What changed

ORDINARY LEGISLATIVE procedure

SHORT JUSTIFICATION

Follow up to the European Parliament legislative resolution on the proposal for a regulation of the European Parliament and of the Council establishing the Strategic Technologies for Europe Platform (‘STEP’) and amending Directive 2003/87/EC, Regulations (EU) 2021/1058, (EU) 2021/1056, (EU) 2021/1057, (EU) No 1303/2013, (EU) No 223/2014, (EU) 2021/1060, (EU) 2021/523, (EU) 2021/695, (EU) 2021/697 and (EU) 2021/241

Context of the legislative proposal

1. Rapporteur: Christian EHLER (EPP / DE), José Manuel FERNANDES (EPP / PT)

The EU with its European internal market has significant assets to attract sustainable investments, and the Union has proven its commitment to build favourable conditions for the development of businesses, in particular those contributing to the green and digital transition. In the light of the challenges that the EU industry has been confronted with over the last years, the European Commission decided to propose a structural tool allowing for a common EU funding for this purpose, and put forward the proposal for a Strategic Technologies for European Platform (‘STEP’).

2. Reference numbers: 2023/0199 (COD) / A9-0290/2023 / P9_TA(2024)0084

The proposed financing relies on the already existing financial instruments, which include, besides instruments such as the Recovery and Resilience Facility (RRF), the Innovation Fund, InvestEU, or Horizon Europe, also the cohesion policy funds. REGI rapporteur for opinion expresses her support for the objectives of the proposal, and for the contribution to them that can be delivered by the cohesion policy. REGI committee confirmed the Rapporteur’s position in its vote on the legislative opinion.

3. Date of adoption of the resolution: 27 February 2024

Choice of the respective instrument

4. Legal basis: Articles 177(1), 164, 173(3), 178(1), 175(3), 192(1) and 182(1) of the Treaty on the Functioning of the European Union

Commission proposed that the support for the strategic sectors from the cohesion policy be delivered via the creation of a new dedicated priority in the European Regional Development Fund (ERDF), the Cohesion Fund (CF), and the Just Transition Fund (JTF).

5. Competent Parliamentary Committee: Committee on Budgets (BUDG), Committee on Industry, Research and Energy (ITRE)

As concerns the support from the ERDF and CF, new dedicated specific objectives, supporting investments contributing to STEP objective, are added. Rapporteur agrees with this approach, as it will allow for the use of the cohesion policy framework for the support of the strategic investments. Nevertheless, the position of the committee is to limit the use of resources for the STEP objectives to a maximum of 20% of the initial ERDF allocation. Considering incentives that accompany the use of the cohesion policy funds for the STEP objectives, this is deemed necessary in order not to undermine other cohesion policy objectives.

6. Commission's position: accepts all amendments.

Rapporteur is also in favour of the use of the JTF resources for the STEP objectives, and proposes, based on a compromise reached in REGI, to extend the scope of the support from the JTF to include not only clean technologies, but also investments to address shortages of skills and labour in the key sectors.

Preserving the territorial, economic and social cohesion

Rapporteur is convinced that new EU financial or economic policy tools should by no means harm the objective of the economic, territorial and social cohesion, in line with the principle ‘do no harm to cohesion’. Cohesion remains a key EU objectives, enshrined in the Treaty.

Rapporteur proposes therefore to add the preservation and strengthening of the cohesion and of the solidarity among the Member States and regions to the STEP objectives, to streamline this concern into the new financial tool.

REGI committee also adopted amendments in this sense in the provisions related to the reporting and the evaluation of the platform, in order to make sure that the cohesion objectives as well as the partnership principle are effectively respected, and that the related monitoring is put in place.

Opening investments to large companies

Commission proposed to allow, in the context of the STEP proposal, for the support of the large companies in the less developed and transition regions, as well as in the more developed regions of the Member States with the per capita GDP below the EU average. Rapporteur recognises the need for the inclusion of also the large companies in the support for industry in the field of critical technologies, as they are often particularly well placed to develop these technologies. Nevertheless, the Rapporteur insists on a particular focus that needs to be put on the support for the SMEs and midcap companies, considering their importance for the EU market and particular needs and challenges they face. REGI opinion reflects this position.

Incentives for the use of the support to STEP objectives

Commission proposal foresees, by way of an incentive for the use of the support for the STEP objectives, an exceptional pre-financing in 2024 at the level of 30% for the STEP priority under the ERDF. Commission also proposed that an exceptional 30% pre-financing be paid under the JTF. Additionally, the co-financing rate for the STEP objectives financed under the ERDF-CF Regulation and the JTF Regulation can be increased up to 100%. Rapporteur supports the introduction of these incentives, and her position was endorsed by the REGI committee.

Extension of the administrative deadlines for the 2014-2020 period and derogation for the outermost regions

Rapporteur considers that in view of the exceptional circumstances and of the increased pressure on the managing authorities in the context of the closure of programmes under the 2014-2020 period, it is necessary to extend the applicable deadlines. Accordingly, she proposed to extend the final accounting year of this period by 12 months, until end of June 2025, as well as the co- financing of up to 100% in the final accounting year of this period.

Rapporteur also took into account particular difficulties faced by the outermost regions and endorsed specific derogations, to alleviate structural challenges they are facing.

