We, at Sopra Steria, consider the EU’s Digital Decade strategy vital for Europe’s economic and social future. A prominent part of this scheme consists of regulations to defend European values. While we welcome this approach, we think that more can be done: the EU needs to involve European companies in the execution of its political aspirations. Amongst the many actions, we would like to highlight three.
Mohammed Sijelmassi is the CTO Sopra Steria.
First, public procurement of digital solutions should reach a level where it can make a difference. Second, a more specific issue, a European digital identity could become a trailblazer for digital transformation. Third, for decades, policymakers have been stressing education and skills improvement as key factors for EU competitiveness. The EU should work with European companies to shape this policy in the Member States. We need an agenda leading to a digital future tailor made for Europe.
Digital technologies will continue to shape the future of our economies and societies more than we can imagine, although we are already looking back to about five decades of Moore’s Law governing the progress of semi-conductors, fuelling what we call the digital revolution. This has led to a raft of innovative services and products that have changed our daily life. Yet, Europe’s ICT industry is lagging in many areas, companies with a global reach are predominantly US and China-based. It is thus important to question whether Europe is on the right path.
The EU has presented a Digital Decade strategy, at the backstop of its vision of digital sovereignty, with a conviction that Europe must gain competitiveness in this crucial area. The Commission refers to key technologies, such as AI, Cloud, 5G, or quantum computing. This is correct. However, the key to progress is not only technology, but lies also in complementary investments, for instance, skills or infrastructure, and bringing about a change in processes.
This Digital Decade strategy proposes several actions. Many of these are of regulatory nature, others provide financial support. We, at Sopra Steria, believe that European companies must take part in this endeavour and get involved as committed players.
It is ultimately the private sector that will invest, innovate and create jobs. Taking the example of the US and China, progress in digital is driven by private companies, however, also supported by their governments through big programmes and procurement. It is vital for EU governments and lawmakers to ensure focus on creating the right enabling framework for entrepreneurship, and to continue to support innovation. This is truer than ever.
Support for R&D, standards, and infrastructure is an important building block for a successful strategy. The EU is a regulatory super-power, and while regulation is needed, it will not propel Europe to the top on its own. Policymakers also need to avoid over-regulation. While recent EU legislative initiatives on digital – GDPR, AI Act, Data Act among others – have their merit, the accumulation of regulations brings complexity. Therefore, private companies request flexible and as far as possible less burdensome implementation of such laws.
In the short run, the EU and Member States should put more focus on public procurement that also benefits European companies. This is not to argue for protectionism – but international counterparts have a competitive advantage: the Pentagon has given Microsoft a multi-billion contract, while the city of Shenzhen has deployed more 5G base stations than France. The ‘Digital Europe Programme’ is an initiator for new ideas, but alone, it lacks critical mass. The recovery programme complements it well as 20% is supposed to go to digital, however, Member States should focus to advance digital services on a large scale.
The Commission and governments should seek to bring European companies closer to their decision making and establish intensive dialogues. European aligned procurement for digitalisation of health, education, traffic management or cities could be a significant change. This isn’t a call for governments to nurture national champions – as ultimately, companies must earn public contracts – but for a change in governments’ approach to public procurement.
A European digital identity could intensify such an approach, as introduced by the eIDAS Directive. We should see this solution as an authentication scheme rather than a kind of digital ID card or passport. The eIDAS has the potential to underpin many cross European services, enabling the critical mass that is needed.
In the long run, a reform of the education system will be decisive for the success of the Digital Decade’s ambitions. The need for skills development is a recurring policy mantra. We, as society and also the private sector, need to do more. We should get more young people, in particular women, to study science, technology, engineering and mathematics (STEM). Digital skills should become a major subject in education. Therefore, Sopra Steria will join the European ‘Digital Skills and Jobs Coalition’. Last but not least, the education sector needs to implement digital technologies for more efficient learning. The pandemic has shown how important remote learning is: we need to go beyond connectivity and enhance the way people can learn and study with modern methods.
Sopra Steria will take a more active role in supporting EU’s digital policy agenda. As a company, we focus on Europe. While we believe in the benefits of globalisation, we also think that Europe needs native companies that operate with European DNA and values.
Overall, the EU’s digital strategy shows the path to future. We are convinced that Member States fully align and avoid the multiplication of initiatives at the national level. If we want European digital sovereignty, we need to go beyond merely fostering technologies: we need companies, innovation and entrepreneurship.
Sopra Steria is a European tech leader helping clients drive their digital transformation through consulting, digital services and software development to get tangible and sustainable benefits. At Sopra Steria, we are committed to making the most of digital technology to build a positive future for our clients and society.