NSC Wiesbaden 2017 | Digitalisation Illustrated

DIGITALISATION illustrated

WIESBADEN2017

THE 27TH NATIONAL SELECTION CONFERENCE OF EYP GERMANY

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TABLE OF CONTENTS THE DIGITAL SINGLE MARKET

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WORD OF WELCOME AND THE MEDIA TEAM

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“I WANT TO LEARN BECAUSE I NEED TO LEARN”

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CRYPTOCURRENCY; CAUTION REQUIRED?

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MISTRUST IN CLOUD SERVICES, JUSTIFIED OR NOT?

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THE DIGITAL DICHOTOMY IN DEVELOPING COUNTRIES: IMPACT OF DIGITALIZATION OF ECONOMY ON SOCIAL LIFE

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DIGITAL ENTREPRENEURSHIP: OPPORTUNITIES AND BARRIERS

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THE TRANSATLANTIC TRANSFER OF DATA: FROM AN UNSAFE HARBOUR TO A WOODEN SHIELD?

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A CASHLESS ECONOMY: WILL IT PROMOTE EUROPE IN TIMES OF ECONOMIC CRISIS?

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A SINGLE MARKET IN THE NEW SPACE AGE

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THE DIGITAL SINGLE MARKET The European Union’s original purpose was not only to instigate political integration in post-war Europe (aiming at an “ever closer union”), but also to stimulate trade between Member States by removing tariff as well as non-tariff barriers and encouraging the free movement of goods, services and people on the continent. While the Single Market is deemed “one of Europe’s major achievements and its best asset in times of increasing globalisation [and economic crisis]”, areas, where barriers to trade are perceived to remain, still exist. Seeing that particularly the European Union’s market for digital goods and services lacks competitiveness by international comparison, its further integration and expansion offer eminent potential: according to the European Commission, it could contribute an estimated €415 billion per year to the European Union’s economy and create hundreds of thousands of new jobs.

Affirming that “much better use [must be made] of the great opportunities offered by [online services] and digital technologies, which know no borders”, Jean-Claude Juncker declared ‘A Connected Digital Single Market’ one of the top 10 priorities of the European Commission for 2014-19.

The so-called Digital Single Market (DSM) Strategy, originally published in May 2015, tackles issues related to infrastructure,

broadband accessibility, copyright as well as data protection and is built upon three policy areas or pillars: (1) better access for consumers and businesses to digital goods and services across Europe; (2) creating the right conditions and a level playing field for digital networks and innovative services to flourish; (3) maximising the growth potential of the digital economy.

With corresponding legislative proposals now being discussed by the European Commission‘s co-legislators, the European Parliament and the Council, the time to take stock of the DSM Strategy‘s implementation and put forward the youth‘s ideas regarding this issue has come. Following discussions revolving around the Juncker priorities ‘A Stronger Global Actor’, ‘A Deeper and Fairer Economic and Monetary Union’ and ‘A Deeper and Fairer Internal Market at this year’s Regional Selection Conferences in Herzogenaurach, Frankfurt and Nauen respectively, the participants of the 27th National Selection Conference of the European Youth Parliament Germany in Wiesbaden will now deal with the impact of the digital transformation on the European Single Market and develop resolutions that point the way towards making the latter ”fit for the digital age”.

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WELCOME TO WIESBADEN! Dear participants, Every day passing by is bringing us closer to Wiesbaden 2017, an event we are all waiting for. With every one of these days passing, our excitement for the session keeps on growing. It has been our main job to make sure the media team is ready to make the session a memorable one, feeding off the creativity of the media team members and the delegates. Our vision for the media team encompasses an extension of the means available, which means we will try our upmost to bring to you the academic information in a different form, allowing you to look at issues from a different perspective.

The National Selection Conference is a very important event for all participants.

We both remember our own national conferences and look back with fond memories as it marked the beginning of our EYP career, which the both of us have enjoyed and have meant a lot to us. We can safely say that those years have provided us with the means to develop and improve ourselves greatly.

