1 European Information
Society for growth and employment
| (26616)
9758/05
+ ADD 1
COM(05) 229
| Commission Communication: "i2010 — a European Information Society for growth and employment"
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| Legal base | — |
| Document originated | 1 June 2005
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| Deposited in Parliament | 8 June 2005
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| Department | Trade and Industry
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| Basis of consideration | EM of 29 June 2005
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| Previous Committee Report | None; but see (26168) 15177/04: HC 38-vii (2004-05), para 5 (2 February 2005)
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| To be discussed in Council | 1 December 2005 Telecommunications Council
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| Committee's assessment | Politically important
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| Committee's decision | For debate in European Standing Committee C
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Background
1.1 At the March 2000 European Council, EU leaders committed themselves
to a ten-year programme of economic reform — the Lisbon
Strategy — with the objective of making Europe "the
most competitive and dynamic knowledge-based economy in the world
by 2010". With economic performance in industrialised countries
increasingly dependent on levels of investment and use of information
and communication technologies (ICT) and the competitiveness of
the communications and media sectors, the Commission accordingly
proposed the eEurope 2002 and eEurope 2005 programmes, which set
objectives for EU ICT policy over a number of years. But the
key message of the March 2005 Lisbon Strategy mid-term review
was that, despite important progress in several areas, Europe
remained some way behind the Lisbon targets, and had particularly
underperformed in the contribution of ICT to productivity and
innovation.
1.2 In re-launching the Lisbon strategy as "a
partnership for growth and employment", the March 2005 European
Council emphasised the need for Europe to "renew the basis
of its competitiveness, increase its growth potential and its
productivity and strengthen social cohesion, placing the main
emphasis on knowledge, innovation and the optimisation of human
capital".[1] The
European Council said "it is essential to build a fully inclusive
information society, based on widespread use of information and
communication technologies (ICTs) in public services, SMEs and
households. To that end, the i2010 initiative will focus on ICT
research and innovation, content industry development, the security
of networks and information, as well as convergence and interoperability
in order to establish a seamless information area".[2]
Commission Communication
1.3 The Commission's new i2010 strategic framework
proposes three priorities:
i) completion of a Single European Information
Space, promoting an open and competitive internal market;
ii) strengthening innovation and investment in
ICT research, to promote growth and employment; and
iii) achieving an "Inclusive European Information
Society", promoting sustainability and prioritising better
public services and quality of life.
1.4 As regards Objective 1: A Single European
Information Space offering affordable and secure high bandwidth
communications, rich and diverse content and digital services,
the Commission argues that, with digital convergence and mass
deployment set to change fundamentally the way in which we work
and live, and new content creation, services and business models
driving growth and employment, a proactive policy is needed if
Europe is to benefit fully from its economic potential. Four main
challenges posed by digital convergence need to be addressed at
the outset:
· speed:
faster broadband to
deliver rich content such as high-definition video;
· rich
content: increased
legal and economic certainty to encourage new services and on-line
content;
· interoperability:
enhancing devices and platforms that "talk
to one another" and services that are portable from platform
to platform; and
· security:
making the Internet safer from fraudsters,
harmful content and technology failures, so as to increase trust
amongst investors and consumers.
1.5 The Commission accordingly undertakes, between
now and 2007, to:
— review
the electronic communications regulatory framework, including
defining an efficient spectrum management strategy;
— create a consistent internal market framework
for information society and media services by:
· modernising
the legal framework for audio-visual services, starting with a
proposal for revising the Television Without Frontiers Directive;
· actively
promoting fast and efficient implementation of the existing and
updated acquis governing the information society and media
services; and
· analysing
and making any necessary adaptations to that acquis.
— continue
to support the creation and circulation of European content;
— define and implement a strategy for a
secure European Information Society; and
— identify and promote targeted actions
on interoperability, and particularly digital rights management.
1.6 On objective 2: World class performance in
research and innovation in ICT by closing the gap with Europe's
leading competitors,
the Commission notes that
it has recently launched two major proposals aimed at strengthening
Europe's position in ICT — the Competitiveness and Innovation
Programme (CIP) and the Seventh Research Framework Programme (FP7),
[3] each of which
involve a substantial increase in expenditure. Here, the Commission
says it will prioritise its strategic research "in areas
where European added value is greatest and where impact on growth
and jobs is highest" and "where a shared EU level approach
can help to build economies of scale and encourage investors".
In summary, the Commission will:
· propose
an 80% increase in Community ICT research support by 2010 and
invite Member States to do the same;
· prioritise
strategic ICT research around the key technology pillars identified
in FP7: technologies for knowledge, content and creativity —
including cognition, simulation and visualisation; advanced and
open communication networks; secure and dependable software; embedded
systems; nanoelectronics;
· launch
research and deployment initiatives to overcome key bottlenecks
that require both technological and organisational solutions —
interoperability, security and reliability, identity management,
rights management and ease of use;
· define
complementary measures to encourage private investment in ICT
research and innovation;
· make
specific proposals on an "Information Society for all"
in the Community strategic guidelines for Cohesion 2007-2013;
· define
e-business policies aiming to remove technological, organisational
and legal barriers to ICT adoption, with a focus on SMEs; and
· develop
tools to support new patterns of work that enhance innovation
in enterprises and adaptation to new skill needs.
