 442/final, ‘An EU initiative on Web 4.0 and virtual worlds: a head start in the next technological transition’.

(130)

 See the Better internet for kids' Strategy .

(131)

  Proposal for a Regulation of the European Parliament and of the Council laying down rules to prevent and combat child sexual abuse.  

(132)

 See the Strategic Foresight Report 2022 , the Action plan on Digitalisation of Energy Systems  and  eWaste Monitor

(133)

E-waste (electronic waste) is any electronic device or equipment that is obsolete, energy intensive, or has reached the end of its life, such as old computers, mobile phones, tablets, smart TVs, telecommunication equipment, and other electronic devices; see  GEM 2020 - E-Waste Monitor (ewastemonitor.info)

(134)

See Giec- Synthesis Report of The IPCC Sixth Assessment Report (AR6), 2023.

(135)

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

(136)

Strategic Foresight Report Twinning the green and digital transitions in the new geopolitical context, COM/2022/289 final.

(137)

IPCCC Report 2022 (B.4.3) available at this  link .

(138)

 COM/2020/67 final, Shaping Europe's digital future.

(139)

  Right to repair: Commission introduces new consumer rights for easy and attractive repairs  

(140)

  https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L:2023:214:FULL

Commission Regulation (EU) 2023/1670 of 16 June 2023 laying down ecodesign requirements for smartphones, mobile phones other than smartphones, cordless phones and slate tablets

(141)

 For further information see https:// www.european-processor-initiative.eu

(142)

 COM (2022) 552 final.

(143)

 See statement at this link . 

(144)

  Sustainable and Smart Mobility Strategy  

(145)

Decision (EU) 2022/591 of the European Parliament and of the Council of 6 April 2022 on a General Union Environment Action Programme to 2030, OJ L 114, 12.4.2022, p. 22–36.

(146)

C(2022) 9264 final.

(147)

Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088, OJ L 198, 22.6.2020, p. 13–43.

(148)

 For further information see https://competition-policy.ec.europa.eu/state-aid/temporary-crisis-and-transition-framework_en

(149)

See above Section 2.

(150)

 Available at this  link

(151)

 Available at this link .

(152)

 Available at this link

(153)

 Available at this link

(154)

 Available at this link

(155)

 Available at this link

(156)

  President Von der Leyen’s speech in Tallinn’s Digital Summit, October 10, 2022

(157)

JOIN/2021/30 final, Joint Communication to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank The Global Gateway.

(158)

JOIN (2023) 20 final, Economic Security Strategy.

(159)

Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union, OJ L 79 I, 21.3.2019, pp. 1-14, currently under evaluation with the aim of ensuring that it remains fit for purpose.

(160)

Regulation (EU) 2021/821 of the European Parliament and of the Council of 20 May 2021 setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items, OJ L 206 I, 11.6.2021, pp. 1-461.

(161)

PublicFirst, Unlocking Europe’s Digital Potential, 2022. See also Section 5.3 ‘Investments needed to achieve the Digital Decade targets’ of the SWD (2023)570 , ‘Implementation of the Digital Decade objectives and the Digital Rights and Principles’.

EUROPEAN COMMISSION

Brussels, 27.9.2023

COM(2023) 570 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

Report on the state of the Digital Decade 2023

{SWD(2023) 570 final} - {SWD(2023) 571 final} - {SWD(2023) 572 final} - {SWD(2023) 573 final} - {SWD(2023) 574 final}

Table of Contents

Digital Decade Country Report 2023: Austria    

Digital Decade Country Report 2023: Belgium    

Digital Decade Country Report 2023: Bulgaria    

Digital Decade Country Report 2023: Cyprus    

Digital Decade Country Report 2023: Croatia    

Digital Decade Country Report 2023: Czechia    

Digital Decade Country Report 2023: Denmark    

Digital Decade Country Report 2023: Estonia    

Digital Decade Country Report 2023: Finland    

Digital Decade Country Report 2023: France    

Digital Decade Country Report 2023: Germany    

Digital Decade Country Report 2023: Greece    

Digital Decade Country Report 2023: Hungary    

Digital Decade Country Report 2023: Ireland    

Digital Decade Country Report 2023: Italy    

Digital Decade Country Report 2023: Latvia    

Digital Decade Country Report 2023: Lithuania    

Digital Decade Country Report 2023: Luxembourg    

Digital Decade Country Report 2023: Malta    

Digital Decade Country Report 2023: Netherlands    

Digital Decade Country Report 2023: Poland    

Digital Decade Country Report 2023: Portugal    

Digital Decade Country Report 2023: Romania    

Digital Decade Country Report 2023: Slovakia    

Digital Decade Country Report 2023: Slovenia    

Digital Decade Country Report 2023: Spain    

Digital Decade Country Report 2023: Sweden    

Digital Decade Country Report 2023: Austria

Austria is expected to make a positive contribution to the collective efforts to achieve the EU’s Digital Decade targets. Austria performs well on the cardinal points on digital skills, the integration of digital technologies, and digital public services. However, further efforts are needed in digital infrastructures. Austria’s vision ‘Digital Austria in 2040-2050’ is the starting point for Austria’s overall digitalisation strategy (Digital Action Plan Austria) which is aligned with the Digital Decade Policy Programme.

Austria is collaborating with other Member States in exploring the possibility to set up a European Digital Infrastructure Consortium (EDIC) on establishing the European Cybersecurity Skills Academy.

DIGITAL SKILLS

Even if Austria, with 63% having at least basic digital skills, significantly exceeds the EU average of 54% on this indicator, there is ample room for improvement towards the 2030 target of at least 80% of the population reaching the basic level of digital skills. Upskilling the workforce in terms of digital skills would also contribute to addressing the significant shortage of skilled workers (‘Fachkräftemangel’) that Austria faces. Digital literacy is essential to enable people to participate in modern life and to leave no one behind.

Austria lacks ICT specialists. According to the latest ‘Austrian Infrastructure Report’, two out of three managers complain about a lack of IT specialists in their company. The available data supports this perception. Even if Austria’s share of ICT specialists in the labour force (5%) exceeds the EU average (4.6%), it is low considering the composition of the Austrian economy. The share of female ICT specialists, at 19.3%, is also slightly higher than the EU average of 18.9%.

DIGITAL INFRASTRUCTURE

For the Digital Decade targets related to connectivity, Austria shows a varied picture: the country is fast approaching 5G coverage for all populated areas (92% in 2022) but is still far from reaching fixed Gigabit connectivity for all (55% in 2022).

Austria is actively engaged in the areas of microelectronics and quantum computing, thereby contributes to achieving the related targets. Notably, Austria is participating in the Important Project of Common European Interest (IPCEI) on Microelectronics and Communication Technologies), with 6 direct participants focusing on energy efficiency, automotive, and packaging.

DIGITALISATION OF BUSINESSES

With only two thirds of small and medium-sized enterprises (SMEs) reaching at least a basic level of digital intensity, Austria is still far from the Digital Decade target of 90%. Austria performs slightly below the EU average on this key performance indicator. There is untapped potential in Austria to improve productivity within specific sectors by increasing digital intensity. At the same time Austria supports SMEs via national and European Digital Innovation Hubs and funding. Austria has shown a mixed picture in the take-up of artificial intelligence (AI), cloud services and big data. The use of big data and cloud services in Austrian enterprises was below the EU average in 2020 and 2021 respectively, although the country’s performance was higher than the EU average on AI in 2021. Austria is actively promoting these new technologies, but this seemingly has yet to result in measurable advances.

DIGITALISATION OF PUBLIC SERVICES

As regards the online availability of digital public services for citizens and business, Austria performs well on national services, in line with the EU average. Austria set up a specific ee-Government strategy and has taken numerous other actions. Overall, Austria is progressing well on providing eID solutions to its citizens. Also, the country is a frontrunner on e-health, scoring significantly higher than the EU average and is well on track to achieving the Digital Decade target related to e-health.

Digital Decade Country Report 2023: Belgium

Belgium is expected to make a positive contribution to the collective efforts to achieve the EU’s Digital Decade targets. The country has improved its performance particularly in the digitalisation of public services, but is lagging on digital infrastructure, although progress has been made on the roll-out and overall 5G coverage. Belgium performs well when it comes to the digitalisation of businesses, and it is advancing well on the uptake of digital tools by businesses. The different digital strategies in the country, coordinated at federal level through the Digital Decade Working Group, are aligned with the Digital Decade Policy Programme.

Belgium is collaborating with other Member States in exploring the possibility to set up a European Digital Infrastructure Consortia (EDIC) on Genome, to enable effective and secure cross-border access to repositories of personal genomic datasets. Belgium is one of the Member States that have jointly submitted a formal application to set up the European Blockchain Partnership and the EDIC on European Blockchain Infrastructure, supporting EU-wide cross-border public services.

DIGITAL SKILLS

Close to half of Belgium’s population does not have basic digital skills. The level of basic digital skills in Belgium is at the EU average of 54%, but significantly below the Digital Decade target of 80%.

The share of ICT specialists in the Belgian workforce is 5.6%, which is above the EU average of 4.6%, despite a lower-than-average number of ICT graduates (2.8% versus 4.2%). However, at 18.7%, the share of women among the ICT specialists is slightly below the EU average of 18.9%.

DIGITAL INFRASTRUCTURE

Belgium increased the number of households covered by fixed very high capacity networks to 78%, which is above the EU average of 73%. Despite improvements compared to previous years, it still lags significantly behind on fibre to the premises coverage (17% vs. 56%). On overall 5G coverage and the target of achieving a 100% coverage by 2030, Belgium has made some notable progress going from 4% in 2021 to 30% in 2022 coverage of populated areas. However, this is still significantly below the European average of 81%. This is largely due to the late finalisation of the 5G spectrum auction (for the 700MHz and 3.6GHz bands), which also resulted in a new market entrant.

Belgium has also continued to reinforce its leading role within Europe on semiconductors through research and development by funding research in the area with IMEC, a leading research institute on semiconductors. Belgium is contributing to the Important Project of Common European Interest (IPCEI) on Microelectronics and Communication Technologies with associated participants (receiving aid below the General Block Exemption Regulation (GBER) threshold). Belgium is also participating under the Digital Europe Programme to set up the project Belgian-QCI, the first quantum key distribution network in Belgium. 

DIGITALISATION OF BUSINESSES

Belgium performs particularly well on the digitalisation of businesses. It performs strongly on the number of SMEs with at least basic level of digital intensity (77% vs 69% on EU level). Belgium has performed above the EU average on the uptake of cloud computing, AI and big data and it is in a good position to further contribute to the Digital Decade targets. In particular, Belgium is above the EU average for both big data and cloud, with 23% and 47% of enterprises adopting them already in 2020 and 2021 respectively, as opposed to 14% and 34% as an EU average.

DIGITALISATION OF PUBLIC SERVICES 

Belgium is progressing relatively well on digital public services. The country continues to improve in digitalising key public services online. Belgium performs above the European average in digital public services for citizens (score 81 vs. 77) and businesses (score 88 vs. 84). On e-health records, Belgium also performs considerably above the EU average (score 85 vs. 72). Large part of the population use at least one of the three available eID schemes, with two of the schemes notified under the eIDAS regulation.

Digital Decade Country Report 2023: Bulgaria

Bulgaria has scope to improve its performance in the digital transition and to contribute to the collective efforts to achieve the EU’s Digital Decade targets. While Bulgaria continues to perform well in connectivity both on very high-capacity network (VHCN) and fibre to the premises (FTTP), the uneven distribution of digital infrastructure in rural areas requires further attention. Furthermore, the uptake of digital public services is still low and targeted measures are needed, in particular to minimise the administrative burden placed on companies. Significant efforts should be made in the promotion of digital skills.

Bulgaria is collaborating with other Member States in exploring the possibility to set up a European Digital Infrastructure Consortium (EDIC) on Genome, to enable effective and secure cross-border access to repositories of personal genomic datasets. 

DIGITAL SKILLS

Only around one third of the Bulgaria’s population aged between 16 and 74 has at least basic digital skills. Only 8% of Bulgaria’s population have above basic digital skills.

Bulgaria is expected to contribute positively to the Digital Decade target on ICT specialists. Although Bulgaria has a low share of ICT specialists (3.8% vs. the EU average of4.6%), it is the EU country with the highest share of women working as ICT specialists (28.9% vs. the EU average of 18.9%). The share of ICT graduates in the country is 4.9%, above the EU average of 4.2%.

DIGITAL INFRASTRUCTURE

Bulgaria has made very good progress in fixed broadband connectivity. Fibre to the premises connections have significantly improved even compared to the last year’s performance (from 81% to 86%), which was already higher than the EU average of 56%. However, the uptake of gigabit connectivity remains very low at 0.8%. Mobile 5G roll-out has started to take-up and coverage increased in 2022 to 67%. Regarding the 5G pioneer spectrum bands enabling improved performance, spectrum assignment was completed in December 2022 for the 700MHz and 800MHz bands, which complement the 3.6 GHz and 26 GHz bands licences that were previously issued to mobile network operators. Bulgaria also participates in multi-country projects, notably in the 5G Seamless Roaming for the Greece-Bulgaria Cross-Border Corridor (5G SEAGUL).

Concerning other digital infrastructure, Bulgaria already created an expert working group on semiconductors to exchange good practices and share expertise for the preparation and implementation of public policy in the field of microelectronics. Bulgaria is actively participating in a project for the design of a national plan in quantum communications infrastructure (QCI) in the context of the EuroQCI.

DIGITALISATION OF BUSINESSES

The digital transformation of businesses in Bulgaria lags significantly behind other EU countries and therefore the country needs substantial efforts to contribute to reaching the Digital Decade target. The share of enterprises using cloud computing services has been one of the lowest among the EU countries, but the adoption of AI and big data has recently increased. The Programme ‘Competitiveness and Innovation in Enterprises 2021 – 2027’ set strategic goals to provide innovation funding to businesses and support innovation, competitiveness, and the digital and green transition. The programme is structured around three priorities: (i) innovation and growth, (ii) the circular economy, and (iii) digital connectivity. In 2022, Bulgaria implemented strategic measures to support the digitalisation of SMEs with the national Economic Transformation programme.

DIGITALISATION OF PUBLIC SERVICES

Bulgaria performs below the EU average for most of targets in the area of digitalisation of public services. The progress on digital public services both for citizens and businesses remains low. The percentage of e-Government users is lower than the EU average. But access to e-health records is above the EU average (77 vs. 72). In January 2023, the upgrade of the Single portal for access to electronic administrative services was completed. The main functionalities of the new portal will ensure that public services are aligned with the European Commission’s interoperability framework. A contract to issue a national eID scheme in compliance with the eIDAS Regulation was concluded and will replace the old scheme. Bulgaria also participates in a cross-border project, funded by the Connecting Europe Facility programme, to establish generic trans-border service for electronic healthcare.

Digital Decade Country Report 2023: Cyprus

Cyprus has untapped digital potential to contribute further to the collective efforts to achieve the EU’s Digital Decade targets. The country has taken a number of steps towards improving its digital performance and recently established the Deputy Ministry of Research, Innovation and Digital Policy  (DMRID) with a central coordination role for the implementation of the Digital Strategy for Cyprus 2020-2025, which is broadly aligned with the Digital Decade Policy Programme. The progress is not distributed evenly across the different dimensions of the Digital Decade. Cyprus is progressing well in digital skills, but more efforts are needed on the digitalisation of the public sector, in particular for citizens and on connectivity. 

Cyprus is collaborating with other Member States in exploring the possibility to set up a European Digital Infrastructure Consortia (EDIC) on establishing the European Cybersecurity Skills Academy.

DIGITAL SKILLS

Only 50% of the population in Cyprus have at least basic digital skills, which is 4 percentage points below the EU average. Nonetheless, in 2022, several initiatives to support digital skills development and strengthen the digital fitness and capacity of people were ongoing under the umbrella of the National Digital Skills Action Plan 2021-2025 . Cyprus’ objective, with the support of the RRF, is to improve digital skills in all population groups including upskilling and reskilling the workforce.

Cyprus shows commitment to contributing to the collective effort to achieve the Digital Decade target on ICT specialists. Indeed, in 2022, Cyprus reached the EU average of ICT specialists in employment (4.6%). Moreover, at 21.6%, the share of women among ICT specialists is higher than the EU average of 18.9%.

DIGITAL INFRASTRUCTURE

In the field of connectivity, the plans for a comprehensive roll-out of fixed and mobile networks, together with plans to promote fibre take-up, has started to show first results. The increase in the coverage of fixed very high capacity networks (VHCN) is substantial, with Cyprus reaching 60% in 2022 (from 41% in 2021). This reduced the gap to the EU average to only 13 percentage points. 5G now covers 100% of populated areas in Cyprus significantly above the EU average of 81%. However, the 26 GHz band has not yet been assigned.

In cutting-edge semiconductors, Cyprus is among the Member States that signed the joint declaration on the next generation of processors and semiconductor technologies. However, the country’s contribution to the production value in semiconductors is limited. Cyprus is active in the field of quantum computing and participates in the European High-Performance Computing (EuroHPC JU).

DIGITALISATION OF BUSINESSES

The share of SMEs in Cyprus with at least a basic level of digital intensity is with 70% above the EU average of 69%. On the use of advanced digital technologies, the situation is mixed. 42% of enterprises used cloud services in 2021. This is 8 percentage points above the EU average of 34%, but still below the EU target of 75% for 2030. Only 6% of enterprises used big-data analysis in 2020, below the EU average of 14%, and only 3% used AI in 2021, again below the EU average of 8%. In 2022, the Ministry of Energy, Commerce and Industry (MECI) launched several funding programmes to facilitate the digital transition of enterprises. Under one of these programmes, the ‘Digital Upgrade of Enterprises’, a first call for proposals was launched aiming to encourage investments in digital entrepreneurship and strengthen the integration of digital technologies in enterprises. Cyprus and the Research and Innovation Foundation (RIF) also launched the Knowledge Transfer and Innovation Initiative.

DIGITALISATION OF PUBLIC SERVICES

Cyprus has been consistent in taking the required measures to improve the provision of digital public services. Digital public services for citizens have progressed but the performance is still 13 points below the EU average score of 77. On digital public services for businesses, however, Cyprus performs one point above the EU average score of 84. In 2022, Cyprus developed the Digital Services Factory (DSF), which is the main strategic initiative to enhance the government’s digital transformation. The country also developed an eID scheme that will step up the development and the distribution of eIDs to everyone in Cyprus. Cyprus’ score for access to e-health records is 70, only slightly below the EU average of 72. In 2023, the Ministry of Health issued a decree obliging all providers to register health data electronically.

Digital Decade Country Report 2023: Croatia

Croatia has untapped digital potential to contribute further to the collective efforts to achieve the EU’s Digital Decade targets. The digital transformation of Croatia’s economy and society is advancing significantly, with most of its contribution to the achievement of the EU’s Digital Decade targets expected to be made in the fields of fibre coverage and in the digitalisation of businesses. More efforts are still needed on digital skills, although there have been improvements. Progress on online public services and the take-up of gigabit services is more limited. Croatia set up new digital initiatives such as the Digital Croatia Strategy towards 2032, the National Development Strategy until 2030 and the National Recovery and Resilience Plan (NPOO), which are aligned with the Digital Decade Policy Programme.

Croatia is collaborating with other Member States in exploring the possibility to set up European Digital Infrastructure Consortia (EDICs) on: (i) Genome, to enable the effective and secure cross-border access to repositories of personal genomic datasets; (ii) Innovative Massive Public Administration inter-Connected Transformation Services, to develop a new generation of advanced cross-border services; and (iii) establishing an Alliance for Language Technologies, to develop a common infrastructure in the field of natural language processing and large multi-language models. Croatia is one of the Member States that have jointly submitted a formal application to set up the European Blockchain Partnership and the EDIC on European Blockchain Infrastructure, supporting EU-wide cross-border public services.

DIGITAL SKILLS

Whilst Croatia is progressing on digital skills, with about 63% of people having at least basic digital skills and a performance above the EU average of 54%, more efforts are needed notably on increasing the number of ICT specialists. The share of ICT specialists in total employment is below the EU average (3.7% vs 4.6%). Moreover, the share of women among ICT specialists is, at 14.5%, among the lowest in the EU, and much below the EU average of 18.9%. This situation needs to improve in view of the Digital Decade target.

DIGITAL INFRASTRUCTURE

Since 2018 Croatia has made some progress in deploying fixed-line digital Infrastructures, notably with a significant deployment of its fibre network, from 39% to 54%, in the current reporting period. However, improvement in take-up of broadband services is limited. Croatia’s mobile network service take up remains low despite substantial improvement in 5G coverage, from 34% to 82%. Croatia made progress with the licensing at national and regional level of three 5G pioneer bands and the 5G coverage on the 3.4-3.8 GHz spectrum band has reached 37% (EU average - 41%). Regarding other digital infrastructure, Croatia collaborates intensively with other EU Member States in the context of European High Performance Computing Joint Undertaking, the quantum communication infrastructure.

DIGITALISATION OF BUSINESSES

In 2022, Croatia performed slightly above the EU average in terms of the digitalisation of businesses, including in relation to uptake of advanced technologies, but there is still untapped potential for improving the digital intensity of SMEs. Home to two unicorns, Croatia fosters research and innovation initiatives in digitalisation to contribute to the EU’s goal of growing scale-ups and doubling the number of EU unicorns. Croatia is also financing measures supporting Digital Innovation Hubs (DIHs) such as CROBOHUBplusplus (CROatian Industry and Society Boosting), AI4HEALTH.Cro (Artificial Intelligence for Smart Healthcare and Medicine), and JURK EDIH (Digital transformation of Central Croatia and Northern Adriatic). 

DIGITALISATION OF PUBLIC SERVICES

Croatia still lags behind in digital public services, particularly in terms of services for businesses (67 vs. 84 on EU average) and in terms of overall modernisation of its public services with innovative digital solutions. Nonetheless, Croatia performs well in terms of access to electronic health records, with a score of 86 compared to 72 at EU level. By the end of 2022, Croatia implemented the project ‘Popularisation of EHR (Electronic Health Records)’, thereby enabling the interoperability with the Central Health Information System (CEZIH). Croatia has one electronic identification (eID) card notified under the eIDAS regulation.

Digital Decade Country Report 2023: Czechia

Czechia has untapped digital potential to contribute further to the collective efforts to achieve the EU’s Digital Decade targets. Czechia participates in many multi-country projects and has the ambition to become a key player in state-of-the-art technologies such as quantum and microchips. There is also a strong focus on boosting basic and advanced digital skills and Czechs are becoming increasingly skilled and involved in society thanks to new online public services. However, in terms of digitalisation of businesses and connectivity Czechia has been lagging. Czech enterprises are still struggling to hire ICT experts and benefit fully from digitalisation. Limited coverage of fixed very high-capacity networks further impedes progress, especially in rural areas. The Digital Czechia strategy has been undergoing a gradual revision to align it with the Digital Decade Policy Programme.

Czechia is collaborating with other Member States in exploring the possibility to set up European Digital Infrastructure Consortia (EDICs) on: (i) Genome, to enable the effective and secure cross-border access to repositories of personal genomic datasets; and (ii) the ‘Networked Local Digital Twins Towards CitiVerse’ project, using disruptive and immersive technologies for future city related projects.

DIGITAL SKILLS

In Czechia, 60% of the population has basic digital skills, above the EU average of 54%. However, Czechia lacks ICT specialists. ICT specialists in Czechia represent only 4.5% of total employment figures, slightly below the EU average. Moreover, at 10.9%, the share of women among the ICT specialists is the lowest in the EU, compared to the EU average of 18.9%. Enterprises still suffer from the shortage of such specialised workforce. To help speed up the adoption of digital skills and to increase the number of people seeking careers in ICT, the Ministry of Education, Youth and Sports introduced a new programme to support digital education in all Czech schools.

DIGITAL INFRASTRUCTURE

Overall, Czechia’s progress in fixed connectivity has been limited (53% coverage compared to 52% in 2021), and the coverage remains significantly below the EU average of 73%. A large part of Czechia’s population does not have access to a fibre connection (63% vs. 44% on average in the EU). On the other hand, when it comes to mobile, Czechia managed to reach a 5G coverage above the EU average. Czechia participates in several pan-European initiatives on key technologies, including the Important Project of Common European Interest (IPCEI) on Microelectronics and Communication Technologies, with 4 direct participants focusing on open-source cores, edge AI and automotive. It also supports research and innovation and is hosting the first European High-Performance Computers under the European High-Performance Computing Joint Undertaking initiative while being part of the European Quantum Communication Infrastructure network.

DIGITALISATION OF BUSINESSES

Czechia is still far from the Digital Decade target of at least 75% of enterprises using cloud computing, big data, or AI. In 2022, the proportion of SMEs with at least a basic level of digital intensity was 68% slightly below the EU average of 69%. Except for the use of cloud computing, the value of relevant indicators has been so far also below the EU average. In 2020, only 9% of Czech enterprises used big data technologies (EU 14%), whilst in 2021 40% of enterprises used cloud services and 5% of enterprises used AI technologies. However, there are many public initiatives that are helping the growing number of Czech start-ups. The state agency aims to support up to 250 innovative start-ups with CZK 850 million (EUR 36.2 million) over the next five years. Czechia counts already 4 unicorns.

DIGITALISATION OF PUBLIC SERVICES

A substantial portion of Czech internet users access public services online (86% versus an EU average of 74%). However, the scores for transparency, mobile friendliness, and user support are below the EU average. The Czech government successfully designed and implemented an electronic identification system that enables citizens to access public services online using their electronic identity cards, without having to visit government offices in person. In 2023, more than 60% of people living in Czechia have at least one of 13 eID means to access e-Government services (an increase of one million compared to 2022). Digital transformation of public services is one of the new government’s main priorities and as a result efforts have been made to reach the Digital Decade targets. A new agency was created to help digitalise public services by 2025. Concerning e-health, Czechia scores 47 on access to e-health records, significantly below the EU average of 72.

Digital Decade Country Report 2023: Denmark

Denmark is expected to make a very strong contribution to the collective efforts to achieve the EU’s Digital Decade targets. Denmark is undertaking further efforts to improve access to open data and provide more public digital services for all its citizens and businesses. Denmark has recently created a ministry responsible for digitalisation and the government proposed many new initiatives in the Digital Strategy presented in May 2022.

Denmark is collaborating with other Member States in exploring the possibility to set up a European Digital Infrastructure Consortium (EDIC) on Genome, to enable effective and secure cross-border access to repositories of personal genomic datasets. 

DIGITAL SKILLS 

Denmark ranks well above the EU average when it comes to basic digital skills. 69% of people aged 16-74 have at least basic digital skills (EU: 54%). However, Denmark is still 11 percentage points below the 80% Digital Decade target for 2030.

Moreover, Denmark performs only slightly better than the EU average in terms of the number of ICT specialists in employment (5.7% vs. an EU average of 4.6%), with this percentage only slightly increasing since 2019. At 22%, the share of women among ICT specialists is above the EU average of 18.9%. If Denmark is to help achieve the EU's objective in this area, by 2030 there should be 200 000 additional ICT specialists on top of the approximately 160 000 employed today. Continuing Denmark’s successful digital transformation depends on increased availability of ICT specialists on the labour market.

DIGITAL INFRASTRUCTURE

Denmark remains in a strong position to reach the connectivity targets, with the coverage for very high-capacity networks currently standing at 96% and 98% for 5G coverage in populated areas. However, there is still room for improvement, in particular with regard to the take-up of very high speed broadband by its people and companies. The coverage of remote areas is significantly higher than the EU average, but some people and companies are still not covered by fast connectivity.

Denmark is involved in several initiatives on key technologies. It is participating in the consortium behind the LUMI-Q quantum computing initiative and has been selected as the location for the new NATO centre for quantum technologies. Moreover, Denmark is now using edge computing in a growing number of its municipalities (13% are using it in their operations, 6% have tested the technology, and 16% have considered using it) to collect road traffic data.

DIGITALISATION OF BUSINESSES

Denmark is a top performer in the EU for the digitisation of businesses but has potential to improve regarding the targets set for businesses’ uptake of more advanced ICT, even though the figures exceed the EU average. In 2021, the use of AI (24%) was three times the EU average. The use of cloud technologies (62% in 2021) and big data (27% in 2020) were almost twice the EU average. Denmark performs very well regarding the basic level of digital intensity: in 2022, 89% of SMEs had reached at least that level, compared to the EU average of 69%. Denmark benefits from a vivid start up ecosystem with 17 potential unicorns worth between EUR 100 million and 1 billion and 8 unicorns. In the start-up area, Digital Hub Denmark has been actively matching potential foreign investors with Danish tech start-ups.

DIGITALISATION OF PUBLIC SERVICES

Denmark has consistently focused on developing more effective and reliable digital public services and is on track to reaching the Digital Decade target of 100% availability. There is, in particular, a continued focus on developing better public services, boosted by, among other things, increased use of open data as well as advanced innovative digital technologies (such as AI, big data, robotics, virtual reality, advanced cloud, and high-performance computing).

Denmark scores above the EU average on all indicators. The percentage of e-Government users has increased significantly and stands, as of 2022, at 99%, above the EU average of 74%. Similarly, digital public services scored 84 for citizens and 89 for businesses, both above the EU average. Denmark has developed a well-functioning digital eID, used by a very large part of the population. Access to health data scores at 96, which is close to achieving the Digital Decade target of 100 before 2030.

Digital Decade Country Report 2023: Estonia

Estonia is expected to make a positive contribution to the collective efforts to achieve the EU’s Digital Decade targets. Estonia is at the forefront of the digitalisation of public services. However, further efforts are needed to ensure that the country’s digital infrastructure will be improved, notably the connectivity infrastructure, which is a critical enabler for all components of the Digital Decade.

Estonia is collaborating with other Member States in exploring the possibility to set up European Digital Infrastructure Consortia (EDIC) on: (i) the ‘Networked Local Digital Twins Towards CitiVerse’ project, using disruptive and immersive technologies for future city-related projects; (ii) Genome to enable the effective and secure cross-border access to repositories of personal genomic datasets; and (iii) Copyright Infrastructure to release the potential of EU’s creative sectors.

DIGITAL SKILLS

Estonia is just above the EU average for basic digital skills. In 2021, 56% of individuals aged 16-74 had at least basic digital skills, compared to 54% on average within the EU.

Estonia contributes significantly to the collective efforts to achieve the Digital Decade target on ICT specialists. With 6.6%, Estonia is well above the EU average of 4.6% ICT specialists in total employment. Moreover, at 24.5%, the share of women among ICT specialists is among the highest in the EU, compared to the EU average of 18.9%. This number may further increase over the next few years given the high percentage of ICT graduates in Estonia (10.1% in 2021). The percentage of enterprises providing ICT training is still below the EU average. However, Estonia has made significant progress over the last five years, narrowing the gap between the percentage of enterprises providing ICT training in Estonia and the EU average. This shows that Estonia is on the right path.

DIGITAL INFRASTRUCTURE

On connectivity, there is a clear need for Estonia to take action in order to contribute to the collective efforts to achieve the Digital Decade connectivity targets. This is mainly due to the low 5G coverage, and the low take-up of fixed broadband of speeds above 100 Mbps. The coverage with fixed very high-capacity network (VHCN) coverage, and with fibre to the premises (FTTP), has continued to grow steadily, reaching 79%, well above the EU averages for both (73% for VHCN and 56% for FTTP). The country continues to invest in building VHCN networks in rural areas, supported by EU funding.

Estonia contributes to the collective efforts in High-Performance Computing mainly through the Estonian Scientific Computing Infrastructure (ETAIS) project. It is also part of the European Quantum Communication Infrastructure initiative to build a pan-European quantum infrastructure, and a partner in the Nordic-Estonian Quantum Computing e-Infrastructure Quest (NordIQuEst), making an important contribution to the EU’s efforts to reach the Digital Decade targets.

DIGITALISATION OF BUSINESSES

Estonia shows a mixed picture regarding the uptake of digital technologies by enterprises. In 2021, the percentage of enterprises using cloud computing with 51% was significantly above the EU average of 34%, whereas the percentage of enterprises using AI and big data was below the EU average in 2021 and 2020 respectively. In 2022, the percentage of SMEs with at least a basic level of digital intensity was, with 67%, also slightly below the EU average.

The Estonian business ecosystem includes many innovative and growing start-ups and scale-ups that are driving the country’s growth and modernisation. There are currently two unicorns based in Estonia. Two potential unicorns with a current market valuation of between EUR 100 million and 1 billion have been identified.

DIGITALISATION OF PUBLIC SERVICES

Estonia has made particularly significant contributions to the EU’s collective efforts to reach the 2030 Digital Decade targets for the digitalisation of public services. Estonia is a global leader in this field and continues to invest heavily in making its digital public services even more user friendly and accessible for citizens and businesses. Estonia has six eID means notified under the Estonian eID scheme. The country can serve as an example for other Member States and has shared its experience and best practices with other countries, as part of the Estonian e-Governance Academy, a foundation-based international development cooperation programme. Further advancements in digital public services remain one of the priorities under Estonia’s national Digital Agenda 2030.

Digital Decade Country Report 2023: Finland

Finland has been at the forefront of the digital transformation for many years, expected to make a very strong contribution to the collective efforts to achieve the EU’s Digital Decade targets. It has rolled out comprehensive digital policies with early adoption of 5G, has well-developed e-Government services, and has a highly skilled workforce coupled with good coordination and programming. Further measures are needed to reach the gigabit connectivity target. To guide its digital transformation over the coming years, Finland submitted its own Digital Compass in 2022, which is well aligned with the Digital Decade Policy Programme.

Finland is collaborating with other Member States in exploring the possibility to set up European Digital Infrastructure Consortia (EDICs) on: (i) Genome, to enable the effective and secure cross-border access to repositories of personal genomic datasets; (ii) Copyright Infrastructure, to release the potential of EU’s creative sectors; (iii) Mobility And Logistics Data, to enable access, sharing and reuse of data in these areas; and (iv) Innovative Massive Public Administration inter-Connected Transformation Service, to develop a new generation of advanced cross-border services.

DIGITAL SKILLS

Finland has a population that has a high level of digital skills, making an important contribution to reaching the Digital Decade target. In 2021, the share of the population aged 16-74 with at least basic digital skills (79%) was very close to the EU Digital Decade target of 80% and significantly above the EU average of 54%. The share of ICT specialists in total employment (7.6% in 2022) is very high compared to both the EU Digital Decade target and the EU average in 2022 (4.6%). Moreover, at 23.8%, the share of women among ICT specialists is well above the EU average of 18.9%. In education, the share of ICT graduates is 7.6% and 40% of companies provide ICT training to their staff. Over the last years, the New Literacies Programme 2020-2023 and LUMA centre (an organisation boosting cooperation between schools, universities, and businesses) have stimulated the development of competences in ICT, media literacy and programming, including among children.

DIGITAL INFRASTRUCTURE

Finland has developed excellent digital infrastructures. The country performs well in overall 5G coverage with 95% of populated areas covered, and in the high-quality 3.4-3.8 GHz band with a coverage of 84%. However, fixed broadband take-up is slightly below the EU average, with 49% of households having fixed broadband at 100 Mbps and only 3.1% of households having fixed broadband at 1 Gbps (significantly below the EU average of 13.8%). Finland’s fixed very high-capacity network coverage is 71%, slightly below the EU average of 73%. There is a noticeable divide across the country as the rural areas frequently have white spots, due to the low population density.

Finland is a member of EuroHPC Joint Undertaking that is developing the Lumi, one of the three pre-exascale supercomputers. Finland also is at the forefront of the European quantum computing and semiconductors: IQM Quantum Computers has invested in the building of Europe’s first quantum-dedicated semiconductor production facilities in Espoo, and the quantum computer HELMI has been connected to the Lumi; it participates in the Important Project of Common European Interest (IPCEI) on Microelectronics and Communication Technologies, with 3 direct participants focusing on telecommunication and on wafer substrates.

DIGITALISATION OF BUSINESSES

Already in 2022, the share of SMEs in Finland that reached at least a basic level of digital intensity was 89.5%, slightly below the Digital Decade target (90%) and far above the EU average of 69%.

Advanced technologies continued to be at the heart of Finnish businesses, with 66% of enterprises using cloud solutions and 16% integrating AI technology into their operations in 2021, and 22% using big data already in 2020.

In 2022, Finland continued to fund programmes supporting businesses, especially SMEs. The country focused particularly on developing a start-up and scaleup ecosystem. Another hallmark of the way Finland integrated digital technologies into the economy was the cooperation between universities, specialised government agencies, and businesses. An excellent example is the 6G Bridge program that develops the next generation of connectivity so that the Finnish industry stays at the start of the value chain for creating the 6G technologies for smart cities, smart energy, smart ports, and smart factories with different players in the ecosystem.

DIGITALISATION OF PUBLIC SERVICES

Finland excels in online interaction between government authorities and the public with 97% of Finnish internet users using e-Government services. The country also performs very well on the number of services provided online. In 2022, the country was progressing well in implementing programmes that started in the previous years. Finland continued upgrading e-Government services putting them under the management of the Digital and Population Data Services Agency. Changes in legislation allowing automatic administrative decisions by means of using AI are underway. In e-health, Finland scores 90, above the EU average of 72, and is on track to meet the Digital Decade target of 100. One of the reasons for this is the My Kanta portal, where people can access their online electronic documents. The country is currently finalizing the implementation of a new digital identity system that will serve also as a certified identification tool in the meaning of eIDAS Regulation. The national open data portal continues to provide data in open formats for companies and the public. Finland has continuously increased its preparedness in cybersecurity stepping up actions with a fresh fund of EUR 230 million for 2022-2026.

Digital Decade Country Report 2023: France

France has untapped digital potential to contribute further to the collective efforts to achieve the EU’s Digital Decade targets. Given the size of the French economy and its population, current and future actions are expected to contribute significantly to such efforts. France has several digital strategies, broadly aligned with the objective of the Digital Decade Policy Programme. France is doing well as regards connectivity and start-ups and shows positive trends in digital public services and human capital. However, the digital transformation of the economy is uneven. In particular, whilst the top innovating companies use and deliver advanced digital technologies, there is not widespread use of basic technologies by small and medium enterprises (SMEs).

France is collaborating with other Member States in exploring the possibility to set up a European Digital Infrastructure Consortium (EDIC) on an Alliance for Language Technologies, to develop a common infrastructure in the field of natural language processing and large multi-language models.

DIGITAL SKILLS

Slightly more than three out of five people in France have at least basic digital skills. Nonetheless, scientific, digital and media literacy in all subjects at all levels of formal education needs particular attention. The share of ICT specialists in total employment is stable at 4.3%, slightly below the EU average (4.6%). The share of women among ICT specialists is, at 19%, very close to the EU average of 18.9%. However, despite ambitious positive measures (Pix, Skills and Jobs of the Future), France has increased less than the EU average, and the country’s prospects are undermined by low rates of ICT enrolment and low numbers of graduates. Significant efforts to improve digital skills are therefore crucial for the EU to reach the Digital Decade target on basic digital skills and ICT specialists.

DIGITAL INFRASTRUCTURE

France has a strong performance in digital infrastructure. France should already achieve full fibre roll-out in 2025. In 2022, there was particularly good overall coverage for fixed fibre connections, reaching 73% of households, and the rural/urban divide has been narrowing. However, efforts to continue fibre roll-out need to be maintained in France’s outermost regions and in rural zones. Thanks to the ‘New Deal’ plan, mobile coverage in 4G covers all populated areas and 5G roll-out is going well for voice and internet applications, covering 88% of populated areas. New 5G applications are being tested in pilot projects. The environmental aspect of digital sectors has been the focus of several laws.

Cybersecurity is increasingly being addressed but still needs to be stepped up in support of SMEs. A strategy for semiconductors, including public funding, is supporting French and EU industrial sovereignty: it is in line with the EU Chips Act. The country participates in the Important Project of Common European Interest (IPCEI) on Microelectronics and Communication Technologies with 15 direct participants focusing on a wide range of areas including substrates, power, sensing, packaging, automotive, photonics, telecom, aerospace and defence. France aims to become a key player in quantum computing and plans to deploy Euro quantum communication infrastructure. It also participates in the European programme for high-performance computing (EuroHPC).

DIGITALISATION OF BUSINESSES

Digitalisation of businesses is an area where France needs to contribute more substantially. In 2022, 64% of SMEs used digital technologies, while the EU average was 69%. SME use of digital technologies in France is still far from the Digital Decade objective of 90% and the pace of progression is still insufficient to foster its achievement. Likewise, France businesses have an untapped potential when it comes to uptake of advanced digital technologies, although for several years the France Num initiative has been delivering training and support to SMEs for using digital technologies. Further, France participates in the Next Generation Cloud Infrastructure and Services.

As regards establishing technology start-ups and scale-ups, France has succeeded in nurturing a very favourable ecosystem, considered to be the second best in Europe. 36 companies are considered unicorns in France (a sharp increase from 22 the year before) and 82 companies reached a market valuation of between EUR 100 million and EUR 1 billion. International attractiveness is high for entrepreneurs and they are able to access finance. European Digital Innovation Hubs have been selected, and most are expected to be deployed by early 2023.

DIGITALISATION OF PUBLIC SERVICES

Access to public services in France is slightly below the EU average both for citizens and for businesses. However, there are many projects underway to address this. France has put in place an observatory concerning people’s digital practices and has started efforts to use cloud more systematically. Electronic identification is in place for several services and the use of the European solution is considered and would need to be accelerated. The Inter-ministerial Direction of Digital (DINUM) provides a platform for open data (data.gouv.fr) and follows concrete actions in 15 ministries. Additional measures are needed to support users who have difficulties to access digital public services, in particular health records. 

Digital Decade Country Report 2023: Germany

Germany has untapped digital potential to contribute further to the collective efforts to achieve the EU’s Digital Decade targets. Given the size of the German economy and its population, current and future initiatives will contribute significantly to such goals. Germany’s digital transformation is advancing steadily. However, further efforts are needed to achieve the country’s aim of being a front runner. While the coverage of gigabit connectivity, particularly for fibre, is still unsatisfactory, there have been positive developments in the take-up of gigabit connections and 5G coverage. Significant gaps remain in digital public services and skills. The Federal Government’s Digital Strategy  sets out the overarching framework until 2025 and is aligned with the Digital Decade Policy Programme.

Germany is collaborating with other Member States in exploring the possibility to set up European Digital Infrastructure Consortia (EDICs) on: (i) Mobility And Logistics Data, to enable access, sharing and reuse of data in these areas; and (ii) the ‘Networked Local Digital Twins Towards CitiVerse’ project, using disruptive and immersive technologies for future city-related projects.

DIGITAL SKILLS

On basic digital skills, Germany has narrowed the gap to the EU average, but with 49% remains below the EU average of 54%. A significant change of pace in Germany’s basic digital skills’ readiness is crucial for the EU to reach the Digital Decade basic skills target. The initiatives to help develop digital skills continue to be strengthened under the umbrella of the Digital Strategy and include actions related to ‘Digital Pact School’, the STEM Action Plan 2.0, and the National Skills Strategy. In addition, the digitalisation of education is one of the six priority areas under the German RRP.

The share of ICT specialists in total employment is above the EU average (5.0% vs. 4.6%). At 19%, the share of women among ICT specialists is very close to the EU average of 18.9%. However, future growth prospects in this regard are undermined by high student drop-out rates in ICT subjects. Germany is expected to contribute substantially to the EU’s collective efforts to reach the target on ICT specialists.

DIGITAL INFRASTRUCTURE

Very serious shortcomings remain in the coverage of fibre-to-the-premises, which stands at 19%, still far from the EU average of 56% and the Digital Decade target of universal coverage of gigabit networks by 2030. The Federal Government supports fibre deployment with considerable funding and an unequivocal commitment to a nationwide roll-out, as set out in its Digital Strategy and Gigabit Strategy.

Germany activities in the areas of quantum and semiconductors are an important contribution to the EU targets. It is very active in developing infrastructure for advanced technologies and participates in several multi-country projects, e.g., the European High Performance Computing Joint Undertaking, the European Quantum Communication Infrastructure and the European Blockchain Services Infrastructure. Germany is leading the Important Project of Common European Interest (IPCEI) on Microelectronics and Communication Technologies with significant investments (in the order of several EUR billion), 32 direct participants covering a broad range of topics from material to packaging, including equipment, automotive, power, photonic, sensing. And significant investments have been made in the area of semiconductors.

