Digital data exchange within the EU
There are several legislative projects concerning digital data exchange and artificial intelligence (AI) within the EU. The European data strategy aims to create a Europe-wide single market for data. This will strengthen EU’s internal market and its position in the global data-driven economy.
The Finnish Centre for Pensions monitors the development of digital data exchange and its interoperability on a national and international level. We inform the earnings-related pension field and promote joint needs.
Below is a brief description of the central legislative projects that we monitor.
According to the EU Regulations on implementing social security (N 987/2009O 883/2004 and NO 987/2009), the EU Member States must exchange data relating to social security electronically. The electronic exchange of data speeds up the flow of information between social security institutions and improves the implementation of citizens’ social security rights.
The EESSI system has been implemented throughout the earnings-related pension field and covers the information exchange of the pension sector, cross-border collection, personal data and posted workers.
- Using EESSI to exchange information obligates all social security sectors.
- The Finnish Centre for Pensions coordinates the upkeep and development of EESSI within the earnings-related pension field. We also represent the earnings-related pension field in international and national working groups.
- Kela is responsible for the national contact point, through which all incoming and outgoing EESSI data traffic goes between Finland and the other Member States.
- Arek Oy has created joint EESSI functions for all parties operating in the earnings-related pension field.
The Act on the Application of European Union Legislation Concerning the Coordination of Social Security Systems (EESSI Act) regulates the administration and cost distribution in Finland.
In Finland, the implementation of the electronic data exchange is led by the Ministry of Social Affairs and Health and an EESSI Cooperation group acting under its authority. The EESSI Cooperation group includes representatives from the Ministry of Social Affairs and Health, Kela, the Finnish Centre for Pensions, the Finnish Workers’ Compensation Center and the unemployment security sector.
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Single Digital Gateway (SDG) is EU’s Regulation (NO 2018/1724) on a digital gateway, the aim of which is to offer citizens and businesses in the EU area easy access to digital services and information on their rights and obligations in a non-discriminatory way via the portal Your Europe.
The implementation of the SDG Regulation depends on the eIDAS regulation which regulates, among other things, cross-border electronic identification. The eIDAS Regulation and its amending regulation concerns all earnings-related pension operators.
The Finnish Centre for Pensions coordinates the preparations for implementing the earnings-related pension field as far as the joint services are concerned. However, electronic services that are based on the Finnish personal identity code do not work without a national ability to integrate the cross-border eIDAS identifier with the national personal identity code, so the final implementation waits for the realisation of the integration functions.
The integration functions are part of the obligations of the eIDAS amendment regulation and are carried out as part of the entirety and schedule of the implementation of the Regulation.
In Finland, the Ministry of Economic Affairs and Employment in Finland coordinates the implementation of the SDG Regulation (KEHA Centre).
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The eIDAS amending Regulation (NO 1183/2024) that came into force in May 2024 supplements the original Regulation (NO 910/2014) by establishing a legislative framework for the European digital identity (EU eID) and wallet applications (EUDI Wallet).
The ecosystem of the wallets creates cross-border identification solutions relying on trust services and verified proofs of identity and electronic attestations of attributes, as well as digital signatures. In addition, the amending Regulation improves individuals’ private protection according to the principles of self-sovereign identity and expands the obligations from the public sector to the private sector.
EU Member States should implement at least one identity wallet under the Regulation by the end of 2026. The aim is to open public administration and private sector electronic trust services accross borders on EU’s single market and support the development of other European information exchange which is significant for implementing citizens’ rights and obligations.
In Finland, the national implementation is coordinated by the Ministry of Finances, and the Digital and Population Data Services Agency implements Finland’s eIDAS wallet. Finland is also part of an international piloting identity wallet consortium (including POTENTIAL, DC4EU, EWC) which, based on actual cases, will be used to sort out how the wallets can be used, for example, in digital cross-border situations involving identification, social security, payments, driving licenses, work permits, educational credentials and travelling.
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EU’s regulation on AI aims to ensure that AI is used in the single markets of the EU in a safe way, respecting fundamental rights and EU values. A harmonised legal framework for the development and use of AI aims to create a trustworthy framework for utilising artificial intelligence.
The use of AI is regulated based on risk and case-by-case usage according to the extent to which the uptake of an AI system could harm an individual’s health and security and the implementation of their basic rights. The risks are divided into four categories:
- Unacceptable – prohibited target such as social scoring and biometric categorisation systems.
- High risk – allowed if the system meets the regulated strict requirements.
- Limited risk – chatbots and others relating to the transparency obligations of generative AI.
- Minimal risk – no requirements (e.g., video games and industry optimization).
Social security benefits, including pensions, are in the high-risk category. Before implementing an artificial intelligence system, it must be ensured that the system complies with regulations and that any possible risks to an individual’s rights, safety and health have been minimized. High-risk AI systems must be transparent, responsibly planned and supervised.
The AI Regulation came into force on 1 August 2024. The regulations are applied gradually within 6, 12 or 24 months, depending on risk category and purpose of use.
In Finland, the national implementation is coordinated by a working group established by the Ministry of Economic Affairs and Employment of Finland. The working group’s terms of office continues until 30 June 2026.
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The Interoperable Europe Regulation aims to improve the interoperability of the data systems of the public sector in EU’s internal markets on a legal, organisational, semantic and technical level.
The regulation obligates organisations of public administration to make interoperability assessments and to distribute interoperability solutions in new data systems which have cross-border effects on EU’s internal markets. The regulation also allows for a construction of test environments, which are used to increase the understanding of the obstacles and possibilities of interoperability solutions.
The Interoperable Europe Act is an EU Regulation that came into force on 11 April 2024. It is applied gradually as of 12 July 2024 and will be in full force from 12 January 2025.
The Commission and the Interoperable Europe Board (representing the Member States) confirm the governance structure, implementing regulations and instructions. The Interoperable Europe Board functions as the strategic steering group of EU’s interoperability work.
The Ministry of Finance Finland coordinates the national implementation of the Regulation.
Read more on other sites:
- European data strategy (European Commission)
- System for electronic exchange of information EESSI (Kela)
- EU social security coordination (European Commission)
- The single digital gateway (Eur-Lex)
- Your Europe portal
- Digital Single Market, KEHA Centre (Sdgfinland)
- eIDAS amendment Regulation (EUR-Lex)
- eIDAS Regulation (EUR-Lex)
- Artificial Intelligence Act (EUR-Lex)
- AI Act (European Commission)
- Interoperable Europe Act | EUR-Lex (europa.eu)
