EU Digital Decade report shows gaps in digitalisation plans

The first report on the state of the Digital Decade was published on Wednesday (27 September), with key findings laying bare gaps in 5G network coverage and questions about the use of artificial intelligence by businesses.

The EU’s objectives for 2030 are “measurable goals” for digital skills, digital infrastructure, digitalisation of businesses, and digitalisation of public services, while the Digital Decade is a framework to guide all actions related to digital, ensuring all aspects of technology and innovation work for people.

Wednesday’s report, the first in a series due to be published annually, is critical in identifying gaps in the progress.

“The journey towards achieving the Digital Decade targets is still long. Now is the time to take every measure to bridge the gap and ensure that the full digital transition is reached by 2030 without leaving anyone behind”, said Věra Jourová, vice president of values and transparency at the European Commission.

But the gaps in the progress elicited concern from Bulgarian MEP Eva Maydell, who wrote on X that the numbers in the report are “worrying” and that “we urgently need to address EU competitiveness” and “continue to advance a pro-innovation agenda.”

High-speed internet for everyone

One of the key gaps identified is in the rollout of 5G.

Under the 2030 target, 5G network coverage should be available to all populated areas, and every European household should benefit from high-speed capacity coverage.

While the report shows that 5G is available to 81% of the EU population, this percentage is significantly lower in rural areas (51%), and fibre networks, needed for delivering high-speed connectivity, are only accessible to just over half of the population.

Moreover, there are problems with the quality of 5G in stand-alone networks.

According to the Commission’s report, an additional investment of at least €200 billion would be needed for full high-speed internet coverage and 5G coverage in populated areas.

Lobbying groups representing Europe’s biggest telecom operators have claimed that the operators need to invest an “insurmountable” amount to “deal with exponential traffic growth,” writes The Disruptive Competition Project (DisCo), a source referenced by the Computer and Communications Industry Association (CCIA Europe).

However, the European Telecommunications Network Operators’ Association disagrees with the claims saying that “CCIA is comparing watermelons and bananas”.

ETNO’s Director General Lise Fuhr told Euractiv they “welcome the report, which clearly recognises Europe’s network investment gap and how new measures will be needed to bring 5G and fibre to all citizens”.

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Chips and business digitalisation

The EU wants to double its share in the global production of semiconductors by 2030, from the current 10% of the global market share to 20%.

The European Chips Act, which entered into force in September, comprises a key part of these efforts through developing the semiconductor ecosystem and boosting the resilience of supply chains.

To further advance these objectives, member states should have national policies and investments in chips, the report suggests.

When it comes to digitalisation, according to the report, the use of AI within businesses varies between EU countries, being highest in Denmark with 24% and only 1% in Romania.

Considerable divergence can also be seen in the rollout of fibre networks, with only 19% of the German population having access.

The Commission aims for the number of ‘unicorns’ – companies with a valuation of over €1 billion – to be doubled by 2030. In addition, 90% of small and medium businesses in the EU should reach the ‘basic level’ of digital intensity. The EU average is currently 54%.

Digital intensity measures the use of different digital technologies at the enterprise level, and the basic level of digital intensity includes enterprises with a low, high and very high level of the Digital Intensity Index, but not those with a very low level.

Within the same time frame, the Commission hopes that at least 75% of EU enterprises will use cloud computing services, big data, or artificial intelligence. The use of advanced digital technologies is currently at an average of 8%.

The report adds that several member states are ready to fully digitalise public services and health records, as well as the distribution of eIDs. Belgium, for example, performs above the EU average in terms of digitalisation of health records.

Skills

The EU aims to increase digital skills by 80% in those aged 16-74 and reach 20 million ICT (information and communications technologies) specialists by 2030. Under the current scenario, the number of ICT specialists in the EU will be close to 12 million by 2030. The Commission is therefore calling on member states to more than double their ICT specialists trainings.

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The report will be followed by national roadmaps by EU countries submitted by 9 October, then discussions with the Council, the Parliament, and the Digital Decade board.

[Edited by Alice Taylor]

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