In the ongoing discourse surrounding Europe’s future, numerous pivotal policy decisions have been rightly highlighted, including in Martin Wolf’s column “In tough times, good policy becomes still more important” (Opinion, April 28).
However, there exists a crucial element that is often neglected: investments in infrastructure. Technology and especially digital technologies are key drivers of innovation and productivity. Having a robust and secure digital infrastructure is a prerequisite for this. In the analogue world, would a country without roads build performance cars? A major difference with the analogue world is also that the digital infrastructure requires continuous investments to cope with new demands and rapidly growing traffic, like the need to upgrade your mobile phone every two years.
Consider the US, home to some of the world’s largest tech giants. Early access to a robust mobile infrastructure has been an important part of their success.
Early investments in mobile enabled the US to achieve a scale in the digital platforms that Europe currently struggles to match. Even today, US mobile operators invest twice as much per capita in mobile infrastructure compared with their European counterparts.
Notably, the US now benefits from nationwide 5G standalone networks, enabling advanced capabilities such as low latency and network slicing that remain largely absent in European nations. What innovation this will drive, we have not yet seen.
Infrastructure forms the backbone of innovation, encompassing not only technological assets but also requiring venture capital to finance growth.
While Europe is a frontrunner in seed funding, it also needs deeper capital markets to drive the scale of promising ventures. As Wolf notes, effective policy becomes even more critical during challenging periods.
As one who feels deeply for the region’s potential, I urge policymakers to focus on productivity and innovation. This will require long-term investments in infrastructure, including digital infrastructure. I remain hopeful and determined. Europe can win, and I am optimistic about its future.
Europe has the talent, creativity and ambition to succeed.
Börje Ekholm
President & Chief Executive, Ericsson,
Stockholm, Sweden
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