Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions - eEurope 2002 Final Report
Date: 2003-02-11
Institutions: European Commission
Subjects: EU action, Internet, electronic commerce, information network, type of business, university

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 11.2.2003
COM(2003) 66 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE
EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND
THE COMMITTEE OF THE REGIONS

eEurope 2002 Final Report

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE
EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND
THE COMMITTEE OF THE REGIONS
(Text with EEA relevance)

eEurope 2002 Final Report

2

TABLE OF CONTENTS

1.

2.

Introduction.................................................................................................................. 3

Overall Assessment of eEurope 2002 .......................................................................... 4

2.1

Connectivity ................................................................................................................. 4

2.1.1

Internet Penetration ...................................................................................................... 5

2.1.2 More competition is reducing prices............................................................................ 7

2.1.3

Fast research networks ................................................................................................. 7

2.2

Legislative acts............................................................................................................. 8

2.2.1

The new regulatory framework for electronic communications .................................. 8

2.2.2

e-Commerce ............................................................................................................... 10

2.3

Stimulating the effective use of the Internet .............................................................. 10

2.3.1

Internet in schools ...................................................................................................... 11

2.3.2 Working in the knowledge-based economy............................................................... 11

2.3.3

Participation for all in the knowledge-based economy .............................................. 12

2.3.4

Accelerating e-commerce........................................................................................... 13

2.3.5

A more secure Internet ............................................................................................... 14

2.3.6

Government On-line................................................................................................... 15

2.3.7

Health Online ............................................................................................................. 16

3.

Conclusions................................................................................................................ 17

3

1.

INTRODUCTION

The eEurope 2002 Action Plan was endorsed at the Feira European Council in June 2000 as
part  of  the  decade-long  Lisbon  strategy  of  economic,  social  and  environmental  renewal.  It
was complemented by the eEurope+ initiative launched by the candidate countries in reply to
the invitation of the Feira European Council to take on board the Lisbon strategy. The Action
Plan set out 11 action areas in which there were a total of 64 targets to be achieved before the
end of 2002.

eEurope  targets  have  been  monitored  regularly  through  the  benchmarking  exercise.
Benchmarking  forms  part  of  the  open  method  of  co-ordination,  promoted  by  the  Lisbon
European  Council,  whereby  monitoring,  exchange  of  best  practices  and  peer  review  are
applied  to  improve  convergence  of  national  performances  towards  the  goals  and  targets  for
the Union set out in the Lisbon strategy. The benchmarking of eEurope is based on a list of 23
sector-specific  indicators  endorsed  by  the  Council  in  November  2000.  Intermediate
measurements  of  these  indicators  were  presented  in  the  Commission  Communications
‘Impacts  and  Priorities’  in  March  20011  and  ‘eEurope  Benchmarking  Report’  of  February
20022.

The  present  document  highlights  the  achievements  of  eEurope  and  identifies  remaining
obstacles  to  the  full  development  of  the  information  society  in  Europe.  There  is  also  an
accompanying [Commission Staff Working Paper] which provides a commentary on progress
in each of the 64 targets.

In terms of realising the targets endorsed at the Feira European Council, eEurope has been a
major  success.  Most  of  the  64  targets  have  been  achieved.  Its  success  is  due  to  the
contributions of many actors in the European Institutions, Member States, Industry and Social
Partners. Its achievements are notable as they have been realised despite the difficulties of a
sharp  decline  in  the  stock  market,  particularly  in  ICT  stocks,  high  levels  of  debt,  and
subsequent reductions in investment. The goal of a competitive knowledge based economy is
still some distance away, but eEurope has laid solid foundations.

In  general  eEurope  has  been  strong  on  bringing  citizens  and  businesses  online  and
establishing a framework within which the knowledge economy can grow. Translating these
achievements  into  tangible  economic  benefits,  higher  productivity,  improved  quality  of
service,  greater  social  inclusion  and  non-inflationary  growth,  cannot  be  done  quickly.
Achieving these  gains  through  effective  use  can  only  be  realised  by  restructuring  economic
behaviour,  modernising  practices  and  undergoing  organisational  change  to  exploit  the  new
technologies. This is a long run process and achieving it in two years was beyond the scope of
eEurope 2002. To summarise:

(cid:1)  Internet connectivity has grown rapidly. When eEurope was launched, few had access to
the Internet. In 2002, more than 90% of schools and businesses are online and more than

1

2

COM(2001)  140, 13.3.2001.  All  documents  referenced  in  this  Communication  are  available  from  the
eEurope web site: http://europa.eu.int/eeurope

COM(2002) 62, 5.2.2002.

4

                                                
half of Europeans are regular users. Europe now has the fastest backbone research network
in the world. Widespread  take  up  of  high-speed connections by households and SMEs is
going  to  be  the  next  challenge.  There  are  still  significant  differences  in  connectivity
between Member States.

(cid:1)  A  legislative  framework  for  electronic  communications  and  for  e-commerce  has  been
agreed. Telecom legislation has been designed to strengthen competition in the market and
thereby reduce prices and to stimulate innovation. Prices have fallen and that competition
has been improving. For e-commerce, a series of directives have been adopted to increase
certainty  in  e-commerce  transactions,  in  particular  cross-border  trade,  and  to  ensure  an
adequate level of consumer protection.

(cid:1)  Increasing effective use of the Internet is the focus of the next step, eEurope 2005. This
means  for  example,  more  firms  to  use  e-commerce;  schools  not  only  connected  but  also
making full use of the Internet in class; government services offered online as well as fully
interactive,  more  use  in  the  health  sector  where  there  are  great  demands  for  up-to-date
information.  More  training  is  needed  for  the  benefit  both  of  workers  and  companies.
Action must be taken to address the current gaps in access and use of digital technologies
so  to  ensure  that  all  Europeans  have  the  opportunity  to  take  advantage  of  them  for  their
social and working life.

