Saturday

9th Dec 2023

Finland spearheads EU plan for digital revolution

  • Finland's prime minister Juha Sipila (l) with EU Council head Donald Tusk (c) in Helsinki last year (Photo: consilium.europa.eu)

The EU should strive to be a world leader in digital services, Finland and 16 other member states have said, following French and German proposals on creating industrial champions.

The EU ought to "embrace" the "digital transformation" of its single market, the group-of-17 countries said in a letter to EU Council chief Donald Tusk sent on Tuesday (26 February).

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

  • Polish prime minister Mateusz Morawiecki (l) signed the Finnish paper, but Hungary's Viktor Orban (r) stayed out (Photo: consilium.europa.eu)

"This implies managing successful transition towards a digitally-driven and sustainable European economy and an offensive industrial policy to innovate and remain globally competitive," they noted.

"The focus should be towards mainstreaming and strengthening services, especially digital services and data economy as an integral part of the single market," they added.

Their mention of "an offensive industrial policy" echoed a recent Franco-German manifesto on creating "European champions" - mega-firms capable of competing with US or Chinese giants on the world stage.

The manifesto was published on 19 February in the wake of a recent European Commission decision to block a merger between German and French railway firms on anti-monopoly grounds - a move described as "stupid" by French economy minister Bruno Le Maire at the time.

The EU-17 letter and the Franco-German ideas are meant to shape the drafting of EU summit conclusions on single market priorities for the next five years when EU leaders meet in Brussels March.

"The Fins took the initiative ... the council conclusions will start being drafted [by EU officials] next week, so if you want them to incorporate your ideas, you have to act now," an EU diplomat told EUobserver.

The EU-17 paper put a strong accent on labour mobility after France, last year, pushed to restrict the rights of workers from low-pay countries, such as Poland, to provide services in wealthier states in western Europe.

"Remaining barriers from labour and learning mobility [should be] removed," it said.

"As industry value chains are highly dependent on services, it is necessary to remove remaining cross-border obstacles as well as to prevent any new barriers and risk of fragmentation in this regard," it added.

"Mutual recognition of professional qualifications should be guaranteed," it said.

The Finnish-led proposals also put a stronger accent than France or Germany on ethical and environmental standards.

"The EU should become a globally significant actor in artificial intelligence and set global standards in ethics," it said.

The digital metamorphosis required "free flow of data" in the EU, but this ought to respect people's "rights" and "privacy", it noted.

"The practices of human-centred and ethical data management should be further strengthened," it said.

"Transition" to a "low-carbon economy", was also a priority, it added.

"The EU should focus on finding solutions that enable the EU to meet its climate and energy targets cost-efficiently [and] enhance energy security," it said.

New coalition minus UK

The signatories of the Finnish paper also included the leaders of Belgium, Croatia, the Czech Republic, Denmark, Estonia, Ireland, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Slovakia, Slovenia, and Sweden.

The fact the UK, which normally acts in concord with pro-free market states such as the Nordic countries and the Netherlands, did not join showed that the group was losing an important ally due to Brexit.

The absence of Hungary, which normally acts in concord with central European states, highlighted its pariah status under the authoritarian rule of Viktor Orban.

The inclusion of Poland, which is, like Hungary, under an EU sanctions procedure due to its government's abuse of rule of law, indicated that Warsaw wanted to remain part of the European mainstream.

The Poles signed up to the "low-carbon" idea despite the fact they have tried to protect their coal industry from EU climate targets in recent years.

Polish officials also tried to spin the paper as a counter-blast to Franco-German protectionism of their labour markets.

Polish spin

But the EU diplomat said most of the other signatories did not see it that way.

"It's not a reaction to the Franco-German proposals ... the Fins have been promoting similar ideas for years," the diplomat said.

"The letter and the [Franco-German] manifesto are both about ensuring that the single market is ready for competition and about integrating industrial policy with broader EU goals," they added.

"The EU should reflect on how to better link single market policies with other policies to foster sustainable growth including economic, environmental as well as social sustainability," the EU-17 letter said.

Stakeholder

Digital 'Iron Curtain' makes no sense in 5G era

5G technology is a product of global innovation and cooperation. Drawing an Iron Curtain would therefore have an impact on all: Chinese, Europeans, Americans, and others alike.

Analysis

France and Germany hope to revive EU with Aachen treaty

In the face of attacks on the liberal world order and the EU, Angela Merkel and Emmanuel Macron renew German-Franco cooperation - but their lack of political capital prevents bold visions or ambitious goals.

Interview

Finland: Time for EU to lead on environment

Europe should focus on implementation of environmental laws instead of making new ones, Finnish minister Kimmo Tiilikainen told EUobserver.

Finnish government collapses ahead of EU presidency

Finland's centrist prime minister Juha Sipila's surprise resignation kicks off a busy political spring in the Nordic country, with national and EU elections as well as preparing to head the EU' rotating six-month presidency from 1 July.

Spain's Nadia Calviño backed to be EIB's first female chief

With less than a month to go before the start of a new leadership of the European Investment Bank, the world's largest multilateral lender, the path seems finally clear for one of the candidates, Spanish finance minister Nadia Calviño.

Analysis

Is there hope for the EU and eurozone?

While some strengths may have been overlooked recently, leading to a more pessimistic outlook on the EU and the euro area than the truly deserve, are there reasons for optimism?

Latest News

  1. How Moldova is trying to control tuberculosis
  2. Many problems to solve in Dubai — honesty about them is good
  3. Sudanese fleeing violence find no haven in Egypt or EU
  4. How should EU reform the humanitarian aid system?
  5. EU suggests visa-bans on Israeli settlers, following US example
  6. EU ministers prepare for all-night fiscal debate
  7. Spain's Nadia Calviño backed to be EIB's first female chief
  8. Is there hope for the EU and eurozone?

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Stakeholders' Highlights

  1. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  2. UNOPSFostering health system resilience in fragile and conflict-affected countries
  3. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  4. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  5. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  6. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA

Join EUobserver

Support quality EU news

Join us