EU boots up European digital integration
The European Commission is due to publish its strategy to address Europe’s technology lag
The EU is keen to promote digital integration in Europe. It estimates that with a digital single market strategy, the continent could achieve growth worth €340bn
Despite a rise in euro-scepticism, and a financial crisis on its southern shores, the EU is still committed to achieving integration in new areas. It is set to release its strategy for Europe-wide digital integration on May 6.
Whereas the United States is fully digitally integrated, “only seven percent of EU small and medium sized enterprises… sell online across national borders”, according to a Dods Information report. Likewise, whereas US online digital services account for 57 percent of the global market, EU cross-border digital services account for a mere four percent. Access to the latest internet technologies is also comparatively low, with only 25 percent of European Union citizens having access to 4G technology, compared to 90 percent in the US.
The creation of a European digital single market could result in growth worth €340bn
The EU feels this lag can be addressed by further integration through the development of a European digital single market. “The strategy is going to address several issues that constitute hurdles to a fully integrated European digital market, such as varying broadband connections, diverging data protection rules, geo-blocking and different VAT systems”, reports The Parliament Magazine.
Geo-blocking is the restriction of access to certain websites based on the visitor’s location. According to Andrus Ansip, one of the commissioners drafting the strategy, the “logic of geo-blocking cannot override that of the single market: they cannot co-exist”. In order to boost e-commerce across EU borders, the strategy will also look at how to simplify VAT codes. The plan will also, according to Dods Information, “review current telecoms and media legislation in order to ‘encourage investment in infrastructure’, strengthen trust in online services and data protection, and enable the quick removal of illegal content”. The commission also aims to encourage businesses to make full use of big data and cloud technology.
The European Union estimates these efforts could result in growth worth €340bn and save European consumers a total of €11.7bn. The full details of how this will be achieved will be published by the EU on May 6.
