eIDAS regulation: Leading the way for electronic signatures in Europe

The eIDAS Regulation marks a milestone in Europe’s digital evolution and plays a key role in the establishment of electronic signatures. This regulation, which stands for ‘Electronic Identification, Authentication and Trust Services’, has not only standardised digital identification and trust services within the EU, but also provides a legal framework that enables the use of electronic signatures in various forms – from simple to qualified. In this article, we highlight the benefits and practical application of the eIDAS Regulation and provide concrete advice on how organisations can successfully make the transition to electronic signatures. As such, this article provides essential insights for organisations and institutions looking to drive digital transformation in line with the eIDAS Regulation.

What is the eIDAS regulation?

At the heart of the eIDAS Regulation is the idea that digital identifications and signatures should be recognised throughout the EU and be as secure as their physical counterparts. The regulation enables citizens and businesses to confirm their identity digitally and use legally valid electronic signatures. This makes it easier to carry out cross-border electronic transactions and strengthens trust in digital interactions. Another important aspect of the eIDAS Regulation is the introduction of trust services. These services include not only electronic signatures and signature certificates, but also electronic seals, time stamps, delivery services and website authentication. By standardising these services at EU level, the eIDAS Regulation creates a trustworthy environment that is essential for the Digital Single Market. In addition, the eIDAS Regulation is instrumental in promoting digital transformation. By simplifying cross-border electronic transactions and making them more secure, it supports digital integration within the EU. This not only promotes the efficiency and convenience of digital services, but also helps to increase the competitiveness of businesses.

In conclusion, the eIDAS Regulation is a fundamental building block for a trustworthy and efficient digital Europe. It forms the legal basis for secure and reliable electronic transactions and identifications, which are crucial for the realisation of the EU’s digital single market. With its focus on security, trust and interoperability, the eIDAS Regulation paves the way for an advanced and connected digital future in Europe.

What advantages does the eIDAS regulation offer?

The eIDAS Regulation offers companies and organisations a wide range of benefits. This regulation not only enables business processes to be organised more efficiently, but also helps to reduce costs and promote sustainability. The main benefits of the eIDAS Regulation, particularly in the context of electronic signatures, are discussed in detail below.

Increased efficiency through electronic signatures

Organisations benefit significantly from the implementation of electronic signatures, which are standardised and recognised throughout the EU by the eIDAS Regulation. Electronic signatures significantly speed up the process of signing documents as they eliminate the need for physical presence and avoid unnecessary media disruptions. This significantly simplifies and accelerates business processes, especially in transnational activities.

Cost savings

A significant advantage of the eIDAS Regulation is the cost reduction. The use of electronic signatures eliminates expenses for paper, printing, dispatch and storage of documents. Travel costs for physical meetings to sign documents are also minimised. This represents a significant financial relief, especially for organisations that regularly conduct international business.

Fostering sustainability

The eIDAS Regulation makes an important contribution to environmental sustainability. Electronic signatures reduce the need for paper, which in turn reduces the ecological footprint of companies. This environmentally friendly approach reflects the growing awareness of environmental responsibility in the business world and helps companies to achieve their sustainability goals.

Improved security and legal compliance

Electronic signatures, regulated by the eIDAS Regulation, offer a high level of security and, with regard to the qualified electronic signature, are just as legally binding as handwritten signatures. This legal recognition ensures compliance with legal requirements and reduces the risk of legal disputes. The standardised security protocols of the eIDAS Regulation also increase trust in electronic transactions and contribute to a more secure digital business environment.

Cross-border interoperability

Another advantage of the eIDAS Regulation is the seamless cross-border interoperability of electronic identification and signature procedures within the EU. This enables companies to work more efficiently with partners in other EU countries, as the legal validity of electronic signatures is guaranteed throughout the EU. This interoperability facilitates access to new markets and promotes the international expansion of companies.

What does UK eIDAS mean?

The eIDAS Regulation is Regulation (EU) 910/2014 on electronic identification and trust services for electronic transactions in the internal market. Following the UK withdrawal from the EU the eIDAS Regulation was adopted into UK law and amended by The Electronic Identification and Trust Services for Electronic Transactions (Amendment etc.) (EU Exit) Regulations 2019). In addition, the existing UK trust services legislation, The Electronic Identification and Trust Services for Electronic Transactions Regulation 2016 (2016 No.696)) was also amended. Taken together, these regulations are referred to in this guidance as the UK eIDAS Regulations.

