COVID-19 pandemic - Structured Engagement with Industry
Ref. Ares(2020)3580458 - 07/07/2020
Digital Europe Executive Covid-19 Advisory Group
1/ Objectives:
− Understand the needs of the digital eco-system in Europe
− Get the stronger actors to commit to help the enterprises and employees
most hit by the crisis
Scene setter:
Digital Europe presented on March 19 a long list of short and long-term
recommendations (see background). The main ones in the short term:
− Keep existing public tenders open and launch as many new tenders as
possible, reviewing contractual obligations to al ow SMEs to participate.
− Give flexibility on state aid rules.
− Establish an online platform to promote remote working and education
tools to SMEs and schools.
− Delay certain new ICT product compliance obligations, which wil be difficult
to meet because of factory closures and disruptions to supply chains.
− Give further clarity on GDPR compliance for handling employee and
customer data.
In the long term:
− Launch a big stimulus package to support the digital transformation of
sectors such as health, environment, transport, agriculture and tourism.
− Redesign the EU budget and concentrate on digital education, cybersecurity,
health, environment and digitalisation of SMEs and key industries.
− Help SMEs getting online.
− Accelerate investment in the European Gigabit Society targets.
− Adopt legislation to facilitate remote operations and activities (e.g. rights for
employees, implementation of digital signatures).
− Accelerate the implementation of a common European data space for
health.
− Ensure interoperability of Electronic Health Records.
2/ Running order
COVID-19 pandemic - Structured Engagement with Industry
NA
3/ Key messages / LTT
− The Commission is using al the instruments at its disposal to mitigate the
consequences of the pandemic. The Commission is ready to provide
financial support to accompany the industry and we are doing so already.
− In this crisis, it is of utmost importance to make sure that the Single Market
functions. The Commission is working on a continuous basis with Member
states to ensure unhindered flow of goods.
− In addition to the urgent measures needed to counter the immediate
consequences of the pandemic, the reflection is underway to prepare for
the future.
− In that context, the digital transformation of our societies and economies
wil be a crucial element of Europe’s economic response to COVID19.
− The Digital Europe Programme and the Connecting Europe Facility with
Member State co-funding, wil be part of the EU’s response in the health
sector, start-ups and SMEs, eGovernment services including education,
digital skil s, trust and security and technological sovereignty.
4/ Questions to the interlocutor(s)
Digital Europe’s analysis of the sector is presented in the background.
1. Impact on production/provision of services/etc.
What is the most urgent problem you have to face? What are the particular
obstacles faced? Do you have plans to facilitate teleworking?
2.
Assessment of measures
What EU level actions are needed - short-term - long term? Do you see a
need for national policy coordination? Is there a need for a ‘regulatory
holiday’ or relaxation of rules? What should the EU or Member States do to
help your industry recover swiftly once the pandemic is over? Is there a need
for a redesign of the MFF?
3. Conversion of activities towards COVID-19 mitigation
What is the most urgent problem you have to face? What are the particular
obstacles faced?
COVID-19 pandemic - Structured Engagement with Industry
5/ Defensives (based on questions received so far from the
industry)
Role of the Digital Europe Programme (DEP) in fighting COVID19
− The health sector relies on High Performance Computing (HPC) and Artificial
Intel igence (AI) to process big data, for example to help find a vaccine and
for simulations and forecasts on germ progression.
− Digital Europe supports the build-up of European health data pools, the
underpinning cloud infrastructure and testing and experimentation facilities
(TEF) of digital solutions for deployment across the EU.
− Funds also support the adoption of the European Health Record (EHR)
exchange format and the rol out of the eHealth Digital Service (e.g. to
support new domains such as lab tests, medical images, hospital discharge
report).
What is the support envisioned for SMEs?
− SMEs represent over 99% of al businesses in Europe, yet only one out of
five SMEs in the EU are highly digitised. Those that are digitalised are better
able to weather the crisis, as noted by DIGITAL EUROPE.
