The money will be spent over four years on educational efforts and ways to protect children from inappropriate content and cyber bullying.
It will also research the ways that children use the net on computers and other devices such as mobile phones.
The broad-based project will build on the Safer Internet Programme the EU began in 2000.
Action plan
"As more and more European children and adolescents use online technologies at home or at school, they, their parents and their teachers need to be informed about the opportunities and risks they face," said Jose Barroso, EC president in a statement.