Changes from report parliamentary committee draft to plenary report

AddedAS. whereas 60 % of EU companies report difficulties in recruiting skilled workers in areas such as AI, cybersecurity and clean technologies, posing a significant barrier to innovation, competitiveness and the green and digital transitions;

AddedAT. whereas current labour market developments, including global lay-offs and political instability outside the EU, create an opportunity to attract high-skilled digital talent to the EU;

AddedAU. whereas increasing competitiveness and resilience require appropriate funding; whereas public funding can act as a catalyst and private investment and competitive market forces are key for the long-term development of digital infrastructure;

AddedAV. whereas a robust, agile and excellence-driven research and innovation (R&I) ecosystem is essential to ensure the EU’s global competitiveness and leadership in strategic technologies, such as quantum and AI;

AddedAW. whereas standardisation is at the core of genuine European digital and technological sovereignty; whereas the importance of standards is growing due to increasing technological competition across the world, particularly with the United States and China;

AddedAX. whereas the EU is committed to negotiating comprehensive digital trade agreements (DTAs) to promote secure, resilient and competitive digital infrastructure development with partner countries;

AddedAY. whereas the Commission has announced landmark DTAs with South Korea and Singapore, setting an important precedent for future agreements;

AddedAZ. whereas Parliament and the Council have agreed on the ‘EU horizontal provisions on Cross-border data flows and protection of personal data and privacy in the Digital Trade Title of EU trade agreements’, which was endorsed by the Commission and remains an important tool in relation to digital trade and the establishment of new DTAs;

AddedGeneral introduction

Added1. Underlines that European sovereignty is the ability to build capacity, resilience and security by reducing strategic dependencies, preventing reliance on foreign actors and single service providers, and safeguarding critical technologies and infrastructure; calls for the development of a comprehensive risk assessment framework to monitor and address dependencies across the digital value chain; underlines that such a framework should serve as a basis for ensuring EU preparedness and resilience by enhancing European industrial policy and boosting domestic R&D and manufacturing capabilities in strategic technologies;

Added2. Believes that technological sovereignty is the capacity to design, develop and scale up digital technologies needed for the competitiveness of our economy, the welfare of our citizens and the EU’s open strategic autonomy in a globalised world; believes that this includes ensuring the EU’s ability to make autonomous decisions, engaging with trusted non-EU countries and entities, diversifying and strengthening supply chains and promoting the concept of openness and interoperability to ensure that Europe remains an attractive hub for investment;

Added3. Recognises the increasing concentration of power in non-EU companies, which constrains Europe’s ability to innovate, compete and maintain control over its digital economy, society and democracy; is concerned by excessive dependencies on non-EU actors in critical areas such as cloud infrastructure, semiconductors, AI and cybersecurity – where market concentration and foreign control threaten to undermine Europe’s competitiveness, democratic resilience and security;

Added4. Believes that the EU’s industrial tech ambitions should focus on the key strategic technologies of the future, such as semiconductor technologies or quantum, that contribute to the EU’s open strategic autonomy and are essential for our green, digital and defence transitions;

Added5. Recognises the shift in the geopolitical landscape and the resulting opportunity for market demand for European products and services; sees this as a window of opportunity to position Europe as a global leader in trusted and secure digital solutions;

Added6. Underlines the need to foster a supportive regulatory environment that encourages innovation, investment and the development of cutting-edge technologies in Europe, while protecting EU end users from the consequences of extraterritoriality;

Added7. Recognises the need for a comprehensive European industrial policy for the digital ecosystem, integrating all relevant policy domains such as market access, standardisation, R&D, investment, trade and international cooperation; calls on the Commission to develop this comprehensive policy with the aim of reducing harmful strategic dependencies, strengthening domestic value chains and ensuring a secure, trustworthy and innovation-driven digital ecosystem that adheres to European values;

Added8. Recalls that the high-tech product and digital services markets depend heavily on external supply chains, posing risks to sovereignty and resilience; stresses the importance of boosting industrial capacity and technological expertise in emerging and disruptive technologies to support the EU’s open strategic autonomy;

Added9. Emphasises that boosting Europe’s technological sovereignty in the era of rapid technological development requires enhancing innovation and commercialisation in order to build the necessary capabilities; highlights that Europe must transform itself into a globally attractive and agile business environment by reducing bureaucracy, enhancing regulatory predictability and fostering entrepreneurship and risk-taking;

