A Europe fit for the digital age

Question 1

Priotities in political guidelines

Answer 1

1) achieve joint standards in 5G networks
2) achieve technological souvereignty in some critical technology areas
3) invest in next-generation yperscalers: blockchain, high-performance computing, algorithms and tolls to allow data sharing and data usage.
4) Jointly define standards for new generation of tech that will be the norm
5) In fist 100 days, put forward legislation for a coordinated European approach on the human and ethical implications of Artificial
Intelligence.
6) Digital Services Act will upgrade our liability and safety rules for digital platforms, services and products, and complete our Digital Single Market.
7) Establish joint Cyber Unit to better protect EU against cyber crime
8) Drive full digitalisaion of the Commission

**Empowering people through education and skills **: Make European Education Area reality by 2025 and update Digital Education Action Plan. Also support idea to triple Eramus+ budget for next MFF

Question 2

Aim of this priority:

Answer 2

The EU’s digital strategy will empower people with a new generation of technologies.

The EU’s digital strategy aims to make this transformation work for people and businesses, while helping to achieve its target of a climate-neutral Europe by 2050.

Main focus: Commission President von der Leyen stressed the need for Europe to lead the transition to a healthy planet and a new digital world - the twin transition

Question 3

Interesting figures on why need for digital agenda

Answer 3

As of 2019, there were 7.8 million ICT specialists with a prior annual growth rate of 4.2%.

If this trend continues, the EU will be far below the projected need of 20 million experts e.g. for key areas, such as cybersecurity or data analysis.

More than 70% of businesses report a lack of staff with adequate digital skills as an obstacle to investment. There is also a severe gender imbalance, with only one in six ICT specialists and one in three STEM graduates being women

Question 3

Communication on shaping Europe’s digital future (3 pillars and external dimension)

Answer 3

Outlines European approach b**ased on 3 main pillars **to ensure that Europe seizes the opportunity and gives its citizens, businesses and governments control over the digital transformation.

1) Technology that work for the people

• Invest in digital competences for all Europeans;
• Protect people from cyber threats (hacking, ransomware, identity theft);
• Ensure Artificial Intelligence is developed in ways that respect people’s rights and earn their trust;
• Accelerate the roll-out of ultra-fast broadband for homes, schools and hospitals throughout the EU;
• Expand Europe’s super-computing capacity to develop innovative solutions for medicine, transport and the environment.
  Initiatives: White paper on Artificial Intelligence, Action Plan on 5G and 6G, Joint Cybersecurity Unit, Digital Education Action Plan. Reinforced Skills Agenda and youth guarantee focused on digital topics. EU governments interoperability strategy

2) A fair and competitive digital economy

• Enable a vibrant community of innovative and fast-growing start-ups and SMEs to access finance and to expand;
• Propose a Digital Services Act to strengthen the responsibility of online platforms and clarify rules for online services;
• Make sure that EU rules are fit for purpose in the digital economy;
• Ensure that all companies compete in Europe on fair terms;
• Increase access to high-quality data while ensuring that personal and sensitive data is safeguarded.
  Initiatives: European Data Strategy, Fitness of EU Competition Rules, ex ante rules: Digital Services Act, Industrial Strategy, Business Taxation in 21st Century, Consumer Agenda, Digital finance package, EU payments market creation

3) An open, democratic and sustainable society
A trustworthy environment in which citizens are empowered in how they act and interact, and of the data they provide both online and offline.
* Use technology to help Europe become climate-neutral by 2050;
* Reduce the digital sector’s carbon emissions;
* Empower citizens with better control and protection of their data;
* a European health data space to foster targeted research, diagnosis and treatment;
* Fight disinformation online and foster diverse and reliable media content.
Initiatives: Media and Audiovisual action plan, European democracy action plan, circular electronics initiatives, deepen internal market for services through DSA, Revision of eIDAS regulation (e-identity), destination earth programme, electronic health records aka. European Health data space

The international dimension
For Europe to truly influence the way in which the digital solutions are developed and used on a global scale, it needs to be a strong, independent and purposeful digital player in its own right.
* aim to become a global role model for the digital economy;
* support developing economies in going digital;
* develop digital standards and promote them internationally
Initiatives: Global Digital Cooperation Strategy, White paper on foreign subsidies instrument, strategy for standardisation, mapping of oppournties and action plan to promot European appraoch in mulitlateral fora

Question 4

Europe’s digital decade

Answer 4

Portfolio: Shared between Vestager and Breton

Is the policy programme that will guide Europe’s digital transformation until 2030. The European vision for 2030 is a digital society where no-one is left behind.

Leading up to 2030, EU Member States, in collaboration with the European Parliament, the Council of the EU and the Commission, will shape their digital policies to achieve targets in these four areas to:

• Improve citizens’ basic and advanced digital skills;
• Improve the take-up of new technologies in EU businesses, such as artificial intelligence, data and cloud;
• Further advance the EU’s connectivity, computing and data infrastructure;
• Make public services and administration available online.

The Digital Decade targets are measurable goals for each of the four areas: connectivity, digital skills, digital business and digital public services.
* The Digital Decade policy programme will allow the EU and the Member States to work together to reach the Digital Decade targets and its objectives. It lays down a mechanism to monitor progress towards 2030.
* Every year, the Commission will publish a report to take stock of the progress made.
* The multi-country projects will allow Member States to pool investments and launch large-scale, cross-border projects.
* The Digital Decade rights and principles reflect EU values, which have to be respected in the digital world.

Question 5

Digital Decade governance

Answer 5

Digital compass: Governance structure with annual reporting and follow up, based on 3 pillars

1) Achieving concrete obbectives under four cardinal points: monitored by quantitative KPIs, reporting on actions undertaken (annual digital decade report), and followed-up with rcommendations
2) Shaping and launching multi-country projects
3) Monitoring digital principles: reporting and scoreboards, annual eurobarometer

Question 6

European charter of digital rights (6 chapters)

Answer 6

Underpinning Digital Decade programme, and signed by all 3 legislators in 2022. The draft declaration covers key rights and principles for the digital transformation, and will complement existing rights, such as those rooted in the Charter of Fundamental Rights of the EU, and data protection and privacy legislation.

With the Declaration on digital rights and principles, the EU wants to secure European values by:

• Putting people at the centre of the digital transformation;
• Supporting solidarity and inclusion through connectivity, digital education, training and skills, fair and just working conditions and access to digital public services;
• Restating the importance of freedom of choice and a fair digital environment;
• Fostering participation in the digital public space;
• Increasing safety, security and empowerment in the digital environment,in particular for young people;
• Promoting sustainability.

Question 7

Digital Decade target

Answer 7

The Digital Decade programme specifies key quantified targets

1) A digitally skilled population and highly skilled digital professionals
* ICT Specialists: 20 million + Gender convergence (increasing number of women as ICT specialists)
* Basic Digital Skills: min 80% of population (from European Pillar of Social Rights)

2) Secure and performant sustainable digital infrastructures
* Connectivity: Gigabit network for every household, 5G everywhere
* Cutting edge Semiconductors: double EU share in global production to 20% of world value
* Data - Edge & Cloud: 10,000 climate-neutral highly secure edge nodes, distributed in a way that will guarantee access to data services with low latency (few milliseconds) wherever businesses are located
* Computing: first computer with quantum acceleration by 2025, so that EU can be at cutting edge by 2030

3) Digital transformation of businesses
* Tech up-take: 75% of EU companies using Cloud/AI/Big Data
* Innovators: grow scale-ups & finance to double EU Unicorns
* Late adopters: more than 90% of SMEs reach at least a basic level of digital intensity
4) Digitalisation of public services
* Key Public Services: 100% online
* e-Health: 100% of citizens having access to medical records
* Digital Identity: 80% of citizens using digital ID

Question 8

Multi-country projects

Answer 8

-To reach the digital targets and objectives, the European Commission will accelerate and facilitate the launch of multi-country projects, large-scale projects that no single Member State could develop on its own.

• These projects could
• combine investments from the EU budget, including from the Recovery and Resilience Facility, from Member States, and the private sector
• address gaps in the identified critical capacities of the EU
• support an interconnected, interoperable and secure Digital Single Market
  -20% of the Recovery and Resilience Facility should be dedicated by each EU country to the digital transition – 25 plans adopted by the Council so far dedicated exceed this target to 26%.
  Examples: data infrastructure, low-power processors, 5G communication, high-performance computing, secure quantum communication, public administration, blockchain, digital innovation hubs and digital skills.

Question 9

Digital Decade policy programme (Governance)

Answer 9

The Digital Decade policy programme 2030 sets up an annual cooperation cycle to achieve the common objectives and targets. This governance framework is based on an annual cooperation mechanism involving the Commission and Member States.

