Rob Wainwright, director of Europol | Jerry Lampen/AFP via Getty Images Encryption a problem in terrorism investigations: Europol

Encryption hampers terrorism investigations and the EU needs laws to deal with it, Europol Director Rob Wainwright told POLITICO.

"Encrypted communication via the Internet and smartphones are a part of the problems investigators face in these instances," Wainwright said. "We have to find a more constructive legislative solution for this problem of encryption."

Police powers to intercept private phone calls are well established and regulated in the EU, but that right does not exist when it comes to encrypted communication.

"We have the same difficulties getting access to that material as any other law enforcement agencies," he added.

The EU is struggling to create laws that can deal with the challenges of Internet-based communications systems, Wainwright said, and countries are filling that void. Examples are the U.K.'s Investigatory Powers Bill and a slew of rules introduced in France in the wake of terror attacks in that country.

"We have to find a better balance than we have now between privacy and security, notwithstanding very important interests of maintaining privacy rights of individuals," Wainwright said.