EUeID: It is the economy stupid
Introduction
Sometimes when addressing themes like the urgency of a common digital identity for Europe it feels like we are walking into a lead chamber. For that reason it might be useful to take one step back and ask why is this important ?
The answer is pretty simple, it's the economy stupid !
Services impact on the internal market
Easy way to assess the importance of services is to look at the consequences of Brexit.
In 2017 services accounted for 45 per cent of total UK exports, or ￡277 billion. The EU received 40 per cent of British services exports, the highest proportion of any UK trading partner. Unlike goods, where it runs a deficit, the UK ran a total trade surplus in services of ￡112 billion
UK exports to the EU of financial services (minus insurance and pensions) would be 59 per cent lower;
UK exports of insurance and pension services would be 19 per cent lower; and
exports of other business services (including law, accountancy and professional services) would be ten per cent lower.
For the overall job market we have these figures.
The Single Market for services in the European Union has been a success story. In the last 15 years employment dependent on cross border services has increased by 94percent,while total employment registered a growth of 5.5percent. Thus,cross border services have significantly contributed to employment growth in the European Union. In 2014 around 10.9million jobs in the EU-28 depended on the export of services to other Member States representing around 4.8percent of total employment in the EU.
Breaking this down to type of employment we find
So no question can be raised on the importance of services in the economy the question is if we are capturing the full potential here. The answer is a clear no.
Digitization
The best way to understand the significance of digitization is to observe.
This why Carl Bildt called what we are currently experiencing in Europe as
But Europe also needs to declare a domestic digital emergency, lest it continue falling behind in the industries that will be necessary for achieving all other development goals — including a green economy.
This has further been underlined by all major stakeholders in Europe by the focus placed on both digitization and the criticality of having a well functioning digital market in Europe. Rest assured it is not functioning today.
Summary
The introduction of a common digital identity is just a tool even if a critical tool. Tool for what ? The economy stupid !
Yet as a tool crucial as it may be it is just a tool that must be accompanied by other measures. Luckily it would seen that this has been understood but if we fumble with ball all of the eggs will be broken.
About the author
Ronny Khan is an IT and Business development specialist within the Norwegian financial sector, who is involved in standardization effort on remote natural person identification targeting trust level high as part of a shared effort by the Banking association with public sector stakeholders as well as member of the EU expert group on eid and KYC.
He is currently working full time seconded to the banking association as liaison with key players in the public sector to ensure deployment at scale of remote on boarding for electronic identities in parallel with being used as consultant by DG Fisma on implementation of the digital financial strategy. Here he is coopearting with an informal group called #BUOTI consisting of leading EU experts.
He is also participating in ISO standardization as well as national standardization with focus on biometrics , security, identification and on-boarding in retail banking , a keen follower of the are of identity, identity proofing , KYC and always looking for new interesting domains. Currently he is focused on digital validation as a natural evolution of digital identities.
Ronny is recognized as private sector expert especially in the area of identity by the FATF and is on a regular basis providing input to the work by FATF.
Without digital identity, no digital economy!