The European Union admits it is behind its competitors and its own goals on digitalization

The Court of Auditors, which is the institution created to supervise the work of the other bodies of the European Union, and the European Commission, have recently made public a report (2024 State of the Digital Decade package | Shaping Europe’s digital future (europa.eu) on the state of digitalization within the EU. In this report, both institutions highlighted that the gap with the United States in terms of investment in this area has more than doubled between 2018 and 2020, ruining all short and medium-term European hopes of competing on an equal footing with the world’s technology giants.

The European Commission has also presented its report Special report 08/2024: EU Artificial intelligence ambition | European Court of Auditors (europa.eu) with the proposed policies for the development of digitalization until 2030, and it appears that a lot of work has still to be done for digital independence. It is also clear that Member States also have to make serious efforts to promote digitalization for SMEs and citizens alike.

The documents published underscore the uneven presence of infrastructures needed to foster the digital transition. Currently, only 64% of European households are linked to optic fiber, which leaves hundreds of millions without a reliable high-speed internet connection. Additionally, the reports also note that only 64% of companies currently use cloud storage, and only 50% analytical algorithms, a percentge well below the objectives set by Member States and the European Commission.

Besides the necessary infrastructures, both reports highlight a worrying lack of personal and professional technological competencies across the Union. According to current numbers, only 55,6% of EU citizens master elementary digital competencies, which can include knowing how to answer emails or using a search engine. On the professional level, the European Commission estimates a shortage of 8 million ICT professionals across the Union, which could seriously hinder any industrial initiative aimed at catching-up with China and the USA.

Special report 08/2024: EU Artificial intelligence ambition – Stronger governance and increased, more focused investment essential going forward. https://www.eca.europa.eu/en/publications/SR-2024-08