The Need for Digitization in 2025: Transforming Obsolete Systems
As 2025 progresses, digitalisation is becoming an essential pillar for economic, social and administrative development across Europe. However, many European countries, especially those less advanced in the adoption of digital technologies, face challenges related to outdated systems that limit progress.
What does digitalization mean in 2025?
Digitalization in 2025 represents the integration of advanced digital technologies into all aspects of life, from public administration and the business sector to education and health. It involves using artificial intelligence (AI), the Internet of Things (IoT), blockchain, cloud computing, and 5G networks to automate processes, improve access to services, and optimize data management. Digitization is not limited to the creation of applications or websites, but aims to completely transform systems to ensure interconnectivity, efficiency and transparency.
Key components of digitalization
- Process automation: Using AI and robotic process automation (RPA) to eliminate manual labor in administration and industry.
- Digital infrastructure: Deploying 5G networks and cloud data centers for fast information transfer.
- Digital public services: Integrated platforms for accessing government services, such as paying taxes or obtaining documents online.
- Digital skills: Training programs to prepare citizens and employees to use modern technologies.
The context of less digitized European countries
According to the European Union's Digital Economy and Society Index (DESI) 2024, countries such as Romania (27th out of 27 in the EU), Bulgaria (26th) and Greece (25th place) rank at the top of the European ranking in terms of digitalization. Moldova, although not a member of the EU, faces similar challenges, with a limited digital infrastructure and slow adoption of technologies. These countries have low penetration of high-speed Internet, low digital skills and poorly digitized public services. In 2025, digitization becomes essential to bring these nations into line with European and global standards.
Digitalization in 2025 is about creating an ecosystem that supports innovation, inclusion and competitiveness, providing opportunities for countries that are lagging behind to catch up.
Why are outdated systems a hindrance?
Outdated systems, such as paper-based administrative processes, outdated IT infrastructure or lack of digital skills, are a major barrier to the progress of less digitised European countries. These systems not only slow down development, but generate unnecessary costs, inefficiency and frustration for citizens and companies.
Problems of outdated systems
- Excessive Bureaucracy: In many countries, public services require physical travel to the counters and filling out paper forms. For example, in Romania, obtaining a certificate from the city hall can take days, while countries like Estonia offer such services online within minutes.
- Outdated IT infrastructure: Public institutions and companies often use outdated software and hardware that cannot support modern applications or large volumes of data, leading to bottlenecks and security vulnerabilities.
- Lack of interoperability: IT systems in public administration are not interconnected, which forces citizens to provide the same information to several institutions.
- Reduced digital skills: In countries such as Bulgaria and Romania, more than 50% of the population has basic or non-existent digital skills, according to DESI 2024, which limits the use of digital services.
- High costs: Maintaining obsolete systems involves large expenses for maintenance and manual processes, while digitization would significantly reduce these costs.
Impact on the economy and society
Outdated systems affect economic competitiveness, discouraging foreign investment and limiting local business development. For example, an SME in Greece that relies on manual processes cannot compete with a Danish company that uses automation and cloud. In addition, the lack of digitalisation perpetuates social inequalities, excluding citizens in rural areas or with limited access to technology from essential services.
The transition to modern technologies is crucial to remove these barriers and align less digitized countries with global digital standards.
Benefits of Digitization for Less Digitized Countries
Digitalisation brings significant benefits to citizens, companies and public administrations in European countries that are lagging behind in adopting digital technologies, helping to close the gap with digital leaders such as Denmark or Finland.
For citizens
- Easier access to servicesDigital platforms allow citizens to access public services, such as paying taxes or medical appointments, without physical travel. For example, Estonia has implemented an e-government system that allows 99% of services to be accessed online.
- Improving the quality of life: Digitalisation of health (telemedicine) and education (e-learning platforms) provides access to quality services, even in isolated rural areas.
- Transparency and Reduction of CorruptionBlockchain-based platforms ensure the traceability of public transactions, reducing the risk of corruption, a common problem in less digitized countries.
- Digital Inclusion: Digital literacy programs can help older or disadvantaged populations access economic and social opportunities.
For companies
- Operational efficiency: Automation through RPA and cloud computing reduces the time and costs associated with inventory management, invoicing or accounting.
- Access to global markets: E-commerce and digital marketing platforms enable SMEs to sell products and services internationally.
- Innovation and Competitiveness: The adoption of AI and IoT helps companies develop new products and optimize processes. For example, a farm in Bulgaria can use IoT sensors to monitor crops, increasing productivity.
- Enhanced securityCloud and blockchain solutions provide better protection for companies' data, reducing the risk of cyber attacks.
For public administration
- Reducing Bureaucracy: Digitization of public services eliminates manual processes, reducing processing time and administrative costs.
- Data interoperabilityIntegrated systems allow institutions to share information, eliminating the need for citizens to provide the same data over and over again.
- Transparency: Public digital platforms increase citizens' confidence by publishing data on government spending and projects.
Practical examples
- Romania: The e-Invoice platform simplifies electronic invoicing for companies, reducing errors and processing time.
- Bulgaria: Initiatives such as the “e-Government Strategy” have introduced digital services, but expanding internet access in rural areas remains a priority.
- Greece: Public sector digitisation programmes have improved access to services, but adoption remains slow in the private sector.
Digitization offers the opportunity to transform less digitized countries into modern, competitive economies, reducing inequalities and improving the quality of life.
Challenges and prospects for the future
While the benefits of digitalisation are obvious, less digitised European countries face challenges that need to be addressed to accelerate the adoption of modern technologies.
Challenges
- Limited infrastructure: In countries such as Romania and Bulgaria, the penetration of high-speed Internet is low, especially in rural areas. According to DESI 2024, only 70% of rural households in Romania have fast internet access. Investments in 5G and fiber optic networks are essential.
- Lack of digital skills: The population of these countries needs training to use digital technologies effectively. Digital education programmes are in short supply, especially in rural areas.
- Resistance to change: Bureaucracy and traditional mentality in public administration and companies are slowing down the adoption of digitization. For example, many institutions prefer paper processes out of habit.
- Initial CostsDigitalisation requires significant investment in hardware, software and training, which can be a burden on public budgets and small businesses.
- Data security: Increasing use of digital platforms brings risks of cyber attacks, and these countries need robust cybersecurity strategies.
Prospects for the future
The future of digitalisation in Europe's less digitised countries is promising, with significant opportunities:
- European funds: EU countries, such as Romania, Bulgaria and Greece, benefit from funds through the National Recovery and Resilience Plan (NRR) for the digitalisation of public administration and SMEs.
- Regional collaborations: Less digitised countries can learn from the success models of digital leaders, such as Estonia, to accelerate transformation.
- 5G development: The deployment of 5G networks will facilitate the adoption of IoT and mobile applications, including in rural areas.
- Digital Education: Training programs in schools, universities and for adults will increase the digital skills of the population.
- Blockchain and Transparency: The adoption of blockchain in public administration can reduce corruption and increase the trust of citizens.
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