We hope you are as excited as we are and we know you want to get started as soon as possible, which is why we recommend you to read this Welcome Booklet to get to know all the details of this amazing event taking place in June. We wish everyone participating in Wiesbaden 2017 the best of luck, a lot of fun and we cannot wait to meet each and everyone of you. Preparations are in full swing and we are confident in saying that when the event is over, a little bit of Wiesbaden will stay with all of us.

Best wishes, Maria Bianka Lojanica and Tom Cobbenhagen Editors of Wiesbaden ’17 - The 27th National Selection Conference of EYP Germany

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Maria Bianka Lojanica (NL) Editress

Tom Cobbenhagen (NL) Editor

Janita Karra (FI) Editorial Assistant

André Dinis (PT) Videography

Daniël de Weerd (NL) Publishing

Daniel Heinz (DE) Photography

Gizem İncesu (TR) Photography

Ivar Fagerfjäll (SE) Photography

Justyn Brockmeyer (DE) Publishing

Luka Dzagania (GE) Publishing

Paula Flores (ES) Videography

Tasja Karapetian (AM) Photography

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“I WANT TO LEARN BECAUSE I NEED TO LEARN�

An article by Paula Flores (ES)

Have you ever used eLearning? The answer is possibly yes. In fact, not only you but almost everyone who uses a computer or a smartphone has engaged in some type of e-Learning. But what is this new way of education?

It is easy to understand what e-Learning is. It is just a new way of learning that requires the utilization of technologies. The aim is to access the educational curriculum, but outside of a traditional classroom,without having the teacher in front of the student. So yes, now it is possible to access to a course, a program or even to have a degree completed solely online and easier than ever!

Not attending a physical class does not prevent you from interacting with a teacher and other students. You can communicate easily with them, raise your hand to make a question in a live class or listen to a lecture that has been prerecorded.

You also have to study for exams and hand in your homework when the teacher asks you to do so. E-Learning has been proven to be a

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successful method of teaching and this new type of education is becoming a way of life for many citizens in North Carolina (US)1.

While a lot of people wish for the implementation of eLearning in every single area, there are others who question its utility and viability. The ones that are against the implementation state that technology is not always reliable at all, it can crash whenever, in the worst situation and without asking. In addition, the loss of face-toface conversation with the student is something that worries the supporters of the traditional education.

They also claim that learning through technology may be dangerous because there is the possibility of focusing on the medium and giving no thought to the actual content. Although it can give very good results when teaching a student how to put together an engine, some think that it fails to teach soft skills such as leadership or teamwork. These are some of the reasons why they oppose to a more digital education.

However, the supporters of eLearning come with another set of arguments. All these things

mentioned above can be improved with a new way of e-Learning proposed by Juan Domingo Farnós, a Spanish researcher who has developed an open, inclusive and ubiquitous education. The aim of this project is to provide a personalized learning - social learning. The most important peculiarity of his work is that he wants to build an inclusive society and get rid of discrimination and exclusion.

As he once said “What I learn is useless if you don’t learn it too”, so is there a better way to spread culture and knowledge? Obviously, his answer is the digital realm. There are many ways to reach his goals, for example with chats, sceensharing, presentations in digital blackboards and also video conferences or online lectures, as proposed by him. With these methods, it will be easy to attend a class from the best expert of a subject that is giving a lecture on the other side of the planet. Isn’t that a privilege?

While some people may question the utility of e-Learning and the lack of face-to-face classes others state that our society has to evolve to a

more digitalised education in order to reach a goal: an inclusive and open education, where everyone can be able to learn despite the difficulties they may face. This way, knowing the points in favor and against eLearnin g, we have to ask ourselves: what do we want, how do we want it and when do we want it.Although nowadays is difficult to know which way is better, the only clear thing is that as Farnós once said “I want to learn because I need to learn”.

THE EXPERT Juan Domingo Farnós

Spanish researcher in the field of learning and information technologies and communication

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CRYPTOCURRENCY: CAUTION REQUIRED?

An article by Daniël de Weerd (NL)

The Bitcoin is a novel online currency, based on a complex system called ‘blockchain’. Its value has ranged between 600 and 2000 euros in the past year (source: https://bitcoincharts.com/charts/ bitstampUSD#rg360ztgSzm1g10zm2g25zv), and cannot in any way be predicted. The blockchain, which is designed in such a way that no central authority can control it, guarantees all Bitcoin transactions to be secure, irreversible and completely anonymous.