The cooperation mechanism would consist of
* a structured, transparent and shared monitoring system based on the Digital Economy and Society Index (DESI) to measure progress towards each of the 2030 targets
* an annual ‘Report on the state of the Digital Decade’ in which the Commission evaluates progress and provides recommendations for actions
* every two years, adjusted Digital decade strategic roadmaps in which the Member States outline adopted or planned actions to reach the 2030 targets
* a yearly mechanism to support the implementation of multi-country projects

The Commission shall review the targets by 2026 to take stock of technological, economic and societal developments.

Question 10

European Approach to Artificial Intelligence

Answer 10

IThe European approach to artificial intelligence (AI) will help build a resilient Europe for the Digital Decade where people and businesses can enjoy the benefits of AI. It focuses on 2 areas: excellence in AI and trustworthy AI.

The Commission published its AI package in April 2021, proposing new rules and actions to turn Europe into the global hub for AI. This package consisted of:
* a Communication on Fostering a European Approach to AI;
* the Coordinated Plan with Member States: 2021 update;
* a proposal for an AI Regulation laying down harmonised rules for the EU (Artificial Intelligence Act).

Building trustworthy AI will create a safe and innovation-friendly environment for users, developers and deployers.

The Commission has proposed 3 inter-related legal initiatives that will contribute to building trustworthy AI:

a European legal framework for AI to address fundamental rights and safety risks specific to the AI systems;
a civil liability framework - adapting liability rules to the digital age and AI;
a revision of sectoral safety legislation (e.g. Machinery Regulation, General Product Safety Directive).

Fostering excellence in AI will strengthen Europe’s potential to compete globally.

The EU will achieve this by:

• enabling the development and uptake of AI in the EU;
• making the EU the place where AI thrives from the lab to the market;
• ensuring that AI works for people and is a force for good in society;
• building strategic leadership in high-impact sectors.

Through the Horizon Europe and Digital Europe programmes, the Commission plans to invest €1 billion per year in AI. It will mobilise additional investments from the private sector and the Member States in order to reach an annual investment volume of €20 billion over the course of the digital decade.

The Recovery and Resilience Facility makes €134 billion available for digital. This will be a game-changer, allowing Europe to amplify its ambitions and become a global leader in developing cutting-edge, trustworthy AI.

In addition, acess to high quality data is an essential factor in building high performance, robust AI systems. Initiatives such as the** EU Cybersecurity Strategy, the Digital Services Act and the Digital Markets Act, and the Data Governance Act provide** the right infrastructure for building such systems.

Question 11

Artificial Intelligence Act

Answer 11

Aim: to address the risks generated by specific uses of AI through a set of complementary, proportionate and flexible rules.

The AI act is the worlds’ first comprehensive AI law. Parliament adopted position in June 2023, Council its general appraoch, now trilogue beginning. Agreement to be ready by end of 2023.

It aims to address risks of specific uses of AI, categorising them into 4 different levels:
a) unacceptable risk, which will be banned form use in EU. These include cognitive behavioural manipulation of people, social scoring: classifying people based on behaviour, socio-economic status or personal characteristics; Real-time and remote biometric identification systems, such as facial recognition (the last introduced by the European Parliament)
b) high risk, carefully assessed (i.e. law enforcement, critical infrastructure, etc). AI systems that negatively affect safety or fundamental rights will be considered high risk and will be divided into two categories:
1) AI systems that are used in products falling under the EU’s product safety legislation. This includes toys, aviation, cars, medical devices and lifts.
2) AI systems falling into eight specific areas that will have to be registered in an EU database:
c) limited risk, (i.e. chatbots) minimal transparency obligations: The user can then decide to continue or step back from using the application.
d)**Generative AI
**
Generative AI, like ChatGPT, would have to comply with transparency requirements:

Disclosing that the content was generated by AI
Designing the model to prevent it from generating illegal content
Publishing summaries of copyrighted data used for training
E) minimal risk, free use

The Artificial Intelligence Act proposes steep non-compliance penalties. For companies, fines can reach up to €30 million or 6% of global income. Submitting false or misleading documentation to regulators can result in fines, too.

Question 11

European Data Act

Answer 11

Proposed in 2022
The Data Act addresses the legal, economic and technical issues that lead to data being under-used: 80 percent of machine or device-generated data is never used.

The question that the Data Act wants to solve is: Who owns the data generated by internet-connected devices? It aims to regulate who can access and share data generated by connected machines and devices, both on the work floor and at home.

The new rules will make more data available for reuse and are expected to create €270 billion of additional GDP by 2028. Goal is to not miss the next big data wave - the use of non-personal data.

It will complemetn GDPR

EP and Council reached political agreement in June 2023.

The Data Act aims to boost the EU’s data economy by unlocking industrial data, optimising its accessibility and use, and fostering a competitive and reliable European cloud market. It seeks to ensure that the benefits of the digital revolution are shared by everyone.

Benefits of the Data Act:
* Cheaper prices for aftermarket services and reparation of their connected objects.
* New opportunities to use services relying on access to this data. (e.g. farmer, smart irrigation)
* Better access to data collected or produced by a device.
- Provide data to SMEs, interoperability, fairness test, B2B and B2C contracts, cloud switching

Main elements of proposal
* The Data Act aims to boost the EU’s data economy by unlocking industrial data, optimising its accessibility and use, and fostering a competitive and reliable European cloud market. It seeks to ensure that the benefits of the digital revolution are shared by everyone.
* Measures to provide protection from unfair contractual terms that are unilaterally imposed.
* Mechanisms for public sector bodies to access and use data held by the private sector (e.g. in cases of emergency)
* New rules that grant customers the freedom to switch between various cloud data-processing service providers.
* Measures to promote the development of interoperability standards for data-sharing and data processing, in line with the EU Standardisation Strategy.

a chapter on automated “smart contracts” could impact the decentralized nature of the blockchain.

Question 12

Digital Services Act package

Answer 12

Contains DMA and DSA, proposed in 2020 and both published in OJ in October 2022.

The Digital Services Act (DSA) and the Digital Market Act (DMA) form a single set of rules that apply across the whole EU. They have two main goals:

• to create a safer digital space in which the fundamental rights of all users of digital services are protected;
• to establish a level playing field to foster innovation, growth, and competitiveness, both in the European Single Market and globally

The rules specified in the DSA primarily concern online intermediaries and platforms. For example, online marketplaces, social networks, content-sharing platforms, app stores, and online travel and accommodation platforms.

The Digital Markets Act includes rules that govern gatekeeper online platforms. Gatekeeper platforms are digital platforms with a systemic role in the internal market that function as bottlenecks between businesses and consumers for important digital services

Background: The EU’s legal framework for digital services had remained unchanged since the adoption of the e‑commerce directive in 2000, and was therefore acutely in need of an update, given the growth of digital platforms and new business models.

Question 13

Digital Services Act

Answer 13

DSA came into force on 25 August 2023. According to Renda from Bruegel, the DSA is “an important moment in the history of the Internet because, for the first time, the very well-established principle of basically no responsibility for online intermediaries, which has been one of the key tenets since the early stages of the World Wide Web, is being reversed,” he said.

The Digital Services Act (DSA) focuses on creating a** safer online environment for digital users** and companies, and on protecting fundamental rights in the digital space by establishing new rules on:
- countering illegal content online, including goods, services and information, in full respect of the Charter of Fundamental rights
- tackling societal risks online
- traceability of traders in online marketplaces
- transparency measures for online platforms
- enhanced supervision

It establishes a set of responsibilities and a clear accountability and transparency framework for providers of intermediary services, such as:
* online marketplaces
* social networks
* content-sharing platforms
* online travel and accommodation platforms

**Main obligations: **
- transparency, mechanisms for the removal of illegal content and for the effective protection of users’ fundamental rights online, including the freedom of speech.
- New rules to trace seller on online market place, to o after scammers more easuly and help build trust.
- Users will have new right: right to complain to the platform, seek out-of court settlement, complain to their national authority in their own language, or seek compension for breaches of the rules.

highlights
Strict rules for minors: Minors will no longer be able to be targeted by advertising, nor will ads be able to use sensitive data such as religion or sexual orientation.

Companies have obligations proportionate to the nature of their services and to their size and impact. This means that very large online platforms (VLOPs, with more than 45 million monthly active users in the EU) and very large online search engines (VLOSEs) are subject to more stringent requirements.

Commission will be the primary regulator for very large online platforms (reaching 45 million users), while other platforms will be under the supervision of Member States where they are established. The Commission will have enforcement powers similar to those it has under anti-trust proceedings

**In the context of the war in Ukraine **and the impact on the manipulation of online information, a new article has been added to the text introducing a crisis response mechanism.

