G7 Summit: why does the British Southwest matter for the digital sector?

by sogaccelerator | 14 Jun 2021 | Communs & plaidoyer, Editorial

G7 Summit: why does the British Southwest is so important for the digital sector?

The G7 Summit is currently taking place in the seaside resort of Carvis Bay, Cornwall, UK. The choice of this region was undoubtedly made to showcase its rugged rocky coastline and the bucolic charm it inspires. But it is simplistic to reduce the peninsula to this caricature. The British South West has recently made green tech its watchword, despite being one of the least densely populated areas in England.

Here’s how the region has converted to this innovative sector.

The leaders of the G7 countries in Cornwall, 11th of June 2021

Source: G7 UK 2021 Flickr Channel

Cornwall, a rural and innovative region
Only 600,000 inhabitants, large towns of around 20,000 inhabitants, and 56% of the population living outside the cities. On paper, Cornwall could be seen as a very rural region, far from the hustle and bustle of London. Yet this is where the mistake is made. Cornwall is home to many innovative tech organisations, again in a variety of forms. The pandemic has further demonstrated that the digital sector is pivotal to the whole region. For example, just over 4,000 online shops opened across the South West during the crisis. This is necessary in a region that relies heavily on tourism, but not only. Fishing and farming are also two important sectors of the whole local economy. “Agriculture has been innovating for centuries and we are seeing this now with the emergence of agritech. Investment and innovation must accelerate if we are to truly prosper economically,” says Paul Coles, local director of British Telecom.

Superfast Cornwall, a project to improve everyday rural life
Like other European countries, the UK has a digital rollout plan. £75 million has been invested in rural areas alone, of which most of Cornwall is part. This ambitious action by the UK government has also been to bridge a digital divide, with 17% of rural areas not having access to broadband in 2017. Worse still, in 2011, a study showed that 20% of adults living in the region had never used the internet.

Faced with this situation, the Superfast Cornwall project was launched the same year. Funded by the ERDF, British Telecom and the Cornish local authorities, this project aims to break the image of digital notspot that was given to the peninsula.
To carry out the project, the iCornwall platform was created. This was a group of representatives from local organisations, diverse but with a common goal: to help as many people as possible through digital tools. Nevertheless, the project’s proponents have understood that providing the area with a decent digital infrastructure is central. But this is far from enough, especially given the sociological make-up of Cornwall, where not everyone has had the opportunity to use digital tools in their lives. “The problem is that technology is moving so fast that people are being left behind,” says Sandra Coak, a community centre worker in Pendeen, a coastal village near the town of Penzance. That’s why digital courses have been provided free of charge to people in the local communities. Over a period of several weeks, these courses were held in many towns and villages in the region, mainly for the elderly.

St. Agnes Heritage Coast, in Cornwall

Source: Pexels (image free of rights)

The digital hub of Pendeen, a remote village close to Penzance

Source: Superfast Cornwall

This type of digital inclusion also goes beyond simply training the public and installing effective infrastructures. Municipal services, from the town hall to the library, have been transformed into digital meeting places. Residents can go there to access a computer, for example to do administrative procedures, or to use it for recreational purposes. Improved access to the internet in the region has also led to other innovations, particularly in the area of health.

The University of Plymouth, located in a large Cornish city of the same name, is very involved in these cross-cutting issues. Studies have been carried out to see the effects of digital medicine, particularly for treating psychological disorders. For example, e-health has tried to treat people suffering from dementia using robotics or the remote presence of people qualified in these pathologies.

Between successes and limitations, digital infrastructures at the service of the local economy
The health crisis has also prompted the region to review its model, or rather, to highlight its successes. “If we really want to rebuild the economy in a way that has the least impact on our environment, we need to go through the technology sector,” says Paula Byers, the founder of Digital Northern Devon. She believes that the digital infrastructure that has been greatly improved – or simply built – has made up for the difference in economic development that existed with other parts of Britain. Companies have been able to set up in the area, such as Jurassic Fibre, which would not have been able to set up without the infrastructure projects of the last ten years. The latter aims to provide “world class broadband for 300,000 premises” of organisations in the South West.