This anonymity is by far the most controversial concept of bitcoin. It is considered deeply troublesome by law enforcement agencies, as Bitcoin is just as untraceable as cash money and can freely be used by tax evaders, drug dealers, and human traffickers.

We shouldn’t ban it because of this. After all, we cannot ban Euro coins and notes because one might use them to buy ecstasy. Still, it severely limits authorities’ possibilities when investigating fraud, money laundering or other criminal activities.

Others, who argue that the government is getting too much power over the way we spend our money, welcome Bitcoin as a tool that serves to reverse this trend. For example: if you want to transfer money to friends in Iran or to Wikileaks, your government can and will prevent you from doing this with your regular bank account. As

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Dutch socio-legal expert Maxim Februari describes what other rules banks and the government could set: “You could’ve gotten credit, but it won’t get you beer, or critical literature, or a politically undesirable plane ticket to Turkey.”

Mr. Februari himself, however, believes that Bitcoin does not solve this problem. He argues that any form of non-cash money is problematic: “Your currency in this case still isn’t money, but data concerning money; exchanging this data depends on an external infrastructure. You need internet access to pay with bitcoins, which still forces you to rely on a system other than money itself.”

He believes that the inherent infrastructural dependency of digital currencies is their main disadvantage, and this also applies to bitcoin.

However, Bitcoin takes the threat of the government interfering with all its citizens’ payments is the table.

Mike Hearn, a former Bitcoin developer, considers Bitcoin to be a ‘failed experiment’. In one of his final blog posts as a developer (source: https:// blog.plan99.net/the-resolution-of-the-bitcoinexperiment-dabb30201f7), he wrote that the Bitcoin was doomed to fail because of several severe technical issues. More surprisingly, he stated that the bitcoin infrastructure was in fact controlled by a small group of people, who could both force and block changes to the network.

As bitcoin is widely marketed as a decentralized uncontrollable currency, this would negate all the advantages it offers.

Hearn’s views are deeply controversial in the bitcoin community. Other developers have called him ‘epically wrong on almost all technical points’ and a ‘blatant liar’, and have even speculated that he tried to purposefully smear Bitcoin. (source: http://www.coindesk. com/bitcoin-branded-a-failure-as-mediaerupts-over-mike-hearns-contentious-exit/) Bitcoin has been widely praised as a revolutionary digital innovation. It offers interesting possibilities and extended civil liberties, but also has a wildly unpredictable value, clear potential to facilitate criminal activities, and in-fighting among experts about whether it will survive the next couple of years.

So whether you want to use Bitcoins, invest in them, or regulate them, it is best to proceed with caution.

THE EXPERTS Maxim Februari

Dutch writer, philosopher and columnist

Mike Hearn

American former Bitcoin core developer

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EXPERTS 12

Tor Nilsson

Founder and CEO of Pro4U

Marta SandĂŠn

IT advisor for the European Commission

MISTRUST IN CLOUD SERVICES, JUSTIFIED OR NOT? An article by Ivar Fagerfjäll (SE) 44% of the EU-28 population is currently not using cloud storages, according to a report presented by Eurostat [1]. This is a problem for the EU since it conflicts the goals of a digital single market and a digitalised Europe. Most of the people that report they are not using cloud storage say it is because of the security risks. But is this mistrust justified or only a result of poor information on the subject and what can the European Union do to increase usage of online storage?

When reading articles on cloud storage, using the service often seems like a dangerous undertaking with risks ranging from your data being used for sinister purposes to the storage company shutting down resulting in the loss of everything you have stored. According to experts however, these dangers are mostly exaggerated. “It is often safer to use cloud storages” says Tor Nilsson, founder and CEO of the IT company Pro4U. “Most big, established cloud storage companies protect your data with advanced encryptions and backups. You are always going to be in danger of losing your data but for most users this risk becomes smaller when using cloud services.” This opinion is backed

by Marta Sandén, an IT advisor for the European Commission. “According to the expert reports we use to distribute our IT-funding, cloud services are viable and will most likely be widely used in the future. You can also see an upgoing trend in corporate usage of online third party storage with more and more large companies outsourcing the storage of their data to reduce costs and, in some cases, increase security.”

