Kiri

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 10

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Finland

SHORT COUNTRY REPORTS 2025

1

Finland

Executive summary Finland positions itself as a technological leader with digitally agile enterprises, skilled citizens and

a strong semiconductor industry. While its gigabit infrastructure requires further development,

digital public services are widely available to people and businesses.

Finland shows a high level of ambition in its contribution to the Digital Decade having set 12 national

targets, 100% of which aligned with the EU 2030 targets. The country is following its trajectories well

with 83% of them being on track (considering 2024 trajectories defined for 6 KPIs out of 8 analysed).

Finland addressed 72% of the 11 recommendations issued by the Commission in 2024, either by

implementing significant policy changes (27%) or making some changes (45%) through new

measures.

In 2024, 5G almost covered the entire country. Finland strengthened European sovereignty with

developments in semiconductors and cross-sectoral support for artificial intelligence (AI) and other

disruptive technologies. Notably, it hosts one of the first European AI Factories. Finnish businesses rely

on digital tools and close to three quarters of them use cloud solutions. Digitalisation enjoys strong

public support, individuals have solid basic digital skills and relatively high privacy and content

evaluation skills. There is a widespread use of digital government solutions. However, the need for ICT

specialists persists. Finland is actively preparing for the implementation of the European Digital

Identity Regulation and the European Health Data Space Regulation.

Digital Decade KPI (1)

Finland EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025 Annual

progress FI EU

Fixed Very High Capacity Network (VHCN) coverage 77.7% 81.7% 5.1% 66.6% 82.5% 4.9% 100.0% 100%

Fibre to the Premises (FTTP) coverage 61.1% 68.3% 11.6% 66.6% 69.2% 8.4% 100.0% -

Overall 5G coverage 98.3% 99.5% 1.2% 99.6% 94.3% 5.9% 100.0% 100%

Edge Nodes (estimate) 24 47 95.8% - 2257 90.5% - 10000

SMEs with at least a basic level of digital intensity (2) - 92.5% 1.7% - 72.9% 2.8% 95.0% 90%

Cloud 73.0% - - - - - 75.0% 75%

Artificial Intelligence 15.1% 24.4% 61.4% 26.0% 13.5% 67.2% 75.0% 75%

Data analytics 40.6% - - - - - 75.0% 75%

AI or Cloud or Data analytics 79.5% - - - - - - 75%

Unicorns 7 7 0.0% - 286 4.4% - 500

At least basic digital skills 82.0% - - - - - 87.0% 80%

ICT specialists 7.6% 7.8% 2.6% 7.9% 5.0% 4.2% 10.0% ~10%

eID scheme notification Yes

Digital public services for citizens 90.6 96.3 6.3% 92.0 82.3 3.6% 100.0 100

Digital public services for businesses 100.0 98.8 -1.3% - 86.2 0.9% 100.0 100

Access to e-Health records 82.6 84.7 2.5% - 82.7 4.5% 100.0 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports the version 4 of the Digital Intensity Index, that is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory that is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024)

2

Finland

According to the special Eurobarometer on ‘the Digital Decade’ 2025, 77% of Finnish citizens consider

that the digitalisation of daily public and private services is making their lives easier. On the action of

the public authorities, 92% consider it important to counter and mitigate the issue of fake news and

disinformation online, and on competitiveness, 88% consider it important to ensure that European

companies can grow and become ‘European Champions’ capable of competing globally.

A competitive, sovereign, and resilient EU based on technological leadership

Finland boasts excellent 5G infrastructure and is making good progress in improving fixed connectivity

despite remaining below the EU average. The country is putting significant efforts into advancing digital

technologies, particularly through its active participation in the ‘Chips for Europe’ initiative, supporting

research, development and innovation (RDI) in quantum ecosystem and gathering scientists and

enterprises in Finland’s AI efforts. Although Finland has made good progress in adopting digital

technologies and leveraging the data economy, achieving its ambitious AI and data analytics targets

will depend on continuous efforts. The country has a start-up friendly ecosystem, but scaling up

remains an issue and, in general, Finnish enterprises struggle to achieve high productivity and

innovation. Nonetheless, they show good awareness of cybersecurity measures. In this area, in

October 2024 Finland adopted a comprehensive cybersecurity strategy for 2024-2035.

Protecting and empowering EU people and society

Finland’s digital skills performance indicates inclusive growth across various demographic groups,

although some gaps remain among rural populations and older people. Most of the population also

have the skills needed to critically evaluate digital content. The number of ICT specialists, including

women, is increasing but they continue to be in high demand. As result, there is some action under

way to support higher education in ICT. Finland's digital public services are achieving scores close to

100; however, access to digital health records is progressing slower than in the rest of the EU. In the

second quarter of 2024, Finland successfully notified the ‘Citizen Certificate’ eID scheme. By actively

participating in European large-scale pilots and other cross-country projects, the country is preparing

for the implementation of the European Digital Identity Regulation and the European Health Data

Space Regulation.

Leveraging digital transformation for a smart greening

Finland is a leader in monitoring and reducing the environmental impact of its ICT sector. It also links

clean energy with advantages for enterprises and aligns technological advancements with

sustainability goals. The EuroHPC LUMI supercomputer hosting Climate Change Adaptation Digital

Twin is a notable example of this. The country plays a key role in green initiatives in the Digital Decade’s

Best Practice Accelerator.

National digital decade strategic roadmap

Finland submitted an addendum to the national Digital Decade roadmap on 29 November 2024. The

addendum, like the original roadmap, is based on Finland’s Digital Compass. The content of the

roadmap and its update have been developed in cooperation with stakeholders. The new roadmap

addresses a substantial number of roadmap recommendations issued in 2024, containing both

additional and revised targets and trajectories. All targets align with the EU-level goals for 2030, and

two are even higher, 87% for basic digital skills and 95% for the basic digital intensity of SMEs. The

revised roadmap continues to prioritise semiconductors and quantum, RDI activities and the digital

3

Finland

empowerment of enterprises. It contains 14 measures with a budget of EUR 559 million, comprising

EUR 556 million from public budget (equivalent to 0.2% of GDP). It covers many objectives of the Digital

Decade, such as creating a human-centred digital space, boosting technological leadership,

sovereignty, competitiveness, and supporting the green transition.

Funding & projects for digital

Finland allocates 29% of its total recovery and resilience plan to digital (EUR 526 million)1. In addition,

under cohesion policy, EUR 385 million, representing 20% of the country’s total cohesion policy

funding, is dedicated to advancing Finland’s digital transformation2.

Finland is a member of the Alliance for Language Technologies EDIC. Finland is directly participating in

the IPCEI on Microelectronics and Communication Technologies (IPCEI-ME/CT). The country is also a

participating state of the EuroHPC Joint Undertaking (JU) and of the Chips JU.

Finland is co-leading the Green IT cluster of the Best Practice Accelerator3, promoting the exchange of

information on public policies aimed at the environmental transition of digital technologies. The

country has already contributed with two best practices in this area. Additionally, Finland has shared

best practices on digital skills development and the adoption of digital technologies by enterprises.

Digital rights and principles

According to a support study, Finland has been relatively active in implementing the European

Declaration on Digital Rights and Principles, with 72 initiatives overall and 5 new initiatives launched

in 2024. Finland is most active in the area of putting people at the centre of the digital transformation.

Less activity has been identified with regards to interactions with algorithms and artificial intelligence

systems. Measures in the area of solidarity and inclusion (appear to have most impact on the ground,

in contrast to those addressing sustainability.

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021- 2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital Skills,

Green IT, and the Uptake of Digital Technologies.

4

Finland

Recommendations

- Gigabit: Intensify efforts to develop fixed gigabit connectivity, including by encouraging the take

up of the existing broadband support measure and identifying the most suitable strategies to

achieve full coverage.

- ICT specialists: Intensify efforts to attract ICT specialists, including those from abroad, by

offering tailored training pathways, and addressing the gender gap in the field.

- Advanced technologies: Further promote cooperation between academia, businesses and

other stakeholders, with a view to advancing innovation with the support of digital

technologies.

- AI: Continue strengthening the AI ecosystem to boost Finland’s leadership role in this area.

- Cybersecurity: Continue efforts in cybersecurity to address evolving threats, particularly for

enterprises and public administration.

- Unicorns: Continue improving the business environment and access to finance for digital start-

ups to scale-up and compete globally.

- Semiconductors and digital innovation: Continue investing in the development and

manufacturing of critical technologies in the areas of digital and deep tech.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 11

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

1

France

SHORT COUNTRY REPORTS 2025

2

France

Executive summary France can rely on a very good digital infrastructure but lags behind in the digitalisation of

businesses. The country positions itself as a tech leader in AI and green ICT.

France shows a high level of ambition in its contribution to the Digital Decade having set 9 national

targets, 100% of which aligned with the EU 2030 targets. The country is following its trajectories

moderately well with 50% of them being on track (considering 2024 trajectories defined for 6 KPIs

out of 8 analysed). France addressed 77% of the 13 recommendations issued by the Commission in

2024, either by implementing significant policy changes (54%) or making some changes (23%)

through new measures.

In 2024, fibre and 5G coverage in France is high despite a large territory. The digitalisation of SMEs

and the adoption of advanced digital technologies by businesses remains below average. Recent

activities, such as hosting the AI Action Summit in 2025, confirm that France wants to position itself

as a leader in AI. The country is also developing initiatives and standards to measure and reduce the

environmental footprint of the ICT sector. France’s digital policies increasingly emphasise sovereignty

by, for example, developing its national production of semiconductors and fostering the adoption of

sovereign EU and French solutions by businesses and the public administration. France has set out a

very broad portfolio of actions to raise awareness of cyberthreats in all sectors (enterprises,

administration, general public) but has also provided support in implementing cybersecurity

strategies, especially in the healthcare sector.

Digital Decade KPI (1)

France EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025 Annual

progress FR EU

Fixed Very High Capacity Network (VHCN) coverage 81.4% 87.5% 7.5% 90.7% 82.5% 4.9% 100.0% 100%

Fibre to the Premises (FTTP) coverage 81.4% 87.5% 7.5% - 69.2% 8.4% - -

Overall 5G coverage 90.9% 94.3% 3.8% 96.6% 94.3% 5.9% 100.0% 100%

Edge Nodes (estimate) 272 532 95.6% - 2257 90.5% - 10000

SMEs with at least a basic level of digital intensity (2) - 68.5% 3.8% - 72.9% 2.8% 90.0% 90%

Cloud 23.0% - - - - - - 75%

Artificial Intelligence 5.9% 9.9% 68.5% - 13.5% 67.2% - 75%

Data analytics 33.9% - - - - - - 75%

AI or Cloud or Data analytics 44.9% - - - - - 65.0% 75%

Unicorns 43 48 11.6% 49 286 4.4% 100 500

At least basic digital skills 59.7% - - - - - 80.0% 80%

ICT specialists 4.7% 4.8% 2.1% 5.5% 5.0% 4.2% 10.0% ~10%

e-ID scheme notification Yes

Digital public services for citizens 72.1 71.2 -1.2% 76.1 82.3 3.6% 100.0 100

Digital public services for businesses 79.3 76.9 -3.0% 82.3 86.2 0.9% 100.0 100

Access to e-Health records 79.3 84.2 6.2% 82.2 82.7 4.5% 100.0 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports the version 4 of the Digital Intensity Index, that is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory that is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024)

3

France

According to the special Eurobarometer on ‘the Digital Decade’ 2025, 65% of French people consider

that the digitalisation of daily public and private services is making their lives easier. On the action of

the public authorities, 89% consider it important to counter and mitigate the issue of fake news and

disinformation online. And on competitiveness, 82% consider it important to ensure that European

companies can grow and become ‘European Champions’ capable of competing globally.

A competitive, sovereign, and resilient EU based on technological

leadership

Digital infrastructure indicators (very high capacity networks (VHCNs), fibre to the premises (FTTP),

5G) are all above the EU average thanks to effective public policies (plan ‘France très haut débit’,

multiple service providers sharing a fibre network). However, the digitalisation of enterprises,

especially SMEs, is still lagging. Nonetheless, France has demonstrated leadership in AI and can count

on a dynamic start-up ecosystem in this sector and in quantum computing. The country has adjusted

its roadmap with additional measures to foster the adoption of generative AI and retrieval-augmented

generation technologies by businesses. However, the take-up of advanced digital technologies by

businesses is below average. France promotes cyber awareness on all fronts: businesses, population,

and administration. The updated roadmap includes a programme for cyber protection of healthcare

facilities. The roadmap also includes massive investments in semiconductors (research and

production).

Protecting and empowering EU people and society

France’s digital skills performance reflects inclusive growth across genders and a small urban-rural

skills gap, but some disparities persist based on people’s education levels. The general population’s

poor performance in mathematics may limit the pursuit of science, technology, engineering and

mathematics (STEM) and ICT specialist training and careers as these skills shortages are persistent.

Public service digitalisation is losing ground compared to the EU average. In this area, the authorities

are focussing on reducing the administrative burden (dematerialisation – replacing physical

documents, processes and transactions with digital equivalents, ‘once only’ principle). They are also

promoting the adoption of sovereign solutions, including cloud, open software, and specialised skills

within the administration. On a positive note, the digitalisation of healthcare has made impressive

progress in the past two years.

Leveraging digital transformation for a smart greening

France is a global leader in monitoring and reducing the environmental impact of its ICT sector. It has

developed tools to measure, forecast and monitor the ICT sector’s footprint (such as designing carbon

reduction trajectories) and plays a key role in green initiatives within the Digital Decade’s Best Practice

Accelerator.

National digital decade strategic roadmap

France submitted a fully revised national Digital Decade roadmap on 3 February 2025, containing six

additional measures and revised trajectories. The updates are aligned with the Commission’s new

priorities on AI, cybersecurity and green ICT. It includes reporting on the consultation of stakeholders.

It addresses a substantial number of roadmap recommendations issued in 2024. All targets align with

the EU level goals for 2030 (except for the combined indicator on the adoption of AI, cloud, and data

analytics technologies where the country aims at 65%, below the EU target of 75%). The revised

4

France

roadmap continues to prioritise semiconductors, connectivity, and e-Health. It contains of 33

measures with a budget of EUR 18.6 billion, including EUR 11.1 billion from the public budget

(equivalent to 0.38% of GDP). It covers all the Digital Decade objectives, such as creating a human-

centred digital space, boosting resilience and security, promoting sovereignty, supporting the green

transition, and protecting society.

Funding & projects for digital

France allocates 22% of its total recovery and resilience plan to digital (EUR 8.1 billion)1. In addition,

under cohesion policy, EUR 1.9 billion, representing 11% of the country’s total cohesion policy funding,

is dedicated to advancing France’s digital transformation2.

France is the host Member State of the Alliance for Language Technologies EDIC (ALT-EDIC). France is

also a member of the Local Digital Twins towards CitiVERSE EDIC. The country is directly participating

in the IPCEI on Microelectronics and Communication Technologies (IPCEI-ME/CT) and in the IPCEI on

Next Generation Cloud Infrastructure and Services (IPCEI-CIS). France is also a participating state of

the EuroHPC Joint Undertaking (JU) and of the Chips JU.

France has contributed to the Best Practice Accelerator3 by leading the cluster on Green IT related to

public policies on the environmental transition of digital technology. It shared three best practices

within this cluster (the general reference framework for the eco-design of digital services, the Alt

IMPACT Communication Campaign, and the development of product category rules for environmental

evaluation and labelling) and one additional best practice in the Digital Skills cluster (digital advisors).

Digital rights and principles

According to a support study, France has been relatively active in implementing the European

Declaration on Digital Rights and Principles, with 53 initiatives overall but no new initiatives launched

in 2024. France is most active in the area of participation in the digital public space. Less activity has

been identified with regards to digital public services online. Measures in the area of putting people

at the centre of the digital transformation appear to have most impact on the ground, in contrast to

those addressing safety, security and empowerment.

Recommendations - SMEs: Improve digitalisation of SMEs, including by directing existing support schemes to SMEs

that lag in digitalisation, independently of their size.

- ICT specialists and advanced skills: Increase the job market relevance, improve the visibility, and

clarify the offer of digital training and reskilling options.

- Advanced technologies take-up: Support the adoption of advanced digital technologies by

businesses (with a particular attention to AI and cloud) via the creation of local ecosystems to

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery

and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the

2021-2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the

Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges

encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member

States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital

Skills, Green IT, and the Uptake of Digital Technologies.

5

France

spread technologies and best practices across all economic sectors. Encourage the adoption of

sovereign European solutions.

- Artificial intelligence: Continue supporting innovation in AI to strengthen France’s leadership in

the sector and create future global leader companies.

- Cybersecurity: Continue efforts in cybersecurity to address evolving threats, particularly for

enterprises and administration.

- Digital public services: Speed up the digitalisation of public services for both citizen and

businesses, in particular by expanding cross-border capabilities.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 12

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Germany

SHORT COUNTRY REPORTS 2025

2

Germany

Executive summary Germany continues to excel in domains related to developing advanced technologies, such as

semiconductors and edge nodes. However, the country is lagging behind in providing digital public

services, has low digital skills, and incomplete high-capacity network coverage. This highlights the

need for more focused measures, which would also further boost businesses’ uptake of digital

technologies.

Germany shows a substantial level of ambition in its contribution to the Digital Decade, with nine

national targets, 89% of which are aligned with the EU 2030 targets. The country is following its

trajectories well with 75% of them being on track (considering 2024 trajectories defined for 4 KPIs

out of 8 analysed). Germany addressed 33% of the 12 recommendations issued by the Commission

in 2024 by making some changes through new measures.

Germany’s new Federal Government assumed office in early May 2025. The government’s coalition

agreement outlines ambitious goals for digital policy and digitalisation, and the focus on digital policy

is reflected by the newly established Federal Ministry for Digitalisation and Government

Modernisation. This coalition agreement may result in an accelerated digitalisation of Germany,

thereby contributing to the objectives of the Digital Decade.

Digital Decade KPI (1)

Germany EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025 Annual

progress DE EU

Fixed Very High-Capacity Network (VHCN) coverage 74.7% 77.4% 3.5% - 82.5% 4.9% 100.0% 100%

Fibre to the Premises (FTTP) coverage 29.8% 36.8% 23.4% - 69.2% 8.4% 100.0% -

Overall 5G coverage 98.1% 99.1% 0.9% - 94.3% 5.9% 100.0% 100%

Edge Nodes (estimate) 358 652 82.1% - 2257 90.5% - 10000

SMEs with at least a basic level of digital intensity (2) - 79.9% 1.6% - 72.9% 2.8% 91.0% 90%

Cloud 38.5% - - - - - - 75%

Artificial Intelligence 11.6% 19.8% 71.0% - 13.5% 67.2% - 75%

Data analytics 37.1% - - - - - - 75%

AI or Cloud or Data analytics 58.0% - - - - - - 75%

Unicorns 67 69 3.0% - 286 4.4% - 500

At least basic digital skills 52.2% - - - - - 80.0% 80%

ICT specialists 4.9% 5.3% 8.2% 4.9% 5.0% 4.2% 5.3% ~10%

eID scheme notification

Yes

Digital public services for citizens 75.8 78.9 4.1% 75.8 82.3 3.6% 100.0 100

Digital public services for businesses 78.6 77.5 -1.4% 78.6 86.2 0.9% 100.0 100

Access to e-Health records 87.0 87.0 0.0% 100.0 82.7 4.5% 100.0 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports the version 4 of the Digital Intensity Index, that is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory that is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024)

3

Germany

According to the special Eurobarometer on ‘the Digital Decade’ 2025, 74% of German citizens

consider that the digitalisation of daily public and private services is making their lives easier.

Concerning the action of the public authorities, 88% consider it important to counter and mitigate the

issue of fake news and disinformation online, and regarding competitiveness, 82% consider it

important to ensure that European companies can grow and become ‘European Champions’ able to

compete globally.

A competitive, sovereign, and resilient EU based on technological

leadership

Germany is making significant strides in expanding its connectivity infrastructure, with 5G coverage

nearly meeting the Digital Decade target, and an ambitious national goal for 100% fibre-to-the-

premises (FTTP) by 2030. The country is a leader in the number of edge nodes and is taking proactive

steps in quantum computing and semiconductor technologies. While several measures, particularly

for FTTP, are expected to yield results soon, Germany still faces challenges. It lags behind the Digital

Decade’s gigabit connectivity objectives and struggles with access to Very High-Capacity Networks

(VHCN) in rural areas, where coverage is below the EU average. Additionally, FTTP availability is limited

to only a fraction of households, representing half of the EU average coverage. Although Germany has

nearly achieved full 5G coverage, actual usage based on 5G SIM cards remains poor. Despite the

relatively high number of unicorns, there is still room to improve the availability of funding for start-

ups and to reduce their administrative burdens.

Protecting and empowering EU people and society

Germany faces significant challenges in developing digital skills, having achieved only modest

improvements in this area. The German government is making strides in several areas, yet it still behind

in some key aspects. This not only hinders the uptake of digital services, but also effectively limits the

workforce’s ability to use data to improve business services. This issue is particularly relevant because,

according to the German Country Report of 2024, SMEs’ uptake of AI was hindered by the limited skills

in this area. Even so, the German authorities have chosen not to introduce substantial new measures

in the national roadmap, preferring instead to allow existing initiatives to take their course.

Germany tends to view these challenges through a wider lens, taking a holistic approach rather than

addressing each metric individually. This method is reflected in various aspects, such as Germany’s

plans to increase the number of ICT specialists. Nonetheless, considerable room for improvement

remains, especially in the use of electronic identification and the further digitalisation of public

services. These gaps must be addressed to take full advantage of the opportunities presented by the

expanding digital landscape and to ensure that Germany remains competitive and innovative on the

global stage.

Leveraging digital transformation for a smart greening

Germany prioritises the dual green and digital transition and continues to implement key measures at

both federal and state levels. The German population outperforms the EU average in recycling

electronics, such as computers, phones, and tablets, although the overall recycling rates for IT

equipment remain relatively low.

4

Germany

National digital decade strategic roadmap

On 21 December 2024, Germany submitted a revised national Digital Decade roadmap, addressing

recommendations from the 2024 Country Report. The revised roadmap included stakeholder

consultation. It is composed of 50 measures with a budget of EUR 102.1 billion, comprising EUR 46.8

billion from public budgets (equivalent to 1.09 % of GDP). New targets were added for ICT specialists

and digitalisation of public services for citizens and businesses.

The revision brings impulses on quantum, AI and connectivity, as well as targeting several objectives

in broader measures. However, the adjusted roadmap could do more to address the challenges in the

area of digitalisation of public services for citizens and businesses.

Funding & projects for digital

Germany allocates 48% of its total recovery and resilience plan to digital (EUR 13.3 billion)1. In addition,

under cohesion policy, EUR 2.2 billion, representing 11% of the country’s total cohesion policy funding,

is dedicated to advancing Germany’s digital transformation2. Germany participating directly in the

IPCEI on Microelectronics and Communication Technologies (IPCEI-ME/CT) and in the IPCEI on Next

Generation Cloud Infrastructure and Services (IPCEI-CIS). It is also a participating member of the

European High Performance Computing Joint Undertaking (EuroHPC JU) and of the Chips JU3.

Germany has contributed to the Best Practice Accelerator4 by sharing several best practices in the

‘Digital Skills’ cluster as well as in the ‘Business Uptake’ cluster. In this context, the AI Opportunity

Market (MaKi) and the Federal IPv6 Programme are noteworthy.

Digital rights and principles

According to a support study, Germany has been relatively active in implementing the European

Declaration on Digital Rights and Principles, with 74 initiatives overall and 3 new initiatives launched

in 2024. Germany is most active in the area of digital education, training and skills. Less activity has

been identified with regards to putting people at the centre of the digital transformation. Measures in

the area of freedom of choice appear to have most impact on the ground, in contrast to those

addressing safety, security and empowerment.

Recommendations

- Digital public services: Accelerate the digitalisation of key public services by making additional

public services available online, improving interoperability, as well as front-end and back-end

digitalisation.

- eID: Launch targeted measures to ensure eID uptake and use.

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund. 3 Corrigendum to Digital Decade Country Report Germany 2024: Germany is not a member of the Local Digital Twins towards the CitiVERSE EDIC. 4 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member States via published in the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital Skills, Green IT, and the Uptake of Digital Technologies.

5

Germany

- ICT specialists: Launch targeted measures to increase the attractiveness of STEM disciplines at

school to boost the number of young people, including girls and women, interested in taking up

ICT-related studies or careers.

- Basic digital skills: Improve the effectiveness of existing measures and evaluate whether

increased efforts and/or additional measures are necessary in particular in the area of formal

education.

- Connectivity infrastructure: Accelerate infrastructure roll-out of very high-capacity digital

networks, especially fibre optics.

- Unicorns/start-ups: Implement measures to improve access to funding and reduce

administrative burdens.

- Cybersecurity: Increase efforts in cybersecurity, particularly by increasing awareness amongst

private and public entities.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 13

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Greece

SHORT COUNTRY REPORTS 2025

2

Greece

Executive summary Greece continues its steady progress in rolling out fibre for gigabit connectivity. However, it

struggles to fill the gap of ICT specialists and to address a severe digital gap in basic digital skills

between different age groups and between rural and urban areas. Despite this, the country’s

displays an encouraging growth rate in the digitalisation of small and medium-size enterprises.

Greece shows a moderate level of ambition in its contribution to the Digital Decade having set 14

national targets, 57% of which aligned with the EU 2030 targets. The country is following its

trajectories well with 88% of them being on track (based on the 2024 trajectories defined for 8 KPIs

out of 8 analysed). Greece addressed 77% of the 13 recommendations issued by the Commission in

2024, either by implementing significant policy changes (31%) or making some changes (46%)

through new measures.

In 2024, Greece’s 5G coverage was among the highest in the EU and was very close to the Digital

Decade 2030 target. Despite rapid progress, the adoption of artificial intelligence (AI) by businesses

remains below par. The selection of Greece to host one of the seven first AI Factories in the EU

confirms the country’s commitment to help build the EU’s technological leadership. The AI Factory

will also contribute to developing and strengthening the start-up ecosystem in Greece. Regarding the

transition of public services, although the latest data indicates limited annual progress in services for

citizens, the integration of AI into the single digital portal of the public administration will improve the

quality, speed and accessibility of public services. Greece has also developed a strategy and new

measures for protecting minors online such as the parental control initiative.

Digital Decade KPI (1)

Greece EU Digital Decade target

by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025 Annual progress

EL EU

Fixed Very High Capacity Network (VHCN) coverage 38.4% 46.1% 19.9% 42.0% 82.5% 4.9% 100.0% 100%

Fibre to the Premises (FTTP) coverage 38.4% 46.1% 19.9% 42.0% 69.2% 8.4% 100.0% -

Overall 5G coverage 98.1% 99.8% 1.8% 88.0% 94.3% 5.9% 100.0% 100%

Edge Nodes (estimate) 7 13 85.7% 0 2257 90.5% 95 10000

SMEs with at least a basic level of digital intensity (2) - 53.4% 13.9% - 72.9% 2.8% 79.7% 90%

Cloud 18.1% - - - - - 56.0% 75%

Artificial Intelligence 4.0% 9.8% 146.5% 6.3% 13.5% 67.2% 32.0% 75%

Data analytics 25.0% - - - - - 40.0% 75%

AI or Cloud or Data analytics 33.5% - - - - - - 75%

Unicorns 3 3 0.0% 4 286 4.4% 20 500

At least basic digital skills 52.4% - - - - - 70.2% 80%

ICT specialists 2.4% 2.5% 4.2% 3.0% 5.0% 4.2% 4.5% ~10%

eID scheme notification No

Digital public services for citizens 75.9 76.7 1.1% 71.8 82.3 3.6% 98.2 100

Digital public services for businesses 86.2 78.6 -8.8% 81.3 86.2 0.9% 100.0 100

Access to e-Health records 73.8 73.8 0.0% 66.6 82.7 4.5% 100.0 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports the version 4 of the Digital Intensity Index (DII), which is comparable to the DII value from DESI 2023 (referring to 2022) for the calculation of the annual progress. It is not comparable to the national trajectory that is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (referring to 2024)

3

Greece

According to the special Eurobarometer on ‘the Digital Decade 2025’: (i) 78% of the Greek population

consider that the digitalisation of daily public and private services is making their lives easier; (ii) 92%

consider it important that the public authorities counter and mitigate the issue of fake news and

disinformation online; and (iii) 83% consider that ensuring European companies’ ability to grow and

become ‘European Champions’ that can compete globally is important for competitiveness.

A competitive, sovereign, and resilient EU based on technological

leadership

Greece is making progress in deploying gigabit connectivity infrastructure, with a 46.1% VHCN

coverage in 2024. While this is below the EU average, the outlook for the 2030 targets is positive, as

various operators have recently announced significant investments in the deployment of fibre optic

networks across the country by 2027. Greece’s high annual growth rate of 13.9% for the digital

transition of small and medium-size enterprises (SMEs) resulted in 53.4% of SMEs having at least a

basic level of digital intensity in 2024. However, this is still below the EU average. The adoption of AI

by enterprises in general is also demonstrating an exceptional progress with more than doubling its

share (from 4.0% in 2023 to 9.8% in 2024). The adjustment of the roadmap includes the ‘Plan for the

transition of Greece to the AI ERA’, published in November 2024. This plan includes a chapter on how

AI can boost innovation and enhance the business ecosystem. With regards to cybersecurity, Greece

has restructured its National Cybersecurity Authority to an independent public law entity aiming at

enhancing the Authority’s operational autonomy and capacity, enabling it to more effectively

coordinate and oversee the implementation of the NIS2 Directive which has been transposed in

November 2024 and will continue to develop its national cybersecurity strategy and related policies

in alignment with the EU and the national strategic priorities.

Protecting and empowering EU people and society

Increasing the number of ICT specialists in employment remains one of the biggest challenges faced

by Greece in its digital transition. Additional measures to familiarise young people with digital

technologies very early during their schooling have been included in the adjustment of the national

roadmap to attract young people to ICT studies and careers by making them familiar with digital very

early during their schooling. The initiative to reverse the serious brain drain during the economic crisis

and to encourage highly skilled Greeks living abroad to return to the Greek labour market will also

help to increase the number of ICT specialists in employment. The country also faces a challenge in

fostering digital skills for all, with significant gaps between age groups and between rural-urban

segments of the population. The annual rate of progress in the digital transformation of public services

and businesses is slowing down, although the country continues to actively implement its broad

strategy for the digital transformation of public services. The introduction of the services related to

the Single Digital Gateway regulation (SDGR) present additional challenge for these indicators to reach

the target. In 2024, Greece launched a large-scale project to set up a new eID infrastructure and also

integrate it with Gov.gr Wallet and the new ID cards. However, it has not yet notified an e-ID scheme

to the Commission under the eIDAS Regulation. In line with the Commission priority of protecting

minors online, Greece has launched the ‘Kids Wallet’ application as part of an overall strategy on this

area.

4

Greece

Leveraging digital transformation for a smart greening

Greece is addressing the environmental impact of the digital transition and digital infrastructure, by

stimulating private investments in green data centres and by addressing the need to optimise the

distribution of renewable energy for the growing number of digital data centres across the country.

Additionally, the public sector is implementing initiatives, such as an action plan for green and

innovative public procurement.

National digital decade strategic roadmap

Greece submitted adjustments to its national Digital Decade roadmap on 17 January 2025, with

specific follow-up actions addressing a substantial number of recommendations issued in 2024. It

includes 16 additional measures, and an in-depth analysis of the situation. In particular, Greece

explained why it has not, at this stage, revised the national targets that were not aligned with the EU

2030 targets. This concerns the targets related to the digital transformation of SMEs and to the

adoption of technologies (AI, cloud, data analytics), as well as the two targets related to digital skills.

The updates are aligned with the new Commission’s priorities, such as: (i) advancing AI technology

and innovation; (ii) deploying submarine cables to increase the resilience of backbone networks; (iii)

joining forces to develop capacities in edge technology, such as quantum computing; and (vi)

protecting minors online. The adjustment includes reporting on the consultation of stakeholders. The

roadmap and the adjustments to it continue to build on Greece’s national digital transformation

strategy (for 2020-2025). It contains priorities in the four pillars of the Digital Decade, while adding

new measures in strategic digital technologies, such as AI and quantum computing. The updated

roadmap contains 125 measures and has a budget of EUR 6.1 bn (equivalent to 2.57% of GDP). It also

gives a rough estimate of EUR 7 bn in private investments over the coming years in data centres and

gigabit connectivity. The revised roadmap covers the broad objectives of the Digital Decade, such as

cybersecurity and resilience, building a safe and human centric digital environment, and promoting

the responsible use of AI. In 2024, the Ministry of Digital Governance launched the revision of the

national digital transformation strategy (for 2020-2025) by consulting the Executive Network of Digital

Transformation (ENDT), a large network of public services in order to produce a national policy for

aligning the future national digital transformation strategy (for 2026-2030) with the Digital Decade

targets.

Funding & projects for digital

Greece allocates 21% of its total recovery and resilience plan to digital (EUR 7.4 billion)1. In addition,

under cohesion policy, EUR 2.7 billion, representing 13% of the country’s total cohesion policy funding,

is dedicated to advancing Greece’s digital transformation2.

Greece is a member of the ‘Alliance for Language Technologies’ European Digital Infrastructure

Consortium (EDIC) and of the EUROPEUM EDIC for blockchain. The country is directly participating in

the important project of common European interest on Microelectronics and Communication

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery

and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-

2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion

Fund, the European Social Fund Plus, and the Just Transition Fund.

5

Greece

Technologies (IPCEI-ME/CT). Greece is also a participating state in the EuroHPC Joint Undertaking (JU)

and of the Chips JU.

Greece has contributed to the Best Practice Accelerator3 by sharing one best practice in the ‘Digital

Skills’ cluster: ‘Training Civil Servants in Cloud Computing Technologies’ and one best practice in the

‘Uptake of Digital Technologies’ cluster: ‘the Greek Data Strategy and Interoperability’.

Digital rights and principles

According to a support study, Greece has been relatively active in implementing the European

Declaration on Digital Rights and Principles, with 43 initiatives overall but no new initiatives launched

in 2024. Greece is most active in digital education, training and skills while less activity has been

identified with regards to Sustainability. Measures regarding sustainability appear to have most

impact on the ground, in contrast to those addressing the participation in the digital public space.

Recommendations

- ICT specialists: continue to explore options focusing on raising the number of ICT specialists in

employment.

- Basic digital skills: address the large digital gap in basic digital skills, between age groups and

between rural and urban areas.

- Digital public services: address all the dimensions of online public services for citizens and

businesses, including the cross-border dimension.

- Uptake of digital technologies by businesses: further develop the ecosystem and raise awareness

of existing opportunities and resources for businesses to benefit from advanced digital

technologies - such as AI - and from access to innovative process (e.g. through the European

Digital Innovation Hubs (EDIHs).

- e-ID: notify an e-ID scheme to the Commission.

- Smart greening: make efforts to leverage digital technologies for smart greening in additional

sectors of the economy (e.g. transport, buildings and agriculture).

3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital Skills, Green IT, and the Uptake of Digital Technologies.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 14

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Hungary

SHORT COUNTRY REPORTS 2025

2

Hungary

Executive summary Hungary boasts a very good digital infrastructure, but it still lags behind in the digitalisation of

businesses despite recent progress, while access to e-Health records is above the EU average.

Hungary shows a moderate level of ambition in its contribution to the Digital Decade having set 14

national targets, 43% of which are fully aligned with the EU 2030 targets. The country is following

its trajectories well with 75% of them being on track (on the basis of the 2024 trajectories defined

for all 8 KPIs analysed). Hungary addressed 13% of the 16 recommendations issued by the

Commission in 2024 by making some changes through new measures.

In 2024, Hungary continued to make progress increasing broadband connectivity, expanding basic 5G

coverage, and driving digitalisation in SMEs, in particular the adoption of cloud. However, significant

challenges persist in the area of digital skills, especially in the adoption of advanced technologies such

as AI by Hungarian enterprises. Hungary’s digital policies are focused on improving digitalising key

public services and boosting digital skills.

Digital Decade KPI (1)

Hungary EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025 Annual

progress HU EU

Fixed Very High Capacity Network (VHCN) coverage 84.1% 86.0% 2.2% 86.0% 82.5% 4.9% 97.0% 100%

Fibre to the Premises (FTTP) coverage 76.2% 79.9% 4.9% 80.0% 69.2% 8.4% 95.0% -

Overall 5G coverage 83.7% 85.6% 2.3% 70.0% 94.3% 5.9% 99.0% 100%

Edge Nodes (estimate) 8 16 100.0% 16 2257 90.5% 82 10000

SMEs with at least a basic level of digital intensity (2) - 57.4% 5.4% - 72.9% 2.8% 89.0% 90%

Cloud 37.1% 39.8% 7.2% - - - 75.0% 75%

Artificial Intelligence 3.7% 7.4% 101.4% 7.5% 13.5% 67.2% 24.0% 75%

Data analytics 53.2% - - - - - 75.0% 75%

AI or Cloud or Data analytics 65.6% - - - - - - 75%

Unicorns 0 0 - 286 4.4% 2 500

At least basic digital skills 58.9% - - - - - 70.0% 80%

ICT specialists 4.2% 4.5% 7.1% 4.9% 5.0% 4.2% 8.3% ~10%

eID scheme notification No

Digital public services for citizens 73.4 77.7 5.9% 76.8 82.3 3.6% 96.3 100

Digital public services for businesses 74.9 80.0 6.9% 80.6 86.2 0.9% 97.2 100

Access to e-Health records 86.0 86.0 0.0% 94.3 82.7 4.5% 100.0 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports the version 4 of the Digital Intensity Index, that is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory that is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024)

According to the 2025 special Eurobarometer on the Digital Decade, 81% of Hungarians consider that

the digitalisation of daily public and private services is making their lives easier. On the action of the

public authorities, 91% consider it important to counter and mitigate the issue of fake news and

disinformation online. And on competitiveness, 90% consider it important to ensure that European

companies can grow and become ’European Champions’ capable of competing globally.