If you offer trust services in the EU (rather than the UK), you will need to comply with the EU eIDAS Regulation, including operating under the supervision of a supervisory body from another EU member state. Although the UK eIDAS supervisory body has no EU eIDAS regulatory obligations it continues to work closely with other EU supervisory authorities. For background information on the EU eIDAS Regulation and relevant binding implementing decisions adopted by the European Commission, visit the Commission webpages on trust services and eID.

What types of signature does the eIDAS Regulation classify?

The eIDAS Regulation defines and regulates three types of electronic signatures: simple, advanced and qualified electronic signatures. Each of these signature types has specific requirements and use cases that are suitable for different business processes and legal contexts.

Simple electronic signature (EES)

• Requirements: The simple electronic signature is the most basic form. It is unregulated and does not require any special technical security measures. It can, for example, be a scanned signature or a name sent by e-mail. It cannot replace the written form.
• Use cases: This type of signature is often used for everyday business transactions where there are no legal requirements. Examples include internal documents and approval processes, non-binding correspondence or acknowledgements of receipt.

Advanced electronic signature (AES)

• Requirements: An advanced electronic signature must be clearly attributable to the signatory and make any subsequent changes to the document recognisable. It must be created using means that are under the signatory’s sole control.
• Use cases: This type of signature is suitable for documents that have a higher legal liability risk but are not subject to the written form.

Qualified electronic signature (QES)

• Requirements: The qualified electronic signature is the most secure and legally binding form. It requires the use of a qualified certificate and the unique identification of the signatory, e.g. by means of eID or Video-Ident. The certificate must be issued by a recognised trust service provider in accordance with the Trust Services Act.
• Use cases: This signature is used for the most demanding legal and commercial transactions where maximum security and legal recognition are required. It is the only type of signature that is equivalent to the written form and can replace it across the board as long as it is not explicitly excluded by law.

Each signature type of the eIDAS Regulation offers different levels of security and legal bindings designed for specific requirements and use cases. From simple internal documents to highly secure, legally binding transactions, the spectrum of eIDAS signatures covers a broad field and thus enables flexible and secure handling of electronic documents and processes.

How to introduce legally compliant signatures in your organisation in accordance with the eIDAS Regulation?

The transition to digital contract signatures in accordance with the eIDAS Regulation can represent a significant efficiency gain for organisations. To make this transition successful, a step-by-step and systematic approach is recommended. We provide you with a customised guide to support this process:

1. Recording contract types: Start by creating a list of all contract types that are currently still signed manually in your department. This serves as a starting point for digitisation.
2. Prioritise the contracts: Evaluate the contracts listed in terms of their frequency and potential for time and cost savings. The aim is to identify those contracts where the switch to digital signatures will bring the greatest benefit.
3. Determine the level of signature: Determine the required formal requirements for each type of contract, whether statutory or contractual. Consultation with a legal expert is advisable in order to correctly fulfil the requirements of the eIDAS Regulation.
4. Digitisation of the first signature processes: Implement digital signatures for the prioritised contracts first. This step allows you to gain practical experience with the new technology and adapt the process accordingly.
5. Maximise savings: Repeat the steps of prioritisation, setting the signature level and implementation until all signature processes in your department are digitised. This will allow you to fully utilise the potential for efficiency and cost savings.
6. Interdepartmental exchange: Share your successes and experiences with other departments and explore joint opportunities to further digitalise signature processes.

By following this step-by-step approach, you can take full advantage of the many benefits of digital signatures in line with the eIDAS regulation. It enables seamless integration into existing workflows and contributes to a comprehensive digital transformation.

eIDAS regulation is the game changer in the digital working world

In conclusion, the eIDAS Regulation is much more than just a legal directive; it is a key catalyst for digital transformation in Europe. By clearly defining and establishing different types of electronic signatures, the eIDAS Regulation has opened the doors for companies to a more efficient, secure and environmentally friendly business world. The scepticism surrounding the implementation of digital signatures is unfounded, as the eIDAS Regulation provides a clear and structured framework that simplifies the introduction and supports organisations on their way into the digital future.