Europe’s digital future: leading the next industrial revolution

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Europe’s digital future: leading the next industrial revolution

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EU needs masterplan for tomorrow’s digital technologies 

Europe must plan where it can be a world leader in digital markets and clean energy technologies, taking full advantage of thesingle market and enforcing policies to develop its existing technological edge, the audience heard at Friends of Europe’s first digital and competitiveness summit organised in partnership with Tata Consultancy Services (TCS). 

This includes developing a more muscular trade policy, particularly in response to the return of US President Donald Trump, experts said at the summit Europe’s digital future: leading the next industrial revolution. 

“In which of tomorrow’s technologies does Europe have a chance to be an important player?” asked Fatih Birol, Executive Director of the International Energy Agency (IEA). Some legacy industries may not be able to survive and close the gap with other global competitors, he warned. “We need a good analysis of which to support” and “a new industrial masterplan.”  

The US and China are too far ahead of Europe when it comes to clean energy manufacturing sectors like solar photovoltaics and electric cars, but technologies including offshore wind, electrolysers, transformers, heat pumps and batteries are some of the areas in which Europe could still be strong. Indeed, Europe still has many advantages and can be a source of inspiration globally. Europe has almost half a billion population, a huge single market, very good innovation and technological advancement in many areas. These are all positive framework conditions Birol said. 

“We have to be providers, not just clients,” agreed Isabelle Durant, former deputy secretary general of the United Nations Conference on Trade and Development (UNCTAD), and former deputy prime minister of Belgium. This means “identifying niches where the EU can be a pioneer, not just a competitor.” This could perhaps include quantum mechanics. 

Other EU strengths include energy efficiency expertise. “Most leading energy efficiency companies are European,” said Monica Frassoni, President of the European Alliance to Save Energy. “We need to start to understand the technologies we can foster to support our economy.” 

Catalyst Trump 

Speakers called for the EU to be more defensive in its support for a rulesbased international trading system. This means Europe should show muscles when it comes to trade policy.  

Donald Trump may be opposed to the EU’s referred rules-based international trading system but most of the world agrees with Europe. 

Several speakers even suggested that Trump’s re-election is in fact an opportunity for Europe. “Trump is a catalyst,” said Dan Nechita, EU Director of the Transatlantic Policy Network. “This is an opportunity for us to get our act together and work with the Trump administration, as we did with the Biden administration,” he explained. “We need to start thinking geopolitically as a union.”  

“Trump may be a catalyst for good,” agreed Andy Baldwin, EY Partner. “Europe needs to develop political will and do things it should have done 20 years ago.” This includes creating a single market for capital: the capital markets union (CMU). 

The Single Market 

“We can be leaders but we have to exploit this big hidden gem we have: the single market,” said Enrico Letta, former prime minister of Italy. Decarbonising without deindustrialising means“we need to find resources inside Europe, not outside,” and the single market can support this aim. 

The size of the EU market is a “big potential strength” to enhance competitiveness, added Pascal Lamy, former director-general of the World Trade Organization (WTO) and European commissioner. The EU single market is bigger than the US market and richer than the Chinese, he explained, “provided it works like a single market.” 

Europe also has a “strong backbone” of “classical, familyowned” SMEs to support the digital revolution and boost competitiveness, said Michiel Scheffer, President of the Board of the European Innovation Council, and they must be supported along with US-style SME startups. 

This means considering what instruments will help small companies to decarbonise competitively. “Digitalisation is crucial for decarbonisation gains and a lot of small companies in Europe need to scale up,” said Felicitas Riedl, Director in the Innovation and Competitiveness Department at the European Investment Bank (EIB). 

A popular success 

There will be a need to maintain public support for EU measures to lead the digital revolution. “We need to bring the people with us,” warned Eric Peters, Head of Unit for the Digital Decade Coordination at the European Commission DirectorateGeneral for Communications Networks (DG CNECT) 

People in the tech industry are used to renewing skills on a continuous basis, said Sapthagiri Chapalapalli, Head of TCS Europe. But there is a need to prepare the young with skills for the future and to continuously learn, as well as to reskill the existing workforce. This requires a more empathetic approach to training. It is not easy to tell successful 50-year-olds they need to learn new skills. 

In her first public speech as Executive Vice-President of the European Commission and Commissioner for Social Rights and Skills, Quality Jobs and Preparedness Roxana Mînzatu said “we need new skills and a new plan for the labour market but also for society and democracy.”  

“A union of skills is an answer to Mario Draghi and his report on the future of European competitiveness,” the VicePresident said, stressing how it will fuel competitiveness, and, thanks to a “whole of life” approach to skills,it will become part of a mindset to keep people of all ages on board for the next industrial revolution. 