A  detailed  analysis  of  the  benchmarking  statistics  that  led  to  these  conclusions  is  given  in
section 2. This  is  followed by Conclusions focusing on the  removal of  residual obstacles to
the full development of the digital economy.

2.

2.1

OVERALL ASSESSMENT OF eEUROPE 2002

Connectivity

The Lisbon strategy has been based on the paradigm of innovation, employment and growth.
At the end of the nineties, there was an evident economic divergence between the USA  and
Europe.  The  US  economy  accelerated,  doubling  the  rate  of  growth  of  investment,  while
Europe slowed down and growth in investment reduced.

In  the  first  half  of  the  nineties,  US  investment  was  increasingly  comprised  of  information
technology products. The increase in US investment in this period was probably cyclical3, and
restricted  to  a  few  sectors.  The  high  levels  of  investment  in  computers  did  not  appear  to
improve the productivity of those other sectors in which they were being used.

However this changed in the mid-90s, at least in the USA. New data revealed an acceleration
of growth as a result of an increase in the rate of productivity. This shift in the rate of growth
coincided with a reduction in the price of computers and with the widespread adoption of the
Internet. A major  factor in the productivity increase was the very high productivity level of
the  ICT  sector.  It  was  only  when  computers  became  widely  available  and  got  connected,
enabling networking and affecting production processes, that productivity  gains  spilled over
to non-IT industries.

3

Investment usually increases as an economy comes out of recession. This was the case of the US in the
early 90s.

5

                                                
The  eEurope  initiative  considered  the  Internet  as  a  potential  source  of  productivity  growth.
Together  with  increasingly  powerful  computers  and  advances  in  telecommunications,  the
Internet is at the heart of the digital economy. Its networking abilities make it the very basis of
the information society. eEurope 2002 therefore aimed at increasing connectivity throughout
the EU.

Extending connectivity in Europe will increase its value to European citizens and businesses.
High levels of connectivity create a bigger market for both sellers and buyers, and introduce
the  potential  for  productivity  gains  through  reorganising  business  processes.  This  section
briefly  reviews  growth  in  connectivity  of  citizens  and  enterprises,  and  the  conditions  under
which it occurred, during the course of eEurope.

Chart 1

Internet in Europe
Internet penetration since the Lisbon Council

40,4%

42,6%

36,1%

28,4%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

18,3%

March 2000

October 2000

June 2001

June 2002

Nov 2002

Source:  European Commission (Eurobarometer)

2.1.1. Internet Penetration

Internet  connectivity  of  households  increased  from  about  18%  in  March  2000  to  43%  in
November  2002  (Chart  1).  Internet  through  TV  sets  and  mobile  devices  remains  marginal,
though these are expected to grow rapidly in future.

The  rapid  overall  rise  in  household  Internet  penetration  hides  wide  disparities  between
Member States (Chart 2)4. Three countries have Internet penetration rates above 65% and five
others above 50%5. Two more countries are above the average, whilst five countries are well
behind the EU average. Greece is an outlier with penetration of less than 14%, a figure which
increased only marginally over the past two years.

4

5

Note that surveys are based on telephone interviews and therefore penetration rates tend to be slightly
overestimated  as  households  without  a  fixed  telephone  can  be  considered  not  to  have  an  Internet
connection at home.
In comparison, the US Dept. of Commerce calculated that 50.5% of US households were connected to
the Internet in September 2001. By November of 2001 the EU figure was 37.7%.

6

                                                
Chart 2

80%

70%

60%

50%

40%

30%

20%

10%

0%

Nov 2002

Internet penetration in EU Households
(November 2002)

EU average 42.6%

NL

68%

DK

67%

S

66%

IRL

57%

FIN

55%

LUX

54%

A

54%

UK

50%

D

B

F

I

P

E

EL

46%

43%

36%

35%

32%

31%

14%

Source: European Commission (Eurobarometer November 2002)

The  results  are  generally  encouraging  but  there  remain  areas  of  slow  growth  and  big
differences  between  and  within  Member  States.  For  example,  in  November  2002,  47%  of
women  use  the  Internet,  in  comparison  to  60%  of  men.  This  difference  reduced  only
marginally  during  the  last  two  years:  in  October  2000,  35%  of  women  and  50%  of  men
answered  that  they  used  the  Internet.  Internet  usage  is  particularly  high  amongst  young
people, those with higher education and those who live in a city.

eEurope 2002 stressed the importance of reducing regional differences in the deployment of
information  infrastructure.  To  this  end,  the  Commission  increased  the  priority  given  to
information  society  projects  within  the  existing  Structural  Funds  programmes.  A  recent
evaluation6  shows  that  Structural  Funds  have  made  a  significant  contribution  to  the
development  of  the  information  society  in  less  developed  areas,  and  particularly  to  the
achievement  of  the  Lisbon  objectives.  About  €  10  billion  from  Structural  Funds  are  being
deployed  through  investments  in  support  to  infrastructure  development  (in  particular
broadband),  e-government,  e-commerce  and  ICT  skills7.  The  EIB  also  contributed  to  the
Lisbon  strategy  through  the  ‘Innovation  2000  Initiative’.  At  the  end  of  2002  the  bank  had
approved loans for an amount of €14.4 billion in favour of innovative projects (including e-
services)8.