This mechanism will make it possible to analyse the impact of the activities of VLOPs and VLOSEs on the crisis in question and decide on measures to make sure that fundamental rights are respected.

Question 14

Digital Markets Act (overview)

Answer 14

DMA applies as of May 2023.

The Digital Markets Act (DMA) focuses on ensuring a level playing field for all digital companies, regardless of their size. The DMA aims to guarantee a competitive and fair digital sector by:

• banning unfair practices of online platforms holding the biggest share of the market
• giving the possibility for business users to offer consumers more choices
• providing better services and fairer prices for consumers
• imposing clear rights and obligations on large online platforms
• promoting innovation and a fairer online platform environment for technology start-ups

The DMA defines clear rules for big platforms. It aims to make sure that no large online platform acts as a ‘gatekeeper’, a private rule-maker in digital markets by controlling at least one so-called ‘core platform services’.

Core platform services include:
online intermediation services (i.e. marketplaces, app stores)
online search engines
social networking
cloud services
advertising services

To be considered a gatekeeper a platform must either have had an annual turnover of at least €7.5 billion within the European Union (EU) **in the past three years **or have a market valuation of at least €75 billion, and secondly it must have at least 45 million monthly end users and at least 10 000 business users established in the EU.

The platform must also control one or more core platform services in at least three member states.

Question 15

Digital markets Act (obligations and enforecemnt)

Answer 15

Gatekeepers will not be able to:

• rank their own products or services higher than those of others
• prevent developers from using third-party payment platforms for app sales  
• process users’ personal data for targeted advertising, unless consent is granted
• establish unfair conditions for business users
• pre-install certain software applications or prevent users from easily un-installing them
• restrict business users of platforms

Gatekeepers will have to:
* offer more choices, such as the choice of certain software on a user’s operating system
* ensure that unsubscribing from core platform services is as easy as subscribing
* provide information on the number of users that visit their platforms to determine whether the platform can be identified as a gatekeeper
* give business users access to their marketing or advertising performance data on the platform
* inform the European Commission of their acquisitions and mergers
* ensure that the basic functionalities of instant messaging services are interoperable, i.e. enable users to exchange messages, send voice messages or files

Fair competition of digital services is key to ensure that companies and consumers can all benefit in the same way from digital opportunities. This will also generate more innovation and boost consumer protection.

Enforcement
The European Commission is the sole enforcer of the regulation. An advisory committee and a high-level group will be set up to assist and facilitate the work of the European Commission.

When a large online company has been identified as a gatekeeper, it has to comply with the rules of the DMA **within six months. **

If a gatekeeper violates the rules laid down in the DMA, it risks a fine of up to 10% of its total worldwide turnover. For a repeat offence, a fine of up to 20% of its worldwide turnover may be imposed.

If a gatekeeper systematically fails to comply with the DMA, i.e. it violates the rules at least three times in eight years, the European Commission can open a market investigation and, if necessary, impose behavioural or structural remedies.

Question 16

Legal basis competition policy

Answer 16

Art. 3 TFEU – Exclusive Competence. Also Articles 101 to 109 TFEU. Articles 37, 106 and 345 TFEU for public undertakings and Articles 14, 59, 93, 106, 107, 108 and 114 TFEU for public services, services of general interest and services of general economic interest;

Question 18

Aim of competition policy

Answer 18

Competition policy encourages companies to offer consumers goods and services on the most favourable terms.

It encourages efficiency and innovation and reduces prices.

To be effective, competition requires companies to act independently of each other, and subject to the pressure exerted by their competitors.

Question 19

A competition policy fit for new challenges

Answer 19

2021

This unprecedented review of EU competition policies has the following objectives:
* Promoting the EU’s post pandemic recovery and creating a more resilient Single Market
* Fostering the implementation of the European Green Deal
* Accelerating the digital transition.

Question 20

Main actors of competition policy

Answer 20

• DG COMP
  o The European Commission, together with the national competition authorities, directly enforces EU competition rules, Articles 101-106 of the Treaty on the Functioning of the EU (TFEU),
• EVP Vestager: Cssr. For competition
• Hearing officers:
  o The Hearing Officer is responsible for organising and conducting oral hearings and acting as an independent arbiter when a dispute about the effective exercise of procedural rights between parties and DG Competition arises in antitrust and merger proceedings.
  o The Hearing Officers are not part of the Directorate-General for Competition (DG Competition). For administrative purposes, the Hearing Officers are attached to the Competition Commissioner.
• European competition network (ECN): The European Commission and the national competition authorities in all EU Member States cooperate with each other through the European Competition Network (ECN).
• Chief Competition Economist: assists in evaluating the economic impact of DG COMP’s actions

Question 21

Foreign Subsidies Regulation

Answer 21

Entered into force on January 2023

Background: In recent years, foreign subsidies appear to have distorted the EU’s internal market, including by providing their recipients with an unfair advantage to acquire companies or obtain public procurement contracts in the EU to the detriment of fair competition.

Subsidies granted by non-EU governments go currently unchecked, while subsidies granted by Member States are subject to close scrutiny under EU State aid rules.

**It proposes new tools ** to effectively tackle foreign subsidies that cause distortions and undermine the level playing field in the internal market:
* A notification-based tool to investigate concentrations involving a financial contribution by a non-EU government
* A notification-based tool to investigate bids in public procurements involving a financial contribution by a non-EU government
* A general tool to investigate all other market situations

Question 22

Single Market Programme

Answer 22

Adopted in 2021

The single Market Programme is the EU funding programme to help the single market reach its full potential and ensure Europe’s recovery from the COVID-19 pandemic.

The SMP includes a budget (EUR 4.2 billion in current MFF) dedicated to actions in support of competition policy, and its enforcement.

This allows EC to invest in:
* effective and up-to-date enforcement of EU competition policy and policy actions;
* csupport for SMEs
- food safety
- consumer protection

Question 23

EU competiteveness beyond 2030 communication

Answer 23

The communication looks at the single market after 30 years of its existence. It stresses the following needs :

• Enforcing existing Single Market rules, supported by benchmarks to address the deficits related to transposition and implementation of EU rules;
• Removing Member State-level barriers, in particular barriers to the cross-border provision of services, and in the industrial ecosystems with the greatest economic integration potential (retail, construction, tourism, business services and renewable energy sector).
• To continue to foster the green and digital dimensions of the Single Market as a source of innovation, growth and competitiveness

The Commission will continue to monitor the progress of the Single Market with tools like the Single Market and Competitiveness Scoreboard and Annual Single Market Report.

To foster competitiveness, the Commission proposes to work along nine mutually reinforcing drivers to ensure:
* A functioning Single Market by broadening and deepening it and fostering integration of services;
* Access to private capital and investment by deepening the Capital Markets Union and completing the Banking Union, as well as the development of EU tax and financial services regulatory frameworks supportive of businesses;
* Public investment and infrastructure by reforming the European economic governance framework;
* **Research and innovation **through tax incentives, public-private partnerships and large-scale projects to de-risk investments in innovation, especially in the key areas of clean technology, digital and biotechnology;
* Energy through fast roll-out of renewables, the digitalisation of energy systems and energy storage facilities;
* Circularity by fostering the transition towards a more circular economy in the EU;
* Digitalisation through broad-based take-up of digital tools across the economy and more support for leadership in key digital technologies such as Artificial Intelligence, Quantum Computing, microelectronics, web 4.0, virtual reality and digital twins, and cybersecurity;
* Education and skills by developing and recognising skills as the key to attractive, quality jobs, increasing the participation of women, the young and third country nationals in the labour market, and promoting vocational education and training;
* Trade and open strategic autonomy by continuing to open markets for EU companies through deepening ties with allies and trading partners, preserving fair trade principles and addressing risks in a targeted way.

Accompanying these nine drivers, as a second leg of action, the Commission will work actively towards a regulatory framework more suited for competitiveness and growth. Complementing the ‘one-in, one-out’ approach and the competitiveness check, this will include a methodology for assessing cumulative impact of policies and a more innovation-friendly approach to regulation.

In particular, there will be a new push for the rationalisation of reporting requirements across the EU’s green, digital and economic legislation, with first proposals by the autumn with the aim of a 25% reduction in burde

Question 24

Size of single market and contribution to GDP

Answer 24

ith 440 million citizens, 23 million businesses, 15% of global GDP, it is the world’s largest integrated single market area while remaining one of the most outward-oriented.

he Single Market is the EU’s key asset and driver of its competitiveness. For over 30 years, it has helped to improve the life of citizens, made business easier and brought substantial economic benefits by increasing European GDP by 9%

Question 25

Industrial policy legal basis

Answer 25

Portfolio of thierry Breton
Legal basis: Art. 173 TFEU , supporting competency. Ensure competitiveness of the industry

Aim: The EU’s industrial policy aims to make European industry more competitive so that it can maintain its role as a driver of sustainable growth and employment in Europe

Question 26

New Industrial Strategy

Answer 26

March 2020 The industrial strategy lays the foundations for a supporting the twin transition to a green and digital economy, make EU industry more competitive globally, and enhance Europe’s open strategic autonomy.

