Over the past several years, Europe has adapted to the fast-changing digital landscape by working to ensure that society benefits from technology and that innovation boosts the European Union’s competitiveness and technological sovereignty, while minimising the risk to citizens. Billions of euro have been invested in the expansion of fibre optics and 5G to improve connectivity across the EU, and workers are being equipped with the skills they need for the digital future. The groundbreaking Digital Services Act and Digital Markets Act are already making the digital space safer and fairer for all and ensuring that tech giants take responsibility for their significant impact on society and the economy. The EU is also leading the way in making artificial intelligence (AI) safer and more trustworthy, while tackling the risks associated with its misuse. To boost innovation, collaboration between research organisations and universities has been strengthened and investment in cutting-edge technologies such as supercomputing, semiconductors, quantum computing and space technology has been significantly increased.

Almost halfway through Europe’s Digital Decade - open a new tab., the EU assessed progress towards the goals guiding the EU’s digital transformation. With a common plan and clearly defined targets to be achieved by 2030, the aim is to integrate technology into all areas of society, from schools and hospitals to large and small businesses, and to give people in the EU the tools to make the most of everything the internet has to offer.

The 2024 progress report - open a new tab. on the Digital Decade shows how far the EU has come in realising these goals, without shying away from highlighting areas for improvement. It calls on all Member States to further support local start-ups, promote digital literacy in their communities and improve the uptake of AI and data analytics in businesses and in semiconductor manufacturing. The EU has also updated its recommendations for each Member State, taking into account different strengths and challenges across the EU.

Artificial intelligence, virtual worlds and supercomputers

AI is becoming a transformative force for European society and the economy. From manufacturing to healthcare and education, AI is transforming core processes and business models across all sectors, promising greater efficiency and growth. However, it is also bringing with it challenges in the areas of ethical development, fundamental rights and cybersecurity. A careful balance of policies is needed to tap the technology’s full potential and to address the associated concerns.

The EU wants to play a leading role in AI, but not at any cost. It advocates for responsible AI that puts people first. As the world’s first real attempt to regulate this technology, the EU’s AI Act - open a new tab., which entered into force in August, sets out clear rules and guidelines on how it can be used and how it should be developed. This will ensure that AI systems are reliable, fair and unbiased and that they protect people’s fundamental rights. A harmonised set of rules will make the work of companies developing AI easier by cutting red tape and encouraging innovation. The rules will also help companies know what to expect.

The new European Artificial Intelligence Office - open a new tab., set up in May, will create clear guidelines for companies and developers working with AI and ensure that the new rules are implemented uniformly throughout the EU. As the centre of AI expertise for the EU, it will also have a say in which AI models are approved, and can even block the use of AI that is deemed biased or unsafe. In September, the EU launched the AI Pact - open a new tab. to encourage organisations to plan ahead and start implementing its requirements ahead of the legal deadline.

AI innovation package to support AI start-ups and small and medium-sized enterprises

Launched in January 2024, this package of measures will support EU start-ups and small and medium-sized enterprises in developing trustworthy AI.

By combining research and regulation, the EU is creating a place for itself in the global technological landscape. The AI Act sets a global standard and positions the EU as a pioneer. In September, the EU signed the Council of Europe Framework Convention on Artificial Intelligence - open a new tab., the first legally binding international agreement on AI, which is fully aligned with the AI Act.

The EU is also committed - open a new tab. to open and accessible markets, especially for virtual worlds and generative AI, to create a level playing field and prevent monopolies from stifling innovation. The aim is to create an environment in which smaller companies and start-ups can compete with the tech giants.

While AI and virtual worlds are pushing the boundaries of digital innovation, the computing power needed to advance these technologies relies heavily on powerful computers. In September 2024, the EU issued a call for proposals to upgrade existing supercomputers and acquire several new ones with AI capabilities, further extending the largest public network of supercomputers in the world. These computers are tackling some of humanity’s biggest challenges, for example by accelerating drug discovery or improving climate modelling.

The EU is also looking beyond exascale computing, envisioning a future in which scientific breakthroughs could come at an unprecedented pace with the next generation of quantum computers. However, as quantum computers could also break today’s encryption systems, the EU issued a recommendation - open a new tab. in May calling on Member States to improve encryption methods to protect critical data.

Connectivity

The EU continued to invest in digital infrastructure in 2024. It made €420 million available through the Connecting Europe Facility (CEF Digital) - open a new tab., the EU funding programme that supports the roll-out of digital services. Through the new CEF Digital Work Programme - open a new tab., an additional €865 million will be provided between 2024 and 2027 to support both the roll-out of 5G in communities and along major transport routes and the laying of submarine cables to strengthen the EU’s backbone networks – high-capacity data lines that form the core of its internet infrastructure.

In February, the EU issued a recommendation - open a new tab. on the protection of submarine cables, recognising them as critical infrastructure. These undersea cables carry most of the world’s data but are vulnerable to damage and sabotage, making their protection essential for global communications and economic security.

The Gigabit Infrastructure Act - open a new tab., adopted in 2024, aims to accelerate and facilitate the deployment of high-capacity networks, such as fibre and 5G, for businesses. It removes cumbersome paperwork, approvals and regulations that have thus far slowed down network roll-outs and ensures faster internet, better connectivity and better services for all. Adopted at the same time, the Gigabit Recommendation - open a new tab. promotes competition between providers and offers consumers more options and better prices. An agreement was also reached on the rules on calls and text messages made from one Member State to another, ensuring the continued protection of vulnerable consumers from potentially high costs for such services until 2032.

The EU semiconductor industry

From the smartphones in our pockets to the cars we drive, semiconductors – commonly referred to as chips – power the devices that define modern life. By investing in research, production facilities and infrastructure, the EU is working to become more self-reliant in semiconductor manufacturing.

Doing business digitally

Companies expanding to other Member States often need to prove to authorities in those countries that they are an EU company and to resubmit information, such as their registered office details or the names of their legal representatives, even though these data are already available in the business register of their own Member State. New EU company rules - open a new tab., adopted in December, will introduce digital tools to ease this administrative burden. Companies will no longer need to resubmit documents when setting up subsidiaries or branches in other Member States, as this information will be exchanged directly between business registers under the once-only principle. In addition, a multilingual EU company certificate – essentially an EU corporate identity card – will allow companies to prove easily that they are legally incorporated in the EU, while an EU power of attorney will allow representatives to manage legal and business matters across borders.

The EU is also creating better-connected public administrations, for example by linking its Business Registers Interconnection System - open a new tab., which connects business registers across the EU, with the beneficial ownership registers - open a new tab. and insolvency registers systems - open a new tab.. This will also facilitate access to company information in the internal market.

The Commission and the Member States are also working to develop a single digital declaration portal - open a new tab. to reduce the administrative burden on companies (including small and medium-sized enterprises) posting workers to another Member State. A new online system will help companies meet national reporting rules when sending workers to other Member States. It will be available in all the official EU languages, will be simple to use and will let users reuse information from past reports.

Digital transport and mobility

The EU is taking steps to improve the way we move around our cities. The DeployEMDS - open a new tab. data-sharing project is a cornerstone of the EU’s effort to create a common mobility data space - open a new tab.. It aims to set up a system that allows cities to share real-time information on traffic flow and public transport. This smart network, which is already being tested in nine cities and regions, will help to identify and tackle urban mobility problems across the EU.

With the rapid development of drone technology, clear regulations in this area are becoming essential. The EU has adopted new measures - open a new tab. to address the unique safety challenges of emerging air mobility services. The aim is twofold: to streamline regulatory processes while maintaining high safety standards; and to harmonise regulations across all of the Member States. These harmonised rules will make life easier for drone developers and users. Clear, consistent regulations will also give companies the confidence to invest in new drone technologies, which will drive innovation across the EU.

Safer online services

While the internet is invaluable, it also harbours challenges such as misinformation, illegal hate speech and other forms of illegal content and practices. To rein in such practices and improve online safety, the EU has enacted two key pieces of legislation: the Digital Services Act - open a new tab. (DSA) and the Digital Markets Act - open a new tab. (DMA).

The DSA requires online platforms to be more proactive in removing illegal content, increase the transparency of their algorithms and ban certain types of targeted advertising. It started to apply across the EU in February 2024, introducing new rules for online platforms, social media and e-commerce sites. Larger platforms, known as very large online platforms, must comply with stricter rules due to their greater influence.

Protecting children has been a key focus of DSA enforcement and has led to action against three major platforms for inadequate age verification and exposing minors to harmful content. In parallel, teachers are being trained as DSA school guardians - open a new tab. to guide pupils through online challenges such as cyberbullying and misinformation, creating a safer digital space for young users. 2024 also marked the second anniversary of the Better Internet for Kids strategy - open a new tab., with the release of a self-assessment tool to help platforms better protect children online.

The DSA helps protect the integrity of elections from online threats, including AI-generated content, by stress-testing - open a new tab. platforms’ readiness and by issuing guidelines - open a new tab. on risk mitigation and the clear labelling of AI content. Complementary rules - open a new tab. adopted in March will limit the use of personal data in political advertising, both online and offline. They mandate that political adverts include transparency labels, require explicit consent for online targeting and ban profiling based on sensitive personal data. A European repository will provide details on all political adverts and their targeting methods, reducing the risk of manipulation and foreign interference. Adverts on behalf of non-EU actors are banned within a period of three months before elections.

A revision of the rules on combating child sexual abuse was proposed - open a new tab. to tackle new threats of child sexual abuse online, such as deepfakes and paedophile forums. The new rules will also strengthen prevention and victim support and set minimum standards for prosecution in the EU. A temporary legal measure to combat child sexual abuse online has been extended until 2026 to allow for ongoing voluntary measures to detect and remove abusive content. These efforts are helping to protect children online while the EU develops more permanent legislation to effectively tackle these issues.

Not only is the rising tide of intolerance online at odds with the EU’s founding principles, it also poses a serious threat to victims and jeopardises freedom of expression and democratic discourse. Social media platforms now face stricter oversight, as the EU has partnered with regulators to protect minors; make platforms more transparent; tackle illegal content and systemic disinformation; and improve enforcement through joint training, discussions and research.

While the DSA focuses on protecting users and tackling illegal content, the DMA ensures that our digital market remains fair and competitive. The DMA is one of the first tools to regulate the power of big digital companies. It works alongside EU competition rules, which still apply in full. It sets out clear criteria for designating gatekeepers – large digital platforms like search engines, app stores and messaging services. As of March 2024, the gatekeepers (of which there are currently seven) must abide - open a new tab. by all of the DMA’s dos and don’ts to prevent them from stifling competition. This will ensure that smaller companies have a fair chance to compete and that consumers enjoy more choice and fairer prices.

How did the EU enforce the DMA in 2024?

Two whistleblower tools were introduced in 2024, allowing individuals to provide information that helps identify and expose harmful practices by platforms, while protecting them from reprisals. Transparency is essential in order to increase consumer trust in the digital marketplace, especially when it comes to online influencers and retail platforms.

A screening (or ‘sweep’) of social media posts found that online influencers rarely disclose the commercial nature of the content they produce:

• 97 % of influencers posted commercial content; but
• only 1 in 5 consistently identified it as advertising.

Online marketplaces are growing in popularity but have been found to mislead consumers about pricing and terms. Following joint action by national consumer authorities and the EU, several online platforms have committed to improving their commercial practices.

Problematic marketing practices show the need for better laws to protect consumers online. In October, a review - open a new tab. identified gaps in EU consumer protection rules, such as unclear laws, rules being applied differently in different countries and weak enforcement. Specific areas that need to be improved will be reviewed in detail in 2025.

Cybersecurity

Few events can undermine consumer confidence, the stability of markets and the credibility of institutions more than a data breach or the shutdown of online services. Cybersecurity has therefore become a critical concern for everyone.

