The report paints a mixed picture, with some areas like 5G deployment and basic digital skills nearing targets, but significant shortcomings in critical areas like fiber broadband, cloud capacity, AI development, and ICT skills.
Margrethe Vestager, Executive Vice-President of the European Commission, declared: Today’s report clearly shows that we are not on track to reach our targets on the digital transformation in Europe. But it also indicates a clear way forward: we need additional investments in digital skills, high-quality connectivity, and uptake of Artificial Intelligence. We need to incentivise the use of digital tools. We need many more people to get digital skills – both basic and expert level - to leverage our strengths. And we need to foster cooperation and better integrate our single market to really enable the digital transformation across Europe.
Monitoring Progress Towards 2030 Targets
The Digital Decade policy program sets out a framework for the EU and member states to work together to achieve common digital objectives by 2030. Key elements include:
- A monitoring system based on the Digital Economy and Society Index (DESI) to track progress on targets
- Annual reports from the Commission evaluating progress and providing recommendations
- Biennial updates to member state digital decade roadmaps outlining planned actions
- Support for multi-country projects to pool investments in key digital capacities
The 2024 report is the second in this annual cycle, following the inaugural 2023 edition. It reviews each country's roadmap and proposes actions to improve implementation.
Strengths and Weaknesses Across Europe
While not all data is public, the report provides a snapshot of digital progress across the EU. Slovenia, Finland and Luxembourg are cited as leaders, having met or exceeded targets. However, several Central and Eastern European countries like Czechia, Romania, Greece and Bulgaria lag behind.
Bright spots include:
- 98% of citizens have basic digital skills
- 94% 5G coverage
- 97% Very High Capacity Network (VHCN) coverage
But the EU is falling short in key areas:
- Fiber broadband deployment
- Cloud infrastructure capacity
- AI development
- Training ICT specialists
Recommendations for Accelerating Progress
The report emphasizes the need for increased investment at EU and national levels in critical digital capacities. It also highlights the importance of implementing key EU digital policies like the Digital Services Act, AI Act and Digital Identity Regulation.
Additionally, the Commission calls for greater ambition from member states in updating their national digital roadmaps by the December 2024 deadline. It will monitor these revised plans and assess progress in the 2025 report.
Funding the Digital Decade
Delivering on the Digital Decade will require massive investments. The Commission has identified several funding sources:
- EU programs like the Recovery and Resilience Facility, Digital Europe, Horizon Europe
- Member state budgets and Recovery and Resilience Plans
- Private sector investments in multi-country projects
The multi-country project mechanism allows pooling of funds to develop shared digital capacities. A first list of potential projects has been identified, with more to come based on annual progress monitoring.
Business Opportunities
The Digital Decade presents significant opportunities for European businesses to grow and innovate. Key areas include:
- Connectivity infrastructure (5G, fiber, edge computing)
- Cloud and data infrastructure
- Artificial intelligence and high-performance computing
- Digital skills training and workforce development
- Digital transformation of SMEs
The Commission aims to support scale-ups and double the number of EU tech unicorns by 2030. It also targets 75% adoption of cloud, AI and big data by businesses and 90% of SMEs reaching a basic level of digital intensity.
Conclusion
The 2024 State of the Digital Decade report is a wake-up call for accelerated action to achieve Europe's digital ambitions. While progress is being made, the EU risks falling behind global competitors without greater investment and commitment from member states. The coming years will be critical as the Digital Decade roadmap is updated and implemented. Businesses should closely monitor developments for opportunities to contribute to and benefit from Europe's digital transformation.
More Info
2024 State of the Digital Decade report
Factpage on the State of the Digital Decade
Factpages on the Digital Decade country reports
