Sitra’s proposals for building a better Europe

The Finnish Innovation Fund Sitra has eight proposals for EU decision-makers that will boost the economy by enabling better use of data and creating business opportunities and wellbeing from biodiversity loss prevention activities. At the same time, the proposal will improve European security of supply and crisis resilience while also strengthening democracy by giving citizens more opportunities to participate in matters important to them.

Europe is facing multiple crises, the most acute being the Russian war of aggression in Ukraine. Significant investments in defence, an aging population, worsening climate issues with extreme weather, and biodiversity loss are all testing the economy and people’s well-being. Dependencies on Chinese materials and factories, as well as US technology, undermine Europe’s ability to determine its own future.

EU decision-makers must now create stability through various measures. Sitra aims to help European decision-makers envision a brighter future and identify the steps towards it. The following eight proposals tackle the most pressing challenges of our time and are based on Sitra’s (est. in 1967) long-term, future-oriented work.

1. Strengthen citizens’ participation in decision-making in an information overload

What does a desirable future look like?

EU citizens can benefit more from democracy and receive accurate information. They will have new opportunities to influence their daily lives. They will also have the skills to deal with information overload and use artificial intelligence tools to identify information influencing. This will enhance well-being and improve the ability to respond to hybrid threats.

Participation will be an integral part of the EU’s formal decision-making process, upholding democracy as a social structure and making legislation high-quality and widely accepted.

Why?

Democracy only works if people believe they can make a difference when they participate.

Our way of using ever-increasing data is changing radically. Misinformation and online harassment are concerns that will not disappear as artificial intelligence becomes more commonplace.

Young people must also feel that democracy belongs to them to participate in social decision-making. Otherwise, there is a risk that their voices will not be heard and their commitment to the democratic system will continue to deteriorate.

Citizens must be involved in planning and implementing major social changes, such as the transition to an economy within the limits of the planet’s carrying capacity.

2. Involve citizens in the development of digitalisation

What does a desirable future look like?

EU citizens can influence the direction of technological development and benefit from digitalisation.

Services will improve as their development takes advantage of the opportunities offered by the use and training of artificial intelligence.

Why?

Citizens’ opportunities to influence digitalisation have been weak, even when its development has affected their daily lives.

Currently, large technology companies, in particular, exercise power in digital environments. Citizens must be able to influence technological developments affecting them.

Trust in artificial intelligence is estimated to be poor. There is a risk that artificial intelligence will not be used to increase the productivity of work and to solve social problems, such as the sustainability crisis.

3. Strengthen competitiveness and economic stability by harnessing data and technologies

What does a desirable future look like?

Europe will have reached parity with China and the US in terms of the development of the data economy. This will be based on a fair data economy that ethically produces products and services.

Europe will have secured its competitiveness and economic reliability by investing heavily and strategically in critical technologies and will no longer be dependent on foreign powers in key technologies.

The utilisation of data will have become more common and diverse in different sectors, improving work productivity. Companies will know how to operate under new data regulations and innovate competitive, data-driven businesses.

Why?

Europe is lagging in the development of a data-driven economy. This threatens the reliability of the EU’s economy and competitiveness in a geopolitically tense situation. The Union is at risk of becoming more dependent on technologies and raw materials controlled by others.

Data regulation is complex. The EU must resolve how companies of all sizes could follow the rules smoothly while maintaining their innovativeness and competitiveness.

The EU must improve its ability to act independently in developing creative artificial intelligence to avoid new dependencies on digital giants.

4. Ensure that Europeans have effective access to healthcare outside their home country

What does a desirable future look like?

EU citizens will receive better treatment based on their health data, no matter where they are in the EU.

Companies and researchers will utilise the data generated in healthcare when developing digitalised health services, products and preventive solutions.

The EU’s single market for healthcare services will be functional and efficient. Digital health applications and patient information systems can be sold across Europe.

Why?

Sharing health data between EU Member States will introduce health benefits and better treatment as well as prevent pandemics.

There are legal and practical obstacles to the utilisation of health data in companies and research. Smooth, jointly agreed upon practices would strengthen European competitiveness in research and innovation.

Increasing the use of artificial intelligence in healthcare would help to provide better technology-assisted digital services.

5. Create a circular single market

What does a desirable future look like?

The EU will have created a circular single market, which will have strengthened its strategic autonomy and self-sufficiency. European circular economy companies will be successful around the world, and consumers will benefit from longer-lasting products. New jobs will have been created and well-being will have increased without overconsumption of natural resources.

It will be easier for consumers to find information about products. The improved transparency of product information will have promoted responsible business practices and accelerated the transition to a circular economy that saves natural resources.

Why?

Currently, the circular economy rate of EU materials is low, below 12%. The European economy, security of supply, climate and nature as well as the continent’s overall security all suffer from wasting materials.

As the circular economy develops, our dependence on critical raw materials produced by China, for example, will decrease. Raw materials used in phones, electric cars, wind turbines, defence technology and more can be kept in circulation.

