Digital technologies are transforming economic opportunities, a trend being accelerated as businesses and workers respond to the COVID-19 pandemic. The potential to raise productivity and to expand opportunities for firms that are small or in less developed locations is real. But it is not being fully realized according to Europe 4.0: Addressing the Digital Dilemma, launched today. The evidence shows a tension in the region’s presence in the digital space and in building a vibrant digital economy that benefits more people. Those technologies where European firms are most competitive are those where the benefits are most concentrated in larger firms and existing production hubs; those technologies with the greatest potential for inclusion are those where European firms are less competitive.
“Europe is a global leader in a number of operational technology fields such as smart robotics and 3D printing. But it lags in the spheres of transactional technology, such as online retail and ride-sharing, and informational technology, such as cloud computing and social media. The Europe 4.0 report suggests Europe can pursue opportunities to use technology to do more as countries seek greater market inclusion, competitiveness, and convergence,” Gallina A. Vincelette, Director for the European Union Countries at the World Bank.
Despite its advantages in operational technology, however, Europe also faces challenges in this area, including the fact these technologies tend to foster geographic concentration. It can also make it more difficult for smaller firms to compete without access to high cost advanced technologies.
“Encouraging the use of digital platforms can foster job creation,” said Vincelette. “The report shows that nearly two-thirds of firms in Europe that implemented digital platforms in their businesses experienced an increase in employment growth over the past three years. These benefits have been reinforced during the COVID-19 pandemic, with more reliance on technology and home-based work reducing operational costs and increasing competitiveness and market inclusion. In the context of the pandemic, digital connectivity has become an essential public good and prerequisite for business and operational continuity.”
While the report notes that transactional technologies have the biggest potential to boost market inclusion and geographic convergence in the region, only one in three small and medium enterprises in Europe use these platforms; and even fewer are globally competitive.
Informational technologies can also boost market inclusion by closing the labor productivity gap between large and small firms – with these technologies disproportionately benefiting small firms due to the low fixed cost of installation relative to hardware and the elimination of upfront capital expenditure. However, traditional informational technologies have not enabled greater geographic convergence in Europe.
According to the report, Europe can make progress on its digital agenda by embracing new technologies in ways that can boost simultaneously economic competitiveness, market inclusion, and geographic convergence. Reforms and investments focusing on scaling markets, shaping the commercial use of data, and smoothing the adoption of technology will help Europe achieve its triple digital objectives without compromising its social values. Completing the digital single market and closing gaps in infrastructure, skills, and logistics can help scale markets, while addressing challenges posed by AI in ways that are aligned with data privacy priorities can help inform the commercial use of data.
Finally, investments in frontier innovation, support to research and development, and capacity-building initiatives can help smaller firms and firms in lagging regions adopt technology more quickly.
Focus on the recovery from the pandemic at the 19th EU Regions Week
The annual European Week of Regions and Cities has shown how the EU and national and regional governments can support European citizens and their local communities with public policies aimed at investing in a fairer, greener and more digital future for recovery. Under the theme ‘Together for Recovery’, more than 300 sessions, including debates with high-profile officials, regional and local representatives, an inspiring Citizens’ Dialogue, various workshops as well as an Award for outstanding young journalists, celebrated the EU values of cohesion and solidarity.
Taking place in a hybrid format, with sessions both physical and virtual, the 19th EU Regions Week had one main mission: highlighting the role of EU investments in the recovery from the pandemic and in facing common challenges. The event kicked off with a press conference with Apostolos Tzitzikostas, President of the European Committee of the Regions (CoR) and Elisa Ferreira, Commissioner for Cohesion and Reforms, who underlined that “Cohesion Policy was one of the first responders in the emergency phase of the COVID-19 pandemic, driven by the core value of EU solidarity”.
The second annual local and regional barometer was presented by Apostolos Tzitzikostas, followed by a debate with members of the European Committee of the Regions. The report confirmed that the pandemic related measures put at risk regional and local finances, resulting in a 180 billion budget cut for local and regional authorities across Europe. At the same time, 1 in 3 local and regional politicians want regions and cities to become more influential in EU policy-making on health issues.
“Unless we measure the state of our regions and cities, we cannot understand the state of our Union” said Apostolos Tzitzikostas, President of the European Committee of the Regions. “Only by taking the pulse of our communities, we can decide how effective the EU has been on the ground, and what the EU needs to do to help its people”.
Further taking stock of the EU cohesion policy response to the coronavirus pandemic as well as informing the general public, various workshops touched upon life before and after the pandemic, including explanations regarding the role of regions and cities for a Green Transition, the Cohesion Policy 2021-2027 and NextGenerationEU, as well as the CRII, CRII+, React-EU support packages for regional and local healthcare services and equipment.
Young journalists were also invited to take part in the EU Regions Week 2021, getting the opportunity to debate with Elisa Ferreira at the Citizens’ Dialogue. In the Youth4Regions programme for aspiring journalists, Irene Barahona Fernandez from Spain and Jack Ryan from Ireland won the 2021 Megalizzi-Niedzielski prize for aspiring journalists.
About the event
In total, more than 12 000 participants and 900 speakers joined the 4-day event either physically or online, showing engagement in all corners of EU society – from our vibrant youth to our high-profile officials, local and regional representatives, academic experts and professional specialists, displaying a common readiness to tackle what the future holds, together.