Localisation of Cornwall in the South West of England

Source: Wikipedia (image free of rights)

Nevertheless, the choice to develop fibre first in one region rather than another can have perverse effects. “Just as the rollout of railways in the 19th century defined the winners and losers for the next hundred years, the rollout of fibre to the premises networks will do the same in the 21st century. Our intention is that the South West will be one of the winners. So says Michael Maltby, CEO of Jurassic Fibre. Let’s hope that fibre doesn’t put territories in competition with each other and leave some behind. But there is no doubt that recent European projects have added value to Cornwall. One of the reasons for the slight increase in the region’s population, says Maltby, is that its digital infrastructure has definitely improved. As well as the picture postcard image that Cornwall offers, it is also becoming a favourite with the populations of the surrounding major cities, starting with Bristol, the nearest major city before London.

A view of Port Isaac, UK, a small village north of Newquay.

Source: Pexels (free of use)

The UK has chosen to move towards a vision of digital as a basic need. But access to the Internet is only one side of the coin, and the other side must ensure that these tools are understood. The demographic composition and geographical distribution of Cornwall’s population has forced the region to turn to digital technology to overcome challenges. Between the digital divide and the remoteness of many from major cities – and therefore from decent access to the internet, the peninsula has quickly become a model for the rest of the UK, but remains “largely neglected” within the European Union.

Sources:

– European Network for Rural Development, Cornwall-UK, Steps towards a digital rural region, 2019

– Olivier Vergnault, Hannah Finch, “Why the South West’s tech sector has been a saviour of the Covid-19 crisis”, Business Live, 2020

Editorial – DSA and DMA: Can the EU take on Big Tech?, March 2021, by Arnaud Castaignet

by sogaccelerator | 23 Mar 2021 | Editorial

In December 2020, the European Commission presented the Digital Services Act (DSA) and Digital Markets Act (DMA). Both are aimed at regulating digital platforms and clarifying the policing responsibilities. These new pieces of legislation are billed as urgent pieces of regulation, mostly because of concerns that the likes of Google and Facebook have become too powerful.

Last week, Margrethe Vestager, the executive vice-president of the EU and competition commissioner, even quoted David Bowie when she urged MEPs to speed up adoption of the legislation, saying “so now’s the moment when you can be heroes”. The European official has said she hopes an agreement between the European Parliament, member states and the European Commission can be reached by “spring 2022”.
The DMA focuses on gatekeepers’ behaviours and their impact on market dynamics, while the DSA seeks to consolidate various separate pieces of EU legislation and self-regulatory practices that address online illegal or ‘harmful’ content and to harmonise the rules applicable to the provision of digital services across the EU.

The context in which the two texts are now being discussed is highly favourable to a tough position for the EU against platforms. The suspension of the social media accounts of former U.S. President Donald Trump by Twitter, Facebook, Instagram, Snapchat, and others this winter sparked a lot of controversy in Europe. Without defending Donald Trump’s quotes, German Chancellor Angela Merkel considered the move “problematic.” The EU Commissioner for the internal market, Thierry Breton, found it “perplexing” that Twitter’s CEO Jack Dorsey could simply pull the plug on POTUS’s loudspeaker “without any checks and balances.”. From a European point of view, governments and institutions should regulate, not the company themselves without any legal framework but their internal rules. Governments and institutions ensure the freedom of expression, and set boundaries such as hate speech and incitement to violence, and companies must comply to laws.

Paradoxically, for some time now, European politicians have been trying to convince online platforms to “do more” to police the content of their users. National laws such as the German NetzDG, the Austrian KoPlG and the unconstitutional French Avia bill all require more effective moderation of online spaces, including more and faster removals. But “online gatekeepers” making arbitrary decisions about speech they allow online remains an issue.
The key here is that the DSA aims to regulate the process and not to regulate the speech. The idea is to strengthen due process, clarify notice and take down procedures, improve transparency of the decision making and ensure redress mechanism for removal or blocking decisions. Platforms would face the prospect of billions of euros in fines unless they abide by new rules across fields including advertising transparency, illegal content removal, and data access.

