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CONTRIBUTION OFTHE EUROPEAN STRUCTURAL AND

INVESTMENT FUNDS TO THE 10 COMMISSION PRIORITIES
DIGITAL SINGLE MARKET
December 2015

CONTRIBUTION OFTHE EUROPEAN STRUCTURAL AND INVESTMENT FUNDS TOTHE 10 COMMISSION PRIORITIES
DIGITAL SINGLE MARKET

HOW ARE THE EUROPEAN STRUCTURAL AND INVESTMENT FUNDS

(ESI FUNDS) CONTRIBUTING TOTHIS COMMISSION PRIORITY 2014-2020?
The digital revolution ischanging the world welive in. However todays online barriers mean citizens dont have
access tocertain goods and services, internet companies and start-ups are limited inwhat they can offer, and
businesses and governments cannot take advantage ofthe digital tools available. There isan urgent need
tomake the EUs single market fit for the digital era. This means removing regulatory walls and merging the
existing 28 national markets into one robust market place. This move isvital asit could add EUR 415 billion
tothe EUs economy annually, while creating hundreds ofthousands ofnew jobs.

HOW CAN THE EUROPEAN STRUCTURAL AND INVESTMENT FUNDS HELP?

Information and communications technology (ICT) isthe most important driver ofinnovation and growth globally.
Itencourages the spread ofinnovation, sustainability and economic competitiveness, aswell associal inclusion.
InEurope, the digital economy isthe fastest growing sector and its huge potential has only been partially exploited.
The Digital Single Market (DSM) ensures the free movement ofgoods, people, services and capital, allowing individuals and businesses toseamlessly access and exercise online activities. This freedom ismade possible under
conditions offair competition and ahigh level ofconsumer and personal data protection, irrespective ofnationality orplace ofresidence. This iswhy ICT investments are part ofthe European Structural and Investments
Funds (ESI Funds) key investment areas toenhance growth inthe regions.

CONTRIBUTION OFTHE EUROPEAN STRUCTURAL AND INVESTMENT FUNDS TOTHE 10 COMMISSION PRIORITIES
DIGITAL SINGLE MARKET

ESI FUND ACTIONS: 2014-2020

ICT INVESTMENTS
Approximately EUR 21.4 billion from the ESI Funds isavailable for ICT investments over the 2014-2020 funding period:

ESI Funds will mean better access for consumers and businesses toonline goods and services across Europe.
The Funds will benefit e-government services and applications including e-procurement, e-inclusion, e-accessibility, e-learning and e-education services. They will also improve access topublic sector information
such asopen data and help modernise the public sector. Tofully unlock their cost and time-saving potential,
including the only once principle for e-government applications, the focus will beon inter-operability atboth
national and European level.

ESI Funds will also help create the right conditions for digital networks and services toflourish byrolling
out broadband mostly for high- and very high-speed networks, and through other types ofICT infrastructure and large-scale computer systems. Inparticular, rural and peri-urban areas will benefit from these
investments. The European Commission aims toimprove coordination between different Funds atthe
national, regional and local levels, while capitalising onall cost-saving measures for broadband roll-out.

Finally, the Funds will help maximise the growth potential ofthe European Digital Economy. This will
bedone bysupporting ICT Services and applications for SMEs, opening upbusiness opportunities for digital companies regarding intelligent transport systems, and introducing Intelligent Energy Distribution
Systems and ICT solutions toaddress the challenge ofhealthy active ageing.

CONTRIBUTION OFTHE EUROPEAN STRUCTURAL AND INVESTMENT FUNDS TOTHE 10 COMMISSION PRIORITIES
DIGITAL SINGLE MARKET

DIGITAL STRATEGIES
Smart Specialisation Strategies are helping the shift from aclassic ICT sector approach toacomprehensive local/
regional/national digital agenda, meaning that regions will beable toidentify ICT investment priorities relevant
for their territory.
In order tooptimise the impact ofICT investments under the ESI Funds, Member States and regions were obliged
todevelop two strategies before making any digital investments using the Funds:

For 2014-2020, national and regional authorities devised astrategic policy framework for digital growth
within their broader research and innovation strategies inorder toreceive funding for investments inICT products and services.

Each Member State planning touse the Funds for broadband investments also developed aNext Generation
Network Plan that identified where public intervention was necessary toprovide broadband access.

