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What’s in the EU budget for digital skills? Commission proposes close to €2 trillion in 2028-2034 MFF, boosting funding for digital capacity

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What's in the EU budget for digital skills? Commission proposes close to €2 trillion in 2028-2034 MFF, boosting funding for digital capacity

22.07.2025

On 16 July, the European Commission unveiled its proposal for the next long-term budget of the European Union: the Multiannual Financial Framework (MFF), which covers the period from 2028 – 2034. Valued at almost €2 trillion, the MFF aims to see an “independent, prosperous, secure and thriving” Europe as the next decade rolls in. In comparison, the current MFF, which is running from 2021 until 2027 amounts to just €1.2 trillion, or about 1% of the EU’s gross domestic product (GDP).

Digital policy stands out as a key area in the Commission’s new MFF proposal, reflecting a strategic shift, where digital skills are no longer regarded as a need but rather as a core, fundamental basis for EU sovereignty, competitiveness and resilience. So what does the EU’s new long-term budget of the EU hold for digital skills in the decade to come and how will digital and skills be financed? Let’s find out.

The art of the EU’s long-term budget, the MFF

Before we go into the specifics of the MFF proposal, let’s get some basic things out of the way first. What is the MFF? The Multiannual Financial Framework (also known as the EU’s long-term budget) comes complementary to national budgets, only coming into play when spending on EU level rather than the national one is the more reasonable and cost-effective option. As a general rule, the MFF sets out the spending priorities and limits for a number of years ahead. It is on this basis that the annual EU budget is then prepared.

The new MFF identifies ‘digital leadership’ as one of 4 core thematic areas with a budget of €51.5 billion: this is five times the combined budgets of the Digital Europe Programme and the Connecting Europe Facility under the current MFF. In this way, the Commission’s draft proposal for “an ambitious budget for a stronger Europe” underlines the key role digital systems play in ensuring Europe’s economic and political resilience. This means digital capacity is now all the more a strategic asset, which requires consistent and sustained investment, and not simply one of the drivers of innovation.

The proposal also recognises some current challenges require stronger measures. Europe must perform better and excel at offering the perfect conditions for its companies, SMEs and employees to thrive in, as stated in the reports of both Draghi and Letta that delve into European competitiveness strategies. Investments in frontier technologies with the potential of unlocking a brighter future like AI or quantum, are also key – and so is secure, high-quality digital infrastructure.

Digital skills and employment in the EU’s new MFF

European Competitiveness Fund (€409 billion)

To address critical shortages and upgrade the ability of the continent to withstand and mitigate adverse circumstances, the new EU Competitiveness Fund planned under the MFF brings an envelope of €409 billion (including Horizon Europe) in an unprecedented boost in EU budget support to research, innovation, development and deployment. This is in line with recommendations of both Draghi’s and Letta’s reports.

Source: European Commission, 2025 | MFF Proposal

Complemented by a stronger Horizon Europe (the budget of which almost doubles under the new MFF), the Competitiveness Fund aims to provide support and investment to European innovators, from the very idea to scaling up. Linked to the Competitiveness Compass, the new Fund strengthens EU competitive edge in several strategic sectors, facilitating also multi-country and cross-border projects with high EU value added. The Fund is expected to contribute to the creation of high-quality jobs and will create a single gateway to applicants looking for funding, accelerating EU finding and acting as a catalyst for both public and private investment.

Support under the EU Competitiveness will be provided against 4 axes:

  1. clean transition and decarbonisation;
  2. digital transition;
  3. health, biotech, agriculture and bioeconomy;
  4. defence, and space.

Boosting EU’s research framework, Horizon Europe, with €175 billion

Complementary to the Competitiveness Fund is boosted support for Horizon Europe, the main research and innovation framework of the European Union. Under the new MFF, its budget almost doubles, from €95.5 to €175 billion. Commission plans for Horizon Europe see the programme to continue operating as a self-standing financing instrument closely linked to the Competitiveness Fund through integrated work programmes for collaborative research and a common rulebook.

The new Horizon Europe will be simplified and reinforced, enabling faster and more strategic EU spending through clearer rules and more transparent procedures for applicants and stakeholders. It will support cross-sectoral fundamental research actions, relying on its well-established excellence-driven approach and preparing the future engines of growth and technological leadership. Horizon Europe will be built around 4 pillars: 1) Excellent Science, 2) Competitiveness and Society, 3) Innovation and 4) the European Research Area. An expanded European Research Council (ERC) will promote cutting-edge, breakthrough science and the European Innovation Council (EIC) will be reinforced to provide adequate support to start-ups. Together with boosted funding under the European Social Fund (ESF+), a stronger Horizon Europe and the new EU Competitiveness Fund will support up- and re-skilling initiatives for all, and the creation of quality jobs in key strategic sectors: lifelong learning, education, training projects and apprenticeships.

