Digital technology is changing the way we live and work. Infections and locks have shown that we depend on it for everything from long distance work to online medical consultations to video calls with family and friends.
However, the epidemic has exposed the gap between “Haves” and “How-Notes”. More than 40% of Europeans do not have basic digital skills and almost a quarter of households do not have broadband.
Less than 20% of SMEs (SMBs) use cloud Internet services or use the Internet to sell their products or services.
How does the EU Redemption Fund contribute to Europe’s digital transformation?
Change to the digital world is an important part of the EU’s epidemic recovery plan. At the heart of the plan is the $ 672.5 billion recovery and recession facility that will be spent on public investment and reforms.
To access funding, member states introduced national recovery programs that set aside 20% of their funding for efforts to digitize their economies.
To ensure that everyone benefits, the EU wants to invest in high-speed broadband, train digital capabilities, help start-ups and small businesses innovate and grow, and use technology to become climate-neutral.
Why is it so important to invest in digital transformation?
Paulo Gentiloni is the European Economic Commissioner. He says the goal in Europe, like the United States, is to “rebuild better” after the epidemic, and that digital technology is affecting “all sectors of our economy.”
“You can improve the way digital public administration works, how the healthcare system works, how competitive and competitive companies are. This is the power to invest in digital technology, which will have an impact on our entire economy.”
This epidemic shows how communication problems exacerbate social differences such as home learning for children and youth.
Gentiloni said, “This is definitely unacceptable and we need to seize the opportunity to bridge the digital divide. It is now or never. “
First in Europe in digitalization
The Scandinavian countries and the Netherlands are at the forefront when it comes to digital transformation. But even there, the projects hope to get money from the recovery fund to help digital transform.
Ranking of the United Nations e-Government Survey Denmark As world champion in e-government. You do not have to go out and keep your driver’s license in your pocket, for example, you can download it directly to your smartphone.
Now other sectors of the economy are jumping on the bandwagon for digital transformation.
Business is changing
HMK Belgan It is located in Cotland. Founded in 1895 by Hadat, the company switched from construction wagons to truck trailers in the 20th century.
Four years ago, CEO Peter Ginsby introduced an amendment to the company’s complete digital move, which cost the company two million euros to transform.
“This change means we have to change this workplace,” Jensby explains. “We have a profitable company now. It lost a lot of money.”
Additional companies such as HMK Billcon are expected to go fully digital in the coming months.
Denmark has demanded 1. 1.6 billion to support the European recovery plan He will have to spend one-fifth of this amount on digital conversion.
These funds are important for those already working in the digital sector, but hope to expand.
Sahar Josephine Heckworth Create an artificial intelligence-based program to create online education programs for educators and hiring managers. The company quadrupled its staff by 2021, but struggled to find private investors.
“When it comes to investing, it’s hard to attract key investors to high-risk properties at the forefront of innovation,” says Horth. They hope to unite private investors and EU support.
Gentiloni supports countries that invest redemption funds in companies such as Hjord, and they “should not just look at the world of giants, it is the world of emerging and medium companies, which has their share of this new digital world. “
European competition
The EU is allocating $ 4,134.5 billion to digital recovery funding, but will it be enough to make Europe a world leader and compete with the US and China?
Catherine Forberg is a member of the Danish Business Development Board. He believes the EU can compete globally because it has adequate infrastructure and capabilities. Most important, he says, is “investing in small and medium-sized businesses to create jobs and grow businesses”.
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