Ericsson and Nokia host European industry and policymakers for urgent call to secure Europe’s tech future

• Europe’s connectivity leaders Ericsson and Nokia are at the heart of a technology and economic drive to secure European prosperity through innovation, investment, tech leadership and digitalization success on the global stage.

Supported by European technology leaders ASML and SAP, Ericsson and Nokia are organizing a unique New Industrial Ambition for Europe summit in Brussels today, January 16.

The summit aims to catalyze momentum across the EU to implement the actions required to deliver future European digitalization success – including a more supportive regulatory environment and making the region more attractive to investors.

The summit will be joined by senior European political figures - including Henna Virkkunen, European Commission Executive Vice President for Tech Sovereignty; Dariusz Standerski, Deputy Minister of Digital Affairs for Poland; and former Italian Prime Minister, Enrico Letta - to discuss how Europe can act on the warnings from respected European technology CEOs and implement the Draghi and Letta reports.

The summit will also be addressed by Börje Ekholm, President and CEO of Ericsson; Pekka Lundmark, President and CEO of Nokia; Christian Klein, CEO of SAP; and joined by Christophe Fouquet, CEO of ASML.

These CEOs are united in their conviction that digitalization leadership is central to delivering future European prosperity. The CEOs have significant insight and knowledge about  how to drive this forward.

IMPLEMENT THE DRAGHI AND LETTA REPORTS

The September 2024 Draghi Report recommendations on the future of European competitiveness span a range of actions to foster innovation, incentivize investment in key technologies, enable scale, and reduce fragmentation.

The Draghi Report followed Enrico Letta’s own April 2024 report for the European Council and European Commission called: Much More than a Market: Speed, Security, Solidarity - Empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens.

During the summit Europe’s leadership in connectivity technology development will be highlighted as an example of the how the region has established competitive advantage – but which is currently at risk. Urgent policy actions are required to safeguard Europe’s technology development competitiveness compared to other regions.

The participating CEOs will emphasize that the networks forming the backbone of Europe’s economy and future innovation must be secure and trusted. Advanced connectivity is also critical for the digitalization of defense. The 5G Security Toolbox is vital and needs to be extended to all telecom technologies with its implementation needing to be completed all member states.

A DEFINING MOMENT

Taking the start of the new European Commission mandate as a defining moment for critical action, summit participants will stress that urgent reforms are essential to securing Europe’s future competitiveness, prosperity, and global influence.

Ericsson President and CEO, Börje Ekholm, and Nokia President and CEO, Pekka Lundmark, are among senior European technology leaders who have been vocal about the need for urgent action to support Europe’s technology sector. The summit marks the first time that Ericsson and Nokia have come together to organize and drive an industrial vision initiative – underlining the importance and urgency both companies give to the issue.

Enrico Letta, President of the Jacques Delors Institute and former Italian Prime Minister, says: “In my 2024 report, I underscored the urgent need for Europe to accelerate investments in advanced connectivity infrastructure to secure its future. The leadership demonstrated by companies like Ericsson and Nokia in fostering collaboration with other European tech innovators, such as ASML and SAP, is commendable. However, to enhance Europe’s competitiveness in the global digital economy, it is essential not only to allow greater telco consolidation but also to prioritize substantial investments in advanced connectivity. This focus is vital for addressing the connectivity gaps across the continent and ensuring that Europe remains at the forefront of tech innovation.”

Börje Ekholm, President and CEO, Ericsson, says: “The unique coming together of four technology leaders highlights the urgency facing Europe’s economy to decision makers in Member States. Companies like Ericsson already invest disproportionally more in R&D in Europe. If other regions continue to race ahead this model cannot survive. Those regions are embracing opportunity through investment, policy, and regulatory support. Europe is not. Yet the solution is well known. The EU must implement the Draghi and Letta Report recommendations to enable the technology sector to play our part in delivering future European prosperity.”

Pekka Lundmark, President and Chief Executive Officer, Nokia, says: “European competitiveness already has one foot in the morgue. Our real GDP is 30% less than the U.S.’s, the EU’s share of the Fortune Global 500 is still falling and our digital future looks less certain than ever. The good news is that we can still turn this tanker around. Europe must create an environment in which businesses want to invest, especially on technologies such as AI, cloud and advanced connectivity. This cannot be a decade-long endeavor. Europe must act right now on issues like the 5G Toolbox and telco mergers. If Europe gets this right, it’s a massive opportunity. Draghi and Letta already provided the framework. So, let’s act.”

Christian Klein, CEO, SAP, says: “New technologies will bring growth and higher productivity for Europe. That is why we need to act and drive digitalization across all sectors. Policymakers can support a European tech renaissance by reducing regulatory burdens, incentivizing R&D across the economy, digitizing and modernizing public administration, making Europe more attractive to tech talents, and reshaping education so as to give the next generation a deeper understanding of today’s complex relationships between technological and economic success.”

Christophe Fouquet, CEO, ASML, says: “Big trends such as artificial intelligence, ubiquitous computing and the energy transition drive value creation and economic opportunity across multiple industries. Europe can participate in and benefit from these trends, which are underpinned by semiconductors and advanced connectivity, but let’s not underestimate the scale of the challenge. The rest of the world is not standing still. Making this happen requires the right regulatory, political, commercial and economic frameworks. That’s why it’s so important that we unite the region’s industry leaders, policy makers and innovators to drive our collective ambition in this next wave of innovation.”

ARTICLE NOTES:
1. McKinsey Global Institute June 20, 2024: Investment: Taking the pulse of European competitiveness.
2. ECIPE Policy Brief (p. 20): ECI_24_PolicyBrief_09-2024_LY07.pdf
3. McKinsey Global Institute June 20, 2024: Investment: Taking the pulse of European competitiveness.