Nineteen European CEOs, including Ericsson President and CEO, Börje Ekholm, today call on EU Commission President Ursula von der Leyen and the College of Commissioners to act urgently if the region is not to become a sideshow in the competitive digital economy.
NEWS
SEP 10, 2024
Photo: Guillaume Perigois
The following open letter – signed by the CEOs of Capgemini, CaixaBank SA, Deutsche Bahn AG, Deutsche Bank, Einride, Enel, Eni S.p.A, E.ON SE, Ericsson, Iberdrola, Industria de Diseño Textil S.A, Nokia Corporation, Renault Group, RWE AG., SAP SE, Schneider Electric, Siemens AG, Sonae, and VERBUND – was delivered to Ursula Von Der Leyen and the College of Commissioners today, September 10.
Open letter from EU industrial leaders on digitalisation, connectivity and competitiveness
Europe is approaching the mid-twenties of the new century in the context of an unstable geopolitical environment and uncertain economic outlooks. Great challenges and opportunities lie ahead of us, which require Europe to embrace the digitalisation of its societies and economies. Developing and implementing digital innovation is critical to increase Europe’s competitiveness. In this context, enhanced and secure connectivity underpins digitalisation as one key enabler for productivity and decarbonization across sectors.
The European Commission noted in a recent White Paper that “the future of competitiveness of all sectors of Europe’s economy depends on advanced digital network infrastructures and services, as they form the basis for global GDP growth between EUR 1 and 2 trillion”. The Digital Decade targets state that new 5G and FTTH networks or satellites must reach almost every corner of Europe by 2030, so that no citizen and no business is left behind. Heads of government, in recent European Council conclusions, also noted that “digital transformation of business, government and society requires a true Single Market in digital services and data, encouraging and facilitating investment in digital infrastructure like 5G and 6G, and the application of game-changing digital technologies such as AI, blockchain, quantum computing and immersive reality technology”.
In the past decade, as noted in a paper by the European Round Table for Industry, €500 billion have been invested by telecom operators in upgrading and expanding Europe’s networks. Mario Draghi – who just issued his milestone report The future of European competitiveness – reminded us that, despite efforts, telecom “investment per capita is half of that in the US, and we are lagging in 5G and fibre deployment”.
This is why we agree with the Commission analysis that more must be done to fix the situation and we support action aimed at improving investment in connectivity and digitalisation across the Continent.
What is at stake for the European economy is much more than the future of one sector. It was underlined by former Italian Prime Minister Enrico Letta in his high-level Report when he noted that “the lack of integration in the financial, energy, and electronic communications sectors is a primary reason for Europe’s declining competitiveness”. If we do not swiftly create the conditions for a major increase in network investment now, then the entire European industrial fabric will suffer.
Today, European businesses invest in digitalising their processes, applying AI, and accomplishing the “Industry 4.0” vision, but this cannot be achieved without innovative connectivity. To put it in Enrico Letta’s words: “technologies such as 5G (6G in the future), IoT, web3.0, edge-cloud computing or AI will create entirely new economic opportunities. Of course, the deployment of these technologies relies on networks, which will provide new capabilities such as increased computing power or different latency levels”. Being home to some of the world’s top telecom manufacturers, Europe has been a major force in advancing network innovation. However, more support is needed if we are to continue to build European technology leadership in trusted and advanced connectivity.
A wealth of use cases is at stake, across sectors of the economy and of society: we would like to offer some examples of the depth and range of such use cases.
In the mobility sector, secure connectivity and services can help make traffic safer and less polluting. In the EU internal energy market, smarter networks and AI can benefit the entire value chain, including generation, transmission, distribution, and commercialization. This includes technologies such as fast connectivity for remote renewable sites or enabling intelligent consumption to reduce demand peaks.
In renewables, modernising and expanding the network infrastructure can secure the transmission, processing and use of large data volumes for smart meters and flexibility demand. In the healthcare sector, digital infrastructures are crucial for advancing in e-health: this includes digital monitoring and care, remote trials, as well as AI solutions for faster drug discovery, manufacturing, and supply. In the railway sector, we require investment in 5G for the Future Railway Mobile Communication System (FRMCS) and improved passenger services. 5G and FRMCS will offer secure, efficient, and high-capacity communication for railway modernization and safety, along with reliable on-board connectivity, improving the passenger experience.
Connectivity networks will also enable AI usage across industries, from classical forecasts and recommendations to intelligent business networks, digital assistants and generative AI models. Moreover, a harmonized, innovation-friendly implementation of the EU AI Act will be essential for AI to flourish in Europe.
5G private networks, in specific, can boost industrial automation by connecting heavy-duty applications across various sectors. These applications work in harsh and remote environments, enabling wider and easier digital deployment in industrial sites. More investment is also needed to fight cybercrime, with all stakeholders joining the effort and in a harmonized way across the single market: we must protect critical infrastructures such as power grids as well as vital economic activities such as those in the financial sector.
Europe’s industrial base is powerful, but it requires high levels of investment and adequate policy conditions so that each of its parts can grow, innovate and stay competitive at the global level. Connectivity is no exception. As European industry, we need increased collaboration and investment in trusted, secure, resilient, and high-quality connectivity, as well as in computing infrastructure.
This is why we, as leading CEOs, believe that it is urgent to take action now and shape the future of European digital infrastructure. European competitiveness is at stake. We applaud the launch of the EC White Paper and believe it is essential to ensure that the needs and proposals of all industries are considered in future work. Only by doing so can the efforts of European players be sustainable and successful.
This open letter is signed by:
Aiman Ezzat, CEO, Capgemini
Börje Ekholm, President & CEO, Ericsson
Christian Klein, CEO and the Chairman of the Executive Board, SAP SE
Christian Sewing, CEO, Deutsche Bank
Cláudia Azevedo, CEO, Sonae
Claudio Descalzi, CEO, Eni S.p.A.
Flavio Cattaneo, CEO, Enel
Gonzalo Gortázar Rotaeche, Consejero Delegado (CEO), CaixaBank, SA
Ignacio S. Galán, Executive Chairman, Iberdrola
Leonhard Birnbaum, CEO, E.ON SE
Luca de Meo, CEO, Renault Group
Markus Krebber, CEO, RWE AG
Michael Strugl, CEO, VERBUND
Óscar García Maceiras, CEO, Inditex, S.A.
Pekka Lundmark, President & CEO, Nokia Corporation
Peter Herweck, CEO, Schneider Electric
Richard Lutz, Chairman of the Management Board and CEO, Deutsche Bahn AG
Robert Falck, CEO, Einride
Roland Busch, President and CEO, Siemens AG
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