Filenews 13 June 2021 - by Theano Thiopoulou
Our lives are digitally located on a mobile phone or computer, and as time goes on, the more time changes, whether for travel, daily transactions and other needs. On the occasion of the COVID-19 pandemic, everything related to digitisation has been accelerated, both in the public and private sectors. Today, we now do electronic, and mainly via mobile phone, banking transactions, through the internet are made tax returns, training, teleworking, vaccination certificates, holiday arrangement, with the booking and payment of air tickets and hotels, electronic auctions, product purchases, orders for purchases, electronic signature. One of the gains of this difficult period is the rapid transition to digital processes and the bypass of many anchorages of the rusty state machine.
The world has already entered the orbit of the 4th industrial revolution. A rapid digital transformation is already underway and is changing people's daily lives, favouring entrepreneurship, creating new jobs. Digital technologies are changing not only the way people communicate, but also the way they live and work in general. Taking advantage of the opportunity given to it by the COVID-19 pandemic, the EU is working to accelerate the transition to a technologically advanced world. Cyprus is expected to spend more than €280m on the project. for the digital transition, which will be drawn from the Recovery and Resilience Plan.
Executive deficit
The EU is facing increasing demand across the board for digital-skilled workers. It is estimated that the shortage of highly digital-skilled executives in Europe is close to one million. EU Member States want this number to be halved by 2025 by improving digital education and upgrading workforce skills. In the coming years, the European Union will strengthen its support for the digital transition. There will undoubtedly be a need for further measures at EU level, notably to increase investment in infrastructure, stimulate innovation, promote digital champions and digitise businesses, but also ensure an adequate legislative and regulatory framework in the areas of advanced computing and data, artificial intelligence and cyber security.
What to expect from the citizens
On 1 July and for 12 months the European Covid Certificate will be accepted in all Member States in order to facilitate the safe movement of citizens within the EU. This certificate will be available either in digital or paper form and will bear a QR code proving that the holder of the certificate has been vaccinated (with vaccines approved by the EMA or who), or has a negative test, or has recovered from Covid. Member States should accept vaccination certificates issued in other Member States for persons vaccinated with a vaccine approved by the European Medicines Agency (EMA) and the World Health Organisation. The EU Regulation on the Covid certificate will be valid for 12 months.
The Commission will set up a portal to ensure that all certificates can be verified across the EU and to support Member States in the technical implementation of certificates. Member States remain responsible for deciding which public health restrictions can be lifted by travellers, but should apply the waiver in the same way to travellers with a digital green certificate.
Digital ID
The Commission has also proposed, in another recent communication, a framework for European digital identity, which will be available to all EU citizens, residents and businesses. Citizens will be able to prove their identity and share electronic documents from their European digital ID wallets with a simple click on their phone. They will be able to access online services with their national digital identification, which will be recognised across Europe.
Very large platforms will be obliged to accept the use of European digital ID wallets, at the request of the user, for example to prove their age. The use of the European digital ID wallet will always be made at the user's choice.
Under the new regulation, Member States will offer citizens and businesses digital wallets, in which they can link their national digital identity card, with evidence of other personal characteristics (e.g. driving licence, diplomas, bank account). Such wallets may be provided by public authorities or private bodies, provided that they are recognised by a Member State.
The new European digital ID wallets will enable all Europeans to access services online, without having to use private identification methods or share personal data unnecessarily. With this solution, they will have full control over the data they share.
The European digital ID will be:
- Available to anyone who wishes to use it: Any EU citizen, resident and business in the Union who wishes to make use of the European digital ID will be able to do so.
- Widely usable: European digital ID wallets can be widely used, either as a way of identifying users or to prove certain personal characteristics, with a view to accessing public and private digital services throughout the Union.
- Users will have control over their data: European digital ID wallets will allow citizens to choose which aspects of their identity, data and certificates they communicate to third parties, as well as to monitor such notifications. User control ensures that only information that needs to be shared will be shared.
In order to make it a reality, the proposal shall be accompanied by a recommendation as soon as possible. The Commission calls on the Member States to establish a common toolkit by September 2022 and to start the necessary preparatory work immediately. This toolkit should include technical architecture, standards and guidelines for best practices.
Payment habits have changed
The digital revolution has made people significantly change their payment habits – it is increasingly common now to pay by passing a card intact. The digitisation of the majority of banking operations, which continue to be compulsory in-store, is a central objective of the banks for 2021.
Following the outbreak of the pandemic, the transformation of banks has accelerated considerably, but several steps will still be needed to minimise the reasons for traders to visit their network. Upgrading e-banking, developing new mobile apps and adopting remote customer identification methods are steps in this direction. This is a process that has already begun and accelerated since the pandemic. Now, a series of transactions that previously required contact with the call centre or even a visit to a store can be completed online.
A new survey of consumer habits with regard to payments in the euro area (SPACE), conducted by the European Central Bank and national central banks, reveals that almost 50% of adults in the euro area currently prefer digital payments and this trend appears to have accelerated further during the coronavirus pandemic (COVID-19). While cash is still the most commonly used payment instrument for face-to-face transactions, their usage rate decreases. For distance purchases, cards and online payments are the preferred options. And direct debits or credit transfers are the most common way to pay bills.
Digital Europe for 2021-27
In the coming years, the European Union will strengthen its support for the digital transition, as reflected in the recent proposal for the Digital Europe programme (for the period 2021-2027), which will also be the first time-limited funding programme dedicated solely to supporting the digital transition in the EU.
There is no doubt that further measures will be needed at EU level, notably to increase investment in infrastructure, stimulate innovation, promote digital champions and digitise businesses, reduce the existing digital divide, remove remaining barriers to the digital single market and ensure an adequate legislative and regulatory framework in the areas of advanced computing and data , artificial intelligence and cyber security.