The DMA is the other key legislation that the Commission wants to implement to tackle the complex challenges facing the EU Digital Single Market, and improve the gatekeepers’ behaviour. While the Commission has not named any companies, it has proposed criteria that are sure to catch Google, Facebook, Amazon, Apple, Microsoft and SAP, among others. In the DMA, it defines a gatekeeper as a platform that operates in one (or more) of the digital world’s eight core services (including search, social networking, advertising and marketplaces) in at least three EU countries and:

Has a significant impact on the internal market (defined quantitatively as an annual turnover of €6.5 billion or a market capitalisation of €65 billion);
Serves as an important gateway for business users to reach end-users (user base larger than 45 million monthly end-users and 10,000 business users yearly);
Enjoys an entrenched and durable position or is likely to continue to enjoy such a position (meets the first and second criteria over three consecutive years).

A platform that meets these quantitative thresholds is labelled a gatekeeper. The Commission would also be empowered to alter the thresholds as technologies change, and to conduct market investigations to look for new gatekeepers.

Consequently, the DMA only targets the truly massive corporations. This way, companies and potential competitors to the Big Tech companies are not burdened with undue regulation. Basically, the DMA would list “Do’s” and “Don’ts” for big tech companies.
For instance, no self-preferencing: a prohibition on ranking their own products over others;
Data portability: an obligation to facilitate the portability of continuous and real-time data;
No ‘spying’: a prohibition on gatekeepers on using the data of their business users to compete with them;
Interoperability of ancillary services: an obligation to allow third-party ancillary service providers (eg payment providers) to run on their platforms;
Open software: an obligation to permit third-party app stores and software to operate on their OS.

The DMA states that the European Commission alone will be responsible for enforcement, meaning they would investigate any alleged violations and hand out penalties to any gatekeepers that violate the DMA’s new rules. Sanctions could go from fines, to periodic penalty payments, additional penalties, including potential “structural remedies”.

Time will tell if the DSA and the DMA manage to change the way the Internet operates and tackle the accumulation of power in the hands of a few companies that happened in the last decade. In any case, before we can create an internet that puts people first, it is important to regulate the domination of a few and support competition. The proposals for a Digital Services Act and a Digital Markets Act are therefore meant to protect Europeans as consumers if technology poses a risk to fundamental rights.

Author
Arnaud Castaignet, Tech European expert and Administrator of SOGA EU
Tallinn, Estonia
March 2021

The role of social economy in a fair and sustainable recovery: input for the future Action Plan on social economy

by sogaccelerator | 11 Mar 2021 | Editorial

The first European Social plan, which will be driven by European associations and announced by Commissioner Nicolas Schmit, raises several questions. The consequences of the economic and social crises we are experiencing are putting the social economy at the forefront, which has shown its resilience capacities in the recent months. This is why the European Economic and Social Committee organised a public hearing on February 17th focusing on the role of the social economy in the European recovery.

“The circular economy can only work with fair regulation”

The European Union has been able to propose new legislative instruments that will strengthen the adaptability of its public policies and the resilience of its citizens. New levers for action were recommended in the recent strategic foresight report. Giuseppe Guerini (EESC) highlighted the appropriate response the social economy provided in the crisis and in the recovery. That is why there is a need for “a more harmonised fiscal policy among Member States, which would allow greater recognition of the general interest function of social economy organisations”, he said. This issue is also perfectly fits with the programme of the Portuguese Presidency of the Council that began last January, which focuses on the European social rights basis and also corresponds to the action plan announced by Mr. Schmit. It should be noted that this presidency is resolutely focused on the digital dimension, and that this dimension will be pursued during the forthcoming Slovenian and French presidencies.

The MEP Sven Giegold then focused on the role of the European Parliament in promoting social economy. According to the MEP, “the EU must support this sector as much as possible, in particular by going further in terms of public policies”. For example, it would be appropriate, according to Mr Giegold, to create a stronger statute for associations at the European level. “There is a real need for a new offensive from the European institutions to recognise the social economy in its diversity, to facilitate the procedures related to it and to create a clear and transparent status” he said. The MEP supports the idea that the social economy can only function on the basis of fair regulation, while relying on a long political agenda and continued support from public authorities.

