COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The Digital Agenda for Europe - Driving European growth digitally
Date: 2012-12-18
Institutions: European Commission
Subjects: Internet, competitiveness, data protection, digitisation, economic growth, information technology, innovation, job creation, public service, research and development, single market

EUROPEAN 
COMMISSION 

Brussels, 18.12.2012  
COM(2012) 784 final 

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

The Digital Agenda for Europe - Driving European growth digitally 

(Text with EEA relevance) 

{SWD(2012) 446 final} 
{SWD(2012) 447 final} 

EN 

   EN 

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

The Digital Agenda for Europe - Driving European growth digitally 

(Text with EEA relevance) 

TABLE OF CONTENTS 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

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

A European borderless economy — the Digital Single Market................................... 5 

Speeding up public sector innovation .......................................................................... 6 

Very fast internet supply and demand.......................................................................... 7 

Cloud computing.......................................................................................................... 9 

Trust and Security ........................................................................................................ 9 

Entrepreneurship and digital jobs and skills .............................................................. 10 

Beyond R&D&I: An industrial agenda for key enabling technologies ..................... 11 

Implementation and governance ................................................................................ 12 

10. 

Conclusion ................................................................................................................. 12 

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1. 

INTRODUCTION 

Europe’s  future  sustainable  growth  and  competitiveness  depends  to  a  large  extent  on  its 
ability  to  embrace  the  digital  transformation  in  all  its  complexity.  Information  and 
communication  technology  (ICT)  is  increasingly  impacting  all  segments  of  society  and  the 
economy. It is estimated that half of all productivity growth derives from investment in ICT. 
Internet  traffic  is  doubling  every  2–3  years  and  mobile  internet  traffic  every  year.  By  2015 
there will be 25 billion wirelessly connected devices globally; doubling to 50 billion in 20201. 
Mobile  data  traffic  will  increase  12-fold  between  2012  and  2018,  and  data  traffic  on 
smartphones  will  increase  14  times  by  2018.2  There  are  more  than  4  million  ICT  workers 
across many sectors in Europe and their number is growing by 3% annually despite the crisis. 
The internet is empowering people to create and share their ideas, giving rise to new content, 
entrepreneurs  and  markets.  ICT  is  the  essential  transformative  technology  that  supports 
structural change in sectors like health care, energy, public services, and education. 

But the EU is not positioning itself well enough to benefit from these digital developments. It 
risks  losing  out  in  global  competitiveness,  economic  growth  and  societal  development.  In 
spite of rising unemployment especially among young people, by 2015, 700,000 to 1 million 
high-quality ICT jobs will not be filled.3 EU investment in high speed internet is not dynamic 
enough, whereas elsewhere it is becoming the norm, with 57% of households subscribing to 
fibre in South Korea and 42% in Japan4. China is connecting 34 million households this year 
alone5. Investments in Europe in 4th generation mobile networks are only a small fraction of 
the world's total. Europe's past reputation as the 'mobile continent' is rapidly waning, as delays 
in allocation of mobile spectrum in the EU are holding back the opportunities created by new 
mobile  services.  The  Digital  Single  Market  remains  fragmented,  with  public  service 
infrastructures and online commerce still being determined by national territories. Investment 
in  public  and  industrial  research,  development  and  innovation  is  falling  well  short  of  the 
target6. 

Inaction  in  any  of  these  areas  is  not  an  option  for  the  EU.  The  Digital  Agenda  for  Europe 
(DAE)7 was adopted in 2010, as an integral part of the Europe 2020 strategy, to remedy these 
shortcomings by stimulating the digital economy and addressing societal challenges through 
ICT.  The  European  Council  and  the  European  Parliament  have  since  called  for  further 
strengthening  European  digital  leadership  and  completion  of  the  Digital  Single  Market  by 
20158. 

The  Digital  Agenda  has  delivered  and  is  broadly  on  target.  Since  its  inception  clear  results 
have been achieved. Regular internet usage is rising steadily, especially among disadvantaged 
groups.  Fewer  and  fewer  citizens  have  never  used  the  internet.  Similarly,  online  buying 
continues  to  increase,  although  the  pace  of  growth  in  cross-border  eCommerce  is  too  slow. 
Importantly,  high-speed  broadband  shows  the  first  signs  of  taking  off,  including  ultra-fast 

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4 
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8 

The Internet of Things, Cisco 2011 
Ericsson Mobility Report, 2011 
eSkills Monitor study, European Commission 2009 
FTTH Council global ranking 2012 
As part the "broadband China" project. 
European Commission (2012PREDICT 2012 - An Analysis of ICT R&D - EU & beyond 
COM(2010) 245/2. 
European  Council  conclusions  of  28/29  June  2012  (the  "Compact  for  Growth  and  Jobs")  and 
conclusions of 1/2 March 2012. 

