Restrictions on suppliers, changes in procurement policies and replacement of existing ICT infrastructure affect supply chains.
On Tuesday, SEO Amsterdam Economics reported that a proposed revision of the European Union’s Cybersecurity Act, known as CSA2, could lead to losses ranging from 290 million euros (US$324 million) to 2.2 billion euros (US$2.46 billion dollars) for Dutch businesses in the first year of implementation.
RELATED:
Artificial Intelligence Pioneers Call for International Body to Oversee Cybersecurity Standards
The report, titled The Price of Security and commissioned by the Netherlands China Business Council (NCBC), cautions that the impact could extend beyond businesses directly affected by the restrictions, spreading through supply chains and hitting firms in other sectors of the Dutch economy.
The legislation was proposed by the European Commission at the beginning of this year. The draft introduced “non-technical risks” in the name of cybersecurity and supply chain security.
In particular, the draft would identify “countries posing cybersecurity concerns” and “high-risk suppliers,” and exclude listed countries and suppliers from relevant EU supply chains across 18 sectors, including energy, transport, and information and communications technology.
However, the economic implications of restricting suppliers could be substantial, particularly for businesses that rely on existing information and communications technology infrastructure and have limited short-term alternatives, according to the report.
🚨🇪🇺 BREAKING: Critical software vulnerabilities trigger government website shutdowns across at least SIX European countries, affecting public authorities, hospitals, schools and critical infrastructure.
Two severe security flaws have been discovered in PHP, one of the world’s… pic.twitter.com/Z89nsKbVsK
— Coffe Report (@CoffeReport) October 21, 2026
Companies may also need to modify existing systems, adjust production processes and reorganize supply chains to accommodate replacement products. These changes could generate additional costs beyond the losses estimated in the report.
“Security measures do not exist in an economic vacuum,” NCBC Chairman Jochum Haakma said at a seminar on the report on Monday, adding that restrictions on suppliers, changes in procurement policies and the replacement of existing ICT infrastructure can affect entire supply chains, investment decisions and ultimately the competitiveness of the European economy.
In a letter to parliament on June 19, Dutch Minister of Justice and Security David van Weel said the government was concerned about the European Commission’s proposed power to designate entire countries and suppliers as high-risk, citing potentially far-reaching economic, legal and geopolitical consequences, as well as insufficiently clear and detailed criteria and procedures.
The report notes that restrictions on supplier choice could also yield other adverse consequences, as diminished competitive pressure may result in higher prices, lower quality and reduced innovation.
“Strategic autonomy is an important European ambition, but autonomy should not lead to isolation,” Haakma noted.
teleSUR/ JF
Source: Xinhua
From teleSUR English via This RSS Feed.