(2)

The EU industry has proven its inbuilt resilience but is being challenged . High inflation, labour shortages, post-COVID supply chains disruptions, rising interest rates, and spikes in energy costs and input prices are weighing on the competitiveness of the EU industry. This is paired with strong, but not always fair, competition on the fragmented global market. The EU has already put forward several initiatives to support its industry, such as the Green Deal Industrial Plan, (40) the Critical Raw Materials Act (41) , the Net Zero Industry Act (42) , the new Temporary Crisis and Transition Framework for State aid ,  (43) and REPowerEU. (44) While these solutions provide fast and targeted support, the EU needs a more structural answer to the investment needs of its industries, safeguarding cohesion and the level playing field in the Single Market and to reduce the EU’s strategic dependencies.

(2)

The EU industry has proven its inbuilt resilience but its competitiveness must also be ensured in the future. High inflation, labour shortages, post-COVID supply chains disruptions, Russia’s war of aggression against Ukraine, rising interest rates, and spikes in energy costs and input prices are weighing on the competitiveness of the EU industry and have highlighted the importance for the Union to secure its open strategic autonomy and reduce its strategic dependence on third countries in various sectors. This is paired with strong, but not always fair, competition on the fragmented global market. The EU has already put forward several initiatives to support its industry, such as the Green Deal Industrial Plan, (40) the Critical Raw Materials Act (41) , the Net Zero Industry Act (42) , the new Temporary Crisis and Transition Framework for State aid (43) , and the Recovery and Resilience Facility  (43a) , as amended by REPowerEU. (44) While these solutions provide fast and targeted support, the EU needs a more structural answer to the investment needs of its industries, safeguarding cohesion , creating quality jobs, and the level playing field in the Single Market , facilitating access to funding and reducing the EU’s strategic dependencies. The adaptation of new, different State aid frameworks has facilitated the potential allocation of substantial volumes of state aid. Under more adverse circumstances, this situation possesses the capacity to undermine the efficacy of the internal market.

(2a)

The Single Market has brought significant economic, social, and political advantages to the entire Union, including its citizens and businesses. While these benefits are widely recognised, it is imperative to continue finding solutions to further harness its untapped societal potential. The Commission communication of 16 March 2023 entitled “The Single Market at 30” paves the long-term strategic direction of the Single Market. The future Single Market must remain adaptable in the face of evolving geopolitical dynamics, technological advancements, and the green and digital transitions, while fostering the resilience of health systems in the face of an ageing population and contributing to enhance the Union’s long-term competitiveness and productivity.

(3)

The uptake and scaling up in the Union of deep and digital technologies , clean technologies, and biotechnologies will be essential to seize the opportunities and meet the objectives of the green and digital transitions, thus promoting the competitiveness of the European industry and its sustainability. Therefore, immediate action is required to support the development or manufacturing in the Union of such technologies, safeguarding and strengthening their value chains thereby reducing the Union’s strategic dependencies, and addressing existing labour and skills shortages in those sectors through trainings and apprenticeships and the creation of attractive, quality jobs accessible to all.

(3)

The uptake and scaling up of digital technologies , net-zero technologies and biotechnologies and life sciences will be essential to reduce the Union’s strategic dependencies, seize the opportunities and meet the objectives of the green and digital transitions, thus securing the sovereignty and strategic autonomy of the Union and promoting the competitiveness of the European industry and its sustainability. Therefore, immediate action is required to support the development or manufacturing in the Union of such technologies, safeguarding and strengthening their supply chains , thereby reducing the Union’s strategic dependencies, and addressing existing labour and skills shortages in the relevant sectors through lifelong learning, trainings and apprenticeships and the creation of attractive, quality jobs accessible to all.

