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EU invests over €1 billion in artificial intelligence, cybersecurity and digital skills

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The Commission will allocate €1.3 billion for the deployment of critical technologies that are strategically important for the future of Europe and the continent’s tech sovereignty through the Digital Europe Programme (DIGITAL) work programme for 2025 to 2027 adopted today.

The work programme focuses on the deployment of Artificial Intelligence (AI) and its uptake by businesses and public administration, cloud and data, cyber resilience and digital skills.

More specifically, key priorities under the DIGITAL work programme include:

  • Improving the availability and accessibility of generative AI applications, including in the health and care sectors. Available funding will go towards testing immersive environments, known as ‘virtual worlds’, implementing the AI Act and deploying energy efficient common data spaces. These measures are key to the implementation of the AI Factories initiative to develop generative AI models for businesses and the public sector.
  • Supporting  the European Digital Innovation Hubs (EDIHs). This is a network of hubs that provides companies and the public sector with access to technical expertise and testing of technologies, as well as with advice, training and skills to adopt the latest technologies. It will promote the widespread take-up of AI in private and public organisations across Europe.
  • Building-up the award-winning Destination Earth initiative that is working to build a digital model of Earth to support climate adaptation and disaster risk management. Funding will build a more powerful model that more researchers can access.
  • Boosting cyber resilience. Cybersecurity solutions such as the EU Cybersecurity Reserve will improve the resilience and security of critical infrastructures including hospitals and submarine cables.
  • Developing EU education and training institutions’ capacity in digital skills so they may nurture and attract talent while boosting advanced skills in the European workforce.
  • Facilitating the new EU Digital Identity Wallet architecture and the European Trust Infrastructure, as well as promoting its adoption in Member States.
  • Stimulating the transformation of the public sector by developing efficient, high-quality, interoperable digital public services.

Innovation will also be accelerated by the new Strategic Technologies for Europe Platform (STEP) which awards the STEP Seal quality label to promising projects to improve their opportunity to access public and private funding.

Next Steps

The upcoming DIGITAL calls are expected to be released in April 2025, with additional calls published through the rest of the year. The EU Funding & Tenders Portal can be consulted for information on open calls.

Calls are open to businesses, public administrations, and other entities from EU Member States, EFTA/EEA countries, and countries associated to DIGITAL.

Background

DIGITAL is the first funding programme of the EU entirely focused on bringing digital technology to businesses and citizens. With a budget of €8.1 billion under the present Multiannual Financial Framework 2021-2027, it has been shaping the digital transformation of Europe’s society and economy.

Focussing specifically on deployment, DIGITAL complements investments under other EU programmes, such as Horizon Europe, EU4Health, InvestEU, the Connecting Europe Facility as well as investments under the Recovery and Resilience Facility.

Digital Europe Programme – Work programme 2025-2027

Information on funding under the Digital Europe Programme

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ECCC to finance EUR 390 million in cybersecurity projects under Digital Europe Programme for 2025-2027

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Priorities for investment range from new technologies for cybersecurity, including on AI and post-quantum transition, to actions for improving EU cyber resilience and supporting SMEs.

The adoption of the DEP WP 2025-2027 constitutes a fundamental instrument for the implementation and advancement of the mission of the ECCC. The Centre aims to pool investment in cybersecurity research, technology, and industrial development, and ensure the efficient implementation of projects and initiatives in coordination with the Network of National Coordination Centres (NCCs).

During 2025-2027, the ECCC will continue to finance uptake and deployment actions in cybersecurity by the means of calls for proposals. The programme is structured as follows:

New technologies, AI and post-quantum transition

Dedicated actions will support entities in developing and deploying systems and tools for cybersecurity based on AI (including GenAI based technologies), reliable, secure and resilient AI models and algorithms or build the European testing infrastructure for the post quantum transition.

These enabling technologies should allow more effective creation and analysis of Cyber Threat Intelligence (CTI), automation of large-scale processes, as well as faster and scalable processing of CTI and identification of patterns that allow for rapid detection and decision making.

It will also include actions aimed at improving industrial and market readiness for the cybersecurity requirements for SMEs as specified in relevant EU cybersecurity legislation and  to ensure the development and use of more secure hardware and software products.

