New EPC research reveals that a European Digital Single Market could increase EU GDP by 4.1% by 2020
19 April 2010
EPC analysis concludes that there are clear economic, social, political and environmental reasons why the EU should act fast to create a Digital Single Market as soon as possible. Key findings are:
- the economic impact of a Digital Single Market could equal at least that of the 1992 programme which created the EU Internal Market for goods;
- a fast development of Digital Single Market is likely to add at least 4.1% to EU GDP by 2020;
- consumers will benefit from lower prices, better quality and more choice;
- a level playing field in Europe will allow businesses to compete on an equal footing, so firms in all sectors can invest and exploit the potential of ICT;
- a DSM would allow European companies to grow to scale and increase global competitiveness.
Commenting on the EPC findings, Esko Aho, Executive Vice President, Corporate Relations and Responsibility, Nokia, and former Finnish Prime Minister, said “The EPC's research is vital as it establishes the significant economic potential a Digital Single Market offers to Europe. It emphasises the urgency of political decisions to make the Digital Single Market a reality as soon as possible. Creating the 'fifth freedom' will be critical to the success of the EU2020 programme."
The EPC recommends actions in five policy areas:
- Make establishing a functioning Digital Single Market a key political project of the Barroso II Commission;
- create a European online business environment fit for the knowledge economy;
- ensure the legal framework governing the use of data and intellectual property is fit for a digitalised market;
- build the foundations and infrastructure for access and use of the goods and services the DSM can offer;
- create an online market place in which consumers can trust.
The EPC Task force, which brought together representatives of businesses and local and regional governments, researched the benefits to Europe of establishing a Digital Single Market. It commissioned a number of background studies and held discussions with senior European Commission officials, key MEPS and other relevant stakeholders.
The findings of the DSM project can be accessed at: www.epc.eu/dsm
For more details about the project, please contact: Fabian Zuleeg, EPC Chief Economist on: +32 (0)2 286 1191, GSM: +32 (0)474 014 519 or e-mail F.Zuleeg@epc.eu
Note to editors:
The EPC Digital Single Market Taskforce met during autumn 2009 and spring 2010.
Project partners included Ericsson, Intel, Microsoft, Nokia, Vodafone, the Central Denmark Region and SITRA (the Finnish Innovation Fund).
The project commissioned two outside studies for the project:
The Economic Impact of a European Digital Single Market by Copenhagen Economics
Digital Single Markets – Benchmarking Europe and the United States by Richard Marsh of Verso Economics
The EPC carried out two additional background studies:
Why the EU needs a Digital Single Market now? by Fabian Zuleeg
Economic rationale for a Digital Single Market by Fabian Zuleeg and Robert Fontana-Reval
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