Europe needs more investments in cybersecurity
Published: 26/03/2025
The increasing use of cyber technologies requires simultaneous efforts to strengthen cybersecurity. Both the EU and individual Member States have been increasing investments in this area over the past few years. The current Multiannual Financial Framework (2021–2027) allocates approximately EUR 2,9 billion for cybersecurity from EU funds, marking a nearly 200% increase compared to the previous framework (2014–2020). A comparison between the USA and the EU illustrates the scale of the challenge: not only does the US spend more on cybersecurity (approximately 13 bn USD by civilian agencies, not including military spending), but also North American companies spend more than twice as much on cybersecurity as their European counterparts. Hence it is imperative to reconsider the amount of funds for cybersecurity and its allocation within the European Union, particularly those distributed through EU funding mechanisms. These are the conclusions of the PEI policy paper “Methods of Systemic Funding for Cybersecurity Investments in the EU.”
Cybersecurity: A challenge for the EU
Current investments in cybersecurity are drawn from several EU programmes and target diverse cyber-related goals and areas. At the beginning of the current Multiannual Financial Framework (2021–2027), total resources for cybersecurity were estimated at around EUR 4 billion—comprising EUR 2 billion from EU funds and EUR 2 billion from Member State budgets. This represents a nearly 200% increase of EU funds from the previous framework (2014–2020), which allocated approximately EUR 1 billion directly to cybersecurity. Despite rising investments, Europe still faced a shortage of up to 500,000 cybersecurity specialists in 2022.
A comparison between the USA and the EU highlights the scale of the challenge. North American companies spend more than twice as much on cybersecurity as European firms (ENISA, 2024). This disparity is not solely due to a larger IT sector in the US but also to higher spending intensity—6.7% of total expenditures in North America, compared to 5.6% in the EU.
“Cybersecurity investments, including public expenditure, are vital to enhancing resilience, mitigating losses from cyberattacks, and attracting private investors. The World Economic Forum, citing Cybersecurity Ventures, projects that global cybercrime costs will rise by 15% annually, reaching USD 10.5 trillion by 2025. Furthermore, public investments in research and development in the defence sector amplify private investment through the crowding-in effect, whereby private investors are more inclined to allocate funds when the public sector demonstrates commitment,” — says Ignacy Święcicki, Head of the Digital Economy Team at PEI.
New means for increasing investment in cybersecurity are crucial
We identify three key actions to strengthen European cybersecurity. First, the creation of a dedicated European fund—sourced from EU funds—aimed at enhancing the capacity of national cybersecurity systems. Alternatively, cybersecurity could be designated as a specific objective within one of the existing or planned programmes, accompanied by a significant increase in funding for this purpose.
Second, the establishment of an investment platform—a fund of funds—specializing in supporting projects and companies operating in the field of cybersecurity (such as European Cybersecurity Investment Platform, ECIP). Finally, the adoption of a target for allocating a specific proportion of funds to cybersecurity-related purposes within the new Multiannual Financial Framework. The European Commission should also be tasked with developing an appropriate methodology for estimating such expenditures. This target could be formalized in an Interinstitutional Agreement and recommended in the conclusions of the EU Council or the European Council beforehand.
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Polski Instytut Ekonomiczny to publiczny think tank ekonomiczny z historią sięgającą 1928 roku. Jego obszary badawcze to przede wszystkim makroekonomia, energetyka i klimat, gospodarka światowa, foresight gospodarczy, gospodarka cyfrowa, zrównoważony rozwój i ekonomia behawioralna. Instytut przygotowuje raporty, analizy i rekomendacje dotyczące kluczowych obszarów gospodarki oraz życia społecznego w Polsce, z uwzględnieniem sytuacji międzynarodowej.
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Category: Digital Economy / Highlighted / Press releases / Report / Reports 2025
