Europe’s Digital Decade target at stake! Urgent Call to Address Gaps in Skills and Infrastructure

Staff
By Staff
4 Min Read

The 2024 State of the Digital Decade report serves as a critical wake-up call for European policymakers.

The EU Digital Decade is a comprehensive plan aimed at guiding Europe’s digital transformation. It outlines key objectives for the EU’s digital infrastructure, skills and services by 2030. The 2024 Commission report published recently on the State of the Digital Decade paints a concerning picture for the European industry: while significant steps have been made in some areas (AI Regulation, Digital Identity and Data Governance), the overall progress towards the Digital Decade targets set for 2030 reveals critical shortcomings that could have profound implications for workers, industry, and the broader economy. 

Two primary concerns stand out: inadequate progress and fragmentation. There are significant disparities across regions, which risk exacerbating the digital divide within Europe. For workers, this means that the opportunities associated with digital transformation, such as new jobs and skills development, are not evenly accessible in the different EU countries. This uneven development risks leaving certain regions and their workforces behind and increased inequalities. Already in 2020, industriAll Europe warned of the risk of digital divide in research which showed that digitalisation could lead to regional divides between South-East Europe and North-West Europe, if not properly shaped.

Significant work is needed to reach the 2030 targets, also in terms of digital skills. Currently, only 55.6% of the EU population has basic digital skills, and the number of ICT specialists is projected to reach only 12 million by 2030, well below the 20 million target. By 2030, only 59.8% of the population is estimated to have basic digital skills if no further action is taken.

The lack of digital skills hampers workers’ ability to adapt to new technologies and threatens job security. There is a pressing need for comprehensive training programmes and upskilling and reskilling to ensure that the workforce is equipped to meet the demands of the digital transition. Without these efforts, many workers may find themselves at a disadvantage, facing the risk of job loss in a rapidly changing job market.

Currently, 80% of the technologies and services necessary for Europe’s digital transformation are designed and manufactured in third countries. European platforms have captured less than 5% of global market value over the past decade. Moreover, European representation among the world’s leading ICT companies is minimal, with only three European firms in the top 50 ICT companies by market capitalisation (see more in our Policy Brief).
Progress on connectivity coverage is limited. Only 64% of households have access to fibre, and the rate of progress (13.5%) is insufficient to meet the gigabit target by 2030. Additionally, only 18.5% of households have gigabit connections. High-quality 5G coverage extends to just 50% of EU territory, with most 5G deployments not being standalone. The investment required to meet connectivity targets by 2030 remains substantial, estimated at EUR 200 billion.

Isabelle Barthès, industriAll Europe Deputy General Secretary, commented: “We have to ensure that the benefits of the digital transformation are evenly distributed across the European regions. We need targeted initiatives to correct the imbalances and to ensure regional cohesion.”
“By investing in digital infrastructure, skills and local industries, Europe can build a resilient and inclusive economy that can pave the way for a future-proof Europe for both citizens and workers. While public investments will be needed to incentivise private investments, they must come with social conditionalities.”

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