Digital economy, long but must road to bolster sustained EU recovery

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European leaders gathered again after summer, trying to outline a new stimulating plan to enhance recovery by building a European Union (EU)-wide digital market.

The European Council called on member states to work together to complete the digital single market by 2015 by making three pledges, which are encouraging investments in ICT service infrastructure, integrating rules and regulations at EU level and giving a vigorous push on IT skills.

Such an ambitious initiative followed by a banking union and a single energy market, to boost further growth after the EU and the eurozone both emerged from recession in the second quarter of this year, is a crucial driver of growth and productivity across all sectors of European economies.

A study commissioned by the European Policy Centre demonstrates that an integrated Digital Single Market would increase the EU's GDP by more than 4 percent, amounting to 500 billion euros (690 billion U.S. dollars) over a 10-year period.

As an essential part of its growth strategy, Europe hopes to boost digital, data-driven innovation of the economy.

Besides growth, the digital economy is vital to boost Europe's labor market. According to the EU, by 2015 there will be 900,000 digital jobs waiting to be filled.

Therefore, the new initiative is highlighted in the EU summit and is seen as a must way to improve investments and consumptions which are needed immediately to make the recovery sustainable.

However, like other proposals, the establishment of a digital single market faces a long way to go.

First of all, it's a daunting task for EU leaders to reach a consensus and hammer out a draft document in a short period on that issue, given complicated bargaining among member states who have different national interests.

Secondly, opposition voice from telecom operators in some member states are increasing, warning of possible "super operator" organized under the new initiative will harm fairness and competitiveness in the EU.

Thirdly, as Europeans are increasingly concerned about U.S. spying activities, how to restore trust and confidence becomes a top priority before pushing digital market further. In parallel, lowering barrier for digital market access and investment will get negative impact for such sentiment.

Despite the challenges above, the EU should be praised as the policy makers do not lose their courage to take continuous steps to advance the Union.

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