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connections  above  100  Mbps.  However  significant  differences  remain  among  different 
Member States.9 

Notwithstanding this relative success, evolving market and technology trends call for more to 
be  done  to  achieve  a  virtuous  cycle  linking  infrastructure,  content,  services,  market,  and 
innovation towards more productivity and growth. The Digital Single Market is still far from 
being a reality and Member States still vary considerably in their pace of development. This 
implies the need to further spur investment in Next Generation Access (NGA) networks and 
technologies and to reduce the costs of rolling out mobile and fixed broadband infrastructure. 
To justify such investments, the supply and demand for content and services in an effective 
Digital  Single  Market  are  essential  and  this  requires  more  harmonisation  of  single  market 
rules,  more  often  through  Regulations  rather  than  Directives.  Innovation  is  crucial  for 
nurturing  growth,  calling  for  flexible  approaches  to  mainstream  ICT-enabled  solutions 
through private-public partnerships and support for local initiatives. 

Media are converging, which changes traditional value chains. The availability and quantity 
of content and data is exploding. Cloud computing is offering a whole new value proposition 
for  consumers  and  businesses,  especially  for  small  and  medium  enterprises  (SMEs).  The 
internet is going mobile, spurring development of new sectors such as mobile applications. 

The  internet  is  also  transforming  the  production  lifecycle  of  products  and  services. 
Manufacturing  sectors  are  benefiting  from  the  advances  in  supply  chain  management  and 
logistics. Health care provision stands to be revolutionised, delivering more cost efficient and 
personalised  service  to  patients  and  professionals.  The  internet  economy  injects  an 
unprecedented  efficiency  gain  in  all  production  process  liberating  resources  for  new 
investments  and  growth;  bringing about  new  divisions  of  labour  that  foster  creativity,  skills 
and specialisation. However, as the economy is becoming critically reliant on the internet, the 
threat  of  cybercrime  and  cyber-attacks  is also  increasing,  which  risks  undermining  people’s 
trust in the online environment  

Given  these  observations,  this  Communication  refocuses  the  Digital  Agenda  to  better 
stimulate  the  digital  economy  through  mutually  enhancing  and  complementary  measures  in 
the following key areas: 

• 

• 

• 

• 

Advancing the European borderless digital economy, creating the world's largest and 
richest  digital  single  market  for  content  and  services,  while  fully  guaranteeing 
consumer and creator's rights; 

Speeding  up  public  sector 
interoperable ICT and a better exchange and use of information; 

innovation  enabled 

through 

the  deployment  of 

Regaining world leadership for network services, by stimulating private investment 
in high-speed fixed and mobile broadband networks, enabled by legal predictability, 
improved planning and targeted private and public EU and national funding; 

Fostering  a  secure  and  trustworthy  internet  environment  for  users  and  operators, 
based  on  strengthened  European  and  international  collaboration  in  responding  to 
global risks; 

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Cf. SEC (2012)180. 

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• 

• 

• 

Establishing  a  coherent  framework  and  conditions  for  cloud  computing  services  in 
Europe creating the world's largest cloud enabled ICT market; 

Creating  a  favourable  environment  for  transforming  traditional  business,  and 
spurring 
the 
proliferation  of  digital  skills,  to  fill  the  gap  between  demand  and  supply  of  ICT 
professionals; 

innovative  web-based  ventures.  Increase  digital 

literacy  and 

Implementing  an  ambitious  strategic  research  and  innovation  policy  for  industrial 
competitiveness based on funding key enabling technologies. 

While  all  pending  actions  from  the  original  Digital  Agenda  will  be  delivered,  renewed 
commitment and targeted action are necessary in these seven domains. This Communication 
proposes  a  package  of  actions  supporting  one  key  transformative  action  per  domain.  These 
may  vary  in  nature  and  design  to  optimise  impacts  in  each  of  the  specific  policy  areas.  To 
achieve their full effect, they need to be complemented by other actions, as described in the 
measures below. 

Full implementation of this updated Digital Agenda should increase European GDP by 5%, or 
1500 euro per person, over the next eight years, by increasing investment in ICT, improving 
e-skill  levels  in  the  labour  force  and  reforming  the  framework  conditions  for  the  internet 
economy10. Furthermore, this should create 1.2 million jobs in infrastructure construction11 in 
the  short  term,  rising  to  3.8  million  jobs  throughout  the  economy  in  the  long  term12.  In 
addition massive gains in productivity in traditional industry is expected by the introduction 
of internet-related processes.  

2. 

A EUROPEAN BORDERLESS ECONOMY — THE DIGITAL SINGLE MARKET 

The digital economy is borderless by nature, but the European Digital Single Market has been 
fragmented by national rules, their divergent application in practice and variations in market 
practices.  If  e-commerce  were  to  grow  to  15%  of  the  total  retail  sector  and  Single  Market 
barriers  were  eliminated,  it  is  estimated  that  total  consumer  welfare  gains  would  be  around 
€204 billion, equivalent to 1.7% of EU GDP 13. 