− In terms of support to companies, we have put in place a multipronged
strategy to counter the economic impact of the coronavirus pandemic,
addressing specifical y the needs of SMEs. The strategy provides for the use
of the ful flexibility of the fiscal and state aid frameworks. The EU budget
wil deploy its existing instruments to provide liquidity support, in addition
to national measures.
− For example, the Commission has adopted investment initiatives worth EUR
37 bil ion with the objective of supporting the health sector, mitigating the
impact on the labour market and supporting SMEs in al relevant sectors.
EUR 1 bil ion from the EU budget wil be real ocated as a guarantee to the
European Investment Fund to encourage banks to provide liquidity to SMEs
and mid-caps. This measure wil al ow at least 100 000 of them access to
funding amounting to around EUR 8 bil ion.
− The Enterprise Europe Network (EEN) and the SME Envoy Network have
been activated to help SMEs respond to the crisis, giving practical support
and information.
COVID-19 pandemic - Structured Engagement with Industry
− In addition, the Commission is currently reviewing which policy measures
from the new SME Strategy have relevance for the current situation and
could be put in place faster.
− In the longer term, European Digital Innovation Hubs (EDIH), supported by
the Digital Europe programme, wil help ensure that every company, smal
or large, high-tech or not, can grasp the digital opportunities. EDIHs act as
one-stop-shops where companies especial y SMEs, start-ups and mid-caps
can get access to technology-testing, financing advice, market intelligence
and networking opportunities
Flexibility on State aid rules
− The Commission has already approved more than fifty notified measures
related to the crisis, several within 24 hours after notification.
− The Commission adopted, on 19 March, a “Temporary Framework” al owing
Member States to provide certain types of aid to ‘digital’ and ‘non digital’
companies, including schemes to grant up to €800,000 to a company to
address its urgent liquidity needs, state guarantees for loans or subsidised
public loans to companies.
− The Temporary Framework has already been amended once and wil likely
be amended again, il ustrating that the Commission shows a high degree of
flexibility regarding the application of the State aid rules under the current
circumstances.
− The activation of the general escape clause of the EU fiscal framework wil
also al ow for national discretionary stimulus.
− In addition, the Commission is planning a number of public consultations on
existing rules in the field of State aid.
What is the EU planning to do in Digital Skills and Education?
− Short-term actions:
o The Digital Skil s and Jobs Coalition has launched a dedicated cal for
pledges to provide immediate solutions to support digital skil s. In 2
weeks, 36 organisations have already submitted their commitments.
o The EU Code Week community is supporting teachers transitioning to
remote teaching by organising regular Coding from home webinars.
The 4th webinar wil take place at the end of April.
COVID-19 pandemic - Structured Engagement with Industry
o In Q3 2020, DG Connect wil set up the European Digital Skil s and
Jobs Platform. It wil be a one-stop-shop that wil showcase actions on
digital skil s from al Commission services and the Member States via
their National Digital Skil s and Jobs coalition.
− Erasmus and the European Social Fund wil invest more in digital activities
for students, schools, educators and citizens in general and the Digital
Europe Programme wil boost specialised training activities for digital
specialists to train and attract the best talents.
− The new Digital Education Action Plan wil support MS and the education
community in the phase of economic recovery.
Interoperability of Health Records
− The Commission adopted a Recommendation on a European Electronic
Health Record exchange format. It is crucial that it is evenly implemented
across European countries, to unlock the flow of health data across borders.
− The promotion of the use of Electronic Health Records based on a common
European exchange format, and the creation of a European Health Data
Space (envisaged from 2022) are key actions put forward in the Digital
Strategy of February 2020 and in the Commission Communication “A
European strategy for data”. The Commission looks forward to work more
on these issues with the eHealth Stakeholder Group.
What can the Commission do to accelerate investment in the deployment of
digital infrastructure from very high capacity fixed broadband to 5G?
− In addition to the possibility for Member States to devote regional funds to
these areas and the support from the InvestEU Fund, the Commission has
proposed the Digital Europe Programme and the new Connecting Europe
Facility (CEF2).
− With national co-funding, the CEF2 Digital proposed EUR 2bn budget for
Gigabit connectivity for socio-economic drivers would trigger investments in
Member States between EUR 2.6bn and EUR 6.6bn.
