A Commission staff working document published on 24 June 2026 assesses Italy's digital performance under the Digital Decade framework, finding that Italy outperforms the EU average on fibre rollout, SME digitalisation, and cloud/data analytics uptake, but structural gaps persist in rural fibre coverage, basic digital skills, and advanced technology integration.
The report, part of the 2026 State of the Digital Decade package, notes that Italy set 14 of 14 national targets, with 79% aligned to EU 2030 goals and 92% of targets on track. Italy allocated EUR 49.8 billion from its Recovery and Resilience Plan (26.5% of total) and EUR 6.1 billion from cohesion policy (14%) to digital investments. On connectivity, FTTP coverage reached 77.56% in 2025, above the EU average of 74.13%, but rural FTTP stood at only 44.48%, well below the EU average of 62.61%. Basic 5G coverage hit 99.82% (above EU 96.79%), yet the 5G SIM share was 51.15%, below the EU average of 55.55%. On digital skills, only 54.3% of Italians have at least basic digital skills, below the EU average of 60.4%, and ICT specialists account for 3.8% of employment, below the EU average of 5.0%. SME digitalisation is strong: 79.5% of SMEs have at least basic digital intensity (above EU 71.4%), but AI adoption among SMEs is 16.4%, below the EU average of 20.0%.
The report recommends that Italy close rural FTTP gaps, boost ICT specialists and basic digital skills, accelerate AI adoption, and strengthen quantum and semiconductor ecosystems. The findings will feed into the Commission's broader Digital Decade policy dialogue with member states and inform potential country-specific recommendations under the European Semester.
For Italian businesses, the strong fibre and 5G backbone supports digital transformation, but the rural connectivity gap risks leaving smaller enterprises and households behind. The skills shortage and low AI adoption could hamper competitiveness in high-tech sectors. For national authorities, the report validates the RRP digital investments but signals the need for targeted rural broadband subsidies and digital education programmes. EU institutions will use the report to calibrate future cohesion and digital funding, while telecom operators may face pressure to extend fibre to underserved areas. The report's recommendations, if implemented, could improve Italy's digital standing but require sustained public and private investment.