On 11 May 2021, the Commission updated the EU Industrial Strategy to ensure that its industrial ambition takes full account of the new circumstances following the COVID-19 crisis and helps to drive the transformation to a more sustainable, digital, resilient and globally competitive economy.

The 2020 Industrial Strategy included a list of actions to support the green and digital transitions of EU industry, many of which have already been adopted or launched

Focused on 5 pillars:
1)** Resilience of Single Market**
* Single Market Emergency Instrument: to provide a structural solution to ensure the availability and free movement of persons, goods and services in the context of possible future crises
* Deepening the Single Market: explore harmonisation of standards for key business services; as well as strengthening the digitalisation of market surveillance and other targeted measures for SMEs
* Monitoring the Single Market: an annual analysis of the state of the Single Market, including across 14 industrial ecosystems.

2) Strengthening the EU’s Open Strategic Autonomy
- For the EU, a major importer and exporter, openness to trade and investment is a strength and source of growth and resilience.
* Diversified international partnerships: to ensure that trade and investment continue to play a key role in building our economic resilience.
* Industrial Alliances can also be an appropriate tool, if they accelerate activities that would not develop otherwise, and where they help to attract private investors to discuss new business partnerships and models in a manner that is open, transparent and fully compliant with competition rules.
* Monitoring of Strategic dependencies (2021): publishing a first report analysing the EU’s strategic dependencies. The report identifies 137 products in sensitive ecosystems for which the EU is highly dependent on foreign sources. Mainly in health, intensive industries. In this, the role of digital technologies will be a priority for the future in active pharma ingredients, clouds, CRMs, cybersecurity etc.

3) Accelerating Twin Transition
- The 2020 Industrial Strategy included a list of actions to support the green and digital transitions of EU industry, many of which have already been adopted or launched.
- The Commissions main proposals include:
1) Transition pathways: Co-create jointly with industry and stakeholders, transition pathways to identify the actions needed to achieve the twin transitions, giving a better understanding of the scale, benefits and conditions required.
2) Multi-country projects: To support the recovery efforts and develop digital and green capacities, the Commission will support Member States in joint projects to maximise investments under the Recovery and Resilience Facility
3) Analysis of the steel sector: To ensure a clean and competitive steel industry, the Commission analyses and addresses challenges for this sector.

4) Horizon Europe partnerships: Bringing together private and public funding to finance research and innovation on low-carbon technology and processes.

5) Abundant, accessible and affordable decarbonised energy: The Commission will work with Member States to accelerate investments into renewables, grids and address barriers.

Question 27

Green Deal Industrial Plan

Answer 27

Background:Proposed in March 2023. The European Green Deal Industrial Plan was announced by President von der Leyen in her speech at to the World Economic Forum in Davos in January 2023.

It follows invitation by the European Council for the Commission to make proposals by the end of January 2023 to mobilise all relevant national and EU tools and improve framework conditions for investment, with a view to ensuring EU’s resilience and competitiveness.

Essentially, the plan aims to enhance Europe’s industry’s competitiveness and capacity to develop and manufacture the clean technologies that make this transition possible, whcih are interrelated aspects.

The plan is based on four pillars:

1) A predictable and simplified regulatory environment

Commission will propose a Net-Zero Industry Act , and Critical Raw Materials Act, and reform of the electricity market design.

2) Faster access to funding
The second pillar of the plan will speed up investment and financing for clean tech production in Europe. Under competition policy, the Commission aims to guarantee a level playing field within the Single Market while making it easier for the Member States to grant necessary aid to fast-track the green transition.

Commission will revise the General Block Exemption Regulation and amedn the the Temporary State aid Crisis and Transition Framework in light of the Green Deal

Commission will make it easier to use existing funds for cleantech. For the mid-term, the Commission intends to give a structural answer to the investment needs, by proposing a European Sovereignty Fund in the context of the review of the Multi-annual financial framework before summer 2023.

3) Enhancing skills
As between 35% and 40% of all jobs could be affected by the green transition, developing the skills needed for well-paid quality jobs will be a priority for the European Year of Skills, and the third pillar of the plan will focus on it.

To develop the skills for a people centred green transition the Commission will propose to establish Net-Zero Industry Academies to roll out up-skilling and re-skilling programmes in strategic industries.

It will also consider how to combine a ‘Skills-first’ approach with existing approaches based on qualifications, and how to facilitate access of third country nationals to EU labour markets in priority sectors, as well as measures to foster and align public and private funding for skills development.

4) Open trade for resilient supply chains
The fourth pillar will be about global cooperation and making trade work for the green transition, under the principles of fair competition and open trade.

The Commission will continue to develop the EU’s network of Free Trade Agreements and other forms of cooperation with partners to support the green transition.

It will also explore the creation of a Critical Raw Materials Club, to bring together raw material ‘consumers’ and resource-rich countries to ensure global security of supply through a competitive and diversified industrial base, and of Clean Tech/Net-Zero Industrial Partnerships.

The Commission will also protect the Single Market from unfair trade in the clean tech sector and will use its instruments to ensure that foreign subsidies do not distort competition in the Single Market, also in the clean-tech sector.

Question 28

Effect of COVID-19 on Industry

Answer 28

6.3% decline of EU economy

60% of SMEs reported a fall in turnover in 2020

24% fall in intra-EU trade in Q2 & Q3 2020

2.1.7% SME employment decrease in 2020 - 1.4 million jobs

45% of firms expected to reduce investment in 2021

Question 29

Outcome of strategic dependency analysis underpinning the Industrial Plan

Answer 29

137 products in sensitive ecosystems for which the EU is highly dependent on foreign suppliers, from a total of 5200 products analysed

These products represent 6% of the value of all imported products in Europe.

Over half of these dependencies originate in China, followed by Vietnam and Brazil.

34 products are more vulnerable, with low potential for diversification and substitution with EU production. They include various raw materials and chemicals used in energy-intensive industries and health.

These products represent 0.6% of the value of all imported products in Europe.

Question 30

Single market emergency instrument

Answer 30

Presented Sep 22. This crisis governance framework aims to preserve the free movement of goods, services and persons and the availability of essential goods and services in the event of future emergencies

The Single Market Emergency Instrument complements other EU legislative measures for crisis management like the Union Civil Protection Mechanism, as well as EU rules for specific sectors, supply chains or products like health, semiconductors or food security, which already foresee targeted crisis response measures..

Background: the COVID-19 pandemic has highlighted structural shortcomings hampering the EU’s ability to effectively respond to emergency situations in a coordinated manner. This regulation folllows calls from European Council conclusions to adress fragmentation of single market in emergency situations.

Main functions:
* Creating a crisis governance architecture for the Single Market: A new mechanism to monitor the Single Market, identify different levels of risk and coordinate an appropriate response comprising several stages - contingency, vigilance and emergency modes.
* Proposing new actions to address threats to the Single Market: In vigilance mode, the Member States in cooperation with the Commission would focus on monitoring supply chains of identified, strategically important goods and services as well as on building up strategic reserves in these areas
* Allowing last-resort measures in an emergency: Under extraordinary circumstances, and only when the emergency mode has already been activated, the Commission may also make use of tools which will require a separate activation step. In this case, the Commission may issue targeted information requests to economic operators, which can be made binding.

Question 31

European Chips Act

Answer 31

February 2022, adopted in July 2023

Goal: Chips are the engines of the digital transition, as they are used in different advance technologies. The EU objective is to decrease dependencies and become the leader of the chips industry of the future.

The European Chips Act will bolster Europe’s competitiveness and resilience in semiconductor technologies and applications and help achieve both the digital and green transition. It will do this by strengthening Europe’s technological leadership in the field.

Background:
1 trillion microchips were manufactured around the world in 2020.The findings of the Chips Survey, launched by the European Commission, highlighted that industry expects demand for chips to double by 2030

Currently, the EU’s share of the market is 10%. The bulk of microchip production is in Asia, which has exposed EU manufacturers to massive bottlenecks in 2020.
THe 2020 chips bottleneck resulted in:
* Higher prices
* Lengthier delivery for consumer electronics and life-saving equipment
* Car production decreased by 1/3 in some EU countries. Car-makers reported billions in losses as they had to stop production due to a chips shortage.