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Schedule

Schedule

Welcome of participants
OPENING SESSION – Decarbonising without deindustrialising : Europe’s energy transition at a crossroads
Expand OPENING SESSION – Decarbonising without deindustrialising : Europe’s energy transition at a crossroads

Geopolitical fragmentation and regional conflicts are creating major risks for the global energy system, both for energy security and for global action on reducing greenhouse gas emissions. These are top conclusions from the International Energy Agency’s latest World Energy Outlook, which examines how shifting market trends, evolving geopolitical uncertainties, emerging technologies, advancing clean energy transitions and growing climate change impacts are changing the outlook for global energy systems. For Europe, shaken by energy sector turbulence in recent years, this evolving outlook offers both challenges and opportunities. Europe is pursuing ambitious climate goals, but – as laid out in the Draghi report – decarbonising without deindustrialising is a priority concern for many European countries. And the continent also needs to address traditional dependence on fossil fuel exporters and risks of new dependencies for clean energy technologies.

What can Europe do to reconcile these different priorities? Even if the worst of the energy crisis has passed, Europe still faces significant energy price gaps to other major economies. But evolving energy markets may allow downward pressure on prices, providing breathing space for policymakers to step up investments in clean energy. And as the world enters a new era of clean energy manufacturing, the EU needs to act to maintain leadership in key clean technologies. Europe has slipped behind on competitiveness before, and should not repeat mistakes the clean technology manufacturing industries that will have a key role shaping the economies of the future.

Speaker

Fatih Birol

Executive Director of the International Energy Agency (IEA)

Moderated by

Dharmendra Kanani

Chief Operating Officer and Chief Spokesperson of Friends of Europe

Reception for dinner guests
POLICYMAKERS’ DINNER DEBATE – Europe’s digital future (by invitation only)
Expand POLICYMAKERS’ DINNER DEBATE – Europe’s digital future (by invitation only)

This dinner offers a closed-door environment to discuss Europe’s competitiveness challenges. High-level representatives from policymaking, the private sector, and summit speakers will come together to reflect on the EU’s digital transformation ambitions, current gaps, and strengths. With the Draghi Report warning of the risk of the EU economy falling behind, this dinner will provide an exclusive opportunity to debate how Europe can future-proof its economy, reduce public debt and take the lead in the next industrial revolution, setting the stage for deeper discussions at the summit’s sessions. 

Continue to Day 2
Welcome coffee & registration
Opening remarks
SESSION I – Digitalising Europe: a paradigm shift transforming industry and public services
Expand SESSION I – Digitalising Europe: a paradigm shift transforming industry and public services

In an era defined by rapid advancements, industries and government services across sectors are facing a critical moment of transformation. Innovation is reshaping health, energy, education and other key fields, promising to enhance service delivery, improve efficiency and support economic resilience. For Europe, this transformation offers a pathway to adapt to pressing challenges, from labor market impacts to public debt, while also addressing privacy and competitiveness concerns. As businesses and governments navigate this evolving landscape, the focus shifts to how they can harness these changes to strengthen resilience, accelerate carbon reduction and ensure sustainable growth in a highly competitive global environment. 

  • How does digitalisation redefine traditional industry practices and government operations?  
  • What role does the digital sector play in boosting the competitiveness of European industries in the context of record-high public debt? 
  • What strategies can ensure these technologies drive growth and competitiveness across public and private sectors? 
  • What potential scenarios could unfold for the productivity of EU businesses compared to their economic competitors? 

This panel discussion deep dives into the transformative impacts of digital transformation and AI development, setting the stage for strategic insights and proactive measures to thrive in this dynamic era of innovation. 

Speakers

Monica Frassoni

President of the European Alliance to Save Energy, former co-president of the European Green Party, former member of the European Parliament and Trustee of Friends of Europe

Eric Peters

Head of Unit Digital Decade at the European Commission Directorate‑General for Communications Networks

Felicitas Riedl

Director in the Innovation and Competitiveness Department at the European Investment Bank (EIB)

Michiel Scheffer

President of the Board European Innovation Council

Moderated by

Dharmendra Kanani

Chief Operating Officer and Chief Spokesperson of Friends of Europe

Coffee break
In Conversation With Roxana Mînzatu Vice-President of the European Commission and Commissioner for Social Rights and Skills, Quality Jobs and Preparedness
Expand In Conversation With Roxana Mînzatu Vice-President of the European Commission and Commissioner for Social Rights and Skills, Quality Jobs and Preparedness

Speaker

Roxana Mînzatu

Executive Vice-President of the European Commission and Commissioner for Social Rights and Skills, Quality Jobs and Preparedness

SESSION II – From vision to action: practical steps for reducing public debt and enhancing competitiveness
Expand SESSION II – From vision to action: practical steps for reducing public debt and enhancing competitiveness

