ABSTRACT
This chapter provides a comprehensive overview of the development and characteristics of the digital economy within the European Union. It begins by examining EU-level strategies and policies that support digital transformation, including the Digital Agenda for Europe, the Digital Single Market strategy and the current Digital Decade policy framework. The chapter outlines the institutional framework for digital governance and the main policy instruments driving investment in ICT infrastructure, innovation and digital skills.
The analysis then shifts to the comparative performance of EU member states based on indicators such as digital infrastructure, digital public services, e-commerce and digital skills – drawing on data from Eurostat and the Digital Economy and Society Index (DESI). It highlights significant disparities between Western and Northern Europe, which lead in digital readiness, and Eastern and Southern Europe, which lag behind in both infrastructure and human capital.
In addition, the chapter discusses the role of European funds in bridging the digital divide and fostering cohesion, as well as the regulatory efforts aimed at data protection, cyber security and digital competition. The chapter emphasizes the importance of coordinated policy, cross-border collaboration and targeted support to ensure an inclusive digital transition across the EU.
