EUROPEAN

COMMISSION

Brussels, 9.3.2021
COM(2021) 118 final

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF THE REGIONS

2030 Digital Compass: the European way for the Digital Decade

EN EN
 1. JOINING FORCES: DIGITAL TRANSFORMATION FOR EUROPE’S RESILIENCE
In just a year, the COVID-19 pandemic has radically changed the role and perception of
digitalisation in our societies and economies, and accelerated its pace. Digital technologies are
now imperative for working, learning, entertaining, socialising, shopping and accessing
everything from health services to culture. It has also shown the decisive role that disruptive
innovation can play1. The pandemic has also exposed the vulnerabilities of our digital space,
its dependencies on non-European technologies, and the impact of disinformation on our
democratic societies.
In the light of these challenges, our stated ambition is more relevant than ever: to pursue
digital policies that empower people and businesses to seize a human centred, sustainable and
more prosperous digital future.
Europe will have to build on its strengths – an open and competitive single market, strong
rules embedding European values, being an assertive player in fair and rule-based
international trade, its solid industrial base, highly-skilled citizens and a robust civil society.
At the same time, it needs to carefully assess and address any strategic weaknesses,
vulnerabilities and high-risk dependencies which put at risk the attainment of its ambitions
and will need to accelerate associated investment2.
That is the way for Europe to be digitally sovereign in an interconnected world by building
and deploying technological capabilities in a way that empowers people and businesses to
seize the potential of the digital transformation, and helps build a healthier and greener
society.3
In the State of the Union Address in September 2020, President von der Leyen announced that
Europe should secure digital sovereignty with a common vision of the EU in 2030, based on
clear goals and principles. The President put special emphasis on a European Cloud,
leadership in ethical artificial intelligence, a secure digital identity for all, and vastly improved
data, supercomputer and connectivity infrastructures. In response, the European Council
invited the Commission to present a comprehensive Digital Compass by March 2021, setting
out digital ambitions for 2030, establishing a monitoring system and outlining key milestones
and the means of achieving these ambitions.
This political impetus calls for an intensification of the work begun in the past decade to
accelerate Europe’s digital transformation – building on progress towards a fully functioning

1
The development of entirely new types of vaccines (e.g. Moderna, BioNTech) has highlighted to the wide
public the benefits of disruptive innovation enabling to develop vaccines in less than a year, with
efficiency and by following a method which was never implemented so far, as well as the importance of
mastering these technologies.
2
Analysis made by Commission services for the recovery estimated at €125 billion per year the needs for
ICT investment and skills to close the gap with leading competitors in the US and China. The European
Investment Bank has flagged the risk that instead of increasing their investments, 45% of firms would
reduce them after the COVID-19 crisis.
3 This Communication is part of a set of actions to strengthen the EU’s open strategic autonomy and
resilience. These include inter alia the Communication on fostering openness, strength and resilience of
the European economic and financial system, the Trade Policy Review, and the upcoming updated
industrial strategy for Europe and the 2021 Strategic Foresight Report.

1
Digital Single Market4, and intensifying actions defined in the strategy for Shaping Europe’s
digital future5. The strategy set out a programme of policy reform6, which have started already
with the Data Governance Act, the Digital Services Act, the Digital Markets Act and the
Cybersecurity Strategy. A number of Union budget instruments will support the investments
necessary for the digital transition, including the Cohesion programmes, the Technical
Support Instrument, and the Digital Europe Programme. The agreement by the co-legislators
that a minimum of 20% of the Recovery and Resilience Facility should support the digital
transition and will help underpin this reform agenda, with funding to build Europe’s Digital
Decade on solid foundations.

2. THE VISION FOR 2030: EMPOWERED CITIZENS AND BUSINESSES

The European way to a digitalised economy and society is about solidarity, prosperity, and
sustainability, anchored in empowerment of its citizens and businesses, ensuring the security
and resilience of its digital ecosystem and supply chains.
One of the key lessons of the pandemic is that digitalisation can bring people together
independently of where they are physically located. Digital infrastructure and rapid
connectivity bring people new opportunities. Digitalisation can become a decisive enabler of
rights and freedoms, allowing people to reach out beyond specific territories, social positions
or community groups, and opening new possibilities to learn, have fun, work, explore and
fulfil one’s ambitions. This will enable a society where geographical distance matters less,
because people can work, learn, interact with public administrations, manage their finance and
payments, make use of health care systems, automated transport systems, participate to
democratic life, be entertained or meet and discuss with people anywhere in the EU, including
in rural and remote areas.
However, the crisis also exposed the vulnerabilities of our digital space, its increased
dependency on critical, often non-EU based, technologies, highlighted the reliance on a few
big tech companies, saw a rise in an influx of counterfeit products and cyber theft, and
magnified the impact of disinformation on our democratic societies. A new digital divide has
also emerged, not only between well-connected urban areas and rural and remote territories,
but also between those who can fully benefit from an enriched, accessible and secure digital
space with a full range of services, and those who cannot. A similar divide emerged between
those businesses already able to leverage the full potential of digital environment and those
not yet fully digitalised. In this sense, the COVID-19 pandemic has exposed a new ”digital
poverty”, making it imperative to ensure that all citizens and businesses in Europe can
leverage the digital transformation for a better and more prosperous life. The European vision
for 2030 is a digital society where no-one is left behind.
Digitally enabled health solutions
The COVID-19 pandemic has shown the potential and paved the way for generalised use of innovative
telemedicine, remote care and robotics solutions for protecting medical staff and helping patients
being remotely cared for at their home. Digital technologies can empower citizens to monitor their

4
A Digital Single Market Strategy for Europe, 6 May 2015. Out of 30 legislative proposals, 28 were agreed
by the co-legislature.
5
Shaping Europe’s digital future, 19 February 2020.
6
Eight legislative and three non- legislative proposals including this Communication are scheduled to be
adopted in 2021. See: European Commission Work Programme 2020.