But if cloud storage is safe, why are 44% of the EU-28 population still not adopting the service?

According to Sandénthis is mostly due to lacking knowledge on the subject and is a normal trend for new digital products. “Whenever a new technology is introduced you can talk about early and late

adapters, but with time most practical services like this, end up being used by everyone. 44% of the population currently not using the service tell me that we are about halfway to it being adopted by everyone”, Sandén says, adding that IT-education should be the focus of the EU to speed up the journey towards wide spread usage. “People know too little about online storage to trust and, in some cases, even know how to use the services.”

With all of this said, online services could still be made safer. During last year there has been multiple instances of passwords leaks, even from large companies like Google, and partly successful IT attacks on the British government for example.

“There is not much the EU can do about this other than invest in IT-development” says Sandén. This view is shared by Nilsson who adds; “The damaged caused by attacks and leakages have been exaggerated. Most large IT-companies use one way encryption for their passwords making leaked password information useless for hackers.”

In general, the risks of cloud storage services are exaggerated. A big part of the European population not adopting the service is a result of poor knowledge on the subject. With investments in IT education and development, a future where practically everyone uses online storage is not too far away.

[1] Seybert, H., & Reinecke, P. (2014). Half of Europeans used the internet on the go and a fifth saved files on internet storage space in 2014.

Eurostat.

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THE DIGITAL DICHOTOMY IN DEVELOPING COUNTRIES: IMPACT OF DIGITALIZATION OF ECONOMY ON SOCIAL LIFE An article by Gizem İncesu (TR) In the EU, the Digital Single Market strategy has been initiated in order to open up digital opportunities for people and business and enhance Europe’s position as a world leader in the digital economy. This strategy supports an inclusive digital society, where citizens have the right skills to seize the opportunities of the digital world, boost their chance of getting a job and for governments to optimize their use of data. The benefits of this strategy and digitalization, in general, are undeniable; however, the effects of digitalization are not even among countries and new strategies cause problems if they are unsuccessfully implemented. In order to alleviate the problems and help the developing countries adapt to the new technology, unions such as the European Union and the African Union work together. In addition, experts seek answers to questions on the possible benefits and notable drawbacks of digitalisation in developing countries while searching for innovative solutions. Two experts, Director of Hürriyet’s Information Technologies (http://www.hurriyetdailynews.com/) Umut Gökbayrak and Vice General Manager of Tam Factoring (http://www.tamfaktoring.com.tr/ en ) Hakan Karamanlı, shared their expertise about this controversial topic in order to shed some light on this quandary.

Digitalisation influenced the world’s economy greatly, and has provided many advantages to the economy of developing countries.

Mr. Gökbayrak illustrated the impact of digitalisation on the international economy with an example: “When we look now at the

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companies with the highest brand value of the world, the only non-digital company that can enter the top 5 is the 4th, Coca-Cola, and the brand value is $ 58.5 billion (Forbes.com, n.d.). It is evident that now the new economy is digital because of Coca Cola, which has a history of more than 130 years, is about to be outrun by Facebook, which is established in 2004.” Making the tables turn in brand value rankings, digitalisation of the economy brought along numerous advantages such as making it possible to enter the competition and to make revenue with a tiny investment. In order to get the most from digitalisation, the issues that the developing countries might have with introducing the new technology should be minimized. Mr. Gökbayrak added that cargo and distribution infrastructures might need to be upgraded and refurbished. He further asserted

THE EXPERTS Umut Gökbayrak Director of Hürriyet’s Information Technologies

Hakan Karamanlı Vice General Manager of Tam Faktoring

SOURCES Digital Single Market. (2017). Economy & Society. [online] Available at: https://ec.europa.eu/digital-single-market/ node/78517 [Accessed 23 May 2017].

