2026 State of the Digital Decade package

The Digital Decade Policy Programme (DDPP) 2030 provides the framework for Europe’s digital transformation and sets the path towards the 2030 targets and objectives.

Digital transformation matters for our daily lives as much as for Europe’s ability to be competitive and safeguard its strategic autonomy and resilience. We need strong digital infrastructure to stay connected, a digitally skilled workforce and rapid adoption of advanced technologies for our businesses.   

The 2026 report monitors progress across all key areas, identifying both achievements and remaining gaps, while proposing concrete and actionable recommendations to Member States. It assesses developments across the board, including in digital infrastructure, business digitalisation, digital skills and digital public services, as well as progress on multi-country projects, the implementation of national Digital Decade roadmaps and ongoing EU digital initiatives.

Beyond monitoring, the report identifies priority reforms and investments needed to strengthen Europe’s competitiveness, technological sovereignty and resilience, in an attempt to guide digital funding allocations in the next EU Multiannual Financial Framework (MFF).  

In 2026, the Digital Decade Policy Programme (DDPP) continues to guide Europe’s digital transformation towards the 2030 targets.

The 2026 State of the Digital Decade report shows that Europe has advanced in several key areas, including connectivity, digital public services, digital skills and the adoption of advanced technologies. Member States have continued implementing their National Digital Decade Roadmaps, committing to 1 934 measures worth EUR 289.3 billion, including EUR 205.9 billion from public budgets (around 1.09% of EU GDP).  

In parallel, 64% of the 2025 country-specific recommendations have already been addressed. New milestones include the launch of two additional European Digital Infrastructure Consortia (EDICs) and the development of Important Projects of Common European Interest (IPCEI) for microelectronics, cloud and AI healthcare.

Public support for Europe’s digital ambitions remains strong. According to the 2026 Special Eurobarometer, 79% of Europeans consider digital policy a key EU priority, while 85% support investment in EU-developed digital infrastructure and 82% favour reducing dependence on non-EU suppliers.

Europe’s digital transformation hinges on structural reforms and sustained investment. While the foundations are in place; the challenge is now execution at scale.

The report highlights several areas where further action is needed:

• Digital infrastructure: connectivity continues to improve, with basic 5G coverage reaching 96.8% of EU households. However, deployment of Fibre-to-the-Premises and other high-capacity networks still needs to accelerate.
• Technological sovereignty: the EU accounts for only 9% of the global semiconductor market, well below the 2030 target of 20%. Dependencies on non-EU providers remain significant in cloud services, cybersecurity and other strategic technologies.
• Technology adoption by businesses: in 2026, 46.7% of EU enterprises use cloud computing, 39.9% use data analytics, and nearly 20% deploy Artificial Intelligence (AI). AI adoption increased by 48% in 2025 compared to the previous year. However, SMEs continue to face barriers linked to skills, data access, infrastructure and resources.
• Computing capacity: while edge node deployment is progressing and expected to reach targets ahead of schedule, overall computing capacity remains under pressure due to growing demand, particularly driven by AI.
• Digital skills: more than 60% of Europeans now have at least basic digital skills. However, ICT specialists represent only 5% of employment in 2025, half of the 2030 target of 10%, with women accounting for less than 20% of ICT specialists.
• Societal challenges: digital transformation also increases societal risks. 92% of citizens consider protection of children and young people online a priority, 87% see online manipulation, disinformation, deepfakes and AI-generated content as a threat to democracy, and 80% support careful regulation of Artificial Intelligence.

Although progress has been achieved in developing the EU’s digital policy framework and launching flagship initiatives such as IPCEIs and EDICs, structural constraints persist, notably market fragmentation, uneven implementation across Member States and limited testing and innovation capacity.

Addressing these structural gaps will require greater scale, more effective execution, and reinforced EU-level coordination. The report therefore calls for accelerated deployment of EDICs and IPCEIs and highlights the need to ensure funding continuity beyond 2026.