3

Hungary

A competitive, sovereign, and resilient EU based on technological

leadership

Hungary is equipped with solid digital infrastructures and continued to progress on deployment. It

should, however, focus more on the deployment of AI technologies. On infrastructures, Hungary is

above the EU average for very high capacity networks (VHCN) and is also very close to the EU’s average

for 5G coverage. Despite the continued increase in the take-up of advanced technologies, most

businesses, in particular SMEs, are not yet reaping all the benefits, due to a lack of digital skills. This in

turn has a negative impact on the competitiveness of the economy. A new measure has been added

to the updated national roadmap, focusing on the digitalisation of SMEs. Although Hungarian

employees are less aware of their ICT security-related obligations compared to the EU average,

enterprises in the country tend to experience less incidents related to cyberattacks. However, the

recent hacking of Hungary’s defence procurement agency (VBÜ) by foreign hackers, shows that

Hungary could be victim to similar attacks in the future.

Protecting and empowering EU people and society

Hungary is focusing on further increasing at least basic digital skills among 16-74 year-olds, aiming to

reach 70% by the end of the decade, driven by demographic impacts, public policy measures and

projects. Although the new target is lower than the overall EU target, it is 10 percentage points higher

than the commitment in the previous version of the Hungarian roadmap and is considered to be

feasible within the scope of the existing measures. In terms of ICT specialists, Hungary is making

progress, getting closer to the EU average. Hungary also plans to focus on improving gender

convergence and the proportion of ICT graduates, in which Hungary is currently ahead of the EU

average. Hungary has not yet notified an e-ID scheme to the Commission under the eIDAS regulation.

The country plans to do so in the second half of 2025. This could also help to improve the currently

stagnating indicator for eHealth and the slowly growing indicators for digital public services for citizens

and for businesses.

Leveraging digital transformation for a smart greening

Although, none of the measures planned in Hungary’s national roadmap are specifically aimed at the

green transition, they can contribute indirectly to the uptake of greener technologies due to the nature

of digitalisation. Hungary also contributed with a best practice within the Green IT cluster of the Digital

Decade’s Best Practice Accelerator: all-year waste heat reuse solution of the country’s Hungary’s

largest supercomputer, Komondor.

National digital decade strategic roadmap

Hungary submitted a fully revised national Digital Decade roadmap on 16 May 2025, containing two

additional measures and revised trajectories. It includes reporting on the consultation of stakeholders.

It addresses a substantial number of roadmap recommendations issued in 2024. The updated roadmap

has raised the national targets for fixed VHCN and at least basic digital skills and has provided a target

value for fibre-to-the-promises (FTTP) coverage; however, these national targets are still below the EU-

level targets set for 2030. Additionally, Hungary has increased the 2030 targets for Cloud and Data

analytics to align them with the EU goals for 2030. The target set for the adoption of AI technologies

continues to be significantly below the EU level target (75%), as Hungary aims at a 24% adoption rate

by 2030. The revised roadmap continues to prioritise digital skills and digital infrastructure. It contains

4

Hungary

of 44 measures with a budget of EUR 2.489 billion, comprising EUR 1.822 billion from public budgets

(equivalent to 0.88% of GDP), with the EU being the major contributor towards the public budget. It

still covers all objectives of the Digital Decade such as those relating to the competitiveness,

sovereignty, leadership, and resilience, including cybersecurity.

Funding & projects for digital

Hungary allocates 29% of its total recovery and resilience plan to digital (EUR 1.7 billion)1. In addition,

under cohesion policy, EUR 2.6 billion, representing 12% of the country’s total cohesion policy funding,

is dedicated to advancing Hungary’s digital transformation2. Hungary is a member of the Alliance for

Language Technologies European Digital Infrastructure Consortium (EDIC). Hungary is directly

participating in the Important Project of Common European Interest on Next Generation Cloud

Infrastructure and Services (IPCEI-CIS). Hungarian bodies are indirect and associated partners in the

IPCEI on Microelectronics and Communication Technologies (IPCEI-ME/CT). Hungary is a participating

state of the EuroHPC Joint Undertaking (JU) and of the Chips JU.

Hungary has contributed to the Best Practice Accelerator3, submitting three best practices, one in each

of the Digital Skills, the Business Uptake and the Green IT clusters.

Digital Rights and Principles

According to a support study, Hungary has been relatively active in implementing the European

Declaration on Digital Rights and Principles, with 71 initiatives overall and 2 new initiatives launched

in 2024. Hungary is most active in the area of digital education, training and skills. Less activity has

been identified with regards to interactions with algorithms and artificial intelligence systems.

Measures in the area of putting people at the centre of the digital transformation appear to have most

impact on the ground, in contrast to those addressing sustainability.

Recommendations - Digitalisation of SMEs: Continue efforts through new support programmes and incentives to

accelerate the digital transformation of SMEs, no matter what their size, and increase resources

for existing schemes.

- ICT specialists and advanced skills: Closely monitor implementation of existing measures to boost

the number of ICT specialists in the shorter term and continue measures to increase the

percentage of women in ICT careers; increase efforts to reduce the cybersecurity skills gap.

- e-ID: Notify an e-ID scheme under the eIDAS Regulation to the Commission.

- Advanced technologies take-up: Support the adoption of advanced digital technologies (with a

particular attention to AI and cloud) by enterprises via the creation of local ecosystems that

enables technologies and best practices to be spread across the whole business sector.

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital Skills, Green IT, and the Uptake of Digital Technologies.

5

Hungary

- Basic digital skills: Accelerate the country’s efforts to bridge the digital divide by developing and

investing in inclusion policies that focus on vulnerable groups, such as those with lower levels of

formal education and those living in rural areas.

- Cybersecurity: Continue efforts to address evolving threats, particularly for enterprises and

administration.

- Digital public services: Speed up the digitalisation of public services for citizens and businesses.

- e-Health: Make the data type of medical images available to citizens through the country’s online

access service, expand the availability of health data by onboarding public and private geriatric

nursing homes, strengthen the authentication method for logging in to the online access service

by using a notified or pre-notified eID scheme and ensure that all access modes comply with web

accessibility guidelines.

- Smart greening: Support digital players to accelerate the transition of their network

infrastructure to greener, less energy intensive solutions.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 15

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Ireland

SHORT COUNTRY REPORTS 2025

1

Ireland

Executive summary Ireland shows good progress in digital infrastructure and should further improve access to e-health

records building on visible progress made in 2024. The country positions itself as a cybersecurity

leader, particularly through strong implementation of the 5G Cybersecurity Toolbox and public

cloud control investments.

Ireland shows a high level of ambition in its contribution to the Digital Decade, having set 11 national

targets, 91% of which are very well aligned with the EU's 2030 targets. The country is following its

trajectories moderately well, with 50% of them being on track (on the basis of the 2024 trajectories

defined for 6 KPIs out of 8 analysed). Ireland addressed 64% of the 11 recommendations issued by

the Commission in 2024, either by implementing significant policy changes (9%) or making some

changes (55%) through new measures.

Fibre and very high-capacity network (VHCN) coverage continued to register strong growth in 2024,

including in rural areas, and 5G coverage reached 89.9%, approaching 90%. The digitalisation of SMEs

remains just above the EU average, while adoption of advanced technologies, such as AI, is broadly in

line with the EU average. Ireland piloted the European Digital Identity Wallet and advanced the

preparations for its eIDAS notification. The country also expanded initiatives to reduce the

environmental footprint of public sector digital infrastructure, including by creating a new public

service data centre and promoting green public procurement. Cyber resilience efforts were extended

to SMEs and key sectors, with targeted actions in the health system.

Digital Decade KPI (1)

Ireland EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025 Annual

progress IE EU

Fixed Very High Capacity Network (VHCN) coverage 78.5% 87.2% 11.0% 93.5% 82.5% 4.9% 100.0% 100%

Fibre to the Premises (FTTP) coverage 61.6% 73.5% 19.3% - 69.2% 8.4% - -

Overall 5G coverage 85.3% 89.9% 5.4% 87.1% 94.3% 5.9% 100.0% 100%

Edge Nodes (estimate) 20 39 95.0% 18 2 257 90.5% - 10 000

SMEs with at least a basic level of digital intensity (2) - 73.4% -0.5% - 72.9% 2.8% 90.0% 90%

Cloud 53.1% - - - - - 75.0% 75%

Artificial Intelligence 8.0% 14.9% 86.0% 18.0% 13.5% 67.2% 75.0% 75%

Data analytics 37.1% - - - - - 75.0% 75%

AI or Cloud or Data analytics 64.1% - - - - - - 75%

Unicorns 12 13 8.3% - 286 4.4% - 500

At least basic digital skills 72.9% - - - - - 80.0% 80%

ICT specialists 6.2% 6.3% 1.6% 7.5% 5.0% 4.2% 9.6% ~10%

eID scheme notification No

Digital public services for citizens 81.2 87.1 7.2% 82.0 82.3 3.6% 100.0 100

Digital public services for businesses 100.0 100.0 0.0% 100.0 86.2 0.9% 100.0 100

Access to e-Health records 11.4 24.5 115.8% - 82.7 4.5% 80.0 100

(1) See the methodological note for the description of the indicators and other metrics. (2) DESI 2025 reports Version 4 of the Digital Intensity Index, which is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of annual progress. It is not comparable to the national trajectory, which is based on Version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI 2025 (year 2024).

2

Ireland

According to the 2025 special Eurobarometer on the Digital Decade, 77% of Irish people consider

that the digitalisation of daily public and private services is making their lives easier. On the action of

the public authorities, 92% consider it important to counter and mitigate the issue of fake news and

disinformation online. And on competitiveness, 93% consider it important to ensure that European

companies can grow and become ‘European Champions’ capable of competing globally.

A competitive, sovereign, and resilient EU based on technological leadership

Ireland’s strong digital economy, driven by a dynamic ICT sector and a vibrant start-up ecosystem,

benefits from high foreign direct investment and proactive innovation policies. Fixed infrastructure

indicators (VHCN, fibre to the premises (FTTP)) are above the EU average, and Ireland is consolidating

its role as a strategic digital gateway. 5G deployment continues steadily, although deployments in the

3.6 GHz band remain limited and there is a lack of demand for spectrum in the 26 GHz band. Ireland

maintains a high level of SME digitalisation, but growth has been stagnating since 2022. Nevertheless,

the uptake of advanced technologies, such as cloud, AI, and data analytics, remains strong. National

strategies on semiconductors, edge computing, and quantum technologies advance the country's

technological leadership. Moreover, cybersecurity resilience is being strengthened through targeted

initiatives across enterprises and critical infrastructure.

Protecting and empowering EU people and society

Ireland continues to perform strongly on digital skills and gender inclusion, with one of the narrowest

rural-urban divides in the EU. However, significant disparities persist across education levels. Growth

in the number of ICT workers remains modest, and a decline in employer-led training may undermine

long-term readiness. Digital public services are a national strength, particularly for businesses, but

further back-end integration is needed to improve efficiency and accessibility. Ireland advanced its eID

roll-out and digital health strategy in 2024; however, access to electronic health records remains

limited, and onboarding healthcare providers is at an early stage. Progress on online safety, media

regulation, and electoral integrity accelerated, strengthening Ireland’s commitment to a human-

centric and trusted digital environment. Complementary tools provided by the national regulator,

including broadband availability checkers, telecom comparison platforms, and anti-scam measures,

further support digital empowerment and consumer protection.

Leveraging digital transformation for a smart greening

Ireland is strengthening the link between digital innovation and sustainability, with public strategies

promoting energy-efficient infrastructure, green procurement, and support to SMEs’ sustainable

adoption of digital technologies. Projects, like Build Digital, and the Digital Transition Fund are

advancing the decarbonisation of key sectors, and new policies encourage environmental criteria in

ICT and construction. However, the absence of a unified system to monitor emissions reductions with

digital solutions is still an issue. Green skills development has also been prioritised to ensure workers

are ready for the twin transitions.

National Digital Decade strategic roadmap

Ireland submitted its adjusted Digital Decade strategic roadmap in November 2024. It expands the

total number of measures to 81, including 22 new initiatives, with a total budget of EUR 9.2 billion, of

which EUR 4.8 billion is from the public budget (equivalent to 0.90% of GDP). Maintaining its original

structure and funding priorities, the roadmap confirms Ireland’s strong focus on SME digitalisation,

public service digitalisation, digital skills, and cybersecurity. Although no new national targets were

3

Ireland

introduced, Ireland reiterated its commitment to gigabit coverage by 2028 and sustained investment

in digital inclusion and connectivity. Based on the national strategy, Harnessing Digital, the roadmap

continues to prioritise digital infrastructure, digital skills, cybersecurity, and support for innovation

and scale-ups. All targets align with the EU's 2030 goals, except the one access to e-Health records

(80% compared to the EU objective of 100%). Ireland has made some efforts to follow up the 2024

roadmap recommendations through new policy measures and updates.

Funding & projects for digital

Ireland allocates 34% of its total recovery and resilience plan to digital (EUR 312 million)1. In addition,

under cohesion policy, EUR 54 million, representing 5% of the country’s total cohesion policy funding,

is dedicated to advancing Ireland’s digital transformation2.

Ireland is a member of the Alliance for Language Technologies European Digital Infrastructure

Consortium (EDIC) and of the Local Digital Twins towards the CitiVERSE EDIC. Ireland is directly

participating in the Important Project of Common European Interest on Microelectronics and

Communication Technologies (IPCEI-ME/CT). It is also a participating state of the EuroHPC Joint

Undertaking (JU) and of the Chips JU.

Ireland has contributed to the Digital Decade’s Best Practice Accelerator3 by sharing four practices,

including three in the Digital Skills cluster (SuCcES, INGENIC, and TU Dublin’s mentoring model for

women in ICT) and one on the green transition (Build Digital). These initiatives reflect Ireland’s

strategic focus on skills, innovation, and sustainable infrastructure.

Digital rights and principles

According to a monitoring study, Ireland has been relatively active in implementing the European

Declaration on Digital Rights and Principles, with 89 initiatives overall and 4 new initiatives launched

in 2024. Ireland is most active in the area of digital education, training and skills. Less activity has been

identified with regards to a fair digital environment and sustainability. Measures in the area of putting

people at the centre of the digital transformation appear to have most impact on the ground, in

contrast to those addressing freedom of choice.

Recommendations

- e-Health: Accelerate the onboarding of healthcare providers and enable full access to electronic

health records for everyone, including legal guardians and authorised persons, building on the

implementation of the national Digital Health Strategy.

- Artificial intelligence: Continue to support applied AI innovation and skills development to

strengthen Ireland’s leadership in responsible, human-centric AI and accelerate its adoption by

SMEs.

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery

and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-

2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion

Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges

encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member

States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital

Skills, Green IT, and the Uptake of Digital Technologies.

4

Ireland

- Cybersecurity: Strengthen efforts to address evolving threats, particularly for SMEs and public

services.

- ICT specialists and advanced skills: make digital training and reskilling opportunities more

accessible and more relevant to job market needs. Address the stagnation in gender participation

in the digital sector through dedicated national measures.

- Take-up of advanced technologies: Support the adoption of advanced digital technologies

(particularly AI and cloud) by businesses through the creation of regional ecosystems and industrial

use-case pilots. Encourage the use of sovereign European solutions.

- SMEs: Improve the digitalisation of SMEs, including by prioritising support to those with lower

levels of digital maturity, regardless of their size. Ensure the continuity of existing schemes beyond

their current RRF funding.

- 5G: Encourage the assignment of 5G mid-band spectrum and promote the deployment of stand-

alone 5G networks and industrial use cases, including in rural and underserved areas.

- eID: Notify an eID scheme under the eIDAS Regulation to the Commission.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 16

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Italy

SHORT COUNTRY REPORTS 2025

1

Italy Italy

Executive summary Italy has made remarkable progress in enhancing digital infrastructure and digital public services,

but continues to face challenges in AI adoption and startup growth, while maintaining a leading role

in strategic technologies like quantum and semiconductors. Italy shows a substantial level of

ambition in its contribution to the Digital Decade, having set 14 national targets, 79% of which

aligned with the EU 2030 targets. The country is following its trajectories very well with 100% of

them being on track (considering the 2024 trajectories defined for 7 key performance indicators

(KPIs) out of 8 analysed). Italy addressed 69% of the 13 recommendations issued by the Commission

in 2024 by making some changes through new measures.

In 2024, Italy made advances in developing its digital infrastructure, particularly through increased

fibre-to-the-premises (FTTP) coverage, and progressively achieved significant results in the

digitalisation of public services and in the area of eHealth. However, the country continues to lag

behind in the adoption of advanced digital technologies such as artificial intelligence and its ecosystem

for innovative start-ups and scale-ups remains relatively underdeveloped. On the other hand, Italy

holds a leading position in strategic technologies, having launched a Quantum strategy and actively

working on a semiconductors strategy, highlighting a commitment to gain technological leadership.

Digital Decade KPI (1)

Italy EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025 Annual

progress IT EU

Fixed Very High Capacity Network (VHCN) coverage 59.6% 70.7% 18.6% 66.0% 82.5% 4.9% 100.0% 100%

Fibre to the Premises (FTTP) coverage 59.6% 70.7% 18.6% 66.0% 69.2% 8.4% 100.0% -

Overall 5G coverage 99.5% 99.5% 0.0% 99.6% 94.3% 5.9% 100.0% 100%

Edge Nodes (estimate) 74 152 105.4% 158 2257 90.5% 946 10000

SMEs with at least a basic level of digital intensity (2) - 70.2% 0.2% - 72.9% 2.8% 90.0% 90%

Cloud 55.1% - - - - - 74.0% 75%

Artificial Intelligence 5.1% 8.2% 62.4% 8.0% 13.5% 67.2% 60.0% 75%

Data analytics 26.6% - - - - - 60.0% 75%

AI or Cloud or Data analytics 63.1% - - - - - - 75%

Unicorns 8 9 12.5% 2 286 4.4% 16 500

At least basic digital skills 45.8% - - - - - 80.1% 80%

ICT specialists 4.1% 4.0% -2.4% - 5.0% 4.2% 8.4% ~10%

eID scheme notification Yes

Digital public services for citizens 68.3 83.6 22.4% 69.0 82.3 3.6% 100.0 100

Digital public services for businesses 76.3 80.9 6.1% 78.0 86.2 0.9% 100.0 100

Access to e-Health records 82.7 84.1 1.7% 74.0 82.7 4.5% 100.0 100

(1) See the methodological note for the description of the indicators and other metrics. (2) DESI 2025 reports the version 4 of the Digital Intensity Index, that is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory that is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024).

According to the special Eurobarometer on ‘the Digital Decade’ 2025, 73% of Italian citizens consider

that the digitalisation of daily public and private services is making their lives easier. 90% consider it

important to counter and mitigate the issue of fake news and disinformation online, and regarding

2

Italy Italy

competitiveness, 90% consider it important to ensure that European companies can grow and become

‘European Champions’ able to compete globally.

A competitive, sovereign, and resilient EU based on technological

leadership

Italy has made notable progress in fiber-to-the-premises (FTTP), increasing coverage by 11 percentage

points between 2023 and 2024 and reaching the EU average. The country also holds a strong position

in the digitalization of small and medium enterprises (SMEs), with most achieving at least a basic level

of digital intensity. However, despite increased adoption of artificial intelligence and being on track

with the national trajectory set, Italy still falls behind in this area. The start-up ecosystem remains

underdeveloped, with only nine unicorns — an increase of just one compared to last year — which

does not reflect the size of the Italian economy. The recent announcement of a quantum strategy is

expected to significantly drive further progress in this sector. Alongside this, ongoing efforts to

develop a semiconductors strategy reflect Italy’s dedication to further strengthening its position in

these areas. Several initiatives are also in progress to enhance the country’s cybersecurity capabilities,

including the strengthening of monitoring, analysis and response capabilities, and skills development.

Protecting and empowering EU people and society

Italy is confronted with issues concerning digital skills, with gaps affecting in particular people with

lower education levels but extending also to young people – a primary target of the national Recovery

and Resilience Plan (RRP) measures in this area. Italy is also faced with a low share of ICT specialists in

total employment, which stood at 4% in 2024, below the EU's 5%. The digitalisation of public services

has advanced significantly, with the progressive implementation of key measures and efforts to

increase interoperability and usability (e.g. better user experience, adoption of PagoPA and the IO

app, deployment of the National Digital Data Platform - PDND). In the framework of the EU Digital

Identity Wallet, the country has also initiated the development of its IT-Wallet, with the first pilots

made available to the public through the app IO, where users could access and use some initial

documents (e.g. driving licence). Furthermore, Italy is working to boost citizens’ basic digital skills

through initiatives such as the network of digital facilitation services and digital civic service (both

supported by the RRP), combat disinformation, enhance media literacy, and ensure online safety,

particularly for minors.

Leveraging digital transformation for a smart greening

Green and digital priorities have received increased attention, in part due to the RRP and its

RePowerEU chapter. In 2024, impulse was given to the implementation of ‘Transition 5.0’, aiming to

accelerate the industry transition to an energy-efficient, sustainable, and renewable-based production

model. However, the available data shows a modest take-up of the measure.

National digital decade strategic roadmap

Italy submitted an adjustment, containing five additional measures and revised trajectories.

Stakeholders were consulted. It addresses a substantial number of the roadmap recommendations

issued in 2024. All targets align with the EU level goals for 2030, except for the adoption of AI and data

analytics, where the country aims for 60% adoption (instead of 75%) by 2030. The roadmap is very

comprehensive, and the focus is on improving digital skills, ICT specialists and digital public services.

Some areas, such as unicorns and uptake of AI, lack targeted measures. Overall, the Italian roadmap

3

Italy Italy

is composed of 67 measures with a budget of EUR 62.3 billion, equivalent to 2.84% of gross domestic

product (GDP).

Funding & projects for digital

Italy allocates 26% of its total recovery and resilience plan to digital (EUR 46.8 billion)1. In addition,

under cohesion policy, EUR 4.9 billion, representing 11% of the country’s total cohesion policy funding,

is dedicated to advancing Italy’s digital transformation2. Italy is a member of the three established

European Digital Infrastructure Consortia (EDICs): the Alliance for Language Technologies EDIC, the

Local Digital Twins towards the CitiVERSE EDIC and of the EUROPEUM EDIC. Italy is directly

participating in the IPCEI on Microelectronics and Communication Technologies (IPCEI-ME/CT) and in

the IPCEI on Next Generation Cloud Infrastructure and Services (IPCEI-CIS). Italy is also a participating

state of the EuroHPC Joint Undertaking (JU) and of the Chips JU.

Italy has contributed to the Best Practice Accelerator3 by sharing three best practices in the frame of

the Digital Skills cluster (network of digital facilitation services, the digital civic service and fund for

Repubblica Digitale).

Digital Rights and Principles

According to a support study, Italy has been one of the most active Member States in implementing

the European Declaration on Digital Rights and Principles, with over 100 initiatives overall and 12

new initiatives launched in 2024. Italy is most active in the area of digital education, training and skills.

Less activity has been identified with regards to protection and empowerment of children and young

people in the digital environment. Measures in the area of putting people at the centre of the digital

transformation appear to have most impact on the ground, in contrast to those addressing safety,

security and empowerment.

Recommendations

- Artificial Intelligence: Step up efforts to acquire a leadership position in the area of AI, also

leveraging the existing centres of expertise and capabilities, including in the area of

supercomputing.

- Innovation ecosystems: Boost innovation in the area of digital technologies by enhancing the

national ecosystem, from research/university to technology transfer centres, start-ups and scale-

ups, and considering targeted incentives for key strategic sectors.

- SMEs and Advanced technologies take-up: Support the efforts to build a strong network of

technology transfer services, maintaining a nationwide presence, increasing the emphasis on

key technologies like AI.

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery

and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the

2021-2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the

Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and

challenges encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made

available to Member States via the BPA Repository and showcased in regular workshops, currently focused on three

thematic clusters: Digital Skills, Green IT, and the Uptake of Digital Technologies.

4

Italy Italy

- Basic digital skills: Strengthen training opportunities and support services for all population

groups, reinforce education on digital skills in schools and incentivise reskilling and upskilling for

workers.

- ICT Specialists: Expand ICT higher education and align it with labour market needs, promote

women's participation in ICT education and careers, and introduce measures to attract and

retain ICT professionals.

- Cybersecurity: Improve cybersecurity priorities in view of evolving threats, building capacity in

both enterprises and public administrations.

- Connectivity: Continue the efforts to deploy connectivity infrastructure, particularly FTTP, across

the whole country and including in sparsely populated areas, and consider using take up as a

driver for deployment.

- Digital Public Services: Maintain momentum in deploying digital public services, focusing on

simplification and take-up by users.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 17

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Latvia

SHORT COUNTRY REPORTS 2025

LatF

1

Latvia

Executive summary Latvia can rely on good digitalisation of public services for businesses, and citizens, but lags behind

on 5G, fibre-to-the-premises, and very high-capacity networks, while having a high access to health

records.

In its national roadmap and roadmap adjustment, Latvia shows a substantial level of ambition in its

contribution to the Digital Decade having set 14 national targets, 86% of which are aligned with the

EU 2030 targets. The country is following its trajectories moderately well with 50% of them on track

(on the basis of the 2024 trajectories defined for 8 KPIs out of 8 analysed). Latvia addressed 84% of

the 13 recommendations issued by the Commission in 2024, either by implementing significant

policy changes (15%) or making some changes (69%) through new measures.

In 2024, gigabit connectivity and 5G remain below the EU average. Digitalisation of SMEs and the

adoption of advanced digital technologies by businesses are a priority of the Latvian recovery and

resilience plan. Latvia’s overarching Cybersecurity Strategy 2023-2026 continues to guide its overall

approach to cybersecurity.

Digital Decade KPI (1)

Latvia EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025 Annual

progress LV EU

Fixed Very High Capacity Network (VHCN) coverage 68.0% 68.1% 0.2% 74.0% 82.5% 4.9% 100.0% 100%

Fibre to the Premises (FTTP) coverage 61.9% 61.1% -1.2% 74.0% 69.2% 8.4% 100.0% -

Overall 5G coverage 53.1% 71.1% 33.9% 55.5% 94.3% 5.9% 70.0% 100%

Edge Nodes (estimate) 5 10 100.0% 0 2257 90.5% 51 10000

SMEs with at least a basic level of digital intensity (2) - 59.2% 6.4% - 72.9% 2.8% 90.0% 90%

Cloud 29.0% - - - - - 75.0% 75%

Artificial Intelligence 4.5% 8.8% 94.9% 13.0% 13.5% 67.2% 75.0% 75%

Data analytics 36.9% - - - - - 75.0% 75%

AI or Cloud or Data analytics 48.2% - - - - - - 75%

Unicorns 0 0 - 286 4.4% 2 500

At least basic digital skills 45.3% - - - - - 70.0% 80%

ICT specialists 4.4% 4.9% 11.4% 5.4% 5.0% 4.2% 10.0% ~10%

eID scheme notification Yes

Digital public services for citizens 88.2 93.5 6.0% 88.0 82.3 3.6% 100.0 100

Digital public services for businesses 87.2 96.3 10.4% 87.0 86.2 0.9% 100.0 100

Access to e-Health records 84.8 85.9 1.2% 80.0 82.7 4.5% 100.0 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports the version 4 of the Digital Intensity Index, that is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory that is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024)

According to the special Eurobarometer on ‘the Digital Decade’ 2025, 75% of Latvian citizens consider

that the digitalisation of daily public and private services is making their lives easier. Concerning the

action of the public authorities, 86% consider it important to counter and mitigate the issue of fake

LatF

2

Latvia

news and disinformation online, and regarding competitiveness, 78% consider it important to ensure

that European companies can grow and become ‘European Champions’ able to compete globally.

A competitive, sovereign, and resilient EU based on technological

leadership

Latvia's digital infrastructure coverage remains below the EU average, mainly in VHCN, FTTP and 5G,

even in the context of a strong year-on-year growth in overall 5G coverage. In broadband uptake, 1

Gbps subscriptions are growing faster than the EU, despite slower growth in 100 Mbps subscriptions

and 5G SIM penetration. The country is advancing on deployment of edge nodes and quantum

technologies, but lags on cloud, and AI. There has been a surge in cyber-attacks, totalling 418 325

registered complaints in 2024. Despite this, Latvia demonstrates overall preparedness as none of the

attacks have had a lasting impact.

Protecting and empowering EU people and society

Latvia’s digital skills lagged behind the EU, with only 45.34% of its population having basic digital skills

compared to the EU’s 55.56%. Despite a noticeable gender gap favouring women and strong

collaborative skills, Latvia faces challenges, especially among rural areas and older adults, and remains

below the EU in educational attainment-related digital skills. To address these gaps, initiatives like the

STARS learning account have been launched. In the ICT sector, Latvia has seen a positive increase in

the employment of ICT specialists, especially among women. Despite this, the country’s ICT training

for businesses lags behind the EU average. Latvia excels in digital public services for both citizens and

businesses, surpassing EU growth rates, especially in cross-border services. Latvia’s performs strongly

on digital public services and access to e-health records compared with the EU average. While

strengths are evident, Latvia could benefit from further efforts to close gaps in digital skills, aiming for

broader proficiency across different demographic groups.

Leveraging digital transformation for a smart greening

Latvia prioritises the promotion of energy and material efficiency in digital infrastructure, aiming to

minimise its environmental impact by creating data centres that will run on 100% renewable energy.

In addition, it is focusing on introducing smart digital solutions that in turn will reduce the country’s

carbon footprint.

National digital decade strategic roadmap

Latvia submitted an adjusted Digital Decade roadmap on 11 February 2025. The adjusted roadmap

contains new 43 measures, 2 new targets and 4 revised trajectories. It includes reporting on the

consultation of stakeholders but lacks information on how their comments were considered. The

updates are clearly aligned with the new Commission’s priorities on gigabit connectivity and 5G. The

adjusted roadmap addresses a substantial number of roadmap recommendations issued in 2024. All

targets are aligned with the EU-level goals for 2030, except for the target for at least basic digital skills,

where Latvia is aiming for 70% instead of 80% by 2030. The adjusted roadmap continues to prioritise

AI, the digitalisation of public services, and tech uptake. It contains 90 measures, with a budget of EUR

2 287.5 million, including EUR 2 004.8 million from the public budget (equivalent to 4.99% of the

country’s GDP). It still covers all Digital Decade objectives, such as a human-centred digital space,

boosting resilience and security, promoting sovereignty and greening digital technology.

LatF

3

Latvia

Funding & projects for digital

Latvia allocates 23% of its total recovery and resilience plan to digital (EUR 416 million)1. In addition,

under cohesion policy, EUR 441million, representing 10% of the country’s total cohesion policy

funding, is dedicated to advancing Latvia’s digital transformation2.

Latvia is a member of the Alliance for Language Technologies EDIC and of the Local Digital Twins

towards the CitiVERSE EDIC. Latvian organisations are indirect and/or associated partners in the

Important Project of Common European Interest (IPCEI) on Microelectronics and Communication

Technologies (IPCEI-ME/CT) and in the IPCEI on Next Generation Cloud Infrastructure and Services

(IPCEI-CIS). Latvia is also a participating state in the EuroHPC Joint Undertaking (JU) and in the Chips

JU.

Latvia has not yet presented any measure in the framework of Digital Decade’s Best Practice

Accelerator3.

Digital Rights and Principles

According to a support study, Latvia has shown rather limited activity in the European Declaration on

Digital Rights and Principles, with 34 initiatives overall and 2 new initiatives launched in 2024. Latvia

is most active in the area of interactions with algorithms and artificial intelligence systems. Less activity

has been identified with regards to putting people at the centre of the digital transformation,

connectivity and sustainability. Measures in the area of putting people at the centre of the digital

transformation appear to have most impact on the ground, in contrast to those addressing freedom

of choice.

Recommendations

- Digital skills: Strengthen and continue to implement measures to increase digital skills across all

ages with a special emphasis on people living in rural areas and those with lower educational

background.

- Connectivity: Sustain the ongoing effort and establish new measures to support VHCN, FTTP, and

5G coverage.

- SMEs: Sustain and complement activities to improve the digitalisation and uptake of advanced

technologies, emphasising the take-up of advanced technologies and give special attention to

SMEs.

- Cybersecurity: Continue efforts in cybersecurity to address the evolving and increasing threats.

Ensure introduction and continuation of implementation of cybersecurity education, especially at

undergraduate level.

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery

and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the

2021-2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the

Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges

encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member

States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital

Skills, Green IT, and the Uptake of Digital Technologies.

LatF

4

Latvia

- E-health: Ensure that all data types are made available in a timely manner. Offer a mobile

application for citizens to access their electronic health records. Connect more private

rehabilitation centres to the online access service.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 18

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Lithuania

SHORT COUNTRY REPORTS 2025

2

Lithuania

Executive summary Lithuania benefits from excellent 5G coverage and a dynamic start-up ecosystem but continues to

face challenges in expanding fixed Very High-Capacity Networks (VHCN) coverage, particularly in

rural areas. The country is positioning itself as a niche player in semiconductor and quantum-related

technologies, leveraging its strong laser industry.

Lithuania shows a high level of ambition in its contribution to the Digital Decade having set 12

national targets, 92% of which are aligned with the EU 2030 targets. The country is following its

trajectories moderately well with 71% of them being on track (on the basis of the 2024 trajectories

defined for 7 KPIs out of 8 analysed). Lithuania addressed 25% of the 8 recommendations issued by

the Commission in 2024 by making some changes through new measures.

Lithuania demonstrates strong performance in mobile connectivity, with near universal 5G coverage

and continued infrastructure investment. However, fixed broadband deployment remains uneven,

particularly in rural areas. SME adoption of advanced digital technologies such as cloud, AI, and data

analytics continues to lag despite targeted support schemes. The start-up ecosystem is growing,

though scale-up activity and access to private capital remain modest. In 2024, Lithuania maintained

high digital public service availability, supported by centralised platforms and a mature eHealth system.

Digital skills development is supported through national programmes focused on vulnerable and

underrepresented groups. On sustainability, the country is piloting digital tools for climate action

through startup funding and cleantech initiatives, though a comprehensive green-digital strategy has

yet to emerge. In Lithuania cybersecurity is a strategic priority, reinforced by the national programme

and the implementation of 5G Toolbox.

Digital Decade KPI (1)

Lithuania EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025

Annual progress LT EU

Fixed Very High Capacity Network (VHCN) coverage 78.1% 78.3% 0.3% 84.0% 82.5% 4.9% 98.0% 100%

Fibre to the Premises (FTTP) coverage 78.1% 78.3% 0.3% - 69.2% 8.4% - -

Overall 5G coverage 98.9% 99.7% 0.9% 92.0% 94.3% 5.9% 100.0% 100%

Edge Nodes (estimate) 5 10 100.0% - 2257 90.5% - 10000

SMEs with at least a basic level of digital intensity (2) - 66.3% 2.0% - 72.9% 2.8% 90.0% 90%

Cloud 33.6% - - - - - 75.0% 75%

Artificial Intelligence 4.9% 8.8% 80.2% 12.0% 13.5% 67.2% 75.0% 75%

Data analytics 40.5% - - - - - 75.0% 75%

AI or Cloud or Data analytics 53.5% - - - - - - 75%

Unicorns 3 3 0.0% 3 286 4.4% 6 500

At least basic digital skills 52.9% - - - - - 80.0% 80%

ICT specialists 4.9% 5.3% 8.2% 5.3% 5.0% 4.2% 6.9% ~10%

eID scheme notification Yes

Digital public services for citizens 86.7 87.9 1.3% 86.0 82.3 3.6% 100.0 100

Digital public services for businesses 95.9 92.5 -3.6% 95.0 86.2 0.9% 100.0 100

Access to e-Health records 95.4 95.4 0.0% 100.0 82.7 4.5% 100.0 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports the version 4 of the Digital Intensity Index, that is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory that is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024)

3

Lithuania

According to the 2025 special Eurobarometer on ‘the Digital Decade’, 77% of Lithuanian citizens

consider that the digitalisation of daily public and private services is making their lives easier. On the

action of the public authorities, 90% consider it important to counter and mitigate the issue of fake

news and disinformation online. And on competitiveness, 79% consider it important to ensure that

European companies can grow and become ‘European Champions’ capable of competing globally.