Forbes.com. (n.d.). The World’s Most Valuable Brands. [online] Available at: https://www.forbes.com/powerfulbrands/list/ [Accessed 24 May 2017].

Strategy&. (2013). The Varying Effects of Digitization on Economic Growth and Job Creation – A Global Perspective. [online] Available at: https://www.strategyand.pwc.com/ me/home/press_media/management_consulting_press_ releases/details/52364755 https://www.strategyand.pwc.com/me/home/press_media/ management_consulting_press_releases/details/52364755 [Accessed 23 May 2017].

that cross-border contracting rules are required and VAT differences must be eliminated. Last but not least, he emphasized that preparations should be made on cyber security. Mr. Karamanlı addressed another important point, which is the necessity to encourage competition and creativity.

Digitalisation of the economy does not only impact its businesses, but it also affects society. Mr. Gökbayrak expressed that “Digital markets change the way in which an individual communicates. For instance, being able to reach the most reliable sources under equal conditions prevents social manipulation and supports democracy. It creates opportunity equality, expands the economy exponentially and destroys invisible glass walls and caste systems.” Further, the change of consumer habits brings a rapid change of communication.

Mr. Karamanlı illustrated the shift in consumer behaviors by asserting that “Instead of talking to our neighbors on the road, we communicate via social media. This situation causes the communication to be written instead of spoken. However, the lack of education in the developing countries and the difficulty of written communication cause significant communication problems.”

In conclusion, digitalisation has brought about many benefits as well as disadvantages regarding their implementation in developing countries. Many entities such as unions and experts are working in order to seek feasible solutions for the issues caused by these disadvantages. While these disadvantages are being worked on, digitalisation continues to shape our community in numerous ways.

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DIGITAL ENTREPRENEURSHIP: OPPORTUNITIES AND BARRIERS An article by Luka Dzagania (GE) "Digital entrepreneurship" – a term, used to refer to the process of creating new means of providing product or services, using online/digital business platforms. This definition covers both start-ups, that introduce products and services through digital means, and the transformation of activities within the established businesses and institutions.

The emergence of utility-based cloud computing has enabled a shift from the technical barriers, faced by digital entrepreneurship, to more business environment related issues. This shift has emphasised the need for the introduction and implementation of policies, that will allow the facilitation of the successful development, incubation and growth of digital services. However, in more rural areas, the key challenge remains to be the lack of basic infrastructure, ranging from: the equipment, network, content, and ecosystem of information and communication technologies, as well as experience and basic skill set of both businesses and consumers (Bogdanowicz, 2015).

The emergence of digital entrepreneurship holds a promise of improvement in a number of fields, enabling people to work remotely from distant areas, with flexible hours, either from the comfort of the house or on the go. The potential benefits range from promoting gender equality, better social and economic incorporation, and acting as a catalyst for local long-tern and sustainable development in various areas of the EU, especially when new technologies closely incorporate the vast data and sources, available openly to the public. To demonstrate this, the example can be used, on the incorporation of data on things such as: Weather conditions, agriculture, and state of traffic and roads, in services aimed at improvement of these fields, including: farming and crops production, car accident avoidance and relief, and traffic jam and parking issues. Even the provision of

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basic information on the prices of the products and services in specific areas will significantly benefit local suppliers, using technologies that combine and match the supply and demand of labour, goods and services with the purpose of enhancing economic efficiency, productivity and income opportunities on the domestic level (Atkinson, McTernan & Reed, 2015; Bogdanowicz, 2015).

However, the expansion digital entrepreneurial activities have also highlighted the emergence of new digital divides. In majority of cases, the digital divide is shifting away from the lack of availability of affordable, reliable and high-speed digital technologies, to the issue of actually using and implementing them in business activities for creating new opportunities. Many companies do not use technologies at hand to their full capacity, mainly due to lack of necessary skills, vision, or regulatory barriers. Also, the lack of competition in the digital entrepreneurial field poses a risk to further development and diffusion of the existing technologies, as the existing barriers to entry hinder the ability of digital entrepreneurs to effectively compete with already established businesses in the market, who have had a chance to develop efficient means of supplying goods and services (Clayton & Welsum, 2014).