Thus  the  Commission  will  continue  to  forcefully  address  transformation  and  change  of  this 
current patchwork system to enable the development of a fully-fledged Digital Single Market. 
The  Commission  has  delivered  its  part  of  many  DAE  actions  identified  under  its  Digital 
Single  Market  priority,  including  proposals  for  legislation  on  the  re-use  of  public  sector 
information14,  the  European  Common  Sales  Law15,  online  dispute  resolution16,  data 
protection17,  electronic  identification  and  eSignatures18,  and  collective  rights  management19. 

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12 

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15 
16 
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19 

"Capturing the ICT dividend", Oxford Economics Research, 2011. 
The Impact of Broadband on the Economy: Research to Date and Policy Issues (ITU April 2012) 
"Quantitative  estimates  of  the  demand  for  cloud  computing  in  Europe  and  the  likely  barriers  to  take-
up", IDC 2012 
COM(2011) 942. 
COM(2011) 877. 
COM(2011) 636. 
COM(2011) 794. 
COM(2012) 09. 
COM(2012) 238. 
COM(2012) 372. 

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These proposals must be urgently adopted and implemented and remaining obstacles to online 
cross-border transaction need to be eliminated. 

E-commerce, notably across borders, should be strengthened by following up on the proposals 
of the e-Commerce Action Plan20, the Green Paper on Internet, Card and Mobile Payments21, 
and the European Consumer Agenda22. Consumers should be able to compare more easily the 
prices, the quality and the sustainability of goods and services. The Commission will develop 
guidelines by 2014 to help enforcers correctly implement EU rules on consumer information 
requirements and the Consumer Rights Directive23. 

Moreover, the EU value added tax reform will address in 2013 the alignment of tax rates for 
digital content and similar physical goods, such as e-books and printed books. 

The Digital Single Market should be fuelled by the free flow of data and access to and supply 
of content and services. The Commission will make proposals to strengthen the European data 
industry,  beyond  the  proposed  revision  of  the  Directive  on  the  re-use  of  public  sector 
information, addressing issues such as common licensing conditions and the implementation 
of charging rules to enable public data to fuel the development of online content. 

As  to  creative  content,  copyright  is  the  universal  means  to  reward  creation.  However,  the 
internet and the digital revolution are challenging the copyright framework. Therefore, the on-
going  review  of  EU  copyright  policy  needs  to  be  completed,  based  on  market  studies  and 
impact  assessments  and  legal  drafting  work,  with  a  view  to  a  decision  in  2014  whether  to 
table legislative reform proposals. The following elements will be addressed: territoriality in 
the Internal Market; harmonisation, limitations and exceptions to copyright in the digital age; 
fragmentation of the EU copyright market; and how to improve effectiveness and efficiency 
of enforcement while underpinning its legitimacy in the wider context of copyright reform. 

In parallel in 2013, a structured stakeholder dialogue is being launched to address six issues 
where  rapid  progress  is  needed:  (i) cross-border  portability  of  content;  (ii)  user-generated 
content  (UGC);  (iii) data-  and  text  mining;  (iv) private  copying  levies;  (v) access  to 
audiovisual works; and (vi) cultural heritage. The outcome of the stakeholders' dialogue will 
be reported by December 2013. 

Part of the responses to the Green Paper on the online distribution of audiovisual works (to be 
presented in spring next year) will also feed into the discussion on convergence of audiovisual 
media services. This will be the focus of a debate to be launched in early 2013 by the Green 
Paper  on  "Preparing  for  a  Fully  Converged  Audiovisual  World:  Growth,  Creation  and 
Values".  Worldwide,  570  million  homes  are  predicted  to  have  devices  with  inbuilt  internet 
connectivity  –  TVs,  Blu-ray  players,  set-top  boxes,  games  consoles,  and  media  streaming 
boxes  –  by  201624,  so  tackling  technological,  contractual  and  regulatory  issues  related  to 
converged media services could bring significant benefits. 

Key  transformative  action:  Completing  the  on-going  review  of  the  Copyright  Framework 
through the preparation for legal drafting work, with a view to a decision in 2014 whether to 

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21 
22 
23 
24 

COM(2011) 942. 
COM(2011) 941. 
COM(2012) 225. 
Directive 2011/83/EU. 
http://www.informatandm.com/wp-content/uploads/2012/02/ITM-CES-Connected-TV-White-Paper.pdf 

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table  legislative  reform  proposals  and seek  the  resolution  of  copyright-related  issues  where 
rapid progress is needed via a structured stakeholder dialogue in 2013. 

3. 