The fear is that chips will remain hostage to politics, as the cold war between China and the U.S. intensifies.

• **Objectives : **
  o Strengthen the EU research & tech leadership towards smaller and fater chips
  o Build & reinforce capacity to innovate in the design, manufactuing and packaging of advance chips
  o Address skills shortage attract new talent and support the skilled workforce emergence
  o Put in place a framework to increase production capacity to 20% of the global market by 2030
  o Develop an in-depth understanding of the global semiconductor supply chains
• The EU will:
• In total mobilise more than € 43 billion of public and private investments and set measures to prepare, anticipate and swiftly respond to any future supply chain disruptions, together with Member States and our international partners.

o The Chips Act itself will mobilise 15 billion, These investments will complement:

• existing programmes and actions in research and innovation in semiconductors such as Horizon Europe and the Digital Europe programme
• announced support by Member States

Question 31

Statistics around Green Deal Industrial PLan

Answer 31

Over €100 billionis the value of EU’s net-zero start-ups ecosystem in 2021, doubling since 2020

More than 400 GW of wind and solar renewable energy production capacity in the EU in 2022, an increase of over 25% compared to 2020

4.5 million green jobs in the European economy in 2019 up from 3.2 million in 2000

Question 31

Action Plan on synergies between civil, defence and space industries

Answer 31

February 2022.

Background: In the 2021-2027 period, the EU will, for the first time, have significant defence funding available.

The main goals of the Action Plan are to:

• Enhance the complementarity between relevant EU programmes and instruments covering research, development and deployment to increase efficiency of investments and effectiveness of results (the synergies);
• Promote that EU funding for research and development, including on defence and space, has economic and technological dividends for European citizens (the spin-offs) and;
• Facilitate the use of civil industry research achievements and of civil-driven innovation in European defence cooperation projects (the spin-ins).

The Commission announces eleven targeted actions that focus on the interplay between civil, defence and space industries. To be highlighted is the launch of three flagship projects with the potential to become game changers: **drone technologies, space-based secure connectivity, and space traffic management. **

Question 31

action plan on the digitalisation of the energy sector (2022)

Answer 31

Background
* The European Green Deal and the REPowerEU Plan require a deep transformation of our energy system, which needs to become more interactive and smarter to help consumers embrace the benefits of the green transition.
* The European Green Deal and the REPowerEU Plan require a deep transformation of our energy system, which needs to become more interactive and smarter to help consumers embrace the benefits of the green transition.
* In order to reach the Fit for 55 and REPowerEU objectives for renewables and energy efficiency, it is estimated that about EUR 584 billion of electricity infrastructure investments are needed between 2020 and 2030, in particular in the distribution grid.
* The energy consumption of cryptocurrencies has increased by 900% in the past 5 years and has more or less doubled compared to 2 years ago, reaching around 0.4% of worldwide electricity consumption.
* The ICT sector accounts for approximately 7% of global electricity consumption, and it is forecast to rise to 13% by 2030.
* With data centers accounting for 2.7% of EU electricity demand in 2018 and their energy consumption expected to rise 200% between 2020 and 2030,

Why of this action plan and Pillars
* In some areas of the energy sector, such as electric vehicles, photovoltaic installations and heat pumps, digital and smart technologies are already in place and need support to scale up. In other areas our energy system is just beginning to reap the benefits of digitalisation
* Through digitalisation, we can improve the affordability, sustainability and resilience of our energy system

• affordability: Support digital tools for and with consumers and raise digital skills; Create a common European
  energy data space, etc.
• sustainability: Create a digital twin of the European electricity grid, Develop energy-related labels for computers, data centres and blockchains; EU Code of Conduct for the sustainability of telecommunications networks.
• resilience: Delegated acts on the cybersecurity of gas and hydrogen networks, Recommendation to enhance the resilience of critical energy infrastructure; Coordinated risk assessments

Key actions to digitalise the energy system
* helping consumers increase control over their energy use and bills through new digital tools and services, with a strong governance framework for a common European energy data space;

• controlling the energy consumption of the ICT sector including through an environmental labelling scheme for data centres, an energy label for computers, measures to increase transparency on the energy consumption of telecommunication services and an energy efficiency label for blockchains;
• strengthening the cybersecurity of energy networks through new legislation including a Network Code for cybersecurity aspects of cross-border electricity flows under the EU Electricity Regulation and Council Recommendation to improve the resilience of critical infrastructures;

Examples implementaion
* In the 2023-2024 Horizon Europe programme, the Commission intends to launch a flagship initiative to support digitalisation of the energy system

Question 32

Digital Consumers (Digital Internal Market)

Answer 32

Commissioner Portfolio: Didier Reynders (BE, under Consumer Protection), but initiatives under Europe Fit for the Digital Age (Vestager/Thierry Breton)

Question 33

Common Chargers for Mobile Phones – tangible benefit of the Single market

Answer 33

Background
* due to incompatible chargers on the market more than a third of consumers report having experiencing problems, while spending approximately €2.4 billion annually on additional standalone chargers.
* At the same time, disposed of and unused chargers contribute to around 11

Overview and content
* Adotped in Oct 2022
* By the end of 2024, all mobile phones, tablets and cameras sold in the EU will have to be equipped with a USB Type-C charging port. From spring 2026, the obligation will extend to laptop
* Regardless of their manufacturer, all new mobile phones, tablets, digital cameras, headphones and headsets, handheld videogame consoles and portable speakers, e-readers, keyboards, mice, portable navigation systems, earbuds and laptops that are rechargeable via a wired cable, operating with a power delivery of up to 100 Watts, will have to be equipped with a USB Type-C port.
* As wireless charging becomes more prevalent, the European Commission will have to harmonise interoperability requirements by the end of 2024, to avoid having a negative impact on consumers and the environment. This will also get rid of the so-called technological “lock-in” effect, whereby a consumer becomes dependent on a single manufacturer.
* Dedicated labels will inform consumers about the charging characteristics of new devices, making it easier for them to see whether their existing chargers are compatible.
* Consumers will be able to purchase a new electronic device without a new charger. This will limit the number of chargers on the market or left unused.
* Consumers will be able to purchase a new electronic device without a new charger. This will limit the number of chargers on the market or left unused.

Question 34

New Roaming Regulation 2017 renewed - tangible benefit of the SM

Answer 34

• 9 December 2021, Renewal for 10 more year as of 1 July 2022
• The new regulation will extend the current rules and will bring new additions.
• First, consumers will have access to the same services abroad in the EU as at home, when the same networks and technologies are available on the network in the visited Member State (i.e 5G)
• Second, consumers will be better informed about the types of services that can bring additional costs,
• Third, consumers will be informed by way of short message (SMS) about additional charges for using roaming services on so-called non-terrestrial networks.

Question 34

Digital Identity - Proposal, July 2021

Answer 34

Background
* Today, only about 60% of the EU population in 14 Member States are able to use their national eID cross-border.
* The proposal for the European Digital Identity builds on and amends the existing eIDAS Framework established in 2014 and regulating Europeans’ digital identity documents and services.
* aim is to ensure universal access for people and businesses to secure and trustworthy electronic identification and authentication by means of a personal digital wallet on a mobile phone.
State: politcal agreement between EP and Council reached in June 2023. Fist pilot projects are currently being launched: use case to unlock simcards with eID, use iof eID when openin gbank account, when interacting with public sevies rental of cars, create electronic signature

Content
* The European Digital Identity will be available to EU citizens, residents, and businesses who want to identify themselves or provide confirmation of certain personal information. It can be used for both online and offline public and private services across the EU.
* Every EU citizen and resident in the Union will be able to use a personal digital wallet.
* Under the proposed new scheme, every Member State is to launch at least one
smartphone app that will integrate the functionality of existing state-issued ID with strong
authentication for purposes of interacting with public and private services (European Digital Identity Wallet)
* The Wallet should also allow to sign documents electronically and have the functionality of an electronic file cabinet, integrating digital attestations of attributes , so to serve as a portfolio of the individual’s attributes such as medical certificates, diplomas, licences or certificates of birth
* While integration with national identity documents means that Europeans will be using the eID to at least identify themselves to public authorities, no obligation exists for use of the Wallet by consumers when interacting with private actors
* Some private actors would also be obliged to recognize the European eIDs, including very large online platforms and service providers in areas such as transport, energy, banking and financial services, communications or health.