2
health status, adapt their lifestyles, support independent living, prevent non-communicable diseases,
and bring efficiency to health and care providers and health systems. Coupled with adequate digital
skills, citizens will be using tools that help them to continue active professional life as they age, and
health professionals and carers will be able to reap the full benefits of digitally enabled health
solutions to monitor and treat their patients.
Digitalisation endows people with new sources of prosperity7, allowing entrepreneurs to
innovate, set up and grow their business wherever they live, opening markets and investments
across Europe and globally, and creating new jobs at a time when an increasing number of
Europeans feel threatened in their economic security or environment.
Digital technologies can significantly contribute to the achievement of the European Green
Deal objectives. The uptake of digital solutions and the use of data will help in the transition
to a climate neutral, circular and more resilient economy. The substitution of business travel
by videoconferencing reduces emissions while digital technologies allow greener processes in
agriculture, energy, buildings, industry or city planning and services, thus contributing to
Europe’s proposed goal to reduce greenhouse gas emissions by at least 55% by 2030 and a
better protection of our environment. Digital infrastructures and technologies themselves will
have to become more sustainable and energy and resource efficient. With innovation and
ambitious eco-standards, businesses, in their digital transformation, will be able to adopt
digital technologies with lower environmental footprint and higher energy and material
efficiency.
Digitally enabled green solutions – Digital Product Passport
Transition to a sustainable economy requires smarter management of product-related data across the
product lifecycle. Most of this information exists, but is not available to those that could use it best.
Digital technologies provide the possibility to tag, trace, localise and share product related data along
value chains, down to the level of the individual components and materials. Starting with batteries for
electric vehicles and industrial applications, the European digital product passport (as part of the
Sustainable Products Initiative) will improve information available to business, boost resource
efficiency and empower consumers to make sustain able choices.
Resilient, secure and trustworthy infrastructures and technologies are indispensable to ensure
the respect of European rules and values. A strong single market, fair competition and a
functioning rules-based trade are critical assets for the EU’s economic success and resilience.
At the same time, digital technologies are mostly developed outside the EU8 and the
convergence across Member States on digitalisation remains limited, hampering economies of
scale9. The EU will be a stronger international partner thanks to reinforced internal strengths
and capacities. A massive scale-up of investments, through all relevant EU funds and national
spending, is necessary, including leveraging significant private investments, to allow the EU

7
Driving the Digital Economy and Society Index (DESI) score to 90 by 2027, would result in a GDP
increase per capita of 7,2% across the EU. Deloitte, February 2021, “Digitalisation: an opportunity for
Europe”.
8
The position of European players is far below the EU’s global economic weight in key technology areas
like processors, web platforms and cloud infrastructure, for example 90% of the EU’s data are managed
by US companies, less than 4% of the top online platforms are European, European made microchips
represent less than 10 % of the European market.
9
DESI shows that the majority of EU countries, which are below the EU average in the level of
digitisation, have not progressed much in the last five years. https://ec.europa.eu/digital-single-
market/en/digital-economy-and-society-index-desi

3
to develop critical technologies in a way that fosters its productivity growth and economic
development in full coherence with its societal values and objectives.

3. FOUR CARDINAL POINTS FOR MAPPING THE EU’S TRAJECTORY

The Commission proposes to set up a Digital Compass to translate the EUʼs digital ambitions
for 2030 into concrete targets and to ensure that these objectives will be met. The Compass
will be based on an enhanced monitoring system10, to follow the EU’s trajectory regarding the
pace of a digital transformation, gaps in European strategic digital capacities as well as the
implementation of digital principles. It will include the means to deliver the vision and set out
key milestones along four cardinal points. The first two are focused on digital capacities in
infrastructures and education & skills, and the two other are focused on digital transformation
of business and public services.

3.1 A digitally skilled population and highly skilled digital professionals

In the world of tomorrow, if we want to be the master of our own destiny, confident in our
means, value and choices, we must rely on digitally empowered and capable citizens, a
digitally skilled workforce and way more digital experts than today. This should be fostered
by the development of a high-performing digital education ecosystem, as well as by an
effective policy to promote links with and attract talent from all over the globe.
Digital skills will be essential to reinforce our collective resilience as a society. Basic digital
skills for all citizens and the opportunity to acquire new specialised digital skills for the
workforce are a prerequisite to participate actively in the Digital Decade, as explained in the
European Skills Agenda11.
The European Pillar of Social Rights Action Plan projects the target for adults with at least
basic digital skills to 80% in 2030.12 To allow all Europeans to fully benefit from the welfare
brought by an inclusive digital society, , and as proposed in the chapter on digital principles
(Section 4), access to education allowing the acquisition of basic digital skills should be a
right for all EU citizens and lifelong learning should become a reality.
Broad-based digital skills should also build a society which can trust digital products and
online services, identify disinformation and fraud attempts, protect itself against cyberattacks,
scams and fraud online, and in which children learn how to understand and navigate through
the myriad of information they are exposed to online.
Advanced digital skills require more than mastering coding or having a basis of computing
sciences. Digital training and education should support a workforce in which people can
acquire specialised digital skills to get quality jobs and rewarding careers. As of 2019, there
were 7.8 million ICT specialists with a prior annual growth rate of 4.2%. If this trend
continues, the EU will be far below the projected need of 20 million experts e.g. for key areas,
such as cybersecurity or data analysis. More than 70% of businesses report a lack of staff with
adequate digital skills as an obstacle to investment. There is also a severe gender imbalance

10
Based on DESI monitoring system set up by the Commission since 2014. The 2020 Strategic Foresight
Report announces finalisation of resilience dashboards, including one for the digital dimension, which
will provide complementary insights on EU’s digital vulnerabilities and capacities.
11
European Skills Agenda and Digital Education Action Plan.
12
The European Pillar of Social Rights Action Plan COM (2021) 102. Adopted on 3 March 2021.

4
with only one in six ICT specialists and one in three STEM graduates being women13. This is
compounded by a lack of capacity in terms of specialised education and training programs in
areas such as Artificial Intelligence, quantum and cybersecurity and by a low integration of
digital subjects and educational multimedia tools in other disciplines. Addressing this
challenge requires massive investment to train future generations of workers and to up-skill
and re-skill the workforce.
Actions at home should be complemented by support to enhance digital literacy globally, to
achieve the UN Sustainable Development Goals (SDGs). The Erasmus+ programme will also
provide opportunities for third country digital engineers and specialists and generally increase
digital learning environments. In Africa, national digital skills and jobs coalitions could
develop common digital skills curricula and support governments with expertise and projects
to bring schools and education institutions to the digital age. Likewise, digital skills and
literacy are becoming a central element in digital capacity building in our relations with the
Latin American and Caribbean region.
Going towards 2030, the global competition for talent will be fierce, as expertise will remain
scarce and be a critical factor of innovation, productivity growth and prosperity for all
countries. The fostering of the EU’s attractiveness as well as support schemes for digital talent
will play a key role in EU’s digital transformation.
It is our proposed level of ambition that by 2030:
- In addition to the target on basic digital skills established in the European Pillar of
Social Rights Action Plan, there are 20 million employed ICT specialists in the EU,
with convergence between women and men.