SPEEDING UP PUBLIC SECTOR INNOVATION 

Austerity  measures,  population  dynamics,  rising  energy  costs  and  emission  targets  require 
innovative  ways  of  delivering  public  services  in  the  EU.  ICT  allows  for  them  to  be  more 
efficient  and  effective,  as  well  as  more  citizen-  and  business  centric.  Effective  use  of 
interoperable digital technologies enabling the exchange and processing of real time data is an 
important  enabler.  E-procurement  alone  can  save  EUR  100  billion  per  year25  and 
eGovernment can reduce the costs of administration by 15-20 %.  The reuse  of public sector 
data will empower  people, drive business development and create €140 billion in economic 
value.  Use  of  ICT  to  improve  management  of  the  energy  system  (including  the  network  as 
well  as  consumption),  can  equally  help  reduce  infrastructure  related  investment  needs  and 
operational  costs  in  the  energy  sector  by  billions  of  euros  while  contributing  to  the 
decarbonisation  of  the  electricity  sector.  Health  care  is  becoming  the  largest  expenditure  of 
the  future  welfare  state,  as  a  result  of  an  ageing  population.  Introduction  of  ICT  and 
telemedicine is estimated to improve efficiency of healthcare by 20%, improving at the same 
time the quality of life of patients.  

To  support  the  necessary  transitions  within  the  health  care  sector,  the  Commission  has 
presented an eHealth Action Plan up to 202026 to empower individuals to better manage and 
share  their  data,  support  e-health  efficiency  and  promote  combined  organisational  and 
technological  innovation.  The  European  Innovation  Partnership  on  Active  and  Healthy 
Ageing27  will  reach  full  cruising  speed  delivering  integrated  care  solutions  across  regions 
reaching 4 million EU citizens by 2015. 

The Innovation Partnership approach will also be applied to bridge divides between transport, 
energy  and  ICT  value  chains;  and  between  public  and  private  actors  to  deliver  innovative 
smart city solutions into the market28. 

The  Commission  highlighted  in  its  "Annual  Growth  Survey  2013"  that  modernisation  of 
public  administration  is  one  of  the  five  priorities  for  the  Member  States  in  the  next  12-18 
months,  and,  in  this  context,  calls  for  widespread,  interoperable  digitisation  of  public 
administration29.  To  underpin  the  digital  transition  in public  services  and  to  ensure  they  are 
available  to  all  Europeans  regardless  of  their  place  of  residence,  the  Commission  envisages 
deploying  and  rolling  out  digital  services  in  key  areas  of  public  interest.  These  will  be 
financed  through  the  proposed  Connecting  Europe  Facility  (CEF)  to  support  cross  border 
interoperability  of  eIDs,  e-procurement,  business  mobility,  eJustice  or  electronic  health 
records,  Internet  Security,  Europeana,  multilingual,  eProcurement,  eJustice,  eHealth,  Safer 
Internet  for  Children,  and  Smart  Energy  Services.  CEF  will  build  the  bridges  between 
national  infrastructures  that  will then  become  hubs  for  innovation  and new applications and 
for the benefits for mobile citizens and businesses. 

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29 

COM(2012) 179. 
COM(2012) 736. 
COM(2012) 83. 
COM(2012) 4701. 
COM(2012) 750. 

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• 

Key  transformative  action:  Develop  and  implement  public  digital  service 
infrastructures,  policy  and  support  in  the  framework  of  the  Connecting  Europe 
Facility. 

4. 

VERY FAST INTERNET SUPPLY AND DEMAND  

High-speed  internet  connectivity  is  the  basis  for  the  digital  economy;  without  it,  essential 
services  such  as  cloud  computing,  eHealth,  Smart  cities,  audio-visual  services  –  and  the 
benefits thereby derived – will simply not take off. A 10% increase in broadband penetration 
could  yield  a  1-1.5%  increase  in  annual  GDP30  or  could  raise  labour  productivity  by  1.5% 
over the next five years. For that reason the DAE set ambitious targets for universal internet 
access at increasingly high speeds31. 

Encouragingly,  the  coverage  and  penetration  rates  of  high-speed  networks  in  Europe  are 
improving, but overall, Europe trails Asia and the US and is at risk of failing to meet the 2020 
targets. There are several reasons, the most evident being the uncertain commercial viability 
of substantial network investments, due to prevailing investment models and the EU market 
structure. But also because of doubts about consumers' short-term willingness to pay more for 
higher  speeds,  as  new  high  value-added  digital  content  and  services  are  not  necessarily 
available  yet  throughout  the  EU,  and  because  consumers'  doubts  about  the  real  speeds  they 
are provided with. 

The Commission will present a comprehensive package to tackle market incentives to invest, 
provide  targeted  funding  and  reduce  roll-out  costs.  Investors  need  to  see  the  prospect  of  a 
healthy  return  that  takes  account  of  risks.  More  consistency  within  the  Single  Market, 
enabling  fair  competition,  is  vital  -  as  is  regulatory  certainty  to  encourage  long-term 
investment. 

