Europe's Digital Identity Plans: A Move Towards Independence

A New Digital Identity Framework for Europe

The European Union has unveiled an ambitious proposal to establish a framework for a “trusted and secure European e-ID,” aiming to provide all citizens, residents, and businesses with a digital identity. This initiative seeks to simplify the process of verifying identity when accessing public or commercial services throughout the EU.

Building Upon Existing Regulations

Currently, the EU has the eIDAS regulation, which has been in effect since 2014. However, the commission intends to expand upon this foundation by addressing existing limitations, such as limited adoption and insufficient mobile support. The proposed e-ID framework aims to overcome these hurdles.

Incorporating Digital Wallets

A key component of the proposal involves the integration of digital wallets. Users would have the option to download a wallet application to their mobile devices. This wallet would allow them to securely store and selectively share electronic documents for identity verification, such as when opening a bank account or applying for a loan. E-signing functionalities are also planned for these digital wallets.

Practical Applications of a Harmonized e-ID

The commission envisions numerous practical applications for a harmonized e-ID. These include streamlining processes like renting a car, checking into a hotel, submitting tax declarations, and enrolling in universities. Interoperability of national digital IDs is crucial for these cross-border applications.

Addressing Interoperability Challenges

While some member states already offer national electronic IDs, cross-border interoperability remains a significant challenge. Currently, only 14% of key public service providers across all member states support cross-border authentication with an e-Identity system, although cross-border authentications are increasing.

Facilitating the Single Market

A universally accepted e-ID could potentially streamline digital activity within the EU’s single market. It would simplify identity verification and access to services for Europeans traveling or residing outside their home country.

EU’s Strategic Ambitions

EU lawmakers believe this initiative presents an opportunity to establish a strategic foothold in the digital landscape. Creating a unifying framework for European national digital IDs would offer consumers a convenient alternative to physical identification and potentially a more secure option compared to commercial digital ID systems, giving users greater control over their data.

Distinguishing from Existing Commercial Solutions

Many tech companies already allow users to sign in to third-party services using their credentials. However, this often involves sharing personal data with the controlling platform. The commission proposes an alternative where users maintain full control over the data they share.

The Commission’s Vision

The commission’s vision is that “European Digital Identity Wallets will enable all Europeans to access services online without using private identification methods or unnecessarily sharing personal data.” This solution aims to empower users with complete control over their data.

Benefits for European Businesses

The system is also expected to benefit European businesses by enabling them to offer a wider range of new services built upon a secure and trusted identification service. Boosting public trust in digital services is a key priority for the commission.

Challenges to Implementation

Despite its ambition, the e-ID scheme faces significant implementation challenges. Successfully adopting the e-ID requires widespread awareness, usage, platform support, and provider participation, all while maintaining robust security.

Technical Hurdles and Browser Integration

Convincing or compelling web browsers to integrate e-ID is also crucial for streamlined access. Without browser integration, adoption could be significantly hampered. The commission requires “very large platforms” to accept European Digital Identity wallets upon user request.

Qualified Certificates for Website Authentication

The proposal includes provisions for “Qualified certificates for website authentication,” building upon the eIDAS approach. This aims to enhance user trust by verifying the identity of website operators, although website certification will be voluntary.

Browser Compatibility Concerns

Implementing these certificates requires web browser support and interface changes, which has raised concerns among browser makers. Security and privacy researcher Dr. Lukasz Olejnik noted that this could force browsers to accept additional trust certificates and alter their user interfaces.

Data Security and Wallet Storage

A critical question remains regarding how the certified digital identity wallets will store and safeguard user data. The regulation encourages member states to establish joint sandboxes for testing innovative solutions in a secure environment.

Exploring Biometric Authentication

The use of biometric authentication for accessing digital wallets is being considered, alongside potential risks and the need for adequate security measures. Member states are being encouraged to collaborate on testing innovative solutions to improve functionality, data protection, and interoperability.

A Complex Undertaking

The commission’s vision of a unified European e-ID is a complex undertaking with numerous technical and logistical requirements. Achieving widespread adoption and ensuring security are significant challenges.

Accelerated Digital Adoption and the Need for Improvement

Lawmakers argue that the pandemic’s acceleration of digital service adoption highlights the need to address eIDAS’ shortcomings and deliver effective, user-friendly digital services across the EU.

Timeline and Next Steps

Alongside the regulatory proposal, a recommendation has been issued, inviting member states to establish a common toolbox by September 2022. Pilot projects are planned to begin after the toolbox is published in October 2022. The commission aims for 80% of citizens to be using an e-ID solution by 2030.

Digital Sovereignty and Strategic Goals

Ultimately, the EU aims to achieve digital sovereignty and reduce reliance on foreign-owned tech giants. A European-operated digital identity aligns with this strategic goal.

This report was updated with additional comment.