Digital Dossier
Summary
2. Digitalisation for SMEs: A concrete opportunity
Digital transformation is one of the European Union's top priorities, and SMEs are at the heart of this journey. From the adoption of new technologies to training in digital skills, from cybersecurity to access to innovative financial instruments, the EU offers businesses concrete tools to make the digital leap.
Significant obstacles nevertheless remain, particularly for smaller businesses, linked to skills shortages, limited awareness of the opportunities available, and difficulties in accessing support and funding tools. In response to these needs, the European Union has progressively developed dedicated programmes aimed at supporting SMEs in the digital transition and strengthening the innovation capacity of the productive system.
Digitalisation is also accompanied by a gradual and necessary evolution of the European regulatory framework. In this context, the EU’s main regulatory measures on artificial intelligence, cybersecurity, interoperability and data are becoming increasingly relevant to business activity.
Against this backdrop, it is essential for SMEs to be able to rely on timely information, qualified guidance and support tools capable of turning European policies into concrete opportunities for compliance, investment and growth.
3. European Digital Policies
3.1 European Digital Decade: Digital Targets for 2030
The Strategic Programme for the Digital Decade, which sets concrete targets and goals for 2030, guides Europe's digital transformation.
The 2030 Digital Decade Strategic Programme establishes an annual cooperation cycle to achieve common goals and targets. This framework is based on an annual cooperation mechanism involving the Commission and the Member States.
The Commission will review the objectives by 2026, to take stock of technological, economic, and social developments.
For more information: click here
3.2 Artificial Intelligence
The European Union regards artificial intelligence as a strategic driver of competitiveness, innovation and technological sovereignty. Its approach seeks to combine industrial development with the protection of fundamental rights, promoting AI that is safe, trustworthy and consistent with European values.
From this perspective, the EU has gradually built up a broad set of initiatives to support research, strengthen industrial capacity, encourage the uptake of AI by businesses, and support the implementation of the new European rules in this field.
The White Paper on Artificial Intelligence, published by the European Commission in February 2020, marked the first step in the EU’s AI strategy, setting out an approach designed both to foster the development of AI and to ensure its safe and trustworthy use. Since then, the EU’s action has progressively developed along two complementary tracks: on the one hand, the creation of a common regulatory framework and, on the other, the strengthening of Europe’s capabilities in innovation, infrastructure, data and industrial uptake.
It is in this context that the AI Act was introduced, as the first European regulatory framework specifically dedicated to artificial intelligence. It entered into force in August 2024 and is being applied progressively. The Regulation takes a risk-based approach, distinguishing between prohibited practices, high-risk systems, limited-risk systems and minimal-risk applications, and lays down obligations that vary according to the impact of the AI systems concerned. This framework is currently under review as part of the Digital Omnibus, which proposes targeted measures to clarify certain obligations, reduce administrative complexity, and support businesses and operators in achieving proportionate compliance.
At the same time, the European Union has strengthened the industrial and practical dimension of its strategy. With the AI Continent Action Plan, presented in April 2025, the Commission set out a series of actions aimed at consolidating Europe’s leadership in AI. This was followed, in October 2025, by the Apply AI strategy, which seeks to accelerate the integration of artificial intelligence across key industrial and public-sector fields, with particular attention to SMEs.
For more information: click here
3.3 Digital Skills: the engine for innovation
The success of the digital transition also depends on people. The EU promotes Digital Skills for workers, entrepreneurs, and citizens. From academies for advanced skills to basic skills, there are many opportunities to strengthen human capital. The digital transition cannot be realised without the right skills. European initiatives target both basic and advanced skills in areas such as cybersecurity, artificial intelligence, cloud, and data.
EU Digital Skills & Jobs Platform
The European reference point for training, tools, resources, and opportunities in the digital field. It includes online courses, best practices, events, and country factsheets.
More information: click here
Pact for Skills
European skills alliance: promotes partnerships between businesses, public entities, and training providers to upskill workers, including those in SMEs.
More information: click here
3.4 DSA and DMA for a secure Digital Market
An essential element of the digital strategy is the creation of a safer and more open digital single market, focusing on user rights and fair competition among businesses. This is made possible by two legislative pillars: the Digital Services Regulation (Digital Services Act - DSA) and the Digital Markets Regulation (Digital Markets Act - DMA), which renew the EU's legislation on digital services.
Adopted by the co-legislators in 2022 and entering into force in May 2023, they guarantee a unified regulatory framework for the entire Union. The DSA establishes responsibilities for intermediary services, particularly online platforms. Given the risks that large platforms pose for the dissemination of illegal and harmful content, they are regulated by specific guidelines. The DMA sets the rules for businesses that have the status of gatekeeper, targeting those most exposed to unfair practices; this includes services such as online intermediation, social networks, and cloud computing. Based on the DSA, the Commission has proposed a regulation aimed at streamlining the collection and sharing of data for short-term rental accommodation. The legislative procedure concluded with the signing of the final regulation on April 11, 2024.
4. Key Programs for Digitalisation
Digital Europe Programme
Supports the deployment of AI, cybersecurity, the use of data, and advanced digital skills. The European Digital Innovation Hubs (EDIH) are a central component.
More information: click here
Single Market Programme
Promotes the digitalization of businesses through the development of services, common standards, and access to the single market.
