The digital transformation in the EU requires more effort.

UM – 07/2024

On 2 July, the European Commission presented the second report on the status of the Digital Decade policy programme. The twenty-page text paints a rather sober picture of the progress of the programme proposed in 2021. On its path to the Digital Decade, the joint efforts of the Member States to realise the agreed digital goals and standards by 2030 are lagging behind the targets set by the European Union (EU).

Digitalisation is sluggish

Deficits galore: in the digital infrastructure and network structure, the economy, public services and digital skills. High-performance fibre-optic networks would only connect 64 per cent of households. The reach of 5G networks is not even half of the EU territory and their performance not up to the mark. The use of AI, big data and cloud technologies in commercial enterprises is also well below the target of 75 per cent. And only around 55 per cent of people in the EU have basic digital skills.

Progress in public services

The report also explicitly refers to the public sector. The Member States are making progress in making important public services and electronic patient records accessible online. After all, a European electronic identification (eID) option is available to more than 90 per cent of the EU population. However, there is a big question mark over whether all public services will be digitally accessible by 2030.

More investment needed

The Member States would have an important role to play in implementing the policy programme. They would have to invest more in order to secure future economic prosperity and social cohesion in the EU. Continued digitalisation of companies requires provision of suitable incentives and mobilisation of private investment. In order to keep the EU competitive and resilient as a whole, the rising threat of cyber security must also be focussed on. These necessitated sound security measures.

Country-specific analyses

The European Commission has updated the country-specific and cross-sectoral recommendations for each Member State in order to provide targeted assistance to them. The 2024 Country report for Germany attests to positive developments in coverage with the fifth generation of mobile communications (5G) and progress in teaching basic digital skills. However, the EU's largest economy, Germany, is in second-last place when it comes to expanding the fibre-optic network. It is also lagging behind in the digitalisation of public services.