3.2 Secure and performant sustainable digital infrastructures

Europe will only achieve digital leadership by building it on a sustainable digital
infrastructure regarding connectivity, microelectronics and the ability to process vast data
as they act as enablers for other technological developments and support our industry's
competitive edge. Significant investments need to be made in all of these areas that require
coordination to achieve European scale.
Excellent and secure connectivity for everybody and everywhere in Europe is a prerequisite
for a society in which every business and citizen can fully participate. Achieving gigabit
connectivity by 2030 is key. Although this ambition can be reached with any technology mix,
the focus should be on the more sustainable next generation fixed, mobile and satellite
connectivity, with Very High Capacity Networks including 5G being rolled out, based on
swift and efficient allocation of spectrum and respect of the 5G cybersecurity toolbox 14, and
with 6G being developed in the years to come15.

13
See the Women in Digital Scoreboard 2020: https://ec.europa.eu/digital-single-market/en/news/women-
digital-scoreboard-2020.
14
The Commission will ensure that participation in EU funding programmes in relevant technology
domains will be conditional on compliance with security requirements specified in the respective EU
programmes, including EU’s external funding programmes and financial instruments, and is aligned with
the approach in the EU toolbox on Cybersecurity for 5G networks. .
15
To contribute to this objective, the Commission adopted a proposal to launch a Joint Undertaking on
Smart Networks and Services to coordinate research and innovation activities on 6G technology under

5
As the decade progresses, households will increase the take up of such network technologies
reflecting their rising needs for very high capacity connectivity. By the end of this decade,
new digital communications features and capabilities such as high-precision, holographic
media, and digital-senses over the networks, are expected to provide a whole new perspective
to a digitally enabled society underpinning the need for gigabit connectivity. Well before the
end of the decade, businesses will need dedicated Gigabit connections and data infrastructures
for cloud computing and data processing, in the same way as schools and hospitals will need
this for eEducation and eHealth. High performance computing (HPC) will require terabit
connections to allow real-time data processing.
It is our proposed level of ambition that by 2030
All European households will be covered by a Gigabit network, with all populated areas
covered by 5G16.
Europe’s digital leadership and global competitiveness depend on strong internal and external
connectivity and should also inform our international engagement, in particular along the
European time zones, and taking account the emergence of data gateways around EU
periphery. The EU has a comprehensive program of engagement including Broadband rollout
with partners in the Western Balkans and Eastern Partnership. Europe will be linked to its
partners in the Neighborhood and Africa, including via terrestrial and submarine cables and a
secure constellation of satellites. In addition, the EU will step up implementation of the EU-
Asia Connectivity Strategy via new Connectivity Partnerships with India and ASEAN. Digital
Partnership with Latin America & the Caribbean will complement the launch of connectivity
component of the Digital Alliance with Latin America & the Caribbean, building on the
BELLA Cable.
If connectivity is a precondition for digital transformation, microprocessors are at the start of
most of the key, strategic value chains such as connected cars, phones, Internet of Things,
high performance computers, edge computers and Artificial Intelligence. While Europe
designs and manufactures high-end chips, there are important gaps, notably in state-of-the-art
fabrication technologies and in chip design, exposing Europe to a number of vulnerabilities.17
It is our proposed level of ambition that by 2030
The production of cutting-edge and sustainable semiconductors in Europe including
processors is at least 20% of world production in value (meaning manufacturing capacities
below 5nm nodes aiming at 2nm and 10 times more energy efficient than today)18.

Horizon Europe as well as 5G deployment initiatives under the Connecting Europe Facility Digital and
other programs. https://ec.europa.eu/digital-single-market/en/news/europe-puts-forward-proposal-joint-
undertaking-smart-networks-and-services-towards-6g
16
This ambition continues on the track proposed by the 2016 Commission Communication ‘Connectivity
for a Competitive Digital Single Market – Towards a European Gigabit society’ and the 2025 targets set
therein.
17
To contribute to this objective, the Commission adopted a proposal to launch a Joint Undertaking on Key
Digital Technologies to coordinate research and innovation activities on semiconductor and processor
technologies under Horizon Europe and has launched a European alliance on microprocessors.
18
The smaller the technology node means the smaller the feature size, producing smaller transistors which
are faster and more efficient.

6
A digital infrastructure serving citizens, SMEs, the public sector and large companies require
high performance computing and comprehensive data infrastructures. Today, data produced in
Europe is generally stored and processed outside Europe, and its value is also extracted
outside Europe19. While businesses generating and exploiting data should retain free choice in
this regard, this can bring risks in terms of cybersecurity, supply vulnerabilities, switching
possibilities as well as unlawful access to data by third countries. 20 EU-based cloud providers
have only a small share of the cloud market, which leaves the EU exposed to such risks and
limits the investment potential for the European digital industry in the data processing market.
Also, given the impact of data centers and cloud infrastructures on energy consumption, the
EU should take the lead in making these infrastructures climate neutral and energy efficient
by 2030, while using their excess energy to help heating our homes, businesses and common
public spaces. As part of the enhanced Digital Economy and Society Index (DESI), the
Commission will introduce mechanisms to measure the energy efficiency of data centers and
electronic communications networks used by European companies.
As highlighted in the European data strategy, the volume of data generated is greatly
increasing and a growing proportion of data is expected to be processed at the edge, closer to
the users and where data are generated. This shift will require the development and
deployment of fundamentally new data processing technologies encompassing the edge,
moving away from centralised cloud-based infrastructure models. To address these trends
towards increasing distribution and decentralization of data processing capacities, and to
overcome the gap of suitable cloud supply meeting the needs of European businesses and
public administration, Europe needs to strengthen its own cloud infrastructure and
capacities21.
Intelligent edge computing - applications
- To monitor dangerous intersections for an autonomous vehicle so that it can travel safely.
- In “Smart Farming” where the deployment of edge capacity connected to machinery in farms
will allow to collect agriculture data in real time, provide advanced services to farmers like
harvest prediction or farm management, and optimise food supply chains.
- In Manufacturing-as-a-service enabling manufacturing companies – notably SMEs – to have
local access to cloud-based innovative industrial services platforms, and market places to boost
the visibility of their production capacities.
- Health data and health records: this will allow to collect and aggregate health data at local level
much more quickly (e.g. in context of pandemic).
- In public sector modernization where edge deployment will provide data processing capacity for
local public administration.