Internet  connectivity  in  businesses  is  far  higher  than  the  household  rate.  Almost  all  large
enterprises (with more than 250 employees) and over 80% of all companies with more than
10  employees  are  using  the  Internet.  There  is  evidence  of  a  north-south  divide  with  Nordic
Countries  far  more  advanced  than  those  of  southern  Europe  but  the  latter  are  catching  up
according  to  the  latest  available  Eurostat  data.  More  detail  on  Internet  use  by  businesses  is
given in the discussion of eCommerce in section 3.3 below.

Internet connectivity of schools reached 93% in February 2002 and most Member States had
either achieved or  were on track to  reach  the  target  of  having  all  schools  connected  by  end
2002.  Schools  will  now  have  to  address  upgrading  to  broadband  and  ease  of  access,  as

6

7  

8

“Thematic Evaluation of the Information Society” by Technopolis, study carried out for the European
Commission (DG REGIO), 2002.
While information society projects represented about 2% of Structural Funds expenditure in the 1994-
1999  programming  period,  they  now  comprise  more  than  7%  of  appropriations  for  2000-2006  in
Objective 1 and 2 areas.
Out  of  this  total,  30%  was  for  education  and  e-learning,  30%  for  ICT  and  8%  for  diffusion  (e.g.
information platforms in health and tourism sectors). The remaining 32% was for R&D.

7

                                                
exemplified  in  section  2.3.1  below.  The  Barcelona  European  Council  in  March  2002
underlined the importance of computers in schools and called on Member States to ensure that
the ratio of internet-connected PCs to pupils was brought down to one for every 15 pupils.

2.1.2 More competition is reducing prices

Internationally available statistics have shown a clear relationship between Internet price and
penetration. The approach of eEurope 2002 was to stimulate competition and thereby to drive
prices down to competitive levels away from monopoly prices. This has proved successful as
regards  Internet  access  by  a  standard  dial-up  telephone  line  for  which  priceshave  fallen
continuously  and  substantially  in  the  last  two  years.  Monthly  costs  for  a  typical  residential
user, 20 hours of usage off-peak, are now between €10-20 in most Member States, including
call  charges.  Thus,  the  marginal  costs  of  Internet  access  for  a  PC  owner  have  become
small.

Most Internet users still use dial up connections to access the Internet, a temporary connection
associated  to  low  speed,  which  prevents  the  downloading  of  rich  applications.  These
inconveniences are overcome by high-speed, always-on (permanent) broadband connections.
As part of the eEurope benchmarking exercise, prices of ADSL and cable connections – the
only widely available broadband access technologies – have been tracked. While it is difficult
to provide unambiguous comparisons across Member States the following features are clear:

(cid:1)  ADSL prices are falling and at the same time the bandwidth offered has increased although

there are wide differences across Europe.

(cid:1)  Competition  is  still  limited  but  has  successfully  reduced  prices  in  some  Member  States,
especially  where  alternative  networks  exist  e.g.  in  Belgium  where  there  is  nearly  100%
cable  penetration,  ADSL  prices  are  amongst  the  lowest  in  Europe  (and  broadband
penetration one of the highest).

Data  on  broadband  penetration  are  limited  (the  Commission  will  monitor  availability  of
connections  through  the  benchmarking  of  eEurope  2005).  In  several  European  countries
broadband  is  developing  rapidly,  some  achieving  penetration  rates  near  the  top  of  the
international  league.  In  some  EU  countries  broadband  developments  still  have  to  take  off.
Competition in the EU for the supply of broadband access is still limited, but will be further
strengthened  by  the  implementation  of  the  new  regulatory  framework  for  electronic
communications (see section 2.2 below). Widespread availability of broadband access is also
one  main  objective  of  the  eEurope  2005  Action  Plan,  which  focuses  on  broadband  as  the
essential infrastructure to achieve the knowledge-based economy by 2010.

2.1.3

Fast research networks

eEurope has tackled one particular aspect of broadband by creating a high speed backbone for
universities and research institutes. The Commission has co-funded the work  of  27  national
research  and  education  networks,  including  all  Candidate  countries,  to  upgrade  their
interconnection  networks.  In  December  2001,  the  GEANT  network  reached  a  maximum
speed of 10 Gigabit/s and  a  total  transmission  capacity  of  over  130  Gb/s,  transferring  more
than 1 Petabyte of data per month at the end of 2002.

GEANT has now become the fastest research network backbone in the world, offering
the widest geographic coverage (32 countries). In 2002, GEANT reinforced its connectivity
to other regions in the world (e.g. North America and Asia Pacific) and it is in the process of

8

Chart 3

Core Research Network Speeds, 2001 and 2002 

2001

2002

d
n
o
c
e
s
p
e
r
s
t
i
b
a
g
g

i

12

10

8

6

4

2

0

NL

S

F

Fin

D

I

UK

A

B

L

DK

EL

IRL

P

E

Source: European Commission (Terena)

establishing  direct  connectivity  to  the  Mediterranean  and  Latin  America  regions.  Thus,
enabling European researchers to collaborate with colleagues from around the globe.

GEANT is a much needed infrastructure tool for the establishment of the European Research
Area. An important goal of the Lisbon strategy towards the most dynamic knowledge-based
economy  in  the  world  has  been  realised  with  the  high-speed  interconnection  of  more  than
3100  research  and  education  institutions.  GEANT  has  set  the  basis  for  the  emergence  of  a
European  Grid9  infrastructure  and  allowed  the  initiation  of  the  first  important  Grid-focused
RTD projects of which the most important is the DataGrid project led by CERN.