“The role of the state must be reassessed to improve our resilience”

Nevertheless, the EU is defined by the Treaties as a social market economy, which at present still seems to be lacking. It is necessary to find a good balance to bring business into this debate. Thus, the major economic sectors are seen as inactive in this area, according to Maxime Cerutti (Business Europe).

There is a need for help, especially financial help, in this sector, which has been weakened by the current crises. Filipa Farelo (CASES, Portugal) took the opportunity to point out that “the social economy should be given greater prominence in order to guarantee a better European transition, particularly in view of its importance in terms of resilience”. According to her, the social economy has demonstrated its capacity for inclusion and diversity, in terms of the good representation of women and people with reduced mobility it shows, compared to other sectors.

“The current crisis allows for change in some sectors”

Juan Pedreno (Social Economy Europe) pointed out the importance of supporting democratically functioning start-ups. Such initiatives would allow for a more active participation of European citizens, while strengthening protection systems and cooperation with the public sector to build innovative projects. Thus, the digital transition is a crucial issue for revitalising the social economy in Europe, especially in rural areas affected by the crisis through collective enterprises. The role of the state must therefore be reassessed to improve the resilience of each and every individual.

The social economy is therefore a priority for many actors at the European level, as Jordi Canas, MEP, stated at this public hearing. He therefore regretted the fact that the social economy is not a priority of the Commission, but an objective. Ann Branch (DG Empl) stated that “the Commission attaches full importance to the common base and the social economy”. This therefore poses problems of legal interpretation at the level of European standards related to this theme.

This position is all the more regrettable since the role of the social economy is clear in job creation, without being fully recognised, according to Gianluca Pastorelli (DIESIS). This is why the current crises could be a real window of opportunity to change certain sectors, such as “tourism, which can be made more sustainable and local”, in connection with the social economy.

EU Social Tech Public Affairs Web Review

by sogaccelerator | 19 Nov 2020 | Communs & plaidoyer, Editorial, Revue de presse

As the COVID health crisis19 is forcing a large proportion of Europeans to remain at home, Social Economy, Digital inclusion, Democracy defense are more than ever accurate. On such matters, European activity is not slowing down. Here is a panorama on EU Public Affairs news on our subject (Tech x Social) : Digital Service Act, digital ambitions of the German Presidency of the EU, Data Governance Act, European Action Plan for Democracy and ambitions for the ‘next world’.

Digital Service Act : imposing a Tech European model

From Brussels, Thierry Breton, European Commissioner for the Internal Market is fully mobilised on the Digital Services Act: “As part of the European Digital Strategy, the European Commission has announced a Digital Services Act package to strengthen the Single Market for digital services and foster innovation and competitiveness of the European online environment”. The main aim is to reform the Directive on electronic commerce dating from 2000 with regard to the obligations and responsibilities of platforms and to develop the competition rules. It also provides for the regulation of online content, reinforcing the responsibility of intermediaries in the “fight against illegal content and its amplification”. It thus includes the inclusion of online hate in criminal offences at European level. “Platforms must be more responsible and accountable, they must become more transparent. It is time to go beyond self-regulatory measures” says Vera Jourova, European Commissioner for Values and Transparency.

Very clearly, the European Commission’s ambition is to tackle the ‘too big to care’ monopoly, which the Commission believes crushes competition and distorts the smooth functioning of the internal market. The arm wrestling, as we suspected, promises to be tough. Thierry Breton, who wants to take the digital economy out of the “Far West” era, does not hesitate to directly question the bosses of Silicon Valey: “Don’t try to play the smartest game. Pay your taxes if you have to pay them. Don’t resort to tax havens. Pay your taxes,” he told Facebook’s CEO last May, before Google CEO Sundar Pichai apologised in October for his more than aggressive internal lobbying practices.