TRAINING AND EDUCATION

EUR 2.2 billion from the European Social Fund (ESF) will beaccessible tosupport human capital development
inICT. Investments will focus onICT skills, support for business creation, e-justice, aswell asensuring cross-country and cross-entity inter-operability ofsystems. Funds are also available for streamlining and integrating systems and processes toimprove transparency, simplification and burden reduction.

CONTRIBUTION OFTHE EUROPEAN STRUCTURAL AND INVESTMENT FUNDS TOTHE 10 COMMISSION PRIORITIES
DIGITAL SINGLE MARKET

STRENGTHENING ADMINISTRATIVE CAPACITY

The Funds will also help develop administrative capacity for the effective application ofthis Digital Single
Market (DSM) legislation and toleverage national public and private funding toenhance and quicken the positive impact ofthe DSM across the regions. For example, technical assistance funds from the European
Agricultural Fund for Rural Development (EAFRD) will help establish aso-called Broadband Contact Point which
will guide decision makers and local actors towards the appropriate source offunding for extending broadband
deployment.
HEALTHY AGEING
16 Member States (Hungary, Czech Republic, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Malta,
Poland, Portugal, Romania, Slovak Republic, Spain and Sweden) will invest more than EUR 950 million ofERDF
funds for ICT solutions inaddressing the healthy active ageing challenge and improving e-health services bypromoting technological development, e-infrastructures and connectivity.

CONTRIBUTION OFTHE EUROPEAN STRUCTURAL AND INVESTMENT FUNDS TOTHE 10 COMMISSION PRIORITIES
DIGITAL SINGLE MARKET

EXPECTED RESULTS

14.6 million additional

households will have access
to high-speed broadband
with ERDF support.

77500 companies will receive

ERDF support toenhance the use
ofquality ICT services and develop
ICT products.

850 million from EAFRD

will beused toroll out broadband
inremote areas, reaching 15%
ofEuropes rural citizens.
Under the EAFRD,
the 12 billion investment
tomodernise farms will also beused
tointroduce precision
farming and ICT.

41.7 million people

18.8 million people
inrural areas will benefit from
improved access toICT services
orinfrastructures under EAFRD.

will benefit from improved

health services, including
investments in e-health.

CONTRIBUTION OFTHE EUROPEAN STRUCTURAL AND INVESTMENT FUNDS TOTHE 10 COMMISSION PRIORITIES
DIGITAL SINGLE MARKET

PROJECT EXAMPLES

A major digital communications project inone ofPolands less developed regions has the potential
toprovide anadditional 220000 people with access tobroadband services. The construction ofthe broadband network infrastructure helps toeliminate the digital divide inareas that have previously been
deprived ofbasic broadband services.
http://europa.eu/!mK38wr

New business models and incubation support helps entrepreneurs inthe Scandinavian gaming industry
establish viable companies and survive inahighly competitive business environment ofone ofthe biggest digital industries inthe world.
http://www.scangame.dk

Estonia isone ofthe most advanced e-societies inthe world. Its latest innovation isan e-residency card for
non-nationals. Much ofEstonias e-government infrastructure has benefitted from investments under ERDF.
http://europa.eu/!mV87uB

In Croatia, anintegrated information system for the Croatian Health Insurance Company isbeing developed with ESI Fund support toinclude services such ase-directives, e-drug prescription aswell asan online
payment system. Astandardised, integrated and interoperable information system inCroatian public hospitals will also beintroduced.
http://bit.ly/1lkUhn0

CONTRIBUTION OFTHE EUROPEAN STRUCTURAL AND INVESTMENT FUNDS TOTHE 10 COMMISSION PRIORITIES
DIGITAL SINGLE MARKET

The ESF can help inachieving the economic and employment opportunities the Internet offers: inGermany atthe
University ofDresden, the ESF supported young researchers who worked atthe frontier ofR&D inthe field ofIT
Technologies. The ResUbic Lab project comprised 19 young researchers working oncyber-physical systems, software for decision planning, and architectures for cloud computing.
http://europa.eu/!XK43Xx

More factsheets onhow ESI Funds contribute toCommission priorities are available athttp://ec.europa.eu/contracts_grants/funds_en.htm
Other factsheets inthe series: Jobs, Growth and Investment Energy Union Internal Market Economic and Monetary Union Justice and
Fundamental Rights Migration