Cyber Solidarity Act Implementation

The ECCC will contribute to the creation of the European Cybersecurity Alert System (ECAS) foreseen in the Cyber Solidarity Act, to build and enhance coordinated detection and common situational awareness capabilities at European level. In this regard, a pan-European network of national and cross-border Cyber Hubs will be established. The ECCC will support preparedness activities, part of the Cybersecurity Emergency Mechanism and the mutual assistance mechanisms foreseen in the Cyber Solidarity Act.

Additional actions improving EU cyber resilience

The ECCC will support the integration of relevant cybersecurity requirements deriving from several regulations and directives: NIS 2 directive, Cyber Resilience Act, CSA, DORA, GDPR, AI Act as required. It will contribute to the EC priorities, including to support the cybersecurity of hospitals and healthcare providers in alignment with the Action Plan. In addition, it is envisaged to provide support to improve the resilience and security of the infrastructure critical for global communications and solutions to cover the surveillance and protection of critical undersea infrastructure, such as submarine cables, as well as the detection of malicious activities around them.

ECCC Executive Director Luca Tagliaretti said: “The first ECCC Cybersecurity Work Programme is an important milestone in our establishment as key player in the EU cybersecurity landscape. The funding available will support innovation and deployment of technologies in Europe and contribute to the common goal of building a cyber resilient EU.”

Background

The ECCC implements the ‘Specific Objective 3: Cybersecurity and Trust’ from the DEP Regulation (EU) 2021/694. This is the first DEP Work Programme developed by ECCC following its financial autonomy reached in 2024. The Cybersecurity WP is meant to complement the main DEP WP and was written in close consultation with the ECCC Governing Board and the European Commission.

This document includes inputs from the ECCC strategic agenda and considers all the legal obligations stemming from the ECCC regulation, DEP regulation, Cyber Solidarity act, while supporting the implementation of other key legislative files including the Cyber Resilience Act, the Cybersecurity Act and NIS 2 Directive.

For more information: Digital Europe Cybersecurity Work Programme 2025-2027

Contact for media: communicationeccc [dot] europa [dot] eu (communication[at]eccc[dot]europa[dot]eu)

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EIOPA proposes one-to-one capital requirements for EU insurers’ crypto asset holdings

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The European Insurance and Occupational Pensions Authority (EIOPA) published today its technical advice to the European Commission, recommending that a one-to-one capital requirement be applied consistently to all crypto holdings of EU (re)insurers. EIOPA considers a 100% haircut in the standard formula prudent and appropriate for these assets in view of their inherent risks and high volatility.

Crypto assets are a relatively new assets class in finance and their regulatory treatment is still evolving. While the Capital Requirements Regulation (CRR) and the Markets in Crypto-Assets Regulation (MiCAR) include transitional prudential measures for crypto assets, the EU’s regulatory framework for (re)insurers so far has lacked specific provisions on crypto assets. As a result, (re)insurers currently classify their crypto assets without a consistent approach. This raises concerns about the risk sensitivity of these practices and the level of prudence associated with them.

EIOPA’s empirical analysis of historical crypto asset data suggests that current capital weight options – such as the 80% stress level applied to intangible assets – in fact underestimate the risks associated with crypto exposures.

Policy proposal

To promote a harmonized, prudent and proportionate treatment of crypto assets, EIOPA is proposing the introduction of a blanket 100% capital requirement across all crypto holdings, regardless of their balance sheet treatment or whether the exposure is direct or indirect.

The uniform treatment EIOPA proposes would adequately reflect the high risks associated with crypto investments without creating unnecessary complexity or imposing additional reporting requirements on (re)insurers at a time when their investments in crypto assets are still modest in size.

A possible broader adoption of crypto assets may, however, require a more differentiated approach down the line. The treatment of crypto holdings under Solvency II should therefore be reviewed in the future in light of market developments and regulatory approaches in other sectors.

Read the Technical Advice

Background and next steps

This publication comes in response to the European Commission’s Call for Advice and follows a public consultation on the topic with stakeholders. The Commission will now consider EIOPA’s technical advice in the review of level 2 provisions of Solvency II.

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