The German rotating presidency of the Council of Europe, which ends in December 2020, also makes digital technology one of its major subjects, along with the ecological transition. “In order to stand out internationally as a community of values, we must therefore position ourselves even better on strategic future issues such as climate change, refugees and migration, the rule of law and digital transformation”, said the German Foreign Minister when presenting an ambitious agenda. This also includes the development of a European data and 5G infrastructure and support for research, particularly in the field of artificial intelligence. The Data Governance Act, a regulation on data governance proposed by the European Commission, should thus inflate the pool of data that will feed AI systems and start-ups, and in fine should encourage the emergence of these large sectoral data spaces.

European Democracy : inclusion of people, social economy and civil society are key

The other major topic of this new school year is Democracy. It is the common thread of the digital regulation carried by Europe. And it is a matter of urgency. On the one hand because the breeding ground for mistrust is becoming more and more fertile, particularly because of social networks. According to a survey carried out by the Jean Jaurès Foundation in February 2019, “one Frenchman in five agreed with at least one conspiracy theory” and “43% of those polled agreed that the government would be in cahoots with the pharmaceutical laboratories to hide the reality of the harmfulness of vaccines”. European politicians are also singing the praises of this questioning of our democratic values. While the European recovery plan was painfully voted through, Hungary and Poland decided to apply their veto refusing “that the payment of Community funds should henceforth be conditional on respect for the ru le of law”. One point of consensus, whatever our values: they cannot be bought with billions of euros of aid.

The European action plan for democracy, which has been under the media radar, was the subject of an online consultation this summer. Through the accumulation of new constraints and recommendations for all actors in the democratic game, it must both strengthen the integrity of elections, guarantee media freedom and provide solid strategies against disinformation. It is scheduled for December.

After the first containment, calls for the “next world” had bloomed like flowers in the spring. Despite this regulatory activism, the European project is taking a beating. One would have dreamed that European news coverage would be as dense as it was during the American elections. Wishful thinking that fades like leaves in autumn. Yet there are some calls that resonate more than others, such as that of the first European democratic institution: David Sassoli, President of the European Parliament. “We must ensure that the European policies supported by the resources we pool will encourage a transformation of our economies in the years to come, in the service of respect for the environment, social cohesion – which has been particularly affected in the current health context – and the fight against all forms of inequality,” David Sassoli declared last September. He also recognised that “Europe needs more than ever to support the voluntary sector” and that “the harmonisation of the single market should not be limited to companies but should also concern the voluntary sector“. In the meantime, a European regulation on participatory financing to protect investors from financial losses will have to be sufficient.

But those who have the most to lose are ultimately the most precarious among us. What appears to be self-evident takes on even greater prominence in the DESI ranking, which reveals that the digital and economic divides overlap. In that prospect, Cedric O, French Secretary of state for Digital affairs, just announced a budget of €250 million (40% EU funding) on inclusive digital on the NEC 2020. 4,000 digital advisers will be recruited by local authorities and associations.

For all these mentioned prospect and because Social Economy and Civil society are both a motor for a more sustainable and prosperous economy for all in Europe, they have to be fully involved in all public policies making. This is also what the European Platform for Philanthropy is calling for.

By Nils Pedersen, President of La Fonda Asso and Vice-President of SOGA EU for Public and Academic Affairs

Paris, november 2020

European Call for Projects by Cap Digital : DigiCirc (deadline January 14th 2021)

by sogaccelerator | 19 Nov 2020 | Editorial

The European project DigiCirc launches the 1st call for projects dedicated to the CIRCULAR CITY.

Coordinated by Cap Digital, the European project DigiCirc brings together 10 partners from 9 countries. Its objective is to make our economy more circular by relying on digital technologies.

With €2.4 million of cascading funding, the project will support European SMEs in developing digital solutions to address the challenges identified in the following sectors: the circular city, blue growth and the bio-economy.

In this 1st call for projects, we are looking for innovative digital solutions that meet the challenges of the circular city, i.e. innovations that can increase the efficiency of cities, reduce their ecological footprint and the health costs of their inhabitants.

Proposals must be submitted by consortia of at least two SMEs/start-ups.

The selected consortia will be eligible to benefit from :

Up to 60K€ of funding per SME/start-up;

An intensive 12-week acceleration program;

Individual and personalized business and thematic coaching by experts;

Access to tools to test and develop their digital solutions.

