How can we bridge the digital divide in Europe?

By Oliver Rolofs
Efficient, transparent and citizen-centred administrative systems - this is the goal of smart governance and was enshrined in the EU Data Governance Act, which came into force in 2022, in order to increase Europe's competitiveness. As an important pillar of the European data strategy, this regulation also aims to increase trust in data sharing, strengthen mechanisms to increase data availability and overcome technical barriers to the reuse of data. The targeted use of digital technologies and innovative methods is primarily intended to drive the modernisation of administrative processes and make public services more efficient. 

Two years after the Data Governance Act came into force, the digital and e-governance gap in Europe is widening. 

Global indices such as the UN E-Government Development Index (EGDI) reveal these significant differences in the implementation and use of digital administrative services within Europe and beyond. While Denmark and Estonia rank at the top according to the EGDI 2022, Germany is in the European midfield - not immune to further decline, while other world regions such as Central Asia or the Gulf States are catching up at a rapid pace in the public provision of digital processes.

While countries such as Estonia or Denmark offer almost all government services digitally and are internationally recognised with initiatives such as e-residency or the borger.dk portal, Germany for instance is lagging behind. 

Although Germany has long been regarded as Europe's economic engine, the German administration in particular has enormous difficulties in pushing ahead with digitalisation. Bureaucratic hurdles, slow decision-making processes and a fragmented IT infrastructure are just some of the challenges that Germany has to overcome. The fax machine still rules in many German authorities, while citizens' frustration with slow and complex administrative processes is increasing and trust in public administration is declining.

Lack of innovation and digitalisation: Germany's competitiveness at an all-time low

According to the International Institute for Management and Development (IDM), a lack of economic innovation, inadequate infrastructure and digitalisation on a par with Venezuela are the main reasons for Germany's loss of competitiveness in international comparison. While Germany was still in 6th place 10 years ago, by 2024 it will only be in 24th place in the international competitiveness ranking.

Only Denmark, Ireland, Switzerland and the Netherlands made it into the current top 10 for global competitiveness as EU members, while the remaining EU states are increasingly being pushed further down the midfield by up-and-coming newcomers such as the United Arab Emirates. With its highly developed digital infrastructure and efficient digitalisation of administrative processes, Denmark is demonstrating the extent to which the consistent implementation of smart governance also influences global competitiveness. However, not only Germany, but also other European member states such as France, Greece, Hungary and Italy are barely able to position themselves in areas such as smart governance or e-government. 

If the EU Data Governance Act is to become a competitive driver for Europe's economy and efficient administration after all, it is worth taking a look at the Gulf region as well as Denmark. 

European “super app”?

The United Arab Emirates is currently showing an example that the administrations of European member states can use as a valuable case study for futureproofing their policies. Recently, the first register-based census was conducted in the emirate of Abu Dhabi, revealing a population increase of 83% in 2023compared to the last census ten years ago. For the public administration of the growing Gulf emirate, the results provided important insights for a future smartallocation of public services such as education, health or transport. Obviously, reliable data collection will enable Abu Dhabi’s effective economic policy making, which, historically, has been a challenge for many European countries.

Another way in which Abu Dhabi, a tech-savvy and growing society, is creating this modern e-governance infrastructure environment is through a user-friendly and efficient “super app” which enables residents to accesspublic services through a single portal. Something the European member states must consider replicating as soon as possible to keep up with the times and its promises to the people.

Europe's path to digital sovereignty 

The cornerstones for a sustainable Europe must therefore be the targeted promotion of innovation and entrepreneurship, a Europe-wide functioning infrastructure and uniform digitalisation standards. There are “home-grown” champions – such as Estonia and Denmark – and places like Abu Dhabi that can serve as a case study for how smart governance approaches can be effectively implemented.

Only with a coordinated European strategy is a rethink towards a competitive global player as a business location in Europe possible. 

The next European Commission must therefore play a decisive role in coordinating and supporting these developments in order to restore citizens' confidence in a modern and efficient Europe. A joint approach can help Europe to take the lead in the global competition for digital sovereignty and innovation.

Oliver Rolofs is a German strategic security and communication expert and the Co-Founder of the Munich Cyber Security Conference (MCSC).He serves as director of the Vienna-based Austrian Institute for Strategic Studies and International Cooperation (AISSIC) and also runs the Munich-based strategy consultancy, COMMVISORY.

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