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Narrowing the digital divide: Economic and social convergence in Europe's digital transformation | European Foundation for the Improvement of Living and Working Conditions

Published 18 hours ago3 minute read

This report assesses upward convergence trends in digitalisation and proposes actionable strategies to ensure that no one is left behind. Upward convergence takes place when EU Member States grow together in the same direction and disparities are reduced.
 

When Ursula von der Leyen, President of the European Commission, launched the twin (digital and green) transition in 2019, the commitment was to ‘leave nobody behind’. In the complex scenario of digital competition on the global stage, the digital divide has both economic and social implications. In terms of economic implications, digitally excluded citizens and firms might be less equipped to engage in economic activities using digital means. This could translate into low productivity, lack of competitiveness and, consequently, low growth. Social implications arise because not having access to government or private services could lead to discontent and erode social cohesion.
 

Applying the lens of convergence to the evolution of digital indicators, this report investigates the digital divide and the long-term trends in digitalisation in Europe. It explores whether Member States, businesses, socioeconomic groups and regions have converged on their paths towards digitalisation.
 

While digitalisation has been on the EU policy agenda since 2000 and significant progress has been made in this regard, the digital transformation is not yet complete. It has been reinforced with ambitious targets for 2030 – a ‘Europe fit for the digital age’ is now the priority. The second report on the Digital Decade, published in July 2024, called for additional investments in digital skills, high-quality connectivity and the uptake of artificial intelligence. The ambitious target of equipping 80 % of the EU population with basic digital skills is accompanied by EUR 250 billion in funding through NextGenerationEU and by a EUR 43 billion investment supporting the European Chips Act, which links with the European industrial strategy.
 

The digitalisation strategy is supported by regulations aiming to protect citizens and boost competitiveness in the market, such as:
 

26 % of the Recovery and Resilience Facility (EUR 150 billion) is dedicated to digitalisation. The second report on the Digital Decade underlines progress made by Member States on digital key performance indicators in the areas of digital infrastructure, business transformation, skills and public services. It also highlights that progress has been uneven, in particular in the areas of digitalisation of small and medium-sized enterprises and digital skills. This Eurofound report explores these disparities and measures the extent to which convergence has been reached; it identifies socioeconomic groups, regions and businesses still affected by the digital divide.
 

Over the past two decades, great strides have been made in digitalisation. According to almost all indicators analysed, historically lower-performing Member States have been catching up with the digital leaders. However, significant regional and socioeconomic inequalities persist.
 

These policies highlight the importance of committing to ‘doing no harm’ in the digital transition process and thus preventing the problem of exclusion.
 

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