It is our proposed level of ambition that by 2030

19
According to Eurostat’s data, while improved compared to 2018, only 36% of EU enterprises used cloud
services in 2020, mostly for simple services such as e-mail and storage of files (only 19% of enterprises
use advanced cloud services).
20
The EU is acting to mitigate such concerns through mutually beneficial international cooperation, such as
the proposed EU-U.S. Agreement to facilitate cross border access to electronic evidence, alleviating the
risk of conflict of laws and establishing clear safeguards for the data of EU citizens and companies.
21
The declaration on cloud federation and alliance will contribute to this objective.

7
- 10,000 climate neutral highly secure edge nodes22 are deployed in the EU, distributed in
a way that will guarantee access to data services with low latency (few milliseconds)
wherever businesses are located.
Yet, the cloud and edge ecosystem will not bring their full benefits to European businesses
and public administrations unless accompanied by state-of-art computing capacity. In this
regard, the cooperation with the Member States through the already established European
High Performance Computing Joint Undertaking will be accelerated to deploy a world
leading, federated supercomputing and quantum computing data infrastructure.
At the same time, the EU must invest in new quantum technologies. The EU should be at the
global cutting edge of developing quantum computers which are fully programmable and
accessible from everywhere in Europe while being highly energy efficient and which will be
able to solve in hours what is currently solved in hundreds of days, if not years.
The Quantum revolution in the next decade will be a game changer in the emergence and use of
digital technologies. Examples of possible applications include:
- Health: Quantum computers will enable faster and efficient development of medicines such as
simulating a human body (“digital twin”) to conduct virtual drug trials, develop personalised
cancer treatments; much faster genome sequencing etc.
- Increase security of communication and data transfers: Quantum secured communication
systems can safeguard sensitive communications, online voting systems, and financial
transactions, ensure the long-term storage of sensitive health and national security-related data,
and keep critical communication infrastructure safe.
- Better monitoring of resources: Quantum gravity sensors based on Earth or fitted to space-
borne satellites, will measure gravitational fields, making it possible to detect obstacles,
subsidence and water resources under the ground and monitor natural phenomena such as
volcanic activity.
- Business/environment: Quantum computers will optimise the use of algorithms to solve highly
complex logistical and scheduling problems, resulting in saving time and fuel or finding the
cheapest combination of renewable sources to supply an energy grid.

It is our proposed level of ambition that

By 2025, Europe will have its first computer with quantum acceleration paving the way for
Europe to be at the cutting edge of quantum capabilities by 2030.

3.3 Digital transformation of businesses

During the COVID-19 pandemic embracing digital technologies has become essential for
many businesses. By 2030, more than just enablers, digital technologies including 5G, the
Internet of Things, edge computing, Artificial Intelligence, robotics and augmented reality
will be at the core of new products, new manufacturing processes and new business models
based on fair sharing of data in the data economy. In this context, the swift adoption and
implementation of the Commission’s proposals for the Digital Single Market and Shaping

22
An edge node is a computer that acts as an end user portal (or “gateway”) for communication with other
nodes in cluster computing, where components of a software system are shared among multiple computers.

8
Europe’s digital future strategies23 will enhance the digital transformation of businesses and
ensure a fair and competitive digital economy. It will also need to be matched with a level
playing field abroad.
The transformation of businesses will depend on their ability to adopt new digital
technologies rapidly and across the board, including in industrial and services ecosystems that
are lagging behind. EU support, notably through the Single Market, Digital Europe and
Cohesion programmes, will promote the deployment and use of digital capabilities including
industrial data spaces, computing power, open standards, testing and experimentation
facilities.
Businesses should be encouraged to adopt digital technologies and products with lower
environmental footprint and higher energy and material efficiency. Digital technologies must
be rapidly deployed to enable a more intensive and efficient resource use. In this way,
boosting Europe’s material productivity will both reduce manufacturing input costs and our
vulnerability to supply shocks.
The potential of digital transformation for five key ecosystems24
- Manufacturing: thanks to 5G connectivity, devices in factories will be even more connected and
collect industrial data. Artificial Intelligence will instruct robots in real time, making them
increasingly collaborative, improving workers’ jobs, safety, productivity and wellbeing.
Manufacturers will be able to enhance predictive maintenance and produce on demand, based on
consumers’ needs, with zero stocks, thanks to digital twins, new materials and 3D printing.
- Health: introducing more online interaction, paperless services, electronic transmission and
access to data instead of paper records and automation could lead to benefits of up to € 120
billion per year in Europe.
- Construction: the lowest productivity development from all major sectors in the last 20 years.
70% of construction executives mentioned new production technologies and digitalisation as the
drivers of change in the sector.
- Agriculture: Digital farming technologies can enable the agricultural sector to produce more
tailored and efficiently, thus increasing the sector’s sustainability performance and
competitiveness. Agriculture has been identified as one key sector, where digital solutions can
help to cut global GHG emissions and pesticide use.
- Mobility: digital solutions for connected and automated mobility have great potential for reducing
traffic accidents, enhancing quality-of-life, and improving the efficiency of transportation systems,
including concerning their environmental footprint.
Specific attention should be given to cutting-edge and disruptive innovation. While Europe
is creating already as many start-ups as the US, it needs to create more favourable conditions
and a truly functioning Single Market for rapid growth and scale-up25. Europe has equipped
itself with various tools26, yet the investment gap for financing the growth of start-ups

23
For instance the EU’s Cybersecurity Strategy for the Digital Decade, Digital Services Act and Digital
Markets Act, the European Digital Identity, the Media and Audiovisual Action Plan, the European
Democracy Action Plan, the Digital Finance Strategy, the Data and AI strategies, Platform to Business
Regulation and Geo-blocking Regulation .
24
Source McKinsey report, Shaping the digital transformation in Europe, September 2020.
25
Europe's next leaders: the Start-up and Scale-up Initiative, COM/2016/0733 final.
26
A deepening of the EU’s Capital Markets Union, a strengthening of the mobilisation of private finance as
well as funding from Horizon Europe, the European Innovation Council and InvestEU will be important.

