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The latest “State of the Digital Decade 2025” report delivers a strong message: unless we move faster, Europe’s vision of digital sovereignty may remain just that—a vision.

Published by the European Commission, the report compares the ambitious goals of the Digital Decade with what’s actually been achieved so far. Despite EU countries committing nearly 1,910 policy measures and close to €289 billion in funding (around 1.14% of the EU’s GDP), progress is patchy—and major gaps remain.

One of the clearest problem areas is digital infrastructure. Yes, we’re building basic 5G networks and local data processing hubs (called “edge nodes”), but not fast enough. Fiber optic networks still don’t reach enough homes and businesses, and satellite systems and undersea cables remain underfunded and vulnerable to global tensions.

At the same time, Europe’s digital future hinges on energy. The rising demand—especially due to AI—is outpacing the growth of renewables and upgrades to energy grids. If we can’t balance energy consumption with availability, we may not be able to expand key digital technologies across the EU.

Digital Skills Gap and the Generation Divide

The issue goes beyond tech infrastructure. People matter too. Right now, only about 56% of Europeans have basic digital skills—skills needed to live, work, and thrive in today’s digital world. There’s also a serious shortage of top-tier tech experts, especially in cybersecurity and artificial intelligence.

The gender gap is another roadblock. Women remain underrepresented in tech fields like AI, data science, and information security. That slows progress in sectors that are already struggling to grow.

And it’s not just about employment. Without digital inclusion, social divides are deepening. Children and people in vulnerable situations are particularly exposed to risks in the online world.

No wonder 90% of EU citizens believe protecting minors online should be a priority. A further 88% are worried about disinformation. From fake news and deepfakes to algorithmic manipulation, our mental health and access to truth are being challenged like never before.

A Data-Driven Economy—But Who’s in Charge?

Many European companies are adopting cloud services, AI, and big data tools—but not at the speed or scale needed. What’s more, a lot of these services come from outside the EU, especially from the US and Asia.

This dependence goes deeper—into chips, quantum computing parts, and the very infrastructure that supports cloud services. Without control over these critical areas, Europe’s ability to grow independently is limited.

Even public institutions rely on IT solutions from foreign providers, putting sensitive data and policy security at risk. The report makes it clear: without bold strategic moves, the EU risks missing its goals—and losing global competitiveness.

What needs to change: more investment, less red tape

To turn things around, the European Commission suggests a two-pronged approach. First, we need more investment—public and private—especially in digital areas like AI, cybersecurity, cloud, quantum computing, and semiconductors. That includes serious funding for both basic and advanced digital skills.

Second, the EU needs to break down structural barriers. Today’s digital market is fragmented, with overly complex and inconsistent national rules that make integration harder. The Commission recommends simpler administrative processes, the rollout of EU-wide digital business IDs, and new frameworks like a European quantum strategy, a cloud development act, and rules for future-proof networks.

And there’s more. Europe should better coordinate between civilian and defense sectors when it comes to emerging technologies. Weak collaboration in these areas is slowing progress in AI, quantum computing, and next-gen communications—technologies that are not only profitable but essential to Europe’s strategic independence.

Digital sovereignty is about survival

In an age of information warfare, geopolitical uncertainty, and aggressive competition from authoritarian states, Europe’s digital transition is no longer just about economics—it’s about survival. The “State of the Digital Decade 2025” leaves no room for doubt: drifting isn’t an option.

If the EU doesn’t speed up its efforts in digitalization and tech independence, it risks losing control over crucial parts of its future—from data security to democratic integrity.

The next few years will be critical. Europe must not only catch up, but lead. The stakes go beyond tech—they’re about Europe’s ability to shape its own destiny in the 21st century.

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