Regional Policy in Europe Sevilla 17.12.2013 “Regional Digital Agendas"

1. Regional Policy in EuropeSevilla 17.12.2013“Regional Digital Agendas" Miguel Gonzalez-Sancho European Commission DG Communications Networks, Content and Technology

2. Overview • Digital Agenda and scoreboard • Broadband • Cohesion policy and ICT • Jobs & skills; Horizon 2020; conclusions

3. Europe 2020: 7 flagships • Digital Agenda for Europe • Youth on the move • Innovation Union • Industrial policy for globalisation era • New skills for jobs • EU Platform against poverty • Resource efficient Europe • Digital technology matters for Growth & jobs… Political context: EU2020 to DAE

4. Fast & ultra-fast Internet access 100 actions (+ 32 after review), targets Using ICT to help society A vibrant digital single market Trust & Security Research & innovation Digital literacy, skills & inclusion Interoperability & standards (+ cloud computing, after DAE review) Digital Agenda logic: networks, services, demand…

5. DAE High Level Group Going Local 2013 Digital Agenda governance

6. Acciones de la Agenda Digital, situación el 17.12.2013 • Total acciones: 101 (DAE 2010) + 30 (revisión 2010) = 131 • Acciones concluidas: 64 (DAE 2010) + 14 (revisión 2010) = 78 • Acciones conformes al calendario previsto: 27 (DAE 2010) + 16 (revisión 2010) = 43 • Acciones atrasadas: 7 (DAE 2010) + 1 (revisión 2010) = 8 Details on each action (update 12.06.2013) available at: https://ec.europa.eu/digital-agenda/sites/digital-agenda/files/130606%20DAE%20actions%20progress%20incl%20review%20FINAL.doc%5B1%5D.pdf

7. DAE – Objetivos clave • 1. Objetivos de banda ancha: • Banda ancha de base en 2013 para 100 % de ciudadanos de la UE. • Banda ancha rápida (> 30 Mbps) en 2020 para 100 % de ciudadanos de la UE. • Banda ancha ultra-rápida (> 100 Mbps) en 2020 para 50 % de hogares europeos. • 2. Mercado único digital: • En 2015, 50 % de la población debe hacer compras en línea. • En 2015, 20 % de la población debe hacer compras en línea transfronterizas. • En 2015, 33 % de las PME deben hacer compras/ ventas en línea. • En 2015, tarifas de roaming casi igual a tarifas de comunicaciones nacionales • 3. Inclusión digital: • Aumento del uso regular de Internet de 60 % a 75 % en 2015 y de 41 % a 60 % para GRUPOS desfavorecidos. • Hasta 2015, reducción del porcentaje de la población que nunca ha usado Internet a la mitad (al 15 %) • 4. Servicios públicos: • En 2015: 50 % de los ciudadanos deben recurrir a administración pública en línea e mas de la mitad rellenar y enviar formularios. • En 2015, deben estar disponibles en línea todos los servicios públicos esenciales transfronterizos incluidos en la lista a aprobar por los Estados Miembros para el 2011. • 5. Investigación e innovación: • Duplicar la inversión pública, hasta alcanzar 11.000M€. • 6. Economía con baja emisión de carbono : • Promocionar la iluminación de bajo consumo: en 2020, reducción global como mínimo del 20 % del consumo de energía en alumbrado.

8. Scoreboard 2013 To find out more visit www.ec.europa.eu/digital-agenda/en/scoreboard https://ec.europa.eu/digital-agenda/en/scoreboard/portugal

9. Standard fixed broadband* availability Basic broadband for all by 2013 adding wireless, EU coverage is 99.97% *xDSL, Cable, FTTP and WiMax; Source: Point Topic 9

10. NGA* availability (54% of EU homes) At least 30 Mbps for all by 2020 But only 12% of EU rural areas are covered * Next Generation Access (NGA): VDSL, Cable Docsis 3.0 and FTTP; Source: Point Topic 10

11. Fixed broadband lines penetration in the EU 28.8% (lines as a % of population)(equivalent to 72.5% of EU homes subscribing to broadband) Fixed broadband take-up Source: Communications Committee 11

12. 14.8% of EU fixed broadband subscriptions are at least 30 Mbps and 3.4 % at least 100 Mbps Fixed broadband lines by speed Source: Communications Committee 12

13. 2% of Europeans have never used the Internet, 70% are regular Internet users (at least once a week) (2012) Source: Eurostat 13

14. Citizens engaging in eCommerce (domestic & cross border)(% of all citizens, 2012) Source: Eurostat 14

15. eCommerce: SMEs selling online(% of all SMEs, 2012) Source: Eurostat 15

16. eGovernment • Electronic interaction by citizens* with public authorities (2012) Source: Eurostat *Citizens aged between 25 and 54 16 Source: Eurostat

17. Take-up of eGovernment by SMEs eGovernment While most large enterprises already use eGovernment services the take-up by SMEs is slow Source: Eurostat 17