Question 34

Digital Education Action Plan (2021 - 2027)

Answer 34

Overview
* 2020
* The Digital Education Action Plan (2021-2027) I – DG EAC: Is a renewed European Union (EU) policy initiative that sets out a common vision of high-quality, inclusive and accessible digital education in Europe, and aims to support the adaptation of the education and training systems of Member States to the digital age.
* Key aspect of European Educaiton Area by 2025, and contributes to this priority, European Skills Agenda, European PIllar Action Plan, and Digital Decade compass
* a 2018 Organisation for Economic Co-operation and Development (OECD) study found that on average less than 40% of educators across the EU felt ready to use digital technologies in teaching, with divergences between EU Member States
* more than one third of 13-14 year olds who participated in the International Computer and Information Literacy Study (ICILS) in 2018 did not possess the most basic proficiency level in digital skills
* 95% of the respondents of the Open Public Consultation of the Digital Education Action Plan consider that the COVID-19 pandemic marks a turning point for how technology is used in education and training
*

Priotites
The Digital Education Plan sets out two strategic priorities and fourteen actions to support them:

Priority 1: Fostering the development of a high-performing digital education ecosystem
Priority 2: Enhancing digital skills and competences for the digital transformation

To support both priority areas, the Commission will also establish a European Digital Education Hub strengthening cooperation and exchange in digital education at the EU level.
Examples actaions: European DIgital Skills Certificate

2023 Proposals to address the digital divide by improving digital skills teaching and ensuring universal access to inclusive and high-quality digital education and training
The proposals, adopted in the context of the European Year of Skills, aim at addressing the two main common challenges identified by the Commission and EU Member States:

• the lack of a whole-of-government approach to digital education and training;
• the difficulties in equipping people with the necessary digital skills.

Following contents:
* The proposal for a “Council Recommendation on improving the provision of digital skills in education and training” tackles each level of education and training. It calls on Member States to start early by providing digital skills in a coherent way through all levels of education and training.
* The proposal for a “Council Recommendation on improving the provision of digital skills in education and training” tackles each level of education and training. It calls on Member States to start early by providing digital skills in a coherent way through all levels of education and training.

The Commission stands ready to support the implementation of both proposals by facilitating mutual learning and exchanges among Member States and all relevant stakeholders through EU instruments, such as the Technical Support Instrument.

Question 35

Digital Transport: Multimodal digital mobility services initiative

Answer 35

• State: originally planned for Q4 2022, impat assessment however still ongoing and proposal due in Sep 2023
• According to Eurostat, mobility platforms could generate by 2030: 500 million new travellers, 50% more growth in EU intercity transport, 172 million new travellers in high-speed train
• Planning and buying tickets for trips combining different means of transport can be difficult in the EU
• The rules could foresee the following:
  *

Question 36

Defence and Space

Answer 36

Cssr.: Thierry Breton
Legal Base: Art 42 TEU (defence), Art. 189 (space) plis protols to Lisobon Treaty,

Question 37

Communication on contribution to European Defence

Overview, areas of action, Space &cybersecurity, obeservatiry on crit.

Answer 37

Overiew
* By the end of 2022, the European Defence Fund will have invested €1.9 billion in defence research and capability development projects. This will kick-start key large-scale collaborative capability development projects while stimulating defence innovation.
* new initiatives are concrete steps towards a more integrated and competitive European defence market, particularly by enhancing cooperation within the EU, thereby building scale, mastering costs and enhancing operational effectivenes
* It is accompanied by a roadmap on critical technologies for security and defence to outline a path to boosting research, technology development and innovation and reducing the EU’s strategic dependencies in critical technologies and value chains for security and defence.
* It is presented in context of Strategic Compass, which will outline Member States’ common ambition to answer to the threats and challenges the EU is facing through concrete objectives and deliverables for the next 5-10 years.

The Commission has, in particular, identified the following main new areas to further strengthen the competitiveness of the European defence market:
* explore how to further stimulate Member States investments in key strategic capabilities and critical enablers that are developed and/or procured in European Union cooperative frameworks;
* further incentivise the joint procurement of defence capabilities developed in a collaborative way within the EU;
* call upon Member States to continue moving towards streamlined and more convergent arms exports control practices, in particular for defence capabilities developed in an EU cooperative framework.

Space and resilience and cybersecurity
* The Commission will also explore how to further enhance the protection of EU space assets, notably through additional Space Surveillance and Tracking (SST) services and by making full use of the potential of the EU industry.
* COM and HR will present a strategy for security and defence
* It will promote a ‘dual-use by design’ approach for EU space infrastructures
* The Commission will intensify work towards reducing strategic technological dependencies and enhancing the resilience of space infrastructure related supply chains, notably through EU funding instruments as well as the Observatory of critical technologies
* The Commission and the High Representative will also explore the possibility of activation of solidarity, mutual assistance and crisis response mechanisms in case of attacks originating from space or threats to space-based assets.
* In addition, to strengthen cybersecurity and cyber-defence, the Commission will propose the Cyber Resilience Act and request the European Standardisation Organisations to develop harmonised standards regarding cybersecurity and privacy

Observatory on critical technologies
The Observatory of Critical Technologies, currently being set up by the Commission, will
* identify, monitor and assess critical technologies for the space, defence and related civil sectors, as well as technology gap
* invite Member States to commit to developing a coordinated approach to critical technologies in the context of the Strategic Compass for Security and Defence.
* To be adopted by MS by March 2022
* support innovation and entrepreneurship in security and defence through a number of tools (e.g. incubator, investment blending facility, etc.), and by creating an EU Defence Innovation Scheme that brings these efforts under one umbrella.

Question 38

Space policy

Overview, Main initiatives, Goals of EU space programme

Answer 38

Overview
* Legal basis: Art 189 TFEU: To promote scientific and technical progress, industrial competitiveness and the implementation of its policies, the Union shall draw up a European space policy. To this end, it may promote joint initiatives, support research and technological development and coordinate the efforts needed for the exploration and exploitation of space.
* The European Union’s space policy actively contributes to fighting climate change, stimulates technological advances and innovation, and provides socio-economic benefits to citizens, thus addressing four of the Union’s top political priorities:
* European Green Deal, A stronger Europe in the world, Promoting the European Way of Life, Europe fit for the Digital Age

Main initiative
* EU Space Programme (2021)
* EU Strategy for Defence and Space (2023)
* EU space-based secure connectivity system
* Space traffic management

Benefits of EU Space Programme
* Increased efficiency in agriculture and fisheries
* Improving Europe’s digital connectivity;
* Improved crisis response
* Protecting the environment and fighting climate change
* Increased security
* Optimising and greening transport:

Question 39

EU space programme

Answer 39

What it is and stats
* The European Space Programme implements space activities in the fields of Earth Observation, Satellite Navigation, Connectivity, Space Research and Innovation.
* 10% of the EU GDP enabled by satellite navigation
* N°1 world provider of space data and information
* 30 EU owned satelites orbit for EO and GNSS
* EU investment in space is EUR 14.6 billion under current MFF
* Global GNSS and EO based revenues crossed EUR 200 billion in 2021 - set to reach almsot EUR 500 billion over the next decade
* 60% of EU EO companies use COPERINCUS data. EU industry holds over 41% of teh global EO downstream market

Main components

The following flagship components deliver European space-based services on a daily basis:
* COPERNICUS is the European Earth Observation (EO) system. It supports the management of the environment, helps to mitigate the effects of climate change and ensures safety and civil security across Europe. Copernicus is the first world provider of ‘big’ space data, with 16 TB od data / day
* GALILEO is a global satellite navigation and positioning system (GNSS) on which numerous EU economic sectors rely, from transport and agriculture to border management and search and rescue. Its 20cm horizontal accuracy (40 cm vertical) makes Galileo a game changer for autonomous driving and commercial drones. Already more than 2.5 billion smartphones are Galileo-enabled.
* EGNOS is the European Geostationary Navigation Overlay Service: a reliable navigation signal improving the navigation services to aviation, maritime and land-based users over 30+ countries, and already operational in 426 airports and helipads.
* SSA: Space-situational awareness monitoring and protectin space assets: providing surveillance and tracking services to 268+satellites
* GOVSATCOM: Secure satellite communications for EU security actors. Delivering rapid support over crisis areas

New additons
In February 2022, the European Commission proposed two new flagship initiatives to boost satellite-based secure connectivity and Space Traffic Management:
1)** EU space-based secure connectivity system** will ensure worldwide access to secure and cost-effective satellite communications services, for governmental communications and commercial use. It aims to protect critical infrastructures, support surveillance and crisis management, as well as enable high-speed broadband everywhere in Europe to best anticipate future challenges of our economy.
2) Space Traffic Management (STM) : The exponential applications of space services involve more and more satellites, thus more traffic in space.The congestion of satellites and debris threaten the viability of space infrastructure: more than 1 million debris items larger than 1cm are orbiting around the Earth. This would further strengthen the Union’s space surveillance and tracking capabilities (already providing collision avoidance services to more than 260 European spacecraft), and set clear standards and regulation for a safe, sustainable and secure use of space.