− The other EUR 1bn is planned for 5G corridors along transport corridors to
deploy seamless 5G coverage along at least 8000 km of difficult cross-border
sections, stimulating private investments to cover a full pan-European
corridor network of 26000 km.
COVID-19 pandemic - Structured Engagement with Industry
− CEF2 Digital wil also support critical terabit connectivity between
infrastructures of strategic importance such as cloud and data
infrastructure, or high performance computing.
− CEF2 Digital also includes the possibility to connect remote areas and islands
with 5G or submarine cables.
− Finally, CEF 2 Digital can contribute significantly to financial instruments,
noticeably by shifting the amount of risk between investors (e.g.,
contribution to a first-loss piece) in the respective instrument.
As we are likely to face compliance issues, wil the Commission adjust
regulatory deadlines for the acts that will be applicable or will enter into force
in the coming months?
− I have instructed my services to make a thorough analysis of al the
upcoming regulatory deadlines and of their adequacy under the current
circumstances. Your input wil be appreciated in this respect.
What is done to ensure that the Single Market is functioning and impact on
supply chains minimised?
− Our objective is clear: to ensure that everyone has access to the goods they
need. For this, we need to make strategic use of intermediaries such as
industrial clusters, chambers of commerce, trade associations, and other
networks that are able to reach quickly the expertise and skil s of groups of
specialised firms, technology providers, fablabs and community makers (3D
printing). They can help to match their offers with demand from health care
providers and regional authorities for instance, and to find solutions to
supply chain disruptions, especial y for SMEs. In addition to measures that
have already been taken and the regular monitoring done by the
Commission, the Commission has established the Single Market
Enforcement Task-Force jointly with the Member States, as announced on
10 March, with the aim to strengthen cooperation on the enforcement of
Single Market rules
6/ Background information on sector specificities
1.
SHORT OVERVIEW:
COVID-19 pandemic - Structured Engagement with Industry
DIGITALEUROPE is the leading trade association representing digitally transforming
industries in Europe. They stand for a regulatory environment that enables European
businesses and citizens to prosper from digital technologies. Their membership represents
over 35,000 businesses who operate and invest in Europe. It includes 71 corporations which
are global leaders in their field of activity, as well as 40 national trade associations from
across Europe. Members include Intel, Amazon, Google, Huawei, SAP, Siemens, and
associations like Afnum or BitKom.
How the sector is being affected (Digital Europe members) − Companies with a large share of revenue coming from online sales are less hit by the
crisis.
− Companies with employees who can work digitally are less hit by the crisis in the short
term.
− Factory closures in China, Italy and now elsewhere are having a huge knock-on effect on
hardware supply chains.
− There is a huge degree of uncertainty in the market, demand has been depressed and
there are no new contracts.
− There is a lot of confusion about what happens to contracts unfulfil ed due to
Coronavirus: are liabilities still valid or is this per se
force majeure?
− There have been few layoffs and bankruptcies yet, compared to some other sectors,
although this is expected to change. SMEs have been hit the hardest.
− Many of the national emergency packages are targeted towards low-paid jobs and not
medium-sized tech companies. This might lead to brain-drain from tech SMEs and will
hamper European competitiveness and the number of successful European scale-ups.
− There remain several important barriers to working remotely:
o Connectivity issues: our fixed and mobile networks are being stretched and many
people do not have access to high-speed internet at al .
o Restricted trade in goods is affecting supply chains of critical hardware for remote
working, like laptops, monitors and printers.
o ICT shops are closed, reducing the availability of essential equipment.
o Maintenance workers critical for upkeep of remote working tools are affected by
new travel restrictions.
o Security restrictions, such as in banks or aerospace sectors
− Issues with supply chains and factories closing are leading to fears about meeting new
compliance deadlines.
− There will be issues meeting European Commission deadlines for consultations.
− Companies are struggling with handling employee and customer data to respond to, and
control, the spread of the virus in a way that complies with the data protection laws, and
this might lead to further spread.