This tremendous increase of European backbone capacity allowed the NRENs to significantly
increase their national backbone speeds as well. This is shown in Chart 3 which gives national
backbone capacities before (June 2001) and after (June 2002) the introduction of GEANT.

The  eEurope  Action  plan  aimed  to  interconnect  high-speed  research  networks  not  only  to
universities,  but  also  to  schools.  As  a  matter  of  fact  all  universities  and  most  institutes  of
higher/further  education  are  permanently  connected,  sometimes  with  innovative  solutions
(such  as  wireless  campus  networks).  Still  more  efforts  are  being  done  to  further  upgrade
national  networks  and  to  interconnect  other  learning  facilities  (e.g.  primary  and  secondary
schools, libraries, etc.) to these networks.

2.2

Legislative acts

2.2.1

The new regulatory framework for electronic communications

Focusing  on  connectivity,  the  eEurope  2002  Action  Plan  highlighted  the  necessity  of  lower
prices for a quicker take up of the Internet, and identified the new regulatory framework as the
main tool for reinforcing competition and delivering competitive prices. eEurope 2002 called
for  all  possible  efforts  to  be  made  to  ensure  that  the  framework  was  adopted  as  soon  as

9

The  Grid  can  be  defined  as  the  scientific  problem  solving  infrastructure  of  the  21st  century.  It  is  a
heterogeneous  set  of  advanced  networks,  computers,  storage  devices  and  scientific  instruments  that
collectively  interact  and  manage  information  in  the  service  of  the  research  community  (industrial
applications are already under development). http://eu-datagrid.web.cern.ch/eu-datagrid/

9

                                                
 
 
possible, and for “work towards introducing greater competition in local access networks and
unbundling of the local loop” to be carried out.

In  July  2000  the  Commission  proposed  a  package  of  measures  for  a  new  regulatory
framework  for  electronic  communications  networks  and  services.  The  package  consists  of
five European Parliament and Council Directives under Article 95, one Commission Directive
to be adopted under Article 86, and one Commission Decision on a regulatory framework for
radio spectrum.

The texts making up the regulatory framework are the following:

– 

– 

– 

– 

– 

– 

– 

Directive 2002/21/EC of the European Parliament and of the Council on a common
regulatory  framework  for  electronic  communications  networks  and  services,
(“Framework Directive”)10

Directive  2002/20/EC  of  the  European  Parliament  and  of  the  Council  on  the
authorisation of electronic communications networks and services, (“Authorisation
Directive”)11;

Directive 2002/19/EC of the European Parliament  and of  the  Council  on  access  to,
and interconnection of, electronic communications networks and associated facilities
(“Access Directive”)12;

Directive  2002/22/EC  of  the  European  Parliament  and  of  the  Council  on  universal
service and users’ rights relating to electronic communications networks and services
(“Universal Service Directive”)13; and

Directive 2002/58/EC of the European Parliament and of the Council concerning the
processing  of  personal  data  and  the  protection  of  privacy  in  the  electronic
communications sector (“Data  Protection  Directive”)14.  This  directive  is  currently
undergoing its ‘second reading’ in the European Parliament.

Directive  2002/77/EC  on  competition 
for  electronic
communications networks  and services15, consolidating the existing liberalisation
Directives applicable to telecommunications.

the  markets 

in 

Radio Spectrum Decision 676/2002/EC, establishing a legal framework to achieve
the harmonisation of the use of radio spectrum16.

In  addition,  the  Commission  proposed  a  European  Parliament  and  Council  Regulation
(2887/2000) for unbundled access to the local loop which was adopted in December 2000 and
entered into force on 2 January 2001. However, the effective implementation is uneven and
progress has been slow.

Member States are expected to transpose the legislation by 25 July 2003. The new framework
will also be adopted by all those countries joining the EU over the coming years.

10

11

12

13

14

15

16

OJ L 108, p.33 of 24.4.2002.
OJ L 108, p.21 of 24.4.2002.
OJ L 108, p.7 of 24.4.2002.
OJ L 108, p.51 of 24.4.2002.
OJ L 201, p.37 of 31.7.2002.
OJ L 249, p.21 of 17.9.2002.
OJ L 108, p.1 of 24.4.2002.

10

                                                
The new regulatory framework aims to further strengthen competition in the market, thereby
reducing  prices,  stimulating  innovation,  and  ensuring  consumers’  choice,  creating  the
necessary conditions for improving the upward trend in high-speed Internet penetration.

The  evolution  of  the  regulatory  model  has  been  a  timely  response  to  the  emergence  of
innovative  services  generated  by  convergence  of  telecommunications  and  information
technologies, whereby similar services can be delivered over different types of networks. The
new  regulatory  framework  takes  convergence  into  account  by  adopting  a  technologically-
neutral  approach,  applied  homogeneously  to  all  transmission  infrastructures,  irrespective  of
the types of services carried. Content services are outside the scope of the framework.

The  primary  responsibility  for  implementing  the  new  framework  lies  with  the  national
regulatory  authorities  of  the  Member  States.  The  regulatory  process  will  be  based  on  the
analysis of the degree of competition on the relevant market, and on the identification of the
operators  holding  significant  market  power.  Whenever  the  evolution  of  markets  generates
bottlenecks, the regulatory framework will allow for intervention to fix access obligations, to
promote  transparency  and  non-discrimination.  Thus,  there  is  a  fine  balance  between  the
adaptation of regulation to changes in the marketplace and the provision of legal certainty to
operators. Further guarantees for innovators are given by the non-applicability of access rules
in emerging markets.

