under way in other parts of the world44 suggests that the EU needs to do more in terms of investment and to overcome the fragmentation of capacities spread across the EU. The EU has added value to provide, given the sophistication of cybersecurity technology, the large-scale investment required, and the need for solutions that work across the EU. Building on the work of Member States and the Public-Private Partnership, a further step would be to reinforce EU cybersecurity capability through a network of cybersecurity competence centres45 with a European Cybersecurity Research and Competence Centre at its heart. This network and its Centre would stimulate development and deployment of technology in cybersecurity and complement the capacity building efforts in this area at EU and national level. The Commission will launch an impact assessment to examine available options – including the possibility of setting up a Joint Undertaking – with a view to set up this structure in 2018. As a first step and to inform future thinking, the Commission will propose that a pilot phase is launched under Horizon 2020 to help bring national centres together into a network to create a new momentum in cybersecurity competence and technology development. It plans to propose a short-term injection of funding of EUR 50 million to this end. This activity will complement the ongoing implementation of the Public-Private Partnership on Cybersecurity. Pooling and shaping research efforts would be at the core of the network and the Centre's initial focus. To support the development of industrial capabilities, the Centre could act as a capability project manager able to handle multinational projects. This would also give added impetus to innovation and competitiveness of the EU industry on the global scene in the development of next-generation digital technologies including artificial intelligence, quantum computing, blockchain and secure digital identities, as well as in ensuring access to mass data for EU based companies, all key to cybersecurity in the future. The Centre would also draw on the EU's work to scale up High Performance Computing infrastructure: this is essential for analysis of large quantities of data, rapid encryption and decryption of data, checking of identities, simulating cyber-attacks, and analysing video material.46 The network of competence centres could also have capabilities to support industry through testing and simulation to underpin the cybersecurity certification described in section 2.2. Its involvement in the full range of EU cybersecurity activity would ensure a continual updating of its targeting according to need. The Centre would aim to drive high cybersecurity standards not only in technology and cybersecurity systems but also in high-end skills development for professionals, through providing solutions and templates for national efforts to roll out digital skills. To that extent, it would also enhance cybersecurity capabilities at EU level and build on synergies notably with ENISA, CERT-EU, Europol, the possible future Cybersecurity Emergency Response Fund and national CSIRTs. A particular focus of work by the competence network must be the lack of European capacity on assessing the encryption of products and services used by citizens, businesses and governments within the Digital Single Market. Strong encryption is the basis for secure digital identification systems that play a key role in effective cybersecurity47; it also keeps people’s 44 45 46 47 The US will invest 19 billion dollars in cybersecurity in 2017 alone, a 35 % increase compared to 2016. The White House, Office of the Press Secretary: ‘Fact Sheet: Cybersecurity National Action Plan’, 9 February 2016. The network would include existing and future cybersecurity centres set up in the Member States, whose members would typically be public research organisations and laboratories. COM(2012) 45 final and COM(2016) 178 final. The Commission will already launch under Horizon 2020 a new Horizon Prize challenge that will award EUR 4 million to the best innovative solution for seamless online authentication methods. 9