Added10. Recognises that open strategic autonomy and democratic resilience must be at the core of the Commission’s agenda and that a comprehensive approach must integrate procurement, funding and long-term institutional frameworks to establish sovereign digital infrastructure in critical domains;

Added11. Calls on the Commission to analyse and establish a comprehensive list of critical dependencies in digital infrastructure and technologies, assessing, at minimum, storage services, identity and payment systems, communication platforms, as well as the software, protocols and standards that support them, and to propose measures to promote market access for products and services with a strong positive impact on the EU’s technological sovereignty, resilience and sustainability; believes, in that regard, that the use of specific award criteria in public procurement may be promoted in areas where such critical dependencies exist; believes that such criteria can help incentivise competition and strengthen European technological sovereignty by facilitating the procurement of European digital products and services, where possible;

AddedDigital public infrastructure

Added12. Strongly believes that digital infrastructure is the backbone of our economy and that there should therefore be a base layer of digital public infrastructure (DPI) that ensures sovereignty and a competition-friendly market environment; observes that the market has not developed this base layer in many important areas, which has resulted in monopolies and reliance on foreign actors; underlines that in order to fill this gap, the EU should take the lead in creating a strong foundation for DPI by creating layers of digital technologies consisting of semiconductors, connectivity solutions, cloud infrastructure, software, data and AI; believes that European DPI should be founded on fair and competitive economic models and also use governance models where neither private companies nor governments maintain centralised control; is of the opinion that it should be built on common and open standards, embrace interoperability and interconnectedness, so as to prevent user and vendor ‘lock-ins’, and spur innovation by facilitating new market entrants, and that it should also ensure privacy and security by default;

Added13. Believes that the deployment of DPI should be focused on areas where critical dependencies exist, as identified in the Commission’s comprehensive list; calls on the Commission to prepare a detailed and comprehensive plan for establishing European DPI by identifying technologies that are best suited to European action, and urges the Commission and the Member States to dedicate appropriate resources to deploying European DPI;

Added14. Stresses that European DPI should be stimulated by coordinated action at EU level to ensure the presence and competitiveness of European providers as well as a competitive market environment; underlines that these objectives will not be achieved through regulation alone and will require significant public investment; recognises that the forthcoming multiannual financial framework (MFF) should therefore include additional funding for this purpose, focusing on EU added value and financing the base layer of European DPI;

Added15. Recognises that as part of the forthcoming MFF, the EU must commit to increased spending to achieve technological sovereignty; underlines that this should include a dedicated envelope for the development and deployment of the DPI layers identified in the Commission’s comprehensive list, as well as additional funds to ensure a competition-friendly market environment in other digital areas;

Added16. Believes that the funding under the forthcoming MFF should prioritise active capacity-building in key hardware, software and service areas, including high-performance computing, quantum computing, encryption and communication, connectivity, cloud, data, web and AI ecosystems, and digital libraries;

Added17. Is of the opinion that European DPI should be based on EU values and remain open to like-minded non-EU partners; calls on the Commission and the Member States to sustain their efforts and add more impetus to the process with the UN Development Programme on DPI;

Added18. Recognises e-government services as a key enabler of efficient, secure and accessible public service delivery, which should be designed to facilitate digital identification, government data sharing and public sector payments without distorting markets or undermining existing private sector solutions; emphasises that the EU’s approach to e-government services should focus on strengthening digital government-to-citizen and government-to-business interactions, while ensuring trust, interoperability and accessibility; believes, therefore, that secure and seamless access to public services requires a trustworthy e-identification framework and welcomes the announcement of a ‘business wallet’ aimed at significantly simplifying the interconnection between businesses and public authorities;

Added19. Calls on the Commission to further develop public interest data platforms, enabling secure cross-border data sharing between public and private entities for use cases, in particular, in healthcare, urban planning and environmental monitoring; calls, furthermore, on the Commission to promote interoperability between public interest and industry-specific data platforms, ensuring the seamless flow of data while minimising administrative burdens; notes that this could be achieved by leveraging existing market-driven solutions that foster innovation, maintain trust and uphold privacy and security standards;