6. Secure food production – take care of Europe’s soil

What does a desirable future look like?

European fields will be in good condition. They will withstand extreme weather phenomena that are becoming increasingly common and produce better yields. This will allow Europe to produce its own food better, even in times of crisis.

Europe’s soil will be healthy: it will effectively sequester carbon and produce less water pollution.

Why?

Two-thirds of European soil is currently in poor condition and exposed to extreme weather phenomena that are becoming increasingly common. Many current farming practices undermine their status.

The reforms will improve European security of supply and overall security by, for example, processing manure into fertilisers and biogas and ensuring sufficient food production. There is a growing market for sustainable food.

7. Cherish Europe’s most important asset: nature

What does a desirable future look like?

Nature will provide us with vital services, such as food, energy, water purification, medicinal herbs, carbon sequestration and pollination of food plants. Europe will thrive once its economy and foundation for well-being are safeguarded.

Why?

The state of nature is deteriorating in Europe. It endangers the foundation of the economy and well-being. According to the European Central Bank, 75% of bank loans are granted to companies that are dependent on at least one service provided by nature.

The value of nature must be made visible so that natural capital is not consumed beyond the available resources.

Public funds will be saved, and new productive businesses will be created through “nature-based solutions”. They are innovations in which humans adopt nature and the services it provides as a companion in solving social issues.

8. Make sure Europe becomes climate neutral

What does a desirable future look like?

Europe will move away from the fossil fuel economy that is import-dependent. It will be replaced by a crisis-resilient economy based on renewable energy, energy efficiency and saving energy.

Why?

Scientific data on the progress of the climate crisis requires swift and determined action. Europe will face more and more extreme weather phenomena that endanger both people’s well-being and the economic success of the continent.

Summary

EU leaders must have the courage to look far into the future and continue to create stability and prosperity. Sitra wants to help them see a brighter future and the steps towards it.

Sitra has eight recommendations for EU decision-makers to strengthen democracy and improve citizen participation. The economy will get a boost from better use of data in business and the fight against biodiversity loss will become a business opportunity. At the same time, our security of supply will improve and our resilience to crises will grow, even in an increasingly digital world.

The eight proposals are based on Sitra’s long-term work for the future and tackle the most pressing challenges of our time. The proposals are:

1. Strengthen citizens’ participation in decision-making in an information overload. Citizens will have new opportunities to influence their daily lives, new skills to deal with the information overload and new ways to modernise democracy.
2. Involve citizens in the development of digitalisation. Involve Europeans in technological developments, including artificial intelligence. This will boost confidence in progress, as well as labour productivity.
3. Strengthen competitiveness and economic stability by harnessing data and technologies. Europe is breaking away from its dependence on foreign powers and digital giants in key technologies. With effective regulation, European companies will innovate in data-driven business.
4. Ensure that Europeans have effective access to healthcare outside their home country. And businesses and researchers will use data generated in healthcare to develop new services.
5. Create a circular single market. Strengthen Europe’s strategic autonomy and self-sufficiency. Consumers will benefit from longer-lasting products and welfare will increase without overconsumption of natural resources.
6. Secure food production – take care of Europe’s soil. Fields will produce better yields for Europeans, efficiently sequester carbon and produce less water pollution.
7. Cherish Europe’s most important asset: nature. Europe will flourish when the basis for its economy and prosperity is secure. Nature-based solutions save public money and create new business.
8. Make sure Europe becomes climate neutral. Europe is moving away from a fossil fuel economy that is import-dependent and damaging to health. An economy based on renewables will be more resilient to crises and based on a circular economy.

Tiivistelmä

EU-päättäjien on uskallettava katsoa rohkeasti kauas tulevaisuuteen ja luoda vakautta sekä hyvinvointia jatkossakin. Tulevaisuustalo Sitra haluaa auttaa hahmottamaan valoisampaa tulevaisuutta sekä askelia sitä kohti.

Sitralla on EU-päättäjille kahdeksan ehdotusta, joilla demokratia vahvistuu ja kansalaisten osallisuus paranee. Talous saa uutta nostetta, kun dataa osataan hyödyntää paremmin yrityksissä ja luontokadon torjunnasta syntyy liiketoimintaa. Samalla huoltovarmuutemme paranee ja kriisinkestävyytemme myös yhä digitalisoituvassa maailmassa lisääntyy.

