A Commission staff working document published on 24 June 2026 finds that Germany's digital transformation is hampered by persistent structural weaknesses in connectivity and digital public services, even as the country leads in semiconductors and quantum technologies. The report, part of the Digital Decade 2026 country reports, notes that fibre-to-the-premises (FTTP) coverage stood at just 44% in 2025, the second-lowest in the EU, despite a 19.6% annual growth rate. Mid-band 5G coverage (3.4-3.8 GHz) reached only 54.4%, well below the EU average of 74.8%, and rural FTTP coverage was 43.2% against an EU average of 62.6%. A large gap persists between homes passed (24.6 million) and homes connected (10 million).
Digital public services scored 78.1 for citizens and 77.8 for businesses, both below EU averages of 84.6 and 88.6 respectively, while e-ID uptake remains very low. On the positive side, 63.2% of businesses use AI, cloud, or data analytics, matching the EU average, and AI adoption stands at 26% (EU: 20%). ICT specialists make up 5.5% of employment (EU: 5.0%), and 59.6% of the population has at least basic digital skills (EU: 60.4%). Germany allocates EUR 12.8 billion (46% of its recovery plan) and EUR 2.4 billion from cohesion policy to digital investments.
The report recommends accelerating fibre rollout and 5G mid-band coverage, boosting digital public services and e-ID use, increasing AI adoption, addressing ICT specialist shortages, leveraging quantum strengths, and improving cybersecurity resilience. The findings highlight a trade-off between Germany's high-tech leadership and its lagging infrastructure and public services, impacting businesses reliant on fast connectivity and citizens needing seamless e-government. National authorities face pressure to streamline permitting and investment, while telecom operators may see opportunities in closing the connectivity gap. The Commission's recommendations set the stage for policy follow-up at EU and national levels.