A competitive, sovereign, and resilient EU based on technological

leadership

In 2024, Lithuania reinforced its position as a regional frontrunner in mobile connectivity, reaching

near-universal 5G coverage across households. However, fixed Very High-Capacity Network (VHCN)

deployment, particularly fibre in rural areas, continues to require targeted public investment. Two

major state-funded projects, supported by the RRF and ERDF, are underway to expand VHCN

infrastructure, with over 2 000 km of fibre and 60 new towers planned. To accelerate enterprise

digitalisation, Lithuania scaled up support through Measure VST-1. (‘To encourage the digitalisation of

businesses’) notably relying on digital vouchers for SMEs, accelerators, and the national network of

EDIHs. However, adoption of AI, cloud, and data analytics remains uneven, with surveys highlighting

procedural complexity and lack of digital awareness. The country deepened its role in emerging

technologies through the GreenTech Hub and laser-based contributions to semiconductors and

quantum, as well as its commitment to the ALT-EDIC. Cybersecurity was significantly strengthened with

the full transposition of NIS2, a national programme focused on 5G network trustworthiness, and

growing investment in public sector cyber resilience.

Protecting and empowering EU people and society

Lithuania continues to perform strongly in digital public services, with high levels of availability for

both citizens and businesses. Access to eHealth records remains among the highest in the EU, and

ongoing reforms to the Electronic Health Services system aim to expand coverage and improve data

interoperability. While ICT specialist employment rose in 2024, demographic pressures and reliance

on foreign talent remain key structural challenges. Measures supporting talent development include

vocational retraining, the Talent-Reach initiative, and Diaspora Youth Traineeships. On digital inclusion,

Lithuania has significantly invested in programmes targeting older adults and vulnerable groups,

including the national “No One Left Behind” campaign and education efforts led by NGOs and

Universities of the Third Age. These are complemented by training initiatives under the roadmap, such

as EdTech for teachers and skills development schemes for low-skilled adults, yet further acceleration

is needed to reach the digital skills target by 2030.

Leveraging digital transformation for a smart greening

Lithuania is at an early stage in aligning its digital and environmental transitions. While it lacks a fully

integrated green-digital strategy, targeted efforts are emerging, particularly through support for

startups developing climate-relevant digital solutions. Measure VST-3 ‘To encourage businesses to

move towards a climate-neutral economy’ has enabled 170 startups to work on tools like AI-based

smart housing systems and automated workflow platforms.

4

Lithuania

The GreenTech Hub is actively strengthening the cleantech ecosystem by guiding companies working

on technologies such as smart grids, e-mobility, and IoT toward EDIH services. Further coordination is

expected under the upcoming National Digital Agenda.

National Digital Decade strategic roadmap

Lithuania submitted its initial national Digital Decade roadmap on 13 March 2024. At the time, digital

policy lacked centralised coordination, with each ministry responsible for its own domain. In response

to challenges identified while preparing the roadmap and the 2024 country report, the government

adopted a resolution in July 2024 to establish a National Digital Agenda for 2026 –2040. This new cross-

cutting strategy aims to centralise governance, align funding, and address gaps in areas such as

semiconductors and edge nodes. An in-depth analysis is being carried out in Q1-Q3 2025 to guide the

Agenda’s development. National authorities intend to adjust the roadmap at a later stage.

A total of 26 measures are part of Lithuanian’s national strategic roadmap with a budget of EUR 1.5

billion (1.9 % of Lithuanian’s GDP in 2024).

Funding & projects for digital

Lithuania allocates 23% of its total recovery and resilience plan to digital (EUR 724 million)1. In addition,

under cohesion policy, EUR 280 million, representing 4% of the country’s total Cohesion policy funding,

is dedicated to advancing Lithuania’s digital transformation2. Lithuania is a member of the Alliance for

Language Technologies EDIC. Lithuania is also a participating state in the EuroHPC Joint Undertaking

(JU) and in the Chips JU.

The country has engaged with the Best Practice Accelerator3 by its presence in the workshops.

Digital Rights and Principles

According to a support study, Lithuania has been relatively active in implementing the European

Declaration on Digital Rights and Principles, with 45 initiatives overall but no new initiatives launched

in 2024. Lithuania is most active in the area of protection and empowerment of children and young

people in the digital environment. Less activity has been identified with regards to a fair digital

environment and a protected, safe and secure digital environment. Measures in the area of putting

people at the centre of the digital transformation appear to have most impact on the ground, in

contrast to those addressing safety, security and empowerment.

Recommendations

- SMEs: Simplify access to SME digitalisation funding by reducing bureaucratic complexity,

improving guidance, and targeting support to low-digital-intensity sectors.

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges

encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital Skills, Green IT, and the Uptake of Digital Technologies

5

Lithuania

- AI: Step up targeted support for the adoption of artificial intelligence, especially among SMEs,

by raising awareness of business-relevant use cases, improving access to advisory services, and

simplifying funding procedures.

- ICT Specialists: Scale efforts in relation to retraining programmes, and female participation in

ICT.

- Cybersecurity: Continue work on cybersecurity to address evolving threats, particularly

regarding citizens awareness.

- VHCN: Expand public support for VHCN deployment, notably in rural areas.

- Green: Adopt an integrated green-digital strategy with measurable targets, establish mechanisms

to monitor environmental impacts, and scale up digital solutions that support climate goals.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 19

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Luxembourg

SHORT COUNTRY REPORTS 2025

2

Luxembourg

Executive summary Luxembourg continues to position itself as a strategic digital hub, backed by strong infrastructure

but facing persistent challenges in SME digital uptake. The country asserts its role as a European

frontrunner in digitalisation, notably through targeted investments in frontier technologies such as

AI, quantum computing, and sovereign cloud.

Luxembourg shows a high level of ambition in its contribution to the Digital Decade having set 12

national targets, 100% of which are aligned with the EU 2030 targets. The country is following its

trajectories well with 75% of them being on track (on the basis of the 2024 trajectories defined for

all 8 KPIs analysed). Luxembourg addressed 71% of the 7 recommendations issued by the

Commission in 2024, either by implementing significant policy changes (57%) or making some

changes (14%) through new measures.

With nearly universal 5G and very high-capacity network (VHCN) coverage, the country sustains a high-

performing digital environment. However significant disparities remain in cloud and data analytics

adoption, particularly among SMEs. While Luxembourg’s startup ecosystem is expanding, it remains

constrained by limited access to private venture capital and a modest pipeline of scale-ups progressing

toward unicorn status. In 2024, Luxembourg maintained strong performance in digital public services

and digital skills, yet persistent gaps remain across age groups, gender, and levels of education. On

sustainability, Luxembourg has launched targeted measures, but an integrated green-digital strategy

is not yet fully articulated in the revised roadmap. Sovereignty and cybersecurity have emerged as

central pillars of Luxembourg’s digital strategy, with an increasing focus on sovereign cloud

infrastructure, open-source security tools, and cross-border data resilience.

Digital Decade KPI (1)

Luxembourg EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025

Annual progress LU EU

Fixed Very High Capacity Network (VHCN) coverage 94.7% 95.2% 0.5% 97.5% 82.5% 4.9% 100.0% 100%

Fibre to the Premises (FTTP) coverage 78.9% 81.8% 3.7% 89.0% 69.2% 8.4% 100.0% -

Overall 5G coverage 99.6% 99.6% 0.0% 97.4% 94.3% 5.9% 100.0% 100%

Edge Nodes (estimate) 10 20 100.0% - 2257 90.5% - 10000

SMEs with at least a basic level of digital intensity (2) - 70.3% 3.0% - 72.9% 2.8% 90.0% 90%

Cloud 32.6% - - - - - 75.0% 75%

Artificial Intelligence 14.5% 23.7% 64.2% 40.6% 13.5% 67.2% 75.0% 75%

Data analytics 32.4% - - - - - 75.0% 75%

AI or Cloud or Data analytics 52.0% - - - - - - 75%

Unicorns 2 2 0.0% - 286 4.4% - 500

At least basic digital skills 60.1% - - - - - 80.0% 80%

ICT specialists 8.0% 8.0% 0.0% 8.3% 5.0% 4.2% 10.0% ~10%

eID scheme notification Yes

Digital public services for citizens 94.8 97.7 3.0% 96.7 82.3 3.6% 100.0 100

Digital public services for businesses 96.7 100.0 3.4% 97.9 86.2 0.9% 100.0 100

Access to e-Health records 76.1 76.1 0.0% 75.0 82.7 4.5% 100.0 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports the version 4 of the Digital Intensity Index, that is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory that is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024)

3

Luxembourg

According to the 2025 special Eurobarometer on ‘the Digital Decade’ 2025, 80% of Luxembourgish

citizens consider that the digitalisation of daily public and private services is making their lives easier.

On the action of the public authorities, 88% consider it important to counter and mitigate the issue of

fake news and disinformation online. And on competitiveness, 86% consider it important to ensure

that European companies can grow and become ‘European Champions’ able of competing globally.

A competitive, sovereign, and resilient EU based on technological

leadership

Luxembourg’s infrastructure performance remains well above the EU average, with near-universal

coverage of VHCN, and 5G thanks to early and well-coordinated public strategies. However, the

digitalisation of enterprises –particularly SMEs –lags behind, hindered by high integration costs and

limited technical capacity. Despite this, Luxembourg shows leadership in AI and quantum computing,

notably through the deployment of MeluXina-AI and its selection for the EU’s AI Factories initiative.

The adjusted roadmap includes measures to foster SME adoption of advanced technologies, including

generative AI. While the startup ecosystem continues to grow, scale-up financing can rely on a number

of public funding schemes but often struggle to access later-stage funding due to the small size of the

market and a limited private risk capital culture. Sovereignty and cybersecurity remain central to

Luxembourg’s digital strategy, with ongoing efforts to reinforce sovereign cloud capabilities, promote

open-source cybersecurity tools through the establishment of an Open Source Program Office (OSPO),

and develop a national cybersecurity tools with dedicated sectoral safeguards, including for

healthcare.

Protecting and empowering EU people and society

Luxembourg maintains high digital skills levels and has the second highest shares of ICT specialist

employment in the EU. However, among people with at least a basic level of digital skills disparities

persists between demographic groups, particularly by age and education. The country is a front-runner

in digital public services, supported by mature platforms like MyGuichet.lu and centralised government

IT architecture. Ongoing efforts focus on reducing administrative complexity and promoting sovereign

digital solutions within the public sector, including GovCloud and open-source adoption. Although

Luxembourg intends to step up its efforts to improve health data interoperability and availability, it

continues to score below the EU average in access to eHealth records.

Leveraging digital transformation for a smart greening

Luxembourg is taking initial steps toward aligning digital and environmental transitions. While not yet

underpinned by a fully integrated green-digital strategy, the country promotes a renewables-based

and intelligent energy system, supports GovCloud sustainability, and is exploring the role of digital

solutions in reducing emissions in mobility and industry. Participation in EU-level initiatives such as the

Green Digital Coalition and IPCEI projects positions Luxembourg to further develop tools and metrics

to measure and reduce the ICT sector’s carbon footprint.

National Digital Decade strategic roadmap

Luxembourg submitted a fully revised national Digital Decade roadmap on 2 December 2024,

containing more than 30 new or edited measures and revised trajectories. The roadmap notably

strengthens the focus on SMEs and AI, with new support tools set to be launched in 2025. It addresses

a substantial number of roadmap recommendations issued in 2024. A total of 98 measures are now

4

Luxembourg

part of Luxembourg’s national strategic roadmap with a budget of EUR 515 million, comprising

EUR 488 million from public sector budgets, equivalent to 0.57% of Luxembourg’s GDP in 2024.

Funding & projects for digital

Luxembourg allocates 38% of its total recovery and resilience plan to digital (EUR 24 million)1. In

addition, under cohesion policy, EUR 6 million, representing 15% of the country’s total Cohesion policy

funding, is dedicated to advancing Luxembourg’s digital transformation2. Luxembourg is a member of

the three established EDICs; the Alliance for Language Technologies EDIC, the Local Digital Twins

towards the CitiVERSE EDIC and of the EUROPEUM EDIC. Luxembourgish entities are indirect partners

in the IPCEI on Next Generation Cloud Infrastructure and Services (IPCEI-CIS). Luxembourg is also a

participating state of the EuroHPC Joint Undertaking (JU) and of the Chips JU.

The country has contributed to the Best Practice Accelerator3 by sharing three best practices. Two of

them are part of the Digital Skills cluster: the Girls in ICT Day national awareness action and Girls

Deploy your Digital Talent. One has been shared in the Green IT Cluster: the Creation and promotion

of Product Circularity Data Sheet (PCDS).

Digital Rights and Principles

According to a support study, Luxembourg has been one of the most active Member States in

implementing the European Declaration on Digital Rights and Principles, with over 100 initiatives

overall and 20 new initiatives launched in 2024. Luxembourg is most active in the area of digital

education, training and skills. Less activity has been identified with regards to a fair digital

environment. Measures in the area of putting people at the centre of the digital transformation appear

to have most impact on the ground, in contrast to those addressing sustainability.

Recommendations

- Digital Skills: Scale up targeted programs to reach older citizens, women, and populations with

lower education background.

- SMEs: Further support the uptake of advanced digital technologies (cloud, AI, data) by SMEs,

who currently lag significantly behind larger enterprises.

- Cybersecurity: Continue efforts in cybersecurity to address evolving threats, particularly

regarding employees’ awareness.

- Green: Adopt an integrated green-digital strategy with measurable targets, leveraging EU tools

to scale up low-carbon digital solutions, especially for SMEs, and implement a national

framework to monitor ICT-enabled emission reductions across key sectors like energy,

transport, and industry.

- FTTP: Explore targeted measures to increase take-up and extend coverage of FTTP in remaining

underserved areas, ensuring that high-speed connectivity is accessible to all households.

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges

encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital Skills, Green IT, and the Uptake of Digital Technologies.

5

Luxembourg

- Unicorns: Strengthen the growth pipeline for scale-ups by facilitating greater access to private

venture capital.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL

COMMITTEE AND THE COMMITTEE OF THE REGIONS

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

State of the Digital Decade 2025:

Keep building the EU's sovereignty and digital future

1

1. Introduction

The EU’s digital transformation is a central driver for ensuring that Europe remains competitive,

resilient, reduces its excessive dependencies and enhance its technological sovereignty, while

reinforcing its strategic autonomy1. To this effect, the Digital Decade Policy Programme (DDPP)2,

adopted in 2021, has provided the EU with a structured, strategic and legally binding governance

framework, enabling it to navigate an increasingly volatile geopolitical, economic, and technological

landscape. This demonstrates the EU’s determination and commitment to decisive, long-term action,

driving forward its vision for a digitally transformed Europe.

In the face of today’s geopolitical challenges, the DDPP has become more vital than ever.

Strengthening Europe’s technological sovereignty and resilience is key to protecting strategic interests

and reinforcing the EU’s global leadership and competitiveness. The DDPP plays a crucial role in this

context, fostering coordination among Member States, aligning their efforts, and addressing the

urgent need for an accelerated digital transformation.

Through the Digital Decade, the EU sets and monitors digital objectives and targets, aligns initiatives

through national roadmaps, and enhances joint investment. This demonstrates the EU’s

determination and commitment to decisive, long-term action, driving forward its vision for a digitally

transformed Europe. Furthermore, the Digital Decade fosters cooperation across EU, Member State,

regional and city levels, accelerating digital transformation and supporting the implementation of the

Competitiveness Compass3. By adopting a broader, integrated perspective, the Digital Decade

connects competitiveness, sovereignty, sustainability and democratic values. It underlines how the

digital transformation is not only a matter of fuelling innovation and growth but also of fostering

the most important strategic assets for Europe’s sovereignty, stability, and global influence, as

illustrated in Figure 1.

This Communication describes the State of the Digital Decade in 2025, examining relevant digital

policy developments and progress with the EU’s digital transformation since the last report published

in 2024. It also lays the groundwork for the review of the DDPP in 2026, with possible changes to

targets, objectives and governance in view of technological and EU policy developments.

More detailed analyses, including EU level recommendations, are presented in the Annexes to the

Communication and in supporting documents, specifically Staff Working Documents, Eurobarometer

and studies4 which, all together, constitute the 2025 State of the Digital Decade report.

In particular, this Communication is accompanied by 28 Annexes:

• Annex 1, an extensive analysis of the progress made towards the Digital Decade objectives

and targets, and includes horizontal recommendations addressed to all Member States;

• Annexes 2-28, summaries of the analysis made for each of the 27 Member States, including

country-specific recommendations.

1 See notably COM(2025) 30 final A Competitiveness Compass for the EU, as well as the 2024 Progress Report on the Implementation of the Strategic Compass for Security and Defence. 2 DECISION (EU) 2022/2481 3 A Competitiveness Compass for the EU, COM(2025) 30 final. 4 Please see the following page: https://digital-strategy.ec.europa.eu/en/policies/2025-state-digital-decade-package.

2

Figure 1: The Digital Decade and EU digital priorities

2. Tracking the EU’s Digital Decade overall progress

a. 2025: a defining year for the EU’s future

In 2025, the global Artificial Intelligence (AI) revolution is gaining further momentum with

breakthroughs in foundational technologies, which are reshaping innovation frontiers, redefining

competitiveness, and changing people’s everyday lives. Workers now use AI tools to boost

productivity – from factory-floor assistants in manufacturing to AI office software development –

streamlining tasks and supporting decision-making. Meanwhile, autonomous car fleets are starting to

scale, notably in the US and Asia, with self-driving taxis and delivery services setting new standards for

urban mobility and economic efficiency. Furthermore, AI is revolutionising healthcare, making it more

effective, accessible, and economically sustainable. AI is also a game changer for the green transition.

enabling real time environmental monitoring, underpinning circular economy, streamlining industrial

processes, and supporting smarter resource management across sectors such as water, energy,

transport, and agriculture. Amid these rapid advances, a key emerging issue is how to harness the

power of AI through effective policy and democratic governance to advance societal progress—

promoting broad-based prosperity, inclusive growth, and public benefits5.

Establishing EU leadership and positioning Europe as a true AI continent is a paramount priority,

requiring a comprehensive set of assets, capabilities, and infrastructures — from advanced skills to

robust ethical frameworks — as illustrated in Figure 2. It includes notably highly efficient digital

infrastructure – from connectivity to quantum computing – to support the current surge in AI

innovation. A major boost in computing power, data storage, and fast, secure, low-latency

5 Daron Acemoglu and Simon Johnson, Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity (2023)

3

connectivity is also essential to train foundation models and develop vertically integrated AI

applications.

Figure 2: The seven pillars for becoming an AI leader and the role of the Digital Decade

These foundational technologies are crucial for defence and cybersecurity, enabling real-time data

analysis, battlefield situational awareness, autonomous decision-making, cryptanalysis, secure

communications and next-generation cybersecurity solutions.

This has spinoff value, as 10% of the EU’s defence spending is expected to be channelled into

European deep tech, potentially generating an annual market impact of EUR 245 billion, as a powerful

catalyst for innovation and industrial renewal6. Meanwhile, geopolitical shifts are turning the EU's

digital supply chain dependencies into strategic vulnerabilities. As supply chains are increasingly

weaponised through overreliance on high-risk-vendors or restrictions and tariffs, technological

sovereignty has moved to the forefront of the EU agenda, driving the need for a more coordinated

industrial policy, deeper public-private partnerships, and targeted investments with the objective of

positioning the EU not as a mere passive consumer of global technology, but as a proactive,

competitive force, spearheaded by its digital and industrial transformation. Excessive dependence on

foreign entities is also exposing the EU’s financial system’s resilience, including in critical areas such

as payment systems and crypto assets, which is becoming increasingly vulnerable to external influence

and disruptions, sometimes beyond the reach of European regulation. The prospect of a digital euro

is becoming a cornerstone of Europe’s digital finance strategy and economic security, strengthening

Europe’s financial ecosystem, innovation capacity and strategic autonomy.

The growing sophistication of the threats we face – including disinformation, cyberattacks, deepfakes,

and algorithmic manipulation – requires widespread digital literacy and a skilled ICT workforce.

These threats, whose creation and dissemination are amplified by AI and online platforms, also have

the potential to distort electoral outcomes, deepen societal polarisation, erode public trust in

democratic institutions and compromise critical infrastructure. They also challenge the rule of law

by undermining the integrity of democratic processes, weakening institutional accountability, and

disrupting the enforcement of legal norms online — particularly when harmful or illegal content

spreads unchecked across platforms. Additional risks are emerging from complex use patterns of

algorithms and digital tools, such as online platforms, and their impact on children’s safety and

6 Dealroom.co. The 2025 European deep tech report, March 2025.

4

wellbeing7. If left unchecked, these online threats could put the very foundations of democracy at risk

– undermining the rule of law and disrupting evidence-based public debate and policymaking.

The 2025 Digital Decade Eurobarometer8.:

- A significant majority of European citizens (88%) believe that combating fake news and online

disinformation should be a priority.

- Nine out of ten consider protecting children online to be an urgent concern.

- Three out of four Europeans consider that the digitalisation of daily services makes their lives easier.

However, conversely this still indicates that about 100 million people find it makes their lives more

complicated.

- 85% of respondents consider it important for public authorities to ensure that European companies

can grow and become European champions able to compete globally, while 89% believe equally in the

importance of increasing research and innovation for more secure and strong digital technologies.

Events in 2025 have thus underscored the urgent need for Europe to innovate, compete and grow

while assuming greater responsibility for its strategic autonomy, resilience, security and defence,

developing its own sovereign technologies not just as a matter of competitiveness, but as a strategic

imperative.

b. From metrics to meaning: what 2024 reveals about the EU’s digital trajectory

Since July 2024, the EU has shown uneven progress across DDPP targets and objectives. Certain

areas, such as the deployment of edge nodes, the availability of e-Health services, and ‘basic’ 5G radio

coverage, are demonstrating comparatively high levels of target achievement. In contrast, several key

domains – particularly foundational digital technologies such as AI, cloud services, data analytics,

along with ICT specialists and basic digital skills – are showing deeply unsatisfactory progress. While

improving at a slow pace, the digitalisation of public services and the roll out of Very High-Capacity

Networks (VHCN) are showing signs of increased maturity, while deployment of Fibre to the premises

is progressing but not enough to reach 100% by 2030.

More generally, the monitoring of general objectives shows that the EU is still facing major challenges

to harnessing the digital transformation for its productivity and competitiveness. The deployment

and integration of these technologies across the EU economy are still too limited, while regulatory

fragmentation and administrative complexity continue to pose significant challenges for start-ups,

SMEs, and innovators9. The EU still lacks sovereign, pan-European digital connectivity and cloud

computing infrastructure, as well as integrated management systems needed to support its

development and a good level of security. With the increase in cyberattacks, which surged by 150%

in 2024, security has become paramount. This need closely aligns with the priorities of most European

citizens: around four out of five Europeans think that improved cybersecurity and stronger protection

of online data and safety would significantly facilitate their daily use of digital technologies10. A

widespread lack of digital skills remains a systemic barrier to the EU’s digital transformation. In

particular, persistent shortages of ICT specialists are slowing progress towards the Digital Decade

targets in key areas like AI, cybersecurity, and semiconductors. This shortage is compounded by the

continuous gender imbalance among ICT specialists.

7 See Annex 1 to the Communication, related recommendations and Staff Working Document. 8 Eurobarometer Digital Decade 2025. 9A Competitiveness Compass for the EU, COM(2025) 30 final. 10 Eurobarometer Digital Decade 2025.

5

Figure 3: Taking stock of KPIs progress toward 203011 12

Meanwhile, the EU’s digital future is becoming increasingly dependent on stable energy production.

In 2024, global electricity demand grew by more than twice the annual average increase over the past

decade. Global Data centre electricity consumption is set to more than double to around 945 TWh

by 2030, equivalent to Japan’s current total electricity consumption13. The data centre industry must

grow and evolve to accommodate inter alia the explosive growth and evolution of AI, generative AI

and future AI iterations already in the making. This trend alone is set to represent 40% of the total

energy demand in 2030 for data centre capacity14. Exponentially rising energy demands are rapidly

outpacing the development of clean and reliable energy supply and grid capacity across the EU. This

discrepancy is emerging as a potential significant barrier to the scaling of key digital technologies

and delaying the EU’s ability to fully leverage AI and data-driven innovation for economic

competitiveness. These trends further underscore the imperative to strengthen the alignment

11 The current KPI for the 5G target does not reflect the actual quality of service experienced by users. It monitors areas where a 5G signal is available, regardless of the network performance. Therefore, the current stage of 5G deployment can be considered only as ‘basic 5G’. Regarding quantum, data is based on: Strategic Advisory Board of the European Quantum Flagship, Key Performance Indicators for Quantum Technologies in Europe, , March 2025. Note that it is expected that six additional quantum computers will be deployed until the end of 2025 as several procurement procedures are currently ongoing. 12 No 2024 data is available for Cloud take-up, Data analytics take-up and Basic digital skills. The 2024 value of SMEs digital intensity is compared with the 2022 value. Full details on the KPIs in DESI 2025 Methodological note at https://digital- strategy.ec.europa.eu/en/policies/2025-state-digital-decade-package 13 Estimates at global level, on annual basis. Source: International Energy Agency, AI and Energy, April 2025. 14 McKinsey, AI power: Expanding data center capacity to meet growing demand, October 2024.

6

between the green and digital transitions, as a key driver of the EU’s long-term competitiveness and

security 15.

In order to see current perspective of achieving the 2030 targets, Figure 4 below tracks the progress

of KPIs toward their EU targets, benchmarking achievement levels against projected timelines. The

horizontal axis displays the target year for each KPI (based on the baseline trajectories where

available), while the vertical axis shows the percentage of the target already attained as of 2024. The

chart categorises KPIs into three groups: those ahead of schedule, on track (approaching targets), or

delayed (falling below expected progress).

Figure 4: Tracking KPIs progress and expected timeline

c. Halfway through the Decade: momentum is building among Member States and EU

institutions, with some early signs of concrete progress

Two years after its entry into force, the DDPP is now in full implementation mode with concrete and

ambitious action taken by the EU and Member States.

Collective ownership by all Member States of the Digital Decade targets and objectives is essential

to achieving them and ensuring a consistent, impactful, and inclusive digital transformation across the

EU. Member States are proactively implementing the DDPP, which is first and foremost a collaborative

framework for Member States to work together, align and pool resources on digital policy.

All Member States have developed National Digital Decade strategic roadmaps (National Roadmaps),

outlining the policies, measures and actions being taken from 2024 onwards to drive the EU’s digital

transformation from 2024 on. The adoption of the roadmaps represents a significant milestone, as

Member States are collectively committing to a total of 1 910 measures with a total investment of

EUR 288.6 billion, comprising EUR 205.1 billion from public budgets (equivalent to 1.14% of the EU’s

GDP).

15 Digitalisation, environmental sustainability and resilience are mutually reinforcing transformations, as digital solutions could cut 15–20% of global greenhouse gas emissions by 2030 across sectors, notably through improved efficiency in buildings, energy, transport, and manufacturing sectors. Digitalisation can also help resource optimisation, water resilience, pollution and waste reduction as well as create new market opportunities for example through products meeting high eco-design standards or in boosting circularity.

7

Figure 5: Public budget intensity in Member States Roadmaps16

Following the 2024 State of the Digital Decade report recommendations, 21 Member States have

updated their National Roadmaps and added roughly 20% of new measures17. Over half of the

measures indicating a timespan are planned to end in 2026, likely reflecting national budget cycles

and the conclusion of the Recovery and Resilience Facility (RRF) plans and investments, suggesting a

potential decline in support starting in 2027.

Member States are demonstrating their commitment to collective action through the

implementation of annual recommendations. Member States addressed 57% of the 306 country-

level recommendations issued by the Commission in 2024, either by implementing significant policy

changes (12%) or making some changes (45%) through new measures. 19 Member States have

addressed at least half of their recommendations through new measures. Among the EU-level

recommendations, over 45% show either notable (35%) or significant progress (10%), with strong

results in the areas related to the development of human-centred AI and safeguarding of digital rights

and principles. On the other hand, 48% of the EU-level recommendations issued in 2024 have only

seen limited progress, and 7% show no progress. This mixed picture highlights that, while there is

clear momentum toward achieving some of the Digital Decade targets and objectives, there remains

a continued need for structured and bolder policy action to accelerate and improve EU’s trajectory in

the Decade.

16 When referring to national roadmaps, data used in this report are those declared by the Member States in their national roadmaps, on the basis of the Commission's guidance (C(2023) 4025 final). Data might reflect possible variations in reporting practices and methodological choices across Member States. No systematic assessment was made of the extent to which Member States followed the guidance. 17 Roadmap adjustments submitted by 31/03/2025 are taken into account. In accordance with Article 8 of the Decision (EU) 2022/2481, which establishes the Digital Decade Policy Programme 2030, Member States are required to submit adjustments to their national roadmaps to the Commission every two years, starting within 5 months of the publication of the second Report on the Digital Decade. If a Member State believes that no updates are necessary, it must provide a justification for this to the Commission.

8

Figure 6: National Roadmaps: budget breakdown per target and general objective18

Through the European Digital Infrastructure Consortia (EDICs), concrete multi-country cooperation

is advancing to develop large-scale projects that a single Member State cannot tackle alone, covering

key strategic areas such as AI, smart cities, health, mobility, and agri-food. Three EDICs have been

established in 2024: the Alliance for Language Technologies EDIC, the Local Digital Twins towards the

CitiVERSE EDIC and the EDIC for European Blockchain Partnership and European Blockchain Service

Infrastructure (EUROPEUM-EDIC).

Member States are also supporting Important Projects of Common European Interest (IPCEIs) in the

digital field. In 2024, IPCEI on Cloud Infrastructure and Services (CIS) was launched, with the

participating companies advancing on their projects and the IPCEI ecosystem extending to include new

indirect partners. In 2024, several Member States decided to enter into the design phase of three

potential IPCEI candidates in the area of digital: one focusing on innovative AI services, one on

advanced semiconductor technology applications and one on deploying computing infrastructure.

Work is ongoing between the interested Member States and the Commission to shape those IPCEI

candidates.

The Digital Decade Board (DDB), which brings together national representatives, has emerged as a

key platform for coordination and exchange on issues related to digital transformation. It is well

positioned to take on a growing role in advancing the EU’s digital transformation by strengthening

cooperation, facilitating the implementation of digital policies, and supporting the development and

adoption of solutions that simplify processes and reduce administrative burden, as well as advising on

how to better link the targets and objectives with financing possibilities.

Furthermore, the Digital Decade Best Practice Accelerator, launched in July 2024, has been

instrumental in further fostering collaboration among Member States through a combination of

regular workshops and a dedicated online platform. This platform serves as a central hub for the

exchange of information, challenges, and best practices related to achieving the goals of the Digital

Decade. It features a repository that has compiled 52 best practices and organised eight workshops

18 Number of measures and budgets as reported by the Member States. The budget in the graph is split between targets and objectives, most of the budget (99.58%) is allocated towards the targets which are often related to some of the objectives. The budget breakdown shown for objectives (0.42%) only shows the breakdown of the budget allocated towards objectives that are not associated to the targets.

9

focusing on thematic clusters (Digital skills, Green IT, Tech Uptake, led respectively by Slovenia,

France and Finland, Belgium), which enable in-depth exploration of specific areas crucial for the digital

transformation of the EU. Additionally, discussions are ongoing for the launch of three new clusters in

2025, focusing on reducing administrative burden, digital rights and principles, and digital

sovereignty.

The monitoring the Declaration on Digital Rights and Principles19 shows increasing commitment

among Member States to take action, with over 2000 initiatives – 80% of them led by government

organisations – identified across the EU. Member States are most active in the area of digital

education, training and skills, as well as in working towards a better protected, safe and secure digital

environment.

Finally, cities are vital enablers of the EU’s Digital Decade, serving as key implementation hubs that

bring digital transformation directly to citizens, public services, and businesses—especially SMEs—

through their proximity, innovation ecosystems, and local leadership. The report shows that there is

still further potential to be unlocked through deeper cooperation with cities as part of EU’s digital

governance, investment in local digital capacity, and alignment of local strategies, leveraging tools

such as local observatories, and multi-country projects such as LDT-CitiVERSE.

d. Despite recent efforts, public and private investment levels are not yet fully aligned

with the Digital Decade’s ambition and scale

In recent years, the EU has achieved some progress in strengthening its digital infrastructure and

technological capabilities. Significant investments have been made in strategic areas, notably through

initiatives like the Digital Europe Programme. Some examples of these achievements include:

• Over the past eight years, eight supercomputers have been acquired, three of which ranked

among the world’s top 10 fastest supercomputers and were also recognised as being among

the greenest and most energy-efficient.

• More than 150 European Digital Innovation Hubs are currently operational across the EU,

covering nearly 90% of European regions, providing important support to both public and

private organisations, in particular SMEs20.

• The European Digital Identity Wallet, which is currently being piloted across the EU, will

provide a secure and user-controlled tool enabling citizens to prove their identity, share

documents, and sign digitally.

• In the semiconductor sector, four state-of-the-art pilot lines have been launched to test and

validate advanced chip technologies.

In line with the priorities outlined in the Competitiveness Compass21, on 9 April 2025 the Commission

adopted the AI Continent Action Plan, outlining a set of actions relating to computing infrastructure,

data, the development of AI algorithms and adoption, skills, and regulatory simplification. The action

plan signals the EU’s ambition to become more competitive on the global stage by harnessing the

potential of AI technologies and fostering strategic investments such as the AI Gigafactories, as well

19 See SWD ‘Monitoring of the European Declaration on Digital Rights and Principles’. 20 See De Nigris, S., Kalpaka, A. and Nepelski, D., Characteristics and regional coverage of the European Digital Innovation Hubs network, Publications Office of the European Union, Luxembourg, 2023, doi:10.2760/590526, JRC134620, and European Commission: Joint Research Centre, Carpentier, E., D’Adda, D., Nepelski, D. and Stake, J., European Digital Innovation Hubs Network’s activities and customers, Publications Office of the European Union, Luxembourg, 2025, https://data.europa.eu/doi/10.2760/7784020, JRC140547. 21 A Competitiveness Compass for the EU, COM(2025) 30 final.

10

as launching targeted initiatives like Invest AI to scale public and private financing and Apply AI to

accelerate the deployment of trustworthy AI across key sectors of the economy and public services.

Despite those achievements it is clear that continued and reinforced effort is essential to meet the

scale of the digital transition and secure Europe’s technological sovereignty.

As the EU reaches the midpoint of its Digital Decade, this report—together with recent estimates

from institutions including the EPRS, ECB, and the Draghi report using different scopes and

methodologies22 show that the EU’s digital objectives will not be achieved without a transformative

shift in its investment landscape. The Draghi report sets out that the additional effort of the EU should

amount to EUR 150 billion a year for digital technologies. Similarly, the European Central Bank (ECB)

stresses the importance of focusing EU finances on future-oriented investments, warning that failure

to scale digital capabilities could compromise the EU’s long-term competitiveness and financial

stability.

According to estimates by the European Parliamentary Research Service, only advancing high-tech

digital innovation (HTDI) alone across Europe will require between EUR 212 and 380 billion annually23,

more than triple the EU’s current yearly total investment in digital technologies and infrastructure. A

large part of the investment needs will have to come from private investments, mobilised through a

deepened Capital Markets Union24, increased risk financing, and industrial partnerships25 (see below).

A quarter of that estimate will need to come from public channels, including national budgets, EU

programmes26, at a time when fiscal space is constrained across many Member States and medium-

term budgetary pressures remain elevated, despite the increased flexibility of the new EU fiscal

framework.

Strategic public procurement, notably thanks to the forthcoming revision of the Public Procurement

Directives, will be crucial to achieve the EU’s objectives on resilience, innovation, simplification, and

EU preference through public investment. When combined with measures outlined in the AI Continent

Action Plan and the upcoming Cloud and AI Development Act and the support of GovTech27, this

revision will ensure that highly critical public sector develops highly secure, EU-based cloud capacity.

Another unexplored opportunity is to make digitalisation eligible for sustainable (climate) financing

demonstrating the energy and material efficiency gains of digitalisation in major industries, building

notably on the recent work of the European Green Digital Coalition28.

Analyses also converge on the critical areas where investment needs to be channelled to, from the

roll-out of advanced connectivity infrastructure in fibre, 5G – in particular stand-alone and mid-band,

including full coverage of transport corridors29 – to the development of next-generation

semiconductors, including AI-specific chips, the scaling of secure and sovereign cloud and data

22 See European Parliamentary Research Service, Cost of Non-Europe in High-Tech Digital Innovation: Investment Needs and Economic Benefits, July 2024; European Central Bank, Mind the gap: Europe’s strategic investment needs and how to support them, ECB Blog by Othman Bouabdallah, Ettore Dorrucci, Lucia Hoendervangers and Carolin Nerlich, 27 June 2024; Draghi, M., The future of European competitiveness, 2024; World Economic Forum, Europe’s Digital Transformation: Time for Bold Action, July 2024. 23 European Parliamentary Research Service, Cost of Non-Europe in High-Tech Digital Innovation: Investment Needs and Economic Benefits, July 2024, pages 56-57 and 60-61. 24 What is the capital markets union? - European Commission. 25 EPRS (2024) estimates that around one fourth of the required HTDI investment would need to come from public sources. The study also provides an overview of other estimates for the public-private split from comparable analyses. 26 Other estimates concur, for example estimating that creation of sovereign, interoperable, and secure digital infrastructure stack alone would represent a total investment of EUR 300 billion over ten years (Bria, Timmers, Gernone, EuroStack – A European Alternative for Digital Sovereignty. Bertelsmann Stiftung, 2025). 27 Public sector engagement with start-ups and SMEs to procure innovative solutions. 28 European Green Digital Coalition’s Net Climate Impact Assessment of digital solutions– www.greendigitalcoalition.eu 29 For connectivity infrastructure, the EU requires over EUR 200 billion by 2030 for gigabit connectivity and ‘full 5G’. White Paper, how to master Europe's digital infrastructure needs, COM(2024) 81 final.

