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# 52012DC0784

**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 /\* COM/2012/0784 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)

TABLE OF CONTENTS

1........... Introduction.................................................................................................................... 3

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

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

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

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

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

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

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

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

10......... Conclusion................................................................................................................... 12

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 2020[1]. 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 Japan[4]. China is connecting 34 million households this year alone[5]. 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 target[6].

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 2015[8].

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 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 innovation enabled
through the deployment of interoperable ICT and a better exchange and use of
information;

·
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;

·
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 innovative web-based ventures.
Increase digital literacy and the proliferation of digital skills, to fill the
gap between demand and supply of ICT professionals;

·
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
economy[10]. Furthermore, this should create 1.2 million jobs in infrastructure
construction[11] in the short term, rising to 3.8 million jobs throughout the
economy in the long term[12]. 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 information[14], the European Common Sales Law[15],
online dispute resolution[16],
data protection[17],
electronic identification and eSignatures[18],
and collective rights management[19].
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 Plan[20], the Green Paper on Internet, Card and Mobile Payments[21], and the European Consumer Agenda[22].
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 Directive[23].

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 2016[24], 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 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 year[25] 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 2020[26]
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 Ageing[27] 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 market[28].

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 administration[29]. 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.

·
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 GDP[30] 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 speeds[31].

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 II[32], 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 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 Funds[34] 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 spectrum[35].
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 Strategy[36] 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.

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

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 payments[37].

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 internet[38].

The European strategy for a better internet
for children[39] 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.

·
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
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 many fields. Only then can
the vision of repeating industrial successes such as the Airbus project in
other areas, for example in semiconductors[40],
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 computing[41], Factories of the Future[42], the Future Internet PPP[43]
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
Cars[44] and Energy Efficient Buildings[45].

Following the horizontal Communication on
KETs[46], 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 level[47]
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 Union[50].
In line with the recent 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 COMPACT[51] 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 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.

[1]               The
Internet of Things, Cisco 2011

[2]               Ericsson
Mobility Report, 2011

[3]               eSkills
Monitor study, European Commission 2009

[4]               FTTH
Council global ranking 2012

[5]               As part the "broadband
China" project.

[6]               European
Commission (2012PREDICT 2012 - An Analysis of ICT R&D - EU & beyond

[7]               COM(2010)
245/2.

[8]               European
Council conclusions of 28/29 June 2012 (the "Compact for Growth and
Jobs") and conclusions
of 1/2 March 2012.

[9]               Cf. SEC (2012)180.

[10]             "Capturing
the ICT dividend", Oxford Economics Research, 2011.

[11]             The
Impact of Broadband on the Economy: Research to Date and Policy Issues (ITU
April 2012)

[12]             "Quantitative
estimates of the demand for cloud computing in Europe and the likely barriers
to take-up", IDC 2012

[13]             COM(2011)
942.

[14]             COM(2011) 877.

[15]             COM(2011) 636.

[16]             COM(2011) 794.

[17]             COM(2012) 09.

[18]             COM(2012) 238.

[19]             COM(2012) 372.

[20]             COM(2011) 942.

[21]             COM(2011) 941.

[22]             COM(2012) 225.

[23]             Directive
2011/83/EU.

[24]             http://www.informatandm.com/wp-content/uploads/2012/02/ITM-CES-Connected-TV-White-Paper.pdf

[25]             COM(2012) 179.

[26]             COM(2012) 736.

[27]             COM(2012) 83.

[28]             COM(2012) 4701.

[29]             COM(2012)
750.

[30]             Czernich et al. (2009), Broadband
Infrastructure and Economic Growth

[31]             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.

[32]             COM(2012) 573.

[33]             COM(2011) 676.

[34]             COM (2011) 615/2.

[35]             Decision
243/2012/EU.

[36]             COM(2012) 529.

[37]             Special
Eurobarometer 390, 'Cyber security'.

[38]             http://ec.europa.eu/internal\_market/iprenforcement/stakeholders/index\_en.htm

[39]             COM(2012)
196.

[40]             “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.

[41]             COM(2012) 45

[42]             ec.europa.eu/information\_society/tl/ecowor/manuf/index\_en.htm

[43]             http://www.future-internet.eu/home/future-internet-ppp.html

[44]             www.green-cars-initiative.eu

[45]             www.e2b-ei.eu

[46]             COM(2012)
341.

[47]             Comprising at least the areas currently served by the
Joint Undertakings ENIAC (http://www.eniac.eu/) and ARTEMIS (http://www.artemis-ju.eu/).

[48]             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.

[49]             http://ec.europa.eu/europe2020/making-it-happen/index\_en.htm

[50]             COM(2010)
573.

[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&language=EN&guiLanguage=en

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