The DSM strategy and digitisation of europe

• Author: Petropoulos, Georgios; Marcus, J. Scott; Yeung, Timothy
• Pages: 23-29

Contributio n to Growth : European Digital Single Market: Deliverin g economic benefi ts to citizens and busin esses

PE 631.044 23

2. THE DSM STRATEGY AND DIGITISATION OF EUROPE

In this chapter, we provide context for the Digital Single Market Strategy, and more broadly for the

Digital Single Market aspirations that have been visible in the Parliament as well over many years (see

Sect ion 1.2).

As conceived in 2015, and in line with Parli ament ’s desi re t o “to boos t the e conomy through

e-commerce, while at the same time facilitating administrative and financial compliance for

businesses and em powering cust omers t hrough e-governm ent.” (Europ ean Parl iament , 2018a), the

DSM Strategy sought primarily to ameliorate barriers to cross-border e-commerc e. At t he sa me t i m e ,

it sought to strengthen emerging digital services (as we discuss in Section 2.1), including in particul ar

the deployment of fixed and wireless broadband internet access services. The evolution of these ne w

services has moved on (as we explain in Section 2.2), raising new issues that in turn provide

opportunities for further public policy interventions during the coming legislative term.

KEY FINDINGS

•Many of the DSM Strategy legislative initiatives have to do, in way or another, with the

promotion of cross-border e-commerce. Others generate benefits by furthering

the digitisation of the EU.

•E-commerce revenues in the EU are growing at some 14% per year; however, cross-

border sales lag substantially behind domestic, suggesting a substantial opportunity to do

better.

•The measures in the DSM appropriately target the areas where e-commerce merchants

or consumers have identified challenges in purchasing cross-border, based on survey results.

•The transformation of the EU through digitisation appears to depend on the adoption of a

range of technologies such as artificial intelligence, robotics, big data, machine learning, the

Internet of Things, and possibly blockchain.

•Different analysts provide different estimates, but most of their estimates of potential

global future collective benefits from these technologies are in trillions of euro per year.

•The Commission has been active in promoting these technologies, but the DSM Strategy

provides few legislative measures that specifically address them. The activities in the

next legislative term as regards the promotion of digitisation are likely to focus on needs

that were not yet obvious in 2015, many of which are not entirely clear today.