11

infrastructure, the advancement of trustworthy AI and quantum computing technologies, and the

development of robust cybersecurity capacities. Equally important is the sustained investment in

training more digital technology specialists, digital literacy and upskilling, without which the benefits

of innovation will remain inaccessible to many regions and sectors.

The cloud computing capacity gap between Europe and competitors like the US and China is expected

to widen, unless significantly more capital is directed towards expanding edge and cloud computing

capabilities. This report also identifies more precise mismatches between digital priorities and the

funding allocated through EU public instruments (cf. figure 7), showing notably that insufficient

attention is paid to the general objectives and the digital principles, skills development, foundational

technologies, gigabit connectivity infrastructure deployment and digitalisation of SMEs. In this

context, it is crucial to focus and align public spending as much as possible with strategic priorities and

maximise its impact and efficiency30.

Structural obstacles remain to foster the financing of the EU’s digital transformation. On the public

side, persistent fragmentation of national strategies, limited coordination at EU level, and slow

absorption of EU funds impede the effective deployment of available resources. There is also a need

to better coordinate action, in order to channel more public funding into sovereign digital assets,

including trusted clouds, AI models, chips and cybersecurity while fostering joint projects between

Member States.

Mobilising private capital at scale will be critical to bridge the gap—through a deeper Capital Markets

Union, better-aligned public-private instruments, and stronger mechanisms for de-risking and

blended finance. Recent analysis by the ECB31 also highlights the need to focus not only on headline

investment targets but also on improving delivery conditions, investment absorption, and project

quality.

The fragmentation and underdevelopment of the EU’s financial markets, along with the tendency

in the EU to avoid high-risk endeavours, still limit the flow of investment into high-growth and

innovative sectors, with a large share of household savings not channelled towards productive

investment. The EU also lacks a mature venture capital ecosystem, which limits access to finance for

high-growth and innovative companies32. The EU accounts for only 5% of global Venture Capital (VC)

fundraising in innovation, compared to 52% for the US and 40% for China33. European AI startups

raised about EUR 11 billion in venture capital funding in 2024, more than six times less than in the US

(about EUR 71 billion)34. These gaps are particularly critical for high-risk, high-impact investment in

deep tech, where traditional bank financing is often insufficient. For cybersecurity, EU venture capital

totalled just EUR 814 million35 concentrated in a few Member States, compared to EUR 15 billion in

the US. Leveraging public resources to crowd in private investment – particularly through risk-sharing

mechanisms and financial instruments – is therefore essential to scale innovation across the

continent.

30 These priorities are central in the context of the Competitiveness Compass (COM (2025) 30 final) and the Communication ‘Road to the next multi-annual financial framework’ (COM(2025) 46 final). Moreover, higher alignment between funding and key digital needs was advocated by a recent ECA report on the Recovery and Resilience Facility (ECA Special report 13/2025). 31 European Central Bank, Mind the gap: Europe’s strategic investment needs and how to support them, ECB Blog by Othman Bouabdallah, Ettore Dorrucci, Lucia Hoendervangers and Carolin Nerlich, 27 June 2024. 32 EIB, Investment Report 2024/2025: Innovation, integration and simplification in Europe, 2025. 33 Competitiveness Compass (COM (2025) 30 final). 34 Dealroom.co, Opening moves in global AI - AI, startups & venture capital, AI Action Summit, Paris, February 2025. 35 European Commission, European industrial technology roadmap for the next generation cloud-edge offering, 2021.

12

Figure 7: Comparison between gaps identified and EU funding from selected programmes in 2020-

2027 (JRC estimates)36

* 69% is referred to FTTP coverage; 82% to VHCN coverage. ** 82% is referred to digital public services for citizens; 86% to digital public services for businesses.

The report’s findings also underscore the need to establish a larger pool of public capital to leverage

private investment in the European economy and reduce financing costs for European businesses.

Decisive action is needed to significantly increase the funding opportunities for all EU businesses,

from the start-up phase right through to more mature companies building on the recently adopted

EU Startup and Scaleup Strategy37. The main challenges to be addressed include the reinforcement

and deployment of blended finance tools to de-risk private investment (e.g. InvestEU, expected to

mobilise more than €372 billion of public and private investment through an EU budget guarantee of

€26.2 billion), as well as the establishment of a Savings and Investments Union38 to scale private

investment across borders, including through the simplification of Initial Public Offering (IPO)

36 Data on budget in the first column are based on estimates by the Joint Research Centre (JRC) based on the mapping of five major programmes—RRF, CEF Digital, Horizon Europe, DIGITAL, and Cohesion Policy—and their contribution to the Digital Decade targets. Estimates are referred to the multi-annual financial framework 2021-2027, with the Recovery and Resilience Facility covering the period 2020-2026. Amounts should be regarded as broad estimates. See also Annex 1 to this Communication (section 5.b), and SWD ‘Digital Decade in 2025: progress and outlook’ (section 4.2.2). Source: European Commission: Joint Research Centre, Nepelski, D. and Torrecillas, J. Mapping EU level funding instruments 2021-2027 to Digital Decade targets – 2025 update, Publications Office of the European Union, Luxembourg, 2025, JRC141966. 37 COM(2025) 270 final Choose Europe to start and scale. 38 Savings and Investments Union A Strategy to Foster Citizens’ Wealth and Economic Competitiveness in the EU, COM(2025) 124 final.

13

pathways and the unlocking of pension fund capital for digital investments, to accelerate scale-up

trajectories.

Next to investments, reforms play a crucial role for the advancement towards the digital transition.

The Recovery and Resilience Facility (RRF) was designed with this dual focus, supporting not only

investments but also structural reforms, in connection with the European Semester39. In the digital

domain, on a total of about 2 500 milestones and targets, about 600 (24%) qualify as reforms40. They

include, for instance, reforms to facilitate network deployment, strengthen cybersecurity, to

modernise labour market policies and education systems, or implement the once-only-principle.

In their national roadmaps, Member States were invited to also include 'regulatory and reform-

oriented measures'41, but so far, they have provided little information on which roadmap measures

qualify as reforms. As a first step, the relevance of reforms is reflected in the recommendations issued

in this report at both horizontal (please see Annex 1) and Member State level, such as establishing

enabling framework conditions and ecosystems that support commercialisation and technology

transfer, in the area of digitalising SMEs and start-ups as well as the uptake of advanced technologies.

Finally, the Technical Support Instrument (TSI) has provided targeted expertise and capacity-building

assistance to Member States in designing and implementing reforms, including in the area of digital.

For instance, with the 2025 flagship ‘ComPAct - Capacity for Europe’s Digital Decade’, public

administrations in the Member States get support in creating the technological foundations for data-

driven policies that integrate interoperability and AI technologies.

3. Addressing digital weaknesses and excessive dependencies

While global access to innovative and affordable technology, infrastructure and services is vital for EU

competitiveness, the EU’s reliance on foreign digital technologies, infrastructure and services exposes

it to several risks. While digitalisation is a driver of innovation, productivity and global

competitiveness, persistent strategic dependencies threaten the EU’s economic security and

technological sovereignty. Excessive dependencies are particularly acute in the areas of

semiconductors, cloud and data infrastructure and cybersecurity technologies.

The EU still lacks a significant domestic semiconductor manufacturing capacity. It lacks capacity to

manufacture advanced node fabrication (below 10nm), essential for both civilian and military

applications42. This capacity is mainly concentrated in East Asia and in the US: 80% of the EU

companies’ suppliers are headquartered outside the EU, with 35% located in the US, 12.4% in Taiwan,

11.7% in China or Hong Kong and 10% in South Korea43. In the event of geopolitical turmoil in East Asia

affecting Taiwan – currently producing over 90% of the world’s most advanced chips – particularly

with the intention of controlling its semiconductor industry (most notably TSMC, the world’s most

advanced chipmaker), the consequences would be severe. Most European industries – from

automotive to aerospace, from medical equipment to defence – would face critical production

deadlocks.

39 The RRF regulation required that he recovery and resilience plan ‘contributes to effectively address all or a significant subset of challenges identified in the relevant country-specific recommendations’ (REGULATION (EU) 2021/241 establishing the Recovery and Resilience Facility, article 18.4). 40 Recovery and Resilience Facility Scoreboard. 41 Guidance to the Member States on the preparation of the national Digital Decade strategic roadmaps, C(2023) 4025 final. 42 IC Insights, McClean Report, May 2Q Update of The McClean Report 2022. 43 Ciani, A., Nardo, M., The position of the EU in the semiconductor value chain: evidence on trade, foreign acquisitions, and ownership, European Commission, Ispra, 2022, JRC129035.

14

Foundational AI model development is also dominated by the US, notably because of the US access

to vast computing power through US hyperscalers who are also devolving much of their capital

investments into cloud development. This situation presents several risks for the EU, starting with the

lock-in of users to proprietary ecosystems, as well as the critical risk of EU user companies and citizens

being exposed to the application of US laws such as the US Cloud Act. Currently, the largest EU cloud

operator holds a mere 2% share of the EU market. This trend is expected to persist, with US

hyperscalers projected to drive 65% of data centre demand in Europe by 202844. Cybersecurity

technologies taken up in Europe often originate from outside the EU, potentially exposing European

networks to foreign influence or backdoor vulnerabilities.

Risks have also been identified in quantum technologies, particularly regarding the potential transfer

of expertise through unmonitored foreign direct investment, talent poaching and collaborations

lacking proper safeguards. On the other hand, it is also to be considered that the EU possesses

significant strengths and leads in quantum science and research excellence, has a highly skilled

workforce as well as one of the world's most dynamic startup ecosystems in quantum technologies.

Initiatives such as Quantum Flagship, the Chips Joint Undertaking, and the new Quantum Pilot Lines

also build on these strengths. Safeguarding these assets while fostering innovation remains a priority

for sustaining Europe's competitiveness in this critical domain.

Europe is not yet harnessing the full power of open source45 - a public good that can be freely used,

modified, and redistributed allowing all to use the technology at will - and the vibrant community of

European open source developers, which could be an important avenue for tech sovereignty to reduce

Europe’s dependencies from third countries. Digital dependencies and vulnerabilities relating to

research security intersect with broader economic security concerns, especially in the current

geopolitical context. Key risks include the weaponisation of dependencies and economic coercion for

political leverage.

In addition to this, no pan-EU digital platform is today among the most visited in Europe and

‘European citizens are served mostly by non-EU commercial platforms’46. These large platforms are

often a gateway for a large number of business users to reach end users everywhere in the Union and

control important ecosystems in the digital economy. Their position and the rules they set on their

platforms can lead to unfair practices conditions for businesses using them, and harm users, as well

as limit contestability and create an uneven playing field for other companies. Another concern in the

digital landscape is the trade and exchange of illegal goods, services and content online, as well as the

misuse of online services to amplify the spread of disinformation and for other harmful purposes.

Modern connectivity is no longer a collection of separate technologies – satellites, submarine

cables, mobile and fixed networks – but a deeply interconnected ecosystem. To respond to the

growing demand for critical, low-latency applications - such as autonomous vehicles and remote

surgery, increasingly higher amounts of data47 need to flow seamlessly across all these domains, as

disruptions in one can affect the entire network’s performance and security. This will require in the

near future a global approach ranging from orbital assets to terrestrial infrastructure, linking together

44 McKinsey. The role of power in unlocking the European AI revolution, 2024. 45 According to Open Forum Europe, open-source software is estimated to contribute between EUR 65 to EUR 95 billion to the European Union’s GDP. Open-source software is today the basis for most software solutions, as open-source represents about 70% of all codes. But whilst Europe annually spends between EUR 10 and EUR 24 billion of public funds on software, only a minor fraction directly supports the European open-source industry, which comprises primarily of small and medium-sized enterprises (SMEs), start-ups, and individual developers (Blind, K.; Böhm, M., Grzegorzewska, P., Katz, A., Muto, S., Pätsch, S., Schubert, T. (2021). The impact of Open Source Software and Hardware on technological independence, competitiveness and innovation in the EU economy, Final Study Report. Brussels). 46 Draghi, M., The future of European competitiveness, 2024. 47 Statista, 2025 (Volume of data/information created, captured, copied, and consumed worldwide from 2010 to 2023, with forecasts from 2024 to 2028).

15

in a unified, resilient, and globally optimised system. And for that we need to build the basis now, with

full coverage of fibre and accelerated development of stand-alone 5G. The resilience and security of

Europe’s connectivity infrastructure is increasingly challenged by the geopolitical and technological

complexities of today’s digital landscape. The full implementation of the EU 5G Toolbox and the

promotion of standalone 5G networks are essential for mitigating security risks associated with

mobile connectivity. Furthermore, core infrastructures like submarine data cables remain vulnerable

to physical sabotage, risks and challenges that are addressed by Cable Security Action Plan48. In

parallel, the EU’s autonomy in the field of communications is undermined by the EU’s heavy reliance

on non-European satellite systems, a critical dependency starkly revealed during the war in Ukraine,

when SpaceX threatened multiple time to interrupt the delivery of Starlink satellite services.

Finally, the risk of digital dependency is also critical in systemic sectors such as the financial sector.

Today, the EU lacks a unified payment system, and while only seven countries of the Euro area have

their own national payment systems49, the EU as a whole relies heavily on international card

schemes, representing over 64% of all card-initiated transactions in the euro area50. In addition,

mobile app payments, dominated by non-European tech firms (such as Apple Pay, Google Pay and

PayPal), now account for nearly a tenth of retail transactions and are showing double-digit annual

growth. These developments are exposing the EU to geopolitical and cybersecurity risks. The

Commission’s legislative proposal on the digital euro, adopted in June 2023, continued its path of

interinstitutional negotiations in 2024. The final decision on its issuance rests with the European

Central Bank, following the conclusion of the legislative process.

4. Harnessing digitalisation for the EU’s defence capacity

Digital technologies are a cornerstone of the EU efforts to reinforce its security, strategic autonomy,

and defence capabilities. By harnessing the potential of synergies between civilian and defence AI

applications, the EU can unlock new opportunities for innovation, enhance Europe’s competitiveness

and reinforce its strategic autonomy in this critical domain.

Robust and secure communication networks are essential for modern defence operations. Sovereign

satellite communication infrastructure is vital for independent defence and crisis response.

Integration of 5G and 6G technologies will further enhance secure, real-time operational capabilities

across domains. In parallel, sovereign cloudified networks are critical to ensure that sensitive defence

data is securely stored, processed, and protected within the EU jurisdiction. AI represents a

transformative force in both civilian and military contexts as AI-enabled systems are key to

accelerating threat detection, improving decision-making, and supporting autonomous operations.

Semiconductors underpin nearly all modern defence capabilities. As global supply chains remain

vulnerable to geopolitical tensions, the Commission is committed to supporting a secure and

sovereign European semiconductor ecosystem building on new five pilot lines with a total investment

of EUR 3.7 billion, now able to also serve defence applications.

48 EU Action Plan on Cable Security, JOIN(2025) 9 final. 49 The digital euro: maintaining the autonomy of the monetary system, Keynote speech by Philip R. Lane, 2025. 50 Volume share of international card schemes in total electronically initiated card payments with cards issued in the euro area and transactions acquired worldwide for the first half of 2023. Based on data collected under Regulation (EU) No 1409/2013 of the European Central Bank on payments statistics (ECB/2013/43), as amended.

16

Figure 8: The increasing overlap between digital and defence policy areas

Quantum technologies will increasingly shape the future of secure communications, sensing, and

computing. Through initiatives such as EuroQCS, EuroQCI, and the Quantum Flagship, the EU is

investing in quantum computing for complex problem solving, ultra-secure communications,

gravimetry sensors, and precise positioning, navigation and timing -to mention just a few that serve

both defence and civilian applications and critical infrastructures.

The development and scale-up of dual-use start-ups and unicorns are essential to ensuring Europe’s

long-term strategic competitiveness. However, a EUR 1.25 trillion defence investment gap since 2006

is indicative of chronic underinvestment, particularly for deep tech startups which includes an EUR 4

billion shortfall for SMEs, hindering innovation51. Bridging this gap requires sustained investment,

better integration of digital and defence strategies and targeted support for dual-use technologies

and innovation ecosystems. Persistent barriers to private investment, including outdated exclusion

policies, constraints related to Environmental, Social and Governance (ESG) standards, and a lack of

defence-focused financial instruments52 have hindered the growth of digitally intensive SMEs and

start-ups developing defence or dual solutions. About 40% of defence SMEs still face difficulties in

accessing sources of financing, especially during the growth phase53.

In conclusion, amid an evolving geopolitical landscape and the changing nature of warfare, the

Commission’s efforts to integrate digital technologies into the defence ecosystem—and vice versa—

are essential to strengthening the EU’s security, resilience, and technological leadership. Civilian-

focused initiatives have laid important groundwork for harnessing advanced digital technologies such

as AI, quantum computing, and semiconductors in support of defence capabilities. Nonetheless, key

challenges persist, including the need for deeper policy integration, addressing digital infrastructure

51 European Commission, Defence Investment Gaps Analysis and Way Forward, 2024. 52 Dealroom.co & NATO Innovation Fund, Defence, Security and Resilience in Europe: The state of startups and venture capital, February 2025. 53 European Commission, Report on “Access to equity financing for European defence SMEs”, November 2023.

17

gaps, and accelerating innovation through targeted investment in dual-use technologies and

enhanced coordination between digital and defence strategies.

5. International aspects of the Digital Decade

The digital transformation is reshaping economies and societies across Europe and globally,

reinforcing the EU’s strategic interest in securing technological competitiveness as the foundation of

long-term political sovereignty. Building on the EU’s strengths and internal policies and actions, the

International Digital Strategy for the European Union54 seeks to (i) boost the EU’s tech

competitiveness through economic and business cooperation with trusted partners (ii) promote a high

level of security for the EU and its partners and (iii) shape global digital governance and standards in

line with the EU values-based approach.

The Commission has continued to develop its network of Trade and Technology Councils (TTC) and

Digital Partnerships. The EU has also expanded its growing portfolio of free trade agreements and

digital trade agreements, which set high-standard digital trade rules and provide a platform for

cooperation on digital trade issues. The Global Gateway strategy is playing a key role in promoting

digital infrastructure investment, notably of secure 5G networks provided by trusted vendors and

secure and resilient submarine cables. More broadly, the Global Gateway strategy is strengthening

Europe’s role as a trusted partner in global connectivity. Additionally, the Commission is supporting

digital transformation efforts in enlargement countries and the EU’s neighbourhood, while also

engaging in multilateral forums to drive progress on key issues, such as the governance of AI

(including the G7 Hiroshima AI Process and the Council of Europe Convention), Council of Europe

Convention) or the promotion of secure and data protection compliant Digital Public Infrastructures

(notably in the G20).

Finally, the Declaration on Digital Rights and Principles55 has had a significant impact on international

discussions, serving as inspiration for several international declarations56 and contributing to the first

comprehensive framework for global digital governance. By promoting its values and standards

globally, the EU is helping to shape the future of the digital economy and ensure it is aligned with its

strategic interests and values.

6. Conclusion

Amid intensifying geopolitical pressures, rapid technological change, and rising global competition,

the Digital Decade anchors the EU’s resolve to shape a digital future rooted in technological

sovereignty, competitiveness, innovation, sustainability and resilience.

As the EU reaches the pivotal midpoint of the Digital Decade, 2025 can be the moment when ambition

turns into lasting impact. The choices made now will determine whether Europe completes its shift

from a regulatory pioneer to a global leader in sovereign, secure, and ethical digital technologies. The

report underlines the importance of responding with unity, determination, and sustained effort.

While the EU has sharpened its strategic focus and made real progress, major challenges continue to

undermine the pace and resilience of its digital transformation. Skills shortages, infrastructure gaps

– especially in connectivity and foundational technologies – and increased security and sovereignty

concerns all demand urgent attention. Fragmented markets, overly complex regulations, possible

54 An International Digital Strategy for the European Union, JOIN(2025) 140 final. 55 European Declaration on Digital Rights and Principles for the Digital Decade (2023/C 23/01). 56 The OECD Declaration on a Trusted, Sustainable and Inclusive Digital Future and discussions for a United Nations Global Digital Compact (GDC).

18

tensions on energy capacity, and insufficient societal resilience and safeguards are also limiting the

EU’s ability to scale innovation and unlock the full potential of its private capital.

The findings of this report highlight the importance of acting more consistently, focusing on these

internal barriers and prioritising the acceleration of innovation cycles, the scaling of strategic

technologies across the Single Market, and investment into the sovereignty and security of its digital

ecosystem. In this regard, the National Roadmaps adopted by Member States mark a crucial turning

point. Their success depends not only on ambition, but on coherent, long-term execution and

alignment across all levels of governance. This also means making full use of the enabling instruments

– from EDICs and the coming AI and Cloud Development Act, the EU Wallet, the GDPR, the DSA, DMA

and AI Act – to the upcoming ‘28th Regime’ proposal – as well as better aligning investments with

actual needs.

The stakes are high. Without decisive and further coordinated action, the EU risks missing out on

substantial gains. According the EPRS study, an ambitious, coordinated policy could potentially

increase the EU GDP by 1.84% compared to the baseline, based on increased productivity, more

efficient public services, and a thriving innovation ecosystem57. By turning its collective strengths into

strategic advantage and sustaining coordinated action over time, Europe can not only meet the goals

of the Digital Decade but lead the way in shaping a digital future grounded in resilience, trust, and

shared prosperity.

Achieving this vision requires strong, collective ownership from all Member States, and cooperation

with all parties involved, including cities, local and regional groups, to deliver digital policies that have

tangible impact for citizens, businesses, and public services.

Considering the evidence presented in this report, the Commission will continue discussing with

Member States, the European Parliament, and stakeholders on how to progress together, leveraging

the Digital Decade’s governance mechanism, notably the Digital Decade Board. The report will also

inform the co-operation with stakeholders and partners outside the EU.

As set out in the DDPP, the Commission will monitor and assess the implementation of these

recommendations and report on the progress made in the State of the Digital Decade 2026. The

Commission will also start preparing the review of the DDPP, planned by June 2026. This will provide

an opportunity for a strategic reflection on the Digital Decade’s framework, objectives, and

governance, to better address shifting geopolitical, technological, and societal realities.

57 EPRS, Benefit of an EU strategic innovation agenda, Cost of Non Europe, 2025.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 1

ANNEX

to the

Communication from the Commission to the European Parliament, the Council, the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

State of the EU digital transformation in 2025: progress and horizontal recommendations

1

Contents

1. Introduction .................................................................................................................................... 2

2. Reinforcing technological sovereignty, security, and competitiveness .......................................... 2

3. Protecting and empowering people, preserving EU democracies and values ............................. 21

4. Harnessing digitalisation for the green transition ........................................................................ 33

5. Building coherence, efficiency and simplification ........................................................................ 37

2

1. Introduction

This annex forms an integral part of the State of the Digital Decade 2025 report. It retains the four-

chapter structure of the 2024 report, focusing on: technological sovereignty, security, and

competitiveness; protecting and empowering people; harnessing digitalisation for the green

transition; and a horizontal chapter on building coherence, efficiency and simplification.

The analysis provides an overview of the state of play, identifies key strengths to build on as well as

gaps and shortages, and offers targeted recommendations to all Member States in areas requiring

stronger collective action. The analysis primarily relies on the monitoring conducted through the

Digital Economic and Society Index (DESI). It is further supported by relevant studies, expert analysis,

and the National Digital Decade Strategic Roadmaps submitted by Member States.

2. Reinforcing technological sovereignty, security, and competitiveness

a. A continent supporting digital innovation and sovereignty

i. Closing the innovation gap

- Research and Innovation (R&I) for a digitally transformed Europe

The trends identified in the 2025 State of the Digital Decade are still very much demonstrating the

EU’s weakness in digital innovation, particularly the limited scale of investment in R&D and the

insufficient focus on breakthrough innovation1. According to data from the EU Industrial R&D

Investment Scoreboard, the US dominates digital R&D, accounting for around 40% of all digital

companies and 53% of total R&D investment among those identified in 20232.

Overall, while Europe remains a global hub for scientific exchange, it lacks critical mass of top-

performing players, reflecting a fragmented ecosystem with limited specialisation3. The latest

available Eurostat data shows that the percentage of the ICT sector in gross value added is relatively

low and grew only marginally in recent years, from 4.86% in 2019 to 5.46% in 20224. While European

organisations excel in producing high-impact scientific publications, they struggle to transform this

knowledge into patented innovation. Compared to the US and China, the EU lags behind in patent

filings, with fewer applications submitted.

Digital technologies also play a crucial role in the EU’s efforts to innovate, compete and grow to ensure

its freedom and reinforce its security, strategic autonomy, and defence capabilities, with a significant

potential for leveraging synergies between civilian and defence applications. Start-ups and innovative

companies in the field of dual-use technologies also play a key role, but their potential is limited by a

long-standing defence investment gap—especially for deep tech and SMEs. Barriers like outdated

policies and limited financing options further restrict growth.

To drive growth and cross-border investment in defence-related innovation, the European

Commission has launched several dedicated instruments, including the EUDIS Matchmaking and

Accelerator Programmes, and mobilised new funding channels through the European Innovation

Council (EIC) and the TechEU Scale-up Fund. In January 2024, via the European Investment Fund, the

Commission launched a EUR 175 million Defence Equity Facility, designed to leverage up to EUR 500

1 Draghi, M., The future of European competitiveness, 2024, Part A – A competitiveness strategy for Europe. 2 Joint Research Centre, Nindl, E., Napolitano, L., Confraria, H., Rentocchini, F., Fako, P., Gavinan, J. and Tuebke, A., The 2024 EU Industrial R&D Investment Scoreboard, 2024. 3 Joint Research Centre, Eulaerts, O., Grabowska, M. and Bergamini, M., Weak signals in Science and Technologies - 2024, 2025. 4 Source: Eurostat (Statistics | Eurostat). This indicator measures the importance of the ICT sector in the economy, reflecting the strength of the innovation ecosystems.

3

million in venture capital for defence technologies with dual-use potential. This complements

European Defence Fund investments in advanced digital domains and innovation-driven initiatives.

One of these initiatives is the EUDIS Hackathon, which gathered over 275 participants from 16

Member States and generated more than 70 innovative solutions to address pressing defence

challenges.

Technological leadership - Recommended policies, measures and actions

R&I for a digitally transformed Europe

Member States should increase their public digital R&I expenditure, prioritising R&I investment in

digital technologies that play a strategic role in the EU’s competitiveness, resilience and sovereignty.

Harnessing digitalisation for EU’s defence capabilities

Member States should:

- strengthen their support to innovative actors, including start-ups proposing disruptive

digital applications and services5;

- boost the development of digital infrastructures that contribute to societal resilience in crisis

contexts;

- better connect the defence and digital innovation communities, foster a new mindset

towards preparedness and security culture across the digital sector, identify synergies

between defence and digital programmes, investments, and applications.

- Boosting the scale-up capacity of Europe

The 2025 data on unicorns in the EU reflects a slowing down of the dynamic that characterised COVID

times in 2021 and 2022. In 2024, the number of unicorns established in the EU rose by 12 units,

reaching 286 unicorns. The target of 500 unicorns is expected to be reached in 2034 if no further

actions are taken6.

There are significant variations among Member States – with Germany (69 unicorns), France (48)

Sweden (39), and the Netherlands (32), topping the list. However, the EU still lags significantly behind

China (397) and the US (1687), the latter demonstrating a higher annual growth rate (6% against 4.4%

in the EU).

5 In compliance with EU rules. 6 European Commission based on Dealroom data.

4

Despite its vast economic potential, the Digital Single Market remains fragmented, with a complex

landscape of national regulations, administrative procedures, and obstacles to data and knowledge

sharing that leaves a large potential untapped.

First and foremost, there is a need for a substantial development of EU capital markets. The lack of

private capital for ‘big ticket’ investments still prevails. This forces too many EU startups to seek late-

stage growth capital from venture capital funds outside the EU, which can often result in them moving

their corporate headquarters outside the EU. The Savings and Investments Union7 will be crucial to

improving how the EU financial system channels savings into the real economy, and uses those

savings for productive long-term investment.

To foster the rise and development of scaleups, the EU is set to adopt an EU Startup and Scaleup

Strategy in 2025. This strategy aims to address financial, regulatory, and administrative barriers that

hinder startups from scaling up into mature, profitable companies–an urgent priority to prevent them

relocating outside the EU. For innovative companies to emerge and existing ones to scale up, the

single market plays a crucial role. As part of this effort, the Commission will present a ‘28th regime’

to make it possible for innovative companies to benefit from a single, harmonized set of EU-wide rules,

wherever they invest and operate in the single market. At the same time, the implementation of the

Digital Markets Act is creating and opening up significant opportunities for startups and scaleups by

imposing specific obligations on gatekeepers and thereby ensuring that small businesses that use such

platforms benefit from fair and open markets.

However, EU-level action alone is not enough to address these challenges, and cooperation with

Member States will be critical, especially to attract and retain talent, foster access to finance, promote

tech transfer policies and the public procurement of innovative products and services. It can build on

the Member State-led Europe Startup Nations Alliance8 (ESNA), which supports national innovation

policy makers in sharing and implementing best policy practices for startups.

Unicorns - Recommended policies, measures and actions

Member States should support coordinated action across the single market to address financial,

regulatory, and administrative barriers and mobilise public policies tackling a comprehensive range

of domains:

- promote tech transfer, facilitate the creation of spinoffs from universities and research

centres;

- mobilise public procurement budget to procure innovative products and services from

startups;

- increase the amount and diversity of private capital (for example from national pension

funds) available for co-investing in high-growth startups;

- identify and support tech innovators in their countries (e.g. identified through the innovation

radar, or EIC or the Strategic Technologies for Europe Platform Seal of Excellence).

7 European Commission, Savings and Investments Union, A Strategy to Foster Citizens’ Wealth and Economic Competitiveness in the EU, COM(2025) 124 final, 2025.

8 Website: https://esnalliance.eu/.

5

ii. Fostering Ecosystems and infrastructure for an AI continent

Connectivity

Modern connectivity is no longer a collection of separate technologies— satellites, submarine

cables, mobile and fixed networks—but a deeply interconnected ecosystem. To respond to the

growing demand for critical, low-latency applications, such as autonomous vehicles and remote

surgery, higher amounts of data9 need to flow seamlessly across all these domains, as disruptions in

one can affect the entire network’s performance and security. This requires a global approach,

spanning from orbital assets to terrestrial infrastructures in a unified, resilient, and globally optimised

system. The EU must already lay the the foundation for this approach, with full coverage of fibre and

accelerated development of stand-alone 5G.

Regarding fixed connectivity, accelerated action is needed to meet 2030 targets. Very high Capacity

Networks (VHCN) coverage reached 82.5% in 2024, with a growth rate of 4.9%, while fibre coverage

stood at 69.2% of households in 2024, marking an 8.4% annual increase. However, at the current pace,

full coverage would only be achieved by 2051. In particular, rural deployment of fibre lags behind,

with just 58.8% coverage in 2024.

Data on the uptake of gigabit connectivity and 5G shows an upward trend, although there is still

room for improvement. In 2024, only 22.3% of fixed broadband subscriptions were at speeds of 1

Gbps or higher (up from 18.5% in 2023). Overall, basic 5G coverage10 across the EU reached 94.3% in

2024, which is comparable to the 97% estimated coverage in the US and 95% in China and India11.

Rural 5G coverage in the EU and in the US are comparable with the EU at 79.6% and the US at 82%.

Both regions have lower rural coverage compared to China (85.2% estimated) and India, which leads

with 92.1% rural coverage. 5G take-up (share of the population using 5G SIM cards) increased in the

EU from 21.7% to 35.6% in 2024. This is higher than India's 11.1%, but it is still significantly behind

the US (96.5%) and China (73.1%). Ensuring that the spectrum needs for future connectivity are met

is another critical challenge, while the incomplete assignment of the three 5G pioneer bands and the

slow progress reported (on average in Europe only 75% of the relevant spectrum has been assigned

by February 2025) exacerbate the problem.

In 2025, Europe is significantly falling behind in adopting 5G stand-alone (SA) networks, with only

2% of 5G users connected via SA infrastructure12. This sluggish uptake reflects ongoing challenges in

infrastructure deployment and device readiness across the region. In stark contrast, the US is far

ahead with 24% of its 5G users operating on SA networks and China has surged with 77.1% —

underscoring the country’s aggressive roll-out of next-generation core technologies. These disparities

reveal a growing global divide in 5G evolution, spotlighting China’s technological momentum and

exposing the structural and policy hurdles hampering Europe’s shift from 5G non-stand-alone (NSA)

to true SA capabilities.

9 Statista, 2025 (Volume of data/information created, captured, copied, and consumed worldwide from 2010 to 2023, with forecasts from 2024 to 2028). 10 The current KPI for the 5G target does not reflect the actual quality of service experienced by users. It monitors areas where a 5G signal is available, regardless of the network performance. The current stage of 5G deployment can be considered only as "basic 5G”. 11 All relevant statistics related to 5G can be found at the Commission’s 5G Observatory website: https://digital- strategy.ec.europa.eu/en/policies/5g-observatory. 12 Ookla. Omdia. A Global Evaluation of Europe’s Digital Competitiveness in 5G Standalone, 2025.

6

In their National Roadmaps, Member States reported devoting a significant portion (approximately

28%) of their measures’ total budget to gigabit fixed connectivity, amounting to EUR 80.6 billion (with

EUR 56.6 billion coming from private sources). The 103 measures primarily focus on regulatory actions

to facilitate network deployment, as well as financial support for non-viable and commercially

unattractive areas and strategic parts of the networks. About one third of the measures are dedicated

to each of the two areas. In their roadmap adjustments, Member States maintained a strong emphasis

on regulatory actions to facilitate network deployment.

In terms of 5G investments, Member States reported investing EUR 5.9 billion (with EUR 2.9 billion

coming from non-public funds), which accounts for approximately 2% of the total budget of their

measures. The 39 measures for 5G focus on spectrum management, as well as financial support for

non-viable and commercially unattractive areas, and strategic parts of the network. There is equal

emphasis on each of the two areas. In their roadmap adjustments, Member States placed a significant

focus on increasing financial support for 5G networks.

To improve market incentives to build the digital networks of the future, the Commission is working

on a future Digital Networks Act (DNA), to be proposed by the end of 2025, aiming to improve digital

connectivity for all end-users. In parallel, the Commission is setting up 5G standalone large-scale pilots

with EUR 205 million funding under the Connecting Europe Facility, a large-scale pilot for Telco-edge-

cloud deployments under Horizon Europe (EUR 75 million funding), as well as taking a proactive role

in the global race for 6G by developing a spectrum roadmap and shaping global standards.

Regarding satellite connectivity (broadband internet, direct-to-device or D2D and Internet of Things

or IoT satellite), the EU is facing a dual challenge of capacity and sovereignty. The EU remains heavily

reliant on non-EU actors to access space, notably SpaceX launchers, and on US satellite constellations

such as Starlink, while the satellite capacity of EU operators lags behind its competitors. Comparing

the number of satellites paints a stark picture for the EU which has only 3 893 launched and planned

satellites. China has launched 220 satellites and has an additional 27 198 planned, and the US has

7 633 launched and additional 33 397 planned - both countries have very ambitious expansion plans

for the coming years13. Satellites are becoming an essential component of an efficient, secure and

resilient connectivity network, increasingly providing low latency broadband connectivity. The

convergence of non-terrestrial and terrestrial networks is accelerating, including in 5G and future 6G

systems, increasing mobile coverage through satellite D2D connections—and improving network

resilience and security with advanced encryption.

13 Detecon International GmbH, Study on Mobile satellite services (MSS) in the 2 GHz band in the EU, 2025.

7

Already counting on GOVSATCOV, the EU will start improving its strategic presence in space with

the development of IRIS². IRIS² is the new EU multi-orbit satellite constellation14 of 292 satellites

which will provide for secure connectivity and high-speed broadband to eliminate connectivity dead

zones. In December 2024, the Commission and the SpaceRISE industry consortium, comprising the

three major EU satellite operators, signed a 12-year concession contract for the design, development,

and operation of IRIS². On the regulatory side, the Commission continues work with the Radio

Spectrum Policy Group (RSPG) to develop a common approach to define common requirements for

satellite constellations accessing the EU market and satellite D2D and to explore the potential of the

EU harmonised 2 GHz Mobile Satellite System (MSS) frequency band, which will become available for

reassignment in 2027, as a strategic tool to support its ambitions in the space market.

Submarine data cables are the backbone of global digital communication, carrying over 99% of

international data traffic, which makes their security and resilience a top priority for the EU. In 2025,

the EU has taken several steps to mitigate potential vulnerabilities that could be exploited by

geopolitical adversaries (see section on cybersecurity below) and invested considerably in studies and

works supporting submarine cables and backbone infrastructure. CEF-Digital already supports 51

Global Gateways projects (mostly on submarine cables) for a total investment of EUR 420 million. The

demand for CEF funding is constantly increasing for submarine cables: the total requested funding is

almost 6 times higher than the available budget in forth call.

