Euro­pean Commis­sion publishes report on the state of the Digital Decade.

The Digital Decade Policy Programme, adopted in 2021, provides the framework for the digital transformation of the European Union (EU). The programme sets out targets for 2030 in four key areas: skills, digital transformation of businesses, secure and sustainable digital infrastructures as well as digitalisation of public services. The European Commission monitors progress towards these targets through an annual report. The 2025 report, accompanied by an annex with horizontal recommendations and individual country reports, was published at the end of June.

Digi­tal­i­sa­tion and compet­i­tive­ness

The report broadly places the digital transformation in the context of the EU’s current political priorities. It states that digital transformation is crucial for fostering innovation, growth and competitiveness. Furthermore, increasing digitalisation serves to strengthen Europe's technological sovereignty, strategic autonomy and stability. In this context, artificial intelligence (AI) is seen as a key factor influencing both competitiveness and everyday life. A core objective is therefore to establish Europe as an AI continent and to secure a prominent global role for the EU. This will require a broad range of resources, skills and infrastructure. A particular focus is placed on building high-performance digital infrastructure to support the current wave of innovation in AI. These foundational technologies are also regarded as essential for defence and cybersecurity.

Uneven progress towards the targets

Compared to the previous year, the EU is showing uneven progress in achieving the targets of the Digital Decade. Overall, the EU faces major challenges in fully leveraging digital transformation to enhance its productivity and competitiveness. The report highlights comparatively strong progress in certain areas, such as the deployment of edge nodes, the digitalisation of public services and basic 5G coverage. In contrast, there has been notably insufficient progress in other critical areas, particularly in fibre rollout, the use of AI, cloud services and big data by businesses as well as the development of basic and advanced digital skills. According to the report, the EU remains dependent on external providers for AI and cloud services, which are often used in the public sector. Moreover, regulatory fragmentation and administrative complexity, especially for start-ups and small and medium-sized enterprises (SMEs), continue to pose significant obstacles.

Imple­men­ta­tion of national Digital Decade roadmaps

All EU Member States have submitted national roadmaps outlining their measures for digital transformation, which must be updated every two years. So far, the Member States have jointly committed to 1,910 measures with a total investment of €288.6 billion. Germany’s roadmap links the Digital Decade with the national digital strategy, in which the federal government has defined its key digital targets. By 2025, for instance, half of all households and businesses should have fibre-optic connections, at least 80 per cent of those with statutory health insurance should be using electronic patient records, and e-prescriptions should be established as the standard. Additionally, a modern legal framework for data usage should be in place. This is seen as a prerequisite for secure and user-friendly digital identities, which in turn would enable digital public services.

Assess­ment of Germany’s progress

In the country report on Germany, the European Commission recognises Germany’s leadership in areas related to the development of advanced technologies, such as semiconductors and edge nodes. The report also notes that Germany is prioritising digital and green transitions in parallel. For example, the German population exceeds the EU average when it comes to recycling electronic devices such as computers, mobile phones and tablets. However, the Commission assesses that the provision of digital public services, the digital skills of the population and comprehensive coverage with high-performance networks remain insufficient. There is therefore considerable need for improvement, particularly regarding the use of electronic identification and the further digitalisation of public services. In addition, more ICT specialists need to be trained, and basic digital skills across the population must be strengthened. This could also enhance the use of digital technologies by businesses.

Hori­zontal recom­men­da­tions

Finally, the annex to the report sets out specific recommendations for EU-wide action to help achieve the Digital Decade’s targets. These include further investment from both public and private sources, as well as improved access to venture capital for EU companies to promote innovation and the development of strategic technologies. Furthermore, structural reforms should be undertaken to strengthen the internal market, thereby ensuring technological and economic sovereignty. Lastly, the administrative burden on businesses in the EU should be simplified and reduced in order to foster an innovative and competitive environment.