The Digital Transformation of Europe

2023

How the EU is digitalized

On September 27, 2023 European Union , the State of the Digital Decade was released. The document provides an assessment of the current development of the IT industry in the region, and also defines key goals until 2030. Four main areas are considered - digital skills, digital infrastructure, business digitalization (including use) artificial intelligence and digitalization of public services.

By the end of September 2023, fibre networks, which are crucial for gigabit connectivity, cover only 56% of households across the EU, the report said. At the same time, 81% of the population is available for 5G mobile services, but in rural areas this figure decreases to 51%. However, the rollout of 5G networks is not going fast enough, and the quality of services is still not meeting subscriber expectations and meeting industry needs. Approximately 55% of rural households in the EU are not served by any modern network, and 9% are not covered by a fixed link at all. By 2030, the European Union intends to provide 100 percent coverage of its territory with fiber-optic networks and 5G services: this will require additional investments of at least €200 billion.

Fibre optic networks cover only 56% of households in the EU

By the end of September 2023, the EU's contribution to the global production of advanced semiconductor products in value terms is approximately 10%. The goal is to bring this figure to 20% by 2030.

As of the end of September 2023, less than 10% of companies in the EU use AI systems. This value is expected to be brought to 75% by 2030. The same indicator is planned to be demonstrated in the areas of cloud computing and big data implementation.^[1]

Turkey joins IT program "Digital Europe"

On September 1, 2023, the European Commission announced the signing of a cooperation agreement with Turkey, under which this country will join the Digital Europe IT program worth €7.5 billion (in the period 2021-2027).

Under the terms of the agreement, Turkish enterprises, government agencies and other organizations will be able to take part in projects to introduce modern digital technologies. As part of the initiative, specialized Centers for Digital Innovation will be created in Turkey. In addition, local companies will be able to interact with participants in the European IT market in various promising areas, including artificial intelligence and machine learning. Among other areas are named supercomputers, cybersecurity and ensuring the widespread use of digital technologies in the economy and society.

Turkey will join the Digital Europe program

Thanks to this agreement, the EU and Turkey will strengthen their IT ties with potential benefits secured by the capabilities and assets of this state in the areas covered by the Digital Europe program, including in the AI sphere, the official statement said.

The agreement aims to expand cooperation between the EU and Turkey in the field of economic and technological development. The parties intend to support the further digitalization of enterprises - primarily in the segments of small and medium-sized businesses. The funds allocated under the Digital Europe program will complement the funding available to Turkey through other EU initiatives such as Horizon Europe. The Horizon Europe Research and Innovation Project aims to restore the economy, stimulate EU industrial competitiveness, promote cross-border scientific activities, as well as expand cooperation between scientists, teachers and students in the EU countries.^[2]

2022: Ukraine was connected to the Digital Europe program of 7.5 billion euros

On September 5, 2022, the European Union and Ukraine signed a package of agreements in a number of areas. One of them concerns the accession of Ukraine to the Digital Europe project, the total budget of which for the period from 2021-2027. is 7.5 billion euros. The concluded agreement provides Ukrainian companies and government agencies with access to the following Digital Europe programs:

• High-performance computer - 2.2 billion euros. Projects that compute large amounts of data for economic, health, or defense solutions can be presented here.
• Artificial intelligence, data and cloud services - 2.1 billion euros. Projects that create products based on artificial intelligence to facilitate the work of enterprises, state administrations or research institutions can be presented here.
• Digital skills - 580 million euros. Projects that create opportunities for gaining new IT skills can be submitted here.
• The use of digital technologies in the economy and society - 1.1 billion euros. Projects introducing digitalization in business or in the field of electronic management, health, environment, education and culture, Smart City technologies can be submitted here.
• Cybersecurity (the direction is closed to non-EU states).

European Commission chief Ursula von der Leyen greets Ukraine's Prime Minister Denis Shmygal at EU headquarters in Brussels on September 5, 2022

The participation of countries in the program involves the payment of contributions. But the EU exempted Ukraine from paying them in 2021-2022 and provided a 95% discount on financial contributions during 2023-2027. In the fall of 2022, new work programs, competitive proposals and details on how to apply for participation in the program will be available on the website.

Starting in the fall of 2022, Ukrainian organizations will be able to apply for funding under the Digital Europe project^[3]

2020

European Data Strategy

In February 2020, the European Commission presented a European data strategy. Its implementation is part of the initiative for the digital transformation of Europe. Having studied the strategy, TAdviser prepared a summary in Russian. Read more here.

See also

• Main article: Europe
• European Union Regulation on Personal Data (GDPR, General Data Protection Regulation)
• European Data Strategy
• IT in the EU public sector
• Cybercrime and cyber conflicts: Europe

Notes