Connectivity infrastructure - Recommended policies, measures and actions

Member States should:

- introduce targeted measures to accelerate fibre roll-out and take-up by end-users;

- use regulatory and financing measures to incentivise the densification of 5G networks, also

based on EU-harmonised mm-wave spectrum, and accelerate the deployment of secure 5G

stand-alone networks, including by fostering cross-border collaborations and promoting

innovative use cases;

- support coordinated action for planning and developing a reliable, sovereign and resilient

network of digital infrastructures and capacities, encompassing backbone terrestrial,

submarine and satellite networks, across the EU and with international partner countries.

Cloud and edge infrastructures

The role of edge nodes is critical in the future AI ecosystem. Edge computing enables more immediate

AI processing of massive data volumes and intelligent interpretation of data in minimal processing

times (milliseconds). It also provides a more secure processing environment and reduces data

transmission costs and network congestion. The applications are numerous, including video

observation, analysis and asset/equipment monitoring, tracking and performance optimisation15.

14 Meaning covering low Earth orbit (LEO), medium Earth orbit (MEO) and geostationary Earth orbit (GEO). 15 Edge Observatory for the Digital Decade, Edge Deployment Data report 1, 2023.

8

In 2024, it is estimated that a total of 2 257 edge nodes were deployed across the EU, which is a single-

year increase of 1 072 new nodes compared to 2023. 2025 represents a pivotal moment in the

deployment trajectory; it is expected to see 1 455 new nodes deployed, the biggest single year

increase, which is in line with the estimated trajectory to reach 10 000 by 2030. The density of edge

nodes across the EU reveals varying levels of deployment across Member States. France, Germany,

Italy, and Spain are at the forefront of edge node deployment. Today’s edge node deployments mainly

address the critical need for accessing real-time data, with 20% of organisations already using these

solutions extensively and 42% planning to adopt them. As AI and machine learning applications evolve,

businesses are likely to adopt edge nodes more with a promising future adoption rate of 54%16. This

underlines the transformative potential of AI and machine learning in driving business innovation,

informing decision-making, and monetising edge solutions.

Growing data centre capacity across Member States will also be critical in supporting the

development of AI. The amount of computing power utilised to train leading AI systems has expanded

by 350 million times over the past 13 years17 and, since 2010, the training computing power used to

create AI models has been growing at a pace of 4.6 times per year18, underlying the dependence of

AI on cloud computing infrastructure and software to train and use AI models at scale19. The

investment needs for developing cloud infrastructures are massive. Europe today has around 8-10

GW of installed data centre capacity, amounting to roughly a third of the installed capacity in the

US and half of the installed capacity of China20. Even though Europe’s capacity is projected to increase

significantly, potentially reaching 70% growth by 2030, the gap with the US is expected to widen

further, as US data centre capacity is set to double in the same period21. Industry forecasts predict

that demand for data centre services will outpace supply, widening the gap in Europe’s cloud

computing capacity relative to global competitors22.

In this context, the EU Cloud and AI Development Act will be key to accelerate the deployment of

data centres in Europe, by cutting red tape, accelerating permitting procedures, improving access to

land, finance and energy, and creating the right conditions to incentivise large investments in energy-

efficient cloud and edge capacity. The act will address these obstacles, with a view to at least tripling

the EU’s data centre capacity within the next five to seven years and bringing it to a level that meets

the needs of EU businesses and public administrations by 2035. Finally, several Member States of the

16 Edge observatory for Digital Decade, Edge Deployment Data Report – 3rd report, 2024. 17 Lennart Heim, Markus Anderljung, Emma Bluemke, Robert Trager, Centre of the Governance of AI, “Computing Power and the Governance of AI”, 2024. 18 EPOCH AI, Notable AI models, 2025. 19 OECD (2023) "A blueprint for building national compute capacity for AI", OECD Digital Economy Papers, No. 350, OECD Publishing, Paris. 20 Hintemann, R.; Hinterholzer, S.; Progni, K. (2024a). Data centes in Germany - Current market developments 2024. Berlin: Bitkom e.V. Retrieved from Bitkom e.V. website: https://www.bitkom.org/Bitkom/Publikationen/Studie-Rechenzentren-in-Deutschland. 21 Ibid. 22 An upcoming study will consolidate these figures and provide DG CNECT with more granular data on capacity and needs, today and in 2030.

9

Joint European Forum for IPCEI (JEF-IPCEI) in November 2024 decided to enter into the design phase

of two new potential Important Projects of Common European Interest (IPCEI). These new initiatives,

focused on innovative AI Services (IPCEI-AI) and on deploying computing infrastructure (IPCEI-ECI),

amongst others to support the ambitions set out in the AI Continent Action Plan23.

Moving forward it will be crucial for the EU to closely monitor the deployment of data centre capacity

across Member States in cloud and edge infrastructures. Ensuring a balanced and strategic expansion

of data centres is essential to supporting the growing demand for AI compute capacity. In practice, it

will be fundamental to include the systematic monitoring of investments in infrastructure and data

centres. This would help ensure that European businesses and the public sector have adequate access

to the necessary compute capacity to benefit from edge, cloud computing and AI-driven solutions.

Cloud and edge infrastructure - Recommended policies, measures and actions

Member States should:

- support the deployment of secure and sustainable cloud and edge nodes and focus national

efforts on infrastructure-targeted investments and strategies to ensure that businesses have

access to the sovereign compute infrastructure required for serving their cloud and AI needs.

- closely work with the Commission on the upcoming Cloud and AI Development Act, aiming

to at least triple EU data centre capacity within the next five to seven years and bringing it

to a level that matches the demands of EU businesses and administrations by 2035. This is

an objective that could become a new Digital Decade target.

- engage fully with the Commission in the discussion on the outcome of the study supporting

the Cloud and AI Development Act to establish methods for assessing and tracking the EU

cloud compute infrastructure capacity.

Semiconductors

In 2024 the EU's share of global value chain revenues was 10.5%, still far from the 2030 target of

20%. Huge investments were approved in the last semester of the previous US administration, and

China is accelerating its investment in legacy chips manufacturing. The EU’s share is projected to

increase again moderately in the coming years driven by the steady growth of the EU’s value chain

revenues, in a context of sustained massive investments in other regions of the world, responding to

strong growth of the global market revenues now projected to pass EUR 1.4 trillion in 2030. This

implies that the EU's semiconductor revenues must grow more than four times their current value to

achieve the Digital Decade target by 2030.

23 AI Continent Action Plan, COM(2025) 165 final.

10

In their National Roadmaps, Member States have committed to investing a substantial EUR 49.2

billion in semiconductors, accounting for 17% of the roadmaps’ total budget across all targets. Private

sources are expected to contribute EUR 8.6 billion to this investment24. The 52 measures reported in

the roadmaps mainly focus on supporting R&D and boosting production capacity and industrial

deployment of semiconductors. Roughly one-third of the measures are dedicated to each of these

areas, indicating a balanced approach to driving growth and innovation. These areas also remain a

priority in the Member States’ roadmap adjustments.

The European Chips Act has established a framework to attract investments from major

semiconductor manufacturers into a first-of-a-kind for EU facilities. The first seven projects announced

already exceeding EUR 30 billion in investments and there are other promising projects worth almost

another EUR 30 billion in the pipeline. The approved IPCEI on Microelectronics and Communication

Technologies (IPCEI ME-CT) brings together 14 Member States and 56 companies, channelling around

EUR 20 billion from both private and public sources into 68 collaborative projects across multiple

countries. Furthermore, a proposal for new IPCEIs on advanced semiconductor technologies is

currently in the design phase. Moreover, the Chips Act is the basis for supporting five pilot lines with

a total of EUR 3.7 billion funding. These projects will bridge the gap between laboratory innovation

and industrial-scale manufacturing in key areas such as beyond 2nm leading-edge system-on-chip,

fully depleted silicon-on-insulator applications, advanced packaging, wide band gap materials, and

photonic integrated circuits.

For Europe to compete globally in the semiconductor sector, it is essential to substantially increase

investments and to continue its commitment to the leading value chain areas, including

semiconductor equipment, chips design, analogue components, sensors, photonics, while also

securing a strong entry into emerging markets such as computing and AI-oriented silicon.

With this aim in mind, the Commission is starting the formal review of the Chips Act, which is planned

by Q3 2026, with a clear support for a Chips Act 2.0 from industry, some Member States, and other

stakeholders.

24 Please note that measures included in the national roadmaps might draw on existing funding programmes and might include investments under the IPCEI mentioned in this paragraph.

11

Semiconductors - Recommended policies, measures and actions

Member States should:

- increase investments, stimulate secure and sustainable domestic chip design and

manufacturing capabilities and continue their commitment in supporting both essential

semiconductors and cutting-edge chips in leading value chain areas;

- enable a conducive investment framework including by developing the workforce with the

semiconductor skills needed.

Quantum and High Performance Computing (HPC)

The EU reached and exceeded the target in 2024 as the first two quantum simulators were deployed

in France and Germany25. Moreover, it is expected that six additional quantum computers will be

deployed until the end of 2025 as several procurement procedures are currently ongoing.

In their National Roadmaps, Member States reported investing EUR 4.1 billion in quantum

computing (1% of the total budget of the National Roadmaps), of which EUR 3.8 billion come from

private sources. The 63 measures reported mainly focus on supporting R&D and deploying quantum

technologies, with roughly one third of the measures dedicated to each area. In their adjustments,

Member States primarily focused on R&D for quantum technologies.

Quantum computing is a priority for the EU’s leadership as a foundational technology, with frequent

technological breakthroughs, increasing geopolitical focus and regions taking measures to secure their

interests in this strategic field. Quantum technologies are poised to revolutionise multiple industries,

driving innovation in healthcare, transportation, energy, defence, chemicals, and pharmaceuticals.

Following the Quantum Technology Flagship in 2018, committing EUR 1 billion over a decade to

reinforce Europe’s leadership, total funding has grown to EUR 7 billion.

Despite being a leading source of public funding for R&I in quantum26, the EU still struggle to

mobilise private finance to scale up, attracting only 5% of global private funding (50% goes to US

companies)27. This limited private funding hinders the scale-up capacity and contributes to brain drain

and intellectual property migration. Moreover, it creates dependence on non-EU capital and

25 Key Performance Indicators for Quantum Technologies in Europe, Strategic Advisory Board of the European Quantum Flagship, March 2025. 26 The signature of the Quantum Declaration by 26 Member States confirming the strategic importance of quantum technologies and committing to collaborating on the development of a world-class quantum technology ecosystem across Europe. 27 Draghi, M., The future of European competitiveness, 2024. According to another independent report by Olivier Ezratty, several US quantum firms attracted private VC funding in hundreds of millions of dollars whereas most EU start-ups operate with under EUR 20 million (Opinions Libres, Understanding quantum technologies 2024).

12

platforms, putting the EU’s quantum sovereignty at risk, especially for hardware and full-stack

quantum solutions.

The European Investment Council has already invested over EUR 200 million in all the fields of

quantum technologies (sensing, communication and computing) and announced a new STEP Scale-

Up scheme28, making up to EUR 900 million of deep tech scale up funding available.

The Commission is fostering the development of Quantum Pilot Lines to strengthen Europe's strategic

autonomy in quantum technologies. In 2025, six pilot lines for quantum chips were selected under

the Chips Joint Undertaking (JU), bridging laboratory prototypes and industrial manufacturing. QU-

PILOT ensures technology maturation (TRL 4 – 7), quality control, and certification processes, paving

the way for the future stability pilot lines under the Chips JU (TRL 8 – 9). It offers open access to

support startups, SMEs, and academia, preventing a critical gap between R&D and industrial

production. The Quantum Strategy and Quantum Act will set out the EU’s plans to establish itself as

the global leader in quantum technologies by 2030 and beyond.

The High-Performance Computing JU (EuroHPC) is contributing fully to the Digital Decade’s quantum

acceleration target by 2025 and has already selected eight sites across the Union to host the first EU

quantum computers in Czechia, Germany, Spain, France, Italy, Poland, Luxembourg and the

Netherlands.

Since its establishment in 2018, EuroHPC is leading the development of a world class supercomputing

infrastructure. Over the past five years, EuroHPC has contributed to the acquisition of eight

supercomputers, including computers that are among the most powerful in the world. These

computers include LUMI (ranked #8 globally), Leonardo (#9), and MareNostrum 5 (#11), which

collectively multiply Europe’s computational capabilities. EuroHPC has also helped develop the first

European system to reach the exascale frontier (JUPITER), which will become fully operational in Q2

2025. A second exascale supercomputer (Alice Recoque) is to be installed within the next year. Two

further mid-range EuroHPC systems in Greece and Sweden are currently being procured. These efforts

have contributed to developing a world-leading, secure, and interconnected supercomputing

ecosystem, broadening HPC usage, and cultivating essential skills for European science and industry.

With the launch of the AI Factories initiative, nine new AI optimised supercomputers will be procured

and deployed across the EU in 2025 and 2026, to match the EU’s ambition of becoming a leading AI

Continent. EuroHPC supercomputers have already enabled many scientific breakthroughs. For

example, in 2024 the unprecedented and unique kilometre-scale Earth system models and global

multi-decadal climate projections up to year 2050 were made possible through cooperation between

EuroHPC and the EU’s Destination Earth initiative29. This initiative has contributed to better predicting

and mitigating the effects of climate change and extreme weather events in the EU.

Both HPC and quantum computing will play a key role in the development of AI Factories and

Gigafactories as presented in the AI Continent Action Plan. The AI Factories will deploy and operate

AI-dedicated supercomputers connected to large data centres. These Factories will support AI startups

and research ecosystems by providing supercomputing services for the large-scale training and

development of trustworthy and ethical AI models, particularly in health, climate change, robotics,

and automated driving. Additionally, AI Factories will foster talent development through advanced

education, training, and reskilling programmes for AI stakeholders.

28 European Innovation Council, STEP scale up. 29 Available at: https://destination-earth.eu/.

13

Quantum technologies - Recommended policies, measures and actions

Member States should:

- step up and coordinate investment in quantum technologies across Member States, and strive to

increase private sector investment;

- strengthen efforts in the area of AI infrastructure, with robust support to the AI Factories and other

EU initiatives in the field of AI, fostering a collaborative environment and maximizing the impact of

these efforts.

b. Foster dissemination of digital technologies in the economy

A key factor undermining Europe’s competitiveness is the insufficient dissemination of digital

technologies across its economy. This limited uptake hampers productivity growth and limits

businesses’ ability to leverage technology for the creation of innovative services and business

models30.

Achieving a basic level of digital intensity among more than 90% of EU SMEs is a key target of the

EU’s Digital Decade strategy. As of 2024, 72.9% of SMEs had reached at least a basic level of digital

intensity, up from 69.0% in 2022—a modest 2.8% annual growth. This is insufficient to reach the 2030

target before 2045, with only 67.9% of SMEs expected to meet the target by 2030.

Progress is uneven across Member States and sectors. While countries like Finland and Denmark have

already met the target, others remain well below the EU average. Digital intensity also varies

significantly between industries, with high-tech sectors like ICT outperforming traditional sectors such

as construction, accommodation, and food services. SMEs face several barriers to digitalisation,

including a limited awareness of digital technologies and cybersecurity, lack of funding for

digitalisation, and digital skills shortages. To address these, the EU and Member States have

introduced support measures such as knowledge-building initiatives, financial incentives, and

ecosystem partnerships. In their National Roadmaps, 166 measures corresponding to a total of

EUR 48.2 billion were reported as supporting the digitalisation of SMEs. The measures primarily focus

on facilitating the uptake and deployment of digital technologies, as well as strengthening the broader

ecosystem through activities such as information sharing, knowledge exchange and collaboration on

digital technologies.

A cornerstone of this support is the European Digital Innovation Hubs (EDIHs) network, launched in

2023, now covering nearly 90% of the EU’s regions. EDIHs provide training, networking, funding

advice, and opportunities for SMEs to test digital solutions before investing31. Thousands of digital

maturity assessments have helped SMEs identify areas for improvement, with 90% of participants

showing increased digital maturity after engaging with EDIHs. The Digital Maturity Assessment Tool

(DMAT) shows that SMEs average a score of 40/100, which indicates a moderate level of digitalisation,

with relatively strong areas like data management and cybersecurity, while AI & automation remains

weak. Progress in advanced digital areas often depends on solid foundations in strategy, employee

engagement, and data handling. Sectors like finance and ICT lead in digital maturity, while agriculture

30 Europe’s choice, Political Guidelines for the next European Commission 2024−2029, 2024 (page 9).

31 De Nigris, S., Kalpaka, A. and Nepelski, D., Characteristics and regional coverage of the European Digital Innovation Hubs network, Publications Office of the European Union, Luxembourg, 2023, doi:10.2760/590526, JRC134620.

14

and forestry lag behind. On average, firms working with EDIHs improve their DMAT scores by seven

points in the second assessment, reflecting the effectiveness of targeted support in advancing SME

digital transformation across the EU32.

Digitalisation of SMEs - Recommended policies, measures and actions

Member States should strengthen their policies to accelerate SME digitalisation, with a particular

focus on the integrating and adopting AI and tailored support within the framework of EDIHs and

testing and experimentation facilities (TEFs).

i. Take up of AI

AI has become a critical factor for competitiveness across all sectors of the economy. In 2024 the share

of EU enterprises using AI rose significantly from 8.1% to 13.5%—a 67% year-on-year increase.

However, this remains well below the Digital Decade target of 75% by 2030, which is not expected to

be met until 2042, with only 35.9% adoption projected by 2030.

Large enterprises continue to lead in AI adoption, with a usage rate of 41.2%, compared to 12.6%

among SMEs—a gap of nearly 29 percentage points. However, an encouraging trend is that small

companies are accelerating, showing a 71% growth rate, more than double that of larger firms.

AI uptake is advanced in a few sectors - information and communication, and professional, scientific,

and technical service, whereas the construction and accommodation are well below the average.

Adoption rates vary across the EU, ranging from 27.6% in Denmark to 3.1% in Romania. Nevertheless,

growth is broadly distributed, with the fastest increases often seen in countries that previously had

low uptake.

In their National Roadmaps, Member States reported investments of EUR 10.9 billion to support the

uptake of AI, cloud or data analytics – representing approximately 4% of the total budget across

roadmaps and covering 196 measures in total. Among these, roughly 34 measures specifically target

AI, accounting for EUR 1.3 billion. The measures supporting the uptake of AI, cloud and data analytics

are evenly distributed across measures to enhance the ecosystems and knowledge exchange,

establish enabling framework conditions and develop capabilities across these technologies. However,

32 European Commission: Joint Research Centre, Carpentier, E., D’Adda, D., Nepelski, D. and Stake, J., European Digital Innovation Hubs Network’s activities and customers, Publications Office of the European Union, Luxembourg, 2025, https://data.europa.eu/doi/10.2760/7784020, JRC140547; and Joint Research Centre, Nepelski, D. and Stake, J., The EDIH SME DMAT 2.0: Revision of the EDIH Digital Maturity Assessment Framework for SMEs, Publications Office of the European Union, Luxembourg, 2024, JRC141446.

15

the AI-specific measures place a stronger emphasis on building AI capabilities. This focus is also

reflected in Member States’ roadmap adjustments.

Overall, while momentum is building, reaching the EU’s AI targets will require more targeted actions

and support, especially for SMEs and those sectors and regions lagging behind.

Following a slowdown in 2022 and 2023, AI investments have bounced back strongly. According to

Dealroom, global venture capital investments in AI reached USD124.9 billion in 2024, marking a 58

percent increase on 202333, while private investments in AI in the EU grew by 22 percent in 2024 to

USD 10.8 billion34.

A key measure is the GenAI4EU initiative, which takes a sectoral approach and has so far allocated

close to EUR 700 million in planned Horizon Europe and Digital Europe programme calls in 2025.

GenAI4EU aims to stimulate the uptake of generative AI in a wide range of sectors fostering

collaboration between AI startups and deployers of AI in industry and the public sector. GenAI4EU is

dedicated to unlocking the revolutionary potential of generative AI through ambitious projects. In

particular, the initiative aims to optimise production lines in manufacturing, improve robot autonomy

and human-robot collaboration in complex tasks, as well as to increase the EU’s cyber-defence and

medical imaging capabilities.

At the AI Action Summit in Paris, the Commission announced InvestAI, an initiative to mobilise EUR

200 billion for investment in AI. This includes the launch of the InvestAI Facility, with a view to mobilise

EUR 20 billion investment in AI infrastructure. The investment will support in particular up to five AI

Gigafactories across the EU, building on the EUR 10 million invested in supercomputing infrastructures

and AI Factories in 2021-2027.

The AI Office has been actively working on boosting AI adoption through various support instruments

to boost technological integration across Member States. Recently, the EU has intensified its focus on

AI adoption, designating it as a main priority to ensure competitive and innovative growth. The various

initiatives mentioned in this chapter are part of the AI Continent Action Plan published on 9 April

2025. The plan outlines a set of actions on computing infrastructure, data, the development of AI

algorithms and adoption, skills, and regulatory simplification to make the EU a global leader in AI.

Moreover, the Commission is adopting the Apply AI strategy to boost new industrial uses of AI and to

improve the delivery of a variety of services. The strategy will assess the potential of AI technologies

in strategic sectors, including advanced manufacturing; aerospace; security and defence; agri-food;

energy and fusion research; environment and climate; mobility and automotive; pharmaceutical;

biotechnology; advanced materials design; robotics; electronic communications; cultural and creative

industries; and science. Furthermore, the public sector will be a driver of the strategy. To ensure

consistency among the different support measures for AI, the Apply AI strategy, on which a wide array

of stakeholders and the public are consulted, will strengthen the interplay and effectiveness of

support instruments and target them towards the needs of AI adopters.

The Apply AI strategy will identify policy actions and concrete deliverables per sector, with key

performance indicators to be achieved. The Commission will contribute to supporting developments

through its funding programmes as well as through enablers. These enablers include the AI Factories

and Gigafactories, Data Spaces, Testing and Experimentation Facilities, European Digital Innovation

33 Dealroom, Artificial intelligence, 2024. Available at: https://app.dealroom.co/sector/technology/artificial%20intelligence/overview. 34 Dealroom, Artificial intelligence, 2024. Available at: https://app.dealroom.co/sector/technology/artificial%20intelligence/overview?hqType=regions&hqValue=EU27.

16

Hubs, and AI Skills Academies. This, in turn, will support AI uptake by European enterprises and the

public sector.

AI Factories are open and dynamic AI ecosystems created around the public network of Europe’s

world-leading EuroHPC supercomputers. They support the EU AI industrial and research ecosystems

by bringing together computer power, data and talent to create cutting-edge, trustworthy AI models

and applications. They foster collaboration across Europe, unlocking the potential of AI companies, in

particular SMEs and start-ups, universities, and industry. AI Factories serve as one-stop shops driving

advancements in AI applications across various sectors, such as health, manufacturing, climate and

finance. In December 2024, seven consortia were selected to host the first AI Factories35, and in March

2025, the EuroHPC announced the selection of another six new AI Factories36. These AI Factories are

expected to more than triple the current EuroHPC AI computing capacity. Overall investments in

supercomputing infrastructures and AI Factories in the EU will reach EUR 10 billion between 2021

and2027.

In parallel, European Digital Innovation Hubs (EDIHs) will function as AI Experience Centres providing

stakeholders with the opportunity to test AI solutions before investing in them, but also offering

funding advice, networking opportunities, and trainings. From December 2025, EDIHs will increasingly

focus on AI uptake and ensure the adoption of AI solutions across sectors.

The Network of European Digital Innovation Hubs will work in close synergy with the AI Factories

ecosystem. Among others, it will facilitate companies’ access to the computing and data resources of

the AI Factories, as well as to other AI initiatives, including regulatory sandboxes and testing and

experimentation facilities. Increasing the level of AI skills in the Union is one of the priorities that the

Apply AI strategy will pursue, as an AI-literate workforce is necessary to boost AI uptake. In particular,

the AI Skills Academy will function as a one-stop shop providing education and training on skills for

developing and deploying AI, and in particular generative AI. Looking ahead, interested Member States

with the support of the Commission are designing a possible new Important Project of Common

European Interest focused on AI, known as IPCEI-AI. The goal is to support R&D&I and first industrial

deployment activities, aiming to develop innovative AI technologies and services, such as capabilities

for training and deploying foundational models, such as AI models tailored to specific use cases.

Best practice highlights

The Best Practice Accelerator’s (BPA)37 Technology Take-up Cluster, launched in August 2024 under

Belgium’s leadership, supports Member States in scaling up the adoption of advanced digital

technologies by promoting high-level, replicable national initiatives. As part of the Digital Decade

governance framework, the cluster has so far organised two workshops—focusing on AI uptake and

on data and interoperability—with the participation of all Member States and presentations from

Belgium, Greece, and Finland. Eight best practices have been submitted by Belgium, Denmark, Finland,

Germany, Hungary, and the Netherlands, covering themes such as AI adoption, SME digitalisation,

personal data control, supply chain optimisation, IPv6 roll-out, and national tech strategies.

Workshops were marked by high Member State engagement and interest in the replicability of the

35 They were submitted by Finland (with Czechia, Denmark, Estonia, Norway and Poland), Italy (with Austria and Slovenia), Spain (with the participation of Portugal, Romania and Türkiye) as well as Luxembourg, Sweden, Germany, and Greece. 36 Located in Austria, Bulgaria, France, Germany, Poland, and Slovenia. Bringing together 17 Member States and two EuroHPC Participating States. 37 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are available to all Member States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital Skills, Green IT, and the Uptake of Digital Technologies.

17

practices shared. Upcoming sessions will continue to explore enabling frameworks and support

schemes to accelerate the widespread use of frontier technologies.

Take up of Cloud-AI-Big Data - Recommended policies, measures and actions

Member States should:

- take targeted measures and earmark resources to support the adoption of advanced,

trustworthy and sovereign AI-enabled solutions; step up investment, also by mobilising the

private sector, in general purpose/generative AI.

- focus national efforts on incentivising infrastructure investments to ensure that businesses

and the public sector have access to the compute infrastructure required for serving their

cloud and AI needs, especially for fine-tuning and inference operations.

- foster secure and trusted data sharing, supporting the deployment of European Data

Spaces, including via practical tools such as model contract clauses, taking full advantage

of relevant existing EDICs and accelerating those being prepared.

c. Security & harnessing digital for EU’s resilience in a context of hybrid threats

i. Cybersecurity

The Cybersecurity landscape

As geopolitical and economic tensions grow, cyber threats escalate with espionage, sabotage, and

disinformation campaigns becoming key tools for nations to manipulate events and secure a strategic

advantage. Cyberespionage campaigns targeting EU Member States and EU institutions, bodies and

agencies are continuous and remain a persistent and severe threat. In the context of the cybercrime

ecosystem, ransomware remains one of the most impactful threats for EU Member States. There has

been a shift from encryption to data exfiltration and with SMEs becoming a more attractive target for

cybercriminals, and the double extortion tactic has become the norm for well-established ransomware

groups38. In 2024, the healthcare sector was particularly affected, with ransomware accounting for

71% of cyber incidents impacting patient care39. Meanwhile, ransomware attacks rose by 11%

compared to 2023, but enforcement actions against major groups like LockBit have led to a more

fragmented threat environment, with 46 new ransomware groups identified in 202440.

Supply chain attacks have also surged. Cybercriminals exploit weaknesses in third-party vendors and

service providers. This is particularly problematic where there is reliance on technology from high-risk

suppliers subject to the jurisdiction of a third country that requires reporting information on software

or hardware vulnerabilities to its authorities before they know to be exploited. States-sponsored

actors may also preposition themselves in critical infrastructure with the intention of causing

disruption later, for example during a conflict. Internet of Things malware attacks increased by 107%

in the first half of 202441. There have been concerning trends in public cybersecurity awareness42 ,with

declining confidence among the EU population in their ability to protect themselves from cybercrime

and generally low awareness about reporting mechanisms. Overreliance on a single vendor for critical

38 ENISA, 2024 Report on the State of Cybersecurity in the Union, 2024. 39 Joint Research Centre, Cyber security in the health and medicine sector, 2024. 40 Cyberint platform, Ransomware Annual Report 2024, 2025. 41 SonicWal, SonicWall 2024 Mid-Year Cyber Threat Report, 2024. 42 ENISA, 2024 Report on the State of Cybersecurity in the Union, 2024.

18

operations, especially non-European vendors, can result in major risks to all sectors of the economy,

as evidenced by recent major incidents like the CrowdStrike outage of 2024.

With an estimated 299 000 cybersecurity professionals missing in its workforce, the EU faces a critical

gap43. The Cybersecurity Skills Academy44 contributes to addressing this challenge with concrete

actions entrusted to the EU Agency for Cybersecurity (ENISA), such as developing the European

Cybersecurity Skills Framework (ECSF)45 or piloting a cybersecurity skills attestation scheme

supporting recognition and portability of skills acquired by cybersecurity professionals.

Cybersecurity in enterprises

When it comes to cybersecurity in enterprises, 92.8% of surveyed enterprises46 with more than 10

employees in the EU used at least one ICT security measure in 2024. Only 35.5% of the enterprises

had documentation on measures, practices or procedures on ICT security, and only 34.1% of them had

carried out an ICT risk assessment. Commonly used measures included strong password

authentication (83.7% of enterprises) and data backups in a separate location (79.2% of enterprises).

According to Eurostat, in 2024, 21.5% of enterprises experienced ICT-related security incidents leading

to some adverse consequences.

The median information security spending rose to 9.0% of IT budgets (up 1.9 percentage points)47,

with higher perceived maturity in entities already covered by the Network and Information Security

(NIS) Directive48. Among all sectors, the telecommunications sector ranks highest in maturity49.

Despite their critical role in cybersecurity and digital resilience, the deployment of key Internet

standards in the EU remains slow and fragmented. IPv6 adoption in the EU stands at 36.4% (user-side)

and 16.8% (server-side), with significant disparities across Member States: adoption in some exceeds

40% (e.g. Belgium, France, Germany), while it remains below 10% in others (e.g. Croatia, Cyprus,

Malta)50.

In their National Roadmaps, Member States reported 38 measures contributing to increased

cybersecurity. Almost half of these measures are dedicated exclusively to cybersecurity, with a total

budget of EUR 0.8 billion. The other measures have a broader scope, aiming to support several targets

across all areas, with a total budget of EUR 6 billion. These initiatives often involve developing national

cybersecurity strategies, establishing cybersecurity centres, boosting cybersecurity skills and

strengthening cybersecurity capacities in businesses, public services and digital infrastructure. This

focus is also reflected in the Member States’ roadmap adjustments.

In the period 2024 - 2025, the EU significantly advanced its cybersecurity agenda. The NIS2 Directive,

which had to be transposed into national law by October 2024, sets a high level of cybersecurity for

entities operating in 18 critical sectors. Moreover, in October 2024, the Commission adopted the first

implementing act under the NIS2 Directive, specifying the cybersecurity risk management measures

and the cases in which an incident should be considered significant for companies providing digital

43 ISC2, 2024 Cybersecurity Workforce Survey Focus on the E.U, 2024. 44 Please see the website: https://digital-skills-jobs.europa.eu/en/cybersecurity-skills-academy. 45 European Cybersecurity Skills Framework (ECSF) | ENISA. 46 Eurostat (isoc_cisce_ra) and (isoc_cisce_ic); Eurostat, https://ec.europa.eu/eurostat/statistics- explained/index.php?title=ICT_security_in_enterprisesICT security in enterprises, 2024. 47 Compared to 2022. ENISA, NIS Investments 2024, 2024. 48 Directive (EU) 2016/1148 repealed by Directive (EU) 2022/2555 on measures for a high common level of cybersecurity across the Union (NIS 2 Directive). 49 ENISA, 2024 State of Cybersecurity Report, 2024. 50 EU Internet Standards Deployment Monitoring Website, available at: https://ec.europa.eu/internet-standards/downloads.html.

19

infrastructures and services. The Cyber Resilience Act51, in force since December 2024, mandates

cybersecurity requirements for digital products, with full implementation within three years. The

Cyber Solidarity Act52, effective since February 2025, established a European Cybersecurity Alert

System, consisting of Cyber Hubs that would use advanced technologies and AI-driven threat

detection. The act also laid the groundwork for the Cybersecurity Emergency Mechanism and the

Incident Review Mechanism. The Cybersecurity Act53was effectively amended in February 2025 to

enable the possible certification of managed security services. A European action plan on the

cybersecurity of hospitals and healthcare providers54 was adopted in January 2025, improving

sectoral preparedness. Finally, in February 2025, the Commission proposed a revised Cybersecurity

Blueprint, integrating civil-military coordination and crisis response mechanisms55.

Work is also progressing on the European Quantum Communication Infrastructure (EuroQCI), which

is part of the Union Secure Connectivity Programme (IRIS²). EuroQCI will provide, in first instance, a

highly secure, quantum-protected service for the exchange of cryptographic keys, for symmetric

encryption of communications between governmental entities and for protecting critical

infrastructures. Throughout 2024, efforts focused on deploying national quantum communication

networks, advancing key European technologies, and preparing for the deployment of quantum

communication in space. Deployment of cross-border connections will start in 2026. The current

EuroQCI efforts on point-to-point links and more complex networks are initiating the long-term

endeavour of transitioning to future networks fully based on quantum technologies. However, the

threat posed by quantum computing to cryptography must be addressed now, in a manner that is

compatible with the way modern digital networks are designed and function. The transition to Post-

Quantum Cryptography (PQC) remains essential, and such technology will likely play a highly relevant

role also to support or hybridize with future quantum networks. To guide this transition, the

Commission published a Recommendation in 2024 encouraging the Member States to develop a

Roadmap to ensure a synchronized transition to PQC for public administrations and critical

infrastructures across the EU. Work on developing this roadmap is ongoing, in the context of the PQC

workstream in the NIS Cooperation Group, and it is also accompanied and supported by the sectorial

developments, deployments and mapping of activities in several EU projects and other Member

States’ initiatives.

Cybersecurity - Recommended policies, measures and actions

Member States that have not already done so shall transpose the NIS2 Directive as a matter of

urgency and should take actions, also going beyond what is necessary, to maximise the effects of

the full implementation of the cybersecurity acquis, including the NIS2 Directive and the 5G

cybersecurity Toolbox (encompassing where appropriate the imposition of restrictions or

exclusions as regards high-risk suppliers).

Moreover, Member States should:

51 Regulation (EU) 2024/2847 on horizontal cybersecurity requirements for products with digital elements and amending Regulations (EU) No 168/2013 and (EU) 2019/1020 and Directive (EU) 2020/1828 (Cyber Resilience Act). 52 Regulation (EU) 2025/38 laying down measures to strengthen solidarity and capacities in the Union to detect, prepare for and respond to cyber threats and incidents and amending Regulation (EU) 2021/694 (Cyber Solidarity Act). 53 For more information, please see the website: https://digital-strategy.ec.europa.eu/en/library/proposed-regulation-managed-security- services-amendment. 54 European action plan on the cybersecurity of hospitals and healthcare providers, COM (2025) 10 final. 55 For more information, please see the website: https://digital-strategy.ec.europa.eu/en/news/commission-launches-new-cybersecurity- blueprint-enhance-eu-cyber-crisis-coordination.

20

- step up efforts to increase cybersecurity capabilities, including relevant to ensure the

development of skills for the cybersecurity workforce by making use of available resources

at EU level such as the European Cybersecurity Skills Framework;

- within the NIS Cooperation Group, develop a roadmap to ensure a synchronized transition

to PQC throughout the whole EU for public administrations and critical infrastructure;

- progress in the transition of their crypto systems to post quantum cryptography by 2035,

ensuring intermediate milestones are also met for high risk use cases and/or very complex

systems to be migrated by 2030.

ii. Submarine cables security

In February, the EU adopted the Action Plan on Cable Security to strengthen the resilience of its

submarine cable infrastructure, including data cables, following a full resilience cycle—prevention,

detection, response, recovery, and deterrence. The Commission, alongside the High Representative,

will engage with Member States and partners, including NATO, to operationalise a number of concrete

actions.

To prevent incidents that could compromise the EU’s security and resilience, the Action Plan sets out

dedicated actions to improve the redundancy and security of telecommunications cables. A key

component of this effort is the allocation of nearly EUR 1 billion from the CEF Digital programme to

strengthen backbone connectivity, with a focus on cross-border digital infrastructure and to connect

EU territories with likeminded third countries. The Action Plan also promotes strengthening security

requirements, in accordance to both the NIS2 and CER Directives. As set out in the prevention section

of the Action Plan, an Expert Group comprising Member State representatives and ENISA has been

established to deliver on Recommendation (EU) 2024/779 on Secure and Resilient Submarine Cable

Infrastructures56. The Action Plan specifies that by Q4 2025, the Expert Group is expected to complete

key tasks, including a comprehensive mapping of existing and planned infrastructures, a coordinated

risk assessment (including the development of a stress testing methodology), the creation of a Cable

Security Toolbox of mitigating measures, and a priority list of Cable Projects of European Interest

(CPEIs) to be co-funded by CEF Digital. To increase the capacity to detect potential threats and

incidents early on, the Action Plan further proposes to establish an integrated surveillance

mechanism. This mechanism will be facilitated through the voluntary set up of regional cable hubs,

located in each sea basin, which will serve as centres for monitoring and analysing the status of

submarine cables, including potential suspicious activity occurring nearby. Additionally, the Action

Plan provides for investments in new technologies, such as smart cables, undersea sensors and

drones, to improve detection capacities.

The Action Plan sets out a more efficient response to incidents, building synergies between existing

EU crisis management frameworks such as the EU Cyber Blueprint and the Critical Infrastructure

Blueprint. To reduce the time to repair and mitigate the impact of incidents, it also calls for increased

repair capacities. To that end, the Commission has proposed to support modular equipment that can

be plugged to civilian vessels, and the gradual establishment of an EU Cable Repair Fleet.