(4)

There is a need to support critical technologies in the following fields: deep and digital technologies, clean technologies, and biotechnologies (including the respective critical raw materials value chains), in particular projects, companies and sectors with a critical role for EU’s competitiveness and resilience and its value chains . By way of example, deep technologies and digital technologies should include microelectronics, high-performance computing, quantum technologies (i.e., computing, communication and sensing technologies), cloud computing, edge computing, and artificial intelligence, cybersecurity technologies, robotics, 5G and advanced connectivity and virtual realities, including actions related to deep and digital technologies for the development of defence and aerospace applications. Clean technologies should include, among others, renewable energy; electricity and heat storage; heat pumps; electricity grid; renewable fuels of non-biological origin; sustainable alternative fuels; electrolysers and fuel cells; carbon capture, utilisation and storage; energy efficiency; hydrogen and its related infratructure; smart energy solutions; technologies vital to sustainability such as water purification and desalination; advanced materials such as nanomaterials, composites and future clean construction materials, and technologies for the sustainable extraction and processing of critical raw materials. Biotechnology should be considered to include technologies such as biomolecules and its applications, pharmaceuticals and medical technologies vital for health security, crop biotechnology, and industrial biotechnology, such as for waste disposal, and biomanufacturing. The Commission may issue guidance to further specify the scope of the technologies in these three fields considered to be critical in accordance with this Regulation, in order to promote a common interpretation of the projects, companies and sectors to be supported under the respective programmes in light of the common strategic objective. Moreover, technologies in any of these three fields which are subjects of an Important Project of Common European Interest (IPCEI) approved by the Commission pursuant to Article 107(3), point (b) TFEU should be deemed to be critical, and individual projects within the scope of such an IPCEI should be eligible for funding, in accordance with the respective programme rules, to the extent that the identified funding gap and the eligible costs have not yet been completely covered.

(4)

There is a need to support critical technologies in the following fields: digital technologies, net-zero technologies, and biotechnologies and life science, including medicinal products on the Union List of Critical Medicinal Products established pursuant to Article 6 of Regulation (EU) 2022/123 of the European Parliament and of the Council  (44a) and their components, and the respective supply chains of those technologies , in particular in projects, companies and sectors with a critical role for EU’s competitiveness and resilience . For reasons of legal clarity and coherence, the definition of digital technologies should be aligned with the definition contained in Decision (EU) 2022/2481 of the European Parliament and of the Council  (44b) and the definition of net-zero technologies is aligned with the definition in Regulation (EU) .../... [Net-Zero Industry Act]. In the absence of a definition of biotechnologies in Union law, this Regulation should take over the OECD definition. Life sciences should include the application of scientific knowledge to fields such as biology, zoology, botany, ecology, physiology, biochemistry, microbiology, pharmacology, agronomy, medicine . Critical medicinal products, including active pharmaceutical ingredients, as listed in the Union List of Critical Medicinal Products, should be covered as well. The Union’s open strategic autonomy and competitiveness cannot be enhanced without strengthening the supply chains in the technology sectors covered by this Regulation. Financial support to projects along the supply chain for the manufacturing of critical technologies therefore also contribute to the STEP objectives. Technologies should be considered critical when they bring an innovative, cutting-edge element with significant economic potential to the Single Market or contribute to the prevention or reduction of Union dependencies. The Commission should adopt a delegated act, at the latest two months after the entry into force of this Regulation, to further specify the scope of the technologies in these three sectors considered to be critical in accordance with this Regulation, in order to promote a common interpretation of the projects, companies and sectors to be supported under the respective programmes in light of the common strategic objective to reduce critical dependencies . When defining strategic dependencies, the Commission should build upon the assessments conducted in recent years. When defining strategic dependencies, the Commission should build upon the assessments conducted in recent years.  (44c) The Commission should review the delegated act in light of the findings of its interim evaluation report drawn up in accordance with this Regulation and adapt it to the then prevailing market conditions. As the Net-Zero Industry Act creates a comprehensive understanding of those European industries that are deemed necessary to reach the climate targets in 2050, Strategic Projects as identified under Regulation (EU) .../... [Net-Zero Industry Act] that comply with the resilience or competitiveness criteria of the Net-Zero Industry Act, in the spirit of the critical aspects of all technology projects under this Regulation, should be considered to fulfill the STEP objectives. The same should apply to Strategic Projects identified under Regulation (EU) .... [Critical Raw Materials Act].

