1. European Commission's second priority policy area: Digital Single Market
Kalman Dezseri

2. Age of digital revolution (1)
In the EU, the digital economy is growing 7 times faster than the rest of the economy.
Much of the economic growth has been generated by broadband Internet.
High-speed networks have the same economic and social revolutionary impacts as the industrial revolution (development of electricity and transport networks) years ago.

3. Age of digital revolution (2)
67% of EU citizens go online every day,
16 mn subscription on fixed broadband
680 mn mobile subscription
63% of EU enterprises provide mobile divices for business use
40% of EU enterprises use Social Media
18% of total turnover of EU enterprises come from e-commerce
16% of SMEs sell online
ICT drove 1/3 of EU GDP growth

4. Ten priority policy areas of the Juncker Commission
1) a new boost for jobs, growth and investment
2) a connected Digital Single Market
3) a resilient Energy Union with a forward-looking climate
change policy
4) a deeper and fairer internal market with a strengthened
industrial base
5) a deeper and fairer EMU
6) a reasonable and balanced free trade agreement with the US
7) an area of justice and fundamental rights based
on mutual trust
8) towards a new policy of migration
9) a stronger global actor
10) a union of democratic change

5. Work Programme of the EC in2015
The Work Programme concentrates on a limited set of concrete initiatives. There are 5 priorities: 1) EUR 315 bn investment offensive 2) DSM package 3) creating European Energy Union 4) new policy on migration 5) fair taxation environment

6. What is the DSM?
- The Digital Single Market means an area where the free movement of goods, persons, services and capital is ensured and where citizens and businesses can therefore seamlessly access and exercise online activities under conditions of fair competition, irrespective of their nationality or place of residence. - All that is possible in physical Single market must also be possible in the DSM - The freedoms of the EU single market have to go digital
This definition comes from the CNECT/MARKT Scoping paper. 6

7. Priority no.2 : DSM
"By creating a connected DSM, we can generate up to EUR 250 bn of additional growth, … create hundreds of thousands of new jobs, notably for younger job-seekers and a vibrant knowledge-based society."
The borderless nature of digital technologies means it no longer makes sense for each EU country to have its own rules for ITC services, copyright, data protection or the management of radio spectrum.
Citizens in the EU shouldn't have to pay roaming charges to use their mobile phones in other EU countries. Companies should be subject to the same data protection and consumer rules,
regardless of where their computer servers are based.

8. Existing constraints
SMEs trying to expand across the EU have to comply with 28 sets of rules (e.g. consumer protection, data protection, contract law, tax, etc.)
Consumers trying to buy online face several barriers (e.g. geo-restrictions of downloading film, other content, etc.) – blocking on the basis of location/residence.
Result: lack of dynamism in digital economy, market fragmentation, worsening of EU competitiveness, etc.
50% of the EU population buys on-line, but 12%
only do cross-border

9. Topics to be addressed in the future DSM policy
Regulatory fragmentation in a number of areas of law that apply to e-commerce, such as security, data protection, legal uncertainty in applicable law & jurisdiction, taxation or liability rules.
Territorial restrictions including issues related to copyright and new means of discrimination in the online environment based on the use of technological solutions such as geo-blocking
Access to various online platforms. The internet was once disintermediation but now new dominant intermediaries and an oligopolistic structure are emerging (e.g.: online marketplaces, search services)
Lack of interoperability in various areas for example as regards cloud computing, online and mobile payments or internet-of-things.
Limited cross-border payment options and high costs of cross border parcel shipping, which prevent consumers from looking for cheaper alternatives of goods in other Member States

10. Three pillars of DSM (1)
1) Better access for consumers and businesses to digital goods and services across Europe
Helping to make the EU's digital world a seamless and level marketplace to buy and sell
Modernisation of e-commerce, ending unjustified geo-blocking, efficient and affordable parcel delivery, strengthening consumer trust, new copyright framework, reduced VAT burden.
2) Shaping the right environment for digital networks and services
Designing rules which match the pace of technology & support infrastructure development
Review: audiovisual media framework, online platforms and intermediaries, sharing economy, telecom rules, reinforce trust and security in digital services

11. Three pillars of DSM (2)
3) Creating European digital economy and society with growth potential
Ensuring that Europe's economy, industry and employment take full advantage of what digitalisation offers
Digitising industry, cloud computing, inclusive digital economy and society, e-government, standardisation and interoperability, digital skills, data economy

