A five-year research programme, called Project Indect, aims to develop computer programmes which act as "agents" to monitor and process information from web sites, discussion forums, file servers, peer-to-peer networks and even individual computers.
Its main objectives include the "automatic detection of threats and abnormal behaviour or violence".
It involves 10 European nations for the record.
Open Europe believes intelligence gathered by Indect and other such systems could be used by a little-known body, the EU Joint Situation Centre (SitCen), which it claims is "effectively the beginning of an EU secret service". Critics have said it could develop into "Europe's CIA".