To strengthen the security and resilience of submarine cables, a central role will be played by the CEF

Digital programme, including for: i) providing direct support to the funding of strategic cables (over

420 million already committed in the first three calls); ii) enhance our ability to monitor and trigger

56 Commission Recommendation (EU) 2024/779 of 26 February 2024 on Secure and Resilient Submarine Cable Infrastructures, OJ L,

2024/779, 8.3.2024.

21

early response actions in case of suspicious events (early warning systems); iii) support the

deployment of functional modules for the repair and deployment of cables.

Finally, to deter malicious actors from engaging in harmful activities, the Action Plan calls for a

significant strengthening of efforts to counter the shadow fleet of vessels. It also emphasises the

importance of boosting cable diplomacy and promoting a common interpretation of international

maritime law.

Submarine cable security: Recommended policies, measures and actions

Member States, together with the Commission, should:

- urgently operationalise the different actions outlined in the Action Plan. Building on the transposition

of NIS 2 and CER, priority should be given to the aim of ensuring comprehensive cable security.

- fast-track key deliverables, including the Expert Group’s tasks (mapping, risk assessments, Cable

Security Toolbox, priority Cable Projects of European Interest), the development of a common strategy

to reinforce cable repair capacities, and the establishment of Regional Cable Hubs. The goal of these

hubs will be to establish an integrated surveillance mechanism for the EU to monitor and respond to

cable security threats, in coordination with the cable repair capacities.

3. Protecting and empowering people, preserving EU democracies and

values

a. Empower people through digital skills

Empowering citizens and equipping workers with digital skills are at the core of Europe’s digital

transformation, in line with the Declaration on Digital Rights and Principles. Basic digital skills are

essential for economic participation, social inclusion, and democratic resilience, while the availability

of highly skilled professionals—particularly ICT specialists—is critical to Europe’s competitiveness,

technological sovereignty, and strategic autonomy.

Despite growing awareness of the need to boost digital skills across society, the pace of progress in

this area remains insufficient. In 2023, only 55.6% of adults had at least basic digital skills57. On the

basis of current trends, the EU is expected to reach a level of just under 60% by 2030 – falling

significantly short of the 80% target set in the context of the Digital Decade policy programme58. This

shortfall is particularly evident among certain demographic groups. For example: older adults, people

with low levels of education, and people not in work or looking for work face disproportionately high

risks of digital exclusion59. Although young people are often seen as digitally ‘native’, they are not

universally digitally literate: 43% of eighth-grade students (aged 13 to 14) do not reach basic levels of

digital skills, with persistent disparities based on socio-economic background and geographical

location60.

57 Eurostat, European Union Survey on the Use of ICT in Households by Individuals. Available at: https://digital-decade-desi.digital- strategy.ec.europa.eu/datasets/desi/charts/desi-indicators 58 At least basic digital skills in the EU. Historical data, Digital Decade trajectory and revised baseline trajectory towards 2030. 59 European Commission, Joint Research Centre, Bertoni, E., Cosgrove, J., & Cachia, R. (2025). Digital Skills Gaps – A Closer Look at the Digital Skills Index (DSI 2.0), 2025. JRC140617. 60 ICILS 2023 International Report: An International Perspective on Digital Literacy. Available here: https://www.iea.nl/studies/iea/icils/2023

22

At the same time, the need for ICT specialists is rising sharply. As the architects of Europe’s digital

future, these professionals play a central role in deploying advanced technologies, increasing

productivity, and delivering secure and efficient digital services. Nevertheless, the EU remains only

halfway toward reaching its 2030 target of having 20 million ICT specialists in employment.

Structural shortages persist, hindering growth in high-demand digital areas such as AI, cybersecurity,

and semiconductors. In 2024, women accounted for 19.5% of employed ICT specialists, a figure

virtually unchanged from 19.4% in 2023.

To address these challenges, the Commission, in partnership with Member States, has put in place a

comprehensive framework to strengthen digital skills across society. The Skills package61, adopted in

March 2025, puts a strong focus on digital skills as a key driver for competitiveness. It includes the

Union of Skills, an Action Plan on Basic Skills62, a STEM Education Strategic Plan63, and the upcoming

2030 Roadmap on the future of digital education and skills. To strengthen leadership in key digital

technologies, the Commission is prioritising the development of advanced digital skills, ICT talent

attraction and a resilient, future ready digital workforce. This also includes initiatives such as the

recently adopted AI Continent Action Plan and the upcoming Apply AI strategy.

To respond to the need for a more coordinated approach to digital skills education and training in the

EU, targeted at emerging skills needs of European companies, the European Commission is funding

and promoting three new Digital Skills Academies in Quantum, AI, and Virtual Worlds. These

academies will leverage strategic partnerships and act as powerful catalysts for promoting digital

careers. The Cybersecurity Skills Academy, which already helps Member States to scale up training

provision and improve coordination between industry and education providers, is being further

expanded. Furthermore, through the Chips Act and the establishment of Chips Competence Centres,

the Commission and Member States are investing in national talent pipelines for the semiconductor

sector, supporting advanced technical training and collaboration with industry.

In their National Roadmaps, Member States reported investments of EUR 24.6 billion in basic digital

skills (9% of the total budget). The 339 measures reported on the roadmaps primarily focus on

improving digital skills in formal education and promoting digital inclusion, with roughly one third of

the measures dedicated to each area. This emphasis on building digital skills is also evident in Member

States’ roadmap adjustments. For training of ICT specialists, Member States reported investing EUR

11.8 billion (4% of the total budget). The 213 measures on ICT Specialists mainly focus on increasing

the number of people with advanced and highly specialised digital skills, with around one third of

these measures targeting individuals in formal education and approximately one quarter of the

measures focusing on those already in employment. This focus is also reflected in the Member States’

61 European Commission, A Union of Skills to Equip People for a Competitive Europe, Press Release, Brussels, 5 March 2025. 62 European Commission, Action Plan on Basic Skills, 2025. 63 European Commission, STEM Education Action Plan, 2005.

23

roadmap adjustments, which include a sharp increase in measures aimed at boosting advanced digital

skills among women.

National efforts have been strengthened through collaborative mechanisms. The 2024 edition of the

European Digital Skills Awards64 recognised outstanding projects promoting inclusion, digital literacy,

and bridging digital divides. At the same time, the Digital skills and Jobs Platform65 continues to grow

as a central hub–for accessing learning opportunities, connecting over 15 000 stakeholders across

Europe.

However, as laid out in the Draghi report and reiterated in the Competitiveness Compass, Europe is

facing massive investment needs for education and skills development in sectors critical to European

competitiveness and preparedness. Mobilising public and private investments, pursuing growth-

enhancing reforms, and leveraging multi-country projects will be key to closing the talent gap in digital

skills.

The European Commission is supporting the development of the Common European Data Space for

Skills to improve our knowledge of what skills are likely to soon be in demand, helping policymakers

and educators to anticipate future needs and direct investments more effectively. Furthermore, given

the mounting global competition for digital talent, the EU is stepping up its support to Member States

and employers to attract highly skilled top-tier researchers and professionals by establishing

Multipurpose Legal Gateway Offices in selected partner countries. Where relevant, these could

underpin Talent Partnerships as well as the future EU Talent Pool. In addition, the EU will also act to

support portability of skills, addressing barriers to workers’ mobility.

Best practice highlights

The BPA Digital Skills Cluster, led by Slovenia, involved all Member States in a structured peer

exchange, with best practices submitted by Austria, Belgium, Croatia, Czechia, Finland, France,

Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Romania, Slovenia, and Spain. While only

some submitted practices, all Member States participated in the associated workshops that were held

and expressed interest in adapting successful approaches. Of the 34 practices shared, over half focus

on boosting basic digital skills for underserved groups, while 15 target the education of ICT specialists

through measures such as curriculum reform, AI training, SME upskilling, and gender equality. Five

workshops have been held so far, covering topics such as inclusion, education, AI-readiness, and the

participation of elderly, rural populations, and women in advanced skills. Future sessions will continue

to support inclusion while expanding into ICT specialisation areas such as cybersecurity,

semiconductors, and mid-career reskilling.

Digital Skills - Recommended policies, measures and actions

Member States should:

- Prioritise investment in digital education and skills in line with the Council Recommendation

on improving the provision of digital skills and competences in education and training,

including targeted policies for groups most in need;

- Promote AI literacy and basic cybersecurity practices.

64 European Commission, European Digital Skills Awards. Available at: https://digital-skills-jobs.europa.eu/en/european-digital-skills- awards-2025. 65 European Commission, Digital Skills and Jobs Platform. Available at: https://digital-skills-jobs.europa.eu/en.

24

ICT specialists - Recommended policies, measures and actions

Member States should:

- Promote ICT careers among young people, with notably a dedicated attention to girls;

- Enhance the academic offer for advanced digital skills and strengthen VET and lifelong

learning in order to contribute to the EU’s strategic digital objectives in key areas such as AI

Factories, cybersecurity, data and semiconductors;

- Support the implementation of EU Digital Skills Academies;

- Leverage EU funding opportunities and governance structures such as European Digital

Infrastructure Consortia (EDICs), the Digital Decade Best Practice Accelerator, and National

Digital Skills and Jobs Coalitions;

- Increase efforts to expand labour migration pathways to attract highly skilled ICT specialists

from non-EU countries and incentivise the return of European ICT talent to the EU,

leveraging both national and European frameworks.

b. Deploy digital solutions for people and societies

User-friendly and accessible digital public services to foster competitiveness and inclusion

In 2024, the EU made steady progress toward its Digital Decade targets for fully digital public

services. The citizen score rose to 82.3/100 (+3.6%), and the business score to 86.2/100 (+0.9%). In

their National Roadmaps, Member States reported investing EUR 13.8 billion, representing

approximately 4.8% of the total budget, to drive the digitalisation of key public services. This

investment included a comprehensive set of 287 measures, of which more than half aim to increase

the uptake, interoperability and accessibility of digital public services and around one-quarter focus

on strengthening their security and resilience of these services.

As Member States expand their offering of digital public services, ensuring technological sovereignty

and reducing reliance on foreign technologies has become an important mean to safeguard privacy,

increase resilience, and strengthen trust in EU-governed digital ecosystems. Despite the growing

digitalisation of public services across the EU, a very significant share of government digital

infrastructure still relies on non-EU-based service providers -particularly in areas such as cloud

computing, data hosting, software platforms, videoconferencing and cybersecurity solutions. With

80% of the services bought by governments and the private sector originating mostly from the US66, a

substantial share of the EUR 2 trillion that public authorities spend annually on the purchase of

services, works and supplies67 is not being spent on services originating in the EU. This dependency

might pose strategic risks, including reduced control over sensitive data, potential misalignment with

EU values and regulatory frameworks, and vulnerability to the application of third country laws.

Strategic public procurement, notably thanks to the revision of the Public Procurement Directives, as

well as the support to GovTech will play a key role to foster EU preference through public investment

and procure innovative solutions, which streamline administrative processes, foster transparency and

improve data-driven decision-making.

66 Draghi, M., The future of European competitiveness, 2024, Part A – A competitiveness strategy for Europe. 67 European Commission, The Public Procurement Data Space (PPDS). Available at: https://single-market-economy.ec.europa.eu/single- market/public-procurement/digital-procurement/public-procurement-data-space-ppds_en

25

It is also of the utmost importance to ensure that there is adequate human support to help members

of the public navigate digital services, with 9 out of 10 Europeans emphasising the significance of this

support in the Digital Decade Eurobarometer survey68.

In 2024, the use of AI in public services expanded further on EU Member States - from decision

support and personalised services, to predictive tools in healthcare. A cornerstone of the efforts to

reduce administrative burdens and support European Businesses interacting digitally will be the

European Business Wallet which will streamline business-to-business and business-to-government

interactions, enabling secure data exchange while creating new opportunities for trust service

providers.

The Single Digital Gateway and the Your Europe69 portal are key elements of the EU’s digital

infrastructure for cross-border public services. Your Europe is the main access point for national

procedures and information about rules and rights and is currently the most visited EU website. The

Once-Only Technical System70 enables the secure cross-border exchange of evidence. Its common

services are operational, and Member States are currently connecting competent authorities to it. A

cornerstone of the efforts to reduce administrative burdens and support European Businesses

interacting digitally will be the European Business Wallet which will streamline business-to-business

and business-to-government interactions, enabling secure data exchange while creating new

opportunities for trust service providers. Together with the upcoming EU Digital Identity Wallet71, the

Single Digital Gateway and the Once-Only Technical System form an integrated infrastructure for

accessing public services across the EU72. In addition, the Public Procurement Data Space simplifies

processes and improves monitoring across the Single Market73.

Other tools include the Business Registers Interconnection System (BRIS), a key transparency and

secure data exchange tool, providing the public with company information and enabling the

implementation of the ‘once-only’ principle with regard to company data and the European e-Justice

Portal which are of key importance for the digitalisation of public services and of cross-border judicial

proceedings.

The Interoperable Europe Act74, effective from April 2024, marked a significant step towards

strengthening interoperability in the public sector and the delivery of digital public services, providing

a structural framework to drive seamless, cross-border digital public services within the EU. It

introduces interoperability assessments to be carried out by publica administrations to ensure cross-

border interoperability (mandatory since January 2025) and regulatory sandboxes. It also embeds

68 Special Eurobarometer 566 on ‘the Digital Decade’ 2025, available at this link: https://digital-strategy.ec.europa.eu/en/news- redirect/883227. 69 European Commission, The Single Digital Gateway and Your Europe. Available at: https://single-market-economy.ec.europa.eu/single- market/single-digital-gateway_en 70 The Once-Only Technical System (OOTS) streamlines data retrieval for cross-border procedures, enhancing trust, efficiency, and data exchange among EU public administrations and citizens. It is an EC solution. Available at: https://interoperable- europe.ec.europa.eu/collection/digital-building-blocks/solution/once-only-technical-system-oots 71 Regulation (EU) No 910/2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC. See also: European Commission, A Digital ID and Personal Digital Wallet for EU Citizens, Residents and Business. Available at: https://ec.europa.eu/digital-building- blocks/sites/display/EUDIGITALIDENTITYWALLET/EU+Digital+Identity+Wallet+Home. 72 European Commission, The Public Procurement Data Space (PPDS). Available at: https://single-market-economy.ec.europa.eu/single- market/public-procurement/digital-procurement/public-procurement-data-space-ppds_en 73 On these topics and the potential for simplification, please see also section 5.a.i of this document. 74 Interoperable Europe Act, COM(2022) 720 final.

26

digital-ready policymaking - ensuring that future EU legislation supports digital transformation from

the outset.

Digital public services - Recommended policies, measures and actions

Member States should focus investments and regulatory measures to develop and make available

secure, sovereign and interoperable digital solutions for online public and government services,

including possibly in the context of public procurements and including the completion of the

connection of authorities to the Once-Only Technical System.

i. EU Digital Identity Wallets and European Business Wallets

The European Digital Identity (EUDI) Framework is a cornerstone of Europe’s digital transformation

and a key enabler of Digital Decade targets. Coverage continues to expand with 24 Member States

having now notified their electronic ID schemes, and 95% of EU citizens now having access to eID.

However, Hungary, Greece, and Ireland have yet to notify their schemes.

Central to this EUDI framework are the EUDI Wallets, designed to offer every EU citizen and business

secure and seamless access to both public and private services across the EU by the end of 2026. These

wallets will transform how people interact online - enabling cross-border authentication, legally valid

e-signatures, and the digital storage, presentation and verification of key documents such as IDs,

educational credentials, ePrescriptions, social security attestations, and driving licences. By replacing

multiple logins with a single trusted solution, they increase convenience, privacy, and security for

everyday transactions, travel, and access to services.

Moreover, significant legal milestones were reached. The EUDI Regulation entered into force in May

2024, followed by the adoption of nine implementing acts in November 2024 and April 2025, setting

uniform technical standards and putting in place a robust certification framework. These ensure that

all wallets are interoperable, secure, and privacy-preserving across the EU. Member States are now

mandated to provide at least one wallet by the end of 2026.

Deployment is being tested through Large Scale Pilot (LSP) projects, covering real-world use cases

from education, social security and travel to payments and eGovernment services. Since 2023, four

LSPs have been running, involving over 350 entities from nearly all Member States. In 2025, two new

consortia - WE BUILD and APTITUDE - will further scale this work with over EUR 40 million in EU and

Member State funding. These projects cover 17 use cases, including supply chains, business services,

vehicle registration certificates, and digital travel credentials. These pilots are supported by the Digital

Europe Programme.

Looking ahead, the European Business Wallet proposal will build on the EUDI Framework, is planned

in Q4 2025. This proposal will seek to facilitate business interactions with public authorities, reduce

reporting burdens, and enable secure regulatory compliance across borders. This will in turn increase

Europe’s competitiveness.

EU Digital Identity Wallets - Recommended policies, measures and actions

Member States should continue their strong commitments to the development of use cases to link

private and public service providers to the wallets and offer the user a large variety of use-cases

upon first issuance of the wallets at national level in 2026.

27

ii. eHealth and technologies for healthcare.

In 2024, the EU continued to advance toward its Digital Decade goal of universal access to electronic

health records (EHRs) by 2030. The composite score in the area rose to 82.7/100 (from 79.1/100 in

2024), with all Member States offering some form of EHR access. Estonia joined Belgium in reaching

full coverage, while countries like Czechia, Ireland, Romania, and Slovakia made strong progress.

Despite these gains, disparities persist: Austria, Cyprus, and the Netherlands recorded setbacks due

to reduced functionalities or service availability. Ensuring the online availability of health records will

now also be required under the European Health Data Space75, which entered into force in March

2025 as part of the EU’s efforts to foster the digital transformation of healthcare. The European Health

Data Space will increase citizens’ control over their personal electronic health data and enable data

reuse for research, innovation and policy purposes.

Innovation in medical technologies and life sciences is increasingly being powered by digital health

data. Of the 13 first-selected AI Factories, 11 will put health and/or life sciences among their focus

areas. The European Cancer Imaging, 1+ Million Genomes, and Virtual Human Twins initiatives are

making progress on setting up data infrastructures to foster personalised care and data-driven

research, backed by targeted DIGITAL76 funding and new procurement instruments. At the same time,

the number of healthcare providers contributing data continues to grow, though private sector

participation still lags. In their National Roadmaps, Member States reported investing EUR 7.8 billion

to support e-Health services (all coming from public budgets), with approximately 106 measures, most

of them focusing on accessibility and uptake. Continued investment, technical alignment, and cross-

border cooperation will be essential to fully achieve the European Health Data Space. Cybersecurity

remains a key concern. To strengthen resilience, incident response, and recovery capacities across

the sector, the Commission in January 2025 launched a European action plan on the cybersecurity of

hospitals and healthcare providers - a flagship initiative of the President von der Leyen’s ‘first 100

days’. Further recommendations to strengthen cybersecurity in the health sector, based on

consultations with stakeholders and Member States, will follow in Q4 2025.

eHealth - Recommended policies, measures and actions

Member States should:

- continue to implement the necessary measures to achieve full access for citizens to their

electronic health records.

75 Regulation (EU) 2025/327 of the European Parliament and of the Council of 11 February 2025 on the European Health Data Space and amending Directive 2011/24/EU and Regulation (EU) 2024/2847. 76 European Commission, Digital Europe Programme. Available at: https://digital-strategy.ec.europa.eu/en/activities/digital-programme

28

- cooperate to fully deploy the innovation potential of health data by: (i) maximising the use

of existing and future health data initiatives and infrastructure; (ii) investing in the research

and deployment of advanced technologies such as high-performance computing and

trustworthy AI applications in healthcare;(iii) strengthening cybersecurity measures, and

enhancing cooperation through EDICs in this area.

- Implement the actions foreseen in the Action Plan on cybersecurity of hospitals and

healthcare providers.

iii. Smart cities and the New European Bauhaus: digital for quality of life

To bring digital innovation closer to citizens and make cities more sustainable and climate-neutral,

the EU has mobilised a range of funding initiatives and multi-country projects, including the DIGITAL

programme and newly established EDICs. The LDT-CitiVERSE-EDIC, launched in 2024, will help cities

harness digital twins and shared infrastructure to address urban challenges—such as climate

neutrality, clean mobility, and smart energy systems. CitiVERSE aims to bring together 100 cities in

2025 under a common EU digital infrastructure, connected to the first SIMPL-based Data Space for

Smart Communities. Other projects are also underway to harness digital technologies in societal

projects such as the New European Bauhaus (NEB)77 for more sustainable, innovative and beautiful

living environment (DigiNEB)78 . The new LDT-CitiVERSE-EDIC79 will receive within the EU procured LDT

toolbox a complete set of digital tools and services to be used together with the EU building dataset

for AI-based impact assessment of NEB strategies.

To address the challenge of climate neutrality with a holistic approach, there are also possible

synergies with the actions taken under Horizon Europe80, within the Mission on Climate-Neutral and

Smart Cities.

Another initiative funded by the Digital Europe Programme, the European Data Space for Smart

Communities (DS4SSCC-DEP) is a pivotal deployment project focusing on creating a large-scale data

space controlled by public data holders, ensuring alignment with the Smart Middleware Platform and

broader data space ecosystems. It also aims to offer middleware service solutions facilitating data

sharing and management while refining the service it offers based on gained experience.

The Digital Europe Programme also co-finances the testing and experimentation facilities (TEF) for

smart cities and communities: CitCom.ai. CitCom.ai provides facilities to test advanced AI and robotics

solutions in real-world settings, targeting the sustainable development of cities and communities.

CitCom.ai focuses on three overarching themes: (i) Power which targets changing energy systems and

reductions in energy consumption; (ii) Move which targets more efficient and greener transportation

linked to logistics and mobility; and (iii) Connect which serves citizens through local infrastructures

and cross-sector services. CitCom.ai is organised around three super nodes – Nordic, Central and South

– supported by satellites and sub-nodes located across 11 EU countries: Denmark, Sweden, Finland,

the Netherlands, Belgium, Luxembourg, France, Germany, Spain, Poland and Italy.

The Commission currently manages or contributes to a broad set of initiatives with - and for - cities.

The flagship R&I initiative in this field is the Horizon Europe Mission on Climate-Neutral and Smart

77 European Commission, New European Bauhaus. Availabile at: https://new-european-bauhaus.europa.eu/index_en 78 DigiNEB. Available at: https://digineb.eu/ 79 European Commission, Citiverse. Available at: https://digital-strategy.ec.europa.eu/en/factpages/citiverse 80 Specifically, considering the call results of ‘HORIZON-MISS-2025-04-CIT-02: Innovative, AI-based solutions for urban planning and management’.

29

Cities (‘the Mission’), which aims to deliver 100 climate-neutral cities by 2030 and ensure that all EU

cities follow suit and become climate neutral by 205081.

c. Protecting people, including minors, online

i. Preserving safety, security and wellbeing in digital environment

Online platforms have become integral to everyday life in the EU. Services like Google Search,

YouTube, and Amazon are used by most Europeans82 and 77% of internet users shop online83. Citizens

are also increasingly aware of online risks: in 2023, nearly 70% took action to protect their personal

data84, and 72% reported awareness of the GDPR85. However, the sheer volume of user and platform

activity - illustrated by over 10 billion content-moderation decisions in the last six months86 - highlights

the urgent need for robust digital governance.

The Digital Services Act (DSA), Digital Markets Act (DMA) and, among others, the Terrorist Content

Online (TCO) Regulation are instruments that aim to ensure a fair, safe, secure and trustworthy digital

environment for citizens and businesses, accompanied by robust enforcement mechanisms.

The Digital Services Act (DSA) indeed represents a landmark EU response to this issue, setting clear

obligations for digital service providers and assigning greater responsibilities to Very Large Online

Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs). In 2024, the list of services

designated as VOLPs grew to 25, including Shein, Temu, and XNXX. To enforce the DSA, the European

Commission has sent over 100 Requests for Information (RFIs) to platform providers, targeting

disinformation, unsafe products, and opaque advertising practices. In addition, the Commission

opened 14 formal proceedings—for example against the providers of TikTok, Meta, Temu, X and

AliExpress—notably focused on illegal content, the protection of minors, and algorithmic

transparency. Markedly, one of the proceedings against the provider of TikTok has already been closed

after TikTok agreed to binding commitments.

In February 2025 the Commission introduced the e-Commerce Communication which sets out a series

of cross-cutting measures to ensure that goods sold online for example on digital marketplaces and

particularly by non-EU sellers comply with EU rules87. By November 2025 the Commission will

evaluate how the DSA interacts with other EU legislation, in particular legislation on personal data

and consumer protection.

ii. Protecting children

As set out in the 2024-2029 Political Guidelines88, the Commission considers the protection of

children’s and young people’s mental health - particularly online - as one of the greatest challenges of

81 European Court of Auditors, Special Report: Smart cities Tangible solutions, but fragmentation challenges their wider adoption, 2023. 82 Digital Services Act (DSA): Amazon EU Store Transparency Report. Available at: https://trustworthyshopping.aboutamazon.com/dsa- digital-services-act-amazon-eu-store-transparency-report; Google Transparency Report: Signed-out recipients, versus 459 million signed-in recipients. Available at: https://transparencyreport.google.com/report-downloads?hl=en; Google Transparency Report: Signed-out recipients, versus 356 million signed-in recipients. Available at: https://transparencyreport.google.com/report-downloads?hl=en; Google, Information about Monthly Active Recipients under the Digital Services Act, 2025. 83 Eurostat, [isoc_ec_ib20] Internet purchases by individuals (2020 onwards). 84 At least one of the following: blocked or limited cookies, checked website security where personal data is provided, limited access to social media profile or shared content, read privacy policy statements, refused use of personal data for advertising, restricted or refused access to geographical location. These are the activities used by Eurostat for calculating individuals’ safety skills. Indicator: Privacy and protection of personal data (2020 onwards), Eurostat: isoc_cisci_prv20 85 European Commission, Justice, rights and values, October 2024, Eurobarometer survey 86 See data of the DSA transparency database: https://transparency.dsa.ec.europa.eu/ 87 European Commission, E-commerce communication: A comprehensive EU toolbox for safe and sustainable e-commerce. Available at: https://digital-strategy.ec.europa.eu/en/library/e-commerce-communication-comprehensive-eu-toolbox-safe-and-sustainable-e- commerce 88 European Commission, Europe’s Choice, Political Guidelines for the next European Commission 2024−2029, 2024.

30

this decade. The Polish and Danish Presidencies of the EU Council have identified the impact of social

media on young people’s mental health and the protection of minors online as a priority. In 2024,

public concern over the protection of children online continued to rise, with increasing calls across the

EU and internationally to address the digital determinants of poor mental health among young

people89. These calls have largely focused on the regulation of digital technologies and their negative

impacts on mental well-being.

According to the 2025 Digital Decade Eurobarometer survey, an overwhelming majority of

respondents believe that urgent action by public authorities is needed to protect children online,

and in particular to: (i) limit the negative impact of social media on mental health (93% of respondents

agreed); (ii) restrict access to age-inappropriate content through robust age assurance mechanisms

(92% agreed); and (iii) tackle cyberbullying and online harassment (92% agreed)90. Increasing screen

time has coincided with higher levels of problematic social media use and rising reports of

cyberbullying. According to a study by the World Health Organization (WHO), one in six school-aged

children has experienced cyberbullying91. Additionally, 34% of surveyed adolescents reported

playing digital games daily, with 22% playing for at least four hours on a gaming day92. Previous

research93 has shown that adolescents with problematic social media use report lower levels of mental

and social well-being, as well as higher rates of substance use, compared to non-problematic users

and non-users. If this trend continues, it could have far-reaching consequences for adolescent

development and long-term health outcomes.

The risks children face online are increasingly severe. In 2024 the EU co-funded Safer Internet

Centres (SICs) handled over 54 000 calls, 14% of which related to cyberbullying and 24% to sexual

content, including grooming and sextortion94. In Poland, during the fourth quarter of 2024, every

second underage internet user was exposed to erotic content, spending an average of 10 to 14

minutes per day on such material95.

Excessive screen time, exposure to violent, pornographic or explicit content, and commercial

manipulation - often in environments designed for adults - have become frequent experiences for

minors, posing significant risks to their mental health. So far, age-gating tools that restrict access to

content based on age remain largely ineffective. Research suggests that intensive use of online social

networks is associated with loneliness and emotional distress among young people, a pattern not

generally observed with instant messaging tools96.

The EU has strengthened its legal framework and policy action to protect children online. At the core

of the EU toolbox on protection and empowerment of minors online are: the Digital Services Act, the

89 See e.g. Council Conclusions on the European and international policy agendas on children, youth and children’s rights, 18 May 2024, https://data.consilium.europa.eu/doc/document/ST-9769-2024-INIT/en/pdf and the follow-up to the WHO-UNICEF-Lancet Commission, https://www.who.int/initiatives/a-future-for-the-worlds-children. 90 Special Eurobarometer 566 on ‘the Digital Decade’ 2025: https://digital-strategy.ec.europa.eu/en/news-redirect/883227. 91 Health Behaviour in School-aged Children (HBSC) international report from the 2021/2022 survey presented in 2024, updated every four years, in collaboration with the WHO Regional Office for Europe. A focus on adolescent peer violence and bullying in Europe, central Asia and Canada. Health Behaviour in School-aged Children international report from the 2021/2022 survey. Volume 2. 92 Ibid, Volume 6. A focus on adolescent social media use and gaming in Europe, central Asia and Canada: Health Behaviour in School-aged Children international report from the 2021/2022 survey. 93 Boniel – Nissim M et al., International perspectives on social media use among adolescents: Implications for mental and social well-being and substance use, 2022. 94 Better Internet for Kids – Review of year 2024. Available at: https://better-internet-for-kids.europa.eu/en/about/insafe-inhope. 95 Children's Internet. Report on monitoring the presence of children and young people on the Internet. 2025 (in Polish). 96 Joint Research Centre, Cabeza Martínez, Begoña and d'Hombres, Beatrice and Kovacic, Matija, Social Media Use, Loneliness and Emotional Distress Among Young People in Europe (January 09, 2025). Ca' Foscari University of Venice, Department of Economics Research Paper Series No. 01/2025, Available at SSRN: https://ssrn.com/abstract=5089729. The paper uses survey sample from people aged 16-35.

31

Audiovisual Media Services Directive97; the General Data Protection Regulation (GDPR)98; the Better

Internet for Kids strategy (BIK+); and the EU-co-funded network of Safer Internet Centres in Member

States which reached over 35 million users in 2024. The EU AI Act is also relevant in this area, as it

bans AI systems that exploit children’s vulnerabilities and requires additional safeguards for high-risk

applications affecting minors. The protection of minors is one of the enforcement priorities of the

Commission under the DSA. In 2024 the Commission opened four formal DSA enforcement

proceedings related to minors—one each against Meta’s platforms, Facebook and Instagram, and two

involving the provider of TikTok, one of which led to the suspension of addictive features in TikTok Lite

and ultimately to the removal of that programme with a binding commitment not to re-launch it. In

May 2025 the Commission opened formal proceedings against Pornhub, Stripchat, XNXX, and XVideos

which also focus on the risks for the protection of minors, including those linked to the absence of

effective age verification tools.

To continue protecting children into the future, the EU is preparing guidelines under the DSA to help

online platforms ensure a high-level of privacy, safety and security for children using their services.

These guidelines are expected in 2025 and will also help national authorities responsible for the

enforcement to consistently apply rules for the providers of platforms below the threshold of 45

million monthly active recipients. In parallel, the Commission is developing a short-term, privacy-

preserving age-verification solution, before EU Digital Wallets are offered to EU citizens and residents

by the end of 2026. The Commission will also launch an enquiry into the impact of social media on

the mental health of minors and is preparing an action plan against cyberbullying. Moreover, the

upcoming evaluation of the Audiovisual Media Services Directive due by December 2026,

accompanied where appropriate with proposals for its review, will assess the impact of this Directive

and its added value when it comes to the provisions relating to the protection of minors against

harmful content. Concerning the GDPR, the European Data Protection Board continues to work on

guidelines about processing of children personal data expected to be finalised in 2026.

Protecting children - Recommended policies, measures and actions

Member States should:

- implement the harmonised EU age-verification solution in the national EUDI Wallets,

including systems for issuing the proof-of-age attestations, and accelerate the issuance of

electronic means of identification to minors;

- take action to ensure the protection of minors and their well-being online, by cooperating

on important issues such as age verification and cyberbullying, including through support

for the future action plan against cyberbullying.

d. Preserving information integrity

In 2024, disinformation, often driven by manipulative social media algorithms, continued to

undermine trust in institutions and democratic processes. The EU faces rising threats from

coordinated inauthentic behaviour (CIB) and foreign information manipulation and interference

(FIMI), with fake accounts, bots, and troll farms distorting public discourse and simulating grassroots

97 In particular the provisions on protecting minors against harmful content (Articles 6a and 28b) and the requirement to adopt appropriate measures to that end, including through age verification. 98 GDPR states that processing of children personal data merit special protection. For example, the GDPR provides for explicit requirement to use child-friendly language and provides for rules on age of consent for information society services.

32

sentiment - frequently as part of state-sponsored influence operations. Nearly 50% of EU citizens

report encountering false or doubtful content online, reaching over 70% in the Netherlands99.

In response, the Commission has taken strong action, in particular by endorsing the integration of the

Code of Practice on Disinformation into the framework of the DSA, as a Code of Conduct under

Article 45 of the DSA, entering into application by July 2025. The Commission has launched four formal

proceedings against the providers of major platforms Meta, TikTok and X, which focus on risk

assessment and mitigation in the area of information manipulation.

The Commission also continues to support the European Digital Media Observatory, including its 14

fully operational hubs covering the entire EU. A Creative Europe call in October 2024 funded cross-

border media literacy projects.

To address the challenges disinformation presents to elections, the Commission has used a wide

toolbox, including the recommendation on protecting the integrity and resilience of the electoral

process100, the European Cooperation Network on Elections and the joint election resilience

mechanism, made available to support Member States’ authorities in building their capacity to detect

and react appropriately to threats101. In the context of the DSA, targeted action has been taken

through expert missions, stakeholder roundtables and stress tests, with the involvement of the

Commission, Member States and Digital Services Coordinators (DSCs). In March/April 2024 the

Commission published guidelines on recommended measures to the providers of VLOPs and VLOSEs

to mitigate systemic risks online that may impact the integrity of elections102. A DSA Toolkit103,

published in February 2025, offers national regulators best practices in their work with the providers

of VLOPs and VLOSEs to mitigate electoral risks, including in relation to hate speech and manipulation.

In December 2024, the Commission opened formal proceedings against the providers of TikTok under

the DSA for suspected failure to mitigate risks to election integrity in Romania.

Mechanisms under the Code of Practice on Disinformation such as the Rapid Response System (RRS),

active during EU and national elections104, enabled real-time fact-checking and content flagging in

2024 and continue to do so in 2025. The European Digital Media Observatory (EDMO) provided daily

briefs and trend insights throughout the year.

In 2024, the EU has also introduced new EU common standards in the internal market. They will enable

citizens to easily recognise political advertising, understand who is behind it and know whether they

have been targeted105. Such rules address the growing complexity and cross-border nature of political

advertising in the internal market, its growth in the online space, the use of advanced targeting

techniques and the threat of information manipulation and interference.

99 Indicator Evaluating data, information and digital content (2021 onwards), Eurostat: isoc_sk_edic_i21, year 2023. 100 Commission Recommendation (EU) 2023/2829 of 12 December 2023 on inclusive and resilient electoral processes. It includes different recommendations on protecting the integrity and resilience of the electoral process. For example, it encourages Member States to take measures to protect the information environment around elections and ensure that voters receive correct information. It recommends building resilience and developing public awareness, media literacy and critical thinking to address information manipulation, interference and disinformation related to elections. It also calls on Member States to develop training to relevant authorities and to facilitate cooperation among relevant stakeholders to tackle the information manipulation risks. 101 In the context of this network, Member States discussed practical solutions to a range of threats including FIMI and disinformation. One of the operational tools is the joint election resilience mechanism, which supports exchanges among Member State experts, which several Member States used in the run-up to the elections. 102 European Commission, Commission publishes guidelines under the DSA for the mitigation of systemic risks online for elections. Available at: https://digital-strategy.ec.europa.eu/en/news/commission-publishes-guidelines-under-dsa-mitigation-systemic-risks-online- elections 103 European Commission, Commission presents new best-practice election toolkit on the Digital Services Act. Available at: https://digital- strategy.ec.europa.eu/en/news/commission-presents-new-best-practice-election-toolkit-digital-services-act 104 See the Commission’s Report on the 2024 elections to the European Parliament (publication pending at the time of writing). 105 Regulation (EU) 2024/900 on the transparency and targeting of political advertising.

33

Fostering the EU’s media ecosystem has been a priority. The role of free and independent media is

crucial to address the current disruptions in the information space, fostering a pluralistic public

debate. However, the news media sector in Europe is undergoing a profound transformation due to

market disruptions, uneven access to content, emerging threats to media pluralism, and new funding

challenges related to the evolving geopolitical landscape. The 2024 Media Pluralism Monitor106

reports a medium risk to fundamental protection of media (average score: 34% in the EU) and a high

risk to market plurality (67% in the EU), driven by ownership concentration and lack of transparency

in online content removal. To deal with challenges in the media market, the European Media Freedom

Act107 was adopted in 2024.

