THE IMPACT OF DIGITAL TRANSFORMATION ON PUBLIC POLICY FORMULATION AND IMPLEMENTATION IN THE EUROPEAN UNION

Abstract

This study examines the economic implications of digital transformation on public policy formulation and implementation across the European Union (EU). Drawing from a comprehensive dataset provided by the World Bank and the Global Innovation Index of 2023, the research employs decision trees, multilevel regression, and dynamic clustering algorithms to analyze the impact of digitalization on economic efficiency, transparency, and inclusiveness in public sector governance. The study integrates both qualitative and quantitative methods, offering a detailed examination of how digital advancements influence public policy processes, including addressing critical challenges such as data privacy, security, and the digital divide. Key results reveal the importance of robust digital infrastructure and digital literacy in enhancing public governance, alongside the necessity of stringent data protection frameworks to
reduce economic disparities within the EU. The findings provide policymakers with actionable insights and strategic recommendations for leveraging digital technologies to create a more economically equitable and responsive public sector. This research offers valuable contributions to the discourse on digital policy-making and economic development within the EU, highlighting the dual challenges and opportunities presented by digital transformation.