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OPINION (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

REGI-AD-753469

Committee on Regional Development · Rapporteur: Rovana Plumb

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The Committee on Regional Development gives its opinion on the proposed Strategic Technologies for Europe Platform (STEP) regulation, which funds critical technologies through existing EU instruments including cohesion policy funds. It supports the proposal but wants STEP spending under the European Regional Development Fund (ERDF) capped at 20% of the initial allocation, and the Just Transition Fund (JTF) scope extended to skills and labour shortages. It proposes adding the preservation of economic, social and territorial cohesion and solidarity among member states and regions to the STEP objectives, and reporting and evaluation on cohesion. It backs support for large companies in less developed and transition regions and in more developed regions below the EU average GDP per capita, with a focus on small and medium-sized enterprises (SMEs) and mid-caps. It supports exceptional 30% pre-financing in 2024 and co-financing up to 100% for STEP priorities, and proposes extending the 2014-2020 closure deadlines by 12 months and derogations for the outermost regions.

Committee position. The Committee on Regional Development supports the STEP proposal but proposes amendments: a 20% cap on ERDF resources for STEP, extended JTF scope to skills, a cohesion objective, focus on SMEs and mid-caps, 30% pre-financing and 100% co-financing, extended 2014-2020 deadlines and outermost region derogations.

Key points

  1. The opinion supports the STEP objectives and the contribution of cohesion policy, delivered through a new dedicated priority in the ERDF, the Cohesion Fund (CF) and the JTF.
  2. It limits ERDF and CF resources for STEP objectives to a maximum of 20% of the initial ERDF allocation, to avoid undermining other cohesion policy objectives.
  3. It extends JTF support beyond clean technologies to investments addressing shortages of skills and labour in key sectors.
  4. It adds preserving and strengthening economic, social and territorial cohesion and solidarity among member states and regions to the STEP objectives.
  5. It requires reporting and evaluation to cover cohesion objectives, the partnership principle and territorial impacts.
  6. It allows support for large companies in less developed and transition regions and in more developed regions of member states with GDP per capita below the EU average, with a focus on SMEs and mid-caps.
  7. It supports exceptional one-off pre-financing of 30% in 2024 for STEP priorities under the ERDF and the JTF, and co-financing rates up to 100%.
  8. It extends the final accounting year of the 2014-2020 period by 12 months, to 30 June 2025, and allows co-financing up to 100% in that year.
  9. It sets a deadline of 15 February 2026 for submitting closure documents for the 2014-2020 period.
  10. It endorses specific derogations for the outermost regions, including a final interim payment deadline of 30 June 2025 and a 15% interim payment ceiling.
  11. It requires the Sovereignty Seal to be awarded to actions presented by a member state and assessed against minimum quality requirements, and the Sovereignty Portal to be in all official EU languages with an interactive component.
  12. It excludes non-associated third-country entities from support, with a derogation for entities established in the Union or an associated country that provide guarantees approved by the member state.

Who is affected

  • Managing authorities of ERDF, CF and JTF programmes, which must programme STEP resources under dedicated priorities within the 20% cap.
  • Large companies, which may receive support in less developed and transition regions and in more developed regions below the EU average GDP per capita.
  • SMEs and mid-caps, which the opinion says should receive particular focus in STEP support.
  • Outermost regions, which receive specific derogations on payment deadlines and ceilings.
  • Non-associated third-country entities, which are not eligible for support under the regulation.

Figures and deadlines

  • Maximum of 20% of the initial ERDF allocation for STEP objectives.
  • Exceptional pre-financing of 30% in 2024 for STEP priorities under the ERDF and the JTF.
  • Co-financing rates up to 100% for STEP priorities.
  • Final accounting year extended by 12 months, until 30 June 2025.
  • Closure documents to be submitted by 15 February 2026.
  • Interim payments in 2025 capped at 10% of total financial appropriations, REACT-EU excluded.
  • For outermost regions, interim payments in 2025 capped at 15% of total financial appropriations, REACT-EU excluded.
  • For the Fund for European Aid to the Most Deprived, interim payments in 2025 capped at 15% of total financial appropriations.