In conclusion, while better incorporation of digital entrepreneurship promises the improvement in various areas in a number of fields, such as gender equality, social and economic integration, and sustainable local development, a number of barriers still exist. While in rural areas, the key challenge is the lack of necessary infrastructure, in more developed areas where the infrastructure and technologies are readily available, there is a significant lack of skill, necessary for the full implementation of potential of the existing digital technologies.

THE EXPERT

SOURCES Atkinson, R. D., McTernan, M., & Reed, A. (Eds.). (2015). Sharing in the Success of the Digital Economy: A Progressive Approach to Radical Innovation. Pickering & Chatto Publishers.

Marc Bogdanowicz Manager of Research at the Institute for Prospective Technological Studies Joint Research Centre (JRC) at the European Commission

Bogdanowicz, M. (2015). Digital Entrepreneurship Barriers and Drivers-The need for a specific measurement framework (No. JRC96465). Institute for Prospective and Technological Studies, Joint Research Centre.

Clayton, T., & van Welsum, D. (2014). Closing the Digital Entrepreneurship Gap in Europe: Enabling Businesses to Spur Growth. In The Conference Board, Executive Action Report (Vol. 425, p. 2014).

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THE TRANSATLANTIC TRANSFER OF DATA: FROM AN UNSAFE HARBOUR TO A WOODEN SHIELD?

An article by Justyn Brockmeyer (DE)

The (un-)safe harbour Nearly all our communication on the internet is possible because of the directive 95/46/EC. It ensures that member states of the Union need to fulfil minimum standards on the protection of citizen’s personal data and thereby allows the free movement of data within the Union.

But companies like Facebook or Google are not mainly located in Europe. To enable a free movement of data into the United States, the European Commission decided that freedom of movement for data should include the US, when a comparable data protection is guaranteed by a company through selfcertification. This decision is called the “SafeHarbor Agreement”.

In 2015, fifteen years after the decision was agreed upon, the European Court of Justice (CJEU) faced a case that led to a deciding judgement. After Edward Snowden revealed the mass surveillance of citizens by the US, the Austrian law student Maximilian Schrems saw his right to privacy violated and complained to the Irish authorities, where the High Court handed the case to the CJEU. In its judgement, the CJEU declared the Safe harbour invalid, arguing that the decision lacks proof for comparable data protection and supervision, as well as the violation of Fundamental rights through mass surveillance.

An old agreement relabelled?

Forced to come up with a new decision the EC decided on the EU-US Privacy Shield in July

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2016. The Privacy Shield is meant to replace Safe-Harbor and introduces measures to meet the criteria given by the CJEU. The Privacy Shield contains improvements, such as a supervision of companies that are under the Privacy Shield and the creation of opportunities to complain about the abuse of data either to the newly created Ombudsman in the US or National Agencies.

But criticism remains, in an article on the EU law analysis blog Dr. Maria Tzanou states that “the Commission has entirely based its draft adequacy analysis on a mere detailed description of this law without any further commitment that this will improve in any

THE EXPERT Dr. Maria Tzanou Lecturer in Law at Keele University

SOURCES [1]Dr. Tzanou, M. (12 April 2016) The Commission’s draft EU-US Privacy Shield adequacy decision: A Shield for Transatlantic Privacy or Nothing New under the Sun? http://eulawanalysis.blogspot. de/2016/04/the-commissions-draft-eu-us-privacy. html [2] Article 29 working party (12 July 2016) Statement on the decision of the European Commission on the EU-U.S. Privacy Shield. http:// ec.europa.eu/justice/data-protection/article-29/ press-material/press-release/art29_press_material/2016/20160726_wp29_wp_statement_eu_us_ privacy_shield_en.pdf [3] European Parliament (20 March 2017) resolution on the adequacy of the protection afforded by the EU-US Privacy Shield. http://www.europarl. europa.eu/sides/getDoc.do?type=MOTION&reference=B8-2017-0235&format=XML&language=EN [4] CJEU (7 November 2016) Digital Rights Ireland v Commission http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:62016TN0670 [5] Brill, J. / Cohen, B. (30 January 2017) Trump’s Executive Order Does Not Impact U.S. Privacy Shield Commitments. http://www.hldataprotection.com/2017/01/articles/international-eu-privacy/trumps-executive-order-does-not-impact-u-sprivacy-shield-commitments/

way to comply with EU fundamental rights as interpreted by the CJEU.” Those concerns about the uncertainty of mass surveillance are shared by the independent Article 29 working group, which “regrets the lack of concrete assurances that such practice does not take place” Will the shield break?