In  early  2013  the  Commission  will  adopt  a  Recommendation  which  will  introduce  more 
rigorous  non-discrimination  rules  to  ensure  that  alternative  operators  get  truly  equivalent 
access  to  incumbent  networks.  It  will  also  ensure  more  stability  and  consistency  between 
Member  States  in  price  regulation  for  wholesale  access  to  incumbent  networks  and  provide 
greater  flexibility  on  how  “next  generation”  wholesale  access  products  can  be  priced.  This 
measure  should  give  durable  signals  to  long-term  investors  at  least  until  2020.  The 
Commission  will  also  adopt  a  Recommendation  on  safeguarding  the  open  internet  for 
consumers,  which  will  increase  legal  certainty  for  network  operators,  investors,  content 
providers and consumers. As part of the Single Market Act II32, the Commission – intends to 
make  a  legislative  proposal  to  reduce  the  cost  and  increase  efficiency  in  the  deployment  of 
high speed communications infrastructure, through mechanisms such as e.g. re-use of existing 
infrastructure, exploiting synergies across sectors, enabling better coordination of civil works 
and  encouraging  NGA  ready  in-house  equipping.  In  2014,  the  Commission  will  review  the 
2007 Recommendation on relevant markets susceptible to ex ante regulation. 

In addition, the Commission has proposed EUR 9.2 billion (in constant 2011 prices) for ICT 
investments in the Connecting Europe Facility (CEF)33 for the period of 2014-2020; a part of 

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Czernich et al. (2009), Broadband Infrastructure and Economic Growth 
100%  broadband  coverage  by  2013,  access  for  all  EU  households  to  30  Mbps  by  2020,  and 
subscriptions of 100 Mbps or more for 50% households. 
COM(2012) 573. 
COM(2011) 676. 

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this amount will be used for investments in broadband networks. The CEF will attract private 
co-investment  and  ease  access  to  capital  for  high-speed  internet  by  projects  anywhere  in 
Europe. The proposals for the Structural and the Rural Development Funds34 for 2014-2020 
are also expected to provide a new wave of incentives for investments in high-speed internet 
particularly  in  less  developed  regions  and  in  rural  areas.  The  proposal  for  the  ERDF 
regulation  2014-2020  argues  for  extending  broadband  deployment  and  the  roll-out  of  high-
speed networks, but also for developing ICT products and services.  

Europe should regain world leadership for mobile infrastructures and services, for which the 
availability of sufficient spectrum is essential. The Commission is working on overcoming the 
current fragmentation of spectrum allocation and licensing conditions and in freeing up more 
spectrum35. The Commission will propose a bold action plan on wireless communications in 
2013. 

• 

Key  Transformative  Action:  Durable  regulatory  measures  on  non-discrimination 
and wholesale pricing to promote investments in high-speed networks and strengthen 
competition across all networks. 

5. 

CLOUD COMPUTING  

Cloud  computing  illustrates  the  paradigm  shift  being  brought  about  by  digital  technologies, 
transforming sectors as diverse as music, healthcare and science, from the smallest businesses 
to the largest governments. Cloud technology is a disruptive innovation that enhances the use 
of digital platforms, content and services. It could drastically reduce ICT and energy costs and 
significantly  increase  the  competitiveness  of  SMEs  in  global  markets  by  providing 
unprecedented access to sophisticated customer and logistics management systems.  The full 
deployment  of  Cloud  services  also  poses  new  challenges  for  policy-makers  and  legislators 
concerning barriers such as interoperability, data protection and contractual liability. 

Developments since the original DAE have shown the need for a comprehensive EU Strategy 
on  cloud  computing  that  goes  beyond  specific  areas  such  as  e-government  or  science.  The 
European  Cloud  Computing  Strategy36  puts  forward  several  key  actions  to  make  Europe 
cloud-active,  i.e.  promoting  wider  use  of  standards  and  certification  for  cloud  services; 
ensuring  safe  and  fair  contract  terms  and  conditions  for  cloud  services;  and  harnessing  the 
public  sector's  buying  power  to  accelerate  the  development  of  a  mature  market  for  cloud 
computing  through  a  European  Cloud  Partnership.  The  partnership  will  be  aiming  for 
common public sector requirements for cloud computing and the joint procurement of cloud 
computing to realise economies of scale. The European Cloud Partnership will also serve as 
an umbrella for related initiatives at Member State level. By the end of 2013, the Commission 
will also launch pilot actions to explore the efficiency gains from moving public services into 
the  'cloud'.  The  services  developed  under  CEF  will  heavily  rely  on  pan-European  cloud 
platforms enabling interconnection of the various national public cloud initiatives. 