The Draghi report calls for an uptake in innovation across sectors, aiming to revitalise traditional industries to keep Europe competitive on a global scale. Currently, EU member states are off track toachieving the Digital Decade targets, with Europeans lagging in digital literacy and business adoption of new technologies. The Digital Decade 2024 report highlights that businesses implement new technologies and innovative practices at a slow rate: SMEs’ annual growth in technological integration stands at just 2.5%, only half the rate needed to meet the 2030 target. Similarly, public and private investments fall short of what is needed to achieve goals for innovation and entrepreneurship. As both private and public actors play a central role in enabling an inclusive and comprehensive transition, stronger dialogue and cooperation among these sectors will be essential. 

  • What practical steps are necessary to support widespread digital and AI integration across industries and government services?  
  • How can entrepreneurship and skills development be leveraged to drive sustainable growth in the digital age, ensuring the EU keeps pace with digital leaders such as the US and China?  
  • What tools can be used to boost innovation and investments for increasing the competitiveness of EU businesses in the digital sector? 
  • What role can digital and AI-driven innovation play in reshaping Europe’s industrial foundation to be more resource-efficient and climate-resilient, while also addressing current challenges like public debt and the economic impacts of recent crises? 

Drawing on experiences and expertise from industry leaders and policy experts, this discussion delves into the essential ingredients needed to foster innovation and entrepreneurship and prepare for the future challenges and opportunities presented by digitalisation and AI. 

Speakers

Andy Baldwin

EY Global Managing Partner

Isabelle Durant

Former deputy secretary general of the United Nations Conference on Trade and Development (UNCTAD), former deputy prime minister of Belgium and Trustee of Friends of Europe

Kamila Kloc

Digital Decade and Connectivity Director at the European Commission Directorate-General for Communications Networks, Content and Technology (DG CONNECT)

Dan Nechita

EU Director of the Transatlantic Policy Network

Michał Wawrykiewicz

Member of the European Parliament Committee on Legal Affairs

Moderated by

Dharmendra Kanani

Chief Operating Officer and Chief Spokesperson of Friends of Europe

Lunch
End of summit
Speakers

Speakers

Photo of Andy Baldwin
Andy Baldwin

EY Global Managing Partner

Show more information on Andy Baldwin

As EY’s Global Managing Partner, Andy Baldwin leads the execution of EY’s global strategy. With deep expertise in financial services, particularly in Europe’s insurance sector, Andy has spent over 30 years advising major clients and driving transformative initiatives, including technology-enabled transformations, mergers and structural overhauls. Previously, as EMEIA Area Managing Partner, he championed business integration, sector-focused growth and future-ready innovation. A strong advocate for gender equality, Andy also supports initiatives like EY’s Smart Futures program, empowering underprivileged students. He holds an MBA from Cranfield University and certifications in marketing and risk.

 

Fatih Birol
Fatih Birol

Executive Director of the International Energy Agency (IEA)

Show more information on Fatih Birol

Dr Fatih Birol has served as Executive Director of the IEA since 2015, taking up his current position after rising through the ranks of the IEA over two decades. He has been named in TIME’s annual list of the world’s 100 most influential people and by Forbes as one of the most influential people in the world of energy. He chairs the World Economic Forum’s (Davos) Energy Advisory Board and is the recipient of numerous state decorations, including the French Legion of Honour and the Japanese Emperor’s Order of the Rising Sun.

Isabelle Durant
Isabelle Durant

Former deputy secretary general of the United Nations Conference on Trade and Development (UNCTAD), former deputy prime minister of Belgium and Trustee of Friends of Europe

Show more information on Isabelle Durant

With a distinguished career in Belgian and European politics, Isabelle Durant has held the offices of Deputy Prime Minister, Minister of Transport and Energy, and Senator in the Belgian Government. She also served as Vice-President of the European Parliament, President of the European Union Council of Ministers of Transport and as Deputy-Secretary General and Acting Secretary General of UNCTAD. With a wealth of experience collaborating with civil society and the private sector, her time as European Parliament Vice-President included responsibility for relations with civil society. Durant has held posts as a senior consultant on the empowerment of women in local government for the UNDP and as a member of Parliament of the Brussels-Capital Region in Belgium.

Monica Frassoni
Monica Frassoni

President of the European Alliance to Save Energy, former co-president of the European Green Party, former member of the European Parliament and Trustee of Friends of Europe

Show more information on Monica Frassoni

Monica Frassoni is an Italian politician who previously served as the Co-President of the European Green Party. Prior to that, during her time as Member of the European Parliament, she was Co-Chair of the European Greens–European Free Alliance group in the European Parliament. She also served for ten years as an officer of the Greens group in the European Parliament and was Secretary-General of the Young European Federalists. In 2010, she co-founded the European Alliance to Save Energy, an organisation which aims to promote and advocate energy savings and a new energy model.