EU and Qatar sign landmark aviation agreement
The European Union and the State of Qatar today signed a comprehensive air transport agreement, upgrading rules and standards for flights between Qatar and the EU. The agreement sets a new global benchmark by committing both sides to fair competition, and by including social and environmental protection. The signing means new opportunities for consumers, airlines and airports in Qatar and the EU.
Qatar is an increasingly important aviation partner for the EU. It was the 15th largest extra-EU market in 2019 with 6.3 million passengers travelling between the EU and Qatar. Ensuring open and fair competition for air services between both is therefore crucial, also for routes between the EU and Asia.
Adina Vălean, Commissioner for mobility and transport, said: “This agreement, the first one between the EU and the Gulf region, is a global benchmark for forward-looking aviation agreements. It is testimony to our shared commitment to economically, socially and environmentally sustainable aviation, based on a modern framework covering fair competition and closer cooperation on social and environmental matters. This agreement will bring new opportunities, more choice and higher standards for passengers, industry and aviation workers.”
Today’s agreement creates a level playing field that is expected to result in new air transport opportunities and economic benefits for both sides:
- All EU airlines will be able to operate direct flights from any airport in the EU to Qatar and vice versa for Qatari airlines.
- EU airports in Germany, France, Italy, Belgium and the Netherlands will be subject to a gradual build-up of capacity until 2024. For more details on this, see the Q&A.
- Strong provisions on open and fair competition will guarantee a level playing field.
- The parties recognised the importance of social matters, agreed to cooperate on these and to improve their respective social and labour laws and policies as per their international commitments.
The agreement will facilitate people-to-people contacts and expand commercial opportunities and trade. Going beyond traffic rights, the EU-Qatar agreement will provide a single set of rules, high standards and a platform for future cooperation on a wide range of aviation issues.
Qatar is a close aviation partner for the European Union; more than 6 million passengers travelled between the EU and Qatar per year under the existing 26 bilateral air transport agreements with EU Member States prior to the pandemic. While direct flights between most EU Member States and Qatar have already been liberalised by those bilateral agreements, none of them include provisions on fair competition, or social and environmental issues, which the Commission considers essential for a modern aviation agreement.
In 2016, the European Commission obtained authorisation from the Council to negotiate an EU-level aviation agreement with Qatar, which started on 4 March 2019. While the agreement still needs to be ratified by the parties before formally entering into force, it will start being applied from today’s signature.
Similar EU comprehensive air transport agreements have been signed with other partner countries, namely the United States, Canada, the Western Balkans, Morocco, Georgia, Jordan, Moldova, Israel and Ukraine. Further air transport agreements with Armenia and Tunisia are expected to be signed in the coming weeks.
Sakharov Prize 2021: the finalists
The 2021 finalists for the European Parliament’s Sakharov Prize for Freedom of Thought are Afghan women, Jeanine Áñez and Alexei Navalny.
Meet this year’s finalists of the European Parliament’s Sakharov Prize for Freedom of Thought, who were chosen at a joint meeting of the foreign affairs and development committees on 14 October:
- Afghan women, represented by 11 human rights activists
- Jeanine Áñez, Bolivian politician
- Alexei Navalny, Russian activist and political prisoner
Under the previous Taliban regime, women experienced forced marriage, high maternity mortality, low literacy, forced virginity tests and couldn’t travel without a man. Following the Taliban’s return to power, women are again excluded from government and education and their rights and freedoms are threatened. The women, who are nominated for their brave fight for equality and human rights, are:
- Shaharzad Akbar – chair of the Afghan Independent Human Rights Commission (AIHRC)
- Mary Akrami – head of the Afghan Women’s Network
- Zarifa Ghafari – mayor of Maidan Shar since 2018
- Palwasha Hassan – activist and the director of Afghan Women Educational Centre (AWEC)
- Freshta Karim – founder of a mobile library and an advocate for education and learning
- Sahraa Karimi – first female president of the Afghan state film company
- Metra Mehran – women empowerment and education advocate and co-founder of the Feminine Perspectives Movement
- Horia Mosadiq – human and women’s rights activist
- Sima Samar – human rights advocate, former Minister of Women’s Affairs and former chair of Afghan Independent Human Rights Commission
- Habiba Sarabi – member of the negotiating team of the Islamic Republic of Afghanistan
- Anisa Shaheed – political reporter
Jeanine Áñez is a Bolivian politician who became the interim president of her country in November 2019, after alleged electoral fraud by incumbent Evo Morales. In November 2020, after free and fair elections there was a peaceful transfer of power. However, on 13 March 2021 she was arrested on charges of “terrorism, sedition and conspiracy”. Accused of plotting a coup d’état against Morales, she has been imprisoned ever since.
Alexei Navalny is a Russian opposition politician, anti-corruption activist and major political opponent of Russian president Vladimir Putin. Known through his LiveJournal blog, YouTube and Twitter accounts, where he has millions of followers Navalny came to international prominence by organising demonstrations, running for office and advocating reforms against corruption in Russia, Putin and his government. In August 2020, while on a trip to Siberia, he was poisoned. He spent months recovering in Berlin, but returned to Moscow in January 2021 where he was arrested. In February he was sentenced to 2½ years in prison. Now incarcerated in a high-security penal colony, he went on a 23-day hunger strike in April to protest the lack of medical care. In June 2021, a Russian court banned Navalny’s regional offices and his Anti-Corruption Foundation.
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