• 

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35 
36 

Key  Transformative  Action:  Establishment  of  the  European  Cloud  Partnership  to 
harness public buying power to accelerate the development of the market for cloud 
computing. 

COM (2011) 615/2. 
Decision 243/2012/EU. 
COM(2012) 529. 

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6. 

TRUST AND SECURITY  

Digital  media  and  technologies  —  including  the  internet  —  offer  fantastic  opportunities  for 
innovation, trade, freedom of speech and democratic empowerment. But not every European 
is embracing them yet, often because of a lack of trust. According to a recent Eurobarometer 
survey, 40% of users are concerned about their personal data being compromised online, and 
38% are worried about the security of online payments37. 

New  threats  appear  every  day:  cybercrime  is  on  the  rise;  there  are  risks  of  disruptions  of 
networks  and  information  systems  used  by  operators  of  critical  infrastructure  potentially 
spreading across borders; there is a risk that online business activities, notably e-commerce, 
are  disrupted;  inappropriate  on-line  behaviour  and  content  that  is  harmful  to  individuals 
including children is a real problem. Purely local approaches to combating these threats are no 
longer sufficient and stronger coordination is needed at EU level. The EU should become the 
leading  region  in  the  world  in terms  of  network  and  information  security,  on-line  safety,  as 
well as protection of on-line privacy. This will also stimulate a European market for security 
products. 

Securing  networks  and  information  systems  requires  proper  risk  management,  including 
simulation  exercises  to  test  preparedness.  The  Commission  will  propose  a  Directive  to 
strengthen  network  and  information  security  across  the  EU  and  so  contribute  to  the  smooth 
functioning  of  the  internal  market.  The  capacity  of  the  European  Union  to  confront 
cybercrime  will  be  reinforced  with  the  establishment  of  the  European  Cybercrime  Centre 
(EC3) at Europol and adoption of the Directive on attacks against information systems. These 
proposals will be part of the European Cyber Security Strategy, which will aim to reinforce 
the resilience and reliability of network and ICT systems, the fight against cyber-crime, and 
ensure a more coherent external cyber security policy.  

Furthermore, the fraudulent online sale of fake goods, particularly fake pharmaceuticals and 
consumer  products,  continues  to  have  a  damaging  effect  on  public  health  and  is  misleading 
both  patients  and  consumers.  In  parallel  with  enforcement  efforts  by  public  authorities,  the 
Commission  continues  to  promote  pan-European  voluntary  measures  tackling  problems 
throughout the whole supply chain, like for example the Memorandum of Understanding on 
the sale of counterfeit goods via the internet38. 

The European strategy for a better internet for children39 sets out child safety actions built on 
empowerment  and  protection,  thereby  encouraging  children  to  make  responsible  use  of  the 
internet.  Measures  to  fight  child  sexual  abuse  images  online  follow  the  European  legal 
framework  in  force,  which  provides  the  necessary  safeguards  for  individual  liberties.  An 
international dimension will be added through the launch of a Global Alliance against Child 
Sexual Abuse Online in close cooperation with the EU Member States and the United States. 
The Commission will also evaluate the relevant self-regulation practices and their results. 

• 

37 
38 
39 

Key  Transformative  Action:  A  proposal  for  a  Directive  on  network  and 
information  security  to  establish  a  common  minimum  level  of  preparedness  at 
national level, to set up a cooperation mechanism to prevent and counter cross-border 
cyber  incidents,  risk  management  and  incident  reporting  requirements  for  public 

Special Eurobarometer 390, 'Cyber security'. 
http://ec.europa.eu/internal_market/iprenforcement/stakeholders/index_en.htm 
COM(2012) 196. 

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administrations; firms providing essential services (e.g. banking, energy, health and 
transport); and online platforms. 

7. 

ENTREPRENEURSHIP AND DIGITAL JOBS AND SKILLS 

Youth unemployment is a massive concern and there is a need to strengthen the link between 
regular ICT use and formal ICT learning, and recognise this as vital to the success of young 
people.  Digital  skills  should  be  the  indispensable  component  of  all  professional  training, 
business education and lifelong education programmes to ensure new generations as well as 
those currently in the workplace are able to acquire the skills they need. The Commission will 
issue  a  Communication  on  'Opening  up  Education',  which  will  address  the  role  of  ICT  and 
open  education  resources  as  enablers  of  innovative  learning  and  teaching  practices  to  raise 
digital competences across the EU population. 

