Unlocking Ireland’s Future: Why Ignoring NIS2 Could Be the Costliest Mistake You’ll Make This Decade

Ever wondered if Ireland’s booming digital economy is a double-edged sword? Sure, embracing cloud tech, AI, fintech, and e-commerce is unleashing incredible growth — but at what cost? Cyber threats aren’t just lurking in the shadows anymore; they’re knocking loudly on our virtual doors. With over 41% of Irish goods and services now traded digitally and cyber incidents hitting a record 5,276 last year, the question isn’t “if” a cyberattack will happen — it’s “when,” and more importantly, “how ready are we to deal with it?” The EU’s NIS2 Directive offers a game-changing blueprint to stiffen our cyber defenses and align Ireland with tougher, smarter regulations. But here’s the kicker — we’re behind schedule, risking not only penalties but the very stability of our digital future. So, how do we turn this ticking time bomb into a rock-solid fortress and futureproof our economy? The answer isn’t just legislation; it’s a call to action, urgency, and strategic innovation. The clock is ticking, folks — let’s get serious about cybersecurity or risk getting left in the digital dust. LEARN MORE

Accelerating implementation of the EU directive will help to futureproof the Irish economy, writes Ergo’s Steve Blanche

As Ireland’s economy becomes increasingly digital, so too does its exposure to cyber threats.

From cloud infrastructure and artificial intelligence to fintech and e-commerce, digital technologies are transforming how we work, shop and live.

But while this digital shift unlocks innovation and growth, it also creates new vulnerabilities.

For businesses and public bodies alike, the critical question is no longer if a cyber incident will occur, but when, and how well prepared they are to respond.

Today, around 41 per cent of goods and services in Ireland are transacted digitally.

However, this transformation is occurring in parallel with a significant rise in cyberattacks. In 2023, the National Cyber Security Centre (NCSC) reported 5,276 cyber incidents — the highest number on record.

These attacks are not abstract or distant; they are real and present.

They disrupt core systems, compromise operational continuity, damage public trust and pose systemic risks to the broader economy.

The recent cyber attack on Marks & Spencer is a stark example of how quickly these events can escalate, with ripple effects that reach far beyond a single organisation.

In response to an increasingly complex cyber threat landscape, the European Commission introduced the Network and Information Security Directive 2 (NIS2) — a landmark development in the evolution of EU cybersecurity governance.

Building on the original NIS Directive (NIS1), NIS2 significantly expands the scope, scale and enforceability of cybersecurity obligations across member states.

The directive strengthens regulatory oversight, extends coverage to a broader range of critical sectors and introduces more rigorous requirements for risk management, incident reporting and accountability.

Under NIS2, operators of critical infrastructure and essential services are required to implement robust security measures and report cyber incidents swiftly to national authorities.

Crucially, NIS2 fosters deeper cross-border cooperation by aligning national cybersecurity strategies and enhancing information-sharing between governments, regulators and operators.

Despite its clear benefits, Ireland has yet to transpose NIS2 into national law.

The deadline (October 17, 2024) has passed and Ireland is one of 13 states to receive formal notice from the European Commission for non-compliance.

This delay is more than a legal issue — it is a strategic vulnerability. Without NIS2 in place, Ireland risks falling behind on cybersecurity standards, weakening its defences at a time when the threat environment is intensifying.

Implementing NIS2 requires more than a legislative update; it demands a coordinated national effort to modernise outdated legal frameworks, clarify the roles of operators and authorities and strengthen national cyber capabilities.

The government has signalled its intention to prioritise this work in its summer legislative programme through the National Cyber Security Bill — a welcome and necessary move.

But intent must now translate into action. I n an increasingly interconnected world, digital security is inextricably linked to national security.

Cyberattacks now threaten more than data — they disrupt economies, erode public trust and undermine essential services. Ireland cannot afford to lag behind in implementing the NIS2 Directive, as doing so increases exposure not only to cyber threats but to regulatory penalties and reputational harm.

Accelerating NIS2 implementation is not just about legal compliance.

It’s about futureproofing the Irish economy.

We have the skills and resources to make this a reality.

A recent report from Cyber Ireland and NI Cyber revealed that the all-island cybersecurity sector is among the largest in western Europe, comprising 632 firms and employing 10,600 people.

The path forward is clear: accelerate the transposition of NIS2, support organisations in meeting their obligations and make cybersecurity a strategic pillar of Ireland’s digital future. In today’s interconnected world, cybersecurity is a matter of national security.

The time to act is now.