Being aware of the problems the European Parliament passed a resolution in which it calls the Commission to solve several issues after the first annual report in September 2017 to ensure adequate protection.[3] The first of the annual reports is expected to lead to changes in the framework and thereby avoid another potentially critical judgement by the CJEU.

Another judgement by the CJEU doesn’t seem unlikely, since Digital Rights Ireland already launched a challenge stating that the protection of EU citizens is still inadequate.[4] The CJEU is expected to decide on this matter in 2018.

The Privacy Shield is also threatened by the American side, like an executive order on the US Privacy Act showed, though it turned out to not affect the Privacy Shield.[5] All in all the Privacy Shield suffers from its own weakness and future will show if it is able to survive another CJEU judgement and the political change in the US.

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A CASHLESS ECONOMY: WILL IT PROMOTE EUROPE IN TIMES OF ECONOMIC CRISIS? An article by Daniel Heinz (DE)

Is a world without cash just a world without worries? A dream of banks and a nightmare for freedom-loving citizens? Yet, it might not be a dream that cash money could be abolished. With the digital revolution offering ever-faster and more convenient means for settling transactions, cash seems to have no future.Payments without physical banknotes or coins have been proliferating in recent years. Credit cards, online transfers, and third-party service providers are already well established. Now, payment options via smartphone and mobile goods are also gaining ground. The European society seems to enjoy noncash payments while it is time for the European Union to reform European structures.

transfer. For example, cash transactions are already outdated in Sweden. According to an analysis from MasterCard Advisor published in 2013, 59% of all consumer payment transactions in Sweden have been done using non-cash methods. The Netherlands are the top performers in the European comparison with 60 percent.

However, countries with a similar economy show massive differences. In Germany only one third of the transaction are of the digital kind. Eyal Ron, mathematician, and entrepreneur, comments on this situation:

In fact, the European Union is already largely moving towards a cashless economy. An economic state whereby financial transactions are not conducted with money in the form of physical banknotes or coins, but rather through the digital

Holding a banknote constitutes security and creates a feeling of power. “Especially countries with a big low-wage sector fear digital money because [physical] money makes them feel safe”, said Ron. “If we want a cashless economy to work, the European Union needs new institutions to control those processes”, he continued. “The fight

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“It is all about safety”

THE EXPERT Eyal Ron, PhD

Eight years ago, Ron moved from Israel to Berlin to achieve his PhD. His passion for software development became his profession when he founded Cryptom Technologies UG. Today he develops techniques of cashless payment and advises financial service providers.

against tax evaders and money laundry is often cited as a motive for restrictions on cash. Yet, the argument that criminal activities do not happen without cash is illusory.

Only, incidentally, or consciously, would it also destroy a good amount of privacy.” According to Ron it is doubtful that there would be a complete transparency of the payment of payments for the benefit of citizens.

Moreover, the state would be able to control every single transaction. “To counteract those effects an alternative way of financing is needed”, describes Ron. According to his point of view, a currency like bitcoins is needed parallel to digital euros. “Both currencies can go hand-in-hand to counteract their own drawbacks”, claims Ron. He advises the European Union to set a strong signal for private settings including by the option of anonymous payment by bitcoins to regain trust.

