In light of resent instability across the Eurozone and a dragging European economy, we need to ask what reforms the EU needs to become more competitive, stimulate economic growth and engage more with its citizens.
The digital agenda encompasses the use of information and communication technology to help drive economic growth. This includes its use by business, individuals and government. I talked about the rise of the internet and its effects on business in an earlier blog so I want talk to much about it here. But suffice it say, the increasing use of ICT, and in particular the internet, will contribute to a substantial change in the way companies do business and in the way our economies are built. In order to encourage growth and competitiveness in the European economy, we have to take advantage of such technology. This includes not just the internet, but also requires the continuing development of software to streamline and improve business to business communication. This relates in particular to areas such as the management of increasingly complex supply chains, vital cash flow management and the ever important customer interface (especially in online sales) as well as many more. This requires significant investment, both business and governmental, in new infrastructure and continuing research and development.
This infrastructure includes insuring a wider courage of a high quality ultra-fast internet service. (Some parts of Europe still struggle to get any internet service at all) We are also increasingly seeing the use of physical cash on a slow and steady decline in its use by consumers. As such, we need to ensure that online and other electronic payment services are made faster and more secure. This has been a particular area of investment in recent years and is a trend that needs to continue if consumers and business are to retain their confidence in such payment systems. There are many other investments that can be made in terms of digital infrastructure, but there are far too many to list in detail and many will be covered in the paragraphs that follow.
In terms of on-going research and development in digital innovation, this I believe will help determine which companies succeed or fail and to what extent our economies will grow. Research in new digital infrastructure will help companies reduce waste, reduce repetition and improve communication between stakeholders within the business chain. These stakeholders include not only customers, but also suppliers, government agencies, business partners and many others, on both a local and international level. However, an important element of this R&D involves answering the question "what happens if something does go wrong?". This can have a significant impact on the confidence business and consumers place in this new technology and on the companies that use it. The things that can go wrong specifically include among other things; disruptions in company supply chains and the wrongly or inaccurate transfer of money from and between bank accounts. This again will negatively impact consumer confidence in these systems and hinder these take up in the wider economy.
My next blog in this European economy series will cover supporting innovation and having a diverse education policy.
Thanks for reading,
Jason Cates
The Working Time Directive
One of the key factors that has been a long term drag on the European economy is its lack of competitiveness. One contributor in this respect is the working time directive. Although in the UK this directive has been introduced with some flexibility, in other EU member states such as France, this directive has been introduced more strictly above what was originally introduced in the original directive. I personally agree with the more flexible British approach which includes employees having an opt out from the legislation. Although saying that, I also think that we need safeguards to make certain that employees aren't pressured into opting out of the legislation by their employers. However, with that in mind, I think we need to see this more flexible approach become more widespread across the EU. The reasoning behind this is that it will help boost economic productivity and thus boost economic performance.
The Digital Agenda
One key area of focus in which EU members states can utilise to improve their economic competitiveness is by having a strong digital agenda.The digital agenda encompasses the use of information and communication technology to help drive economic growth. This includes its use by business, individuals and government. I talked about the rise of the internet and its effects on business in an earlier blog so I want talk to much about it here. But suffice it say, the increasing use of ICT, and in particular the internet, will contribute to a substantial change in the way companies do business and in the way our economies are built. In order to encourage growth and competitiveness in the European economy, we have to take advantage of such technology. This includes not just the internet, but also requires the continuing development of software to streamline and improve business to business communication. This relates in particular to areas such as the management of increasingly complex supply chains, vital cash flow management and the ever important customer interface (especially in online sales) as well as many more. This requires significant investment, both business and governmental, in new infrastructure and continuing research and development.
This infrastructure includes insuring a wider courage of a high quality ultra-fast internet service. (Some parts of Europe still struggle to get any internet service at all) We are also increasingly seeing the use of physical cash on a slow and steady decline in its use by consumers. As such, we need to ensure that online and other electronic payment services are made faster and more secure. This has been a particular area of investment in recent years and is a trend that needs to continue if consumers and business are to retain their confidence in such payment systems. There are many other investments that can be made in terms of digital infrastructure, but there are far too many to list in detail and many will be covered in the paragraphs that follow.
In terms of on-going research and development in digital innovation, this I believe will help determine which companies succeed or fail and to what extent our economies will grow. Research in new digital infrastructure will help companies reduce waste, reduce repetition and improve communication between stakeholders within the business chain. These stakeholders include not only customers, but also suppliers, government agencies, business partners and many others, on both a local and international level. However, an important element of this R&D involves answering the question "what happens if something does go wrong?". This can have a significant impact on the confidence business and consumers place in this new technology and on the companies that use it. The things that can go wrong specifically include among other things; disruptions in company supply chains and the wrongly or inaccurate transfer of money from and between bank accounts. This again will negatively impact consumer confidence in these systems and hinder these take up in the wider economy.
My next blog in this European economy series will cover supporting innovation and having a diverse education policy.
Thanks for reading,
Jason Cates
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