European Commission | 2025 State of the Digital Decade package

The Commission’s State of the Digital Decade 2025 report shows that each Member State has adopted a roadmap detailing the actions and budget to advance their digital transformation in line with the Commission’s recommendations following last year’s report.

The third annual report assesses the EU’s progress along the four pillars for the EU’s digital transformation, highlighting achievements and gaps while proposing concrete recommendations to Member States:

1. Digital infrastructures: Although there are certain advancements, the rollout of connectivity infrastructure, such as fibre and 5G stand-alone networks, is still lagging. Data shows certain improvements in the deployment of edge nodes, allowing for a faster data processing with lower energy consumption. Submarine data cables and satellite systems remain under-developed and vulnerable to external dependencies and security risks.
2. Digitalisation of businesses: Adoption of Artificial Intelligence (AI), cloud and big data by companies has improved, however it needs to accelerate. The EU remains dependent on external providers for AI and cloud services – often used in public services – as well as the production of semiconductors and quantum infrastructure components.
3. Digital skills: Just over half of Europeans (55.6%) have a basic level of digital skills, which are fundamental for societal resilience to online threats, including those affecting information integrity, mental wellbeing and minors. The availability of ICT specialists with advanced skills remains low and with a stark gender divide, hindering progress in key sectors, such as cybersecurity and AI.
4. Digitalisation of public services: In 2024, the EU made steady progress in digitalising key public services. A substantial portion of governmental digital infrastructure continues to depend on service providers outside the EU.

Significant challenges, such as fragmented markets, overly complex regulations, security and strategic dependence, persist. The report underlines potential benefits of bold action, which could boost the EU GDP by an additional +1,8% by 2030.

Further public and private investment and easier access to venture capital for EU companies would accelerate innovation and scale up. The EU must also implement structural reforms to strengthen and integrate its Single Market.
Finally, the EU should accelerate simplification efforts and ease the administrative burdens on EU companies. Deeper involvement of cities and regions in the Digital Decade presents an opportunity for a more impactful and inclusive digital transformation.

Member States will review the Commission’s recommendations and discuss the way forward with the Commission.

In 2026, the Commission will review the DDPP’s targets to assess whether they still reflect the evolving digital landscape and meet the demands of the EU’s priorities and ambitions.