‘Over the next five years, Europe must focus on maintaining our digital leadership where we have it, catching up where we lag behind and moving first on new-generation technologies,’ Commission President Ursula von der Leyen wrote to Margrethe Vestager when she appointed her as executive vice-president in 2019 for the policy area, ‘A Europe fit for the Digital Age’.
Ms Vestager’s tasks included ensuring that Europe uses digital technology in the service of industry and innovation; enabling small businesses, entrepreneurs and start-ups to make the most of digitalisation; upgrading rules for digital platforms, services and products; and developing a European approach to artificial intelligence.
Long-standing support from cohesion policy
Cohesion policy had been contributing to Europe’s efforts to deploy digital technology to reach growth and sustainability goals for over a decade. One of the policy’s funds, the European Regional Development Fund (ERDF), allocated over EUR 14 billion for 2014-2020 to digital investments, to be complemented by national and private funding. This was part of efforts to meet the goals of the digital single market initiative, announced in 2015.
The focus of these cohesion policy investments was to support the digitalisation of firms, expand access to e-services by government and the health sector, promote digital skills and roll out broadband networks in remote and rural regions to ensure everyone has access to digital technology.
Nearly one quarter, or 22 % (EUR 3.8 billion) of ERDF’s digital investments for 2014-2020 was allocated to projects in e-government services and applications. Poland, Estonia and Italy were the top three beneficiaries.
A further 14%, (EUR 2.44 billion), was set aside for projects that promote inclusion, accessibility, learning and education in the digital sphere. Italy, Spain, France, Poland and Romania were the top beneficiaries.
The same slice of funding was set aside for the rollout of high-speed broadband, with the top five beneficiaries being Poland, France, Hungary, Greece and Italy.
Eight percent, or EUR 1.4 billion was for ICT services and applications for SMEs. Greek, Spain, Hungary, Czechia and Poland were the main beneficiaries.
Four areas of support
Cohesion policy funding was concentrated on four areas: digitising European industry, improving broadband connectivity and access, creating a digital society and economy and development of innovative digital technologies.
The priority digitising European industry supported SMEs in making greater use of digital technology and helping countries like Poland make the shift from labour-intensive industries like coal mining to digital economies. Initiatives included the development of digital innovation hubs and living labs.
More than 80 ERDF programmes in 17 Member States invested in rolling out high-speed broadband, in line with national or regional plans. This helped make businesses more productive and public services more efficient and easier for the public to access.
The priority creating a digital society and economy funded smart cities – where technology is used to manage assets, services and resources like energy and transport efficiently.
Access to e-government, e-health, digital skills and cyber-security was also funded. More than 130 ERDF programmes in 21 Member States invested in e-government services, e-learning and education and in ICT solutions for active ageing. Another 80 ERDF programmes in 16 Member States made public sector information accessible for business growth.
One project, the Cemit Network, helped to bridge the digital divide in Galicia, Spain. An elderly woman making a video call on her cell phone to talk to her granddaughter or her pensioner neighbour making a doctor's appointment using a mobile app were two examples of how the project helped to connect people and services. Cemit ensured that every Galician was within 30 minutes of an ICT classroom. Over 72 775 Galicians participated in more than 280 800 hours of digital training.
The main beneficiaries were the elderly, disabled, unemployed, youth, women and people at risk of social exclusion. Galicia reduced the number of people who have never used the internet from 50 % of the population in 2008 to 19 % by 2017. This increased the employability of many citizens and encouraged innovation and entrepreneurship.
Projects to develop innovative digital technologies focused on the internet-of-things, artificial intelligence, augmented and virtual reality, and supercomputing. Cybersecurity, 3D printing and high-tech farming and skills development for regions in industrial transition were other areas of focus.
One such project was Poland’s Spine of the Future, which is restoring quality of life for people with spinal injuries and reducing their recovery time after surgery. Cohesion policy funded 60 % of the project’s EUR 7.9 million budget. This helped surgical equipment manufacturer LfC, near Zielona Góra, combine medicine, engineering and technology to produce custom-made titanium vertebra and other spinal implants using 3D printing. LfC employs 60 people making around 400 innovative products. The company holds some 100 patents and works with doctors to produce specialised surgical instruments.
Results achieved
Thanks to cohesion policy support, the number of firms that received support for digitalisation increased from 93 in 2015 to 42 154 in 2022. The top three beneficiary countries in 2022 were Hungary, Spain and the UK.
The number of households with broadband access of at least 30 megabits per second rose from 2 475 in 2015 to 7.8 million in 2022, with the top three beneficiaries being Spain, Italy and Poland.
What the future holds
For the 2021-2027 investment period, the Commission’s two policy objectives that prioritise digital investments are a smarter Europe – through innovation, digitisation, economic transformation and support to SMEs – and the rollout of digital networks.
The next generation of cohesion policy programmes will continue to promote investments that ensure Europe’s economies and societies take advantage of the spread of digital technology.