Kahdeksan ehdotusta jotka auttavat voittamaan aikamme visaisimpia haasteita, pohjautuvat pitkäjänteiseen tulevaisuustyöhön. Ehdotukset ovat:

1. Vahvista kansalaisten osallistumista päätöksentekoon informaatiotulvassa. Kansalaisille tarjoutuu uusia mahdollisuuksia vaikuttaa tärkeinä pitämiinsä asioihin ja taitoja toimia informaatiotulvassa sekä uudistaa demokratiaa.
2. Ota kansalaiset mukaan kehittämään digitalisaatiota. Eurooppalaiset osallistuvat teknologiseen kehitykseen – mukaan lukien tekoäly. Siten luottamus kehitykseen paranee, kuten myös työn tuottavuus.
3. Vahvista kilpailukykyä ja talouden vakautta hyödyntämällä dataa ja teknologioita. Eurooppa irrottautuu keskeisissä teknologioissa riippuvaisuudestaan ulkovalloista sekä digijäteistä. Tehokkaan sääntelyn myötä eurooppalaiset yritykset innovoivat datavetoista liiketoimintaa.
4. Varmista, että eurooppalaiset saavat tehokkaasti hoitoa myös kotimaansa ulkopuolella. Lisäksiyritykset ja tutkijat hyödyntävät terveydenhuollossa syntynyttä dataa uusien palvelujen kehittämiseen.
5. Luo sisämarkkinoista kiertotalouden mukaiset. Euroopan strateginen autonomia ja omavaraisuus vahvistuvat. Kuluttajat hyötyvät pitkäikäisemmistä tuotteista ja hyvinvointi kasvaa ilman luonnonvarojen ylikulutusta.
6. Turvaa ruuantuotanto – pidä huolta Euroopan maaperästä. Pellot tuottavat eurooppalaisille nykyistä parempia satoja ja sitovat tehokkaasti hiiltä sekä aiheuttavat nykyistä vähemmän vesistöpäästöjä.
7. Vaali Euroopan tärkeintä pääomaa – luontoa. Talouden ja hyvinvoinnin pohja on turvattu.  Eurooppa kukoistaa, kun sen talouden ja hyvinvoinnin pohja on turvattu. Luontopohjaiset ratkaisut säästävät julkisia varoja sekä luovat uutta liiketoimintaa.
8. Varmista, että Euroopasta tulee ilmastoneutraali. Eurooppa irrottautuu tuontiriippuvuutta ja terveyshaittoja aiheuttavasta fossiilitaloudesta. Uusiutuviin nojaava talous kestää paremmin kriisejä ja perustuu kiertotalouteen.

Sammanfattning

EU:s ledare måste våga se långt in i framtiden och fortsätta att skapa stabilitet och välstånd. Sitra vill hjälpa dem att se en ljusare framtid och stegen mot den.

Sitra har åtta rekommendationer till EU:s beslutsfattare för att stärka demokratin och förbättra medborgarnas delaktighet. Ekonomin får en skjuts av bättre dataanvändning i affärslivet och affärslivet av att vi bekämpar förlusten av biologisk mångfald. Samtidigt kommer vår försörjningstrygghet att förbättras och vår motståndskraft mot kriser att öka, även i en alltmer digital värld.

Åtta förslag som ska bidra till att lösa vår tids mest akuta utmaningar bygger på Sitras långsiktiga arbete för framtiden. Förslagen är följande:

1. Stärka medborgarnas deltagande i beslutsfattandet i en tid av informationsöverflöd. Ge medborgarna nya möjligheter att påverka de frågor de bryr sig om, färdigheter att hantera informationsöverflödet och nya sätt att modernisera demokratin.
2. Involvera medborgarna i utvecklingen av digitaliseringen. Involvera européerna i den tekniska utvecklingen – inklusive artificiell intelligens. Detta kommer att öka tilltron till framsteg och arbetsproduktiviteten.
3. Stärka konkurrenskraften och den ekonomiska stabiliteten genom att utnyttja data och teknik. Europa håller på att bryta sig loss från sitt beroende av utländska makter och sitt digitala jättar med viktig teknik. Med effektiv reglering kommer europeiska företag att innovera inom datadriven affärsverksamhet.
4. Säkerställa att européer har effektiv tillgång till vård utanför sitt hemland. Och företag och forskare kommer att använda data som genereras inom vården för att utveckla nya tjänster.
5. Skapa en inre marknad som är förenlig med den cirkulära ekonomin. Stärka Europas strategiska självständighet och självförsörjning. Konsumenterna kommer att dra nytta av produkter med längre livslängd och välfärden kommer att öka utan överkonsumtion av naturresurser.
6. Säkra livsmedelsproduktionen – ta hand om Europas jordar. Fälten kommer att ge bättre avkastning för européerna, binda kol på ett effektivt sätt och ge mindre vattenföroreningar.
7. Värna om Europas viktigaste tillgång – naturen. Europa kommer att blomstra när grunden för dess ekonomi och välstånd är tryggad. Naturbaserade lösningar sparar offentliga medel och skapar nya affärer.
8. Se till att Europa blir klimatneutralt. Europa är på väg bort från en fossilbränsleekonomi som är importberoende och skadlig för hälsan. En ekonomi som bygger på förnybara energikällor kommer att vara mer motståndskraftig mot kriser och baseras på en cirkulär ekonomi.