Commission publishes report on the state of the Digital Decade.

In mid-June, the fourth Report on the State of the Digital Decade was published for the 2026 reporting cycle. It is complemented by an annex setting out EU-wide recommendations, as well as country reports. This year's report goes beyond taking stock of progress: it identifies priority reforms and investments at both EU and Member State level to guide the allocation of digital funding under the next EU Multiannual Financial Framework (MFF).

The Digital Decade Policy Programme, adopted in 2021, provides the framework for the digital transformation of the European Union (EU). It sets out targets to be achieved by 2030 in four key areas: digital skills, the digital transformation of businesses, secure and sustainable digital infrastructure, and the digitalisation of public services.

Progress to date

The EU has made further progress in its digital transformation. Digital infrastructure continues to improve: basic 5G coverage now reaches 96.8 per cent of households. Businesses are also making greater use of digital technologies. In 2026, 46.7 per cent of businesses use cloud computing, 39.9 per cent use data analytics, and almost 20 per cent use artificial intelligence (AI). The uptake of AI is developing particularly rapidly, with its use increasing by 48 per cent in 2025 compared with the previous year. In addition, more than 60 per cent of Europeans now possess at least basic digital skills. The targets for the deployment of edge nodes are expected to be achieved even ahead of schedule.

Remaining gaps

At the same time, significant gaps remain. The deployment of fibre connections to buildings and other very high-capacity networks needs to be significantly accelerated. In the area of technological sovereignty, the EU accounts for only 9% of the global semiconductor market, falling well short of the target of reaching a 20% market share by 2030.

Moreover, strong dependencies on providers from outside the EU persist, particularly in cloud services, cybersecurity and other strategic key technologies. Small and medium-sized enterprises (SMEs) continue to face obstacles in adopting digital technologies. These are mainly due to a lack of skills, limited access to data, and insufficient infrastructure and resources. Despite the progress made, ICT specialists accounted for only 5% of the workforce in 2025, reaching just half of the 10% share targeted for 2030; women remain significantly underrepresented, accounting for less than 20% of ICT specialists.

At the same time, overall computing capacity is coming under increasing pressure due to growing demand, in particular from AI applications. In addition, the digital transformation is exacerbating societal challenges: a large majority of citizens consider the protection of children and young people online, tackling online manipulation, disinformation, deepfakes and AI-generated content, as well as ensuring the careful regulation of artificial intelligence, to be key areas requiring action.

Implications for Germany’s social security systems

Germany’s social security systems have already made progress in their digitalisation efforts. For example, the German Pension Insurance and parts of the statutory health insurance system support the use of electronic identification (eID) for digital services. However, according to the European Commission, further action is needed. The nationwide availability of digital public services should be accelerated, the use of eID expanded, and the interoperability and interconnection of IT systems improved in order to enable fully digital and more efficient administrative processes.

Outlook

To maintain progress towards the objectives of the 2030 Digital Decade, the European Commission calls on Member States to update their national roadmaps with concrete and financially backed measures. Future investments in the digital field should be more closely aligned with Europe’s strategic priorities. This should be achieved, among other means, through the next MFF, the preparation of national and regional partnership plans, and the future EU Competitiveness Fund. In addition, the Commission will review the objectives of the Digital Decade Policy Programme in 2027 in order to adapt them to new legislative frameworks, technological developments and long-term European priorities.