1.7 On Objective 3: An Information Society that
is inclusive, provides high quality public services and promotes
quality of life, the Commission says that in i2010 "
strong emphasis is given to full participation and to providing
people with basic digital competence". With public services
constituting a major part of the European economy, and public
procurement accounting for 16% of GDP, a key challenge is to make
these services better, more accessible and more cost-effective.
The Commission will address this through:
· guidance
to extend the geographical coverage of broadband in under-served
areas;
· reviewing
the scope of the Universal Service Directive;
· reviewing
the contribution of ICT and digital literacy to key competences
targets in the "Education and training 2010" initiative;
· proposing
a European Initiative on e-Inclusion in 2008, addressing issues
such as equal opportunities, ICT skills and regional divides;
· promoting
ICT-enabled public services, not least through its own e-Commission
project, that are more transparent, accessible and cost-effective;
· tackling
the challenges posed by the need for common interfaces, portability
of identity from one system to another and authentication systems
through initiatives such as the recent e-Health and e-Procurement
Action Plans;
· proposing
an Action Plan on e-Government and strategic orientations
on ICT-enabled public services, using a limited set of high-profile
demonstrators to test technical, legal and organisational solutions;
and
· raising
visibility by launching flagship ICT initiatives on key social
challenges — the needs of the ageing society; safe and clean
transport; and cultural diversity.
1.8 Finally, i2010 will be administered "fully
in-line with the new governance cycle of the re-launched Lisbon
Strategy", in which "each actor has a role to play within
his field of responsibilities":
— The
Commission will lead in:
· developing
proposals to update the regulatory frameworks for electronic communications,
information society and media services to exploit to the full
the internal market;
· using
the Community financial instruments to stimulate investment in
strategic research and to overcome bottlenecks to widespread ICT
innovation; and
· supporting
policies to address eInclusion and quality of life.
— Member
States, through their National Reform Programmes
(to be adopted by mid-October 2005) should define Information
Society priorities in line with the Integrated Guidelines
for growth and jobs, with emphasis on ICT uptake, ICT infrastructure
and ICT for jobs and education. Such programmes could help Member
States to:
· ensure
rapid and thorough transposition of the new regulatory frameworks
affecting digital convergence with an emphasis on open and competitive
markets;
· increase
ICT research in national spending;
· develop
modern and interoperable ICT-enabled public services;
· use
their considerable purchasing power as a force for innovation
in ICT; and
· adopt
ambitious targets for development of the information society at
national level.
— Other
stakeholders should be "engaged in open and constructive
dialogue in support of an innovative knowledge society. In particular,
industrial partners should aim at raising investments in ICT research
and technologies, while constructive efforts should be made in
areas where there are critical bottlenecks to developments in
the digital economy".
1.9 Member States should subsequently report annually
on achievements in their Implementation Reports on their National
Reform Programmes, with the Commission widening and strengthening
dialogue with stakeholders and Member States, notably through
the open method of coordination, and analysing progress in the
Commission's Annual Lisbon Progress Report.
The Government's view
1.10 In his Explanatory Memorandum of 20 June, the
Minister of State for Industry and the Regions, Department of
Trade and Industry (Mr Alun Michael) says that the areas of policy
addressed in this Communication are "important ones for the
delivery of the DTI Presidency objectives of Better Regulation,
Promoting Employment and Boosting Innovation and Research".
Specifically, he says:
"We welcome the Communication's recognition
that usage of ICT is a key driver of growth and employment and
has an important role in whether Europe achieves the Lisbon objective
to become the most competitive and dynamic knowledge-based economy
in the world by 2010. Recent studies indicate that ICT accounted
for about 40% of EU labour productivity growth over the second
half of the 1990s and that ICT is a key reason for higher productivity
in the US. The EU is not currently fully exploiting the opportunities
offered by these technologies, in both the public and private
sectors, and is still behind its major competitors both in terms
of investment and use.
"We also welcome the fact that the Communication
aims to address the imbalance between the potential contribution
of ICT to the Lisbon strategy, and its existing contribution,
by defining a strategic framework for concerted policy action
at EU level. We support the Commission's approach of aiming to
identify the key policy priority areas which can make the greatest
contribution to the Lisbon strategy.
"The Communication deals in most depth with
the actions at EU level in the first priority area, the single
European Information Space. It makes some welcome references to
the need for consistent and effective implementation of regulatory
instruments which will aid in opening up competition, encouraging
lower prices and new investment. This is consistent with our Presidency
objective of ensuring that the 2003 ICT Regulatory Framework is
fully implemented in all Member States. There may be some concerns
amongst Member States, however, about some of the specific proposals
mentioned, particularly in the areas of interoperability and digital
rights management.