Stepping up investment in skills

Boosting investment in skills is fundamental to help EU students and workers embrace opportunities, including promoting artistic and cultural freedom. The long-term budget will continue to invest in the areas of skills, culture, media and values:

  • A reinforced Erasmus+ programme with boosted funding will remain the backbone of the Union of Skills. Principles like education mobility, solidarity and inclusiveness will continue to underline virtually all aspects of the programme.
  • A new AgoraEU programme will be launched as a way to reinforce and further promote shared European values, including democracy, equality and the rule of law and support the European cultural diversity. The programme will provide support to audiovisual and creative sectors, media freedom and foster the involvement of civil society circles and groups.
Source: European Commission, Multiannual Financial Framework
Source: European Commission, 2025 | MFF Proposal

National and Regional Partnership Plans, €865 billion

Competitiveness is closely linked to both ability and confidence: and together with skills acquisition, the citizens of Europe need to feel empowered to grab the opportunities the future will bring. Naturally, supporting people and the unique EU social model is at the very heart of the EU’s long-term budget for the next decade. The new MFF proposes a 50% increase (equating to around 50 billion) for the budget of Erasmus+ to foster education and democratic values. This goes hand in hand with actions under the ESF+, which will be implemented through the new National and Regional Partnership Plans; and strengthens the European Pillar of Social Rights and its capacity to foster the creation of quality jobs, skills development, and social inclusion across the EU Member States and its regions. As part of the plans (which all include a social target of at least 14%), the European Social Fund Plus will contribute to promote equal opportunities for all and foster social inclusion.

Want to know more?

Read the Communication of the European Commission on the Multiannual Financial Framework (MFF) 2028-2034: “a dynamic EU budget for the priorities of the future”. See also the proposal for a Council Regulation laying down the multiannual financial framework for the years 2028 to 2034, and its Annex.

There are also 2 Commission staff working documents accompanying the budgetary proposal, and supporting documentation and resources available on the official page for the Multiannual Financial Framework of the European Commission. 

Details

Target audience

Digital skills for all

Digital technology

Basic digital skills

AI Leap 2025: Estonia Sets Global Benchmark for AI Integration in Education

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AI Leap 2025: Estonia Sets Global Benchmark for AI Integration in Education

10.05.2025

Estonia is preparing to take a major step forward in education with the launch of its AI Leap 2025 initiative, a program aimed at integrating advanced artificial intelligence tools into classrooms across the country. The initiative will equip both students and teachers with access to AI-powered educational technologies, along with training on how to use them effectively during the learning process. 

Beginning this autumn, the program will reach its first phase, targeting 20,000 high school students in grades 10 and 11, while 3,000 teachers will receive specialized instructions in AI applications. Later, the initiative will be expanded to more high school students and vocational institutions.

The concept behind AI Leap 2025 draws inspiration from Estonia’s groundbreaking Tiger Leap project of the 1990s, which brought internet connectivity and computers to every school, laying the foundation for country’s success in the digital sector. With AI Leap, policymakers aim to ensure that Estonian youth are well-versed in AI, positioning the nation as a leader in digital innovation.

The program is being already developed through a public-private partnership with major AI companies, including OpenAI and Anthropic. The program is open to collaboration with any and all partners who meet their needs and have useful solutions to offer. Partners will be engaged in co-creation of the curriculum, workshops, and solutions. 

In a recent interview with the e-Estonia Briefing Centre, Siim Sikkut, a member of Estonian President Alar Karis’s Digital Council, a managing partner in Digital Nation, and a core figure behind the launch of AI Leap, shared insights into the program’s vision.

On question “What is the background of the AI Leap program?” Mr. Sikkut answers: “The program’s context is the realisation that AI is here to stay. Using and creating AI tools is already an essential skill for productivity. Still, it will become a critical skill for remaining competitive at the personal, company, and national levels. As a country, we need to build this base skillset fast.” 

The program was initiated by Estonian President Alar Karis, who convened a roundtable of leading tech entrepreneurs in December, at which the current idea was born. President Karis assigned his Digital Council to lead the development of the initiative, in collaboration with various entrepreneurs and the Ministry of Education.