More information: click here
Structural Funds (ERDF and ESF+)
Co-finance digital projects at the local and regional level, favouring investments in technologies, training, and infrastructure.
More information: click here
Cross-cutting programs supporting digital:
Erasmus+
Not just mobility: Erasmus+ also funds projects to strengthen digital skills in VET (vocational education and training), worker upskilling, and cooperation between businesses and training centres.
More information: click here
Horizon Europe
The EU's main research and innovation program supports the development of advanced digital solutions (AI, robotics, data economy, digital twin, etc.) and collaboration between businesses, universities, and research centres.
More information: click here
InvestEU
Funds innovative business projects, including those with a strong technological and digital component. It also offers guarantees and financial instruments accessible to SMEs.
More information: click here
3.5 Digital Omnibus: simplification for businesses
The Digital Omnibus is the seventh simplification package presented by the European Commission in November 2025. The package aims to make the EU’s digital regulatory framework simpler and more effective by introducing targeted changes to existing legislation on data, artificial intelligence, cybersecurity and privacy. Its objective is to reduce administrative burdens and support the competitiveness of businesses, particularly SMEs, while fostering a more integrated and innovative European digital market.
The Digital Omnibus consists of two proposals: one aimed at simplifying the EU’s digital legislative framework, and another designed to facilitate the implementation of harmonised rules on artificial intelligence.
From this perspective, the package takes an approach aimed at reducing fragmentation and overlap among the EU’s main digital regulatory instruments, including the GDPR, the ePrivacy Directive, the Data Act and NIS2. The objective is to simplify compliance requirements under existing legislation and strengthen the overall coherence of the regulatory framework, including through better coordination of notification and reporting obligations.
The second proposal focuses on the implementation of the AI Act, introducing measures intended to support businesses and operators in moving towards gradual and proportionate compliance. The proposed changes are designed to clarify the applicable obligations, reduce administrative complexity, and encourage the responsible use of artificial intelligence and data. Overall, the Digital Omnibus seeks to create more favourable conditions for the development of digital innovation and to reduce compliance costs for businesses.
The Digital Omnibus is currently under consideration by the European co-legislators. As regards the proposal on artificial intelligence, on 13 March 2026 the Council of the EU adopted its position, confirming the Commission’s general approach aimed at simplifying the implementation of harmonised rules on AI. Following the adoption of the Council’s negotiating mandate, negotiations with the European Parliament are now expected.
For more information: click here
3.5. Digital Omnibus: simplification for SMEs
The Digital Omnibus is the new package introduced by the European Commission to simplify and make the EU’s digital regulatory framework more coherent, by streamlining existing rules on data, artificial intelligence, cybersecurity and privacy. Its aim is to reduce administrative burdens, enhance regulatory clarity and support business competitiveness, in particular for SMEs, while fostering a more integrated and innovative European digital market.
The Digital Omnibus is a legislative initiative presented by the European Commission in November 2025 with the aim of making the EU’s digital regulatory framework simpler, more coherent and more effective. Rather than introducing new rules, it takes a targeted approach to existing legislation to reduce fragmentation and overlaps across areas such as data protection, privacy, cybersecurity, artificial intelligence and data sharing. The proposal is based on a coordinated review of key instruments, including the GDPR, the ePrivacy Directive, the Data Act and NIS2, and seeks to streamline compliance requirements. In particular, it aims to improve coordination between existing notification and reporting obligations, exploring more integrated approaches that could move towards a single or simplified point of contact for companies when interacting with authorities across different digital regulatory frameworks, thereby reducing duplication and administrative burden.
A core part of the package focuses on the implementation of the AI Act, with measures designed to support businesses and other stakeholders in a more gradual and proportionate transition towards compliance. The proposed adjustments aim to clarify applicable obligations, reduce administrative complexity and promote the responsible use of artificial intelligence and data, including by providing greater legal certainty on the interaction between AI systems and personal data protection rules. Overall, the Digital Omnibus seeks to create a more enabling environment for digital innovation, lowering compliance costs and strengthening the competitiveness of SMEs in both the European and global markets.
More information: click here
1. Introduction
Digital transformation is one of the main drivers of change for Europe’s economy, businesses and citizens. In this context, the European Union has developed a strategy aimed at strengthening the continent’s competitiveness, promoting innovation, and supporting the transition towards a more sustainable and resilient economy.
With the launch of its Digital Strategy in 2019, the EU set out its vision for the “Digital Decade”, establishing objectives and priorities to support the development of technologies, infrastructure and skills, while also strengthening Europe’s technological sovereignty. Building on the 2019 strategy, this agenda has since evolved within the broader framework of the European Digital Decade and was given a new impetus in 2025 through new initiatives focused on competitiveness, regulatory simplification and the reinforcement of Europe’s technological sovereignty. This has led to an increasingly wide-ranging set of legislative measures, investment programmes and support instruments designed to create a more integrated, secure and innovation-friendly digital ecosystem.
Against this backdrop, artificial intelligence has also taken on a growing role in EU policymaking. Through initiatives aimed at developing the AI ecosystem and establishing common rules for its use, the Union seeks to support the uptake of AI by businesses, foster innovation, and ensure that the technology is deployed in a safe manner and in line with European values.