Fostering digital transformation has been a critical priority for the new European Commission. For better or worse, the COVID-19 crisis led to an acceleration of digital solutions across all sectors. The pandemic has also revealed that the EU’s data protection and privacy rules might, in fact, be working against its efforts to tackle the virus, calling into question its broader digital strategy. If Europe is going to lead the next decade, it will require massive investment in education, upskilling initiatives, and AI, in addition to redefining its data protection rules. The question is not whether Europe can rise to the challenge, but whether the political will exists to do so.