A substantial acceleration of digital development is needed if the EU’s Digital Decade targets are to be met, according to a new report that sheds light on the disparity between member states.
The Deloitte report, commissioned by Vodafone, found that the EU risks failing to meet the Digital Decade targets it set for itself last year without efforts to drive digitalisation forward. Under its Digital Compass, the Commission targets areas including digital skills and infrastructure to ensure a more digital Europe by 2030.
“The COVID-19 pandemic was a turning point for attitudes towards the necessity of digitalisation, but this now needs to be translated into concrete action,” Joakim Reiter, Vodafone’s Chief External Affairs Officer, told EURACTIV, adding that the scale of the task needed to be fully appreciated first.
When scaling a mountain, he said, “you need to determine whether you’re climbing Mount Everest or Mont Blanc because there’s quite a large difference between the two […] The report shows quite visibly that we’re talking about a Mount Everest and, in terms of Europe’s climb, there is quite a long way to go.”
Infrastructure
One area where progress has been made is in closing existing gaps is infrastructure. Under the Commission’s targets, the aim is to ensure full gigabit and 5G connectivity coverage across the EU by the end of the decade,
There has been a recognisable increase in digital infrastructure levels compared to the previous year, with the proportion of households covered by Very High Capacity Networks (VHCN) rising from 50% in 2020 to 59% in 2021.
Data from the Commission’s DESI digital scoreboard put 5G coverage within the EU at just 14% in 2020, a far cry from the 100% target. However, as the report notes, there has been a significant increase in the spectrum assigned and ready for 5G use; standing at 20.4% in 2020, it rose to 51.4% in 2021.
Disparities between member states in both areas remain significant, however. When it came to VHCN rollout last year, Spain had reached 92% while Greece had just 10% and, in 2020, 5G coverage stood at 90% in the Netherlands but at 0% in multiple other countries, including France and Portugal.
The report notes that the costs of addressing this are likely to be high, particularly when in terms of extending coverage of rural and remote areas.
Set to play a vital role in this development is the EU’s Recovery and Resilience Facility (RRF), approximately €130 billion of which has been earmarked for digital investments. However, the report notes that the results of these funds might not be seen for several years.
The RRF said Reiter “is actually a really good instrument. But for it to have its intended effect, its measurement of success will be to the extent by which it crowds in private investment.” He added that how much this can be done and how much private capital will be needed to close the remaining gaps remains to be seen.
Businesses
Ensuring that this digital infrastructure is in place is a first step to securing business digitalisation, particularly SMEs, said Reiter, but further action is needed to facilitate progress beyond this.
When it comes to SMEs’ use of digital tools, he said, “the trend is not encouraging overall in Europe, despite everyone saying that COVID-19 accelerated digital adoption.”
Digital intensity within SMEs, according to the report, sits at just over 60%, 30 points shy of the Commission’s 2030 target. However, the report notes that there has been progress in some areas, such as the adoption of cloud computing services, which more than doubled from 12% to 26% between 2016 and 2019.
Certain countries, such as Italy and Spain, have encouraged SME digitalisation, said Reiter, namely by developing “off-the-shelf” solutions to help businesses embed technologies into their operations in a more efficient and cost-effective – and less risky – way. A crucial element of these packages, he also noted, is training to ensure lifelong digital learning.
Skills
Among the Commission’s aims is the training of 20 million ICT specialists by 2030 – nearly twice as many as the 8.4 million there were in 2020 – as well as ensuring that 80% of the EU’s population are equipped with the basic digital capabilities currently held by only 56% of adults.
While focusing on specialists is essential and presents “a significant challenge”, says Reiter, strengthening digital abilities “actually starts at the grassroots level […] with embedding digital skills and basic digital learning into our basic education in primary and secondary schools”, which he added is key to facilitating more specialised training later on.
When it comes to public-private cooperation on meeting the targets, Reiter says policymakers should not compromise on the overall objectives of the Digital Decade.
“The objectives are the right ones for future job creation, for future competitiveness, for a society that is much more inclusive with respect to digital, where everyone has the ability to utilise tools for the advancement of their life quality”, he said.
*first published in: www.euractiv.com
By: N. Peter Kramer