"The Communication's proposals in the area
of Investment and Innovation are less well defined and are set
in the wider context of the FP7 and CIP proposals. The implications
of both of these proposals have been covered in separate EMs (submitted
on 23 May 8087/05 + ADD
1 and 23 May 8081/05 + ADD
1 respectively); and the first, in particular, needs to be considered
in light of ongoing EU budget discussion. In this priority area,
the Communication also places a welcome focus on the need to effectively
integrate ICT into the workplace and business processes.
"The Communication also outlines a number
of initiatives that it proposes to carry out over the next five
years in the Inclusion area. These are all non-legislative initiatives
and will be discussed in detail amongst Member States, both during
our Presidency and subsequently.
"Over the last year few years, Member States
and the Commission have been aware of the need to ensure that
there is a wider coherent policy approach to EU ICT policy, the
outcome of which is this Communication. It helpfully clearly distinguishes
between activities which are for the Commission to undertake (which
are the subject of this Communication) and those which are for
Member States and stakeholders. This is particularly important
in the context of a Community of 25 Member States.
"During the course of our Presidency, we
will be working with stakeholders, Member States and the Commission
to develop a shared understanding of what needs to be done and
by whom at EU and national level. The aim will be to ensure that
any actions agreed by business, by Member States and by the EU
complement each other so that ICT make a strong contribution to
the Lisbon goals. As proposed in the Communication, we will be
using the wider existing Lisbon reporting mechanisms of the National
Reform Programmes as the basis for our national work.
"In order to clarify the areas that should
be the focus of Member State attention, we will be hosting a number
of policy discussions during our Presidency in order to stimulate
debate by stakeholders and by Member States. In particular, in
early September in London, we will be hosting the i2010 conference,
the purpose of which will be to provide stakeholders with an opportunity
to outline their views to Member States and to the Commission.
Other conferences throughout the Autumn will pick out some of
the key policy areas of i2010 to explore these in more detail.
In particular, there will be an e-accessibility conference
in London in October, a conference on telecom and spectrum regulation
in Edinburgh in early November and an e-government conference
in Manchester in late November.
"During the course of our Presidency, our
intention is to discuss what needs to be done to realise the laudable
goals of the i2010 Communication. There will be an initial exchange
of views between Ministers at the June Telecoms Council. We anticipate
that Ministers will approve the Communication and set out their
views on priorities for action in the form of Council Conclusions
in December. We hope that by the end our Presidency, a consensus
will be achieved on the actions that should be taken between now
and 2010 so that the potential benefits of ICT to the Lisbon strategy
are fully realised."
1.11 The Minister says that the Commission carried
out an extended impact assessment on this Communication, but a
national Regulatory Impact Assessment (RIA) was not required "as
the Communication imposes no mandatory burdens on business, charities
or voluntary bodies. Should any specific legislative proposals
emerge as a consequence of this Communication, we will ensure
that RIAs are undertaken for these".
1.12 He also reports that the Commission conducted
a widespread public consultation between November 2004 and mid-January
2005; and that, for its part, the DTI's Business Relations Group
consulted other government Departments, UK stakeholders and with
other bodies an interest in ICT policy in order to present an
inclusive view in the UK's response to the Commission.
1.13 Finally, on the timetable, the Minister say
that, after publication on 1 June and presentation to the European
Parliament Committee on Industry, Research and Energy on 15 June,
there was a first exchange of views amongst Ministers at the Telecoms
Council on 27 June, with a view to arriving at Conclusions at
the Telecoms Council on 1 December.
Conclusion
1.14 In February, when the previous Committee
considered the Commission Communication, "Challenges for
the European Information Society beyond 2005", which paved
the way for this one, it concluded that "the trick is to
focus hard on where action at European level adds value, and to
continue to keep the market and the industry at the heart of the
process".[4]
It is still not entirely clear that the Commission has the balance
right. It is therefore appropriate that the Minister plans to
work during the UK Presidency with all the interested parties
towards a shared understanding of what needs to be done and by
whom at EU and national level, prior to the December Telecoms
Council.
1.15 We recommend that the document be debated
in European Standing Committee C prior to the Council meeting,
so that the Minister can report the outcome of these consultations
and the House may have the opportunity to express its views in
an area that everyone recognises will be crucial to the EU's economic
prosperity and social cohesion.
1.16 We consider that both the earlier Communication
referred to above and the Communication on "European Electronic
Communication Regulations and Markets 2004"[5]
are relevant to this debate.
1 Presidency Conclusions - Brussels, 22 and 23 March
2005, para 5. Back
2
ibid, para 18. Back
3
Both are considered in our previous Report: see (26495) 8081/05;
HC 34-i (2005-06), para 20 and (26503) 8156/05: (26581) 8087/05:
HC 34-i (2005-06), para 21. Back
4
(26168) 15177/04; see HC 38-vii (2004-05), para 5 (2 February
2005). Back
5
(26194) 15715/04 and (26196) 15726/04; see HC 38-vii (2004-05),
para 6 (2 February 2005). Back
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