The European Commission is attempting to reconcile the various opposing visions of the European Sovereignty Fund with the ‘Strategic Technologies for Europe Platform’ (STEP): on Tuesday 20 June, the institution proposed a new funding instrument dedicated to clean technologies, deep tech and bio-technology, mobilising funds already available under other programmes. The fears of several Member States that did not want to find new money have thus been taken into account, to the detriment, however, of the European Parliament’s February resolution (see EUROPE 13123/1).
“One of the recurring requests from Member States was to have something that would be available immediately”, explained Commissioner for Budget Johannes Hahn on Tuesday 20 June, when presenting the mid-term review of the multiannual financial framework (see other news).
Scope of action
The Commission wants to support investment in microelectronics, quantum computing, 5G, artificial intelligence and advanced connectivity under the umbrella of “deep tech”.
In terms of clean technologies, it aims to go further than the Act’s shortlist for the ‘net zero emissions’ industry. Renewable energies in the broadest sense – electricity storage, alternative fuels, CO2 capture, hydrogen, but also water purification or desalination – can be supported by STEP.
Finally, the Commission intends to promote biotechnologies such as biomolecules, pharmaceutical products and medical technologies.
Redeployment and additional funds
The long-awaited question of funding has been resolved, in the sense of a redirection of funds, albeit with a few extra billion euros. In practical terms, STEP will enable Member States to redirect funds from the following programmes: - InvestEU; - Innovation Fund; - Horizon Europe; - European Defence Fund; - Cohesion Fund; - Recovery Plan; - Digital Europe; - EU4Health.
For the first four, the Commission has earmarked additional funding of €10 billion, broken down as follows: - 3 billion euros for InvestEU; - 0.5 billion for Horizon Europe; - 5 billion for the Innovation Fund; - 1.5 billion for the European Defence Fund.
The Commission estimates that total new investment in STEP could reach €160 billion.
“Sovereignty stamp”
To make it easier for project leaders to access different types of funding, the Commission is proposing to create a “sovereignty stamp”. Projects that meet the STEP objectives, but have not been able to receive funding in the end, will be able to bear this stamp. This will give them a head start when they apply for support under another programme.
As another means of facilitating access to funding, the Commission wants to create a sovereignty portal as a one-stop shop for project leaders and companies seeking information on the various funds available in STEP.
Reactions
The proposal on the European Sovereignty Fund, now STEP, was eagerly awaited by the EU27, MEPs and the private sector. “We welcome the proposal for STEP and call for sufficient funding. However, it is highly problematic that it is to be financed almost exclusively from existing programs”, reacted German MEP Rasmus Andresen (Greens/EFA).
“Re-industrialising Europe requires resources to match. Remember that the United States has invested 369 billion dollars to bring back its green industry”, added her colleague Valérie Hayer (Renew Europe, French).
The EPP was more moderate and is waiting to analyse the proposal in detail. In any case, the announcement is “a step in the right direction”, according to Jan Olbrycht (EPP, Polish). (Original version in French by Léa Marchal)