Added20. Recognises that under the current legal framework, European citizens have the right to control their personal data and that data generated within the EU must be processed in accordance with EU law; stresses that safeguarding privacy and personal data is essential for building trust in the digital economy, allowing European consumers to engage with confidence, regardless of where their data is processed; highlights that European companies – particularly small and medium-sized enterprises (SMEs) – must be able to make use of data in a lawful, ethical and secure manner to drive sustainable growth and competitiveness;

AddedDigital infrastructure

Added21. Highlights that digital infrastructure is the backbone of Europe’s economy and society and that its importance will continue to grow; calls on the Commission to include in the requested list of critical dependencies a comprehensive assessment of the composition of European digital infrastructure in order to adequately analyse the state of play, assess risks and coordinate action;

Added22. Believes that in order to strengthen digital infrastructure, it is essential to implement capacity-building initiatives in critical areas at EU level; considers that these initiatives should focus on developing a base layer of public infrastructure, such as a network of AI gigafactories and a European web index model; is of the opinion that this base layer will empower companies to develop their business models and boost technological sovereignty; points to the digital solutions created by the EU, such as the EU digital identity, that can offer innovative infrastructure for the EU’s digital economy;

Added23. Recognises the strategic importance of critical digital infrastructure and the need to strengthen their security and resilience; understands that critical digital infrastructure includes, but is not limited to, cables (terrestrial and submarine), cellular network towers, satellite communication systems, spectrum and radio equipment, cloud servers that contain sensitive information and data centres that process sensitive information, as well as certain software elements, including security software that protects critical networks and data centres;

Added24. Highlights the need to ensure that this infrastructure falls under EU jurisdiction, meaning that it fully adheres to EU law; stresses the importance of privacy and security-by-design; calls on the Commission. therefore, to introduce legislation to mitigate risks posed by high-risk vendors from non-EU countries, including risks posed by foreign-controlled energy resource providers;

Added25. Calls on the Commission, while preparing future legislative proposals and the forthcoming MFF, to concentrate efforts on deepening the single market, in line with the recommendations made in Enrico Letta’s report entitled ‘Much more than a market’ and in Mario Draghi’s report on ‘The future of European competitiveness’, with the aim of unlocking the potential of the digital single market;

Added26. Takes note of the recommendations laid down in these two reports that the EU needs a paradigm shift from promoting connectivity in the EU to establishing a single market for electronic communications and connectivity; supports a simplified, harmonised and innovation-friendly telecommunications framework that ensures fair competition and the accessibility of infrastructure;

Added27. Welcomes the Commission’s white paper on how to master Europe’s digital infrastructure needs, which outlines three pillars: creating the ‘3C Network’ – ‘Connected Collaborative Computing’, completing the digital single market, and secure and resilient digital infrastructure for Europe;

Added28. Views the white paper and the subsequent consultation process as part of the preparation of the legislative initiatives planned for this term, including the Digital Networks Act; calls on the Commission to take a more holistic view of digital infrastructure throughout this process and to acknowledge that digital infrastructure comprises many elements beyond mere connectivity; underlines the need to accompany any new digital policy measure with an impact assessment;

Added29. Urges the Commission to simplify and harmonise telecommunications rules as part of the forthcoming Digital Networks Act and the broader Digital Package;

Added30. Calls on the Commission to introduce an EU cloud and AI development act to strengthen European data infrastructure and the promotion of European cloud providers; underlines that this act should aim to actively build a European single market for cloud and AI;

Added31. Acknowledges that deploying cutting-edge digital infrastructure across the EU requires substantial investment and recognises that both public and private funding are essential for achieving this goal; expresses concern over the persistent shortage of venture capital and investment financing in Europe, which undermines technological sovereignty; calls on the Commission to significantly scale up public-private investment instruments, including venture capital, strategic platforms and dedicated funding tools for start-ups and scale-ups in critical technology sectors; highlights the importance of leveraging public procurement to support the deployment and scaling of open and interoperable digital solutions and of ensuring that private capital, competition and innovation become the main drivers of Europe’s digital transformation over the medium and long term;

AddedHigh-speed connectivity

Added32. Is of the opinion that the upcoming Digital Networks Act must support the objective of providing all EU consumers with high-quality connectivity by 2030, especially in remote and rural areas, as well as removing administrative barriers for the roll-out of 5G, 6G and secure, high-speed broadband;