Digital investments deliver strong economic returns. A joint study by the Directorate-General for Economic and Financial Affairs (ECFIN), the Directorate-General for Communications Networks, Content and Technology (CNECT) and the Joint Research Centre (JRC) shows that every EUR 1 invested through digital measures under the Recovery and Resilience Facility (RRF) generates EUR 1.50 in EU economic output and EUR 2.00 globally by the end of the Digital Decade. These investments also generate significant cross-border and cross-sector spillovers.

However, funding continuity is critical. Almost half of the public funding included in National Digital Decade Roadmaps is expected to be phased out by the end of 2026, creating risks for the sustainability of digital transformation efforts.

To close remaining gaps and prevent fragmentation, the report calls for:

• Continued investment in strategic digital technologies, including advanced connectivity, semiconductors, secure cloud and data infrastructures, Artificial Intelligence, quantum technologies and cybersecurity;
• Stronger EU-level coordination and the scaling-up of successful initiatives, including European Digital Infrastructure Consortia (EDICs) and Important Projects of Common European Interest (IPCEIs);
• Faster implementation of Single Market reforms to reduce fragmentation and enhance Europe’s technological sovereignty;
• Support for businesses, especially SMEs, to adopt advanced digital solutions through improved access to skills, infrastructure and innovation ecosystems;
• Alignment of future EU funding priorities with Digital Decade objectives to ensure sustainable progress beyond 2030.

The Commission has already advanced a broad range of measures to strengthen Europe’s capacity to develop, deploy, and protect critical technologies. Under its technological sovereignty agenda, the EU is implementing initiatives such as the Cloud and AI Development Act, the Chips Act 2.0, the Digital Networks Act, the Quantum Europe strategy, the European Business Wallet and the digital and AI omnibuses.

Together, these initiatives aim to deepen Single Market integration, reinforce the security and resilience of European technologies and infrastructures, and support Europe’s competitiveness in the digital age.  

To maintain momentum towards the 2030 targets, the Commission calls on Member States to update their National Digital Decade Roadmaps with concrete and financially supported measures.

Future digital investments should be better aligned with Europe’s strategic priorities, including through the next MFF, the preparation of National and Regional Partnership Plans and the future EU Competitiveness Fund.

In 2027, the Commission will also review the Digital Decade Policy Programme targets to ensure they reflect new legislation, adapt to the evolving digital landscape, and remain aligned with Europe’s priorities beyond 2030.

Communication ‘State of Digital Decade 2026: Closing structural gaps and mobilising investments for 2030 and beyond, including two annexes: Annex 1:  State of EU digital transformation in 2026: progress and EU-level recommendations Annex 2: Short Country Reports 2026

	Staff working document ‘Monitoring of EU-level recommendations 2025’ This document assesses progress made to meet the EU-level recommendations presented in the 2025 State of the Digital Decade.
	Staff working document ‘Progress report on multi-country projects 2026’ This report presents the progress of selected multi-country projects and European Digital Infrastructure Consortia (EDICs) between May 2025 and May 2026.
	Staff working document ‘Digital Decade 2026 country reports’ The State of the Digital Decade 2026 includes 27 country reports, providing insights into each country's progress in digital transformation.
	Staff working document ‘DESI 2026 methodological note’ The DESI methodological note outlines the methodology used to track the EU’s digital transformation.

	The State of the Digital Decade Eurobarometer 2026 The report is based on a Special Eurobarometer survey conducted between February and March 2026.
	eGovernment Benchmark study The eGovernment Benchmark has been monitoring the European Union's digitalisation of key public services for more than a decade, regularly updating its methodology to always align with the policy needs of the EU.
	Connectivity Coverage in Europe This study is a data-driven look at broadband coverage in 2025 and progress towards the Digital Decade targets.
	The 2026 Digital Decade eHealth indicator study This report presents the eHealth target monitoring results as of 31 December 2025 for the EU-27, Iceland, and Norway.
	5G Observatory report This is an independent summary of developments in the deployment of 5G in the EU, assessing progress towards EU policy goals.
	Digital Measures under the Recovery and Resilience Facility This is a comprehensive assessment of the overall economic impacts on the full Recovery and Resilience Facility (RRF) digital investment budget.