Digital development in the EU still has a long way to go
The EU’s digital development, as laid down in the Digital Decade Policy Program (DDPP) in 2021, still needs a boost on several fronts. This is evident from the recently published progress report State of the Digital Decade.
The interim report shows progress on the objectives formulated in the EU DDPP ten-year plan in 2021. This looked at progress in digital skills, digital infrastructure and the digital transition of companies, including the use of AI. We also looked at how this progress affects a safe and sustainable digital transition.
Digital infrastructure
The report shows that despite progress, there is still work to be done in several areas. By 2030, 55 percent of rural areas will still not be covered by modern fixed and mobile networks and 9 percent will lack a fixed internet connection.
According to the report, member states must therefore invest an additional €200 billion in developing digital infrastructure to achieve the gigabit and 5G targets for 2023.
Furthermore, Member States must invest more in developing internal chip designs and chip manufacturing capabilities. This allows the EU to become independent more quickly from chip manufacturers in other parts of the world, as laid down in the European Chips Act.
Business transition
In the area of digital business transition, the interim report finds that the targets for all companies in the EU, large and specifically SMEs, are not yet on track to be achieved.
By 2030, only 66 percent of all EU companies will use cloud services, 34 percent big data and 20 percent AI applications. Only 69 percent of SMEs have a basic form of digital working in the same year. There are, however, deviations between the Member States.
Other services and areas
EU research sees positive signals for the digitalization of public services. However, Member States must invest more in improving cross-border services and the (digital) performance of public services.
Ensuring that residents have sufficient digital skills is also not yet running as it should. By 2030, only 59 percent of all EU residents will have basic digital skills. Recruitment of the 20 million required IT specialists is also lagging behind.
Next steps
The report advocates a number of next steps, including recommendations and measures for those areas where progress is insufficient. Member states must plan these next steps in their own digital development plans and make them public by October 9, 2023.
The European Commission will also take follow-up steps to successfully achieve the EU’s digital objectives.