12. Pillar 1 Better access for consumers and business to online goods - Tasks
a) Rules to make cross-border e-commerce easier
b) Enforcing consumers rules
c) More efficient and affordable parcel delivery
d) Ending unjustified geo-blocking
e) Launching an antitrust competition inquiry
into e-commerce
f) A modern, more European copyright framework
g) A review of the Satellite and Cable Directive
h) Reducing VAT burdens

13. Pillar 2 Right environment for digital networks and services - Tasks
a) Overhaul of the telecom rules
b) A review of the audiovisual media framework
c) An analysis of the role of online platforms
d) Reinforcing trust and security in digital services and in the handling of personal data
e) A partnership with industry on cybersecurity

14. Pillar 3 Economy & Society - Tasks
a) Address barriers in the European Data Economy
(Big Data – health, energy, advertisement, personal data, machine generated data)
b) a European Cloud initiative (share of digital data
stored in cloud: 20% (2013) 40% (2020),
c) 5G Action Plan
d) Define priorities for standards and interoperability
e) The Commission is concentrating on standards and
interoperability

15. Pillar 3 Economy & Society - Tasks (2)
f) Support an inclusive digital society
(digital skills, education, literacy)
g) A new e-government plan
(smart transport, smart city, e-health, e-banking,
e-invoice, e-payment, etc.)

16. Innovating start-ups
Needs to guarantee on-line access , connectivity and investment, to build the digital economy and to make DSM matter to business (particularly for SMEs)
Connectivity is key element because cross-border on-line activities essential.
Removing barriers and better regulations stimulate the digital economy and boost investments of the private sector

17. Commission's six work streams
1 Building trust and confidence
2 Removing restrictions
3 Ensuring access and connectivity
4 Building the digital economy
5 Promoting e-society
6 Digital innovation & research

18. Digitising European industry

19. Internet of Things (IoT)
bn devices 1.5 device/person
bn devices 8 devices/person
Automotive, healthcare, utilities, consumer electronics

20. DSM Technologies & Public Services Modernisation European Cloud Initiative
The EU Cloud initiative
An Open Science Cloud for storage, management, analysis and re-use of research data across borders and scientific disciplines
A trusted and world-class Data Infrastructure:
Widening access and building trust by opening the infrastructure to industry (SMEs) and public sector (e.g. smart cities).
Data as a key driver of Open Science and the 4th industrial revolution
But data remains underexploited and Europe is lagging behind in terms of data infrastructures and technologies
Data as a key driver of Open Science and the 4th industrial revolution
But data remains underexploited and Europe is lagging behind in terms of data infrastructures a

22. DIGITAL ECONOMY AND SOCIETY INDEX
The Digital Economy and Society Index (DESI) measures progress of EU countries towards a digital economy and society.
It comprises 5 dimensions representing main policy areas
Connectivity
Human Capital
Use of Internet
Integration of Digital Technology
Digital Public Services
Relevant sub-dimensions under each dimension, overall gathering 30 indicators
The DESI has been calculated for 2014, and 2016

23. Digital Economy and Society Index (DESI) has 5 principal dimensions
1 Connectivity
The Connectivity dimension measures the deployment of broadband infrastructure and its quality. Access to fast broadband-enabled services is a necessary condition for competitiveness.
2 Human Capital
The Human Capital dimension measures the skills needed to take advantage of the possibilities offered by a digital society. Such skills go from basic user skills that enable individuals to interact online and consume digital goods and services, to advanced skills that empower the workforce to take advantage of technology for enhanced productivity and economic growth.

24. 4 Integration of Digital Technology
3 Use of Internet
The Use of Internet dimension accounts for the variety of activities performed by citizens already online. Such activities range from consumption of online content (videos, music, games, etc.) to modern communication activities or online shopping and banking.
4 Integration of Digital Technology
The Integration of Digital Technology dimension measures the digitisation of businesses and their exploitation of the online sales channel. By adopting digital technology businesses can enhance efficiency, reduce costs and better engage customers, collaborators and business partners. Furthermore, the Internet as a sales outlet offers access to wider markets and potential for growth.

25. 5 Digital Public Services
The Digital Public Services dimension measures the digitisation of public services, focusing on eGovernment. Modernisation and digitisation of public services can lead to efficiency gains for the public administration, citizens and businesses alike as well as to the delivery of better services for the citizen.

26. Countries were grouped in clusters according to their score in DESI 2016 and to the growth they have registered between 2015 and 2016.
Falling behind countries are those that score below the EU average and whose development over the last year was slower than that of the EU as a whole. These countries are already less developed than the EU average, and by showing anemic growth they are distancing themselves further from the rest of the EU.
Countries in this cluster: Bulgaria, Cyprus, Czech Republic, Greece, France, Hungary, Poland and Slovakia.