State of the Union 2017 : building a digital Europe.
Date: 2017-11-05
Institutions: Directorate-General for Communication
Subjects: EU activity, European Union, President of the Commission, digital technology, electronic government, impact of information technology, innovation, new technology, telecommunications policy

STATE   
OF 
THE 
UNION 
2017

BUILDING A DIGITAL EUROPE

EUROPEAN COUNCIL CONCLUSIONS 
(19 OCTOBER 2017), PARAGRAPH 11

TO SUCCESSFULLY BUILD A DIGITAL EUROPE, 
THE EU NEEDS IN PARTICULAR: 

Governments and public sectors that are 
fully brought into the digital age and lead by 
example:  
e-government and the deployment of new 
technologies, accessibility, one-stop government 
and the once-only principle, and a digitalised 
public sector are key to transforming our societies 
and supporting the EU’s four freedoms. The 
European Council calls for implementing the Tallinn 
Ministerial Declaration on e-Government.

A future-oriented regulatory framework:  
completing the Digital Single Market Strategy in 
all its elements by the end of 2018 remains an 
essential task. Despite considerable progress, work 
in this area needs to be accelerated in order to 
meet this deadline. To that end, the additional TTE/
Telecom Council on 24 October should discuss 
how to speed up and prioritise the work on the 
Digital Single Market. Agreement between the 
co-legislators on geo-blocking, audio-visual media 
services and parcel delivery should be reached by 
the end of 2017. 

By June 2018, co-legislators should also agree on 
the free flow of non-personal data proposal and 
the electronic communications code. The European 
Council highlights the importance of ensuring 
adequate rules on data flows with third countries 
in trade agreements without prejudice to EU 
legislation. Furthermore, negotiations on copyright 
and on the Digital Content Directive should be 
pursued as a matter of priority.

The European Council also underlines the necessity 
of increased transparency in platforms’ practices and 
uses.

CURRENT STATE OF PLAY 

The Tallinn Declaration on eGovernment commits to the vision of the EU 
eGovernment Action Plan 2016-2020, under which several actions are 
already contributing to the modernisation and digitalisation of public services, for 
instance through the once-only principle in the proposed Single Digital Gateway of 
2 May 2017.

The Commission’s proposal to tackle unjustified geo-blocking was adopted on 
25 May 2016. Trilogues are ongoing since May 2017 with very polarised positions 
that make it difficult to reach an agreement.

The Commission’s initiative to make cross-border parcel delivery more 
affordable and efficient was adopted on 25 May 2016. While the Council has been 
ready to negotiate since June 2017, the European Parliament only managed to 
agree on a negotiating position last week. Trilogues should therefore start in the 
coming weeks. 

The Commission’s proposal to update the Audiovisual Media Services Directive 
was adopted on 25 May 2016. A third trilogue took place on 16 October 2017 
that showed the difficulty of the negotiations. The European Parliament refused to 
negotiate on a number of key political points as long as the Council did not move 
from its position as stated in its General approach of 23 May 2017.  

The two Commission proposals to modernise EU copyright rules and to 
facilitate access to content online were adopted on 14 September 2016. 
Both institutions are still defining their positions. The Commission hopes that the 
institutions will reach an agreement on these two initiatives, which include key 
deliverables for EU citizens.

The two Commission initiatives on digital contract rules were adopted on 
9 December 2015. Negotiations between the European Parliament, the Council and 
the Commission have not started yet but the Commission’s intention to extend the 
scope of the Proposal for a Directive on certain aspects concerning contracts for 
the online and other distance sales of goods to face-to-face sales this month is 
expected to ease them.

 
 
EUROPEAN COUNCIL CONCLUSIONS 
(19 OCTOBER 2017), PARAGRAPH 11

A first rate infrastructure and communications 
network:  
this requires cooperation at the EU level, inter alia 
with the aim of achieving world-class very high-
speed fixed and mobile networks (5G) all across 
the EU and increased coordinated availabilities 
of spectrum by 2020 under consistent regulatory 
and economic conditions; this in turn requires 
dedicating all necessary legislative resources, 
including a sufficient number of trilogues, 
to reaching an agreement on the electronic 
communications code, including the necessary 
provisions on spectrum.

A common approach to cybersecurity:  
the digital world requires trust, and trust can only 
be achieved if we ensure more proactive security 
by design in all digital policies, provide adequate 
security certification of products and services, 
and increase our capacity to prevent, deter, detect 
and respond to cyberattacks. To that end, the 
Commission’s cybersecurity proposals should be 
developed in a holistic way, delivered timely and 
examined without delay, on the basis of an action 
plan to be set up by the Council.

CURRENT STATE OF PLAY 

On 14 September 2016, the Commission adopted an Action Plan on 5G 
connectivity calling on Member States to complete their national 5G deployment 
roadmaps by the end of 2017, as part of their updated national broadband plans. 
It is important that this work is completed in a timely manner to progress towards 
achieving world-class high-speed fixed and mobile networks (5G) all across the 
Union.

At the same date, the Commission proposed to modernise the current EU 
telecommunications rules for boosting long-term investments with better use of 
radio frequencies, stronger consumer protection and a safer online environment. 