CASSINI
* €1 bn Space Investment Fund to accelerate the expansion of innovative SMEs and start-up in space and the development of breakthrough technologies and processes
* CASSINI will support entrepreneurship in space-related businesses across the EU

Question 40

EU space-based secure connectivity system

Answer 40

Overview
* adopted in 2023
* The EU is acting on its space ambitions by addressing two pressing issues: space-based secure connectivity and Space Traffic Management. Space technology is essential to facilitating our daily lives and contributing to a more digital, green and resilient future for our planet.
* However, the EU’s space policy needs to constantly evolve and adapt to new challenges to continue enjoying the benefits space brings to our citizens. These new proposals will help safeguard the efficiency and security of our current assets, while developing cutting-edge space technology to strengthen the European space power.

Goal
The Commission has therefore proposed an ambitious plan for an EU space-based secure communication system that will:

• ensure worldwide uninterrupted access to secure and cost-effective satellite communication services for the protection of critical infrastructures, surveillance, external actions and crisis management
• allow for the provision of commercial services by the private sector that can enable access to advanced, reliable and fast connections to all citizens and businesses across Europe

Question 41

EU Space Strategy for Security and Defence

Overviewm Pillars of strategy, actions

Answer 41

Overview
* In 2022, EU leaders identified space as a strategic domain in the Strategic Compass and called for an EU Space Strategy for Security and Defence.
* Building on this political momentum, the Commission and the High Representative have developed the first-ever EU Space Strategy for Security and Defence.

The key pillars of the Strategy are:

• Ensuring a shared understanding of space threats;
• Enhancing the resilience and protection of space systems and services in the EU;
• Strengthening the collective ability of the EU to respond to any attacks and threats putting at risk the EU security interests;
• Developing dual-use space capabilities, including for security and defence purposes;
• Fostering global partnerships.

Actions
* To increase the common understanding of threats across Member States, the High Representative will prepare a classified annual space threat landscape analysis at EU level, drawing on Member States´ intelligence.
* The Strategy proposes actions to strengthen the resilience and protection of space systems and services in the EU. For this purpose, the Commission will:
* Consider proposing an EU Space Law to provide a common framework for security, safety, and sustainability in Space
* Set up an Information Sharing and Analysis Centre (ISAC) to raise awareness and facilitate exchange of best practices among commercial and relevant public entities on resilience measures for space capabilities.
* Launch preparatory work to ensure long-term EU autonomous access to space, addressing in particular the security and defence needs.
* Enhance the technological sovereignty of the EU by reducing strategic dependencies and ensuring security of supply for space and defence,
* The strategy proposes to expand the existing space threat response mechanism which is already used for the protection of Galileo to all space systems and services in the EU.

Question 42

IRIS2

Answer 42

• Adopted in 2023
• The new Satellite Constellation named IRIS2, is the European Union’s answer to pressing challenge of tomorrow, offering enhanced communication capacities to governmental users, businesses, while ensuring high-speed internet broadband to cope with connectivity dead zones.
• The system will support a large variety of governmental applications, mainly in the domains of situational awareness (e.g. border surveillance), crisis management (e.g. humanitarian aid) and connection and protection of key infrastructures (e.g. secure communications for EU embassies).
• On the commercial side, it will allow mass-market applications, including mobile and fixed broadband satellite access, satellite trunking for B2B services, satellite access for transportation, reinforced networks by satellite and satellite broadband and cloud-based services.

Question 43

SME strategy for a sustainable and digital Europe (2020)

Answer 43

Background
* As defined by the European Commission, micro-, small and medium-sized businesses (SMEs) are enterprises that employ fewer than 250 persons and which have an annual turnover not exceeding €50 million, and/or an annual balance sheet total not exceeding €43 million.
* The EU counts 25 million SMEs, playing a key role in the Union’s economy: they represent 99 % of all businesses, employ around 100 million people (providing two-thirds of private-sector jobs), and represent around 56 % of the EU’s gross domestic product.
* In 2020, the number of European SMEs fell by -1.3 %, employment in SMEs by -1.7 % and SME value added by -7.6 %.
* Over 60 % of SMEs have reported a fall in turnover in 2020, and around 66 % have delayed investment decisions or downsized investments.
* SMEs still underutilize digital tech

Actions across 3 pillars

1) Capacity-building and support for the transition to sustainability and digitalisation
* Providing SMEs with tailored support when it comes to knowledge-sharing and services on sustainability
* Facilitating access to the European network of more than 200 Digital Innovation Hubs (DIHs) for SMEs on regional level
* Offering concrete training and upskilling opportunities, financed through the Digital Europe Programme (DIGITAL) tailored to SMEs
* Supporting businesses to access a talent pool of skilled workforce through the Digital Volunteers initiative.

2) Reducing regulatory burden and improving market access
* Supporting cross-border activities within the European Single Market and on an international level, especially in the context of scaling up.
* Providing relevant and updated information on accounting legislation, tax considerations and specifics.

3) Improving access to finance
Support to SMEs in this area has been mobilised under the framework of the COSME programme as well as the European Social Fund. Actions include:
* Boosting of the ‘Loan Guarantee Facility’ (LGF) to facilitate financing on all levels for SMEs, in particular on working capital, and flexibility on repayments of existing loans, as well as bridging private and public financing schemes.
* Facilitating access to relevant and updated information on financing instruments and mechanisms and providing guidance to businesses.

Question 44

Strategy on Web 4.0 and virtual worlds (2023)

Answer 44

Background
* The outlook of the EU economy beyond 2030, published in March, highlights digitalisation as one of its key drivers and Web 4.0 as a major technological transition bringing a seamlessly interconnected, intelligent and immersive world.
* The global virtual worlds market size is estimated to grow from €27 billion in 2022 to over €800 billion by 2030.
* Virtual worlds will impact the way people live together, bringing both opportunities and risks that need to be addressed.
* The strategy is in line with the 2030 objectives of the Digital Decade policy programme and three of its key pillars of digitalisation: skills, business and public services.
* The fourth pillar, infrastructures, is addressed by the Commission’s connectivity package and its broader efforts on computing, cloud and edge capacities.

Key Pillars
1) Empowering people and reinforcing skills
* By the end of 2023, the Commission will promote the guiding principles for virtual worlds, put forward by the Citizens’ Panel;
* As specialists on virtual worlds are essential, the Commission will work with Member States to set up a talent pipeline and will support skills development, e.g. through Digital Europe Programme or Create Europe Programme

2) Business: supporting a European Web 4.0 industrial ecosystem
* Currently, there is no EU ecosystem bringing together the different players of the value chain of virtual worlds and Web 4.0.
* The Commission has proposed a candidate Partnership on Virtual Worlds under Horizon Europe, possibly starting 2025
* To foster innovation, the Commission will also support EU creators and media companies to test new creation tools
* WIll work with Member States to develop regulatory sandboxes for Web 4.0 and virtual worlds.

3) Government: supporting societal progress and virtual public services
* The EU is already investing in major initiatives, such as Destination Earth (DestinE), Local Digital Twins for smart communities, or the European Digital Twin of the Ocean to allow researchers to advance science,
* The Commission is launching two new public flagships: “CitiVerse”, an immersive urban environment that can be used for city planning and management; and a European Virtual Human Twin, which will replicate the human body to support clinical decisions and personal treatment.

4) Shaping global standards for open and interoperable virtual worlds and Web 4.0
* The Commission will engage with internet governance stakeholders around the world and will promote Web 4.0 standards in line with the EU’s vision and values.

Question 45

A European Strategy for data
(2020)

Overview, Objectives, Actions

Answer 45

Overview
* Data is an essential resource for economic growth, competitiveness, innovation, job creation and societal progress in general.
* Benefits will be felt in every single aspect of our lives, ranging from more conscious energy consumption and product, material and food traceability, to healthier lives and better health-care.
* The volume of data produced in the world is growing rapidly, from 33 zettabytes in 2018 to an expected 175 zettabytes in 2025
* real-time traffic avoidance navigation can saveup to 730 million hours. This represents up to
€20 billion in labour costs.
* By 2025, dataa processing and analysis will change drastically, tiowarsd an 80% sharte for edge computing (20% today)
* Value of data economy will increase by 2.8x untijl 2025, to EUR 829 billion (5.8% of EU GDP)
* THe number of data professionals will double to 10.9 million
* Each new wave of data represents major opportunities for the EU to become a world leader in this area

Objectives
* The European strategy for data aims at creating a single market for data that will ensure Europe’s global competitiveness and data sovereignty.
* The objective of the European data strategy is to make sure the EU becomes a role model and a leader for a society empowered by data.
* For this, it aims at setting up a true European data space, a single market for data, to unlock unused data, allowing it to flow freely within the European Union and across sectors for the benefit of businesses, researchers and public administrations

The EU will create a single market for data where:
* Data can flow within the EU and across sectors, for the benefit of all;
* European rules, in particular privacy and data protection, as well as
competition law, are fully respected;
* The rules for access and use of data are fair, practical and clear.

