Regional Policy in EuropeSevilla 17.12.2013

“Regional Digital Agendas"

Miguel Gonzalez-SanchoEuropean CommissionDG Communications Networks, Content and Technology

Overview

• Digital Agenda and scoreboard

• Broadband

• Cohesion policy and ICT

• Jobs & skills; Horizon 2020; conclusions

Political context: EU2020 to DAE

Digital technology matters for Growth & jobs…

Europe 2020: 7 flagships

o Digital Agenda for Europeo Youth on the move o Innovation Union o Industrial policy for globalisation erao New skills for jobs o EU Platform against poverty o Resource efficient Europe

Digital Agenda logic: networks, services, demand…

Interoperability & standards (+ cloud computing, after DAE review)

A vibrant digital single market

Trust & Security

Research & innovation

Using ICT to help society

Fast & ultra-fast Internet access

Digital literacy, skills & inclusion

100 actions (+ 32 after review), targets

Digital Agenda governance

Going Local 2013 DAE High Level Group

Acciones de la Agenda Digital, situación el 17.12.2013

• Total acciones: 101 (DAE 2010) + 30 (revisión 2010) = 131

• Acciones concluidas: 64 (DAE 2010) + 14 (revisión 2010) = 78

• Acciones conformes al calendario previsto: 27 (DAE 2010) + 16 (revisión 2010) = 43

• Acciones atrasadas: 7 (DAE 2010) + 1 (revisión 2010) = 8

Details on each action (update 12.06.2013) available at: https://ec.europa.eu/digital-agenda/sites/digital-agenda/files/130606%20DAE%20actions%20progress%20incl%20review%20FINAL.doc%5B1%5D.pdf

DAE – Objetivos clave1. Objetivos de banda ancha:•Banda ancha de base en 2013 para 100 % de ciudadanos de la UE. •Banda ancha rápida (> 30 Mbps) en 2020 para 100 % de ciudadanos de la UE. •Banda ancha ultra-rápida (> 100 Mbps) en 2020 para 50 % de hogares europeos.

2. Mercado único digital:•En 2015, 50 % de la población debe hacer compras en línea. •En 2015, 20 % de la población debe hacer compras en línea transfronterizas. •En 2015, 33 % de las PME deben hacer compras/ ventas en línea. •En 2015, tarifas de roaming casi igual a tarifas de comunicaciones nacionales

3. Inclusión digital:•Aumento del uso regular de Internet de 60 % a 75 % en 2015 y de 41 % a 60 % para GRUPOS desfavorecidos. •Hasta 2015, reducción del porcentaje de la población que nunca ha usado Internet a la mitad (al 15 %)

4. Servicios públicos:•En 2015: 50 % de los ciudadanos deben recurrir a administración pública en línea e mas de la mitad rellenar y enviar formularios. •En 2015, deben estar disponibles en línea todos los servicios públicos esenciales transfronterizos incluidos en la lista a aprobar por los Estados Miembros para el 2011.

5. Investigación e innovación:•Duplicar la inversión pública, hasta alcanzar 11.000M€.

6. Economía con baja emisión de carbono :•Promocionar la iluminación de bajo consumo: en 2020, reducción global como mínimo del 20 % del consumo de energía en alumbrado.

8To find out more visit www.ec.europa.eu/digital-agenda/en/scoreboardhttps://ec.europa.eu/digital-agenda/en/scoreboard/portugal

Scoreboard 2013

Standard fixed broadband* availability

Basic broadband for all by 2013

adding wireless, EU coverage is 99.97%

*xDSL, Cable, FTTP and WiMax; Source: Point Topic

9

NGA* availability (54% of EU homes)

At least 30 Mbps for all by 2020

But only 12% of EU rural areas are covered

* Next Generation Access (NGA): VDSL, Cable Docsis 3.0 and FTTP; Source: Point Topic10

Fixed broadband lines penetration in the EU 28.8% (lines as a % of population) (equivalent to 72.5% of EU homes subscribing to broadband)

Fixed broadband take-up

11

Source: Communications Committee

14.8% of EU fixed broadband subscriptions are at least 30 Mbps and 3.4 % at least 100 Mbps

Fixed broadband lines by speed

Source: Communications Committee12

2% of Europeans have never used the Internet, 70% are regular Internet users (at least once a week) (2012)

