Background:  

The new Commission portfolio on the Digital Agenda operates under the aegis of Commissioner Neelie Kroes and also involves Commissioner for Internal & Services, Michel Barnier, and the Commissioner for Research, Innovation and Science, Máire Geogeghan-Quinn.

Many of the issues addressed in the Digital Agenda – such as Next Generation Broadband, effective use of e-Government, and the role of innovation – resonate with the Irish government’s Smart Economy Strategy.  The report identifies seven key objectives: A single digital market, interoperability and common standards, trust and security, fast internet access, research and innovation, enhancing digital literacy skills and ICT-enabled benefits for society. It concludes with a section on implementation and governance.

Issues:

The main problem associated with creating a Single Digital Market is that Europe is still a patchwork of fragmented national online markets. To counteract this, Member States will have to: facilitate access to content, reform cross-border online transactions, build trust in online methods of payment by EU trademarks and improve telecoms harmonisation.

Access to Content

The key action in this area is to simplify copyright clearance, management and cross-border licensing to facilitate the digital single market. 

- a framework directive on collective rights management by 2010, which will enhance the governance, transparency and pan-European licensing of online rights management.

- a report in 2012 to include measures to promote pan-European licenses.

Online and Cross-Border Transactions

Although Europe has a common currency, it does not have a single market for electronic payments. Cross-border online transactions are complicated by technical and legal snags, such as the refusal of non-domestic credit cards.

Two key actions designed to facilitate cross-border transactions are proposed. The first is to complete the Single Euro Payment Area (SEPA) with binding legal measures; Member States will also be encouraged to implement swiftly the key directives supporting the digital single market and to transpose by 2013 the VAT Directive.[1] The second key action is a proposed revision of the eSignature Directive in order to create an EU-wide secure e-Authentication system.

Building Digital Confidence

A lack of trust in online transactions is restricting the development of Europe’s online market. Among the top reasons why consumers did not shop online in 2009 were concerns about payment security, privacy, trust and the lack of clearly articulated consumer rights. 

The key actions in this area will be a review by 2010 of the EU data protection regulatory framework, with the intention of strengthening individuals’ rights and confidence, a Green paper by 2011 to proposal an EU-wide online dispute resolution system by 2012, a code of EU online rights to summarise existing digital rights in the EU in an easily accessible way by 2012 and the creation of EU online trustmarks by 2012, primarily for retail websites.

Reinforcing the Single Market for Telecoms

Europe’s telecom market is partitioned on a Member State basis, with different numbering, licensing and spectrum assignment policies in each member state.

The Commission proposes to coordinate the technical and regulatory conditions applying to spectrum and, where necessary, harmonise spectrum bands to create economies of scale Europe-wide.

Interoperability and Standards 

Interoperability refers to the ability of an IT product or service to work with other IT products and services. However, the key action required for interoperability is the creation of common standards and rules relating to ICT.

To promote interoperability within the EU the Commission plans to issue a Communication in 2011 to Member State governments to provide guidance on the link between ICT standardisation in public procurement to help public authorities promote efficiency and avoid being locked in at national level.

Trust and Security 

Trust and security are central to user interaction online. While the internet is generally secure and stable, a wide range of evolving threats still exist including Spam emails, viruses and malicious software, identity theft, online fraud and nationwide cyber attacks. 

The key action in this area will be to enhance information security policy, including legislative initiatives allowing faster reactions in the event of cyber attacks against information systems.

The establishment of a European cybercrime platform by 2012, an examination of the feasibility of a European cybercrime centre by 2011 and support for EU-wide cyber security preparedness exercises from 2010 will supplement these measures.

Fast and Ultra Fast Internet Access

The report argues that Next Generation Broadband (100 Mbps+) is essential for continued growth and job creation in a network-based knowledge economy with the internet at its centre. At present, Europe is falling behind its competitors in roll-out of Next Generation Broadband with fibre-to-the-home (FTTH) at only 1% penetration in the EU, compared to 12% in Japan and 15% in South Korea. Europe also faces the problem of a “digital divide” if the situation is not remedied.

The key action in this area for the Commission will be a Broadband Communication in 2010 that lays the framework for the EU to reach the EU2020 Broadband targets, including a re-structuring of EU funding instruments to fund high-speed broadband by 2010, a European Spectrum policy programme and regulatory measures to encourage investment and risk sharing in competitive Next Generation Broadband.

In turn, Member States are invited to develop or make operational national broadband plans by 2012 that meet the coverage, speed and uptake criteria defined in the EU2020 rules. They are also invited to map the current passive infrastructure and upgrade in-building wiring regulations.

Research and Innovation

Europe continues to under-invest in R&D relating to ICT compared to major competitors such as the United States. R&D in ICT in Europe is only 17% of total R&D spend, compared to 29% in the United States. In absolute terms this represents €37 billion in the EU compared to €88 billion in the United States (2007). The EU public sector spends less than the levels of competing economies.