2.2.2

e-Commerce

The  legal  framework  has  been  improved  by  the  completion  of  the  internal  market  for
Information  Society  services  through  the  adoption  of  Directives  on  electronic  commerce
(2000/31/EC)17, electronic signatures (1999/93/EC)18 and copyright and  related rights in the
Information  Society  (2001/29/EC)19.  This  will  help  to  provide  more  business  certainty  in
carrying  out  electronic  commerce  across  the  EU’s  internal  borders  and  ensure  an  adequate
level of consumer protection.

The  eEurope2002  Action  Plan  also  called  on  the  Commission  to  promote  self-regulatory
initiatives:  “Commission  to  stimulate  increased  flexibility  in  e-commerce  regulation  by
building  more  on  co-  and  self-regulation,  inter  alia  through  co-operation  with  relevant
business groups such as the Global Business Dialogue.”, and also highlighted the importance
of building consumer confidence in e-commerce.

In  keeping  with  these  objectives,  the  Commission  has  supported  a  wide  range  of  non-
legislative initiatives, for example in the field of online dispute resolution and has supported
the activities of the Global Business Dialogue (GBDe). In the area of consumer confidence in
particular, the Commission launched the e-confidence initiative to encourage the definition of
common standards for trustmarks with the aim to promote good online business practices and
bolster confidence in e-commerce.

2.3

Stimulating the effective use of the Internet

While  connectivity  supplies  the  ‘infrastructure’,  and  the  legal  frameworks  create  the
conditions  for  its  exploitation,  the  adoption  of  the  ‘new  technology’  carries  the  potential  of
improving the way in which certain activities are carried out. The networking capabilities of

17

18

19

OJ L 178, p.1 of 17.7.2000.
OJ L 13, p.12 of 19.1.2000.
OJ L 167, p.10 of 22.6.2001.

11

                                                
the  Internet  can  change  the  way  we  work  and  learn,  how  we  relate  to  the  public
administration, the healthcare services that are available and how people with disabilities are
integrated  into  our  society.  This  section  uses  the  benchmarking  indicators  agreed  at  the
November  2000  Internal  Market  Council  to  analyse  how  the  network  has  been  adopted  to
develop an inclusive European digital economy.

2.3.1

Internet in schools

An  essential  requirement  for  Europe  to  create  a  knowledge  economy  is  to  invest  in
modernising education and to provide schools, teachers and students with easy access to high
quality  information  and  communication  resources.  Progress  over  the  past  two  years  in
connecting  schools  and  supplying  computing  resources  to  staff  and  students  has  been  a
success story. Developments in education have been monitored by annual surveys of teachers
and school principals and the key findings are as follows:

–  The level of computer equipment in EU schools is high and rising. On average, there are
10  pupils  per  off-line  computer  compared  with  12  pupils  per  computer  in  2001.  The
number  of  pupils  per  online  computer  has  fallen  from  25  to  17,  although  there  are  wide
variations around these averages across Member States.

–  The main factor influencing the standard of computer equipment is still the level and type
of  education.  At  EU  level,  the  number  of  pupils  per  computer  more  than  doubles
between professional/technical and secondary education (from 3 to 7 for off-line and 4 to
10  for  online  computers),  and  doubles  again  between  secondary  and  primary  education
(from 7 to 12 for off-line and 10 to 25 for online computers).

–  eEurope  aimed  to  have  all  schools  connected  by  end  2002.  By  February  2002,  93%  of
schools  were  already  connected.  However,  connections  are  not  always  available  in  the
classroom, impeding teachers use the Internet for educational purposes.

–  In terms of  bandwidth,  narrowband  connections  predominate,  but  broadband  has  grown
considerably.  This  is  linked  to  the  development  of  ADSL,  which  has  increased  fourfold
from 5% to 19% of schools, while cable modem connections have remained stable at 6%.
Broadband  is  more  extensive  in  urban  areas  and  is  also  more  widespread  in
professional/technical and secondary education than in primary schools.

–  Over half of EU teachers have been officially trained in the use of computers and four in
ten in how to use the Internet. More than nine out of ten teachers use a computer at home,
and almost eight out of ten have an Internet connection at home. Furthermore, almost nine
out of ten  teachers  are convinced  that  the  Internet  has  already  changed  or  will  sooner  or
later change the way they teach.

In schools greater emphasis is being placed on the quality of e-learning products and services,
and on the pedagogical context for their use. We are moving beyond questions of connectivity
and  infrastructure,  to  ones  associated  with  content,  teacher  training  and  organisational
implications, including new social interactions inside and beyond schools

2.3.2 Working in the knowledge-based economy

The eEurope 2002 targets set in relation to working in the knowledge economy cover skills,
training, flexibility in the workplace and the promotion of training centres and public Internet
access points to give wide access to life long learning to all citizens. Achieving these targets
require contributions from a range of actors in the public sector, the private sector and from

12

social  partners.  To  facilitate  their  co-operation,  the  Commission  established  a  high-level
group,  ESDIS20,  to  monitor  and  support  the  activities  of  all  participants  and  promote  the
exchange of good practices.

In  relation  to  digital  literacy  of  the  labour  force  the  proportion  of  the  working  population
receiving computer training increased from 23% to 29% between 2000 and 2001 but this increase
did not continue in 2002. The need for more computer training is underlined by the fact that, in all
Member States, the proportion of the working population using computers at work was far higher
than the proportion being trained.21.

To  promote  wider  training,  ESDIS  issued  a  recommendation22  in  November  2001  for  the
European  Computer  Driving  Licence(ECDL)  to  be  accepted  as  a  Europe  wide  basic  IT
accreditation scheme, without prejudice to either existing national schemes.