Actions
To further ensure the EU’s leadership in the global data economy the European strategy for data intends to:

• adopt legislative measures on data governance, access and reuse. For example, for business-to-government data sharing for the public interest;
• make data more widely available by opening up high-value publicly held datasets across the EU and allowing their reuse for free;
• enable access to secure, fair and competitive cloud services by facilitating the set-up of a procurement marketplace for data processing services and creating clarity about the applicable regulatory framework on cloud framework of rules on cloud.
• EUR 4-6 billion to be invested in total in common European Data Spaces and a European federation of cloud infrastructures and services

Question 46

Data Governance Act (2021)

Answer 46

Overview
* Entered into force in June 2023
* A key pillar of the European strategy for data, the Data Governance Act seeks to increase trust in data sharing, strengthen mechanisms to increase data availability and overcome technical obstacles to the reuse of data.
* However, the public sector also holds vast amounts of protected data (e.g. personal data and commercially confidential data) that cannot be re-used
* The Data Governance Act will also support the set-up and development of common European data spaces in strategic domains, involving both private and public players, in sectors such as health, environment, energy, agriculture, mobility, finance, manufacturing, public administration and skills.

Action
* The initiative aims to make more data available and facilitate data sharing across sectors and EU countries in order to leverage the potential of data for the benefit of European citizens and businesses.
* The EU will boost the development of trustworthy data-sharing systems through 4 broad sets of measures:
1) Mechanisms to facilitate the reuse of certain public sector data that cannot be made available as open data (e.g. health data that could greatly advance research in medicine)
2) Measures to ensure that data intermediaries will function as trustworthy organisers of data sharing or pooling within the common European data spaces.
3) Measures to make it easier for citizens and businesses to make their data available for the benefit of society.
4) Measures to facilitate data sharing, in particular to make it possible for data to be used across sectors and borders,

Question 47

Open Data Directive

Answer 47

• Entered into force in 2019
• The public sector gathers and stores large quantities of data that could be of interest to individuals and businesses, but the data is not often accessible to the public.
• The directive will make public sector and publicly funded data re-usable, e.g. through APIs
• limit the exceptions which currently allow public bodies to charge more than the marginal costs of dissemination for the re-use of their data;
• The PSI – Open Data Directive poses an even stronger requirement on reuse by default, expands the type of PSB covered and, very importantly for Open Science, establishes the principle that research data resulting from publicly funded research must be Open Access by default.

Question 48

General Data Protection Regulation

Answer 48

Overview

• The General Data Protection Regulation (GDPR) is the toughest privacy and security law in the world.
• It is an update of the 1995 European Data Protection Directive.
• The GDPR is a single set of rules aimed at protecting individuals with regard to the processing and free movement of personal data
• The regulation became a model for many other laws around the world, including in Turkey, Mauritius, Chile, Japan, Brazil, South Korea, South Africa, Argentina and Kenya.
• The right to privacy is part of the 1950 European Convention on Human Rights, which states, “Everyone has the right to respect for his private and family life, his home and his correspondence.”

Functioning and scope
* rocess the personal data of EU citizens or residents, or you offer goods or services to such people, then the GDPR applies to you even if you’re not in the EU. We talk more about this in another article.
* Sets seven Data protection principles that must be respected (e.g. transparency on which data is being collected)
* Accountability — The data controller is responsible for being able to demonstrate GDPR compliance with all of these principles.
* Data protection by design and by default: everythig company does must consider data protection
* Data security: copmanies are required to handle data securely by implementing “appropriate technical and organizational measures.”
* Companies must appoing Data Protection Officers
* Specific rules on when data can be processed: e.g. consent, and other legitimate interests

Fines and penalites
* fines for violating the GDPR are very high. There are two tiers of penalties, which max out at €20 million or 4% of global revenue (whichever is higher), plus data subjects have the right to seek compensation for damages.

Question 49

Digital Taxation # OECD

Answer 49

• At the same time, the rise of certain digital activities and novel business models has become a growing challenge for existing taxation systems. It is important that all sectors of our economies pay their fair share of taxes and contribute to the functioning of our societies.
• The current rules governing international taxation matters were designed to apply to businesses with a physical presence in a country. The increasing digitalisation of economies presents tax challenges, such as the reduction of tax revenues due to abusive tax avoidance and tax evasion.

Digital companies have
* have users and customers in a country where they do not have any physical business presence
generate profit from interaction with users and customers, using their data and contributions

Since tax rules still presume a physical presence, profits from digital activities are often not taxed in a market jurisdiction (i.e. the country where the users and consumers are located).

OECD agreeement
1. Pillar one: reallocation of taxing rights: The main expected output of pillar one is a multilateral convention which will allow the parties to exercise (or ‘reallocate’) a new taxing right (‘amount A’). Amount B’ of pillar one will provide increased tax certainty by creating standardised transfer pricing benchmarks for common transaction types.
2. Pillar two: minimum effective taxation: These rules are intended to ensure that the profits made by multinational groups with a turnover of at least €750 million are taxed at an effective rate of at least 15%. The pillar two rules were transposed into EU law through a Council directive of 15 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the EU.

Question 50

EU activities

Answer 50

• The EU is working in several areas to make sure that current taxation rules are fit for the digital age. These issues have been among its top priorities since 2017.
• In March 2018, the European Commission proposed new rules to ensure a fair taxation of digital activities in the EU which also promotes growth. The Commission proposals are now on hold, in light of the fact that negotiations in the G20/OECD Inclusive Framework are progressing. If a global solution and agreement in these negotiations are reached and effectively implemented, the proposals would become obsolete.

Question 51

VAT in the digital age

Answer 51

• MS lost EUR 93 billion of VAT in 2020
• In December 2022, the Commission presented the ‘VAT in the digital age’ package, which aims to help tackle VAT fraud, support businesses and promote digitalisation.

The package includes proposals for:

• single VAT registration for businesses across the EU
• VAT rules for the platform economy, related to passenger transport and short-term accommodation rental
• digital reporting obligations based on e-invoicing for businesses operating across borders in the EU

Key actions proposedwill help Member States collect up to €18 billion more in VAT revenues annually (€11 billion as a result of anti-fraud measures) while helping businesses, including SMEs, to grow:

Question 52

Digital Agenda 2020 - 2030

Answer 52

• The second digital agenda focused on profound changes introduced by digital technologies, the essential role of digital services and markets, and new EU technological and geopolitical ambitions
• Based on two strategic communications, namely, shaping Europe’s digital future and Europe’s digital decade, the Commission set out the specific actions it will undertake to aid the creation of safe and secure digital services and markets
• Furthermore, the development of quantum computing, a blockchain strategy, and a trade policy based on blockchain, human centric and trustworthy AI, semiconductors (European Chips Act), digital sovereignty, cybersecurity, gigabit connectivity, 5G and 6G, European data spaces and infrastructure, as well as setting global technology standards, are all priorities for the current decade
• Based on AI, data sharing, protecting users and competition, digital skills

Question 53

Digital compass

Answer 53

Skills: At least 80% of all adults should have basic digital skills and there should be 20 million ICT specialists employed in the EU, while more women should take up such jobs;

Businesses: 75% of companies should use cloud computing services, big data and AI; more than 90% of EU small and medium-sized enterprises should reach at least a basic level of digital intensity; and the number of EU unicorns should double;

Infrastructure: All EU households should have gigabit connectivity and all populated areas should be covered by 5G; the production of cutting-edge and sustainable semiconductors in Europe should make up 20% of worldwide production; 10 000 climate-neutral highly secure edge nodes should be deployed in the EU, and Europe should have its first quantum computer;

Public services: All key public services should be available online; all citizens will have access to their e-medical records, and 80% of citizens should use an electronic identity solution.

Question 54

Digital Europe Programme

Answer 54

The digital Europe programme, established by Regulation (EU) 2021/694, is a new EU funding programme for digital technology with a planned overall budget of** EUR 7.5 billion** for the 2021-2027 period that will provide strategic funding to support projects in five areas: supercomputing, AI, cybersecurity, advanced digital skills and ensuring a wide use of digital technologies across the economy and society, including through Digital Innovation Hubs.