18. Levels of computer skills (2012) Source: Eurostat Moreover: in 2011, only 53% of European labour force judged their computer or Internet skills to be sufficient if they were to look for a job or change job within a year (Eurostat). 18

19. Difficulties in recruiting ICT professionals 3% of EU Enterprises that recruited ICT specialists, had difficulties in filling IT vacancies Source: Eurostat 19

20. Overview • Digital Agenda and scoreboard • Broadband • Cohesion policy and ICT • Jobs & skills; Horizon 2020; conclusions

21. Broadband drives competiveness "An increase in the broadband penetration rate by 10 percentage points raises annual growth in per-capita GDP by 0.9 to 1.5 percentage points" (Czernich et al. - CESIFO WORKING PAPER NO. 2861, Ifo Institute for Economic Research, 2009)

22. Map of NGA broadband coverage (2012)

23. EU broadband policy – key areas Market framework Financing and funding • Cost reduction initiative • eComms regulation, e. g. Recommendation on non-discrimination and costing methodologies • Demand Stimulation • Single EU authorisation • European inputs: Spectrum and access products • Single consumer space: Net neutrality, harmonised end user rights, roaming • European Structural and Investment Funds (ESIF) • Connecting Europe Facility (CEF) • Broadband state aid guidelines Single market for eComms 23

24. Cost reduction measures Regulation on measures to reduce the cost of deploying high-speed electronic communications networks Investment costs are expected to be reduced by 20% to 30%  potential savings up to 60 bn EUR across the EU Increased use of passive infrastructures suitable for high speed internet network rollout Increased cooperation in civil engineering works • Proposal adopted by the College on 26 March 2013 • Adoption envisaged by Q2 of 2014 Streamlined permit granting procedures Increased number of buildings ready for high speed internet access 24

25. Connected continent proposal

26. EU financing for broadband EU financing European Structural and Investment Funds (ERDF and EARDF): grants and financial instruments Connecting Europe Facility (CEF): Some complementary EU support by means of financial instruments Currently project bonds pilot –open for project proposals Possibly greater EIB lending activity in ICT/broadband following capital increase 26

27. Overview • Digital Agenda and scoreboard • Broadband • Cohesion policy and ICT • Jobs & skills; Horizon 2020; conclusions

28. ICT and the Information society - A vision of Convergence ICT : not just a "sector" (telecom) > enabler for all socio-economic sectors Broadband : from "nice-to-have" to "must-have" > pre-condition for growth and productivity ICT : no longer "hardware v.s. software" > cloud computing, mobility and ubiquity Convergence of ever faster networks withever smarter devices and ever richer contents 28

29. Basics on current Cohesion Policy ICT uptakeis not easyeverywhere! Funds allocated to ICTs in 2007-13: • over EUR 15 billion or 4.4% of the total cohesion policy budget. • Shift in the investment priorities from infrastructure to support for content development, both in the public sector (eHealth, eGovernment, etc.) and for SMEs (eLearning, eBusiness, etc.) Cohesion Policy

30. Absorption rate as of 2012 30

31. Thematicobjectives • Research and innovation • Information and Communication Technologies • Competitiveness of Small and Medium-Sized Enterprises (SME) • Shift to a low-carbon economy • Climate change adaptation and risk management and prevention • Environmental protection and resource efficiency • Sustainable transport and disposal of congestion on major network infrastructure • Employment and support for labour mobility • Social inclusion and poverty reduction • Education, skills and lifelong learning • Increased institutional capacity and effectiveness of public administration smart Europe 2020 sustainable inclusive

32. Thematic concentration in Cohesion Policy SME competitiveness Energy Innovation Public procurement of innovative solutions Eco-innovation Human Capital Skills Mobility New business models Entrepreneurship skills ICT Smart Grids E-skills R&I infrastructures Open Data E-commerce Researchers Public sector Innovation +admin. capacity E-government Broadband

33. Thematic concentration of the ERDF Energy efficiency and renewable energy Research and Innovation SMEs competitiveness + ICT access, quality and use Concentration on "two or more of the thematic objectives 1, 2,3 and 4" Less developed regions Developed regions and transition regions Transition regions: 60 % concentration (incl. 15% for energy/renewables) Flexibility (different regions present different needs)Special arrangements for the previously convergence regions

34. Calendar for partnership agreements & OPs European Territorial Cooperation ("INTERREG") programmes Country / region specific Operational programmes Partnership Agreement 2nd half of 2013 General regulation adopted Max 4 months RIS3 Partnership Agreement Submitted (MS) Max 3 months Max 3 months All OPs incl. Ex-ante eval. (except ETC) (MS) Observations by EC Max 9 months Max 1 month Max 3 months Partnership Agreement Adoption ETC OPs (MS) Observations by EC Max 3 months Max 3 months Observations by EC OP Adoption (EC) Max 3 months ETC OP Adoption (EC) Is already on-going on an informal basis … 34