(5)

Strengthening the manufacturing capacity of key technologies in the Union will not be possible without a sizeable skilled workforce. However, labour and skills shortages have increased in all sectors including those considered key for the green and digital transition and endanger the rise of key technologies , also in the context of demographic change . Therefore, it is necessary to boost the activation of more people to the labour market relevant for strategic sectors, in particular through the creation of jobs and apprenticeships for young, disadvantaged persons , in particular, young people not in employment, education or training. Such support will complement a number of other actions aimed at meeting the skills needs stemming from the transition, outlined in the EU Skills Agenda. (45)

(5)

Strengthening the manufacturing capacity of technologies in the relevant sectors identified under this Regulation in the Union will not be possible without a sizeable skilled workforce. However, labour and skills shortages , which have increased in all sectors including those considered key for the green and digital transition , are expected to increase further in light of demographic change and endanger the rise of technologies in the relevant sectors identified under this Regulation . Therefore, it is necessary to boost the activation of more people to the labour market relevant for relevant sectors, in particular through investments in learning and life-long learning, the enhancement of relevant skills, the creation of quality jobs and apprenticeships for young, disadvantaged persons not in employment, education or training. Such support will complement a number of other actions aimed at meeting the skills needs stemming from the transition, outlined in the EU Skills Agenda. (45) Those actions have an important role to play in promoting a mind-set of reskilling and upskilling, boosting the competitiveness of Union undertakings, in particular SMEs, and contributing to the creation of quality jobs with a view to realising the full potential of the green and digital transition in a socially fair, inclusive and just manner.

(6)

The scale of investments needed for the transition require a full mobilisation of funding available under existing EU programmes and funds, inclusive those granting a budgetary guarantee for financing and investment operations and implementation of financial instruments and blending operations . Such funding should be deployed in a more flexible manner, to provide timely and targeted support for critical technologies in strategic sectors. Therefore, a Strategic Technologies for Europe Platform (‘STEP’) should give a structural answer to the Union investment needs by helping to better channel the existing EU funds towards critical investments aimed at supporting the development or manufacturing of critical technologies, while preserving a level playing field in the Single Market, thereby preserving cohesion and aiming at a geographically balanced distribution of projects financed under the STEP in accordance with the respective programme mandates.

(6)

Significant investments will be required over the coming years to strengthen the open strategic autonomy of the Union in a comprehensive way, to preserve its competitiveness in the global market and to achieve the green and digital transitions. Existing EU programmes and funds, including those granting a budgetary guarantee for financing and investment operations and implementation of financial instruments and blending operations , should contribute to addressing those goals. In addition to its full mobilisation, Union funding should be deployed in a more flexible manner, to provide timely and targeted support for technologies in relevant sectors , reinforcing the financing for Union-wide and cross-border projects . Therefore, a Strategic Technologies for Europe Platform (‘STEP’) should help to better channel existing Union funds towards critical investments aimed at supporting the development or manufacturing of technologies in relevant sectors , while preserving a level playing field in the Single Market, thereby preserving cohesion and aiming at a geographically balanced distribution of projects financed under the STEP in accordance with the respective programme mandates. While being open to every Member State, STEP should put specific emphasis on net-zero industry valleys as defined under Regulation (EU) .../... [Net-Zero Industry Act], on projects in territories included in the Territorial just transition plans as referred to in Article 11 of Regulation (EU) 2021/1056, on less developed and transition regions as well as more developed regions in Member States whose average GDP per capita is below the EU average of the EU-27 measured in purchasing power standards (PPS) and calculated on the basis of Union figures for the period 2015-2017.

