On Wednesday 27 September, the European Commission published its first progress report on the implementation of the Digital Decade programme (see EUROPE 13213/18). While some progress has already been made, without sufficient action and investment on the part of the Member States, the EU could well fail to achieve the targets it has set itself by 2030.
Specifically, the agreement reached by the Council of the European Union and the European Parliament on 22 July (see EUROPE 12993/8) provided for the emphasis to be placed first and foremost on digital skills. By 2030, 80% of Europe’s population should have acquired basic digital skills. According to projections, this figure may, without a change of course, level off at 59%.
According to the programme, some 20 million information and communication technology specialists should be employed in the EU by 2030. This figure was 9.37 million in 2022 and projections indicate that it will reach 12 million by the end of the decade.
Similarly, the report shows that the EU is also lagging behind in the area of business digitalisation. Cloud Internet services could be adopted by only 66% of businesses by 2030, whereas the programme for the digital decade was expecting 75%. According to the latest available data, only 34% of companies were using these services in 2021.
AI and Big Data as the main challenges
The situation is even more worrying when it comes to Big Data and Artificial Intelligence (AI) (see EUROPE 13253/4), with targets set for 75% of EU businesses using these technologies by 2030. If no action is taken in this area, it is predicted that Big Data could be used by only 34% of companies by that date, and AI by 20%.
“For the most innovative technologies, this is largely unsatisfactory. We’re going to have to speed up the transition so that digital intensity is also rooted in these more modern technologies”, said a European source.
Work will also have to be carried out to ensure that the EU accounts for 20% of the semiconductor market, compared with 10% in 2022, as well as on a number of other issues, in particular those relating to digital identity (see EUROPE 13212/6).
“With the Chips Act (see EUROPE 13229/23), we’re working a lot with companies. We’re not there yet, but we’re making progress”, commented a European source.
Commission confident about 5G, despite disparities
On the other hand, the Commission was confident that the targets for overall 5G coverage across Europe would be met, as well as the fact that there would be at least 500 ‘unicorns’ - companies valued at €1 billion or more - in the EU by 2030. According to the Commission’s report, this number could be reached as early as 2024.
Looking beyond the overall picture, there are still major disparities between Member States. For example, in 2022, 0.8% of Bulgarian citizens had access to very high-capacity (‘gigabit’) landline networks, while 98% of Dutch citizens could take advantage of them. In addition, 5G coverage of populated areas will reach 98% in Denmark in 2022, compared with 20% in Sweden.
“The message of our first report on the digital decade is clear: we need to accelerate our efforts to achieve our goals by 2030. The time has come to work together to put Europe at the forefront of the digital transition. This is the thrust of the recommendations we are making today to the Member States”, said Internal Market Commissioner Thierry Breton.
National roadmaps to be submitted on 9 October
In an attempt to reverse the trend, the Member States will now have to submit their roadmaps on 9 October. These documents should include, among other things, a progress report on the implementation of the Digital Decade programme, the difficulties encountered, the assets to be exploited, the measures planned, the budget to be allocated and a timetable.
For its part, the Commission, which has brought forward the publication date of this first report so that Member States can use it as a resource, is recommending that priority be given to increasing investment. According to the Commission, Member States’ public and private spending on digital research and innovation should reach 3% of GDP. Emphasis should also be placed on the implementation of the EU’s 5G toolkit and measures to train and retain specialists in the sector.
To see the report, go to https://aeur.eu/f/8rn
To see screenings, go to https://aeur.eu/f/8ro (Original version in French by Thomas Mangin)