The  Commission  signals  that  by  2015  700,000  to  1  million  ICT  jobs  will  not  be  filled  in 
Europe,  due  to  lack  of  skilled  personnel.  Additional  action  is  needed  to  boost  the  overall 
number  and  the  employability  and  mobility  of  ICT  experts.  Therefore  the  Commission  will 
launch  a  ‘Grand  Coalition  on  Digital  Skills  and  Jobs’.  The  Coalition  consists  of 
representatives  from  companies  and  administrations  active  in  the  ICT  sector  or  with 
substantial  ICT  requirements.  The  aim  is  to  secure  firm  commitments  from  members  to 
increase  the  number  of  ICT  training  placements;  to better align  education  with needs  in  the 
labour  market;  and  increase  transparency  and  mobility  in  the  labour  market  by  agreeing  on 
standard job profiles and skill certification.  

As  an  alternative  career  option  to  regular  employment,  more  young  people  now  choose  to 
become  an  entrepreneur,  driven  by  the  unprecedented  opportunities  created  by  the  web,  the 
cloud, mobile platforms, social networks and the enormous amounts of data. These start-ups 
need a more business-friendly environment (a "licence to fail") with easier access to finance, 
markets,  networks  and  skills;  which  must  be  encouraged  through  risk-sharing  schemes, 
venture  capital,  favourable  fiscal  treatment  and  networking  events.  The  Commission  will 
launch an action plan to support web entrepreneurs in early 2013. 

• 

Key Transformative Action: Grand Coalition on Digital Skills and Jobs — to take 
practical steps to address the shortage of ICT proficiency and the apparent mismatch 
between available ICT jobs and supply of appropriate digital skills. 

8. 

BEYOND R&D&I: AN INDUSTRIAL AGENDA FOR KEY ENABLING TECHNOLOGIES 

Research, Development and Innovation are key for developing new products and services and 
getting them to market. ICT research, development and innovation and subsequent industrial 
investment and growth will ensure that Europe remains competitive in the mid to longer term. 
Europe needs a strong ICT industrial base, as ICT is both a major industrial sector itself and 
an  enabler  for  innovation  and  productivity  in  many  other  sectors,  from  manufacturing  to 
energy, transport and healthcare. For example, chip advances are leading to greater processing 
power  and  ever  more  applications,  while  photonics  underlies  innovations  from  cancer 
detection to zero-fault, customisable manufacturing. Japan, Taiwan, Korea, China and the US 
are all addressing these challenges. While Europe has every chance to be at the fore-front of 
future  technology  generations,  it  needs  to  take  action  to  overcome  the  fragmented  national 
policies,  regulatory  obstacles  and  lack  of  skilled  engineers  that  are  holding  it  back  in  too 

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many  fields.  Only  then  can  the  vision  of  repeating  industrial  successes  such  as  the  Airbus 
project in other areas, for example in semiconductors40, become a reality. 

As a basis, R&D&I funding at all levels (EU, Member States and industry) needs to be pooled 
and  concentrated  on  strategic  requirements,  e.g.  in  the  areas  of  photonics,  robotics,  high-
performance computing41, Factories of the Future42, the Future Internet PPP43 and electronics. 
It also needs to be brought closer to the market to address the societal challenge of creating a 
greener, more eco-efficient Europe that aims to improve the quality of life for all citizens. A 
further  focus  will  therefore  be  on  initiatives  on  Smart  Cities,  Active  and  Healthy  Ageing, 
Green Cars44 and Energy Efficient Buildings45. 

Following  the  horizontal  Communication  on  KETs46,  the  Commission  will  propose  an 
industrial  strategy  for  the  area  of  micro-  and  nano-electronics,  with  the  aim  of  increasing 
Europe's attractiveness for investment in design and production as well as growing its global 
market share.  

• 

Key  transformative  action:  Pooling  of  European  public  and  private  resources  for 
micro-  and  nano-electronics  behind  a  common 
industrial  strategy,  with  a 
strengthened Joint Undertaking at EU level47 as the main vector for R&D&I support. 

9. 

IMPLEMENTATION AND GOVERNANCE 

The Commission will consolidate and strengthen the mechanisms to implement DAE actions, 
via  increased  cooperation  with  national  and  local  authorities  through  the  DAE  High-Level 
Group of national representatives. A network of national "digital champions"48 has also been 
established.  Dialogue  with  stakeholders  will  continue,  in  particular  through  the  Digital 
Agenda  Assembly  (DAA)  and  through  further  use  of  online  collaboration  tools.  "Going 
Local" missions to all Member States will help to present the DAE review and related policy 
issues and gather information on digital policies and issues at stake in each Member State 

The Commission gathers and shares data, in line with European policy on open data, notably 
through the DAE Scoreboard which will be merged with the DAE Annual Progress Report. It 
provides  a  consolidated  input  on  the  development  of  digital  markets  in  the  EU  and  in  each 
Member State that will flow into the "European Semester of Economic Coordination"49 

The  Commission  will  ensure  that  all  actions  taken  in  the  context  of  this  Communication 
respects  the  Charter  of  fundamental  rights  of  the  European  Union50.  In  line  with  the  recent 

