From Digital Policies to Sustainable Futures: How Far Has the EU Progressed?

This study investigated the relationship between digital governance and sustainable development across the European Union (EU-27) during the period 2015–2023. Although digital transformation has become a central policy priority, empirical evidence on how e-government adoption contributes to sustainability performance remains limited. Using panel data from Eurostat and the UN Sustainable Development Solutions Network, the analysis employed advanced econometric techniques, including Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Method of Moments Quantile Regression (MMQR), to explore both long-run relationships and heterogeneous effects across countries. The model incorporates key indicators such as the percentage of individuals using e-government services, Gross Domestic Product (GDP) per capita growth, and Research and Development (R&D) expenditure, capturing, respectively, digital governance adoption, innovation potential, and economic capacity, as essential drivers of sustainable development. Results indicate a strong and statistically significant positive association between digital governance adoption and sustainable development outcomes. The quantile regression analysis reveals that this effect is more pronounced in countries with higher innovation intensity and stronger economic capacity, suggesting that digital governance amplifies sustainability benefits in countries with more advanced institutional and technological infrastructures. Robustness checks confirm the stability of the findings across multiple estimation techniques. The results underscore the need for inclusive and innovation-driven digital strategies to ensure that the benefits of digital governance are equitably distributed, ultimately enhancing the EU’s progress towards the Sustainable Development Goals.