The EU is keen to ensure that European businesses, governments and citizens are at the forefront of shaping and participating in today’s global knowledge- and information- based economy. To achieve this the EU stimulates research into the development and deployment of information technology, establishes a framework of regulations to generate competition, and stimulates the development of applications and content, whilst also encouraging all citizens to participate in the information society.

The EU supports the use and development of Information and Communication Technologies (ICTs) as these are the industries that are important to a healthy future for Europe. The development of ICTs is needed to generate the economic growth that is required to fund the EU’s social model, to protect the environment and to improve the quality of life for all European citizens. While the ICT sector is currently worth nearly 8% of the EU’s GDP and plays a key role in promoting innovation throughout the economy, the EU still spends less than its competitors on ICT R&D. Furthermore, with 27 counties carrying out their own research programmes there is a lot of duplication. To minimise duplication and to encourage investment in ICTs, the EU has established an integrated approach aimed at achieving a European Information Society.

The EU focuses on three main areas of ICT: Regulation, Research and Promoting wider use. The EU wants to provide an evolving regulatory environment that emphasises competition, whilst also establishing a world-class research programme. These initiatives were recently carried out through the EU’s policy framework ‘i2010’. However, this has been replaced by the new initiative – The Digital Agenda – in 2010.

The Digital Agenda is Europe’s strategy for developing a thriving digital economy by 2020. It aims to maximise the benefit of the Digital Revolution for all. The Commission has identified the following seven areas as the most significant obstacles that the Digital Agenda needs to address:

• Fragmented digital markets
• Lack of interoperability
• Rising cybercrime and risk of low trust in networks
• Lack of investment in networks
• Insufficient research and innovation efforts
• Lack of digital literacy and skills
• Missed opportunities in addressing societal challenges

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Policy and Legislation

The Digital Agenda

The Digital Agenda is the EU’s strategy for achieving a thriving digital economy by 2020. As one of the seven flagship initiatives of the Europe 2020 Strategy, ICT is set to have a major role in Europe’s future. Demographic aging, increased global competition and the recent economic crisis, has exposed structural faults within the EU. The EU believes that ICTs are the route to getting Europe back on track to achieve the smart and sustainable growth that is hoped for. The Digital Agenda hopes not only to achieve this, but also to put in place the long-term transformation required for Europe to become a digital economy and information society.

The overall aim of the Digital Agenda is to deliver sustainable economic and social benefits from a single market based on fast and ultra fast internet and interoperable applications. To achieve this, the Agenda will focus on seven priority areas:

• Digital Single Market
  
  A Digital Single Market is necessary to deliver the benefits of the digital era to all. Currently, too many barriers block the free flow of online services and entertainment across national borders. To remove these obstacles the EU will: simplify copyright clearance, management and cross-border licensing; complete the Single Euro Payment Area; Secure eAuthentication systems and revise the Signature Directive; and review the EU’s data protection regulatory framework.

• Interoperability and Standards
  
  To build a truly digital society, Europe needs effective interoperability between ICT products and services. To achieve this seamless interaction, the EU will propose legal measure to reform the rules on implementation of ICT standards.

• Trust and Security
  
  For the digital age to be embraced, Europeans need to trust the technology. This means tackling cybercrime by making online transactions safer and reducing the threats of online fraud, software attacks and viruses. To combat cybercrime the EU will propose tough laws for cyber-attacks, establish a rapid response system to cyber-attacks and support hotlines where people can report illegal online content.

• Very Fast Internet
  
  Fast internet is vital for the economy to grow strongly and to create jobs and prosperity. Furthermore, it needs to be competitively priced and widely available to ensure citizens can access the content and services they want. The EU aims to bring basic broadband to all Europeans by 2013. By 2020, the EU intends for all European citizens to have access to high internet speeds of above 30Mbps. To accomplish this ambitious goal, the EU will reinforce the funding of high-speed broadband through EU instruments.

• Research and Innovation
  
  To establish Europe as world-class in the field of ICT, Europe needs to maintain a competitive edge. However, currently there is a large gap in investment in ICT R&D. The EU aims to provide the crucial funding needed by leveraging more private investment into the sphere, whilst also developing lighter ways for SMEs and young researchers to access EU funding for ICT research.

• Enhancing e-skills
  
  30% of Europeans have never used the internet at all. As increasingly more daily tasks are carried out online, it is important that all people are equipped with the skills necessary to participate in the new digital era. Moreover, Europe is suffering from a growing professional ICT skills shortage and could lack the competent practitioners to fill as many as 700,000 IT jobs by 2015. To overcome this e-illiteracy, the EU will list digital literacy and competences as a priority for the European Social Fund.

• ICT for Social Challenges
  
  Digital technologies have not only the potential to benefit everyone’s daily lives but to also tackle social challenges. The Digital Agenda aims to focus on ICTs capability to reduce energy consumption, support citizens’ aging, revolutionise health services and deliver better public services.

Seventh Research Framework Programme (FP7)

The Seventh Framework Programme for Research and Technological Development is the EU's main instrument for funding research in Europe. It will operate between 2007-2013.  FP7 is made up of 4 main blocks of activities forming 4 specific programmes plus a fifth specific programme on nuclear research. These include:

• The Co-operation  Programme
• The Ideas Programme
• The People Programme
• The Capacitites Programme

FP7 includes a thematic priority for ICT under the specific programme ‘Co-operation.’ ICTs play a crucial role in boosting innovation, creativity and competitiveness of all industry and service sectors. Funding for research in this area is available under FP7, with 9.1 billion EUR budgeted for ICT. ICT received the highest proportion of funding among the 9 thematic areas. For more on FP7, click here.