The EU is facing major challenges in achieving its digital transformation, especially following recent crisis including COVID-19 and Russia's war in Ukraine. Key issues include the digital connectivity divide, the sluggish digital transition of SMEs, insufficient support for research, development, and innovation, talent acquisition deficits, and the pressing need to improve digital skills. Rural areas are still struggling with internet access gaps - 55% of households are unable to connect to high-capacity networks and the EUs. 5G coverage goals remain unmet. Meanwhile, only 69% of SMEs are digitalised, below the 90% target for 2030.
Furthermore, EU cross-border e-commerce growth has stagnated, with Al investments lagging the Us Security concerns, particularly from Russia and China, require an enhanced focus on cybersecurity. Despite efforts to boost research and innovation, the EU's global competitiveness is declining. CEE countries, consequently, are calling on the EU to foster collaboration and bolster investments in digital infrastructure.
Priorities include streamlining the Digital Single Market, developing the Capital Markets Union, supporting SME digitalisation, investing in digital infrastructure, fostering innovation and talent acquisition, and strengthening digital skills. Concerted efforts from EU institutions, Member States, and the private sector are. consequently needed to ensure Europe's competitiveness in the digital era.
The policy brief Acceleration Digital Transformation and Innovation Economy offers recommendations on the priorities that the European Commission should adopt in the area of digital transformation and innovation economy. The brief is part of the GLOBSEC consultation project and is included in the publication Pivotal Moment for Europe: Central European Proposals for the Next EU Leadership.
Read the full report and individual chapters below.