Making the most of the digital opportunities in Europe European Council June 2017
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1 Making the most of the digital opportunities in Europe European Council June 2017 Prepared jointly by the European Commission and the incoming Estonian Presidency 1
2 "I believe that we must make much better use of the great opportunities offered by digital technologies, which know no borders. To do so, we will need to have the courage to break down national silos in telecoms regulation, in copyright taking full account of Europe's rich cultural diversity - and in data protection legislation, in the management of radio waves and in the application of competition law." Political Guidelines of President Juncker 15 July 2014 "We [ ] pledge to work towards [ ] a prosperous and sustainable Europe: a Union which creates growth and jobs; a Union where a strong, connected and developing Single Market, embracing technological transformation, and a stable and further strengthened single currency open avenues for growth, cohesion, competitiveness, innovation and exchange, especially for small and medium-sized enterprises." Rome Declaration 25 March 2017 "It is our firm belief that [ ] we need to strongly embed the idea of a strong, connected and developing Single Market of which the digital dimension is the main engine. We are convinced that this principle, adopted in the Rome Declaration, should be of priority interest, and that it needs our strong and continued political support at the highest level." Letter of 17 EU Heads of State or Government (Belgium, Czech Republic, Denmark, Estonia, Ireland, Latvia, Lithuania, Luxembourg, Hungary, the Netherlands, Poland, Portugal, Slovenia, Slovakia, Finland, Sweden, the United Kingdom) 20 June
3 Global digital competitiveness This composite index evaluates the digital performance of EU and a number of non-eu countries Source: European Commission 3
4 Still a wide gap between EU Member States on digital performance More efforts and investments are needed to make the most of the Digital Single Market This composite index evaluates the digital performance of EU Member States Source: European Commission 4
5 Growing importance of the data economy Access to large and diverse datasets is a prerequisite for innovation and the EU needs to ensure that data flows across borders. Data use is important in several sectors, for example: ehealth Wider use and cross-border movement of health data for the purposes of treatment, research and innovation Energy Data from smart meters show where energy demand is likely to grow/fall Manufacturing Sensor data is used to predict maintenance needs The value of the EU data economy is expected to double The number of people employed in EU data economy increases (ICT sector) 5.7 million 10.4 million To complete the European Single Market, the Commission is working towards building a European data economy where the barriers that impede the free movement of non-personal data are removed, where rules and modalities for data access and transfer, data liability and data portability are clear and fair to all actors. 5
6 Digital Single Market the EU's holistic strategy Since May 2015, in line with the EU's Strategic Agenda of June 2014, the European Commission has proposed 35 policy initiatives which all fall under three pillars Better access to online goods and services e-commerce and geo-blocking parcel delivery copyright In 2015, less than 40% of websites allowed cross-border customers to complete a purchase. This results in less revenues for companies and less choice for consumers. The Commission made a proposal to end unjustified geo-blocking. Better business environment telecoms and media rules online platforms security and personal data Europeans who can access 4G Europeans who can access 4G in rural areas Ensuring connectivity requires investment, and investors look for certainty. The Commission proposed modernisation of the EU telecoms rules to bring regulatory certainty. This can trigger investments that could boost our GDP by an additional 910 billion and create 1.3 million new jobs by Driving jobs and growth standards digital skills egovernment EU population with digital skills Jobs requiring digital skills in the future There will be 500,000 unfilled vacancies for ICT professionals by The Commission published Skills Agenda presenting a number of actions to tackle the digital skills deficit in Europe. 6
7 Digital Single Market recent agreements Since 15 June 2017, mobile roaming charges have been abolished in the EU As of May 2018, a single set of EU rules on data protection and privacy in electronic communication ensures the free flow of personal data across 28 countries If EU governments follow the Commission's egovernment action plan, they could save up to 5 billion per year as of 2020 As of 2020, Member States will coordinate their use of 700 MHz spectrum band to meet the consumer demand for broadband services over wireless networks MHz frequencies are essential for 5G, connected cars and other digital services which rely on very good coverage WiFi4EU - as of early 2018, EU citizens will benefit from free Wi-Fi hotspots in public squares, town halls, parks, libraries, and other public spaces As of May 2018, the EU will have its first common cybersecurity law to help keep network and information systems safe in all Member States In 2018, citizens can enjoy online films, sports broadcasts, music, video games and e-book subscriptions when travelling in the EU By 2020, European Open Science Cloud will offer Europe's 1.7 million researchers and 70 million science processionals a virtual environment to store, share and re-use their data across disciplines and borders 7
8 Digital skills are the key for future success 75% of Europeans think that digitisation has a positive effect on the economy BUT 74% think that digitisation replaces more jobs than it creates 37% of the European labour force does not have basic digital skills Equipping people with the right skills is crucial. In December 2016, the Commission launched Digital Skills and Jobs Coalition that brings together Member States, companies, social partners, non-profit organisations and education providers to tackle the lack of digital skills in Europe. By 2020, the Coalition hopes to train 1 million young unemployed people in digital jobs. In its Skills Agenda for Europe the Commission asked all Member States to develop national digital skills strategies by mid and to set up national coalitions to support their implementation. Digital skills will also be high in the agenda of Social Summit in Gothenburg on 17 November. 8
9 An ambitious Digital Agenda for Europe Estonian Presidency, together with Bulgaria and Austria are committed to implementing the Digital Single Market Strategy. One of the four Estonian Presidency priorities is "Digital Europe and Free Movement of Data" which covers: egovernment ecommerce Smart economy Trust and security Sustainable and efficient implementation of the egovernment Action Plan to accelerate the take up of electronic identification (eid) and trust services are core activities for digital society success. Well-functioning cross border public services are particularly important for Europe, removing significant barriers for citizens and businesses. To prevent and halt crime we have to use modern technologies and ensure the interoperability of information systems. Consumers will benefit from more affordable cross-border parcel delivery while the proposed regulation on geo-blocking will ensure consumers no longer face barriers such as asked to pay with a debit or credit card from a certain country. Modernised copyright rules will guarantee that journalists, publishers and authors will be paid fairly for their work, regardless of whether it is made in studios or living rooms and whether it is published offline or online. Modernisation of current EU telecoms rules offers a more attractive regulatory environment that will foster investments in top-quality infrastructure across the EU. It is essential to invest in skills and move forward with the initiatives on youth and education. Creating better links between education and the labour market is essential. Union-wide cooperation in the field of cybersecurity and acknowledging the field as a source of opportunities rather than an obstacle is important. It is essential to update the EU's cybersecurity strategy. eprivacy legislation in line with today s needs and the objectives of the data protection reform will also contribute to increasing the level of trust. 9
10 Estonian Presidency events on digital Digital Summit in Tallinn on 29 September will focus on three themes: Digital economy industry 4.0, data economy, free movement of data Digital society egovernment, skills, health Digital trust & security cybersecurity, industry Choice of other events: Informal Meeting of Ministers of Competitiveness and Telecommunication and Conference on the Free Movement of Data July Informal Meeting of Defence Ministers (including cyber exercise) 6-7 September Future of Work Conference September Connecting Europe Conference September etaxation Conference - 5 October egovernment Conference (Tallinn Declaration) - 6 October ehealth Conference October ejustice Conference October Startup Nations Summit November Audiovisual Conference November 10
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