EU says digital economy can lift Europe out of crisis

European Commission launches Digital Competitiveness report and consultation on future digital strategy

Reding: Seize the opportunity

The European Commission says the digital economy can lift Europe out of the economic crisis, according to its Digital Competitiveness report, published today.

The Commission has also launched a consultation, to close on 9 October, polling the public on what future strategy the EU should adopt to make the digital economy run "at full speed".

There are nine questions in the consultation on the future of the information society, such as: "How can Europe raise its performance in crucial IT research and innovation?" and "How can the web aid modernisation of public services so that they are easily accessible to all EU citizens?"

Viviane Reding, EU commissioner for information society and media, said that Europe's digital economy has tremendous potential to generate huge revenue across all sectors. However, to turn this advantage into sustainable growth and new jobs, governments must "show leadership by adopting co-ordinated policies that dismantle existing barriers to new services," she said.

According to the report, 56 per cent of Europeans now regularly use the internet, with 80 per cent using a high-speed connection. Mobile subscriber rates indicate a take-up rate of 119 per cent – an average of more than one phone per person.

"Europe can advance even further as a generation of digitally savvy young Europeans becomes a strong market driver for growth and innovation," says the report.

Reding said: "We should seize the opportunity of a new generation of Europeans who will soon be calling the shots in the European market."

To release the economic potential of these highly demanding "digital natives ", "we must make access to digital content an easy and fair game," said Reding.

But the report also warned that Europe is still behind the US and Japan with respect to IT research and development investment.

"[The EU] must ensure that everyone has a high-speed internet connection and that there is an online single market, where people can easily use online services across borders," the report said.

The EU's i2010 strategy, which was designed to boost IT in Europe and, " unlock the benefits of the information society for European growth and jobs," was adopted by the Commission in July 2005 and closes this year.

The consultation launched today will help the Commission with its Digital Europe strategy, launched by Reding on 9 July.