FEMISE is proud to launch its latest series of policy briefs, stemming from insightful conference papers presented at the FEMISE annual conference. These briefs are rooted in scientific research and offer actionable political recommendations to address critical challenges in the Euro-Mediterranean region.

The objective if this new series of Policy Briefs is to provide policy makers, international organisers, researchers and stakeholders in the EU-Med region with research-based policy recommendations that: advocate a better EU-Med integration;  promote mobilization of investments towards green transition and sustainable economies; empower young people through innovation and entrepreneurship advocacy; and facilitate a better and more equal integration of youth and women, aiming to create pathways for decent employment.

These Policy Briefs aspires to drive impactful dialogue and action across the EU-Med region.

Context

This brief explores the vital role that digital transformation can play in addressing persistent informality in Southern and Northern Mediterranean economies. Informality continues to shape labour markets, economic performance, and inequality across the region. In many countries, informal activities account for a significant share of GDP, limiting social protection, tax revenues, and economic scalability. The research investigates how digital tools — from mobile payment platforms to digital identification systems — can help integrate informal workers and businesses into formal systems, contributing to sustainable and inclusive development.

Summary

This policy brief examines the transformative potential of digital technologies in reducing informality and advancing progress toward SDGs 8 (Decent Work), 9 (Industry & Innovation), and 10 (Reduced Inequalities) in the Euro-Med region. Drawing on a mixed-methods approach — including cross-country data analysis and case studies from Spain, Morocco, and Egypt — the brief finds that digital tools, particularly mobile technologies, play a significant role in integrating informal actors into formal economies.

However, the brief also highlights the uneven impacts of digitalization, with countries in the Southern Mediterranean facing structural barriers such as weak infrastructure, low digital literacy, and fragmented regulatory environments. The author proposes targeted policy actions to expand digital infrastructure, promote digital financial inclusion, simplify regulatory frameworks, and foster regional cooperation to ensure no one is left behind in the digital transition.