Digital Dossier
Summary
2. Digitalization 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.
But the path is not always simple: a shortage of skills, limited awareness of available opportunities, or difficulties in accessing funds are still real obstacles for many businesses, especially small ones. For this reason, the EU has introduced specific programs, platforms, and tools designed to help SMEs seize the opportunities of the digital transition.
Digital transformation is no longer an option: it is at the heart of European competitiveness. The EU is investing to help SMEs innovate, digitalize, and become more resilient.
Digitalization is not just a matter of tools: it is also a matter of rules. European legislators are defining new rules that closely affect the business world: from the regulation on artificial intelligence (AI Act), to the Cyber Resilience Act, to the interoperability package and the European framework for data.
Businesses must be informed in a timely manner about these regulatory changes, to be able to prepare, adapt, and remain competitive in a rapidly evolving context. Chambers of Commerce can play a key role in translating these policies into concrete opportunities for local businesses.
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.
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3.2. Artificial Intelligence: shaping Europe's digital future
The EU is betting on AI that is reliable, ethical, and accessible also to SMEs. The new law on artificial intelligence (AI Act) creates a clear and innovative regulatory framework, designed to protect citizens and, at the same time, stimulate the technological growth of businesses.
The White Paper on artificial intelligence of February 2020 highlighted the crucial role of AI in contemporary society and the expected social and economic benefits across all sectors.
From 2025, the European Regulation on Artificial Intelligence (AI Act) is fully operational, the first comprehensive legislation regulating the development and use of AI systems based on an approach centred on four risk categories: unacceptable (prohibited), high, limited, and minimal. The regulation prohibits (among others) the use of AI for behaviour manipulation, social scoring, real-time biometric surveillance except for exceptions, as well as systems that exploit user vulnerabilities.
The AI Act imposes stringent obligations for high-risk systems (in areas such as healthcare, justice, critical infrastructure), including conformity assessment, transparency, governance, and continuous traceability throughout the entire lifecycle. From August 2, 2025, businesses that do not comply risk fines of up to €35 million or 7% of their global turnover.
From 2025, providers of general-purpose AI models (GPAI), such as large language models, must comply with specific rules on transparency, technical documentation, public summaries of training data, and respect for copyright; for models already on the market before August 2, 2025, the adaptation deadlines extend until 2027.
The governance and control system features the European AI Office, established within the European Commission, which coordinates the uniform application of the legislation and its update, working with national supervisory authorities, a European AI Board, and with independent expert groups. The AI Office also manages the European database of high-risk AI systems, the production of guidelines and codes of conduct, and acts as a central reference point for businesses and citizens.
Alongside the regulatory framework, the European Union has defined the AI Continent Action Plan as a strategy to translate the European vision for artificial intelligence into concrete actions supporting competitiveness, innovation and the widespread adoption of AI. The Plan is structured around key and complementary pillars. First, it focuses on strengthening strategic infrastructures through the creation of AI Factories and access to advanced computing capacities, including supercomputers, enabling companies, start-ups and research centres to develop and test AI models at scale.
Second, it promotes the valorisation of data by fostering trustworthy, interoperable and secure data ecosystems, in line with the European Data Strategy, to support the development of high-quality AI systems.
A third pillar addresses support for AI uptake by businesses, in particular SMEs and mid-caps, through accompanying measures, regulatory sandboxes, Digital Innovation Hubs and technology transfer initiatives. Finally, the Plan places strong emphasis on skills and talent, investing in education, reskilling and the attraction of qualified profiles, as well as on the deployment of trustworthy AI aligned with European values and fully consistent with the AI Act.
Taken as a whole, the AI Continent Action Plan aims to bridge the gap between research and market, reduce fragmentation within the European AI ecosystem, and ensure that the benefits of artificial intelligence are widely shared across citizens, businesses and regions.
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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 realized 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.
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Pact for Skills
European skills alliance: promotes partnerships between businesses, public entities, and training providers to upskill workers, including those in SMEs.
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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 Digitalization
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.
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Single Market Programme
Promotes the digitalization of businesses through the development of services, common standards, and access to the single market.
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Structural Funds (ERDF and ESF+)
Co-finance digital projects at the local and regional level, favouring investments in technologies, training, and infrastructure.
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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.
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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.
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InvestEU
Funds innovative business projects, including those with a strong technological and digital component. It also offers guarantees and financial instruments accessible to SMEs.
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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.
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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 technology is transforming the lives of citizens and businesses. In 2019, the EU launched a Digital Strategy to equip citizens and businesses with a new generation of technologies, while also contributing to the goal of a climate-neutral Europe by 2050.
The strategy defined how to transform this period into Europe's "digital decade." It encouraged innovation in digital technology to keep the continent competitive but also defined ways to minimize its negative risks. It strengthened Europe's digital sovereignty and set standards, with a clear focus on data, technology, and infrastructure.
Across Europe, the EU has invested billions in expanding fibre optic and 5G networks, connected rural regions, and provided hundreds of thousands of workers with skills for the digital future. The path to achieving the 2030 digital targets requires joint efforts and collaboration between the private and public sectors, European institutions, and Member States.