Sapthagiri (Saptha) Chapalapalli
Sapthagiri (Saptha) Chapalapalli

Head of the Tata Consultancy Services (TCS) Europe

Show more information on Sapthagiri (Saptha) Chapalapalli

Sapthagiri (Saptha) Chapalapalli is responsible for Tata Consultancy Services’ business in Europe. Before taking this position, he was the Vice-President and Managing Director of TCS in Germany and Austria. Saptha has led TCS to a position of growth leadership and excellence in the German market, during which period TCS has deployed its strategy of customer centricity and localisation in the region, resulting in unparalleled organic growth. Previously, he was a key member of the TCS leadership team in London, where he was responsible for growing TCS business in the telecommunications industry. He has also been based in the US, where is focused on expanding TCS’ business in the telecommunications sector and managing relationships with major customers.

Dharmendra Kanani
Dharmendra Kanani

Chief Operating Officer and Chief Spokesperson of Friends of Europe

Show more information on Dharmendra Kanani

Prior to joining Friends of Europe, Dharmendra Kanani was director of policy at the European Foundation Centre (EFC). He was the England director at the Big Lottery Fund, the largest independent funder in the UK and fourth largest in the world. Dharmendra has held senior positions in the public and voluntary sectors and advisor to numerous ministerial policy initiatives across the UK.

*Consultant at Friends of Europe.

Dan Nechita
Dan Nechita

EU Director of the Transatlantic Policy Network

Show more information on Dan Nechita

Dan Nechita is the EU Director of the Transatlantic Policy Network. Previously, Dan led the technical negotiations for the EU Artificial Intelligence Act on behalf of the 9th European Parliament. Besides artificial intelligence, he also worked on digital regulation, security and defence, and the transatlantic partnership as Head of Cabinet for Dragos Tudorache MEP. Beforehand, he was a State Counsellor for the Romanian Prime Minister with a mandate on e-governance, digitalisation and cybersecurity. He is a member of expert AI working groups with the World Economic Forum and the United Nations, and was an expert project evaluator for the European Commission.

Kamila Kloc
Kamila Kloc

Digital Decade and Connectivity Director at the European Commission Directorate-General for Communications Networks, Content and Technology (DG CONNECT)

Show more information on Kamila Kloc

Dr Kamila Kloc is as the Director of Directorate B- Digital Decade and Connectivity of Directorate General for Communications Networks, Content and Technology (DG CONNECT) She previously held the position of the Head of Markets’ Unit in the same Directorate. Beforehand, she served as Deputy Head of Cabinet for Vice President Ansip responsible for Digital Single Market. Prior to joining the Cabinet, she worked at Directorate General for Energy, coordinating exemptions from regulatory access rules for gas pipelines. Prior to joining the Commission, she was employed at the Office for Competition and Consumer Protection in Poland as Advisor to the President. Kloc started her professional career in academia and taught at the Warsaw School of Economics as Assistant Professor.

Photo of Pascal Lamy
Pascal Lamy

Former Director-General of the World Trade Organization (WTO) and European Commissioner, Trustee of Friends of Europe

Show more information on Pascal Lamy

Pascal Lamy is a French politician and the Vice President of the Paris Peace Forum, a new innovative global governance initiative. He served as the director-general of the World Trade Organization (WTO) for two consecutive terms, prior to which he was the European commissioner for trade and head of cabinet for former Commission president, Jacques Delores. Currently an associate professor at the Institut d’Etudes Politiques de Paris, Lamy also frequently lectures at the Institut Jacques Delors and speaks on issues related to globalisation, global governance, international trade, international economics and regional integration. He has written several publications on the European Union and the ‘harmonising’ of globalisation and is a Trustee of Friends of Europe.

felicitas riedl
Felicitas Riedl

Director in the Innovation and Competitiveness Department at the European Investment Bank (EIB)

Show more information on Felicitas Riedl

Felicitas Riedl is the Director of the Innovation and Competitiveness Department at the EIB’s Projects Directorate where she leads technical and economic due diligence for EIB projects. Previously, she served as Head of the Life Science and Health Division and successfully navigated the organisation through the COVID-19 pandemic, forging partnerships with the WHO, BMGF, and Wellcome Trust. Prior to the EIB, Felicitas was an Investment Manager at the European Investment Fund, specialising in technology transfer. She holds a Master of Science in human genetics and molecular biology from Philipps University of Marburg and was a visiting researcher at Stanford University. Riedl recently completed the Advanced Management Program at Harvard Business School.

 

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