(7)

The STEP should identify resources which should be implemented within the existing Union programmes and funds, the InvestEU, Horizon Europe, European Defence Fund and Innovation Fund. This should be accompanied by providing additional funding of EUR 10 billion. Of this, EUR 5 billion should be used to increase the endowment of the Innovation Fund (46) and EUR 3 billion to increase the total amount of the EU guarantee available for the EU compartment under the InvestEU Regulation to EUR 7,5 billion, (47) taking into account the relevant provisioning rate. EUR 0.5 billion should be made available to increase the financial envelope under the Horizon Europe Regulation, (48) which should be amended accordingly; and EUR 1.5 billion to the European Defence Fund. (49)

(7)

The STEP should identify available resources within existing Union programmes and funds, namely InvestEU, Horizon Europe, EU4Health, Digital Europe, the European Regional Development Fund (ERDF), the Cohesion Fund, the Just Transition Fund (JTF), the European Social Fund Plus (ESF+), the Recovery and Resilience Facility (RRF), the European Defence Fund , and the Innovation Fund , for projects contributing to the STEP objectives . This should be accompanied by providing additional Union funding of EUR 13 billion. Of this, EUR 5 billion should be used to increase the endowment of the Innovation Fund (46) and EUR 4,2 billion to increase the total amount of the EU guarantee available for the EU compartment under the InvestEU Regulation (47) to EUR 10,5 billion, taking into account the relevant provisioning rate. EUR 1,3 billion should be made available to increase the financial envelope under the Horizon Europe Regulation, (48) which should be amended accordingly; and EUR 2,5 billion to the European Defence Fund. (49)

(8)

A Sovereignty Seal should be awarded to projects contributing to the STEP objectives, provided that the project has been assessed and complies with the minimum quality requirements, in particular eligibility, exclusion and award criteria, provided by a call for proposals under Horizon Europe, the Digital Europe programme, (50) the EU4Health programme, (51) the European Defence Fund or the Innovation Fund, and regardless of whether the project has received funding under those instruments. These minimum quality requirements will be established with a view to identify high quality projects. This Seal should be used as a quality label, to help projects attract public and private investments by certifying its contribution to the STEP objectives. Moreover, the Seal will promote better access to EU funding, notably by facilitating cumulative or combined funding from several Union instruments.

(8)

A Sovereignty Seal should be awarded to projects contributing to the STEP objectives, taking into account the contribution of the projects to the strengthening and structuring of local industrial networks and their contribution to jobs, provided that the project has been assessed and complies with the minimum quality requirements, in particular eligibility, exclusion and award criteria, provided by a call for proposals under Horizon Europe, the Digital Europe programme, (50) the EU4Health programme, (51) the European Defence Fund , the Innovation Fund, or the cohesion policy funds , and regardless of whether the project has received funding under those instruments. These minimum quality requirements will be established with a view to identify high quality projects. Strategic projects as identified under Regulation (EU) .../... [Net-Zero Industry Act] that comply with the resilience or competitiveness criteria of the Net-Zero Industry Act are considered to contribute to the objectives of this Regulation, by either reducing or preventing strategic dependencies or bringing an innovative, cutting-edge element to the Single Market. Therefore, these Strategic Projects under the Regulation (EU).../... [Net-Zero Industry Act] should be awarded a Sovereignty Seal. Equally, as all Strategic Projects identified under the Regulation (EU) .../... [Critical Raw Materials Act] aim at fulfilling the objectives of this Platform, and should be awarded a Sovereignty Seal as well. To promote projects that will eventually contribute to the reduction of European strategic dependence from third countries, the Seal should be awarded only to projects managed by legal entities established inside the Union or a third country associated to the relevant programme. In the same spirit, if the project is managed by multiple legal entities, the Seal should only be awarded to the project, if at least one independent legal entity is established in a Member State and at least two other independent legal entities are established in different Member States or associated countries . This Seal should be used as a quality label, to help projects attract public and private investments by certifying its contribution to the STEP objectives. Moreover, the Seal will promote better access to EU funding, notably by facilitating cumulative or combined funding from several Union instruments. Member States should also be encouraged to take into account the Sovereignty Seal when granting financial support through their own programmes.