13

Source: Eurostat

Citizens engaging in eCommerce (domestic & cross border)(% of all citizens, 2012)

14

Source: Eurostat

eCommerce: SMEs selling online(% of all SMEs, 2012)

15

Source: Eurostat

•Electronic interaction by citizens* with public authorities (2012)

Source: Eurostat

*Citizens aged between 25 and 54

16

eGovernment

Source: Eurostat

Take-up of eGovernment by SMEs

17

eGovernment

While most large enterprises already use eGovernment services the take-up by SMEs is slow

Source: Eurostat

Levels of computer skills (2012)

18

Moreover: in 2011, only 53% of European labour force judged their computer or Internet skills to be sufficient if they were to look for a job or change job within a year (Eurostat).

Source: Eurostat

19

Difficulties in recruiting ICT professionals3% of EU Enterprises that recruited ICT specialists, had difficulties in filling IT vacancies

Source: Eurostat

Overview

• Digital Agenda and scoreboard

• Broadband

• Cohesion policy and ICT

• Jobs & skills; Horizon 2020; conclusions

Broadband drives competiveness

Correlation Fixed Broadband Penetration and Competitiveness

4

4.2

4.4

4.6

4.8

5

5.2

5.4

5.6

5.8

0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45

Fixed broadband lines per 100 population

WE

F's

Glo

bal

Co

mp

etit

ive

Ind

ex s

core

DenmarkNetherlands

KoreaLuxembourg

Sweden

Germany

FranceBelgium

UK

Finland

Malta

USJapan

Austria

Estonia

Ireland

Slovenia

Cyprus

Spain

Italy

Czech Rep.

Hungary

LithuaniaPortugal

LatviaSlovakia

Poland

Bulgaria

Romania

"An increase in the broadband penetration rate by 10 percentage points raises annual growth in per-capita GDP by 0.9 to 1.5 percentage points"

(Czernich et al. - CESIFO WORKING PAPER NO. 2861, Ifo Institute for Economic Research, 2009)

Map of NGA broadband coverage (2012)

EU broadband policy – key areas

23

Financing and fundingFinancing

and fundingMarket

frameworkMarket

framework

• Cost reduction initiative

• eComms regulation, e. g. Recommendation on non-discrimination and costing methodologies

• Demand Stimulation

• Single EU authorisation

• European inputs: Spectrum and access products

• Single consumer space: Net neutrality, harmonised end user rights, roaming

• European Structural and Investment Funds (ESIF)

• Connecting Europe Facility (CEF)

• Broadband state aid guidelines

Single market for eComms

Single market for eComms

Increased use of passive infrastructures suitable for high speed

internet network rollout

Increased cooperation in civil engineering works

Streamlined permit granting procedures

Increased number of buildings ready for high speed internet access

Investment costs are expected to be reduced

by 20% to 30%

potential savings up to 60 bn EUR across the EU

Regulation on measures to reduce the cost of deploying high-speed electronic communications networks

Cost reduction measures

24

• Proposal adopted by the College on 26 March 2013

• Adoption envisaged by Q2 of 2014

Connected continent proposal

EU financing for broadband

26

• European Structural and Investment Funds (ERDF and EARDF): grants and financial instruments

• Connecting Europe Facility (CEF): Some complementary EU support by means of financial instruments

• Currently project bonds pilot – open for project proposals

• Possibly greater EIB lending activity in ICT/broadband following capital increase

EU financing

Overview

• Digital Agenda and scoreboard

• Broadband

• Cohesion policy and ICT

• Jobs & skills; Horizon 2020; conclusions

ICT : not just a "sector" (telecom)> enabler for all socio-economic sectors

Broadband : from "nice-to-have" to "must-have" > pre-condition for growth and productivity

ICT : no longer "hardware v.s. software" > cloud computing, mobility and ubiquity

Convergence of ever faster networks withever smarter devices and ever richer contents

28

ICT and the Information society - A vision of Convergence

Funds allocated to ICTs in 2007-13: •over EUR 15 billion or 4.4% of the total cohesion policy budget. •Shift in the investment priorities from infrastructure to support for content development, both in the public sector (eHealth, eGovernment, etc.) and for SMEs (eLearning, eBusiness, etc.)

Basics on current Cohesion Policy

Cohesion Policy

ICT uptake is not easy everywhere!