Mr. Sikkut adds that the development of the curriculum for AI Leap 2025 is being led by Estonia’s Ministry of Education and Research, with the support of diverse working groups that include teachers, students, academics, business representatives, and other community stakeholders. They will start by defining the target competencies for skilling and then move on to the creation of specific curricula, learning tools, relevant training programs, etc.. While the full content of the learning process is still being finalized, the initiative is designed to be dynamic and adaptive, not a one-time effort. AI Leap is intentionally structured as an experimental, evolving program that will help identify the most effective ways to incorporate AI into education. 

The first phase will begin in autumn 2025 with initial training for teachers, focusing on understanding and applying AI in the classroom. Shortly after, students will gain access to the world’s best AI-powered learning applications. This training will include an overview of the use and understanding of AI technology and recommendations on personalising learning according to each student’s needs and optimising and empowering teaching. Importantly, the goal is not for AI to replace educators or traditional methods but to enhance the learning experience, empower teachers, and better prepare students for a future where AI is an integral part of everyday life and work.

While speaking about the long-term goal of the AI Leap 2025, Mr. Sikkut mentions: “The long-term goal is to maintain Estonia’s high level of education, increase Estonians’ global breakthrough ability, and smoothly integrate AI into education to ensure the best possible learning. We want to make teaching more efficient, personalised, diverse, and inclusive. We also want to reduce the digital technology divide and prevent a new divide between those who are AI savvy and those who are not.”

As for each innovation, there is a dose of skepticism for AI Leap 2025. Mr. Sikkut  explains that the initiative won’t negatively impact the education and learning process because AI is already part of students’ lives but without structured integration into education. So it is better to incorporate AI into education in the most effective, organised and systematic way, rather than leave it to chance, which can lead to more negative results. Together with that, it’s vital for the program to ensure that every student has an equal access to AI resources and evenly benefits from it, since not everyone has or can afford AI applications. Concerns about excessive screen time and smartphone dependency are also acknowledged – but AI Leap is not about increasing device use, it’s about changing its purpose. The goal is to shift smart device use from passive consumption and entertainment to active learning and skill development. 

Estonia is positioning itself as a global pioneer by being among the first nations to implement AI integration across its entire education system – not just in select schools or regions but nationwide. By launching AI Leap 2025, Estonia not only aims to enhance its own educational outcomes but also hopes to serve as a model for other countries. The nation is committed to sharing its experiences and insights, helping others learn from its journey.

Details

Website

www.e-estonia.com

Target audience

Digital skills for all

Digital skills in education

Digital skills for children

Digital technology

Artificial Intelligence

Digital Education

What trends are shaping education in 2025? Track them with OECD!

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What trends are shaping education in 2025? Track them with OECD!

01.04.2025

Every 3 years, the Organization for Economic Cooperation and Development (OECD) takes stock of the most dominant trends (or megatrends, as they name trends with a larger impact than the usual) shaping education in a special report. The 2025 edition of the report explores a range of themes central to education and skills, including the “explosion” of breakthrough digital technologies – think Artificial Intelligence (AI), the Internet of Things (IoT), and Virtual Reality (VR) and the extent to which they are already transforming the way we work and communicate with one another.

The report can be of interest to a large group of people, including policymakers and education professionals, administrators, teachers, academics and also students, parents and anyone that is wondering how education can address the challenges of today, whilst also preparing students for the future.

In this short but sweet article, we dive into some of the main questions the report explores to give you the highlights and main bits we gathered from the many pages of the report we read. At the same time, we’ll try to also point you to various sections on the Platform that can help you reach your learning goals, such as training opportunities on basic, intermediate and more advanced level, digital skills resources and case studies, good practice examples and reports.

Keeping up with the (digital) times

Technological advancement happens at an unprecedented pace, fast turning new ways of dealing with issues of global importance, like climate change or public health, into mainstream approaches. Yet, concerns naturally remain. For example, a recent Eurobarometer survey in 27 EU Member States and 8 other countries found that half of surveyed people believed in AI’s potential to advance scientific discoveries and the tools society has to tackle pressing issues at hand, i.e climate change, disease, etc. 

It also looks like the generation that follows, may not have acquired the right skillsets to be able to navigate the future in a confident, and self-aware way. In December, the OECD published the results of its PISA  (in-person evaluations of key skills like literacy, numeracy, and problem-solving skills of 160.000 adults aged 16-65 in 31 different countries. Compared to the assessed levels one decade ago, literacy levels are going down in most of the surveyed countries. For those with university education, i.e tertiary level of education, the results were even more ‘striking’ – literary proficiency decreased rapidly everywhere apart from Finland

Life on Mars? Peak into the digital future

Take your protein pills and put your helmet on: we are taking a big leap into the near future. Foresight is the ability to predict, or anticipate future developments – whether these manifest as challenges or opportunities. Foresight requires an almost intricate understanding of current trends, evidence-based approaches, and strategic thinking – this includes a long-term vision, diverse scenarios planning, and proactive decision-making, all with the aim of shaping a better future.