40 

41 
42 
43 
44 
45 
46 
47 

48 

49 
50 

“Shouldn't  we  be  looking  for  an  Airbus  of  Chips?”,  Vice-President  Neelie  Kroes  on  24  May  2012, 
http://europa.eu/rapid/press-release_SPEECH-12-382_en.htm. 
COM(2012) 45 
ec.europa.eu/information_society/tl/ecowor/manuf/index_en.htm 
http://www.future-internet.eu/home/future-internet-ppp.html 
www.green-cars-initiative.eu 
www.e2b-ei.eu 
COM(2012) 341. 
Comprising at least the areas currently served by the Joint Undertakings ENIAC (http://www.eniac.eu/) 
and ARTEMIS (http://www.artemis-ju.eu/). 
On an initiative from Commission President Barroso, many Member States have appointed their digital 
champions to support the DAE by getting people online, tackling exclusion, promoting digital skills in 
the workforce. 
http://ec.europa.eu/europe2020/making-it-happen/index_en.htm 
COM(2010) 573. 

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recommendations  of  the  European  Group  on  Ethics  the  Commission  has  incorporated  a 
commitment to the ethical and responsible deployment of new technology, including the need 
for  inclusive  access;  the  accommodation  of  children  and  other  vulnerable  groups;  the 
protection  of  personal  data  and  privacy;  and  continuing  research  on  the  psychological  and 
societal implications of ICT. 

Since  the  internet  extends  beyond  Europe,  global  governance  and  international  cooperation 
are  also  essential.  The  Commission  will  support  the  internet  principles  covered  by  the 
COMPACT51 strategy by cooperating in international forums such as the OECD, the G8 and 
relevant  United  Nations  platforms,  including  the  Internet  Governance  Forum,  and  will 
continue to support and promote the values of internet freedom. 

10. 

CONCLUSION 

The objective is for the EU's economy and society to rejuvenate itself into a digital Europe, 
where  digital  technologies,  media  and  content  are  embraced  and  exploited  by  the  whole 
population.  The  explosive  growth  of  the  utilisation  of  ICT  in  our  daily  life  is  contributing 
more  than  any  other  technological  innovation  to  a  radical  change  in  the  economy  and  the 
society as a whole. In the next decade ICT can contribute to a paradigm shift in society and in 
production  systems,  enabling  higher  growth  and  welfare  through  more  efficiency,  new 
products, new services and smarter public services. 

Europe has so far lagged behind other advanced economies in understanding that the strategic 
use  of  ICT  is  a  fundamental  policy  instrument  in  driving  the  creation  of  value  and  societal 
change.  The  strategic  use  of  ICT  has  the  potential  to  quickly  realise  a  virtuous  cycle  that 
transforms efficiency into growth. ICT technology allows to dramatically reducing the cost of 
providing  the  quality  of  the  welfare  State  that  has  been  the  distinctive  element  of  modern 
European  society,  bringing  more  personalised  health  care,  better  education  and  more 
democratic  participation  to  public  life.  For  companies,  the  massive  introduction  of  ICT 
implies  reaching  their  customers  more  effectively,  boosting  productivity  and  improving 
operational efficiency. It also creates unprecedented opportunities for young entrepreneurship 
and young professionals, while enabling the elderly to remain active and connected. 

The  proposals  made  in  this  Communication  address  concrete  barriers  to  Europe's  digital 
transformation; they may challenge existing systems and interests. But keeping the status quo 
will not secure Europe's long-term future. To sign up to the proposals is to commit to tackling 
the obstacles — and to prioritising prosperity and welfare. 

These proposals are linked together, all addressing and boosting different critical parts of the 
DAE. They are designed to create breakthroughs in specific areas with considerable leverage 
effects. They are not intended to replace on-going DAE actions, but will be prioritised due to 
their expected short- to medium-term impacts. 

All  proposed  actions  in  this  Communication,  requiring  the  EU  financial  contribution  post 
2013,  will  be  financed  within  the  budget,  allocated  for  the  relevant  policy  area  in  the 

51 

"Compact for the Internet": an Internet of Civic responsibility, One Internet, that is Multi-stakeholder, 
Pro-democracy,  Architecturally  sound,  Confidence  inspiring,  and  Transparently  governed.  Speech  of 
Vice-President Neelie Kroes: 
http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/11/479&format=HTML&aged=0&l
anguage=EN&guiLanguage=en 

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Commission's  proposal  for  the  EU  Multi-Annual  Financial  Framework  (MFF)  2014  2020, 
without prejudice to the final decision and the final amounts on the proposals for MFF 2014-
2020 package as well as for CEF, Structural Funds and Horizon 2020 programmes. 

All stakeholders in Europe's digital cause are urged to cooperate with the Commission to put 
into  effect  the  outlined  proposals,  as  they  crucial  to  securing  Europe's  place  in  a  globally 
competitive digital future. 

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