In  terms  of  greater  flexibility  in  the  workplace,  a  significant  achievement  has  been  the  joint
agreement  by  social  partners  on  telework23,  signed  in  July  2002,  which  follows  up  the  2001
agreements in the commerce and telecommunications sectors24. The percentage of the European
workforce teleworking (regularly or occasionally) raised from 5.6% in 2000 to 8.2% in 200225.

Public Internet access points (PIAPs) represent an important tool not only for accessing the web
but  also  for  training  and  e-working.  There  has  been  considerable  progress  in  the  setting  up  of
these centres, used by about 8% of European Union citizens

2.3.3

Participation for all in the knowledge-based economy

The  eEurope 2002 Action Plan  was subtitled ‘an  Information  Society  for  All’  and  aimed  at
ensuring  a  truly  inclusive  Information  Society.  e-Inclusion  is  now  addressed  in  both  the
European  Employment  Strategy  and  the  Social  Inclusion  Process,  on  the  basis  of  a  report26
developed with the support of ESDIS. A detailed presentation of achievements in the domain
of e-Accessibility is given in the Working Document “Delivering e-Accessibility - Improving
disabled people's access to the Knowledge Based Society”27 and by the reports for each of the
actions  in  the  action  plan,  summarising  the  main  results  achieved,  remaining  issues  and
proposed solutions28.These are summarised below:

20

21

22

23

24

25

26

27

28

Employment and Social Dimension of the Information Society -
http://europa.eu.int/comm/employment_social/knowledge_society/esdis_en.htm
See Strategies for jobs in the Information Society, SEC(2001) 222 and Information Society jobs -
quality for
change . SEC(2002) 372 available from
http://europa.eu.int/comm/employment_social/knowledge_society/index_en.htm
http://europa.eu.int/comm/employment_social/knowledge_society/it_skills_en.pdf
http://europa.eu.int/comm/employment_social/news/2002/jul/145_en.html
http://europa.eu.int/comm/employment_social/knowledge_society/tw_commerce.pdf 
http://europa.eu.int/comm/employment_social/knowledge_society/tw_telecoms.pdf .
Source: Eurobarometer November 2000, October 2002.
SEC(2001)  1428.  http://europa.eu.int/comm/employment_social/knowledge_society/eincl_en.pdf  The
report  identified  gaps  in  Internet  use,  threads  and  opportunities  for  social  cohesion,  and  presented
policies and best practices, leading the way to Council Resolution 2001/C 292/02.
SEC(2002) 1039 - http://europa.eu.int/comm/employment_social/knowledge_society/eacc_en.pdf
http://europa.eu.int/information_society/topics/citizens/accessibility/index_en.htm.

;

13

                                                
(a)

(b)

(c)

(d)

Adoption of the Web Accessibility Initiative (WAI) guidelines for public web sites,
as  proposed  by  the  Commission29,  and  largely  supported  by  the  Council  and  the
Parliament30.

Review of relevant legislation and standards to ensure conformity with accessibility
principles; The report recommends the monitoring of the progress of the situation in
Europe through the development of relevant indicators.

The  Network  of  Centres  of  excellence  in  Design  for  all,  EdeAN,  was  launched  in
July 2002 and now has around hundred members.

Publication of "Design for all" standards for accessibility of information technology
products,  in  particular  to  improve  the  employability  and  social  inclusion  of  people
with special needs.

Under eEurope 2002 a standardisation common work programme has been revised every year
permitting the implementation of the main priorities and activities in this area.

2.3.4

Accelerating e-commerce

Demand from consumers for electronically-traded goods and services (B2C) is continuing to
grow be it less fast than business-to-business (B2B). In October 2000, 18.5% of Internet users
made  purchases  online  ‘frequently’  or  ‘occasionally’.  This  increased  to  23%  by  November
2002. Internet users from the UK are by far the most likely to purchase online and the only
other  Member  States  where  more  than  a  quarter  of  Internet  users  purchase  online  are
Germany and Luxembourg (Chart 4).

% Internet Users who buy
frequent buyers occasional buyers

Chart 4

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

UK

L

D

IRL

S

DK

NL

F

A

P

B

FIN

E

I

EL

EU

Note: includes only purchases for private use (B2C) and excludes those  who report buying
'rarely'
Source:  European Commission (Eurobarometer)

Business-to-consumer (B2C) e-commerce makes up only around 1% of total retail sales and
cross-border B2C inside the EU is still only a fraction of total e-commerce activities. The bulk

29

30

COM(2001) 529 final, eEurope 2002:accessibility of public web sites and their content
Resolutions CR 7087/02 of 20th march 2002 and EPR P5_TA(2002)0325 of 13 June 2002.

14

                                                
of e-commerce activity is represented by business-to-business  (B2B), which makes up more
than two-thirds of the total value of e-commerce transactions.

According to the e-Business  W@tch survey (conducted in mid  2002), many  more European
enterprises  are  buying  online  than  selling  online.  In  some  sectors  (ICT  services,  business
services,  electronics,  publishing  &  printing),  more  than  45%  of  companies  buy  online.  In
comparison,  slightly  more  than  1  in  10  enterprises  sell  online  and  this  percentage  has  even
decreased  between  2001  and  2002  in  some  Member  States  according  to  the  latest  available
Eurostat data.

Differences  between  large  and  smaller  enterprises  also  exist  with  respect  to  the  quality  of
access  to  the  Internet.  More  than  a  quarter  of  small  enterprises  still  connect  to  the  Internet
with an analogue dial-up modem. Larger enterprises are better equipped  with fixed network
connections  and  more  than  half  of  those  having  access  to  the  net  with  more  than  2  Mbps
(according  to  the  e-Business  W@tch  data).  Such  significant  differences  have  been  observed
not  only  between  companies  from  different  Member  States  or  of  different  size,  but  also
between companies operating in different sectors.