(9)

To that end, it should be possible to rely on assessments made for the purposes of other Union programmes in accordance with Articles 126 and 127 of Regulation (EU, Euratom) 2018/1046, (52) in order to reduce administrative burden for beneficiaries of Union funds and encourage investment in priority technologies. Provided they comply with the provisions of the RRF Regulation, (53) Member States should consider including actions awarded the Sovereignty Seal when preparing their recovery and resilience plans and when proposing their Recovering and Resilience Plans and when deciding on investment projects to be financed from its share of the Modernisation Fund. The Sovereignty Seal should also be taken into account by the Commission in the context of the procedure provided for in Article 19 of the EIB Statute and of the policy check laid down in Article 23 of the InvestEU Regulation. In addition, the implementing partners should be required to examine projects having been awarded the Sovereignty Seal in case they fall within their geographic and activity scope in accordance with Article 26(5) of that Regulation. Authorities in charge of programmes falling under STEP should also be encouraged to consider support for strategic projects identified in accordance with the Net Zero Industry and the Critical Raw Materials Acts that are within the scope of Article 2 of the Regulation and for which rules on cumulative funding may apply.

(9)

To that end, it should be possible to rely on assessments made for the purposes of other Union programmes in accordance with Articles 126 and 127 of Regulation (EU, Euratom) 2018/1046 , (52) in order to reduce administrative burden for beneficiaries of Union funds and encourage investment in priority technologies. Provided they comply with the provisions of the RRF Regulation, (53) Member States should consider including projects awarded the Sovereignty Seal when revising their recovery and resilience plans and when deciding on investment projects to be financed from their share of the Modernisation Fund. The Sovereignty Seal should also be taken into account by the Commission in the context of the procedure provided for in Article 19 of the EIB Statute and of the policy check laid down in Article 23 of the InvestEU Regulation. In addition, the implementing partners should be required to examine projects having been awarded the Sovereignty Seal in case they fall within their geographic and activity scope in accordance with Article 26(5) of that Regulation. Authorities in charge of programmes falling under STEP should consider to support for strategic projects identified in accordance with Regulation (EU) .../... [ Net Zero Industry Act] and Regulation .../... [ Critical Raw Materials Act] that are within the scope of Article 2 of this Regulation and for which rules on cumulative funding may apply.

(9a)

To ensure open strategic autonomy and enhance the market valorisation of R&I results in critical technologies, the Union must act as a standards-setter as outlined in the Commission communication of 2 February 2022 entitled “An EU Strategy on Standardisation Setting global standards in support of a resilient, green and digital EU single market”. Therefore, projects that include standardisation efforts in their proposal should be favoured in all the Union programmes providing funding under STEP. Moreover, it is imperative that projects under STEP consider standardisation in their implementation, in order to accelerate and scale upthe deployment of a particular technology across the Single Market. Additionally, aligning international standards with European interests can ensure technological leadership and a level playing field globally. The Commission and Member States should undertake specific efforts to support projects under STEP to actively engage in the development of standards and within national, European and, where appropriate, international standardisation.

(9b)

Since trust is crucial element for investments, a governance structure should be put in place to ensure that STEP is implemented in an effective, efficient, fair and transparent manner. To that end, the Commission should set up a STEP Committee composed of experts on the various technologies covered by this Regulation as well as on the Union programmes and funds which provide financial support for the Platform. The STEP Committee should be charged with the awarding and promotion of the Sovereignty Seal and the management of the Sovereignty Portal and take on a coordinating role between the various networks and stakeholders that are relevant to achieve the objectives of the platform. Given that the technologies covered by this Regulation are constantly evolving, an Industrial Advisory Group on Strategic Technologies should be set up to assist the Commission by offering advice on latest technological developments and challenges faced by the sectors concerned. This Group should be composed of representatives of Union industry of the sectors covered by this Regulation. Geographical balance within the Industrial Advisory Group should be taken into account.

