An Analysis of the Digital Resilience Challenge for Implementing EU Programs and Instruments

Abstract

Abstract One of the most acute challenges to which EU member countries urgently need to find solutions is related to digital resilience. Such a challenge must be addressed from both a temporal, spatial, and financial perspective. One of the areas where both problems and solutions to them must be placed is that of structural and investment funds. At the EU level, the new development model is feverishly sought, which must be green, digital, and resilient. The authors of this study explore how European Union funding programs and specifically the Recovery and Resilience Facility, influence the advancement of digital transition. It explores and quantifies the value added of using these programs to obtain more sustainable growth, societal inclusion, and global competitiveness through digital transformation. One of the most relevant hypothesis is that despite a growing interest in the impact of EU financial instruments on digitalisation, to different societal levels, lacks a comprehensive analysis that combines both the broad scope of EU initiatives and the specific impact of the RRF. Using qualitative methods, the authors investigated the main pitfalls and asymmetries of the allocative methods, the allocation, and impact of EU funding on digital transformation. The main focus of this paper is to answer the research questions regarding the connection between budget allocation for digital transformation and the position of digital transformation in EU priorities, while highlighting the changes that Recovery and Resilience Facility is bringing compared to other financial instruments for promoting digitalization in EU. Following this research route, we find indication that the budget allocations EU makes for digitalization, specifically through the Recovery and Resilience Facility demonstrate that digital transition is one of EU strategic priorities. The amounts and percentages made available through the Recovery and Resilience Facility which target to support in particular digital initiatives underline its key role in EU digital strategy. The clear comparison of EU financing programs that focus on digitalization, while providing a comprehensive literature review that gives a refined understanding of digitalization’s impact will enable professionals and policy makers to analyze EU strategic objectives and identify key focus areas that require additional support, thus contributing to EU digitalization efforts.