Eduardo Navarro (pictured), Telefonica’s newly-appointed chief commercial digital officer, has talked up the central importance of digital technology in Europe’s future, in a Brussels speech billed as “a wake-up call”.

Navarro was speaking to delegates at the EC Innovation Convention shortly after a reorganisation that has seen Telefonica Digital subsumed into its parent.

As part of the changes, Navarro has assumed a new position where he speaks out on the role technology can play in Europe’s economic revival.

“Europe can, and should, be riding high on the next wave of innovation,” he said in today’s speech. “In recent years we have seen much leading technology migrating east and west – away from Europe. But now we are starting to see the region regaining its momentum as new opportunities arise in ICT.”

Navarro went on to argue the case that education can play in developing the right digital skills, assisted by leading European companies. The company announced Open Future, a public-private initiative to encourage young people, startups and entreprenurs.

Yet some observers have decided the recent restructuring shows a lack of commitment to the digital cause, while others suggest that Telefonica Digital was not exerting sufficient influence on the wider company group with its digital message, hence the changes.

The company itself naturally argues the move pushes digital technology more firmly into all its activities.

On a standalone basis, Telefonica Digital was successful. Its parent said the unit duplicated its value and “achieved incremental revenue to reach a growth of nearly 20 per cent”.

Yet the future of Matthew Key – the head of Telefonica Digital and the man behind its success – appears unclear. Following the reorganisation, he is reduced to a director’s role at Telefonica UK.