Looking ahead, the European Democracy Shield will, among other things, strengthen societal

resilience and preparedness, and foster citizen participation and engagement. It will support free,

pluralistic and independent media, and look at ways to reinforce our collective capacity to prevent,

detect, analyse and respond to foreign information manipulation and interference (FIMI) and

disinformation, including when they impact elections and voting behaviours, regulatory processes and

public decision-making processes.

Preserving information integrity - Recommended policies, measures and actions

Member States should:

- increase resilience against disinformation by investing in areas such as fact-checking, media

literacy and technological detection tools;

- promote further research on information manipulation, looking into the structural,

economic, psychological, and technological factors that contribute to its spread;

- develop and implement national strategies for countering foreign information manipulation

and interference, including improved detection, response capacity, and secure information

exchange channels;

- develop new strategies to ensure a pluralistic media sphere, including through financing

provisions for news media, in ways that respect media independence.

4. Harnessing digitalisation for the green transition

a. The digital-green nexus: unlocking sustainability, competitiveness and

sovereignty

Digitalisation and environmental sustainability are no longer parallel priorities – they are mutually

reinforcing transformations. If deployed effectively, digital solutions could cut 15 - 20% of global

greenhouse gas emissions by 2030, notably through improved efficiency in buildings, energy,

transport, and manufacturing sectors108.

This digital-green nexus also enhances Europe’s industrial competitiveness. Greener digital

infrastructure and smart technologies reduce operational costs and encourage adoption by

consumers. The integration of AI and the internet of things into energy and resource management

enables more efficient operations, particularly for SMEs and municipalities. This contributes to

106 Centre for Media Pluralism and Media Freedom, Technical Report, EUI, RSC, Research Project Report, 2024. Available at: Monitoring media pluralism in the digital era: application of the media pluralism monitor in the European member states and in candidate countries in 2023. 107 Regulation (EU) 2024/1083 establishing a common framework for media services in the internal market and amending Directive 2010/13/EU (European Media Freedom Act). 108 Joint Research Centre European Commission, 5 digital solutions for a greener Europe, 2023.

34

decarbonisation while strengthening Europe’s position in emerging green tech markets. Not only do

digital tools optimise supply chains, but they also enable circular and profitable business models (such

as Product as a Service).

Digitalisation for smart greening is critical to increase Europe’s strategic autonomy and resilience.

Digital tools such as smart metering allows better demand-side energy management and currently

encompasses approximately 60% of European households on average. Nonetheless, substantial

disparities persist between EU member states109. The launch of the code of conduct for energy-smart

appliances will enable interoperability and boost the participation of smart appliances in demand

response schemes. Climate observation satellites and predictive analytics contribute to early warning

systems and help manage climate-related risks such as floods, wildfires, and droughts. As demand

for low-carbon infrastructure and advanced computing grows, control over foundational technologies

- including semiconductors, secure data infrastructure, and energy-efficient data centres - —has

become a critical factor in reducing strategic dependencies.

AI is increasingly seen as a game changer for the green transition. When deployed responsibly, AI

enables significant emissions reductions by improving energy efficiency, streamlining industrial

processes, and supporting smarter resource management across sectors such as energy, transport,

and agriculture. The potential of AI is amplified when combined with digital twins, sensor networks,

and data-driven systems. The deployment of the energy data space will unlock consistent, high-quality

and interoperable energy data for the training of AI models for energy and the inception of innovative

energy services. The Smart Energy Expert Group was launched in October 2024 to support the

establishment and governance of this initiative, through its ‘Data for Energy’ sub-group. AI-enabled

decentralised energy systems, smart grid optimisation, and digital twins of the European electricity

grid are helping improve energy efficiency and reduce reliance on imported fossil fuels. For example,

AI-based grid management will be able to reduce electricity transmission losses while improving load

balancing in real time110. Nevertheless, AI’s own environmental footprint–particularly that of

Generative AI–must be addressed, especially the energy-intensive and water-intensive nature of

training AI models. With global electricity demand from generative AI projected to reach up to 134

TWh by 2027, comparable to the annual consumption of Sweden111, aligning AI development with

climate goals is essential.

b. Rising pressures: electricity and water demand in the digital transition

Despite the potential advantages of digitalisation for the green transition, the environmental footprint

of the digital economy is rising. In 2024 data centres in Europe consumed approximately 70 terawatt-

hours (TWh) of electricity. While this accounts for about 2% of total electricity consumption in

Europe, for some countries, such as Ireland, electricity consumption by data centres is significantly

higher, reaching 20% of total consumption. By 2030, electricity consumption by data centres in Europe

is expected to grow by over 45 TWh, reaching a total of approximately 115 TWh. This constitutes a

70% increase over 2024 levels112. While data centres are important consumers of energy, they also

offer an opportunity to contribute to system flexibility and demand response. Under the right

conditions, they have the potential to provide grid services through the use of on-site battery storage,

flexible cooling systems, load shifting, or by relocating computing workloads from one region to

another as a form of sustained curtailment.

109 European Union Agency for the Cooperation of Energy Regulators, Country Sheets : Monitoring data 2023, 2024. 110 International Energy Agency (2023), Digital Demand-Driven Electricity Networks Initiative, 2024. 111 McKinsey & Company, The Economic Potential of Generative AI: The Next Productivity Frontier, 2023. 112 IEA, AI and Energy,2025.

35

It is forecast that mobile networks alone are expected to consume up to 170% more energy by 2026,

driven by the expansion of 5G networks113. Generative AI, AI training and inference, high-performance

computing, and edge networks are further accentuating these trends.

In parallel, water use for cooling digital infrastructure is becoming a growing concern. The water

needed to produce semiconductors is significant. In addition, depending on the cooling method and

local climate, data centres can require substantial amounts of water, particularly when using

evaporative cooling systems114.

The rapid deployment of AI accelerators and dense compute clusters exacerbates this challenge.

Studies show that by 2027, global AI demand could consume between 4.2 and 6.6 billion cubic metres

of water a year115. Both the water and electricity consumption of data centres will be a key issue that

the Commission will address through the forthcoming follow-up to the Energy Efficiency Directive and

the Cloud & AI Development Act.

c. Recent EU actions supporting the green digital nexus

Since 2024, the European Commission has intensified its efforts to promote synergies between digital,

energy, climate and circular economy actions. For example, the work on the EU Code of Conduct for

sustainable telecommunications networks is advancing, with exchanges on a new draft occurring at

a stakeholder workshop in May 2025.

In January 2025, the Commission adopted a new delegated regulation for establishing an EU-wide

scheme to rate the sustainability of EU data centres, requiring operators of data centres above 500

kW to report key performance indicators to the European database by covering–among other things–

energy use, water consumption, heat reuse and the type of refrigerant used. This lays the groundwork

for more transparency on the sustainability performance of data centres that could be sought by

future policy decisions.

In addition, the Water Resilience Strategy, launched in March 2025, provides guidance on water-

efficient cooling technologies and supports municipalities hosting digital infrastructure through

funding instruments under Horizon Europe and LIFE. The forthcoming Digital Product Passport

framework will also apply to ICT equipment, detailing their environmentally relevant information. This

will ensure lifecycle emissions and repairability are factored into procurement decisions.

The European Green Digital Coalition is a grouping of companies that seeks to harness the emission-

reducing potential of digital solutions for all other sectors of the economy. With the support of the

Commission, the European Green Digital Coalition released in 2024 a methodology to assess whether

a deployed digital solution reduces more emissions than the solution’s own carbon footprint. The

Coalition will assess in 2025-2026 another 50 digital solutions in the sectors of energy, transport,

construction, smart cities, manufacturing, agriculture and healthcare. It will also work with financial

institutions to help sustainable finance to scale the deployment of such green digital solutions.

The twin green and digital transition measures at Member States level

In 2024, a wave of activity began operationalising the twin green and digital transition116 through

national strategies, regulations, and sectoral deployments. This marked a shift from high-level

ambitions to systemic policy implementation that jointly advances digital transformation and

113 GSMA, Energy Efficiency in Mobile Networks: A Roadmap to 2030, 2023. 114 Circular water solutions key to sustainable data centres | World Economic Forum. 115 Islam M.A. , Li P., Ren S., Yang J.,Making AI Less “Thirsty”: Uncovering and Addressing the Secret Water Footprint of AI Models, 2023. 116 European Commission, The twin green & digital transition, 2022.

36

environmental objectives. Measures such as Italy’s Transition 5.0 Plan, Luxembourg’s National

Energy Data Platform, and France’s Frugal AI standard illustrate how EU support has been translated

into localised, impactful action. The revised Digital Decade National Roadmaps include 67 measures

from 19 Member States contributing simultaneously to the Digital Decade’s green and digital

objectives. Of these 67 measures, 38 are specifically designed to simultaneously address those green

and digital objectives, with a total investment of EUR 214.2 million.

Best practice highlights

France is leading the Green IT Cluster of the Best Practice Accelerator, and it has put forward three

best practices on the twin transition field in 2024: (i) the General Policy Framework for the Eco-design

of Digital Services , which targets ICT professionals and sets out 78 criteria and best practices applying

eco-design principles in the development of services and the drafting of an Eco-design Declaration; (ii)

the development and availability of Product Category Rules (PCR) for environmental evaluation and

labelling to improve the environmental information provided to consumers, covering the entire

product life cycle; and (iii) the Alt IMPACT Communication Campaign to raise public awareness about

the environmental impact of digital technologies.

The Netherlands presented its Sustainable Digitalisation Action Plan published in July 2024. It outlines

44 concrete actions across three main pillars that work towards making the digital sector more

sustainable, while simultaneously leveraging digitalisation for sustainability by improving the

efficiency of production processes, optimising the use of existing resources, and enabling the circular

use of raw materials and resources.

Finland presented a set of measures to increase the knowledge base on the environmental handprint

and footprint of the ICT Sector. This set of best practice measures was in response to the lack of

reliable and comparable data identified as one of the challenges during the drawing up of its national

climate and environmental strategy for the ICT sector, which Finland published in 2021.

Luxembourg presented its Product Circularity Data Sheet (PCDS), a tool designed to provide detailed

information about the circular characteristics of products, such as their recyclability, their durability,

and their use of recycled materials. The PCDS is aligned with the general and cross-cutting

requirements of the Ecodesign for Sustainable Products Regulation.

Harnessing digitalisation for the green transition - Recommended policies, measures and actions

Member States should:

- support the development of harmonised environmental impact metrics for digital solutions

including AI-based solutions as well as metrics for digital infrastructures such as, edge

computing, data centres, and telecommunications networks;

- reinforce their cooperation with the AI Office, the Green Digital Coalition, and the European

Green Deal Data Space, as well as contributing to the upcoming EU Code of Conduct for

sustainable telecommunications networks;

- incorporate digital sustainability KPIs into their national digital and green transition plans.

37

5. Building coherence, efficiency and simplification

In 2024, the Commission made a strong commitment to an ambitious simplification agenda117,

presented in the Communication on a Simpler and faster Europe118. The Digital Decade is aligned with

this simplification approach and includes a joint commitment to ensure that digital policies, measures,

and programmes relevant for the EU’s digital transformation are considered in a coordinated and

coherent way so that they fully contribute to the Digital Decade objectives, while avoiding regulatory

overlaps and minimising administrative burdens.

a. Need for simplification, efficiency and coherence

i. Better and lighter digital legislation

In 2024 and through 2025, the Commission prioritised the streamlining of EU legislation to enhance

competitiveness, minimise the burden of compliance, reduce red tape and streamline regulation to

ensure consistency. More than half of European SMEs flag such regulatory and administrative

obstacles as their greatest challenge119. 86% of EU firms dedicate staff to compliance tasks, with the

cost of compliance averaging 1.8% of turnover—rising to 2.5% for SMEs120. This is a similar order of

magnitude to average energy costs, standing at 4% of annual turnover.

The Commission has set an overarching target to reduce reporting burdens by at least 25% for all

companies —and by at least 35% for SMEs – before the end of its current mandate, without

undermining the policy objectives of the reporting rules.

For the digital acquis, the Commission is planning a wide ‘stress test’ of the regulatory framework.

Over the coming years, this stress test will include an assessment of regulatory coherence and whether

the current rules are fit for purpose considering the rapid technological transformation and market

evolution. The stress test will also explore whether further reductions can be made to the reporting

and compliance burden, while pursuing the objectives of the regulations.

Firstly, in May 2025, the Commission came forward with the Single Market Simplification proposal.

The Fourth Omnibus package simplifies the record-keeping obligation in the GDPR, taking into account

the specific needs and challenges of small and medium-sized companies and organisations, while

ensuring that the rights of individuals are protected.

Looking forward, in the fourth quarter of 2025, the Commission will put forward a Digital Package,

including a Digital Omnibus proposal with a series of simplification measures for part of the digital

acquis, stress-tested over the year.

In addition, the European Commission plans to propose the Digital Networks Act. This forthcoming

legislation will transform Europe’s digital infrastructure to support European businesses and citizens

in an increasingly connected world. This effort is fully aligned with the broader priorities of the

Competitiveness Compass, where digital infrastructure is fundamental to Europe’s leadership in

innovation, resilience, and long-term economic growth. At the core of this initiative is simplification.

The Digital Networks Act will reduce regulatory burden, provide clarity, strengthen competition, all

while safeguarding consumer benefits. The Digital Networks Act will ensure that digital infrastructure

is built for the future.

117 European Commission, Simplification and implementation. Available at: https://commission.europa.eu/law/law-making- process/better-regulation/simplification-and-implementation_en. 118 European Commission, A simpler and faster Europe, 2024. 119 Draghi, M., The future of European competitiveness, Part A – A competitiveness strategy for Europe, pg.14 2024. 120 EIB Investment Report 2024–2025, European Investment Bank.

38

The transformative potential of digital tools for administrative simplification has been strongly

endorsed by recent high-level reports on competitiveness. The Commission is leading efforts to build

a dedicated infrastructure modelled on Common European Data Spaces to automate regulatory

compliance and data transmission.

The European Business Wallet will be a cornerstone of doing business simply and digitally in the EU,

providing a seamless environment for companies to interact with all public administrations is the

upcoming European Business Wallet. Building on the EUDI Framework, the European Business Wallets

will be horizontal enablers for Europe’s competitiveness. The European Business Wallets are intended

to streamline business-to-business and business-to-government interactions, enabling trusted digital

identities, secure data exchanges and legally recognised digital notifications. It will reduce

administrative burdens, lower compliance costs, and enhance cross-border transactions, benefiting

SMEs and large enterprises. By streamlining processes, it will also improve business efficiency and

foster competitiveness.

Alongside this, the Single Digital Gateway (SDG), and its cornerstone component -the Only-Once

Technical System (OOTS) -could automate the exchange of verified data between public authorities,

cutting administrative costs for SMEs by over 50%, according to a 2024 impact study121. By 2025, most

Member States are expected to be technically ready to securely exchange official documents across

borders, increasing the accessibility and interoperability of e-Government services for around 80 000

national authorities. Despite progress in this area, challenges remain - particularly in digitising

industrial permitting procedures essential for sectors like renewable energy and semiconductors.

Although EU legislation such as the SDG Regulation, the Net Zero Industry Act, and the Critical Raw

Materials Act provide a strong legal foundation for the digital and green transitions, disparities persist

as many Member States still lack the organisational and digital capabilities to fully implement and

benefit from these reforms.

Further integration of these systems is planned. The European Business Wallet, EU Digital Identity

Wallet, SDG and OOTS will together form a cohesive, interoperable digital infrastructure. This

ecosystem will enable seamless interactions for businesses and citizens and reduce duplication in

compliance processes. However, the slow progress made by national and local entities in

implementing OOTS and the SDG remains a challenge, and this progress requires targeted alignment

efforts and shared procedural standards.

EU company Law will reduce burden on companies leveraging digital solutions in synergy with the

European Business Wallet, and through the Business Registers Interconnection System (BRIS) that

enables the ‘once only’ principle with regard to company data. The ‘28th Regime’ proposal will further

support companies to set-up and grow in the EU, making it possible for innovative companies to

benefit from a single, harmonised set of EU-wide rules wherever they invest and operate in the single

market, as announced in the Competitiveness Compass. The digital euro initiative is also contributing

to simplification. By ensuring interoperability with the EU Digital Identity Wallet, the Commission

aims to provide users of the digital euro with a streamlined and secure means of verifying identity,

confirming payments, and facilitating offline transactions. This will reduce transaction costs, especially

for SMEs, and strengthen Europe’s digital sovereignty.

Another major milestone was the adoption of the VAT in the Digital Age legislative package on 11

March 2025. This enables automated VAT reporting through e-invoicing, simplifying data extraction

121 European Commission, EU SMEs and self-employed workers could save time and money when expanding abroad thanks to the once-

only technical system, 2024.

39

and supporting sustainability reporting. Exploratory work is underway to align this functionality with

the European Financial Reporting Advisory Group (EFRAG)’s sustainability standards, using e-invoices

to meet environmental reporting obligations efficiently.

ii. Simplification through improved governance

Ensuring the effectiveness of this comprehensive simplification agenda requires improved

governance. The Digital Decade Board (DDB) has emerged as the primary forum for coordination

between the Commission and Member States on digital policy implementation. With a broad

mandate, the DDB brings together national representatives to align digital measures, share best

practices, and assess emerging challenges in the regulatory landscape.

The DDB has discussed several avenues to reduce administrative burden: (i) simplification through

digital tools; (ii) the setting up of a Digital Single Rulebook;(iii) the setting up of a Single Digital

Compliance Platform or (iv) codifying compliance requirements into a single interface. There are also

some possible synergies regarding overlaps and fragmentation across the Commission’s expert

groups, which may exceed the administrative capacity of national authorities. As a first step, the

Commission is conducting an overview of all advisory bodies linked to digital legislation to support

internal coordination within Member States and improve strategic alignment. The potential

streamlining of these structures will in particular be considered as part of the 2026 review of the

Digital Decade Policy Programme (DDPP).

Coherence and simplification - Recommended policies, measures and actions

Member States should fully leverage the DDB’s role and expertise to help streamline the

implementation of digital acquis and support the development and deployment of solutions for

simplification and reduction of administrative burden.

b. Funding the Digital Decade

The priority given to the digital transition by the Commission is reflected in the EU budget’s

commitment. Nearly all EU programmes contribute to digital goals, with key focus areas including the

digitisation of public services, digital skills, business digitalisation, advanced digital infrastructure

(such as 5G, AI, quantum, and cloud technologies), and support for research and innovation. Health

and transport are two other major sectors targeted for digital transformation122.

The Joint Research Centre (JRC)123 study on five major programmes—RRF, CEF Digital, Horizon Europe,

DIGITAL, and Cohesion Policy—estimates that between 2020 and 2027, a total of EUR 207 billion in

public money will support digital objectives. Of this, EUR 177.5 billion directly contributes to achieving

the EU’s Digital Decade targets. The RRF alone accounts for over EUR 149.8 billion in public digital

investments, with EUR 135.7 billion directly aligned with the targets, making it the single most

significant contributor to digital investments in the EU124. It plays a leading role in promoting basic

digital skills, the training of ICT specialists, gigabit network coverage, digital public services,

122 The latest stocktaking exercise referred to EU spending from 2021 to 2023 shows that approximately EUR 205.5 billion—around 17.5% of the total EU budget—was dedicated to the digital transition. A significant portion of this funding was mobilized through the Recovery and Resilience Facility (RRF), which in the same period allocated 24% of its total budget to digital investments and reforms. Available at: https://commission.europa.eu/strategy-and-policy/eu-budget/performance-and-reporting/horizontal-priorities/digital-tracking_en 123 Joint Research Centre, Nepelski, D. and Torrecillas, J. Mapping EU level funding instruments 2021-2027 to Digital Decade targets – 2025 update, Publications Office of the European Union, Luxembourg, 2025, JRC141966. 124 Including measures in the Repower EU chapters contributing to the digital transition. Last update on 10 March 2025.

40

semiconductors, and eHealth, contributing over 70–90% of the relevant funding in each of these

areas.

Figure 1: Relevant budget by funding instrument and Digital Decade target, in billion EUR (on the left)

and as % (on the right)

Source: JRC Calculations

In addition to public funding, mobilising private investments plays a crucial role. The EU is

increasingly using its budget to support private digital investment through tools such as InvestEU,

Joint Undertakings (JUs), and Public-Private Partnerships (PPPs). As of March 2025, InvestEU has

mobilised EUR 15.88 billion in digital-related investments. However, financial instruments are not yet

fully taken advantaged of in all programmes125 and often lack a strong policy steer or the scale needed

to address systemic investment gaps. Blending instruments and guarantees (e.g. InvestEU) show

promising results in this area. Depending on the level of technology readiness, leveraging factors

from financial instruments (i.e. the amount of private money that is invested alongside every euro of

public money) are currently around 3 for early-stage deep-tech companies (European Innovation

Council Fund equity) and around 5.62 from the InvestEU guarantee126. Overall, the EU faces a

substantial and urgent need to increase investment in digital technologies, infrastructure, and

innovation ecosystems. Bridging the investment gap, estimated in the hundreds of billions annually,

requires not only more funding, but smarter, better-targeted financial instruments, deeper capital

markets, and stronger coordination across EU and national programmes. Strategic public support will

remain essential in high-risk areas such as AI, cybersecurity, and deep tech, while effective leveraging

of private investment will be key to achieving scale and impact. As Europe prepares for its next

Multiannual Financial Framework (MFF) and advances its Digital Decade objectives, aligning funding

with strategic priorities and maximising impact through higher coordination, across programmes and

across the EU, will be critical to securing Europe’s digital sovereignty and long-term competitiveness.

125 As an example of needed flexibility, the EIC blended finance allows successful companies to decouple the timing of the grant and equity finance, without the need to go through a new application process when the time is ripe (e.g., when co-investors have been found). See also Mundell, The ecosystem: European Innovation Council uncouples grant and equity funding for startups, 2024. Available at: https://commission.europa.eu/strategy-and-policy/eu-budget/performance-and-reporting/horizontal-priorities/digital-tracking_en. 126 From the Interim evaluation of the InvestEU Programme (1 October 2024).

41

Funding the Digital Decade - Recommended policies, measures and actions

Member States should:

- prioritise strategic digital investment in their national budgets, aligned with Digital Decade

objectives, EU Digital Principles, and sovereignty imperatives, including taking action to

mobilise private investment;

- pursue reforms, including in public procurement, to facilitate the emergence and scaling of

sovereign digital technologies and infrastructure;

- collaborate actively in the development of large-scale digital projects with transnational

relevance, potentially supported by new common financing mechanisms or a dedicated

Digital Sovereignty Fund.

c. Cooperation with cities and regions

In the context of the Digital Decade, the European Commission is strengthening its cooperation with

cities and regions, recognising that subnational governments play a pivotal role in implementing and

disseminating digital policies that affect businesses, public services, and citizens on the ground.

With over 90 000 local governments across the EU and EFTA, greater coordination will be critical for

digital transformation to scale, to avoid duplication, improve interoperability, and share knowledge

and digital infrastructure. Although innovation clusters and large cities are accelerating their digital

transition, many smaller municipalities and rural areas are falling behind. To accelerate the

dissemination of digital technologies across the EU and bridge the divide between innovation hot

spots (typically in large cities) and the smaller cities that often lag behind, cities must be seen not just

as implementers of policy made elsewhere, but as strategic partners building on their proximity to

citizens and SMEs.

In this context, the Digital Decade Policy Programme (DDPP) offers a valuable opportunity and

framework for cities to align digitalisation with wider priorities such as climate action, mobility,

housing, and social inclusion. The DDPP also contributes as a strategic framework to the upcoming

Commission policy agenda for cities, initiated at the start of the new mandate.

Aligning digitalisation with wider priorities will require accurate and timely data aligned with the

Digital Decade targets and objectives. In 2024, the EU’s LORDIMAS monitoring tool allowed self-

assessments from 99 regional, metropolitan, and local administrations, offering insights on EU

digitalisation at subnational level. As of March 2025, 184 administrations had joined LORDIMAS, with

continued outreach to expand participation. This effort complements other initiatives, such as the

LDT-CitiVERSE (see above), Living-in.EU and Local Observatories that are developed by cities to track

digital progress and better target investment, especially in areas like urban resilience, and bridging

the digital divide.

Cooperation with cities also includes the set-up of digital ecosystems that integrate skills

development, connectivity infrastructure, and support for enterprises, especially SMEs. European

Digital Innovation Hubs (EDIHs) and AI Testing and Experimentation Facilities (TEFs), such as

CitCom.ai, offer cities and local actors the tools to test and deploy emerging technologies in real-world

conditions. CitCom.ai, launched in January 2025 with EUR 40 million in EU co-funding, is already

trialling AI applications in smart mobility, energy, and urban planning across 11 EU countries. The

Commission also continues to support cities’ connectivity through targeted investment in high-speed

42

broadband, 5G, and fibre infrastructure. Over 7 200 municipalities have benefited from WiFi4EU, an

EU-funded programme to deliver free wifi to towns and villages across Europe, improving access to

connectivity in remote areas.

Cities are also key actors in upholding the European Declaration on Digital Rights and Principles. Local

initiatives such as the Brussels Digital Rights Charter and Leipzig’s Hardware for Future project reflect

the values of equity, transparency, and citizen empowerment. The Cities Coalition for Digital Rights,

supported by the Commission, helps scale and replicate such efforts across Europe.

Best Practice: Portugal’s Smart Territories National Strategy (ENTI)

Portugal’s ENTI, launched in August 2024, offers a compelling model for digital development. Funded

with EUR 60 million from the Recovery and Resilience Facility, it integrates digital twins, real-time

data platforms, and urban dashboards to improve regional development, public service delivery, and

environmental monitoring. Rooted in EU digital rights and sustainability principles, it sets a benchmark

for data-driven, inclusive, and green territorial governance.

Cooperation with cities and regions - Recommended policies, measures and actions

Member States should:

- encourage cities to participate in multi-country projects such as the LDT-CitiVERSE-EDIC and

support cross-border reuse of digital public services;

- anchor local digital strategies in the European Declaration on Digital Rights and Principles

(DRP);

- invite cities to adopt their own local Digital Rights and Principles Charters;

- invest in local digital capacity and data-driven governance: foster the development of local

observatories (e.g. to monitor the digital divide) and encourage participation in tools to

improve data availability and inform targeted policymaking.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 20

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Malta

SHORT COUNTRY REPORTS 2025

1

Malta

Executive summary Malta performs very well on the uptake of AI and digitalisation of businesses, while there is room

to further expand the pool of ICT specialists. The country is a top performer in the digitalisation of

public services. Malta shows a moderate level of ambition in its contribution to the Digital Decade

having set 12 national targets, 58% of which aligned with the EU 2030 targets. The country is

following its trajectories moderately well with 50% of them being on track (considering 2024

trajectories defined for 4 KPIs out of 8 analysed). Malta addressed 38% of the 8 recommendations

issued by the Commission in 2024 by making some changes through new measures.

Significant progress has been achieved over the last year, particularly in the share of enterprises

adopting AI, which reached 17.3%, and in expanding connectivity infrastructure—most notably

through the ongoing roll-out of fibre-to-the-premises (FTTP) networks. Malta has reached the Digital

Decade targets for Very High Capacity Networks (VHCN) in 2019 and basic 5G coverage in 2022. FTTP

deployment is still underway but is progressing rapidly towards full national coverage. Challenges

remain in improving basic digital skills across the population and addressing the shortage of ICT

specialists.

Malta has increasingly oriented its digital policies toward enhancing digital sovereignty, to better

control and safeguard its digital infrastructure, data, and technologies, through a multi-dimensional

approach. Malta is advancing digital sovereignty by strengthening national cybersecurity through

initiatives like CYBER+ALT, expanding threat detection, and building secure infrastructure, while

promoting local innovation via dedicated start-up funding and digital policy frameworks.

Digital Decade KPI (1)

Malta EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025

Annual progress

MT EU

Fixed Very High Capacity Network (VHCN) coverage 100.0% 100.0% 0.0% - 82.5% 4.9% 100.0% 100%

Fibre to the Premises (FTTP) coverage 69.6% 86.2% 23.9% - 69.2% 8.4% 100.0% -

Overall 5G coverage 100.0% 100.0% 0.0% 100.0% 94.3% 5.9% 100.0% 100%

Edge Nodes (estimate) 17 32 88.2% - 2257 90.5% - 10000

SMEs with at least a basic level of digital intensity (2)

- 81.3% 2.2% - 72.9% 2.8% 85.0% 90%

Cloud 58.2% - - - - - 80.0% 75%

Artificial Intelligence 13.2% 17.3% 31.4% 18.8% 13.5% 67.2% 27.2% 75%

Data analytics 35.6% - - - - - 51.1% 75%

AI or Cloud or Data analytics 68.3% - - - - - - 75%

Unicorns 4 4 0.0% - 286 4.4% - 500

At least basic digital skills 63.0% - - - - - 75.0% 80%

ICT specialists 4.7% 5.2% 10.6% 5.5% 5.0% 4.2% 8.0% ~10%

eID scheme notification Yes

Digital public services for citizens 100.0 99.7 -0.3% 100.0 82.3 3.6% 100.0 100

Digital public services for businesses 100.0 100.0 0.0% - 86.2 0.9% 100.0 100

Access to e-Health records 88.0 93.7 6.5% - 82.7 4.5% 100.0 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports the version 4 of the Digital Intensity Index, that is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory that is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024)

2

Malta

According to the special Eurobarometer on ‘the Digital Decade’ 2025, 80% of Maltese citizens

consider that the digitalisation of daily public and private services is making their lives easier.

Concerning the action of the public authorities, 90% consider it important to counter and mitigate the

issue of fake news and disinformation online, and regarding competitiveness, 87% consider it

important to ensure that European companies can grow and become “European Champions” able to

compete globally.

A competitive, sovereign, and resilient EU based on technological leadership

Malta has a strong position when it comes to digital infrastructure, outperforming the EU average

and reaching full VHCN and basic 5G coverage. The roll-out of fibre networks is continuing and

progressing at a fast pace. Regarding 5G in the 3.4–3.8 GHz band, Malta still lags behind the EU but it

is expanding rapidly.

Most of Maltese enterprises show at least a basic level of digital intensity and uptake of AI is above

the EU average, although challenges persist particularly among smaller enterprises. Malta is nurturing

a dynamic and expanding start-up ecosystem through concrete support measures such as the Start-Up

Finance scheme, the Start-Up Residence Programme, and the creation of a €10 million Venture Capital

Fund. The country is also investing in digital skills and innovation infrastructure, including a national

roadmap that promotes emerging technologies and supports scale-ups. Malta is actively strengthening

its cybersecurity capabilities and digital resilience, with the goal of reducing dependency on external

technologies and enhancing control over its digital ecosystem, although challenges remain in adopting

key internet standards like IPv6 and DNSSEC.

Protecting and empowering EU people and society

Most of the people in Malta have at least basic digital skills and the country made some progress on

the share of ICT specialists in employment, but there is room to improve gender balance. In 2024,

the share of ICT specialists in employment grew to 5.2%. While interest in STEM and ICT careers is

growing, skill shortages remain a concern. The majority of the Maltese population (63%) has at least

basic digital skills, and the country prioritises inclusivity in the implementation of the National eSkills

Strategy 2022-2025.

Digital public services are well-developed and widely accessible, reflecting Malta’s focus on user-

centric, simplified administration. National strategies promote sovereign digital solutions, aiming to

ensure a secure and inclusive digital transformation for all citizens.

Leveraging digital transformation for a smart greening

Malta is committed to achieving carbon neutrality by 2050, with a focus on sustainability, resilience,

and innovation across all sectors. Digital technologies are recognised as a key enabler in this transition,

helping businesses adopt sustainable practices and boosting overall competitiveness. The government

is fostering collaborations with the private sector to drive forward sustainability goals and integrate

digital solutions in the green transition.

National Digital Decade strategic roadmap

Malta did not submit an updated national Digital Decade roadmap in 2025; therefore, the measures

and targets for 2030 remain unchanged from those outlined in the initial 2023 roadmap. In 2024, Malta

continued the implementation of existing measures but did not take any new measure. In total three

3

Malta

targets (i.e., VHCN, 5G and Digital Public Service for Citizen) have already been reached. All the other

targets align with the EU level goals for 2030, except for three national targets (basic digital skills,

number of ICT specialist and SMEs with at least a basic level of digital intensity) that fall slightly below

the EU targets. Trajectories for edge nodes, e-Health and unicorns are missing. Although the roadmap

covers nearly all objectives of the Digital Decade, some aspects may require more effort. Furthermore,

the roadmap is composed of 66 measures with a total budget of EUR 285 million (equivalent to 1.27%

of GDP) covering most of the targets. It still covers all objectives of the Digital Decade such as a human-

centred digital space, resilience and security, sovereignty, green, and protection of the society. These

achievements are the result of targeted public policies under the Malta Diġitali 2022–2027 strategy,

with a strong focus on enhancing public digital services and connectivity.

Funding & projects for digital

Malta allocates 26% of its total recovery and resilience plan to digital (EUR 68 million)1. In addition,

under cohesion policy, EUR 129 million, representing 17% of the country’s total cohesion policy

funding, is dedicated to advancing Malta’s digital transformation2. Malta is directly participating in the

IPCEI on Microelectronics and Communication Technologies (IPCEI-ME/CT). Malta is a participating

state of the EuroHPC Joint Undertaking (JU) and of the Chips JU.

Malta has not yet presented any project in the framework of Digital Decade’s Best Practice

Accelerator3.

Digital Rights and Principles

According to a support study, Malta has been one of the most active Member States in implementing

the European Declaration on Digital Rights and Principles, with over 100 initiatives overall and 35 new

initiatives launched in 2024. Malta is most active in the area of solidarity and inclusion and digital

education, training and skills. Less activity has been identified with regards to connectivity and

Sustainability. Measures in the area of solidarity and inclusion appear to have most impact on the

ground, in contrast to those addressing freedom of choice.

Recommendations

- ICT specialists: Promote ICT and STEM career opportunities and related education

programmes, especially among women.

- Basic digital skills: Prioritise reskilling and upskilling initiatives, leveraging public-private

partnerships and EU funding, and promote digital literacy particularly among those with

lower educational backgrounds.

- Cybersecurity: Implement targeted initiatives to strengthen internet security and enhance

DNSSEC adoption, and support the development and deployment of cybersecurity

capabilities.

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital Skills, Green IT, and the Uptake of Digital Technologies.

4

Malta

- AI: Continue the efforts to strengthen the uptake of AI, especially among SMEs, and in

connection with the deployment of other technologies, such as cloud and edge nodes.

- Connectivity infrastructure: Continue efforts to deploy fibre networks and 5G pioneer bands

and promote uptake.

- Digitalisation of SMEs: Enhance efforts to close the digitalisation gap between SMEs and

large enterprises, in order to maximise the economic potential of SMEs.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 21

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

The Netherlands

SHORT COUNTRY REPORTS 2025

1

The Netherlands

Executive summary The Netherlands has long been a leader in digital innovation owing to support from a strong research

base. However, it faces challenges from ICT labour shortages and declining public investments in

innovation and digital education. The country is very committed to safeguarding users online and

focuses on countering disinformation and protecting children.

The Netherlands shows a high level of ambition in its contribution to the Digital Decade, with 10

national targets, 90% of which are aligned with the EU 2030 targets. The country is following its

trajectories well, with 83% of them being on track (based on the 2024 trajectories established for 6

KPIs out of 8 analysed). The Netherlands addressed 40% of the 10 recommendations issued by the

Commission in 2024, either by implementing significant policy changes (20%) or making some changes

(20%) through new measures.

The Dutch semiconductor industry remains a cornerstone of its digital landscape, with growing

momentum in quantum technologies. However, the discontinuation of key funding sources like the

National Growth Fund have created financial uncertainty. ICT talent shortages also persist, worsened

by recent budget cuts in higher education. In 2024, the Netherlands expanded its 2022 strategy against

online disinformation and improved legislation to protect children online. The upcoming Netherlands

Digitalisation Strategy will take a more centralised approach, focusing on enhanced digital

government services at local, regional and national level, Artificial Intelligence (AI) adoption, civil

servant digital skills and digital sovereignty and security.

Digital Decade KPI (1)

The Netherlands EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025 Annual

progress NL EU

Fixed Very High Capacity Network (VHCN) coverage 98.3% 98.4% 0.1% 97.8% 82.5% 4.9% 100.0% 100%

Fibre-to –the-Premises (FTTP) coverage 77.7% 85.3% 9.9% - 69.2% 8.4% - -

Overall 5G coverage 100.0% 100.0% 0.0% 100.0% 94.3% 5.9% 100.0% 100%

Edge Nodes (estimate) 27 59 118.5% - 2 257 90.5% - 10000

SMEs with at least a basic level of digital intensity (2) - 80.8% 0.5% - 72.9% 2.8% 95.0% 90%

Cloud 60.4% 68.5% 13.5% - - - 85.3% 75%

Artificial Intelligence 14.1% 23.1% 63.5% 23.0% 13.5% 67.2% 85.1% 75%

Data analytics 50.8% - - - - - 75.0% 75%

AI or Cloud or Data analytics 74.6% - - - - - - 75%

Unicorns 30 32 6.7% - 286 4.4% - 500

At least basic digital skills 82.7% - - - - - 100.0% 80%

ICT specialists 6.9% 7.0% 1.4% 7.7% 5.0% 4.2% 9.2% ~10%

eID scheme notification Yes

Digital public services for citizens 85.9 88.5 3.1% 85.9 82.3 3.6% 100.0 100

Digital public services for businesses 86.7 88.8 2.4% 86.7 86.2 0.9% 100.0 100

Access to e-health records 72.5 65.2 -10.1% - 82.7 4.5% - 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports the version 4 of the Digital Intensity Index, that is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory that is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024)

2

The Netherlands

According to the special Eurobarometer on ‘the Digital Decade 2025’, 84% of the Dutch public

consider that the digitalisation of daily public and private services is making their lives easier.

