Digital Development Levels in the European Union: Measurement and Analysis

Digital transformation is a key driver of economic and social progress, and assessing its evolution is essential for guiding public policies. In the European Union (EU), until 2022 the European Commission published the quantitative values of the Digital Economy and Society Index (DESI); however, it is no longer being published, which makes it difficult to compare the digitalisation process between Member States. This study proposes a new composite index, the DESI-DP2, constructed using the distance P2 methodology (DP2), which provides a synthetic and up to date measurement of the digitalisation levels in the twenty-seven EU countries in 2025, both at an aggregate term and by dimensions. The results reveal notable stability in the ranking of countries, with Denmark, Finland, the Netherlands, and Sweden as persistent leaders, and Bulgaria and Romania among the most lagging countries. Moreover, although digitalisation is positively associated with human development, a high level of development alone is not sufficient to ensure strong digital performance. Finally, the study identifies a shift in the explanatory factors behind cross-country differences, from digital skills toward the digital transformation of the business sector, offering relevant insights for the design of public policies within the framework of the European Digital Decade.