DIGITALISATION OF BUSINESSES

Regarding the digitalisation of businesses, in 2022, 77% of German SMEs had at least a basic level of digital intensity, significantly above the EU average of 69%. Germany also performed above the EU average in big data analysis and the uptake of AI, although in 2021, the adoption of cloud technology was 32% slightly below the EU average of 34%. Nonetheless, Germany is expected to make a substantial contribution to achieving the Digital Decade targets. This is thanks to continuous support being provided to German SMEs through the ‘SME digital’ (Mittelstand-Digital) initiative, which consists of the Network of Mittelstand-Digital Innovation Hubs, the Digital Now investment grant programme, and the Cybersecurity for SMEs initiative. According to the European Deep Tech Report 2023, Berlin is considered the best EU start-up ecosystem. Moreover, several measures support advanced technologies, including the funding initiative KI4KMU (AI4SME) and the funding programme AI Service Centres. Germany is also participating in the IPCEI on Next Generation Cloud Infrastructure and Services (IPCEI-CIS).

DIGITALISATION OF PUBLIC SERVICES

Digitalisation of public services has already been a challenge for several years. Although Germany is on track to meeting the Digital Decade targets on the availability of digital public services, major challenges in this area remain unsolved. On digital public services for citizens, the country scores 78 (slightly above the EU average of 77). For businesses it scores 81 (below the EU average of 84). While significant efforts have been made, such as actions to implement the Online Access Act (Onlinezugangsgesetz (OZG)), the country is still lagging behind in this dimension. The main problems include the small number of public services that are digitalised, the lack of nationwide availability of services, and challenges linked to a pilot project on eID application cases.

Digital Decade Country Report 2023: Greece

Greece has scope to improve its performance in the digital transition and to contribute to the collective efforts to achieve the EU’s Digital Decade targets. Greece has embraced the digital transformation as a strategic opportunity to build a more competitive and resilient economy and society with its Digital Transformation Bible  for 2020-2025, which is aligned with the Digital Decade Policy Programme. While Greece has made rapid and tangible progress in digitalising public services over the past years, it needs to address significant gaps in the other dimensions, such as the low coverage of very high-capacity networks and the low number of ICT specialists employed.

Greece is collaborating with other Member States in exploring the possibility to set up European Digital Infrastructure Consortia (EDICs) on: (i) establishing the European Cybersecurity Skills Academy; (ii) establishing an Alliance for Language Technologies, to develop a common infrastructure in the field of natural language processing and to develop large multi-language models; and (iii) Innovative Massive Public Administration inter-Connected Transformation Services, to develop a new generation of advanced cross-border public services.

DIGITAL SKILLS

More than half of Greece’s population have at least basic digital skills (52%), close to the EU average (54%). The percentage of ICT specialists in total employment in Greece is 2.5%, among the lowest in the EU. The share of women among ICT specialists is, at 20.3%, however above the EU average of 18.9%. The current outlook is weakened by several factors, such as the brain drain of digital talent, the lack of specialisation sought after by companies, which should be regularly screened, and the insufficient number of ICT graduates. In this context, Greece is expected to benefit from the recently launched ‘Digital transformation executive network’, which aims to coordinate more effectively the development, implementation, and evaluation of digital policies. Moreover, Greece is actively committed to contributing to the EU’s 2030 digital skills targets and objectives by chairing the informal working group exploring the possibility of submitting a proposal for an EDIC on the European Cybersecurity Skills Academy.

DIGITAL INFRASTRUCTURE

Greece still lacks a comprehensive strategy to steer investments and initiatives aligned with the 2030 Digital Decade target of Gigabit connectivity for all. The country is lagging behind the EU average on fixed very high capacity network coverage (28% vs. 73%). The Greek National Broadband Plan 2021-2027 , adopted at the end of 2022, aims to put in place 100 Mbps infrastructure, readily upgradeable to 1 Gbps, which falls short of the Digital Decade target for universal Gigabit speeds by 2030. Greece performs much better on mobile connectivity and, as a frontrunner in making the 5G pioneer bands available, reached overall 5G coverage of 86% in 2022 (above the EU average of 81%).

Regarding other digital infrastructures, Greece actively participates in developing multi-country projects, e.g. in the European Quantum Communication Infrastructure (EuroQCI) initiative with HellasQCI. It also participates in the Important Project of Common European Interest (IPCEI) on Microelectronics and Communication with 6 direct participants focusing on design, edge AI, aerospace/defence, and packaging.

DIGITALISATION OF BUSINESSES

In 2022, Greece took several measures to create favourable conditions for businesses to speed up their digital transformation, but the digital intensity of SMEs and the uptake of advanced digital technologies by Greek businesses needs to step up to contribute to the collective efforts in reaching the Digital Decade targets. The level of digital intensity of SMEs in Greece is 41%, still far from the EU average of 69%. Regarding take-up of advanced digital technologies, enterprises in Greece have been slower at adopting them: in 2020 13% were using big data (EU average: 14%), whilst 15% were using cloud services (EU average: 34%), and only 3% were using AI (EU average: 8%). However, the digital technologies sector is one of the most dynamic sectors of the Greek economy, with growth rates among the highest in the country (6.1% between 2017 - 2021 in compound annual growth rate (CAGR) terms), which could boost Greece’s contribution to the Digital Decade.

DIGITALISATION OF PUBLIC SERVICES

Greece continues to implement its ambitious strategy to digitalise the public services, making remarkable progress towards achieving the Digital Decade targets. While still performing below the EU average, in 2022 the score for digital public services increased to 65 for citizens (+13 points) and 74 for businesses (+26 points). Moreover, in 2022, the Hellenic Public Administration Certification Authority ( APED ) was launched to secure electronic identification, strengthen trust in services and improve authentication procedures in line with the eIDAS Regulation. Greece scores 61 on access to e-health records, significantly below the EU average of 72, as the scope of data accessible is limited and authentication is not handled with an electronic identification (eID) that has been notified or is compliant with the eIDAS Regulation. Nonetheless in 2022, several digital health projects were launched, such as the mobile application Myhealth , which will contribute to the Digital Decade target of 100% of citizens having access to their e-health records.

Digital Decade Country Report 2023: Hungary

Hungary has untapped digital potential to contribute further to the collective efforts to achieve the EU’s Digital Decade targets. Hungary has progressed with the digital transformation of its economy and society. In 2022, the most significant progress was made in fixed very high-capacity network and 5G coverage. However, to ensure the new capabilities and opportunities offered by improved digital infrastructure are fully utilised, further progress is needed to improve the digital skills of the population. This could also help the further digitisation of the public and private sectors. On 30 November 2022, the Hungarian government adopted the new National Digitalisation Strategy 2022-2030, which is aligned with the Digital Decade Policy Programme.

Hungary is collaborating with other Member States in exploring the possibility to set up a European Digital Infrastructure Consortium (EDIC) on an Alliance for Language Technologies, to develop a common infrastructure in the field of natural language processing and large multi-language models.

DIGITAL SKILLS

On digital skills, Hungary scores below the EU average. Only about half of the population aged 16-74 has at least basic digital skills, significantly below the EU 2030 target of 80%. The Hungarian RRP includes several measures that target digital skills, mostly in the form of establishing or improving the tools and facilities needed to develop digital competences. Further strengthening the digital competence of teachers could complement these measures.

