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REPORT (COM(2023)0335 – C90209/2023 – 2023/0199(COD))

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

A-9-2023-0290

Committee on Budgets Committee on Industry, Research and Energy · Rapporteur: José Manuel Fernandes, Christian Ehler

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Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's amended version of the Commission proposal sets up the Strategic Technologies for Europe Platform (STEP) to support strategic technologies and their supply chains in digital, net-zero and biotechnologies, including life science. It adds EUR 13 billion in additional funding: EUR 5 billion for the Innovation Fund, EUR 4.2 billion for the InvestEU EU guarantee, EUR 1.3 billion for Horizon Europe and EUR 2.5 billion for the European Defence Fund. It creates a Sovereignty Seal for projects meeting minimum quality requirements, a Sovereignty Portal website, a STEP Committee and an Industrial Advisory Group. It extends the scope of the ERDF, the JTF and the ESF+ to STEP objectives, allows up to 100% co-financing and 30% exceptional pre-financing, and eases closure deadlines for 2014-2020 programmes. It requires the Commission to monitor and report annually, to provide an interim evaluation by 31 December 2025 and a final evaluation by 31 December 2031, and to consider a European Sovereignty Fund.

Committee position. The committees propose to amend the Commission proposal by adding EUR 13 billion in funding, creating a Sovereignty Seal, Portal, STEP Committee and Industrial Advisory Group, extending cohesion funds to STEP objectives, and requiring monitoring and evaluation.

Key points

  1. The Platform supports strategic technologies and their supply chains in digital technologies, net-zero technologies and biotechnologies including life science, and addresses labour and skills shortages.
  2. It also fosters deep-tech innovation with potential for transformative solutions rooted in cutting edge science, technology and engineering.
  3. The Commission must adopt a delegated act within two months of entry into force defining how technologies can meet the criticality conditions.
  4. Additional funding of EUR 13 billion is provided: EUR 5 billion for the Innovation Fund, EUR 4.2 billion for the InvestEU EU guarantee, EUR 1.3 billion for Horizon Europe and EUR 2.5 billion for the European Defence Fund.
  5. A Sovereignty Seal is awarded to projects meeting minimum quality requirements, valid for the project's implementation with a no-relocation commitment, and not to entities in non-associated third countries.
  6. Member States shall consider Sovereignty Seal projects as a priority when revising recovery and resilience plans and when deciding on Modernisation Fund investments.
  7. A STEP Committee is set up to award and promote the Sovereignty Seal, manage the Sovereignty Portal and coordinate with other structures; an Industrial Advisory Group advises the Commission.
  8. The Sovereignty Portal provides information on funding opportunities, includes a rapid simulator for project promoters, and limits information on security and defence projects.
  9. The Commission monitors the Platform, reports annually to Parliament and the Council, and provides an interim evaluation by 31 December 2025 and a final evaluation by 31 December 2031.
  10. The interim evaluation may be accompanied by a proposal for a fully-fledged European Sovereignty Fund, with reasons if the Commission chooses not to present one.
  11. The ERDF, JTF and ESF+ may support STEP objectives with up to 100% co-financing and 30% exceptional pre-financing paid by 31 December 2024; ERDF resources for new objectives are limited to 20% of the initial allocation.
  12. Member States may transfer all or part of their BAR provisional allocation to the ERDF, ESF+ or JTF by 30 September 2024, and closure deadlines for 2014-2020 programmes are extended by 12 months.

Who is affected

  • Companies and project promoters in digital, net-zero and biotechnology sectors, who can receive funding and a Sovereignty Seal.
  • Member States, which may transfer BAR allocations, request RRF loans until 15 December 2023 and consider Seal projects as a priority.
  • SMEs and start-ups, which can receive equity-only support from the EIC Accelerator and guidance from the Sovereignty Portal simulator.
  • Managing authorities of cohesion policy funds, which programme STEP priorities and apply social criteria.
  • The EIB Group and other implementing partners, which receive shares of the EU guarantee and must examine Seal projects.

Figures and deadlines

  • EUR 13 billion additional Union funding for STEP.
  • EUR 5 billion for the Innovation Fund.
  • EUR 4.2 billion to increase the EU guarantee to EUR 10.5 billion.
  • EUR 1.3 billion for Horizon Europe.
  • EUR 2.5 billion for the European Defence Fund.
  • EUR 5 billion financial envelope for the Innovation Fund for 1 January 2024 to 31 December 2027.
  • 30% exceptional pre-financing paid by 31 December 2024.
  • Up to 100% co-financing rates for STEP priorities.

Legal basis: Article 294(2) and Articles 177(1), 164, 173(3), 178(1), 175(3), 192(1), 182(1) of the Treaty on the Functioning of the European Union.