Although progress is being made in the EU in the use of digital technologies, it is still too slow and there is a shortage of skilled ICT professionals. Whether it is artificial intelligence, automation or cloud infrastructure – companies that fail to modernize risk losing ground. The good news is that in many European countries there are government or EU‑backed programs that help businesses finance digital projects.
To drive digital transformation in Europe, the EU has launched the EU Digital Decade. The focus is on four areas: comprehensive digital infrastructure with high-speed internet – including in rural and remote regions; improved digital skills for the population and an increase in IT specialists; greater use of digital technologies by companies – particularly small and medium-sized enterprises – as well as modern, digital public administration and government services. This includes, among other things, the use of cloud technologies, data analytics and artificial intelligence.
Progress is reviewed on a regular basis. The 2025 State of the Digital Decade package shows that while the EU is making progress, it is simultaneously facing structural challenges. Although the use of artificial intelligence, cloud solutions and big data by companies is increasing, the pace is not sufficient to remain internationally competitive. Another key issue is the shortage of ICT specialists with advanced digital skills. This bottleneck is exacerbated by a pronounced gender gap and slows progress in key areas such as cybersecurity and artificial intelligence. The report positively assesses the steady progress made in 2024 in the digitalization of public services. At the same time, however, a significant share of public-sector digital infrastructure remains dependent on service providers outside the EU, raising questions about Europe’s digital sovereignty.
At EU level, there are several funding programs to drive digitalization. Examples include the Digital Europe Programme (DIGITAL), which provides €8.1 billion (2021–2027) for artificial intelligence, cybersecurity and digital skills. Under the Connecting Europe Facility – Digital (CEF Digital), a budget of €1.5 billion is planned for the period 2021–2027, of which over €1 billion has already been allocated to more than 176 projects. This includes €619 million for Digital Global Gateways, €326 million for large-scale 5G projects, and €96 million for quantum communication infrastructures. Horizon Europe has a substantial budget of €95.5 billion for 2021–2027 and €175 billion for 2028–2034 to support digital research and innovation.
The financing made available there is often implemented through national and regional bodies.
The types of help on offer for businesses
The types of digital transformation support on offer across Europe vary, but they fall into three main types:
- Direct grants – Non‑repayable co‑financing for investments or consulting. Companies receive funding, for example, to finance software, hardware or advisory services.Examples include IT-Sicherheit in der Wirtschaft in Germany
- Loans / subsidized credit – Loans with particularly favorable conditions or guarantees for digital projects. Examples include the ERP-Förderkredit Digitalisierung (511/512).
- EU project funding / participation – These are grants provided through the EU programs mentioned above, typically for collaborative, innovative or pilot projects.