The proportion of specialists in ICT in total employment has slightly increased in recent years but in 2022 remained relatively low with 4.1%, below the EU average of 4.6%. The share of women among ICT specialists is, at 13.6%, among the lowest in the EU, compared to an EU average of 18.9%. Implementing the new National Digitalisation Strategy 2022-2030 will be crucial to delivering on the Digital Decade targets of over 80% of individuals having basic digital skills and 20 million ICT specialists in total employment by 2030, although the national strategy might not be sufficiently ambitious.

DIGITAL INFRASTRUCTURE

Broadband connectivity is above the EU average, and on 5G, Hungary has made significant progress towards achieving the digital connectivity targets for 2030. In 2022, 5G coverage in Hungary increased to 58%, an increase by 40 percentage points compared to the previous year. However, this is still significantly lower than the EU average of 81%. Fixed very high-capacity network (VHCN) coverage went up from 72% in 2021 to 80% in 2022, surpassing the EU average of 72%. The country has made good progress in the take-up of Gigabit services (29.8%), while 70% of the households subscribe to services higher than 100 Mbps.

Hungary has ambitious plans to deploy a quantum computing module in a future high-performance computing (HPC) system, as well as a ‘National Quantum Laboratory’. Several university and research institution teams are working together to develop quantum technologies.

Hungary participates in the development and use of the European Blockchain Services Infrastructure. While the production of semiconductors is limited to back-end activities, there are development activities in the design of new circuits. Hungary is contributing to the Important Project of Common European Interest (IPCEI) on Microelectronics and Communication Technologies ecosystem with associated participants (aid below the GBER threshold).

DIGITALISATION OF BUSINESSES

The digitalisation of businesses remains a major challenge in Hungary. Most businesses, in particular SMEs, are not yet maximising the opportunities offered by digital technologies. This has a negative impact on the competitiveness of the economy. In 2022, only 52% of SMEs in Hungary had at least a basic digital intensity (significantly below the EU average of 69%). The use of advanced digital technologies, such as big data and artificial intelligence, was less than half of the EU average in 2021 (3% in Hungary against 8% in the EU). In 2021, the use of cloud computing services was 21% 13 percentage points lower than the EU average (34%). Hungary participates in the IPCEI on the Next Generation Cloud Infrastructure and Services.

DIGITALISATION OF PUBLIC SERVICES

Hungary continues to make progress in digitalising public services, but it still performs below the EU average in this respect. Hungary’s performance for providing digital public services to both businesses (76) and citizens (68) are below the EU average and the 2030 EU target of 100. Hungary still faces the challenge of accelerating the adoption of several advanced digital solutions into its public sector, among others especially the innovation procurement of transformative digital technologies. For electronic identification (eID), cross-border e-identification is expected to become available in 2023 via the eIDAS scheme. The use of national eID cards remains limited, as most users prefer the “client gate trusted profile”. The Hungarian RRP includes several measures that focus on digitalisation in healthcare where Hungary scores 80, above the EU average.

The Digital Renewal Operational Programme (DROP), supported by Cohesion Policy, sets strategic goals related to open data and the use of cloud technology in the public administration.

Digital Decade Country Report 2023: Ireland

Ireland is expected to make a positive contribution to the collective efforts to achieve EU’s Digital Decade targets. The country demonstrates continuous commitment to a human-centric and green digital transformation. Indicators show a high level of digital skills. The country also has the potential to further improve its performance on digital infrastructure and digitalisation of businesses. The implementation of the overarching National Digital Strategy , published in February 2022 and fully aligned with the Digital Decade Policy Programme, should help to achieve this goal.

Ireland is collaborating with other Member States in exploring the possibility to set up a European Digital Infrastructure Consortium (EDIC) on establishing an Alliance for Language Technologies, to develop a common infrastructure in the field of natural language processing, and to develop large multi-language models.

DIGITAL SKILLS

Ireland’s continuing efforts regarding digital skills, both basic and high-level, have been successful. 70% of adults in Ireland have at least basic digital skills, both well above the EU average (54%) and not far from the EU 2030 target (at least 80%). Ireland continues to implement the 10-year Adult literacy for life strategy (September 2021) and the Digital strategy for schools to 2027 (April 2022), with EUR 200 million worth of funding committed in the national development plan. Ireland is developing an action plan on digital skills, due to be finalised in 2023, as well as an approach for a more unified tertiary education system. In addition, Ireland is making efforts to ensure an appropriate foresight regarding digital skills, including high-level ICT skills.

In Ireland, the share of ICT specialists in total employment is 6.2%, above the EU average of 4.6%. The proportion of graduates who study ICT programmes is 8%, almost double the EU average of 4.2%. However, female ICT specialists, while above the EU average, represent only a fifth of all ICT specialists.

DIGITAL INFRASTRUCTURE

Fixed very high-capacity network (VHCN) coverage in Ireland has grown steadily over the past three years, from 67% in 2020 to 84% in 2022, making good progress towards the EU 2030 target of 100%. However, the country is lagging behind regarding the take-up of at least 100 Mbps and at least 1 Gbps broadband. On the overall 5G coverage, at 84% it is above the EU average of 81% and is making good progress towards achieving the EU 2030 target of 100% coverage. At 56%, Ireland performs better than the EU average concerning 5G coverage on the 3.4-3.8 GHz spectrum band. In December 2022, a new Digital connectivity strategy was published. Ireland is progressing well with the implementation of the National broadband plan (NBP) and the connection of primary schools to broadband networks. In 2023, Ireland partially completed the transposition of the European Electronic Communications Code.

Ireland participates in the Important Project of Common European Interest (IPCEI) on Microelectronics and Communication Technologies with 1 direct participant active in manufacturing. Ireland is also home to over 100 semiconductor companies exporting EUR 13.5 billion worth of products annually. The country supports initiatives in the field via the EUR 500M Disruptive Technologies Innovation fund . Ireland shall purchase 18 edge nodes by end 2023 through the RRF.

DIGITALISATION OF BUSINESSES

Ireland’s efforts in digitalising businesses have already born fruit, as, in 2002, 85% of SMEs demonstrate at least a basic level of digital intensity. This performance is significantly higher than the EU average of 69% and is also very close to the 2030 EU target of more than 90%. The uptake of digital technologies by enterprises in Ireland was so far average and falling significantly short of the Digital Decade target (big data (23% in 2020), cloud (47% in 2021), and particularly AI (8% in 2021)). Nonetheless, Ireland is taking substantial action to further advance the adoption of digital technologies across all enterprises throughout the country, e.g. by establishing an Enterprise digital advisory forum , appointing its first AI ambassador to lead a ‘national conversation’ on the role of AI in people’s lives, and launching a EUR 85 million  Digital transition fund to support companies in their digital transition.

DIGITALISATION OF PUBLIC SERVICES

The public services provided to business and the general public in Ireland are highly digitalised, with respective scores of 100 and 81. However, Ireland does not yet provide citizen access to electronic health records. This hinders progress towards achieving the EU’s Digital Decade target of 100% of EU citizens having access to their electronic health records. Ireland is committed to further advancing digitalisation in public services. It is currently implementing the Connecting government 2030: Digital and ICT public service strategy (March 2022), including the development of an online key life events portal. A digital inclusion roadmap will be published in 2023 and will set out measures to better support those who may not be able to access services online. In terms of digital identity service to access digital public services, there are over 1.88 million verified MyGovID accounts. This represents approximately 49% of the adult population, with a very significant increase in uptake over the past two years. The development of a new digital healthcare framework 2023-2027 is ongoing.