"In terms of digitalization, Germany remains in the middle of the pack in Europe and is in danger of falling behind - because the others are simply faster.
Germany is not moving beyond the middle of the pack in terms of digital progress in Europe. This is shown by the previously unpublished Bitkom Digital Economy & Society Index (DESI) 2025, which compares the digital performance of all EU member states. Particularly alarming: In the category "Digitalization of Public Administration," Germany has slipped to 21st place. While other countries are accelerating digitalization, Germany is in danger of falling behind - despite some progress, for example, in network expansion.
In the overall ranking of the Bitkom Index 2025, Germany ranks 14th among the 27 member states of the European Union. This means that Europe's largest economy has remained in the digital middle of the pack for years. Most recently, Germany was ranked 13th. The DESI Index was published annually by the EU Commission from 2014 to 2022 inclusive. Since 2023, the index has been included in the report on the state of the digital economy. The index has been integrated into the "State of the Digital Decade" and is no longer published as a standalone index. The industry association Bitkom has now taken over this task and closely aligned itself with the EU Commission's parameters when compiling the index.
"We simply can't get out of the middle field. This is also due to the fact that other countries are pushing ahead much more than we are," criticized Bitkom President Ralf Wintergerst. The previous federal government, consisting of the SPD, the Greens, and the FDP, "clearly missed" its self-imposed goal of a leading role in digitalization. It had still hoped to be among the top ten nations.
The lag is particularly evident in the area of digital administration. "21st place in the e-government category is, of course, pretty much the worst thing that can happen to us." And that's despite the demands we place on our country," says Wintergerst. In fact, Germany has even taken a step backward in this area. While countries like Estonia, Denmark, and Finland have long offered comprehensive digital administrative services, online access to government services in this country is often still piecemeal.
Many administrative services are still not digitized everywhere, for example, when it comes to registering a new vehicle or a new address. Tax matters are also cumbersome: the government continues to ask its citizens for information it has long had – for example, when recalculating property taxes. Conversely, Wintergerst cites the Federal Employment Agency under the leadership of former SPD politician Andrea Nahles as a positive example. Digitalization has already progressed considerably there.
The problem is not a lack of awareness of the deficits. "Digital Germany is perfectly mapped out, the problems are clearly evident," says Wintergerst. But the federal structure with various responsibilities at the federal, state, and local levels is proving to be a hurdle on the way to "congruent Digitalize." The individual levels must "cooperate more closely," demands the Bitkom president – and also wants this to be understood as a message to the political system.
Germany is doing better in terms of network expansion. In the area of "Network Quality," the country ranks 9th in Europe. More than 99 percent of households have 5G. And now, every second household has access to fiber optics. The expansion is to be completed by 2030, Wintergerst estimates, but also says: "This is a joint effort." Public usage is not yet where it should be. Too many people are still relying on outdated technology. "The copper network works perfectly; that's enough for many." As a result, Germany falls to 19th place in the network usage ranking. The population's digital skills are similarly mediocre. In the area of "Digital Skills," Germany ranks only 15th. "We have become a country of technology skeptics," says the digital entrepreneur. "In the country of poets, thinkers, and engineers, engineers are increasingly breaking new ground." away." That's why the respect for AI is so great here. Other countries are dealing with it more pragmatically.
The economy performs better in international comparison: In the "Digital Transformation of Businesses" category, Germany ranks 8th. Many companies are driving forward the digitalization of their business models and processes – often faster than the public sector. But here, too, the shortage of skilled workers threatens to become a bottleneck.
In light of this record, attention is turning to the new CDU-led federal government and its digital policy. The establishment of an independent Federal Ministry for Digital Affairs and State Modernization is being advocated by Bitkom. This is also welcomed, as is the new structure, as it is designed according to the organizational decree of the Federal Chancellery. "Some thought has obviously gone into this," says Wintergerst. But he calls for more than just a new agency: "It would make sense for the federal government to develop a digital strategy. Then it could also be measured against it." [1]
1. Deutschland ist digitales Mittelmaß. Frankfurter Allgemeine Zeitung; Frankfurt. 11 Aug 2025: 15. Von Corinna Budras, Berlin
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