THE ROLE OF DIGITALIZATION IN ECONOMIC INTEGRATION AND THE FORMATION OF THE EU DIGITAL SINGLE MARKET

Purpose: To identify the key factors influencing the digital integration of European Union member states, with a focus on the development of the Digital Single Market (DSM) and the level of digital maturity as measured by the DESI index. Methodology/approach: The study employs correlation analysis, multifactor regression modeling, and logical generalization. Official statistical data from Eurostat and DESI country reports were used to assess the influence of ICT sector share in GDP, the proportion of ICT specialists in employment, broadband internet coverage, and the level of e-commerce. Findings: The results show that human capital indicators – particularly the share of ICT specialists and the population’s basic digital skills – have the most significant impact on digital integration. Despite the harmonization of digital strategies, notable structural asymmetries persist across EU countries, stemming from unequal access to digital resources and varying levels of institutional preparedness. The study emphasizes that the success of the Digital Europe programme largely depends on its capacity to mobilize transnational investments and support cross-border digital cooperation. Originality/value: This research provides an evidence-based understanding of the structural challenges within EU digital integration. It offers policy-relevant insights into shifting from regulatory unification toward human capital development and institutional coordination, contributing to the design of more effective EU-wide digital strategies.