In my numerous meetings with politicians and citizens, I am often faced with the question of how we can overcome the crisis and boost growth in times of cuts in public finances and state expenditure.

My usual answer is that we have to look at new ways to increase the competitiveness of our economy, the efficiency and quality of services, and work towards a better use of the single market. From the European perspective, it will be these barriers that we focus on next year, as they have hindered our potential in the past. Our citizens, entrepreneurs and investors face ongoing visible and invisible barriers that prevent real free movement of goods, services and labour. The single market remains fragmented and in some areas still resembles 27 different ‘mini markets’, rather than a common space for 500 million citizens. With the aim of overcoming these limitations, the EC is looking for effective solutions from ‘Digital Europe’ and the introduction of modern electronic technologies, which often have a multiplying effect in terms of increasing economic competitiveness and modernising public and private service provision. 

We are talking about a trend which may have a major modernising influence on individual European countries, improving both the business environment and the provision of state services to the public. However, the basis for this must be the introduction of electronic public services, such as eGovernment . What does that mean? Put simply, that citizens should have the option to ask for any official documentation, such as a tax acknowledgement, in an electronic format, and to handle them via the internet. This means that citizens are not limited to office hours, entrepreneurs don’t have to waste countless hours standing in queues for tax forms and that everything can be done with maximum effectiveness and transparency. Officials can use modern software to issue approvals or detect tax evasion. In return, citizens and businesses can save a lot of time by receiving confirmations electronically by e-mail or, if related to ID cards or driving licences, by post. 

Within the European Commission, I am also responsible for the Directorate General for informatics (DG DIGIT), which besides taking care of information and communication technologies (ICT) within the European Commission is also working on a Europe-wide platform for the interoperability of European public administrations. In December last year, the European Commission approved a communication entitled ‘Towards an interoperability of European public administration’, which also involved a corresponding European Interoperability Strategy and European Interoperability Framework. The stated initiatives represent a set of measures such as a guide on how to harmonise ICT policies concerning public administrations throughout Europe. Take this practical example: if an Estonian entrepreneur needs documents from Portugal, within this structure he or she will be able to do so, and in their own language, thanks to such a platform and the existing  system of electronic public services. The European interoperability strategy is counting on the fact that by 2015, the provision of public services in the EU framework will be significantly strengthened and supported precisely through the means of effective eGovernment. 

The European Commission considers the implementation of eGovernment as one of the key steps towards the achievement of higher efficiency and transparency within public administrations. In the last few weeks with fellow European Commission Vice-President Neelie Kroes I have attended numerous events in EU member states which support this trend in order to further reinforce the Digital Agenda for Europe. Technologies and financial support are widely available from the European institutions, business and civil society. It is therefore necessary to intensify the entire process and as soon as possible wrap up the completion of existing EU-wide systems. 

Let me put forward some examples, including those heard in the recent meeting of ministers of eGovernment in Poznan, Poland, as well as some from a symposium on public administration and the provision of electronic services in Vienna, Austria. 

A direct example, on how to increase the quality of tax collection, comes from Belgium. In Belgium, tax declaration forms can be sent electronically, via the internet. Relevant software checks whether the forms are filled in correctly and an alert is sent if it is considered necessary to also hold on to the original paper documents as a means of proof. Anyone from Slovakia who has stood in the queue at the tax office and held long discussions with their employers about which forms need to be submitted and when would no doubt appreciate a similar system. Information obtained in this way allows for electronic processing, a faster identification of anomalies and the necessary controls. Moreover, it is not necessary to store tons of paper documents. 

A second example, confirming the efficiency of a single approach to electronic services, is Austria which has a system of electronic signatures that can be sent via a mobile phone. The European Commission’s DG DIGIT provided financial and technical assistance to this project. Access to European databases, used daily by more than 200,000 people, or the realization of operations requiring an electronic signature can now be achieved with just a single SMS.  In practice, you ask an authorisation centre for a code which you receive by SMS for example, and which is then validated using the electronic ID. 

Or take the example of Estonia. Electronic public services in this European country allow citizens to use a unified electronic ID card, which simultaneously serves the function of an ordinary ID card and a driver’s licence, but is also used to communicate with electricity, gas and telecommunication providers. Furthermore, the ID card is also used as a bank card and can also be used on public transport.  

Another in the series of examples, which was discussed in detail at the informal ministerial meeting in Poznan, is public procurement. The European Commission in cooperation with 11 European countries (Germany, France, Great Britain, Italy, Sweden, Finland, Denmark, Norway, Portugal, Greece and Austria) has implemented a pilot programme called PEPPOL (Pan-European Public Procurement on-line) in this area, with the aim of full electronic implementation of public procurement, i.e. eProcurement in Europe. Simplicity, transparency, and the guaranteed credibility of users of eProcurement will, for example, allow a small producer of microscopes in Denmark to compete for a large order for a hospital in the Netherlands. This could be done without the need to travel, inquire about legal procedures or look for trade partners. And for the successful company, all the financial transactions related to the procurement will also be made electronically. If we were to use such a system across the entire EU, it is expected that European countries would save about 50 billion euro per year in the procurement of goods. Small and medium enterprises would make an additional saving of approximately 40 billion euro in transaction costs. 

This is why eGovernment should be an automatic part of the legislative proposals in EU Member States. Countries that do not follow this trend will face problems with the quality of the public services they provide or with the lack of transparency of their public administrations. Citizens of these countries will be electronically limited and therefore cut off from a number of European opportunities. 

Countries where eGovernment is fully developed are also among those that have been the least affected by the negative effects of the crisis. The building of e-space has a modernizing effect for the entire society and serves as an opportunity for an increased use of European economic, cultural and educational opportunities. It is therefore necessary to fast-track this trend before it becomes too late. 

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