The European Commission has published the proposal for a Regulation on the Digital Europe Programme for the 2021-2027 EU budget, the first European programme entirely dedicated to digitalisation.

The main updates are as follows:

• A network of Digital Innovation Hubs, selected from those identified by Member States (at least one per country), with an appropriate organisational and financial structure. The network will be funded through grants awarded to DIHs to provide the following services to SMEs and businesses:
1. Digital Transformation, including testing and experimental activities
2. Exchange of best practices between regions, with synergies between DIHs and SMEs from different European regions
3. Specific support for artificial intelligence, high-performance computing and cybersecurity, with each DIH able to specialise in a specific topic
4. Providing financial support to third parties for the development of advanced digital skills

• 5 Thematic Areas

1. High-performance computing (€2.7 billion) through the coordination of data infrastructures, publicly accessible exascale supercomputers, integration with quantum computing technologies, and the definition of a high-performance ecosystem that supports all segments of industrial value chains (hardware, software, applications, services, etc.)
2. Artificial Intelligence (€2.5 billion) by strengthening and integrating existing networks and developing new, publicly accessible algorithm systems and data structures
3. Cybersecurity and Trust (€2 billion) by supporting Member States in the procurement of systems and advanced cybersecurity tools and data infrastructures, implementing cybersecurity systems within the economic system, and supporting Member States in complying with the recent European legislation (Directive (EU) 2016/1148) on cybersecurity;
4. Advanced Digital Skills (€700 million), with the development of on-the-job training systems for students, workers, and entrepreneurs to strengthen digital skills;
5. Development and interoperability of digital capacity (€1.3 billion), promoting the deployment of digital technologies across the economy, public administration, and SMEs; and strengthening European digital infrastructures in line with regional and national actions

• Synergies between funds, namely

1. Use of resources from different programmes in a single project (Cohesion Policy Structural Funds - ERDF and ESF+, Horizon Europe, InvestEU, and Connecting Europe Facility)
2. Funding of Seal of Excellence projects in the digital sector using Structural Funds

The programme will be implemented through work programmes and funding schemes that provide for grants (grants and prizes), procurement and blended finance (a mix of grants and financial instruments), and collaboration with existing public-private partnerships (e.g., Art. 187 TFEU).

Official documentation and the texts of the regulations can be consulted by clicking HERE