The steady integration of ICTs into business processes may have a significant impact on the
economy as a whole, in terms of efficiency expected to materialise into productivity gains. In
this context, focus is already shifting to e-business as a wider concept encompassing not only
e-commerce activity but also the electronic integration of internal processes.

SMEs are still lagging behind large firms in integrating e-business technologies into normal
business  practices  to  realise  their  full  potential.  All  Member  States  are  taking  measures  to
help  their  SMEs  to  Go  Digital.  The  EU  benchmarking  initiative  of  national  and  regional
policies  in  support  of  e-business  for  SMEs,  identified  about  180  such  public-funded
initiatives,  and  suggested  19  examples  of  good  policies  in  support  of  e-business.  The
benchmarking  exercise  demonstrated  that  further  efficiency  gains  could  be  reaped  from
networking national and regional initiatives, sharing information and experience and learning
from each other. This is taken up in the eEurope 2005 Action Plan.

2.3.5

A more secure Internet

For  computers  and  communication  networks  everywhere,  security  has  become  a  major
concern. During the short period of eEurope there has been a visible increase in  threats  and
security incidents. Virus attacks in particular have become much more common as shown in
the chart .

Chart 5

Security
(% Internet users experiencing viruses Oct. 2000-Nov. 2002)

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

A

B

D

DK

E

EL

F

FIN

I

IRL

L

NL

P

S

UK

EU

Source:  European Commission (Eurobarometer)

15

Oct. 2000

Nov.2002

Actions are underway in a number of areas to improve protection against security threats. An
electronic signatures Directive31 was adopted but use of this form of authentication is limited.
The  roll  out  of  a  more  secure  Internet  Protocol  is  only  slowly  progressing.  eEurope  also
triggered  a  major  industry-led  smartcard  initiative  backed  by  €100m  research  funding.  This
initiative achieved it’s target of establishing a smart card charter which was launched at under
the Danish Presidency in December 200232.

The security work begun under eEurope has now developed into a more comprehensive approach
of network and information security. On the basis of a Communication by the Commission33 and
a  Council  Resolution34,  Commission and  Member  States  will  take  a  series  of  measures  in  2002
encompassing  awareness-raising,  technological  support,  regulation,  international  co-ordination.
The establishment of a network and information security agency is envisaged and will allow the
Union to give a more efficient response to security challenges of tomorrow.

2.3.6

Government On-line

The eEurope 2002 Action Plan set a target for basic public services to be available online by
the end of 2002. A definition of 20 basic services was agreed in Council and used a basis for
surveys of online services provision by 10,000 national, regional and local service providers.
In  October  2002,  it  was  found  that  all  Member  States  at  least  partly  offered  all  20  basic
services online. Services provided from central administrations are online and for the eEurope

eGovernment: Basic services

oct-01

oct-02

Chart 6

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

S

DK

IRL

L
Chart shows the average online availability of 20 basic services in each Member State.  Availability is measured as 25% =information
only;  50%=one-way interaction;  75%  two-way interaction; 100%=full electronic case handling.
Source: European Commission (Cap Gemini Ernst&Young)

FIN

UK

NL

EL

D

E

P

A

B

F

I

31

32

33

34

Directive 99/93/EC, entry into force 19.07.2001
Open Smart Card Infrastructure for Europe (previously known as “Common Specification”)
http://www.eeurope-smartcards.org)
COM(2001) 289 of 6 June 2001.
14378/01 of 6 December 2001.

16

                                                
target to be fully achieved requires the few local providers not yet online to develop their e-
services .

A more detailed analysis of the sophistication of service provision showed that there has been
rapid progress. Chart 6 shows the relative position of Member States and the progress towards
fully interactive service delivery. Measured  as  a percentage  (where  25%=  information only;
50%=information  plus  one-way  interaction  i.e.  downloadable  forms;  75%  =  two-way
interaction  and  100%=  full  electronic  case  handling),  the  average  for  all  services  in  all
Member States has increased from 45% to 60%. Four Member States have an average rating
above 75% i.e. services  can be  applied for  fully online  and a  further 8  had  an average over
50% meaning information is available online and application forms can be downloaded.

2.3.7

Health Online

The principle targets of the Health Online Chapter were twofold:

(cid:1)  to encourage Member States to set targets for the use of  information technologies within

healthcare; and,

(cid:1)  to  develop  a  basis  for  supporting  citizens  in  identifying  high  quality  health  care

information on the Internet.

Chart 7

Internet and Health
% Medical Practices connected to the Internet.

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

S

UK

98%

97%

FIN

94%

DK

F

NL

I

A

89%

76%

72%

65%

57%

IRL

57%

LUX

54%

B

E

D

P

EL

50%

48%

42%

40%

24%

Source:  European Commission (Eurobarometer, June 2002)

Since eEurope was launched, there have been considerable advances in the provision of health
services  online.  All  Member  States  have  now  adopted  detailed  plans  to  implement
information  technology  in  the  provision  of  healthcare.  Furthermore,  Eurobarometer  surveys
have showed a steady rise in the rate of Internet connections by general medical practitioners.
The  2002  survey  showed  that,  on  average,  78%  of  EU  medical  general  practitioners  were
connected to the Internet, with almost 100% connected in the UK and in the Nordic countries.