(10)

A new publicly available website (the ‘Sovereignty Portal’) should be set up by the Commission to provide information on available support to companies and project promoters seeking funds for STEP investments. To that end, it should display in an accessible and user-friendly manner the funding opportunities for STEP investments available under the EU budget. This should include information about directly managed programmes , such as Horizon Europe, the Digital Europe programme , the EU4Health programme, and the Innovation Fund, and also other programmes such as InvestEU, the RRF , and cohesion policy funds. Moreover, the Sovereignty Portal should help increase the visibility for STEP investments towards investors, by listing the projects that have been awarded a Sovereignty Seal. The Portal should also list the national competent authorities responsible for acting as contact points for the implementation of the STEP at national level.

(10)

A new publicly available website (the ‘Sovereignty Portal’) should be set up by the Commission to provide information on available support for projects contributing to the STEP objectives. To address the needs of companies and project promoters seeking funds for STEP projects under Union funding programmes, the Sovereignty Portal should display in an accessible and user-friendly manner the funding opportunities for STEP investments available under the EU budget. This should include information about the directly managed Union programmes Horizon Europe, Digital Europe, EU4Health , the European Defence Fund and the Innovation Fund, and other Union funding sources, that is InvestEU, the Recovery and Resilience Facility , and cohesion policy funds. In order to increase the usefulness of the Sovereignty Portal for project promoters, the Portal should include a rapid simulator to give guidance on which Union programme or fund an individual project may be eligible for, without disclosing confidential business information and being legally binding. Moreover, the Sovereignty Portal should help increase the visibility for STEP investments towards investors, by listing the projects that have been awarded a Sovereignty Seal. The publication of information as regards projects related to security and defence should be assessed on a case-by-case basis and be limited to projects where the publication is deemed necessary by the project promoter or the Commission. Due attention should be paid to the need to protect confidentiality of security of information in defence matters. The Portal should also list the national competent authorities responsible for acting as contact points for the implementation of the STEP at national level. The Commission should ensure the complementarity of the Portal with similar platforms, including the NZIA Platform, and should avoid red tape and administrative burdens.

(10a)

The Commission should monitor the implementation of the Platform objectives to track progress towards the Union’s policy objectives. The monitoring should be conducted in a manner that is targeted and proportionate to the activities carried out under the Platform to avoid overregulation and administrative burden, in particular for the beneficiaries of funding. In order to ensure accountability to Union citizens, the Commission should report annually to the European Parliament and to the Council on the progress of the implementation of the Platform objectives under each of the programmes and funds, on the overall expenditure of the STEP financed under the respective programmes and funds, and on the performance of the STEP based on the performance indicators provided for by those programmes. Furthermore, information should be provided on the Platform's qualitative and quantitative contribution to cross-border projects and to projects per Member State.

(11)

While the STEP relies on the reprogramming and reinforcement of existing programmes for supporting strategic investments, it is also an important element for testing the feasibility and preparation of new interventions as a step towards a European Sovereignty Fund. The evaluation in 2025 will assess the relevance of the actions undertaken and serve as basis for assessing the need for an upscaling of the support towards strategic sectors.

(11)

While the STEP relies on the reprogramming and reinforcement of existing programmes for supporting strategic investments, and reducing the Union dependencies, it is also an important element for testing the feasibility and preparation of new interventions providing the necessary structural answer to the Union’s investment needs. In particular, it can be considered as a step towards the establishment of a European Sovereignty Fund that could contribute to shaping and strengthening a European industrial policy by providing increased funding to European industry in the Multiannual Financial Framework post 2027 . The interim evaluation in 2025 will assess the relevance of the actions undertaken and provide an update on the state of the dependencies of the Union and the most strategic sectors to strengthen its autonomy in a comprehensive way . In the interim evaluation, the Commission should also assess the feasibility of expanding the Sovereignty Portal to combine all existing publically available websites and provide information on Union programmes and funds under direct, shared and indirect management in one single Portal. It should serve as a basis for assessing the need for an upscaling of the support towards strategic sectors in the post-2027 multiannual financial framework, with a view to better addressing the identified challenges and meeting the policy objectives of the Union in this field .