>> Closing date for applications: January 14, 2021 at 5:00 pm CET <<

We invite you to subscribe to the newsletter to learn more and receive the latest news of the project.

Contact: julia.morawski (a) capdigital.com

The DigiCirc team

SOGA EU : Social Economy Digital Road to Mannheim

by sogaccelerator | 13 Nov 2020 | Editorial

The Road to EU Social Economy Summit, Mannheim, May 2021

Tallinn, Estonia, november 2020

In her letter of intent to David Maria Sassoli, President of the European Parliament, and German Chancellor Angela Merkel, who is currently holding the EU Council Presidency, accompanying her State of the Union address, European Commission President Ursula von der Leyen confirmed that the Action Plan for the Social Economy will be among the initiatives for 2021. The Commissioner for Jobs and Social Rights, Nicolas Schmit is currently preparing this plan and he should publish it during the European Social Economy Summit’ on 26 – 27 May 2021 in Mannheim and make it approved in the second half of 2021.

Why should this European Action Plan for the Social Economy be a key milestone for the European Commission and the SSE actors?

The document should provide with a new vision of the economic system and a key instrument to systematically integrate the social economy in the different socio-economic policies of the European Union, as well as in its actions to achieve the Sustainable Development Objectives (SDGs). The plan should highlight the fact third sector and social impact can play a transformative role and strengthen the capacity to react to crises.

Indeed, there are currently 2 million social economy enterprises (cooperatives, mutual societies, non-profit associations, foundations and social enterprises) in Europe, representing 10% of all businesses in the EU. Approximately 6.3% of the working population is employed in this sector. During the coronavirus crisis the sector has become more visible and is seen by the European institutions as critical for Europe’s two priorities: the green and digital transitions.

While the French Social Economy Month is beginning as every november since 11 years in France, and ESS France is lauching a Social Economy Republic platform, European institutions – 5 DG units including EU Commission DG Growth, Employment, Research & Innovation, EcFin and Connect – are working all together to prepare the plan along with European Economic and Social Comitee and Civil society partners, as our partners Social Economy Europe and Pour la Solidarité.

EU Commissioner for Jobs and Social Rights Nicolas Schmit, former Minister of Social Economy in Luxemburg, leading the Plan fo EU Commission, sees supporting social economy and social enterprises as a key part of building the sustainable future of Europe. In that prospect, he is well decided to move forward with the development of this plan. Therefore, he just appointed a new special advisor on social economy issues; Nicolas Hazard, a French entrepreneur and the founder and CEO of INCO, which invests and supports environmentally sustainable and socially responsible innovative companies. In a meeting on 28th September with Finland’s Minister of Social Affais Aino-Kaisa Pekonen, he also indicated that the Action Plan would include the topic of social participation in order to support investment in the sector.

The work on the Plan will also go through the Digital Road to Mannheim 2021

Eight online events in preparation for the European Social Economy Summit. Each Roadmap event focuses on a specific topic and aims to connect different social economy actors in Europe in a highly interactive format, present best practices and use cases, and provide information in interactive sessions of changemakers across Europe. The first online event “New challenges, new innovations, new solidarities – Social Economy in the fight against COVID 19” has been held on September 24th and gathered close to 300 online participants. The next one ” Leaving no one behind Employment, upskilling and social inclusion in the changing world of work” will be organised on October 29th and will feature Manuela Geleng, Director – DG EMPL, Sebastien Darrigrand, General Director UDES – Union des employeurs de l’économie sociale et solidaire, and Trebor Scholz, Founding Director of the Institute for the Cooperative Digital Economy and the Platform Cooperativism Consortium, among speakers: https://www.euses2020.eu/exchange-events/october/.

We encourage everyone to attend and join as the monthly European Social Economy Exchange Events are an excellent opportunity to connect, learn and engage with a diverse audience representing the large variety of actors active in the field all over Europe. It is important for all actors of the SSE to help amplify their voices and stress the importance of significant economic rescue measures directed towards Social Economy actors and the role of SSE responses in fighting the pandemic and supporting post-Covid19 resilience.

Author
Arnaud Castaignet, Tech European expert and Administrator of SOGA EU
Tallinn, Estonia
november 2020

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