ICT uptake is not easy everywhere!

Absorption rate as of 2012

72.9% 86.9% 47.5% 90.6% 42.9% 71.3% 78.4%

Telephone infrastructures

(including broadband networks)

Information and communication technologies

(...)

Information and communication technologies (TEN-ICT)

Services and applications for

citizens (e-health, e-

government, e-learning, e-

inclusion, etc.)

Services and applications for

SMEs (e-commerce,

education and training,

networking, etc.)

Other measures for improving access

to and efficient use of ICT by SMEs

ICTAverage

10 11 12 13 14 15

30

Eu

rop

e 2

02

0E

uro

pe 2

02

0in

clu

sive

sust

ain

ab

lesm

art

Thematic objectivesThematic objectives1. Research and innovation2. Information and Communication Technologies3. Competitiveness of Small and Medium-Sized

Enterprises (SME)4. Shift to a low-carbon economy5. Climate change adaptation and risk management and

prevention6. Environmental protection and resource efficiency7. Sustainable transport and disposal of congestion on major

network infrastructure8. Employment and support for labour mobility9. Social inclusion and poverty reduction10. Education, skills and lifelong learning11. Increased institutional capacity and effectiveness of public

administration

Thematic concentration in Cohesion Policy

Innovation

SME competitiveness

ICT

Human CapitalSkills

Mobility

Public sectorInnovation+admin. capacity

Eco-innovation

Broadband

E-commerce

E-government

R&I infrastructures

E-skills

Entrepreneurship

skills

Researchers

New business

models

Energy

Public procurement

of innovative

solutions

Smart Grids

Open Data

Less developed regionsDeveloped regions and

transition regions

60% 20%

6%

44%

Flexibility (different regions present different needs)Special arrangements for the previously convergence regions

Research and Innovation Energy efficiency and renewable energy

SMEs competitiveness + ICT access, quality and use

Transition regions: 60 % concentration (incl. 15% for energy/renewables)

Concentration on "two or

more of the thematic

objectives 1, 2, 3 and 4"

Thematic concentration of the ERDF

34

General regulation adopted

Partnership Agreement Submitted (MS)

Max 4 months

All OPs incl. Ex-ante eval. (except ETC) (MS)

Partnership Agreement Adoption

Max 1 month

OP Adoption (EC)

ETC OPs (MS)Observations by EC

ETC OP Adoption (EC)

Observations by EC

Partnership Agreement Country / region specific

Operational programmes

European Territorial Cooperation ("INTERREG") programmes

Observations by EC

Max 3 monthsMax 3 months

Max 3 months

Max 3 months

Max 9 months

Max 3 months

Max 3 months

Calendar for partnership agreements & OPs

RISRIS33

2nd half

of 2013

Is already on-going

on an informal basis …

Ex-ante conditionalities

Thematic Objectives

Cohesion Policy

N°1 Research and innovation

N°2 - ICT use and quality

- ICT access

All other Thematic Objectives

Next Generation Network (NGN) Plan

Vision of CONVERGENCE

"Digital Growth" Strategic policy framework:

- R&I Smart Specialisation Strategy (RIS3)

and/or

- National/Regional Digital Agenda

Corresponding ex-ante conditionalities

Ex-ante conditionality

Thematic Objective 2Thematic Objective 2:: Enhancing access to + use and quality of, information and communication technologies

Investment priorities under TO 2:

a) diffusion of broadband and high speed networks, supporting adoption of emerging technologies and networks for the digital economy

b) development of ICT products and services, electronic commerce and increased demand for ICT

c) strengthening the application of ICT for eGovernment, eLearning, eInclusion and eHealth

Ex ante conditionalities:

Next Generation Access

Plan

Strategic policy framework for digital growth (also in RIS3)

A Plan based on Economic Analysis

• Explicit methodology and data sources including involved stakeholders

• Existing & planned infrastructures- Map on two dimensions : coverage/access and

take-up/subscription- Market failures in the socio-economic context

(topography, pop. density, demand factors – e.g. affordability, education, etc.)

