However, it is clear that the benefits of digitalisation can only be reaped if economies are flexible enough to adjust to changing business conditions. In Europe, the markets for digital applications are highly fragmented, especially with respect to legal issues such as the protection of privacy, content and copyright. The liability of online intermediaries, electronic payments and electronic contracts are also regulated differently.
Harmonisation in terms of a digital single market (DSM) would certainly contribute to higher potential growth. According to a study by the European Parliament, a completed DSM could raise the long-run level of EU-28 GDP by 4%. And the European Commission, which recently presented its DSM strategy, expects the creation of 3.8 million jobs.