The digital transformation is changing the European economy and European society. New technical and 'soft' skills are gaining in importance both in the labour market and as a means for fully participating in society. As a result, traditional roles, content and methods of education are being challenged – education today needs to prepare students for changing tasks and roles both in the labour market and as European citizens. Simultaneously, today's adults need reskilling and upskilling opportunities to enable them to tackle tomorrow's challenges. Rethinking education in the digital age should become a central matter for today's policy-makers for two reasons. First, only education can form a skilled workforce that is prepared for future jobs and a changing labour market. Rethinking education in the digital age therefore constitutes a prerequisite for Europe's future global competitiveness. Second, only education can provide the preconditions for the social inclusion and equal participation of European citizens in a digitalised democracy. Rethinking education in the digital age therefore matters for safeguarding European values such as equality, democracy and the rule of law. This study presents policy options on the basis of a thorough analysis of current strengths and weaknesses, as well as future opportunities and threats, for education in the digital age.