Legislation on measures to achieve a high level of common cybersecurity in all Member States (known as the NIS2 Directive - open a new tab.), entered into application in October. It provides legal measures to boost the overall level of cybersecurity in the EU and expands the scope of the cybersecurity rules to additional critical sectors and entities. These sectors include public electronic communications, digital services, waste water and waste management, space, postal services and public administration.

The EU also reached a political agreement - open a new tab. on rules to improve cooperation between Member States and enhance their ability to detect, prepare for and respond to cyber threats (the Cyber Solidarity Act). These rules will be a game changer for EU-wide cyber-threat detection, preparedness and incident response, with the provisional agreement including plans for a cybersecurity alert system, an emergency response mechanism and certification for managed security services.

New rules - open a new tab. to boost the cybersecurity of the EU institutions entered into force in January 2024. They set clear guidelines for the institutions on establishing internal cybersecurity risk-management, governance and control frameworks. These measures will help prevent data breaches and cyberattacks that could affect public services, personal data and overall trust in digital systems.

Security must also be built into every digital product that people use. The Cyber Resilience Act - open a new tab., adopted in October (which will start to apply as of late 2027), will achieve this by ensuring safer hardware and software. Manufacturers are required to implement security measures in all products with digital components, from smartphones to coffee machines. The rules specify the need for security assessments, vulnerability handling and software updates throughout a product’s life cycle.

A cybersecurity exercise in June tested the EU’s readiness for a large-scale cyberattack by simulating an attack on the energy sector. This was followed by reports and recommendations on cybersecurity in telecommunications, electricity and communications networks. The EU adopted the first cybersecurity certification scheme - open a new tab., which sets out EU-wide rules for the certification of ICT products throughout their life cycle. The EU is also investing over €210 million - open a new tab. to strengthen cyberdefence and digital capabilities across Europe.

Managing and protecting data in the EU

Data are the engine of the modern economy, and every industry relies on the free flow of information. This connectivity opens up global markets for companies of all sizes but also brings challenges in terms of the secure and fair handling and sharing of data.

New legislation - open a new tab. came into force in January to make data sharing in the EU more transparent and accessible. The Data Act defines who gets to use data and under what conditions, giving companies secure access to essential data. Better access to industrial data promotes competition and innovation, especially for smaller companies. This will enable them to develop new products and services and compete with larger companies. Legal action - open a new tab. also ensued in May against 18 Member States that had failed to set up proper authorities to oversee the Data Governance Act - open a new tab., which sets out rules for sharing data across the EU.

More public datasets - open a new tab. will now be available for reuse, thanks to new rules that started to apply in June. They apply to high-value datasets - open a new tab. containing information on six thematic areas, including geospatial data, earth observation and mobility, and will foster innovation in areas such as AI. The creation of a European Health Data Space - open a new tab. will give citizens full control over their health data, while still allowing their use for research and public health under strict conditions.

Growth potential of the health data economy

• €5.5 billion in savings in the EU over 10 years through improved access to and exchange of health data in healthcare.
• 20–30 % additional growth in the digital health market.
• €5.4 billion in savings in the EU over 10 years from better use of health data for research, innovation and policymaking.

In a world of increasing data sharing, the EU’s data protection law, the General Data Protection Regulation - open a new tab. (GDPR), also ensures that progress does not come at the expense of privacy. The GDPR continues to be a cornerstone for all EU digital policies touching upon personal data. It gives people control over their personal data and who gets to access them. The GDPR remains the leading example for data protection frameworks worldwide. At the same time, the 2024 report on the application of the GDPR - open a new tab. identified some areas for improvement, including the handling of cross-border cases. This had already been addressed through the proposed GDPR procedural rules regulation, which seeks to streamline cooperation between data protection authorities when enforcing the GDPR in cross-border cases.