Added33. Recognises the increasing convergence of telecommunications infrastructure with cloud and edge technologies, and sees the potential of open radio access networks to deliver advanced technological solutions, reduce costs and enhance the interoperability of connectivity; believes that the future of connectivity lies in the complementarity of diverse technologies such as 5G/6G, Wi-Fi and satellite, where seamless integration benefits both businesses and consumers;

Added34. Recognises that with cloud and edge services at the core of their transformation, connectivity networks are evolving rapidly into platforms for innovation and will increasingly depend on cloud computing, AI, virtualisation and other technologies;

Added35. Calls for ambitious targets in the development and innovation of wireless communication networks, acknowledging the need for a broad-based approach that includes cloud computing, AI, edge computing and quantum computing; emphasises that the innovation ecosystem for electronic communications, especially for vertically integrated telecoms, should remain market-driven, and insists that future regulatory measures be based on thorough, knowledge-based impact assessments of existing regulations;

Added36. Recognises that competition between operators of all sizes remains a key driver of investment in connectivity networks; calls on the Member States to ensure that copper networks are switched off progressively in favour of fibre-optic or 5G technologies, in particular where regular maintenance or updates of the network are needed, thus ensuring that the shift is carried out in an attainable manner and allowing providers to plan logistically and financially in advance;

Added37. Stresses that all consumers in the EU should have access to adequate quality, reliable and affordable connectivity, thus contributing to increased demand for connectivity services; calls on the Commission and the Member States to expand and upgrade digital networks, especially in rural areas, and to support public-private investments in broadband and 5G/6G deployment, while maintaining cybersecurity standards and secure-by-design principles;

Added38. Is convinced that, as digital connectivity infrastructure such as fibre, 5G and 6G will be crucial for future industrial competitiveness, the forthcoming MFF should include funds for the large-scale deployment of network infrastructure, bridging the existing deployment gap to achieve the 2030 Digital Decade targets, creating pan-European 5G coverage for citizens’ use and ensuring the successful deployment of Industry 4.0 tools;

AddedFibre

Added39. Stresses the importance of accelerating the deployment of fibre-optic networks and modern wireless communications systems that can deliver fast, secure and reliable digital services;

Added40. Recognises that the need to prioritise direct fibre connections for homes, businesses and public institutions is crucial to ensure ultra-fast and reliable connectivity, in addition to network roll-outs with public works, such as roads, water and electricity, to streamline fibre roll-out;

Added41. Welcomes the introduction of the Gigabit Infrastructure Act, which responds to the growing needs for faster, reliable and data-intensive connectivity; recognises the importance of the shared use of ducts and poles for deploying very high capacity networks to optimise resources and reduce costs; urges the Member States to streamline permitting processes and harmonise regulations to lower financial and administrative barriers to the expansion of fibre infrastructure;

Added5G and 6G

Added42. Believes that private investments are essential for deployment of electronic communication networks, 5G and 6G that are advanced enough in terms of transmission, speed, storage capacity, edge computing power and interoperability;

Added43. Stresses that the enforcement and implementation of the Gigabit Infrastructure Act is further necessary for the creation of a one-stop shop for permits and a centralised digital permitting process to reduce delays in infrastructure deployment and to ensure uniform rules for infrastructure access, pricing and environmental impact assessments; calls, in this regard, for strong efforts in this area;

Added44. Takes the view that the EU needs strong cybersecurity protection in all critical infrastructure sectors, with stricter measures to de-risk high-risk vendors in 5G and 6G networks, ensuring dense deployment of small cells and macro towers, particularly in urban and rural areas with inconsistent coverage, and ensuring the sustainability and energy efficiency of the infrastructure so as to support Europe’s global competitiveness in the digital economy;

AddedSpectrum

Added45. Calls on the Commission and the Member States to work towards enhanced coordination of spectrum allocations, in particular through earlier identification and the harmonisation of the release of new frequencies, starting with 6 GHz frequencies; calls for a radio spectrum policy that promotes investment in Europe, including through the harmonisation of spectrum assignment policies across the Member States to accelerate 5G deployment based on best practices, the promotion of longer license durations and access to new spectrum such as the upper 6 GHz band in order to meet future demand and enable 6G; believes that a shared effort from public and private entities is necessary in order to increase the competitiveness of Europe and not lag behind the fastest growing networks in the world, i.e. in China and South Korea;