This model cannot be transferred to open networks because of the absence of such relationships between users. As a result, the attractiveness and advantage of electronic commerce and communication cannot be fully exploited. In order to make good use of the commercial opportunities offered by electronic communication via open networks, a secure and trustworthy environment is therefore necessary. Cryptographic technologies are nowadays widely recognised as the essential tool for security and trust in electronic communication. Two important applications of cryptography are digital signatures and encryption.
Encryption can help keeping data and communication confidential.
Several Member States announced their intentions to introduce specific regulation on cryptography and some have already done so. For example, Germany and Italy already moved ahead with digital signature laws. In other Member States internal discussions are taking place, and some tend to refrain, at least for the moment, from any specific regulation at all. Divergent legal and technical approaches would constitute a serious obstacle to the Internal Market and would hinder the development of new economic activities linked to electronic commerce. An EU policy framework for ensuring security and trust in electronic communication and safeguarding the functioning of the Internal Market is therefore urgently needed.