Update after the EU elections – Implications for financing digital infrastructure

The outcome of the 2024 European elections plays a crucial role in shaping the future of
broadband deployment across the continent. The priorities to be set by the newly elected
officials and parties should significantly impact not only the pace and scope of broadband
expansion but also the strategic direction of digital policy in Europe. The coalition that is
supporting the van der Leyen Presidency has been confirmed, but there is a significant
change in the power relationships among the political forces. The agenda supported by the
Greens has been seriously questioned by the electorate, but digital transition has a broad
policy support. Nevertheless, the environmental agenda seems to play a key role also for
the incoming Commission, although the responsible Commissioners are not yet known.

In any case, the most likely result is a pro-digital transformation coalition as broadband
deployment can also englobe the goals of the environmental agenda. There may be
enhanced support for policies that prioritize broadband expansion, including increased
funding for infrastructure projects and public-private partnerships. The private participation
in funding will crucially depend on the evolution of investor sentiment in financial markets
that is currently suffering from uncertainties deriving from international instability induced
by armed conflicts in Ukraine and Middle East and political outcomes in forthcoming
election in particular in the US.

With rising concerns about cybersecurity and data privacy, new European legislation is
expected to emerge focusing on secure and resilient broadband networks, leading to
unprecedented swap outs of existing infrastructure and other costly remedies. This will
reshape the way providers build in the future their infrastructure and how they cooperate
with governments. Strategic autonomy will become a key term in the political discussion.
The workshop will discuss how these increasing uncertainties ahead will affect investment
incentives for private operators and how governments can help to tackle the increasing
financial commitments that infrastructure operators will face in the coming years. Financial
markets are challenged to provide appropriate response tools for the difficult times ahead.