2019 - 2024 - MANIFESTO FOR EUROPE’S DIGITAL FUTURE - European Digital SME Alliance

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WHY THIS MANIFESTO?

The world we live in today is radically different from our reality only ten years ago. Our social and economic activities are shifting towards the net and advancements in technology are only speeding up this process. Europe has been the birthplace of world changing revolutions, such as the first industrialisation, and it has been a centre of innovation for centuries to follow. While Europe is still at the forefront of innovation and inventions, many European digital players seem to have difficulties scaling up to the same extent as their foreign competitors. The most valuable global companies of today are digital - and are born either in the US or China.

Yet, the US and China follow very different economic and social models. While the US focuses on the freedom of the individual and the market, China combines state control with capitalism. In competition with those two models, Europe finds itself “in between” without a clear definition of its role. This applies not only to global politics, but also to European policies related to the competitiveness of the European digital economy.

Growing a strong and independent digital industry is thus fundamental to ensuring Europe’s economic prosperity in the future. Even more, digital autonomy and sovereignty are key elements to maintain and protect our free and democratic societies.

REDEFINING EUROPE’S STRENGTH

The European Union is the economically most prosperous union of states in the world. Europe is home to innovative companies, to outstanding basic research and has a strong industrial base. We are also home to a well-educated workforce who benefits from the highest standards of living worldwide. Furthermore, Europe is the continent which guarantees most freedom, equal opportunities and security to its citizens – while following a sustainable approach and environmental consciousness. A pillar of Europe’s success is small and medium sized companies (SMEs): They make up 99% of all businesses in the European Union. From 2013 until today, SMEs provided approximately 85% of new jobs and accounted for over two thirds of the total employment on the continent. SMEs are integrated in local communities and active on global markets at the same time.

MOVING AHEAD IN THE DIGITAL CENTURY

We should have the confidence to build on the potential of innovation, creativity and autonomy of our citizens and companies. DIGITAL SME believes that Europe needs to apply strategic thought to use the opportunities of the digital revolution to the fullest. It is time to understand our strengths, to build on them and to create the right conditions for our companies to flourish. Only a thriving digital industry with solid small and medium sized companies can help Europe maintain its digital autonomy and take full advantage of the digital revolution.

TEN PRIORITIES FOR EUROPE’S DIGITAL FUTURE:

The ten priorities for policy and decision-makers define a way forward to Europe’s Digital Future during the mandate of the European Parliament and Commission 2019-2024.

1 Ending tax inequalities & unfair competition

2 Starting up Europe-led innovation

3 Building Europe’s digital single market

4 Unleashing the potential of the data economy

5 Building a sustainable digital Europe

6 Paving the way for Europe-led Artificial Intelligence

7 Closing the digital skills gap

8 Unlocking standards for SMEs

9 Towards Europe’s digital autonomy

10 Building an inclusive digital Europe and social model

1) ENDING TAX INEQUALITIES & UNFAIR COMPETITION

Europe must advocate a level playing field for all businesses. The competition rules of the European Union are among the strictest in the world. However, digitalisation has posed novel challenges as new services and technologies have emerged, which may enhance domination of the market by a few players. These unfamiliar forms of market dominance seem to be enforced by network effects and access to large amounts of user data. In addition, tech giants recurrently benefit from existing loopholes of the EU tax system to avoid paying their fair share. In practice, it leads to a direct competitive disadvantage for SMEs. Europe needs to make sure that the market dominance of multinationals does not prevent new players from accessing these markets. Big tech companies must be prevented from erecting barriers to new players, while competition authorities should preserve the interests of consumers. Europe’s public procurement market is open to all actors, also in areas of strategic interest. Europe should seek reciprocity in order to maintain a level-playing field. Foreign take-overs in strategic areas should be subject to greater scrutiny.

HOW TO ACHIEVE THIS GOAL:

• Support the introduction of a digital tax, which creates a level-playing field in taxation between large and small

players, while not placing any additional burden on smaller players.

• Modernise the competition framework and provide tools to tackle new forms of dominance, enhanced by

network effects and access to data.

• Prevent platforms from using their dominance or “gate-keeper” function to discriminate against competitors’

products or services and to impose unfair business contracts.

• Provide SMEs with the means to file complaints against unfair practices adopted by multinationals and ensure

that the decision-making authorities in such cases are well-positioned and competent to assess complex and highly technical cases.

• Introduce reciprocity in access to public procurement markets, specifically in areas of strategic interest.

2) STARTING UP EUROPE-LED INNOVATION

Europe needs to combine an open innovation eco-system with strategic thought and investment allowing us to succeed in digital technologies and to become a leader in the digital economy. This environment must allow failure when engaging in cutting-edge research – thus, funding should not always be tied to specific results. Policies and regulations should aim not to limit but to expand the potential development of new technologies, especially in the starting up and testing phase. When proposing new laws, the legislator has to act with the clear aim of maintaining a level playing field for SMEs. After all, small companies lack the resources that big companies have to follow and/or influence the decision-making process. To fuel innovation there’s a need to invest in capital-intensive future technologies such as quantum computing and the necessary infrastructure. Supporting innovation and the competitiveness of European businesses must be the primary focus of EU financial frameworks and programmes. While many companies still depend on traditional bank lending, innovation cannot flourish. New technologies, such as e.g. blockchain, can provide innovative funding solutions which should be further explored. Other world regions have led by example in creating favourable conditions – related to financial or legal aspects as well as with regards to attracting skills & talent - to foster an innovation-friendly eco-system. In Europe, we need to follow suit.

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Enlaces

URL: https://www.digitalsme.eu/manifesto/

Wayback Machine: http://web.archive.org/web/20220125073343/https://www.digitalsme.eu/manifesto/