9
between the US and Europe and even between the EU and China is still considerable. The EU
has already produced a number of unicorns, but there is scope for improvement. The
development of a Startup Nations Standard of Excellence can contribute to facilitate growth
across borders, including increasing access to finance for scaling-up27.
SMEs have a central role in this transition, not only because they represent the bulk of the
EU companies, but also because they are a critical source of innovation28. With the support of
over 200 Digital Innovation Hubs and industrial clusters, by 2030, SMEs should have the
opportunity to access digital technologies or data easily and on fair terms, ensured by
appropriate regulation, and benefit from adequate support to digitalise. In this respect, more
than 200 European Digital Innovation Hubs and industrial clusters across the EU should
support digital transformation of both innovative and non-digital SMEs, and connect digital
suppliers to local ecosystems The objective is to achieve a high level of digital intensity,
leaving no-one behind. The Commission will update its Industrial Strategy, also with a view
to accelerating the digital transformation of the industrial ecosystems in support of the 2030
targets.
It is our proposed level of ambition that by 2030:
- 75% of European enterprises have taken up cloud computing services, big data and
Artificial Intelligence
- More than 90% of European SMEs reach at least a basic level of digital intensity29
- Europe will grow the pipeline of its innovative scale ups and improve their access to
finance, leading to doubling the number of unicorns30 in Europe.

3.4 Digitalisation of public services

By 2030, the EU’s objective is to ensure that democratic life and public services online will
be fully accessible for everyone, including persons with disabilities, and benefit from a best–
in-class digital environment providing for easy-to-use, efficient and personalised services and
tools with high security and privacy standards. Secured e-voting would encourage greater
public participation on democratic life. User-friendly services will allow citizens of all ages
and businesses of all sizes to influence the direction and outcomes of government activities
more efficiently and improve public services. Government as a Platform, as a new way of
building digital public services, will provide a holistic and easy access to public services with
a seamless interplay of advanced capabilities, such as data processing, AI and virtual reality.
It will also contribute to stimulating productivity gains by European business, thanks to more

27
https://ec.europa.eu/digital-single-market/en/startup-europe
28
An SME Strategy for a sustainable and digital Europe, COM/2020/103 final.
29
The Digital Intensity Index (DII) measures the use of different digital technologies at enterprise level. The
DII score (0-12) of an enterprise is determined by how many of the selected digital technologies it uses. A
basic level of digital intensity corresponds to a situation where an enterprise scores 4 or more.
30
By unicorns we understand here both: 1) realised unicorn, i.e. companies founded after 1990 that have
had an IPO or trade sale above $1 billion and 2) unrealised unicorn, i.e. companies that have been valued
at or over $1 billion in their last private venture funding round (meaning the valuation has not been
confirmed in a secondary transaction).

10
efficient services that are digital by default31 as well as a role model incentivising businesses,
in particular SMEs, towards greater digitalisation.
However, the gap to reach this vision is still significant. Despite the increasing use of public
services online, services provided digitally are often basic e.g. filling in forms. Europe must
harness digitalisation to drive a paradigm change in how citizens, public administrations and
democratic institutions interact, ensuring interoperability across all levels of government and
across public services32.
Telemedicine
During the pandemic telemedicine consultations grew more in one month than they did in 10
years, and this played a key role in keeping queues down at hospitals and maintaining
patients in good health33. The ability for European citizens to access, and control access to,
their electronic health records (EHR) across the EU should be greatly improved by 2030
based on common technical specifications for health data sharing, interoperability,
developing the secure infrastructure, as well as taking actions to facilitate the public
acceptability of sharing health information with the medical community.
European digital identity: the Government in the palm of your hand
By 2030, the EU framework should have led to wide deployment of a trusted, user-controlled
identity, allowing each citizen to control their own online interactions and presence. Users
can make a full use of online services easily and throughout the EU while preserving their
privacy.
EU communities are also developing smart data platforms integrating data across different
sectors and cities that improve the quality of everyday life for their citizens. Today, most of
the digital services these platforms offer are limited to basic services, such as smart parking,
smart lighting or public transportation telematics. Digitalisation also plays a key role in the
development of “Smart villages”, i.e. communities in rural areas that use innovative solutions
to improve their resilience, building on local strengths and opportunities.
Platforms in rural and urban communities will be powered by digital technologies and will
offer services such as multi-modal intelligent transport systems, rapid emergency assistance in
case of accidents, more targeted waste management solutions, traffic management, urban
planning, smart energy and lighting solutions, resource optimisation, and more. Using Green
Public Procurement criteria34 can boost demand for a green digital transformation

31
While public services will always be accessible in person, successful digital transformation will make
digital the preferred way for people to access them.
32
Cf. in particular the Berlin Declaration on Digital Society and Value-based Digital Government,
December 2020. The digitisation effort mandated by the EU Single Digital Gateway should be extended
to other sectors so that citizens and businesses can interact digitally will all parts of national
administrations.
33
In France, there were 10,000 teleconsultations per day in early March 2021 and this grew to 1 million per
day by the end of March – according to Digital Health Partnership.
34
https://ec.europa.eu/environment/gpp/eu_gpp_criteria_en.htm

11
The digital transformation should also enable modern and efficient justice systems35,
enforcement of consumer rights and an increased effectiveness of public action including law
enforcement and investigation capacities36 – what is illegal offline is also illegal online, and
law enforcement must be best equipped to deal with more and more sophisticated digital
crimes.
It is our proposed level of ambition that by 2030:
 100% online provision of key public services available for European citizens and
businesses
 100% of European citizens have access to medical records (e-records)
 80% of citizens will use a digital ID solution.

4. DIGITAL CITIZENSHIP
Deploying digital infrastructures, skills and capacities and digitising businesses and public
services alone is not sufficient to define the EU’s approach to its digital future; it is also
necessary to enable all Europeans to make full use of digital opportunities and technologies.
In the digital space, we need to make sure that the same rights that apply offline can be fully
exercised online.
To be fully empowered, people should first have access to affordable, secure and high quality
connectivity, be able to learn basic digital skills –which should become a right for all- and be
equipped with other means which together allow them to fully participate in economic and
societal activities of today and the future. They also need to have easy access to digital public
services, on the basis of a universal digital identity, as well as access to digital health services.
People should benefit from non-discriminatory access to online services and as well from the
realisation of principles, such as secure and trusted digital spaces, work-life balance in a
remote working environment, protection of minors, and ethical algorithmic decision-making.
In addition, the digital technologies and services people use must be compliant with the
applicable legal framework and respect the rights and values intrinsic to the “European way”.
Furthermore, the human-centred, secure and open digital environment should comply with the
law, but also further enable people to enforce their rights, such as the rights to privacy and
data protection, freedom of expression, the rights of the child and consumer rights.
The digital principles are rooted in primary EU law, notably the Treaty on European Union
(TEU), the Treaty on the Functioning of the European Union (TFEU), the Charter of
Fundamental Rights and the case-law of the Court of Justice of the European Union, as well
as in secondary legislation37.

35
Communication from the Commission on the Digitalisation of justice in the European Union A toolbox of
opportunities, COM(2020) 710 final.
36
85% of criminal investigations rely on electronic evidence.
37
This is the case of existing legislation, e.g. the Consumer Sales and Guarantees Directive, the European
Accessibility Act, the European Electronic Communication Code, the Audiovisual Media Service
Directive, the Single Digital Gateway Regulation or the Cybersecurity Act, as well as legislation that has
been proposed and should be rapidly adopted by the EU co-legislators and ratified by national
Parliaments such as the Digital Services Act and the Digital Markets Act.

12
This European way for the digital society should also underpin and support open democracy
initiatives by contributing to inclusive policy-making, enabling wide-ranging engagement
with people and stimulating grass-roots action for developing local initiatives as enabler
factors to improve social acceptability and public support for democratic decisions.
This European way for the digital society is also based on ensuring full respect of EU
fundamental rights:
 Freedom of expression, including access to diverse, trustworthy and transparent
information,
 Freedom to set up and conduct a business online,
 Protection of personal data and privacy, and right to be forgotten,
 Protection of the intellectual creation of individuals in the online space.
It is equally important to set up a comprehensive set of digital principles that will allow to
inform users and guide policy makers and digital operators such as:
 Universal Access to internet services
 A secure and trusted online environment
 Universal digital education and skills for people to take an active part in society and in
democratic processes
 Access to digital systems and devices that respect the environment
 Accessible and human-centric digital public services and administration
 Ethical principles for human centric algorithms
 Protecting and empowering children in the online space
 Access to digital health services.
The Commission will propose to include such a set of digital principles and rights in an inter-
institutional solemn declaration between the European Commission, the European Parliament
and the Council, based on a proposal from the European Commission and building on and
complementing the experience of the European Pillar of Social Rights.
The Commission intends to carry out an annual Eurobarometer exercise specifically dedicated
to monitoring the perception of Europeans regarding the respect of their rights and values, and
to what extent they feel that the digitisation of our society is serving them.

5. A COMPASS TO REACH THE 2030 TARGETS AND OBJECTIVES

To deliver the renewed EU ambition for digitalisation a robust framework is necessary. It
should encompass our vision based on the four cardinal points, digital principles and
addressing critical capacity gaps.

Digital COMPASS
Governance structure with annual reporting and follow up

13
 Achieving the concrete Shaping and launching Monitoring Digital
objectives under the four
Multi-country projects 39 Principles
cardinal points38
Monitoring of infrastructure and
Monitored by quantitative Reporting and
critical capacity gap. Building
KPIs, reporting on actions scoreboards
consensus / fostering agreement
undertaken and followed up
on common projects and Annual Eurobarometer
with recommendations
facilitating their implementation

5.1 Governance
Operationally, the Commission intends to propose a Digital Compass in the form of a digital
policy programme40 to be adopted by co-decision of European Parliament and Council, setting
the focus on delivery and constant commitment towards the common digital goals. The
programme would feature the following aspects:
- A set of concrete objectives for each of the four cardinal points as proposed in Section 3.
- A monitoring system measuring the progress of the EU against the key targets for 2030
(Section 3 and Annex) and digital principles (Section 4), also assessing the areas with
insufficient development at the level of Member States, including for instance lack of
action or incomplete implementation of key regulatory proposals.41 The underlying
indicators for monitoring the targets at EU level and the digitalisation trends at national
level will be part of an enhanced DESI reporting in order align with and harness existing
processes and methodologies42. The European Commission will be responsible for the
analysis and overall reporting on progress at the European level. Such reporting will
provide an overview and analysis of the situation and show the remaining distance
towards the digital decade targets (see as an example a graph below). The final purpose is
to identify in which areas progress lags behind and how the identified gaps can be
addressed through measures and recommendations at European and/or at national level.
How far are we from the 2030 Targets which enable an inclusive and sustainable digital
society?

38
See below paragraph 5.1
39
See below paragraph 5.2.
40
Possibly similar to the Radio Spectrum Policy Programme (RSPP) approved on 14 March 2012 by the
European Parliament and Council. This Decision created a comprehensive roadmap, set general principles
and called for concrete actions to meet the objectives of EU policies for radio spectrum use.
41
While the key targets for the four cardinal points will be defined in the digital policy programme, the
digital principles will be laid down in the inter-institutional solemn declaration mentioned above.
42
Member States are currently already providing relevant information for the DESI index, therefore there
will not be a significant increment of the reporting requests, while at the same time DESI will become an
official and concerted instrument. Member States will have a key role in defining the relevant target and
indicators, as well as in the enforcing mechanism.

14
- On the basis of the analysis, the Commission will publish annually the European State of
the Digital Decade Report for the Council and the European Parliament, to report on the
progress towards the 2030 vision and corresponding cardinal points, targets and
principles, as well as on the more general state of compliance with these objectives,
through a score of ‘traffic lights’. The report will raise awareness on deviations towards
the common 2030 EU goals and digital principles and identified investment gaps. The
annual State of the Digital Decade Report, as a sole report on the progress in digital, will
feed also into the European Semester exercise, and will be aligned with the recovery and
resilience facility process.
- The Report will trigger a collaborative analysis between the Commission and Member
States to identify solutions addressing weaknesses and to propose targeted actions for
effective remedies. The Commission will be empowered, in collaboration with Member
States, to undertake an operational follow-up and to provide recommendations. This could
include recommendations as regards regulatory implementation43 or the need for public
intervention to foster additional investments in digital technologies and capacities, e.g.
through the development of Multi-Country Projects.
The policy programme will set up a mechanism to enable the Commission to engage with
Member States through close cooperation and coordination with the objective of taking joint
commitments as well as possible measures at EU and national level, also taking into account
the implementation of other digital policies and initiatives. In addition, the policy programme
will allow the Commission to engage with Member States to launch and shape Multi-Country
Projects, as described below.
While the focus would be on the cooperation and coordination with Member States, for the
governance to be effective, all economic and societal actors need to have well-founded trust in
delivery. Since this is a key condition of success for the acceleration of EU’s digitalisation,
the Compass will subject to targeted consultations with relevant stakeholders.

5.2 Multi-Country Projects

To deliver the European vision for the Digital Decade, digital capacities are needed in the four
areas of the Digital Compass, which can only be delivered if Member States and the EU pool

43
This could encompass, for instance, a further harmonization of spectrum policies.

15
resources. For the large technological projects that are necessary for Europe’s digital
transition, a European approach to building digital capacities is indispensable. Cutting-edge
European capacities require critical mass of funding and alignment of all the actors.
The European Council has called for further strengthening synergies between the use of EU
and national funds as regards such key technological projects. The Recovery and Resilience
Facility (RRF) Regulation and the Technical Support Instrument recognise the opportunity of
developing Multi-Country Projects combining investments from several national recovery and
resilience plans. Moreover, action should be prepared for the longer term, seeking to ensure
the mobilisation of investments from the EU budget, Member States and the industry.
Possible directions for Multi-Country Projects have already been discussed with Member
States as part of the preparation of the national recovery and resilience plans, under the
flagships Connect, Scale Up, Modernise and Reskill and Upskill. The Commission has
offered operational support and encouraged Member States to use funding from their national
recovery and resilience plans to join forces and support such Multi-Country Projects.

Multi-country digital projects discussed so far with the Member States under the RRF44:
- Building a common and multi-purpose pan-European interconnected data processing
infrastructure, to be used in full compliance with fundamental rights developing real-time (very
low latency) edge capacities to serve end-users’ needs close to where data are generated (i.e. at
the edge of telecom networks), designing secure, low power and interoperable middleware
platforms for sectoral uses, and enabling easy exchange and sharing of data, notably for Common
European Data Spaces;
- Endow the EU with capabilities in electronics design and deployment of the next generation of
low power trusted processors and other electronic components needed to power its critical
digital infrastructure, AI systems and communication networks;
- Pan-European deployment of 5G corridors for advanced digital rail operations and Connected
and Automated Mobility contributing to road safety and green deal objectives;
- Acquiring supercomputers and quantum computers, connected with the EuroHPC extreme-
bandwidth communication network, investing and cooperating in large-scale application
platforms requiring supercomputing (e.g. in health, disaster prediction), as well as in HPC
national competence centres and HPC & Quantum skills;
- Developing and deploying an ultra-secure quantum communication infrastructure spanning the
whole EU, to significantly increase the security of communication and storage of sensitive data
assets all over the EU, including of critical infrastructures;
- Deploying a network of Security Operations Centres, powered by artificial intelligence, able to
detect signs of a cyberattack early enough, and to enable proactive action, for enhanced joint risk
preparedness and response at national and EU level;
- Connected Public Administration: build in complementarity and synergy with the eIDAS
framework and offer on a voluntary basis European Digital Identity, to access and use digital
services online from the public and private sectors in a privacy-enhancingway and in full
compliance with existing data protection laws;; Build a Once-Only system allowing public
administrations at the local, regional and national levels to exchange data and evidence across
borders, in full compliance with legal requirements and fundamental rights;

44
The list of multi-country projects provided is indicative. Eligibility for funding from the Recovery and
Resilience Facility of any of these projects depends on full compliance with Regulation (EU) 2021/241 of the
European Parliament and of the Council.

16
- European Blockchain Services Infrastructure: develop, deploy and operate a pan-European
blockchain-based infrastructure that is green, secure, in full compliance with EU values and the
EU legal framework, making cross-border and national/local public service provision more
efficient and reliable and promoting new business models;
- European Digital Innovation Hubs: support the digitisation of European Industry through
completing an EU-wide network of “European Digital Innovation Hubs” (EDIHs), which are
“one-stop-shops” to provide to SMEs technical expertise, opportunities to “test before invest”,
financing advice, training and more;
- High tech partnerships for digital skills through Pact for Skills: there are growing gaps of ICT
specialists in all industrial ecosystems, regions and Member States. To fill this gap, a large-scale
multi-stakeholder skills partnership could be set up to build a bridge between demand and supply,
foster greater private and public investment increase the quantity and the quality of the offer of
specialised education and training and to boost excellence in higher education and VET
institutions, making them more attractive and responsive to the needs of the labour market in
terms of digital.
The Commission is committed to support the development and implementation of Multi-
Country Projects, including under the RRF, and in enhanced dialogue with Member States,
including through a flexible governance framework.
Until now a variety of mechanisms45 has been used for different projects and investments.,
which have revealed a gap in the Commission’s toolbox to combine funding from Member
States, the EU budget and private investment for the purposes of deploying and operating
infrastructures and services of common interest, outside the research area.
In particular, a number of combined features are necessary for an efficient mechanism for
deploying and operating digital multi-country projects (and possibly also projects in other
fields):
 the possibility to be set up swiftly and flexibly, while making sure it remains open to
all interested Member States;
 standard arrangements governing common issues such as ownership and management
of data, including the role of the Commission to ensure openness, alignment with
agreed EU priorities and regulations, including competition and State aid rules, and
coordination with EU programmes and policies
 facilitate the pooling of EU and national funding and the complementarity and
combination of the various sources of funding, while creating incentives to crowd in
private investments;
 legal capacity to procure and operate multi-country infrastructures and pan-European
services of public interest, going beyond research, while facilitating vendor neutrality.
To offer an efficient solution and incentivise Member States to work together in Multi-
Country Projects, building on lessons learnt, including from the implementation of such
projects under the RRF, the Commission is assessing options, such as the feasibility and

45
E.g. Joint Undertakings, European Research Infrastructure Consortia, Non-profit associations, Important
Projects of Common European Interest.