The key action in this area is an attempt to leverage more private investment through the strategic use of pre-commerical procurement and public-private partnerships using structural funds for research and innovation.

In addition to these proposals, the Commission will propose measures for “light and fast” access to EU research funds in ICT, making them more attractive to young researchers and SMEs.

Member States are encouraged to engage in large scale pilot tests to maximise the potential of ICT in solving societal issues and encourage uptake of ICT innovation in the private sector.

Enhancing Digital Literacy, Skills and Inclusion

Enhancing the digital literacy of the 30% of Europe’s population who have never used the Internet because they lack the necessary skills is an objective of the Digital Agenda in the social area. Groups such as the elderly, low income earners, the unemployed and the less educated lack digital competence. This is one of the eight key competences which are essential for individuals seeking employment in a knowledge-based society. Furthermore, Europe faces a shortage in the supply of ICT experts, which are required for the future economy.

 The key actions for the EU in this area are to prioritise digital literacy in the European Social Fund regulation (2014-2010), to establish an ICT aspect to the European Qualifications Framework to assist in the mobility of ICT practitioners across Europe, and to develop EU-wide indicators of digital competences and media literacy by 2013. 

Member States in turn should, by 2011, implement long-term e-skills and digital literacy policies, implement the provisions on disability in the Telecoms Framework and ensure that eLearning in their education systems is part of the mainstream.

ICT-Enabled Benefits for EU Society

The Agenda states that the digital society must not focus entirely on encouraging ICT use in the private sector, but also on utilising ICT potential in delivering policy objectives in dealing with the challenges of an ageing society, climate change, high energy consumption, transport and health care challenges.

For healthcare, two key actions are envisaged. By 2013 the Commission intends to launch a pilot programme to ensure that by 2015 all Europeans have access to their medical health data online and to produce by 2012 a recommendation defining a minimum common set of patient data for interoperability of patient records across Member States.

The issue of eGovernment also receives considerable focus in this Agenda. The Commission is focused on increasing interoperability between eGovernment systems across different Member States. A key action is to propose by 2012 a Council and Parliament Decision to ensure that there is mutual recognition of e-identifcation and e-authentification systems. This will be supplemented by measures to encourage cross-border eEnvironment services, a white paper by 2011 on inter-connection of eProcurement and the creation of an eCommission 2011-2015 action plan, in order to lead the way on open and transparent eGovernment. Finally it encourages Member States to agree by 2011 on a common list of key cross-border public services designed to facilitate entrepreneurs setting up and businesses across Europe, which would be in place by 2015. 

Finally the issue of Intelligent Transport Systems will be addressed by encouraging interoperability and rapid standardisation between road networks, facilitating the implementation of the Single European Sky, and improving rail networks by setting standards for passenger services.

Outstanding Issues: 

Overall the report on the Digital Agenda was well received.

One issue which dogged the report from its inception and continues to be debated is the issue of copyright and intellectual property. Commissioner Barnier is an advocate of tougher clampdowns on copyright violations. In earlier drafts which were leaked to the press, the wording on possible new laws to fight copyright violations was significantly stronger, which suggests that they are not a priority for Commissioner Kroes. This decision has resulted in harsh criticism from industry sources.

Another issue is the Spectrum Policy Programme which will be required to effectively harmonise spectrum across the EU. It will require Council and Parliament approval which will be difficult to obtain. Other recommendations, such as the proposed regulation surrounding Next Generation Broadband, will only be recommendations to national regulators, which will not be obliged to implement them.

While these recommendations are likely to have a significant impact on the development of Next Generation Broadband, the inclusion of the possibility of EU structural fund provision in the roll-out of Next Generation Broadband may assist the EU in achieving the EU2020 goal. However, by the time these funds come into place in 2014, it is likely that they will be utilised primarily by countries which are already lagging behind in developing Next Generation Broadband.

Telecoms policy is likely to remain an issue that will be determined by national governments and their respective policies rather than the European Agenda. As telecoms infrastructure underpins the entire digital economy, this is likely to be an issue not easily resolved.

R&D investment and eSkills are likely to suffer similarly as being issues which primarily relate to national competences. While the proposals on these issues will no doubt facilitate progress in these areas, national government policies are likely to play a greater role. 

The most important role that the European Commission can play in this area however is in leading by example. Many European countries have not yet taken action in the areas prioritised by the Digital Agenda. By producing yearly reviews of the various socio-economic performance indicators, the EU can use the power of comparison to encourage national governments to act. It can also utilise the various tools at the Commission’s disposal, such as FP7, to achieve the Digital Agenda, and continue to increase its percentage spend on ICT R&D. The Commission will also attempt to lead the way in eGovernment services, setting examples for national governments to follow.

A key indicator of the expected results of these policy programmes can be seen by the proposed implementation system, which will include a progress chart on the Digital Agenda. As part of this it will include socio-economic developments on key performance indicators (comparing EU Member States) relating to the issues in the Digital Agenda, with the EU2020 goal listed below.