Full list of proposed measures
COVID-19 pandemic - Structured Engagement with Industry
Short term:
− Launch a special investment plan for innovative small and medium-sized tech companies
in key sectors, enabling them to retain talent and create the basis for Europe’s
competitiveness post-crisis.
− Keep existing public tenders open and launch as many new tenders as possible,
reviewing contractual obligations to allow SMEs to participate, e.g. through fast-track
application forms or dividing into smaller projects with less risk and liability.
− Add remote working devices, e.g. printers, laptops, monitors etc., to the list of essential
goods exempt from border controls.
− Create a dedicated European Innovation Council (EIC) Accelerator call open until end-
April to help innovative SMEs and start-ups to develop tech solutions to tackle the
COVID-19 outbreak.
− Keep ICT and electronics stores open during lockdowns to al ow access to essential
remote working tools.
− Give flexibility on state aid rules.
− Establish an online platform to promote remote working and education tools to SMEs
and schools.
− Exempt ICT professionals essential for the maintenance of remote working equipment
from the travel bans.
− Delay certain new ICT product compliance obligations, which will be difficult to meet
because of factory closures and disruptions to supply chains.
− Give further clarity on GDPR compliance for handling employee and customer data in
order to respond to the spread of the virus.
− Give clarity on use of contractual force majeure and those unable to meet contractual
obligations due to Coronavirus.
− Delay the closing of ongoing European Commission and EU agency consultations to give
stakeholders adequate time to respond.
Medium/long term:
− Launch a big stimulus package to support the digital transformation of sectors such as
health, environment, transport, agriculture and tourism.
− Redesign the EU budget so that it wil support recovery from the crisis and redirect
spending to areas that wil give Europe a high return on investment: digital education,
cybersecurity, health, environment and digitalisation of SMEs and key industries.
− Help SMEs getting online, for instance using e-commerce to increase their robustness
and competitiveness.
− Invest in digital educational platforms, allowing teachers to do their job remotely as well
as across European borders, and invest in educating teachers to use these tools and
platforms.
COVID-19 pandemic - Structured Engagement with Industry
− Accelerate investment in the European Gigabit Society targets, speeding up measures to
facilitate deployment of digital infrastructure from very high-capacity fixed broadband to
5G.
− Adopt legislation to facilitate remote operations and activities. This could include EU
rights for employees to work from home and further the implementation of digital
signatures so that more contracts can be signed remotely.
− Accelerate the implementation of a common European data space for health so that data
essential for tracking and fighting the disease can be shared between the public sector,
researchers and private companies whilst maintaining strong security and data
protection safeguards.
− Ensure interoperability of Electronic Health Records and boost investment in AI in the
health sector.
2. KEY EU POLICY ACTIONS RELEVANT FOR THE SECTOR:
eHealth Policy
−
The Commission has adopted a Recommendation on a European Electronic Health
Record exchange format; it is crucial that it is evenly implemented across European
countries, to unlock the flow of health data across borders.
−
It is key that health authorities are engaged in the run up to the European Health
Data Space. The amount of data already available on COVID-19, if pooled and used,
could make a difference in our understanding of the disease and of the optimal
treatment for each patient. Going beyond the immediate tackling of the COVID-19
crisis, the European Health Data Space can contribute improving the general
resilience and efficiency of health systems. For example, it could enable
teleconsulations and telemonitoring, facilitating people with underlying conditions to
receive medical follow-up at home.
−
The promotion of the use of Electronic Health Records based on a common European
exchange format, and the creation of a European Health Data Space (envisaged from
2022) are key actions put forward in the Digital Strategy of February 2020 and in the
Commission Communication “A European strategy for data”. The Commission looks
forward to work more on these issues with the eHealth Stakeholder Group.
−
On 8 April 2020, the Commission adopted a Recommendation on a common Union
toolbox for the use of technology and data to combat and exit from the COVID-19
crisis, in particular concerning mobile applications and the use of anonymised
mobility data. The Recommendation sets out a process towards the adoption with
the Member States of a Toolbox, which first priority is a pan-European approach for
COVID-19 mobile applications.