The use of the  Internet to deliver patient care  is  also  growing.  On average, 48%  of  medical
practitioners use Electronic Health Care Records and 46% use the Internet to transmit patient
data to other care providers for the purposes of continuity of care. However, a fully interactive
use  of  the  Internet  to  deliver  care  to  patients  through  the  provision  of,  for  example,  e-mail

17

consultation (12%) or allowing patients to book appointments on line (2%) would appear to
be in its early stages.

The initiative to support citizens in obtaining good quality health information on the Internet
was  based  on  the  recognition  that  European  citizens  are  avid  consumers  of  health  related
information  on  the  Internet.  Accordingly,  the  eEurope  2002  Action  Plan  proposed  the
development of a core set of Quality Criteria for Health Related Websites. A Communication,
Quality  Criteria  for  Health  related  Websites35,  was  adopted  following  consultation  with
representatives from government, industry and NGOs as well as an online public consultation.

The Communication outlines six quality criteria: transparency and honesty, authority, privacy
and  data  protection,  updating  of  information,  accountability,  and  accessibility.  It  states  the
need  to  tailor  these  criteria  according  to  particular  audiences  and  describes  the  methods  of
implementing quality criteria including codes of conduct, self applied codes or quality labels,
user  guidance  tools,  filtering  tools,  and  third  party  quality  and  accreditation  systems.  The
Communication  invites  Member  States  and  national  and  regional  health  authorities  to
implement the quality criteria, develop information campaigns, localise available information,
and  exchange  information  on  how  quality  standards  are  implemented.  It  also  notes  that
consideration  will  be  given  to  the  possibilities  of  establishing  a  system  of  recognisable
Community seals of approval for Internet sites as part of the implementation of the European
Union public health programme.

3.

CONCLUSIONS

This  evaluation  has  shown  that  eEurope  2002  achieved  its  main  objectives  and  that  these
represent important steps towards the knowledge-based economy which is at the centre of the
Lisbon strategy.

As access prices have  fallen,  the  number of households  connected to  the  Internet in Europe
has  risen  to  over  40%.  More  than  90%  of  schools  and  90%  of  businesses  are  nowadays
connected.  With  Géant,  Europe  now  has  the  world’s  fastest  backbone  research  network
connecting nearly all universities and research institutes and representing a test-bed for future
Internet technologies. Development of competition is likely  to  further  drive  down  prices,  in
particular for broadband access, to increase innovation and broaden the range of services.

Moreover, new services and the  Internet have opened up new  opportunities  for  society  as  a
whole, helped by the creation of a comprehensive legal framework in  e-commerce, and will
be further stimulated by the upcoming transposition and implementation of the new regulatory
framework for electronic communications. There is an increasing number and higher quality
of e-government services becoming available online across the whole of Europe.

The  upward  trend  in  the  use  of  information  and  communication  technologies  and  services
(ICTs) in the economy and society is very encouraging. The starting point is now better than
ever for Europe to draw the full benefits of digital technologies and the Internet in terms of
productivity gains, economic growth, employment and social cohesion. Yet conditions ought
to  be  even  better,  in  particular  with  regard  to  the  existing  gaps  in  Internet  use  among  the

35

COM(2002 667.

18

                                                
different groups and to the use of ICT and e-business by European SMEs. Therefore, Europe
ought  to  realise  the  efficiencies  and  opportunities  intrinsic  to  the  adoption  of  these
technologies.

Basic e-government services are online. Now they need an increasing degree of interactivity
and  require  back-office  reorganisation  to  fully  achieve  efficiencies.  Most  schools  are  now
connected. The next step is to use computers more effectively to improve education and skills.
The work of medical practitioners at all levels is becoming more information intensive. The
development  of  health  information  networks  with  broadband  connectivity  is  becoming  a
critical  infrastructure  for  the  provision  of  health  services.  Much  work  has  been  done  to
improve the security of information infrastructures by both the private and public sector but
threats  remain  and  the  consequence  of  attacks  are  increasingly  costly.  It  is  essential  for
security work to continue and a centre of competence be established to stimulate e-commerce
and  Internet  use  in  general.  Internet  connections  have  greatly  improved,  obviously  initially
mainly narrowband. Europe must now move broadband; a leading-edge infrastructure being a
prerequisite  for  a  competitive  knowledge  economy.  In  general,  the  pervasive  use  of  ICTs
across a wide range of economic and social activities supported by broadband networks can
bring about a profound and long-term impact on productivity growth and eEurope 2002 has
initiated this process.

The  next  stage  in  the  development  of  the  information  society  and  its  contribution  to  the
Lisbon objectives is already underway in the form of the  eEurope2005 Action  Plan36 which
covers the period 2003-2005. The objectives of the new Action Plan were endorsed by Heads
of  State  and  Government  at  Seville  in  June  2002  and  is  already  providing  an  effective
response to many of the issues highlighted in this Report.

The  new  Action  Plan  focuses  on  a  more  limited  number  of  key  targets  where  government
action  can  make  a  genuine  difference:  the  modernisation  of  public  services  to  make  them
more productive, accessible and equitable; the further promotion of a favourable environment
for  e-business;  and  a  secure  broadband  information  infrastructure.  Cutting  across  these
priorities  is  the  necessity  to  create  an  inclusive  information  society  for  all  of  Europe’s
citizens.

The extensive use of a wide range of different ICT applications, content and services, both by
the public and private sectors, is expected to improve productivity and competitiveness in the
EU  economy  as  a  whole,  creating  a  favourable  environment  to  private  investment,  and
making an important contribution to meeting the Lisbon agenda.

36

eEurope 2005 Action Plan, COM(2002) 263.

19