Comment Neelie (Kroes)

These days, no political discussion can ignore the economy.sentence permalink

My message is simple: to think about the future economy, remember the digital revolution. Because it's changing our world.sentence permalink

The facts are stark. The European Internet economy is already bigger than Belgium’s economy; and growing faster than the Chinese. Already worth hundreds of billions of euros, in a few years, it could reach over 5% of EU GDP. And by 2016, online spending could account for over one retail euro in ten.sentence permalink

Studies show that ICT investment is among the most productive there is.sentence permalink

It enables new ways of doing business, new ways to power productivity, new ways to innovate.sentence permalink

And it gives me new hope that we can fuel growth for a job-rich recovery.sentence permalink

In future, there will be more and more digital applications, more and more online services. From the business boost of cheap Cloud access; to better, cheaper healthcare. In future, our investment in digital capital could repay handsomely.sentence permalink

But only if we have the right resources to support it. Only if we ensure that Europe is ready to make the digital transition.sentence permalink

We must put in the effort now. Otherwise we won't be able to reap the benefits. And we will be doing a serious disservice to tomorrow's economy, and future generations.sentence permalink

There are three things we need in particular.sentence permalink

First, we need the legal framework that opens up a vibrant digital Single Market. So people don't face at every turn barriers, restrictions, high costs.sentence permalink

Costs like outrageous roaming charges.

We can put an end to these rip-offs once and for all. Thank you all – especially Angelika Niebler - for your support in delivering our preliminary agreement. This package will boost competition, lower prices, and connect our digital Single Market.sentence permalink

And, if we're building a vibrant digital Single Market, don't forget we need the resources to fuel it: rich online content.sentence permalink

We've all seen how much the people of Europe care about online content and the rules that govern it. They've come onto the streets to make their voices heard.sentence permalink

And they expect us to adapt to a new, open era. We must show we can do that. And indeed my colleague Michel Barnier is working on proposals on the copyright regime.sentence permalink

Our proposal on orphan works aimed to start delivering some of this openness, some of this change. I regret that current amendments would drastically cut back the most progressive elements of the Commission proposal: in particular regarding the commercial use option. If this continues it could be a big missed opportunity. The text must be quite clear that public service cultural bodies have the right to generate revenues consistent with their public service missions; including via public-private partnerships.sentence permalink

And here's another way we could really show our commitment to change. Let's start with public administrations themselves. The market based on open data is already worth tens of billions of euros. Our legal proposals on public sector information would unlock this goldmine – stimulating new economic and social applications, improving democratic scrutiny, and supporting evidence-based policy making itself. I hope I can count on your support.sentence permalink

We will also produce before the summer a legal proposal on electronic identification, authentication and signatures.sentence permalink

This framework will ensure, first, EU-wide mutual recognition and acceptance of e-ID and e-authentication. Second, making electronic signatures more interoperable and more usable, including through mobiles. And third, it will also cover related services like time stamping, certified delivery and so on.sentence permalink

That will give people new confidence to transact across the EU. It will open up new market opportunities. And it will give governments new opportunities to save money.sentence permalink

What's more, within this digital Single Market, we must embrace new developments.sentence permalink

When we spoke last year, this Committee put Cloud Computing forward as a priority. And rightly. We need a Cloud-friendly framework. With clear rules on how to protect data, how to move it between jurisdictions, and on product and service liability.sentence permalink

And, to make us Cloud-active, earlier this year I announced a European Cloud Computing Partnership. To overcome fragmented public sector demand.sentence permalink

Common requirements will harness the power of the largest single buyer of IT services; and expand market opportunities. We will launch the partnership this year.sentence permalink

And we are talking to partners – Japan, the US and others - to ensure the rest of the world can deliver on the same terms.sentence permalink

The second thing we need is network infrastructure.sentence permalink

When it comes to Radio Spectrum, I'm delighted we have now agreed on our ambitious policy programme. Thank you all, especially Mr Hökmark.sentence permalink

But spectrum isn't enough; we need fixed broadband too. Already, broadband demand doubles every 2 to 3 years.sentence permalink

And all those new services – from video-on-demand to Cloud access to virtual operating theatres – they all need serious bandwidth.sentence permalink

In a few years' time, the lack of network capacity will strangle all that potential, all that innovation, all those new apps and services.sentence permalink

If we do get new coverage though, we'll see the benefit: 10 percentage points more broadband penetration can mean up to 1.5% more GDP growth.sentence permalink

The market alone can't always deliver here; particularly in sparser suburban and rural areas. If we don't want parts of Europe left as broadband blackspots, we need to boost market confidence.sentence permalink