The significance of the GDPR also extends beyond the EU. As companies increasingly rely on cross-border data flows, the GDPR provides tools to protect personal data, even when they leave the EU, and may even restrict transfers to countries with lower standards. One of the mechanisms used to ensure that data enjoy the same level of protection outside the EU is adequacy decisions, which recognise non-EU countries that provide adequate data protection. So far, 16 adequacy decisions have been adopted, which are periodically reviewed. Following a review in January 2024, the EU confirmed that data can continue flowing freely to 11 partner countries and territories - open a new tab..

On the basis of a new adequacy decision - open a new tab. for the EU–US Data Privacy Framework, personal data can flow safely from the EU to US companies without having to put in place additional data protection safeguards. It also gives people in the EU the right to appeal to a new court set up to resolve EU complaints about the activities of the US intelligence services. The October 2024 evaluation report - open a new tab. on the framework confirmed that US authorities have put in place the necessary structures and procedures to ensure it functions effectively. These safeguards protect data in all transatlantic transfers, including those done through company agreements or internal policies.

Digital public services

Public and private services are becoming increasingly digital, but online privacy and security are not always up to the required standard, leaving individuals vulnerable to identity theft and unwanted profiling. New rules - open a new tab. came into effect in May, paving the way for all EU citizens and residents to have a personal EU Digital Identity Wallet - open a new tab. by 2026. This will make everyday tasks easier and more secure. Users will be able to prove their identity securely, exchange digital documents, such as medical prescriptions, and make payments – all through a single app. Users will retain full control over their personal data.

The EU is currently preparing legal guidelines to ensure that the wallets meet the highest security standards and work seamlessly across the EU. In November, five implementing regulations - open a new tab. were adopted that set out rules for the core functions and certification of wallets.

The EU’s current paper-based legal system makes processing cross-border matters complicated and costly. To solve this problem, an online system - open a new tab. for managing legal matters will be introduced in all Member States. Whether in relation to inheritances or business contracts, people and businesses will be able to submit documents, communicate with courts, attend hearings and pay fees – all electronically.

Thanks to the EU-wide data-sharing system - open a new tab., it is now easier for citizens to study, move, work, retire or do business across the EU. Authorities in different Member States can share documents with each other at the citizen’s request, so they no longer have to provide the same information multiple times. This system will be integrated into the Single Digital Gateway, which connects national portals to provide information, online services and support to citizens and businesses in all Member States. In 2024, it became possible for Member States to provide up-to-date and reliable information on national authorisation procedures for net-zero industrial projects on the Your Europe - open a new tab. portal, to help companies save time when applying for permits.

Digital skills

To access online public services, study, work, communicate and find reliable information, people in the EU need to be digitally literate. Only 56 % - open a new tab. of people in the EU aged 16 to 74 have at least basic digital skills.

To improve this, the EU has set the goals of 80 % of adults being able to use technology for everyday tasks and 20 million people being employed in technology by 2030, with a focus on bringing more women into the field. The new Women TechEU - open a new tab. initiative is key to this endeavour. It offers women who lead technology start-up companies mentoring, coaching and financial support to help grow their businesses.

The European Common Data Space for Skills, launched in 2024, will enable the sharing of and access to skills-related data. The data can be used for a range of purposes, such as analysing trends, devising strategies and developing new applications, while prioritising ethics, diversity and data protection.

Space policy drives innovation, enhances security and fuels economic growth across multiple sectors. Recognising these far-reaching benefits, the EU rolled out new programmes and expanded existing ones in 2024.

Crucial to this effort was the establishment of the EU Space Information Sharing and Analysis Centre - open a new tab., a hub where experts from government and industry can collaborate on space security matters (see also Chapter 7). A detailed strategy for aerospace companies - open a new tab. was also published, outlining steps for a greener and more technologically advanced industry.

Though satellites orbit far above, their impact is closer than we think. From the smartphones in our pockets to the planes in the sky, these orbiting sentinels keep our world connected and moving forward.

IRIS² - open a new tab. (Infrastructure for Resilience, Interconnectivity and Security by Satellite), the EU’s secure satellite network, offers secure communication for tasks such as border control and crisis management, while also working to provide high-speed internet to remote areas and enhance Europe’s digital security.