Moreover, 90% consider it important that public authorities counter and mitigate the issue of fake

news and disinformation online. Regarding competitiveness, 83% deem it significant that European

companies can grow and become ‘European Champions’ able to compete globally.

A competitive, sovereign, and resilient EU based on technological

leadership

The Netherlands’ connectivity infrastructure is in good shape, with widespread broadband coverage

and excellent 5G services. The National Technology Strategy serves as the guiding policy for the

country’s digital innovation efforts, outlining key priorities such as semiconductors, AI, quantum

technology and cybersecurity. In its approach to semiconductors and quantum technologies, the

country aims to strike a balance between promoting technological leadership and protecting its critical

supply chains. On the digitalisation of businesses, while most Dutch businesses have achieved a basic

level of digitalisation, smaller enterprises often struggle to keep pace with the adoption of key digital

technologies, particularly AI. This challenge may be exacerbated by the fragmented nature of AI

innovation in the country, which is largely driven by regional partnerships. As a result, funding

opportunities and the overall national strategy can appear disjointed and unevenly accessible to these

smaller businesses. Finally, to address digital threats and promote digital initiatives, the Dutch

Cybersecurity Strategy remains the primary initiative in the Netherlands. Encouragingly, progress was

made in 2024 towards centralising government efforts and strengthening public-private collaboration

in this area.

Protecting and empowering EU people and society

The Netherlands has a strong digital skills profile with very good scores across regions and genders,

although some differences remain across age groups and education levels. Recent budget cuts in

higher education, combined with existing ICT labour shortages, could in the future challenge the digital

labour market. The roadmap has therefore been adjusted to support ICT teaching and regional plans

to increase the ICT workforce. The gender imbalance in ICT specialists in employment and the decline

in women employed in this field are also significant. The country has good digital public services and

is working on digital accessibility to ensure everyone can participate in the digital transition. It is also

continuing its commitment to countering disinformation and safeguarding children’s rights online.

Leveraging digital transformation for a smart greening

The Netherlands is stepping up its commitment to sustainable digitalisation with the launch of the

Sustainable Digitalisation Action Plan. This plan, which features in the ‘Green & Digital’ cluster of the

Digital Decade’s Best Practice Accelerator, outlines measures to leverage digital tools to reduce energy

consumption, monitor and mitigate the environmental impact of the digital sector and strengthen

public-private collaboration in information sharing.

National digital decade strategic roadmap

The Netherlands submitted a fully revised national Digital Decade roadmap on 31 January 2025. It

contains around 15 new measures and four revised targets. In the revised roadmap, the Netherlands

addressed a substantial number of roadmap recommendations issued in 2024. The country raised the

ambition of its national targets for VHCN, the digitalisation of SMEs and the uptake of data analytics,

3

The Netherlands

aligning them with the EU targets for 2030. The Dutch national target for ICT specialists remains slightly

below that of the EU (at 9.2% of the total employed population working as ICT specialists instead of

10%). There is no target for access to e-health records, as it would be difficult to draw up, given the

decentralised healthcare system. The revised roadmap continues to prioritise digital public services

and shows an increased focus on ICT specialists. It contains 59 measures and has a budget of EUR 5.25

billion, of which EUR 5.22 billion comes from public budgets (equivalent to 0.46% of GDP). It still

covers a diverse range of Digital Decade objectives, with strengthened commitments to the digital and

green transition, promoting a human-centred digital space and protecting society online. The roadmap

also includes more details on the consultation with stakeholders with respect to the original roadmap.

Funding & projects for digital

The Netherlands allocates 26% of its total Recovery and Resilience Plan to digital (EUR 1.2 billion)1. In

addition, under cohesion policy, EUR 170 million, representing 11% of the country’s total cohesion

policy funding, is dedicated to advancing the country’s digital transformation2.

The Netherlands is a member of the ‘Alliance for Language Technologies’ European Digital

Infrastructure Consortium (EDIC) and of the ‘Local Digital Twins towards the CitiVERSE’ EDIC. The

country participates directly in the important project of common European interest (IPCEI) on

Microelectronics and Communication Technologies and in the IPCEI on Next Generation Cloud

Infrastructure and Services. It is also a participating state of the European High-Performance

Computing Joint Undertaking (JU) and of the Chips JU.

The Netherlands has contributed to the Digital Decade Best Practice Accelerator3 by sharing two best

practices in the ‘Business Uptake’ cluster (with the National technology Strategy) and the ‘Green and

Digital’ cluster (with the Sustainable Digitalisation Action Plan).

Digital rights and principles

According to a support study, the Netherlands has been relatively active in implementing the European

Declaration on Digital Rights and Principles, with 60 initiatives overall and three new initiatives

launched in 2024. The Netherlands is mostly active in ensuring people remain at the centre of the

digital transformation, while less activity was identified with regards to ensuring a fair digital

environment. Measures related to digital solidarity and inclusion appear to have most impact on the

ground, in contrast to those addressing digital safety, security and empowerment.

Recommendations

- Quantum/semiconductors: find alternative sources of funding (both public and private) to

capitalise on the Netherlands’ competitive advantage in the areas of semiconductors and

quantum technologies, while maintaining a good business environment for long-term digital

innovation.

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital Skills, Green IT, and the Uptake of Digital Technologies.

4

The Netherlands

- ICT specialists: attract a more diverse pool of ICT talent by taking advantage of untapped potential

workers (i.e. people with a migrant background and those working in part-time employment).

Follow up on recent plans to reduce labour market shortages, paying particular attention to

attracting more ICT talent, improving labour market matching and providing suitable funding for

higher education. Respond to worries regarding recent budget cuts in higher education.

- Artificial Intelligence: strategically allocate a combination of public and private resources to

support SMEs’ take-up of key digital technologies, in particular AI. Improve collaboration between

scattered regional initiatives and set out a clear vision and strategic plan for AI to fully harness its

potential.

- Basic digital skills: complement the ongoing efforts at local and regional level to ensure digital

inclusion and good levels of digital skills by setting up national curriculum plans and funding. This

could include integrating technology literacy or similar courses in the national curriculum.

- Green transition: continue efforts to contribute to the green transition, also by translating the

Sustainable Action Plan into an actionable programme and creating more synergies among

measures and policies within and beyond the government.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 22

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

SHORT COUNTRY REPORTS 2025

Poland

1

Poland

Executive summary Poland has well-developed fixed connectivity infrastructure but continues to be affected by a low

level of digital skills among its population and limited adoption of advanced technologies by

companies. The country sees cybersecurity, advancing breakthrough technologies such as quantum

computing and artificial intelligence and development of capacity in semiconductors manufacturing

as important areas for development.

Poland shows a moderate level of ambition in its contribution to the Digital Decade having set 14

national targets, 71% of which are aligned with the EU 2030 targets. The country is following its

trajectories moderately well with 63% of them being on track (considering 2024 trajectories defined

for 8 KPIs out of 8 analysed). Poland addressed 55% of the 11 recommendations issued by the

Commission in 2024 by making some changes through new measures.

Digital Decade KPI (1)

Poland EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025 Annual

progress PL EU

Fixed Very High Capacity Network (VHCN) coverage 81.1% 83.8% 3.4% 84.1% 82.5% 4.9% 100.0% 100%

Fibre to the Premises (FTTP) coverage 75.4% 77.8% 3.1% 84.1% 69.2% 8.4% 100.0% -

Overall 5G coverage 71.9% 89.3% 24.1% 98.3% 94.3% 5.9% 100.0% 100%

Edge Nodes (estimate) 42 82 95.2% 11 2257 90.5% 370 10000

SMEs with at least a basic level of digital intensity (2) - 69.0% 6.4% - 72.9% 2.8% 90.0% 90%

Cloud 46.5% - - - - - 75.0% 75%

Artificial Intelligence 3.7% 5.9% 60.8% 4.3% 13.5% 67.2% 10.0% 75%

Data analytics 19.3% - - - - - 35.0% 75%

AI or Cloud or Data analytics 51.8% - - - - - - 75%

Unicorns 10 11 10.0% 13 286 4.4% 20 500

At least basic digital skills 44.3% - - - - - 80.0% 80%

ICT specialists 4.3% 4.5% 4.7% 4.3% 5.0% 4.2% 6.0% ~10%

eID scheme notification Yes

Digital public services for citizens 63.7 70.7 10.9% 81.5 82.3 3.6% 100.0 100

Digital public services for businesses 72.9 85.0 16.6% 87.4 86.2 0.9% 100.0 100

Access to e-Health records 90.0 91.8 2.0% 88.0 82.7 4.5% 100.0 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports Version 4 of the Digital Intensity Index, which is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory, which is based on Version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024)

According to the special Eurobarometer on ‘the Digital Decade’ 2025, 78% of Polish citizens consider

that the digitalisation of daily public and private services is making their lives easier. Concerning the

action of the public authorities, 84% consider it important to counter and mitigate the issue of fake

news and disinformation online. And regarding competitiveness, 84% consider it important to ensure

that European companies can grow and become ‘European Champions’ able to compete globally.

2

Poland

A competitive, sovereign, and resilient EU based on technological leadership

The country’s fixed connectivity infrastructure is well-developed, but 5G deployment has been delayed

due to the late allocation of pioneer bands: 3.4-3.8 GHz was allocated in December 2023 and the

auction for 700 MHz was completed in March 2025. Poland has come significantly closer to the EU

average in terms of the digital intensity of enterprises, but it still scores below the EU average in this

respect as well as in the uptake of more advanced technologies by companies. However, it is making

progress in areas like quantum computing - first quantum computer should be installed in 2025 – and

AI, where the Polish large language model (PLLuM) became available in February 2025 and the country

is a part of consortium to host one of the AI Factories. Finally, cybersecurity is one of the key priorities

for the Polish administration, which deploys measures to enhance this at different levels of

government and to improve the relevant skills of citizens. However, the NIS2 Directive has yet to be

transposed into the Polish legal system.

Protecting and empowering EU people and society

Regarding at least basic digital skills, the distance to the national 2030 target remains significant and

the low level of digital skills among older and less educated people persist. The lack of ICT specialists

is one of the barriers to the digitalisation of enterprises in general, as well as to the uptake of more

advanced technologies, and for ensuring protection against cyberattacks. Poland’s goal of ensuring

that ICT specialists represent 6% of the workforce by 2030, is lower than the EU target. On the other

hand, Poland has made progress in digitalising public services, and has seen growth in the use of eID

and in access to medical records online. However, the country still needs to address issues such as

disinformation, improve coordination between state actors in this area, and enhance people’s critical

skills to deal with online threats.

Leveraging digital transformation for a smart greening

Polish authorities recognise the link between the digital and green transformations, with the draft

State Digitalisation Strategy aiming to promote an environmentally friendly ICT sector and digital

ecology. However, the country’s digital sector energy consumption is expected to grow rapidly, driven

by data centre needs. Measures to ensure the availability and reuse of data on energy sector activities

are yet in planning stage. Moreover, recycling of ICT equipment is low despite Poles prioritising energy

efficiency when buying ICT devices. The country has, however, implemented measures to promote the

use of digital technologies to better protect the environment, including some Smart Cities solutions.

The draft State Digitalisation Strategy includes actions aimed at raising citizens’ awareness of the

environmental impact of ICT and promoting basic knowledge of digital sustainability.

National Digital Decade strategic roadmap

Poland formally adopted its national Digital Decade roadmap on 22 October 2024. As a result, the

previous country report, which was published in July 2024, relied on the draft roadmap, which was

shared with the Commission on 30 January 2024. The differences between the draft and the formally

endorsed document were not substantial. The Polish roadmap is composed of 55 measures with a

budget of EUR 12.4 billion, equivalent to 1.47% of GDP. Polish authorities expressed their intention to

adjust the national roadmap in line with Article 8 (3) of the decision establishing the Digital Decade

Policy Programme, but at the time of writing, neither the formally endorsed document, nor the draft

version, has been shared with the Commission.

3

Poland

In 2024, Poland was working on a comprehensive State Digitalisation Strategy to outline priorities for

the digital transformation of Poland until 2035 and provide a basis for public spendings in this area.

The implementation of the strategy, whose adoption is expected by mid-2025, will be aligned with

various existing and upcoming documents, both at national and EU level, to ensure a comprehensive

and coordinated approach to digital development.

Funding & projects for digital

Poland allocates 21% of its total recovery and resilience plan to digital (EUR 7.5 billion)1. In addition,

under cohesion policy, EUR 5.7 billion, representing 8% of the country’s total cohesion policy funding,

is dedicated to advancing Poland’s digital transformation2. Poland is a member of the Alliance for

Language Technologies EDIC and of the EUROPEUM EDIC. Poland is directly participating in the IPCEI

on Microelectronics and Communication Technologies (IPCEI-ME/CT) and in the IPCEI on Next

Generation Cloud Infrastructure and Services (IPCEI-CIS). Poland is also a participating state in the

EuroHPC Joint Undertaking (JU) and in the Chips JU.

Poland has not yet presented any projects in the framework of Digital Decade’s Best Practice

Accelerator3.

Digital Rights and Principles

According to a support study, Poland has been relatively active in implementing the European

Declaration on Digital Rights and Principles, with 62 initiatives overall and 6 new initiatives launched

in 2024. Poland is most active in the area of digital education, training and skills. Less activity has been

identified with regards to a fair digital environment and sustainability. Measures in the area of freedom

of choice appear to have most impact on the ground, in contrast to those addressing participation in

the digital public space.

Recommendations

- Basic digital skills: Increase the attractiveness of STEM disciplines at school to raise interest in

taking up ICT-related studies and careers, including by girls and women. Strengthen the

measures focused on social groups with lower digital skills, such as older adults, inhabitants of

rural areas, and people with disabilities.

- ICT specialists: Take measures to increase the number of ICT specialists (e.g. improved training

and reskilling options; incentive schemes to attract new / retain current ICT specialists, including

specialists from other countries) and continue promoting ICT studies and careers to women and

girls.

- SMEs: Enhance digitalisation of SMEs, including by directing existing support to those who lag

in digitalisation and improving their awareness of the benefits offered by digitalisation and of

the available support options.

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital Skills,

Green IT, and the Uptake of Digital Technologies.

4

Poland

- Cybersecurity: Continue efforts in cybersecurity to address evolving threats, particularly for

enterprises and administration.

- Artificial Intelligence: Create an AI friendly ecosystem by stimulating public and private

investments in research and innovation, raising awareness among entrepreneurs, increasing

access to specialised knowledge and computing power, and implementing consistent legal

frameworks and standards.

- 5G: Encourage operators to speed up the deployment of 5G stand-alone core networks.

- Cloud: Encourage the adoption of cloud technologies by businesses, focusing on sovereign

European solutions.

- Unicorns: Continue to improve the business environment and access to finance for digital start-

ups, provide more tailored support to address the challenges for scaling business.

- Semiconductors and digital innovation: Invest in the development and manufacturing of critical

technologies in the areas of digital and deep tech.

- Green: Develop a system for monitoring and quantifying the emission reductions of the digital

solutions deployed.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 23

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Portugal

SHORT COUNTRY REPORTS 2025

2

Portugal

Executive summary Portugal records stable growth in digital public services and performs particularly well on access to

e-health records. It faces challenges with artificial intelligence (AI) adoption by enterprises and their

capacity to innovate as well as basic digital skills but can rely on solid connectivity networks.

Portugal shows a high level of ambition in its contribution to the Digital Decade having set 12

national targets, 92% of which aligned with the EU 2030 targets. The country is following its

trajectories very well with 100% of them being on track (considering 2024 trajectories defined for 7

KPIs out of 8 analysed). Portugal addressed 77% of the 13 recommendations issued by the

Commission in 2024 by making some changes through new measures.

In 2024 Portugal noted progress in all measured indicators, with its digital networks almost covering

the full territory. The National Digital Strategy adopted in December 2024 announced ambitious plans

regarding AI, data sharing, sovereign cloud and simplification through digital tools. However, while at

least basic digital intensity of SMEs is slightly above the EU average, AI adoption by enterprises remains

weak, and the scale-up support for start-ups is limited. On the other hand, the growing availability and

use of digital public services for citizens and businesses, as well as the significant improvement in

access to e-health records create a blueprint to build on. While basic digital skills remain unevenly

distributed across society, more people acquired advanced digital skills, including in areas such as

cybersecurity. Portugal is also involved in EU-wide cooperation in semiconductors and quantum

technologies.

Digital Decade KPI (1)

Portugal EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025 Annual

progress PT EU

Fixed Very High Capacity Network (VHCN) coverage 94.2% 94.6% 0.4% 94.2% 82.5% 4.9% 100.0% 100%

Fibre to the Premises (FTTP) coverage 92.3% 93.2% 0.9% 92.3% 69.2% 8.4% 100.0% -

Overall 5G coverage 98.1% 98.7% 0.6% 98.1% 94.3% 5.9% 100.0% 100%

Edge Nodes (estimate) 14 27 92.9% - 2257 90.5% - 10000

SMEs with at least a basic level of digital intensity (2) - 74.3% 2.7% - 72.9% 2.8% 90.0% 90%

Cloud 32.3% - - - - - 75.0% 75%

Artificial Intelligence 7.9% 8.6% 9.8% - 13.5% 67.2% 75.0% 75%

Data analytics 38.6% - - - - - - 75%

AI or Cloud or Data analytics 54.4% - - - - - - 75%

Unicorns 1 1 0.0% - 286 4.4% 2 500

At least basic digital skills 56.0% - - - - - 80.0% 80%

ICT specialists 4.6% 5.2% 13.0% 4.5% 5.0% 4.2% 7.0% ~10%

eID scheme notification Yes

Digital public services for citizens 81.5 84.5 3.6% 81.5 82.3 3.6% 100.0 100

Digital public services for businesses 81.9 84.3 2.9% 81.9 86.2 0.9% 100.0 100

Access to e-Health records 86.0 88.1 2.4% 86.0 82.7 4.5% 100.0 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports the version 4 of the Digital Intensity Index, that is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory that is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024)

3

Portugal

According to the special Eurobarometer on ‘the Digital Decade’ 2025, 71% of Portuguese citizens

consider that the digitalisation of daily public and private services is making their lives easier. On the

action of the public authorities, 89% consider it important to counter and mitigate the issue of fake

news and disinformation online, and on competitiveness, 89% consider it important to ensure that

European companies can grow and become ‘European Champions’ capable of competing globally.

A competitive, sovereign, and resilient EU based on technological leadership

Portugal enjoys robust connectivity infrastructure, with stable progress across the indicators and

almost full 5G coverage. However, broadband and mobile take up are mostly lower than the EU

average and so is 5G pioneer bands spectrum assignment. To engage more under the ‘Chips for

Europe’ initiative, Portugal has set up a national chips competence centre. The country provides some

contribution to European quantum initiatives. SMEs record at least basic digital intensity slightly above

the EU average, but the take-up of AI by enterprises remains modest. Ambitious plans regarding

sovereign digital solutions, such as AI development and cloud, and boosting the innovation ecosystem

are partly supported by funding under the recovery and resilience plan. The country plans to increase

the number of start-ups from just over 4 700 in 2024 to 6 000 by 2030 with anticipated spillover on

the number of unicorns, as Portugal currently hosts only one such company. For Portuguese start-ups,

access to funding at further growth stages remains an issue. The cybersecurity awareness of people

and companies is growing, in part thanks to strong efforts by and the collaborative spirit of the

authorities. However, NIS2 Directive still awaits transposition and implementation into national law.

Protecting and empowering EU people and society

Basic digital skills remain in the EU average, with significant gaps for people with lower levels of

education and older people. However, in 2024 Portugal noted promising progress in the share of ICT

specialists, including female ones. Some programmes are starting to promote gender convergence in

this area but advanced digital skills are not prominent in Portugal’s roadmap. Robust digital skills are,

however, promoted in public administration, notably due to investments from Portugal’s recovery and

resilience plan. The country shows good progress on digital government, with visibly more people

using such solutions and digital public services for citizens remain at high level. With a single Gov.pt

app, digital identity might gain momentum. In addition, access to e-health records progressed rapidly

over the last years, making Portugal one of the frontrunners. This might also be linked to the RRF

investment in digital health transition. However, some challenges persist as digital services for

businesses are below the EU average, in particular in cross-border context. Media literacy and child

protection receive growing attention.

Leveraging digital transformation for a smart greening

Green and digital priorities are slowly gaining attention. With RRF support, Portugal is implementing

a Digital and Smart Nation agenda, which envisages the creation of Urban Management Platforms and

digital twins. These will leverage vast data on territories, as well as connectivity solutions, to respond

to territorial challenges, including environmental and climate ones.

National digital decade strategic roadmap

Portugal submitted a fully revised national Digital Decade roadmap in December 2024, (with targeted

adjustments until March 2025) containing more than 150 measures, including many new ones, revised

targets and, for the first time, more than half of the required trajectories. It is largely based on the

4

Portugal

National Digital Strategy and its action plan, on which stakeholders were consulted. The updates are

aligned with the new Commission’s priorities on AI, sovereignty and digital skills. The revised roadmap

includes reporting on the consultation of stakeholders and addresses a substantial number of

roadmap recommendations issued in 2024. Most targets align with the EU level goals for 2030, except

for 7% target for ICT specialists (instead of 10%) by 2030. The revised roadmap continues to prioritise

digital skills, digital public administration and the digitalisation of businesses. It is composed of 157

measures with a budget of EUR 2.15 billion, equivalent to 0.75% of GDP. The roadmap responds to

majority of objectives, such as human-centred digital transformation, simplification, sovereignty and

resilience. However, areas such as sustainability and inclusion lack specific focus, while

competitiveness is not comprehensively covered.

Funding & projects for digital

Portugal allocates 21% of its total recovery and resilience plan to digital (EUR 4.5 billion)1. In addition,

under cohesion policy, EUR 2.4 billion, representing 11% of the country’s total cohesion policy funding,

is dedicated to advancing Portugal’s digital transformation2.Portugal is a member of the Local Digital

Twins towards the CitiVERSE EDIC and of the EUROPEUM EDIC. Portuguese entities are indirect and/or

associated partners in the IPCEI on Microelectronics and Communication Technologies (IPCEI-ME/CT).

Portugal is also a participating state of the EuroHPC Joint Undertaking (JU) and of the Chips JU.

Portugal has contributed to the Best Practice Accelerator3 by sharing one best practice in the frame of

the Green IT cluster (National Strategy for Smart Territories).

Digital rights and principles

According to a support study, Portugal has been one of the most active Member States in

implementing the European Declaration on Digital Rights and Principles, with over 100 initiatives

overall and 14 new initiatives launched in 2024. Portugal is most active in the Declaration area of

digital education, training and skills. Less activity has been identified with regards to privacy and

individual control over data. Measures in the area of freedom of choice appear to have most impact

on the ground, in contrast to those addressing participation in the digital public space.

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery

and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the 2021-

2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the Cohesion

Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and challenges

encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available to Member

States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters: Digital

Skills, Green IT, and the Uptake of Digital Technologies.

5

Portugal

Recommendations

- Artificial Intelligence: Support AI take-up and thus enable innovation by enterprises, including

by timely implementation of ongoing and planned measures.

- Basic digital skills: Evaluate the take-up of the current measures and identify ways to address

the remaining needs, notably to tackle the digital divide in the society.

- Basic digital intensity of SMEs and advanced technologies: Support the adoption of advanced

digital technologies by businesses by fostering enhanced collaboration between public and

private sector and academia and by identifying support measures for the medium-term.

- Cloud: Encourage cloud take-up, in particular implement the plans for sovereign cloud

infrastructure.

- ICT specialists: Identify ways to attract ICT specialists, promote ICT studies, digital upskilling

and reskilling options, and continue reinforcing gender balance in the field.

- Green: Consider introducing a coherent approach to twinning the digital and green transitions.

- Scale-ups and unicorns: Continue improving the business environment and access to finance

for digital start-ups to grow into scale-ups, including by targeting business R&D with public

support.

- Semiconductors: Continue efforts in semiconductors and strive towards leadership at EU level.

- 5G: Consider assigning remaining 5G pioneer bands and promoting 5G take-up.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 24

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Romania

SHORT COUNTRY REPORTS 2025

2

Romania

Executive summary Romania can rely on a well-developed fixed connectivity infrastructure and is strengthening its role

in critical technologies like semiconductors, but persistent R&D gaps, weak SME and start-up

innovation and slow emerging tech uptake limit its competitiveness. While the country is advancing

in digital public services, challenges remain in digital skills, inclusion, and integrating sustainability

into its digital infrastructure. Romania shows a low level of ambition in its contribution to the Digital

Decade having set 11 national targets, 36% of which are aligned with the EU 2030 targets. The

country is fully following its trajectories (on the basis of the 2024 trajectories defined for 1 KPI out

of 8 analysed). Romania addressed 40% of the 15 recommendations issued by the Commission in

2024 by making some changes through new measures.

Romania remains an EU leader when it comes to fixed connectivity, but more efforts are needed on

5G. Despite recent efforts, Romanians have very low levels of digital skills. Efforts have been made to

strengthen Romania’s position regarding semiconductor manufacturing. The country is also taking

major steps to improve the digitalisation of public services, including a new Governmental cloud and

the notification of an eID scheme. Romania struggles with integrating digital technology into business

activities. AI and data analytics are not used to their full potential. Lack of access to capital both for

start-ups and scale-ups remains an important issue hampering digital innovation.

Digital Decade KPI (1)

Romania EU Digital Decade target

by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025

Annual progress

RO EU

Fixed Very High Capacity Network (VHCN) coverage

95.0% 95.9% 0.9% - 82.5% 4.9% 99.0% 100%

Fibre to the Premises (FTTP) coverage 95.0% 95.7% 0.8% - 69.2% 8.4% 99.0% -

Overall 5G coverage 32.8% 46.8% 42.7% 33.0% 94.3% 5.9% 62.0% 100%

Edge Nodes (estimate) 5 11 120.0% - 2257 90.5% - 10000

SMEs with at least a basic level of digital intensity (2)

- 69.1% 14.7% - 72.9% 2.8% 75.0% 90%

Cloud 15.5% - - - - - 40.0% 75%

Artificial Intelligence 1.5% 3.1% 103.3% - 13.5% 67.2% 10.0% 75%

Data analytics 21.9% - - - - - 15.0% 75%

AI or Cloud or Data analytics 28.7% - - - - - - 75%

Unicorns 0 0 - 286 4.4% - 500

At least basic digital skills 27.7% - - - - - 50.0% 80%

ICT specialists 2.6% 2.8% 7.7% - 5.0% 4.2% 4.0% ~10%

eID scheme notification Yes

Digital public services for citizens 52.2 62.7 20.2% - 82.3 3.6% 100.0 100

Digital public services for businesses 50.0 55.1 10.2% - 86.2 0.9% 100.0 100

Access to e-Health records 58.6 75.1 28.2% - 82.7 4.5% - 100

(1) See the methodological note for the description of the indicators and other metrics (2) DESI 2025 reports the version 4 of the Digital Intensity Index, which is comparable with the DII value from DESI 2023 (referring to year 2022) for the calculation of the annual progress. It is not comparable to the national trajectory, which is based on version 3 of the index. (3) National trajectory value if present in the national roadmap and if the indicator was measured in DESI2025 (year 2024).

3

Romania

According to the 2025 special Eurobarometer on ‘the Digital Decade’, 62% of Romanians consider

that the digitalisation of daily public and private services is making their lives easier. 77% consider the

action of the public authorities important to counter and mitigate the issue of fake news and

disinformation online. 77% consider competitiveness important to ensure that European companies

can grow and become ‘European Champions’ capable of competing globally.

A competitive, sovereign, and resilient EU based on technological

leadership

Romania remains an EU leader in connectivity, including in sparsely populated areas, has the highest

take-up of high-speed Internet in the EU for >100 Mbps and ranks 3rd in the EU for >1 Gbps

connections. However, despite strong year-on-year growth, Romania continues to underperform on

5G, both in terms of coverage and spectrum assignment. Significant growth potential exists here and

a lot more could be done to promote the benefits of 5G connectivity, particularly how it could support

the country’s manufacturing and B2B sectors.

Romania is slowly strengthening its position in critical technologies. Recently, it has adopted its

national quantum technology strategy and announced an initiative that will lead to an investment of

EUR 420 million (NRRP) for auto industry semiconductor R&D and manufacturing. The approach,

which involves European companies, universities and SMEs, has the potential to build a strong

semiconductor ecosystem in the medium and long term.

Romania does not have unicorn companies in ICT and digital. Its start-up ecosystem would benefit

from better conditions for access to capital, in particular risk, in order to develop further. Regarding

cybersecurity, Romanians take fewer steps than the EU average to protect their data online. Romania

has transposed the NIS2 Directive in its national legislation via an Emergency Ordinance.

Protecting and empowering EU people and society

Romania is investing significantly in digitalising its public services and raising the overall level of digital

skills. This is a long-term process that needs strong political will, a clear agenda and renewed

commitment in terms of efforts and resources in order to achieve success.

Romania continues to rank last in basic digital skills, but it is taking significant steps to address this,

with a higher budget for education and schemes in place to train teachers and optimise the education

process. It is important that the concept of acquiring the necessary digital skills is integrated

throughout the curricula and represents a key KPIs for investments throughout the entire learning

cycle.

Regarding ICT specialists, Romania has a high number of graduates but is not able to retain this talent

in the country. The number of ICT specialists appears to be stagnating, which could put the country’s

2030 target at risk.

Romania demonstrates a consistent pattern of robust growth for the digitalisation of public services,

but the absolute scores for Romania remain below the EU average. Major projects are currently being

announced or implemented and should transform how public services are delivered but will require

the appropriate degree of development and maintenance over time. The public entities running these

projects should be given the necessary resources (finance, project management, ICT specialists) to

continue them after the original contract is finalised. Streamlining of the multiple existing projects

that have been promoted as ‘single point of contact’ could also be envisaged.

4

Romania

For eHealth, Romania has gradually improved its performance, but not all data types are available and

less than 50% of the healthcare providers are connected and supplying data. A new strategy for the

digitalisation of the health system is being prepared. A new health insurance platform, which should

replace the current one, is expected for 2026.

Leveraging digital transformation for a smart greening

Regarding progress in its twin transition, Romania is slowly advancing on an integrated approach to

making digital infrastructure greener and tracking emission reductions.

National Digital Decade strategic roadmap

Romania has not submitted an update to its national Digital Decade roadmap. Taking into account

Romania’s starting point, the roadmap puts forward ambitious objectives, particularly for the use of

digital services and the number of ICT specialists.

Overall, the roadmap is a key document in ensuring ownership and oversight of the necessary steps

to meet the national targets. It was formally adopted by the Romanian Government in October 2024.

The roadmap consists of 98 measures with a budget of EUR 3.6 billion (equivalent to 1.01% of GDP) of

which a substantial share stems from the National Recovery and Reform Plan. The main focus is on

the digitalisation of public services and increasing digital skills. A lower priority seems to be given to

the digitalisation of businesses and advanced technologies (semiconductors, quantum, edge nodes).

Similarly to 2023, Romania has not indicated targets for eHealth, quantum, edge nodes and

semiconductors. None of the existing targets were revised.

Funding & projects for digital

Romania allocates 22% of its total recovery and resilience plan to digital (EUR 5.8 billion)1. In addition,

under cohesion policy, EUR 2.7 billion, representing 9% of the country’s total cohesion policy funding,

is dedicated to advancing Romania’s digital transformation2. Romania is a member of the EUROPEUM

EDIC. Romania is directly participating in the IPCEI on Microelectronics and Communication

Technologies (IPCEI-ME/CT). Romania is also a participating state in the EuroHPC Joint Undertaking

(JU) and in the Chips JU.

Romania has contributed to the Best Practice Accelerator3 by sharing one best practice in the frame

of the Digital Skills cluster (Skills in Advanced Technologies for SMEs).

Digital Rights and Principles

According to a support study, Romania has been relatively active in implementing the European

Declaration on Digital Rights and Principles, with 62 initiatives overall and 2 new initiatives launched

1 The share of financial allocations that contribute to digital objectives has been calculated using Annex VII to the Recovery

and Resilience Facility Regulation. Last data update: 16 May 2025. 2 This amount includes all investment specifically aimed at or substantially contributing to digital transformation in the

2021-2027 Cohesion policy programming period. The source funds are the European Regional Development Fund, the

Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund. 3 The Best Practice Accelerator (BPA) is a platform that enables Member States to share successful measures and

challenges encountered in their efforts to meet their Digital Decade targets and objectives. Best practices are made available

to Member States via the BPA Repository and showcased in regular workshops, currently focused on three thematic clusters:

Digital Skills, Green IT, and the Uptake of Digital Technologies. 

5

Romania

in 2024. Romania is most active in the area of putting people at the centre of the digital

transformation. Less activity has been identified with regards to a fair digital environment and

sustainability. Measures in the area of putting people at the centre of the digital transformation

appear to have most impact on the ground, in contrast to those addressing freedom of choice.

Recommendations

- Digital public services: Continue to dedicate the necessary resources (finance, project

management, ICT specialists) for the digitalisation of public services, including after the initial

set-up (maintenance and support). Streamlining of the multiple existing projects that have been

promoted as ‘single point of contact’ could also be envisaged.

- Basic digital skills: Continue to integrate basic digital skills as a core component of the education

process, both for teachers and students. Make upskilling, particularly of employees in the private

sector and older population, a priority.

- eHealth: Continue to expand the data sources available online. Adopt and implement the new

strategy on the digitalisation of health system, taking into account user needs and ease of use.

- ICT specialists and advanced skills: boost SME digital skills by simplifying support measures and

engaging stakeholders to identify market needs. Identify ways to attract and retain ICT talent.

- Unicorns: Building on existing programmes, Romania should identify ways to support company

scale-up and diversify funding opportunities for innovative companies.

- Advance technologies take-up Continue efforts, including via EDIHs, to increase the uptake of

cloud and AI services by companies of all sizes. Continue to increase the number of edge nodes

deployed and ensure links with work done on semiconductors, quantum and the internet of

things.

- 5G: increase overall 5G coverage, including in the 3.4–3.8 GHz band, and spectrum assignment.

- Twin digital-green transition: Develop a comprehensive strategy to align digitalisation with

environmental goals.

EN EN

EUROPEAN COMMISSION

Brussels, 16.6.2025

COM(2025) 290 final

ANNEX 25

ANNEX

to the

Communication from the Commission to the European Parliament, the Council and the

European Economic and Social Committee and the Committee of the Regions

State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future

{SWD(2025) 290 final} - {SWD(2025) 291 final} - {SWD(2025) 292 final} -

{SWD(2025) 293 final} - {SWD(2025) 294 final} - {SWD(2025) 295 final}

Slovakia

SHORT COUNTRY REPORTS 2025

1

Slovakia

Executive summary Slovakia made some improvement in digital infrastructure deployment and take-up of broadband

connectivity and 5G network services, but it still lags behind in overall rollout of digital infrastructure

and in business digitalisation. Good progress was achieved in the share of ICT specialists and a

promising trend emerges among the youth, with digital skills levels in line with the EU average.

Slovakia shows a substantial level of ambition in its contribution to the Digital Decade, having set 12

national targets, 83% of which aligned with the EU 2030 targets. The country is following its

trajectories well with 86% of them being on track (considering 2024 trajectories defined for 7 KPIs

out of 8 analysed). Slovakia addressed 27% of the 15 recommendations issued by the Commission

in 2024 by making some changes through new measures.

Slovakia falls short of EU standards in most of the Digital Decade key performance indicators. Efforts

are underway to bridge these gaps, but their results will require time and additional resources to fully

materialise. The country is taking steps to create an environment that supports the digitalisation of

SMEs and the development of digital skills, with new measures introduced in 2024. At the same time,

public sector investments aim to further enhance connectivity infrastructure, with a particular focus

on FTTP, and comprehensive initiatives are supporting the development of a high-performance

computing ecosystem. While digital public services are below EU average levels, a comprehensive

investment plan was adopted to strengthen their digitalisation. Increasing attention is being dedicated

to ensuring cybersecurity.

Digital Decade KPI (1)

Slovakia EU Digital Decade target by 2030

DESI 2024 (year 2023)

DESI 2025 (year 2024)

Annual progress

National trajectory 2024 (3)

DESI 2025 Annual

progress SK EU

Fixed Very High Capacity Network (VHCN) coverage 69.1% 73.0% 5.6% 49.0% 82.5% 4.9% 100.0% 100%

Fibre to the Premises (FTTP) coverage 64.2% 67.8% 5.6% - 69.2% 8.4% - -

Overall 5G coverage 79.0% 87.9% 11.3% 80.0% 94.3% 5.9% 98.5% 100%

Edge Nodes (estimate) 5 10 100.0% - 2257 90.5% - 10000

SMEs with at least a basic level of digital intensity (2) - 62.9% 2.2% - 72.9% 2.8% 90.0% 90%