17
features of a specific instrument for Multi-Country Projects, as part of the future proposal for
the Digital Policy Programme.
The Digital Compass: a new tool to pilot the Digital Decade
The Commission will propose a Digital Compass in the form of a policy programme to be
adopted by co-decision of European Parliament and Council. This Digital Compass will
include:
(i) concrete targets to reach our vision along four cardinal points measured at EU and
national level with key performance indicators based on an enhanced DESI,
(ii) a governance structure - including annual reporting by the Commission to the European
Parliament and Council on the progress towards the Digital Decade which could include
specific recommendations to limit deviations with the achievement of goals
(iii) monitoring of digital principles endorsed in the inter-institutional declaration, and
(iv) a mechanism to organise with Member States those Multi-Country Projects that are
necessary for building Europe’s digital transition in critical areas.

6. INTERNATIONAL PARTNERSHIPS FOR THE DIGITAL DECADE

The degree of digitalisation of an economy or society has been shown not only to be a critical
underpinning of economic and societal resilience, but also a factor in global influence. As the
pandemic has highlighted the extent to which digital policy is never value-neutral, with
competing models on offer the EU now has an opportunity to promote its positive and human-
centric vision of the digital economy and society.

For Europe’s Digital Decade to be successful, we will build strong international digital
partnerships matching the four pillars of our Compass: skills, infrastructures, transformation
of business and of public services. These will strengthen the EU’s capacity to assert its own
interests and deliver global solutions while fighting against unfair and abusive practices and
ensuring the security and resilience of EU digital supply chains.

The EU’s starting point is an open digital economy based on the flow of investment and
innovation as an engine for prosperity. At the same time, the EU will strongly promote our
core interests and values, through three overarching principles: a level playing field in digital
markets, a secure cyberspace and upholding fundamental rights online.

Trade policy and agreements will play a vital role in this regard by setting the global and
bilateral rules for digital trade in an open but assertive manner, based on European values.

As a central part of the renewed transatlantic relationship, the EU has proposed to establish a
new EU-US Trade and Technology Council, to deepen our trade and investment partnership,
strengthen our joint technological and industrial leadership, develop compatible standards,
deepen research collaboration, promote fair competition and ensure the security of critical
supply chains.

The EU is a key player in multilateral fora and a promoter of inclusive multilateralism

where governments, civil society, the private sector, academia and other stakeholders work
together. Such fora can improve the functioning of the digital economy globally, as in the case

18
of negotiations on new e-commerce rules in the World Trade Organisation. The EU will work
actively and assertively to promote its human-centric vision of digitisation within
international organisations, in cooperation with its Member States and like-minded partners.
This coordinated approach should especially defend a use of technology that is fully adherent
to the United Nations Charter and the Universal Declaration on Human Rights.
The EU’s international digital partnerships will be underpinned by a toolbox, drawing on a
combination of regulatory cooperation, addressing capacity building and skills, investment in
international cooperation and research partnerships. A growing programme of bilateral
dialogues will be used for that purpose:
 The EU’s international digital partnerships will promote alignment or convergence
with EU regulatory norms and standards on issues such as data protection, privacy
and data flows, the ethical use of AI, cybersecurity and trust, tackling disinformation
and illegal content online, ensuring internet governance, and supporting development
of digital finance and e-government. The EU will also contribute to common solutions
such as the ongoing work at the G20 and the OECD with respect to a global
consensus-based solution to address the taxation of the digital economy.
 To underpin its digital partnerships with developing and emerging countries, the
Commission will design and propose digital economy packages that draw on the
toolbox. They will be financed through Team Europe Initiatives (TEIs) that combine
resources of the EU46 and its Member States, working with world leading European
companies, including via the development and networking of digital innovation hubs.
These packages will be designed so that the cardinal points remain linked and
addressed comprehensively, guaranteeing the promotion of a human-centric model of
digital development. Fostering digital connectivity in order to bridge the digital divide
requires important investments and hence comprehensive financial cooperation,
including with like-minded partners and International Financial Institutions. Team
Europe will address this digital gap in partner countries, with particular attention to
Africa, promoting at the same time EU technology and values. This could be
supported by the creation of a Digital Connectivity Fund in a Team Europe
approach. The Commission will explore its feasibility, together with our partners, in
the coming months.
 Digital Partnerships will offer the opportunity to carry out joint research activities,
including under Joint Undertakings on industrial issues, which will support EU
leadership in evolving technologies such as 6G, Quantum or the use of digital
technology in the fight against climate change and environmental challenges.

Building on a renewed transatlantic relationship as a strong pillar of our digital international

engagement, the EU should lead the way towards a wider coalition of like-minded partners,
open to and developed together with all those who share its vision of a human-centric digital
transformation. Together we will defend the open, decentralised internet, based on a single
world wide web, and a use of technology that respects individual freedoms and promote a
digital level playing field Such a coalition should work together to boost competitiveness and
46
Notably through the Neighbourhood, Development and International Cooperation Instrument, but also
through its Connecting Europe Facility.

19
innovation, set standards in multilateral fora – such as on the ethical use of artificial
intelligence – promote digital trade flows through mutually interdependent and resilient
supply chains, and secure cyberspace. The Commission and the High Representative will
work with EU Member States to develop a comprehensive and coordinated approach to
digital coalition-building and diplomatic outreach including through the network of EU
delegations.

By 2030 international digital partnerships should result in greater opportunities for

European companies, increased digital trade via secure networks, respect of European
standards and values, and a more supportive environment internationally for the kind of
human-centric digital transformation we and other partners want to see.

7. CONCLUSION: THE WAY FORWARD

The Digital Compass Communication maps out a clear path towards a common vision and
actions for Europe to succeed in the Digital Decade, at home and in the world.
The involvement and commitment of the public and of all stakeholders is crucial to achieve a
successful digital transformation. In this context, the Commission, shortly after this
Communication, will start a wide consultation process on the digital principles. It will engage
with the Member States, the European Parliament, regional and economic and social partners,
businesses and citizens, on specific elements of the Communication during 2021, including
the compass framework with specific targets and governance. The Commission will set up a
stakeholder forum, which would be associated to some aspects of the Digital Compass 2030
work.
The Commission will build on these concertation steps with a view to proposing the Digital
Policy Programme to the co-legislators by the third quarter of 2021, and hopes to achieve
decisive progress with the other institutions on a Declaration of Digital Principles by the end
of 2021.

20