Criteria for assessing the Digital Growth Strategies

A SWOT analysis (or similar) consistent with Digital Agenda

Digital Agenda Toolbox• http://s3platform.jrc.ec.europa.eu/digital-agenda

Digital Agenda Scoreboard Indicators•http://ec.europa.eu/digital-agenda/en/create-graphs

•http://digital-agenda-data.eu/datasets/digital_agenda_scoreboard_key_indicators/indicators

Criteria for assessing the Digital Growth Strategies

Ex-ante conditionalities

Ex ante conditionality Criteria for fulfilment

2.2. Next Generation Network (NGN) Infrastructure:

The existence of national and/or regional NGN Plans which take account of regional actions in order to reach the Union high-speed Internet access targets and promote territorial cohesion, focusing on areas where the market fails to provide an open infrastructure at an affordable cost and of a quality in line with the EU competition and State aid rules, and to provide accessible services to vulnerable groups.

A national or regional NGN Plan is in place that contains:

– a plan of infrastructure investments based on an economic analysis taking account of existing private and public infrastructures and planned investments;

– sustainable investment models that enhance competition and provide access to open, affordable, quality and future proof infrastructure and services;

– measures to stimulate private investment.

Ex-ante conditionality N°2(2) for ICT infrastructure

Modifications by:

Council + EP

A Plan that is operational

Target & Indicators – benchmarking with the Digital Agenda Scoreboard

• http://ec.europa.eu/digital-agenda/en/create-graphs• http://digital-agenda-data.eu/datasets/digital_agenda_scoreboard_key_indicators/indicators

Available budgetary resources •Public funding at EU, national, regional levels•Other sources : private, banks

List of planned investments •Objectives, estimated cost, coverage•Periodically up-dated

Criteria for assessing the NGN Plans

A Plan of sustainable models

• Envisaged investment models- Broadband investment Guide - Use of grants, financial instruments ?

• Regulatory measures to stimulate private investment- Cost-reduction measures- Radio spectrum

Criteria for assessing the NGN Plans

Identifying the priorities & capacity

Priorities and budgetisation•available budgetary resources for ICT interventions •sources of finance at EU, national and other sources

Administrative Capacity•Self analysis: intermediate bodies and beneficiaries •Remedial actions

Criteria for assessing the NGN Plans

Overview

• Digital Agenda and scoreboard

• Broadband

• Cohesion policy and ICT

• Jobs & skills; Horizon 2020; conclusions

Grand Coalition 5 Policy Clusters ICT TRAINING:

Online ICT learning platforms Smart grid training, etc.

NEW LEARNING: Industry/education provider collabor. MOOC for secondary teachers

CERTIFICATION: Support roll-out of common eCompetences framework

MOBILITY: Launch mobility assistance services

AWARENESS RAISING: GetOnline Week

Creating Industrial Leadership and Competitive Frameworks

− Leadership in enabling and industrial technologies

−ICT−Nanotech., Materials, Manuf. and

Processing −Biotechnology−Space

− Access to risk finance − Innovation in SMEs

Excellence in the Science Base− Frontier research (ERC)− Future and Emerging Technologies (FET)− Skills and career development (Marie Curie)− Research infrastructures

Shared objectives and principles

Common rules, toolkit of funding schemes

Europe 2020 priorities

Simplified access Dissemination & knowledge tranfer

Tackling Societal Challenges− Health, demographic change and wellbeing− Food security, sustainable agriculture and

the bio-based economy− Secure, clean and efficient energy− Smart, green and integrated transport− Climate action, resource efficiency and raw

materials− Inclusive, innovative and reflective

societies− Secure Societies

EITJRC

ICT

ICTICTICTICT

ICT

ICTICT

ICT

European Council of 24-25.10.2013; digital economy and innovation

• Complete Digital Single Market

• Access to and portability of content and data across the single market

• EC legal proposals on telecoms: connected continent; broadband engineering costs

• EC legal proposals on trust and security: e-ID; network information security; e-invoicing/ payments; data protection; web accessibility

• Data, cloud, open government

• Taxation of the digital economy

• Skills

• Research and innovation

Conclusions

• Digitally-driven transformation is unstoppable; Europe cannot stay behind

• Need for public sector strategies; European/ national/ local digital agendas

• Remove barriers in the European space; towards a Digital Single Market

• Build European capacity: networks, data/ cloud, skills, R&D&I, industrial base…

• New EU legislature will start in 2014; in any case, the future is digital…

blogs.ec.europa.eu/digital-agenda

@DigitalAgendaEU

DigitalAgenda

ec.europa.eu/digital-agenda

Gracias