Zooming in onto education, this means ensuring learners are equipped with future-proof skills that will empower them to tackle future challenges. For policymakers, teachers and education administrators this entails a proactive approach to mitigating the impact of technological disruptions, gaps and shortages in the labour market, etc. Throughout this, education curricula has to remain relevant and flexible enough to accommodate the evolving demands of the future in the context of aptitudes and skillsets.

The report looks ahead towards a range of future possibilities and trends with the potential of huge influence. If we take a look at digital skills more broadly, foresight here means anticipating the skills and competences students and workers of the future will need – all this through the narrow prism of an increasingly automated and AI and data-driven economy and society. While basic digital literacy is important (and rightly reflected in the 80% target of the Digital Decade by 2030), fostering critical thinking, flexibility, resilience, ethical AI deployment and cybersecurity readiness is just as crucial.

The increased uptake and development in the field of AI is boosting the capacity of robots working with humans across fields and in practice, this means that human-robot interaction will increase rapidly in the years to come. Since technology has an huge impact on social interactions and digital well-being, the stake in education explodes. The OECD report dives exactly into this tunnel: how can education help sustain a sense of community and foster online well-being and socio-emotional learning for the youngest and the oldest in the education circles?

Ensuring education can deliver the right set of skills

Indeed, education has its own set of unique challenges to address. Rapid technological development equals rapid transitions in the fine mechanics of skills supply and demand, raising questions on how to best align educational frameworks so they deliver real-world skills as well as the skillsets most in demand in the labour market. The OECD report seems to suggest that diversifying educational pathways and innovating teaching formats and practices is the main way forward to embrace the growing demand for high-skilled workers and lifelong learning opportunities.

From a uniquely European perspective, education is undergoing a rapid restructuring towards a future-proof map of competencies. In March 2025, the College of Commissioners adopted the Union of Skills Package, which includes a Basic Skills Action Plan and a Strategic STEM Plan. The Union of Skills Package strategy is to get all Europeans ready for the future, aiming to chart a roadmap towards an education framework that evolves hand in hand with the digital developments of the future.

Objectives of the Union of Skills. | Source: European Commission, Union of Skills Factsheet

The Digital Skills & Jobs Platform can help get you started on your journey to learning about tech through flexible, personalised learning pathways. The Platform’s learning path section provides an entire selection of carefully curated learning paths, such as the Cloud Computing Basic Learning Path, the VR Learning Path titled “What is real? What is virtual? In which world am I wandering?, or the more advanced learning path on AI in medicine by the xAIM project. If you’re feeling adventurous, you can also build your own path by saving training opportunities, resources, learning content and publications from all around the Platform’s sections.

Digital wellbeing: a growing area of concern

Education is the 1st step our youngsters take into curiosity and finding out how the world works, and should improve students’ competencies. However, this should not come at the expense of mental health. Recent data points to the dark and addictive side of digital media, where traditional preventative strategies do not necessarily work.

Take into account also the fact that digital technologies have practically become embedded within formal and vocational education, moulding teaching and learning practices and tools – in effect, this means that children and teenagers spend an increasingly larger part of their time online.

This comes at a cost. 

Prolonged digital media use is associated with increased anxiety and depression amongst adolescents. A study in Norway found a link between social media use and high instances of depression. Another Finnish study equally associated prolonged social media use with increased anxiety after studying over 1.000 girls.

There is no denying that digital technologies have an impact on our wellbeing and mental health has become an issue of public health and an urgent concern. 

The report notes that since the COVID-19 pandemic, mental health has risen sharply as a major health concern – a trend illustrated in the graph below and observed across a number of countries.

 

On EU level, digital wellbeing is addressed by a range of campaigns, events, and projects aiming to foster an understanding of online concerns and the impact of digital on mental health. Co-funded by the European Union, Safer Internet Centres across Europe strive to keep children and young people safe online through a range of actions and initiatives. The Commission’s strategy for a better internet for kids (BIK+), adopted on 11 May 2022, ensures children are protected, respected and empowered online in the new Digital Decade, in line with the European Digital Principles.

Explore the trends shaping education

Find the full report here and dive into the various variables impacting education right now.

Details

Target audience

Digital skills for all

Digital skills in education

Digital technology

Artificial Intelligence

Basic digital skills