SOURCES http://www.mastercardadvisors.com/_assets/ pdf/MasterCardAdvisors-CashlessSociety.pdf [1] https://www.nytimes.com/2014/06/06/ business/international/european-central-bankcuts-interest-rate.html?_r=0

From currency union to digital union Indeed, a cashless society is no longer just a dream made up by scaremonger. All member states – and the ones who want to join – must find a common denominator. The digital revolution is an ongoing trend that does not seems to slow down soon , therefore solutions must be found. The European Union was founded in 1993 in times of need as an economic Union. Almost 30 years after this revolutionary treaty, our currency union faces again economic challenges. In June 2014 the European Central Bank became the world’s first the world’s first major central bank to adopt socalled negative interest rates [1]. For the first time, account holders lost money instead of increasing it. To overcome the inevitable restructuring, one may not forget: Humans will never be digital. In this conclusion, humans will always have fears and hope. Therefore, cashless EU must stay a community of values.

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A SINGLE MARKET IN THE NEW SPACE AGE

An article by André Dinis (PT)

The Europe 2020 strategy is about delivering growth that is: smart, through more effective investments in education, research and innovation; sustainable, thanks to a decisive move towards a lowcarbon economy; and inclusive, with a strong emphasis on job creation and poverty reduction. The strategy is focused on five ambitious goals in the areas of employment, innovation, education, poverty reduction and climate/energy.

Horizon 2020 is the financial instrument implementing the Innovation Union [1], a Europe 2020 [2] flagship initiative aimed at securing Europe's global competitiveness.

To achieve Horizon 2020 objectives, the EU relies on the European Space Agency to develop space technologies that will allow the growth the EU requires. Space technologies can support numerous EU policies and key political priorities, including the EU's Digital Agenda. The main priorities of the EU’s Digital Agenda are providing Broadband for all, redesigning the telecoms sector and creating a consumer friendly digital single market.

As Américo Leão, an engineer at University of Porto, says “The single digital market is a very interesting and potentially driving force for the European economy. The fact that there is a digital market in which citizens and companies from all over Europe can more easily, in bureaucratic and administrative terms, carry out their

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purchases, leads to a greater willingness on part of the buyers to make investments, and consequently greater development of industries and competitiveness in order to meet demand.”

However, the potential of space solutions to achieve these aims have not yet been fully exploited, and nor have the wider possibilities offered by space data. The space sector needs to be better connected to the policies and economic areas of the EU and all Member States.

The need for space innovation and cooperation is especially apparent in the digital aspects of our society. With 250 million European citizens using the Internet everyday

THE EXPERT

SOURCES [1] Innovation Union, http://ec.europa.eu/research/ innovation-union/index_en.cfm

Américo Leão

Engineer at University of Porto

[2] Europe 2020, http://ec.europa.eu/europe2020/ index_en.htm [3] Digital Agenda for Europe (2014), The European Commission, https://europa.eu/european-union/ file/1497/download_en?token=KzfSz-CR The European Commission - Digital Single Market, https://ec.europa.eu/digital-single-market/en European Space Agency, http://www.esa.int/ESA The European Commission - What is Horizon 2020, https://ec.europa.eu/programmes/horizon2020/en/ what-horizon-2020 The European Commission - Europe 2020, http:// ec.europa.eu/europe2020/index_en.htm The European Commission - Digital Scoreboard, https://ec.europa.eu/digital-single-market/en/digitalscoreboard The European Commission - Europe 2020 Strategy https://ec.europa.eu/digital-single-market/en/ europe-2020-strategy

cooperation. In order to rise to the challenges that we face today the EU, the European Space Agency, Member States and the private sector must work together to harness the potential of space in our digital age.

[3], this area of our society undoubtedly impacts our daily actions. As Américo Leão reports, “Every day scientific experiments are carried out in space, in which many of them contributed to a greater knowledge in several scientific areas such as medicine, meteorology, biology and physics, which allowed society to move towards knowledge and its development.”.

Closer cooperation of Member States and EU institutions is also needed in the area of space security. Integrating the potential for dual use by both civil and military actors into future space programme development in areas such as satellite and infrastructure development can help concretise this

However, the cooperation between Member States and the private sector may be difficult to achieve thanks to a possible conflict of interests. While the private sector may want to use space technologies to improve the quality of their businesses, the Member States may be more concerned with using space technologies to improve the quality of their businesses, the Member States may be more concerned with using space technologies to improve the quality of life of citizens. EU Institutions must therefore ensure that the legislation for Space Policy encompasses all the needs of both the public and private sector.

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