That's why we need our proposals on the Connecting Europe Facility. If agreed, innovative financing could leverage and "crowd in" significant private sector finance.sentence permalink

When combined with grants to rural and under-developed areas, we could build the networks for a connected and competitive continent.sentence permalink

And that's what I mean by EU added value.sentence permalink

Plus, I should add, a share of the Connecting Europe Facility would also make e-Government services work better across borders.sentence permalink

That's especially important for those who travel or trade within the Single Market.sentence permalink

Alongside boosting confidence, I want to cut the cost of investing in broadband: I'm delighted the Spring European Council endorsed this aim.sentence permalink

Experts tell me that you could save around 30% through, for example, sharing infrastructure, coordinating roll-out or simpler permit regimes. I intend to make proposals by the end of the year.sentence permalink

Plus we must invest in future technology. Horizon 2020 can deliver smart, sustainable and inclusive growth.sentence permalink

In particular, ICT research can boost our industrial leadership, economic competitiveness, and scientific excellence; and support challenges from climate change to an ageing society.sentence permalink

Quite simply, to keep up with trading partners, we must keep up in research. So I hope you can support our proposals on Horizon 2020.sentence permalink

The third thing we need is human capital. Soon 90% of jobs will need digital skills: but even today 25% of European adults have never used the internet. And at the higher end, we don't have enough ICT graduates. Within a few years, there could be a shortfall of 700,000 ICT jobs.sentence permalink

At a time of horrific youth unemployment, that's too big an opportunity to miss. We can't fail our young people like that.sentence permalink

Let's build on young people's great strengths as digital natives - and help them stay productive in tomorrow's economy. With skills that are recognised, and experiences that help them achieve potential.sentence permalink

I am working with my Commission colleagues and the private sector to realise this chance.sentence permalink

And to also help with this goal, President Barroso and I have asked all Member States to appoint a "digital champion" to boost digital skills. Each country needs a dynamic individual dedicated to this task. Someone with the profile and persistence to work with public, private and voluntary sectors.sentence permalink

So that everyone can access tomorrow's economic and social opportunities.sentence permalink

Perhaps, in your Member State, you know a suitable candidate. If so, please let me and your government know!sentence permalink

Once we have them all in place, they will be a powerful resource – an elite team able to tailor actions to national needs, while sharing experiences at EU level.sentence permalink

Finally, last year when discussing the Commission's work programme you identified security as a priority. And quite right too: it's no use having all these networks and frameworks if they're not safe and reliable to use.sentence permalink

I was reminded of this vividly recently: when a fire in The Netherlands cut out wide parts of the mobile network. Hundreds of thousands were affected.sentence permalink

Already today that's serious; think of what those people were cut off from.sentence permalink

But imagine what it would be like in a few years' time for a network to go down. At a time when it's used ever more: for healthcare, for business, and to connect the most isolated.sentence permalink

Well, maybe we can't prevent every incident and every fire.sentence permalink

But cyber attacks and malware can have similar wide impacts. And businesses should have an approach to manage and mitigate those risks.sentence permalink

In the third quarter of this year, we are due to adopt the European strategy for Internet security.sentence permalink

Among our proposals will be ideas on sharing critical information, on requirements for computer emergency response teams, on incentivising private sector action, on security breach notifications for all sectors – and on risk management.sentence permalink

I am looking forward to discussing these and other issues at our annual Digital Agenda Assembly on 21 and 22 June. I am delighted that this year it will be a truly inter-institutional event: jointly organised by the European Parliament, Economic and Social Committee, the Committee of Regions and the Commission.sentence permalink

And I want today to thank you and your administration for helping organising the Assembly with me.sentence permalink

This will feed into our mid-term review of our Digital Agenda, due out this autumn, which will provide detailed information on implementation.sentence permalink

Ladies and Gentlemen,

Across Europe, in all countries and at all levels of government, Member States are implementing competitiveness strategies.sentence permalink

We must show them that the EU is playing its part: to boost growth, deliver the jobs, and find the public sector efficiencies everyone is looking for.sentence permalink

That means we must invest in ICT now. Today.sentence permalink

In future, when a small business wants to expand, or a big company wants to locate, they're going to look at exactly these issues. Does this place have fast broadband? Do they have digitally skilled workers? Do they have a modern legal framework, with easy access to a huge market?sentence permalink

When they ask these questions about Europe, let's make sure they get the right answer. Let's make sure we build an e-EU.sentence permalink

Thank you.