The first informal negotiations between the European Parliament, the Council and 
the Commission will take place on 25 October. 

In the Council, although Member States share the objectives of the Commission’s 
proposal they are reluctant to accept many key proposals translating these 
objectives into actionable rules and regulatory principles. Notably on spectrum 
where the text significantly dilutes the most important pro-investments proposals 
(on fixed license durations, reserve prices, the systematic peer review of national 
assignments by the Body of European Regulators for Electronic Communications 
and the possibility for the Commission to adopt implementing measures in several 
spectrum management areas, including setting common deadlines for assigning 
a harmonised spectrum).

This trend deeply worries the telecoms industry, which needs a pro-investments 
framework to invest massively in 5G.

On 13 September 2017, the Commission proposed a wide-ranging set of measures 
to build strong cybersecurity in the European Union. These include the 
strengthening of the EU Agency for Network and Information Security; the set-up of 
a European framework for cybersecurity certification; a Recommendation to develop 
coordinated response to large-scale cybersecurity incidents and crises; and looking 
ahead to a proposal in 2018 for a network of cybersecurity competence centres 
with a European Cybersecurity Research and Competence Centre to stimulate 
development and deployment of technology in cybersecurity.

The full implementation of the first cybersecurity EU law, the Directive on 
Security of networks and information systems by May 2018, by all Member States 
will be a first step in scaling up Europe’s response to cyberthreats and attacks. The 
September cybersecurity package includes a Communication with a set of steps 
aimed at helping Member States to implement the Directive and make the most 
of it.

Combating terrorism and online crime:  
efforts to this effect should be intensified as set 
out by the European Council in its June 2017 
conclusions. The European Council welcomes the 
Commission’s communication on Tackling Illegal 
Content Online and reiterates its readiness to 
support appropriate  measures at EU level, if 
necessary.

On 28 September 2017, the Commission adopted a Communication on Tackling 
Illegal Content Online — Towards an enhanced responsibility of online platforms. 
In its conclusions, it stated that the Commission, while continuing exchanges and 
dialogues with online platforms and other relevant stakeholders, will monitor 
progress on the use of the guidelines. It also announced that it would assess 
whether additional measures are needed in order to ensure the swift and proactive 
detection and removal of illegal content online, including possible legislative 
measures to complement the existing regulatory framework. This work will be 
completed by May 2018.

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EUROPEAN COUNCIL CONCLUSIONS 
(19 OCTOBER 2017), PARAGRAPH 11

CURRENT STATE OF PLAY 

Labour markets, training and education 
systems fit for the digital age:  
there is a need to invest in digital skills, to empower 
and enable all Europeans.

On 10 June 2016, the Commission adopted a New Skills Agenda for Europe where 
it asked all Member States to develop national digital skills strategies by mid 2017 
and to set up national coalitions to support their implementation and train people in 
digital skills.

16 Member States have developed national digital skills strategies.

17 Member States have set up national digital skills and jobs coalition to train their 
workforce in digital skills.

Support for digital is spread across a wide range of programmes: the Framework 
Programme for Research and Innovation (Horizon 2020, EUR 13 billion); the 
Connecting Europe Facility (EUR 1 billion); and the Creative Europe Programme 
(EUR 1 billion). Around EUR 17 billion were invested in digital in the European 
Regional Development Fund. EUR 2.3 billion are planned to be invested in digital 
skills under the European Social Fund by 2020.

In Horizon 2020, we plan to spend around EUR 6.3 billion on Information and 
Communications Technologies over the next 3 years. EUR 1.7 billion is dedicated to 
digitalising and transforming European industry and services, including investments 
in Digital Innovation Hubs. These hubs will be implanted locally in every Member 
State and will help companies, especially small and medium-sized enterprises, to 
test and adopt digital technologies. We will spend around EUR 100 million per year 
on the hubs.

Digital projects account for around 10 % of investments under the European Fund 
for Strategic Investments (EFSI) plan so far. Around EUR 24 billion in investment 
is set to be triggered in the digital sector thanks to EFSI support.

On 21 September, the Commission adopted a Communication on a Fair and 
Efficient Tax System in the European Union for the Digital Single Market. 
In its conclusion, it stated that the Commission will continue to analyse the policy 
options and consult with relevant stakeholders and industry representatives on this 
important and pressing issue ahead of a possible proposal by spring 2018.

A determined R&D and investment effort: 
to support new forms of entrepreneurship, and 
stimulate and assist the digital transformation of 
industries and services. EU instruments such as 
the EU Framework Programmes, including Horizon 
2020, the European Structural and Investment Funds 
and the European Fund for Strategic Investments 
can help achieve this objective. The EU should also 
explore ways to set up the appropriate structures 
and funding to support breakthrough innovation.

An effective and fair taxation system fit for 
the digital era:  
it is important to ensure that all companies pay 
their fair share of taxes and to ensure a global 
level-playing field in line with the work currently 
underway at the OECD. The European Council invites 
the Council to speedily pursue its examination of the 
Commission communication on this issue and looks 
forward to appropriate Commission proposals by 
early 2018.

ISBN: 978-92-79-73996-5
doi:10.2775/172271