AMENDMENTS

The Committee on Regional Development calls on the Committee on Budgets and the Committee on Industry, Research and Energy, as the committees responsible, to take the following into account:

Amendment 1

Proposal for a regulation

Recital 2

Amendment 2

Proposal for a regulation

Recital 2 a (new)

Amendment 3

Proposal for a regulation

Recital 3

Amendment 4

Proposal for a regulation

Recital 4

Amendment 5

Proposal for a regulation

Recital 5

Amendment 6

Proposal for a regulation

Recital 8

Amendment 7

Proposal for a regulation

Recital 9

Amendment 8

Proposal for a regulation

Recital 10

Amendment 9

Proposal for a regulation

Recital 11

Amendment 10

Proposal for a regulation

Recital 13

Amendment 11

Proposal for a regulation

Recital 14

Amendment 12

Proposal for a regulation

Recital 16

Amendment 13

Proposal for a regulation

Recital 18

Amendment 14

Proposal for a regulation

Article 2 – title

Amendment 15

Proposal for a regulation

Article 2 – paragraph 1 – introductory part

Amendment 16

Proposal for a regulation

Article 2 – paragraph 1 – point a – introductory part

Amendment 17

Proposal for a regulation

Article 2 – paragraph 1 – point b a (new)

Amendment 18

Proposal for a regulation

Article 2 – paragraph 2 – point a

Amendment 19

Proposal for a regulation

Article 2 – paragraph 2 – point b

Amendment 20

Proposal for a regulation

Article 2 – paragraph 4

Amendment 21

Proposal for a regulation

Article 2 – paragraph 4 a (new)

Amendment 22

Proposal for a regulation

Article 2 – paragraph 4 b (new)

Amendment 23

Proposal for a regulation

Article 4 – title

Amendment 24

Proposal for a regulation

Article 4 – paragraph 1

Amendment 25

Proposal for a regulation

Article 4 – paragraph 2 – point b

Amendment 26

Proposal for a regulation

Article 4 – paragraph 7

Amendment 27

Proposal for a regulation

Article 5 – paragraph 1

Amendment 28

Proposal for a regulation

Article 5 – paragraph 3

Amendment 29

Proposal for a regulation

Article 6 – paragraph 1 – point d a (new)

Amendment 30

Proposal for a regulation

Article 7 – paragraph 2

Amendment 31

Proposal for a regulation

Article 7 – paragraph 3 – point b a (new)

Amendment 32

Proposal for a regulation

Article 8 – paragraph 2

Amendment 33

Proposal for a regulation

Article 10 – paragraph 1 – point 3

Regulation (EU) 2021/1058

Article 3 – paragraph 1a – subparagraph 1

Amendment 34

Proposal for a regulation

Article 10 – paragraph 1 – point 3

Regulation (EU) 2021/1058

Article 3 – paragraph 1a – subparagraph 2

Amendment 35

Proposal for a regulation

Article 10 – paragraph 1 – point 3

Regulation (EU) 2021/1058

Article 3 – paragraph 1a – subparagraph 7

Amendment 36

Proposal for a regulation

Article 10 – paragraph 1 – point 4

Regulation (EU) 2021/1058

Article 5 – paragraph 2 – point e

Amendment 37

Proposal for a regulation

Article 10 – paragraph 1 – point 5

Regulation (EU) 2021/1058

Article 5 – paragraph 3a

Amendment 38

Proposal for a regulation

Article 11 – paragraph 1 – point 1

Regulation (EU) 2021/1056

Article 2 – paragraph 1

Amendment 39

Proposal for a regulation

Article 11 – paragraph 1 – point 2

Regulation (EU) 2021/1056

Article 8 – paragraph 2 – subparagraph 3 a (new)

Amendment 40

Proposal for a regulation

Article 11 – paragraph 1 – point 3

Regulation (EU) 2021/1056

Article 10 – paragraph 4 – subparagraph 6

Amendment 41

Proposal for a regulation

Article 13 – paragraph 1 – point 1

Regulation (EU) 2021/1060

Article 2 – point 45

Amendment 42

Proposal for a regulation

Article 13 – paragraph 1 – point 4

Regulation (EU) 2021/1060

Annex 1 – table 1

Amendment 43

Proposal for a regulation

Article 13 – paragraph 1 – point 5

Regulation (EU) 2021/1060

Annex 1 – table 6

Amendment 44

Proposal for a regulation

Article 14 – paragraph 1 – point -1 (new)

Regulation (EU) No 1303/2013

Article 2 – point 29

(https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02013R1303-20230301)

Amendment 45

Proposal for a regulation

Article 14 – paragraph 1 – point -1 a (new)

Regulation (EU) No 1303/2013

Article 24 – paragraph 1a (new)

Amendment 46

Proposal for a regulation

Article 14 – paragraph 1 – point 1

Regulation (EU) No 1303/2013

Article 135 – paragraph 6 – subparagraph 2

Amendment 47

Proposal for a regulation

Article 14 – paragraph 1 – point 1 a (new)

Regulation (EU) No 1303/2013

Article 135 – paragraph 6 a (new)

Amendment 48

Proposal for a regulation

Article 14 – paragraph 1 – point 2

Regulation (EU) No 1303/2013

Article 138 – subparagraph 1 a (new)

Amendment 49

Proposal for a regulation

Article 14 – paragraph 1 – point 2 a (new)

Regulation (EU) No 1303/2013

Article 141 – paragraph 1

(https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02013R1303-20230301#tocId198)

Amendment 50

Proposal for a regulation

Article 15 – paragraph 1 – point 3

Regulation (EU) No 223/2014

Article 45 – paragraph 6 – subparagraph 2

PROCEDURE – COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION