Last May, EU ministers responsible for transport, telecommunications and energy endorsed “the establishment of an ambitious action agenda based upon concrete proposals notably to create a fully functioning digital single market to the benefit of European businesses, in particular SMEs, and European consumers.”
This agenda sets out concrete actions in a number of important areas such as harmonising the delivery of pan-EU digital services, driving connectivity and broadband penetration, as well as promoting interoperability across the range of the ICT agenda. It also addresses online security, data privacy and identity management so that Europe’s internet users have greater trust and confidence online. Its key actions focus on ensuring that “the economic, social and cultural potential of ICT is exploited to the maximum and that the approach taken by the European Commission to implement it is on the basis of a wide stakeholder involvement.”
European Commission vice-president Neelie Kroes, who is responsible for the digital agenda, believes that these EU interests would advance job creation, sustainability, social inclusion and address challenges the European societies are facing - such as energy and climate change, the ageing population, healthcare and pharmaceuticals, e-government. These are areas which the EU needs to focus upon in the years to come. For this to be achieved, cooperation with different stakeholders, mostly the EU member states, the ICT sector and other economic partners is necessary.
Studies show that many European firms established online tend to lose sales and customers to American sites unless they learn about their customers and tailor their shopping experience. A report published in the United States of America indicates that one fifth of the Western European online retailing market was dominated by US businesses. Even though such loss of sales may be small, as the total of e-Commerce sales constitute a small fraction in most markets, this can have a dramatic effect on the profitability of businesses with high fixed costs.
In the meantime, customer loyalty can increase when online tools posses greater legal certainty in a borderless online marketplace. In order to save time and money to its business and consumers, the EU has recently undertaken a number of initiatives to simplify rules online. According to Eurostat, last year on average 57% of EU citizens ordered goods for parcel delivery using the internet.
The digital agenda for Europe guarantees its citizens and businesses high-speed internet and higher connectivity. This includes mobile phones and lower consumer prices. Another objective is for all EU citizens to have internet access and at much higher speeds by 2020.
The European Commission commits itself to work closely with the European Parliament and Member States as well as all interested stakeholders at all levels in all the Member States. In the coming months the commission will organise action-oriented stakeholder platforms, as well as an annual digital assembly, to be held in June, to assess progress and emerging challenges.
Brenda Azzopardi is a Research Analyst with MEUSAC