Digital Economy and Society Index

The European Commission has published the results of the 2018 Digital Economy and Society Index (DESI) a tool which monitors the performance of Member States in digital connectivity, digital skills online activity, the digitisation of businesses and digital public services. According to it, the EU is getting more digital, but progress remains insufficient for Europe to catch up with global leaders and to reduce differences across Member States. This calls for a quick completion of the Digital Single Market and increased investments in digital economy and society.

DESI 2018 shows:

Connectivity has improved, but is insufficient to address fast-growing needs

Ultrafast connectivity of at least 100 Mbps is available to 58% of households and the number of subscriptions is rapidly increasing. 15% of homes use ultrafast broadband: this is twice as high as just two years ago and five times higher than in 2013.

80% of European homes are covered by fast broadband with at least 30 Megabits per second (Mbps) (76% last year) and a third (33%) of European households have a subscription (23% increase compared to last year, and 166% compared to 2013).

The number of mobile data subscriptions has increased by 57% since 2013 reach 90 subscriptions per 100 people in the EU. 4G mobile networks cover on average 91% of the EU population (84% last year).

Indicators show that the demand for fast and ultrafast broadband is rapidly increasing, and is expected to further increase in the future. The Commission proposed a reform of EU telecoms rules to meet Europeans’ growing connectivity needs and boost investments.

More and more Europeans use the internet to communicate

The highest increase in the use of internet services is related to telephone and video calls: almost half of Europeans (46%) use the internet to make calls, this is almost a 20% increase compared to last year and more than 40% increase compared to 2013. Other indicators show that 81% of Europeans now go online at least once a week (79% last year).

To increase trust in the online environment, new EU rules on data protection will enter into force on 25 May 2018.

The EU has more digital specialists than before but skills gaps remain

The EU improved very little in the number of Science, Technology, Engineering and Mathematics (STEM) graduates (19.1 graduates per 1000 people aged 20 to 29 years old in 2015, compared to 18.4. in 2013);

43% of Europeans still do not have basic digital skills (44% last year).

Alongside the Digital Skills and Jobs Coalition, the Commission has launched the Digital Opportunity Traineeships to tackle the digital skills gap in Europe. The pilot initiative will provide digital traineeships for up to 6,000 students and recent graduates until 2020 in another EU country.

Businesses are more digital, e-commerce is growing slowly

While more and more companies send electronic invoices (18% compared to 10% in 2013) or use social media to engage with customers and partners (21% compared to 15% in 2013), the number of SMEs selling online has been stagnating over the past years (17%).

In order to boost e-commerce in the EU, the Commission has put forward a series of measures from more transparent parcel delivery prices to simpler VAT and digital contract rules. As of 3 December 2018, consumers and companies will be able to find the best deals online across the EU without being discriminated based on their nationality or residence.

Europeans use more public services online

58% of internet users submitting forms to their public administration used the online channel (52% in 2013).

18% of people use online health services.

In April 2018, the Commission adopted initiatives on the re-use of public sector information and on eHealth that will significantly improve cross-border online public services in the EU.

Note: The annual Digital Economy and Society Index (DESI) aims to measure the progress of EU Member States towards a digital economy and society. It helps EU countries identify areas requiring priority investments and action. The DESI is also a key tool when analysing digital in the European Semester, which allows EU countries to discuss their economic and budget plans and monitor progress at specific times throughout the year.

For further information: DESI