35. Ex-ante conditionalities Thematic Objectives Ex-ante conditionality "Digital Growth" Strategic policy framework: - R&I Smart Specialisation Strategy (RIS3) and/or - National/Regional Digital Agenda N°1 Research and innovation N°2 - ICT use and quality - ICT access All otherThematicObjectives Vision of CONVERGENCE Next Generation Network (NGN) Plan Corresponding ex-ante conditionalities Cohesion Policy

36. Thematic Objective 2: Enhancing access to + use and quality of, information and communicationtechnologies Investment prioritiesunder TO 2: a) diffusion of broadband and high speed networks, supporting adoption of emerging technologies and networks for the digital economy b) development of ICT products and services, electronic commerce and increased demand for ICT c) strengthening the application of ICT for eGovernment, eLearning, eInclusion and eHealth • Ex ante conditionalities: • Next Generation Access • Plan • Strategic policy framework for digital growth (also in RIS3)

37. Criteria for assessing the Digital Growth Strategies A Plan based on Economic Analysis • Explicit methodology and data sources including involved stakeholders • Existing & planned infrastructures • Map on two dimensions : coverage/access and take-up/subscription • Market failures in the socio-economic context (topography, pop. density, demand factors – e.g. affordability, education, etc.)

38. Criteria for assessing the Digital Growth Strategies A SWOT analysis (or similar) consistent with Digital Agenda Digital Agenda Toolbox • http://s3platform.jrc.ec.europa.eu/digital-agenda Digital Agenda Scoreboard Indicators • http://ec.europa.eu/digital-agenda/en/create-graphs • http://digital-agenda-data.eu/datasets/digital_agenda_scoreboard_key_indicators/indicators

39. Ex-ante conditionalities Ex-ante conditionality N°2(2) for ICT infrastructure Modifications by: Council + EP

40. Criteria for assessing the NGN Plans A Plan that is operational Target & Indicators – benchmarking with the Digital Agenda Scoreboard • http://ec.europa.eu/digital-agenda/en/create-graphs • http://digital-agenda-data.eu/datasets/digital_agenda_scoreboard_key_indicators/indicators Availablebudgetaryresources • Public fundingat EU, national, regionallevels • Other sources : private, banks List of plannedinvestments • Objectives, estimatedcost, coverage • Periodically up-dated

41. Criteria for assessing the NGN Plans A Plan of sustainable models • Envisaged investment models • Broadband investment Guide • Use of grants, financial instruments ? • Regulatorymeasures to stimulateprivateinvestment • Cost-reductionmeasures • Radio spectrum

42. Criteria for assessing the NGN Plans Identifying the priorities & capacity Priorities and budgetisation • available budgetary resources for ICT interventions • sources of finance at EU, national and other sources Administrative Capacity • Self analysis: intermediate bodies and beneficiaries • Remedial actions

43. Overview • Digital Agenda and scoreboard • Broadband • Cohesion policy and ICT • Jobs & skills; Horizon 2020; conclusions

44. Grand Coalition5 Policy Clusters • ICT TRAINING: • Online ICT learningplatforms • Smart grid training, etc. • NEW LEARNING: • Industry/education provider collabor. • MOOC for secondaryteachers • CERTIFICATION: • Support roll-out of common • eCompetencesframework • MOBILITY: • Launch mobility assistance services • AWARENESS RAISING: • GetOnlineWeek

45. Europe 2020 priorities Shared objectives and principles • Tackling Societal Challenges • Health, demographic change and wellbeing • Food security, sustainable agriculture and • the bio-based economy • Secure, clean and efficient energy • Smart, green and integrated transport • Climate action, resource efficiency and raw • materials • Inclusive, innovative and reflective societies • Secure Societies • Creating Industrial Leadership and Competitive Frameworks • Leadership in enabling and industrial technologies • ICT • Nanotech., Materials, Manuf. and Processing • Biotechnology • Space • Access to risk finance • Innovation in SMEs ICT ICT ICT ICT ICT ICT ICT EIT JRC • Excellence in the Science Base • Frontier research (ERC) • Future and Emerging Technologies (FET) • Skills and career development (Marie Curie) • Research infrastructures ICT ICT Simplified access Dissemination & knowledge tranfer Common rules, toolkit of funding schemes

46. European Council of 24-25.10.2013; digital economy and innovation • Complete Digital Single Market • Access to and portability of content and data across the single market • EC legal proposals on telecoms: connected continent; broadband engineering costs • EC legal proposals on trust and security: e-ID; network information security; e-invoicing/ payments; data protection; web accessibility • Data, cloud, open government • Taxation of the digital economy • Skills • Research and innovation

47. Conclusions • Digitally-driven transformation is unstoppable; Europe cannot stay behind • Need for public sector strategies; European/ national/ local digital agendas • Remove barriers in the European space; towards a Digital Single Market • Build European capacity: networks, data/ cloud, skills, R&D&I, industrial base… • New EU legislature will start in 2014; in any case, the future is digital…

48. Gracias ec.europa.eu/digital-agenda blogs.ec.europa.eu/digital-agenda @DigitalAgendaEU DigitalAgenda