(12)

Directive 2003/87/EC (54) should be amended to allow for additional financing with a financial envelope for the period 2024-2027 of EUR 5 billion. The Innovation Fund supports investments in innovative low-carbon technologies, which is a scope that is to be covered by the STEP. The increase in volume of the Innovation Fund should therefore allow to provide financing responding to the objective of supporting the development or manufacturing in the Union of critical clean technologies. In line with the objectives of ensuring cohesion and promoting the Single Market, and in order to support the green transition and the development of clean technologies throughout the Union, the additional financial envelope should be made available through calls for proposals open to entities from Member States whose average GDP per capita is below the EU average of the EU-27 measured in purchasing power standards (PPS) and calculated on the basis of Union figures for the period 2015-2017.

(12)

Directive 2003/87/EC (54) should be amended to allow for additional financing with a financial envelope for the period 2024-2027 of EUR 5 billion to be provided from the European Union’s general budget . The Innovation Fund supports investments in innovative low-carbon technologies, which is a scope that is to be covered by the STEP. The increase in volume of the Innovation Fund should therefore allow to provide financing responding to the objective of supporting the development or manufacturing in the Union of net-zero technologies. In line with the objectives of ensuring economic, social and territorial cohesion and promoting the Single Market, and in order to support the green transition and the development of net-zero technologies throughout the Union, the additional financial envelope should be made available through calls for proposals for Strategic Projects as defined in Regulation EU (.../...) [Net-Zero Industry Act], provided they either comply with the resilience or competitiveness criteria in the selection process of strategic projects. Until 31 December 2025, the financial envelope should be available in equal parts to entities from Member States whose average GDP per capita is below the EU average of the EU-27 measured in purchasing power standards (PPS) and calculated on the basis of Union figures for the period 2015-2017 and to entities from all Member States. Technical assistance to Member States with a low level of participation as provided for in the latest revision of the ETS Directive should be maintained throughout those calls for proposals .

(13)

In order to extend support possibilities for investments aimed at strengthening industrial development and reinforcement of value chains in strategic sectors, the scope of support from the ERDF should be extended by providing for new specific objectives under the ERDF, without prejudice to the rules on eligibility of expenditure and climate spending as set out in Regulation (EU) 2021/1060 (55) and Regulation (EU) 2021/1058 (56) . In strategic sectors, it should also be possible to support productive investments in enterprises other than SMEs , which can make a significant contribution to the development of less developed and transition regions, as well as in more developed regions of Member States with a GDP per capita below the EU average. Managing authorities are encouraged to promote the collaboration between large enterprises and local SMEs, supply chains, innovation and technology ecosystems. This would allow reinforcing Europe’s overall capacity to strengthen its position in those sectors through providing access to all Member States for such investments, thus counteracting the risk of increasing disparities.

(13)

In order to extend support possibilities for investments aimed at strengthening industrial development and reinforcement of value chains in strategic sectors, the scope of support from the ERDF should be extended by providing for new specific objectives under the ERDF, without prejudice to the rules on eligibility of expenditure and climate spending as set out in Regulation (EU) 2021/1060 (55) and Regulation (EU) 2021/1058 (56) . In strategic sectors, it should also be possible to support productive investments in enterprises with a focus on SMEs and midcaps and which can make a significant contribution to the development of less developed and transition regions, as well as in more developed regions of Member States with a GDP per capita below the EU average. Managing authorities are encouraged to promote the collaboration between large enterprises and local SMEs, supply chains, innovation and technology ecosystems. This would allow reinforcing Europe’s overall capacity to strengthen its position in those sectors through providing access to all Member States for such investments, thus counteracting the risk of increasing disparities. The resources programmed for these new specific objectives should be limited to a maximum of 20% of the initial allocation of the ERDF in accordance with Regulation (EU) 2021/1058.

(14)

The scope of support of the JTF, laid down in Regulation (EU) 2021/1056, (57) should also be extended to cover investments in clean technologies contributing to the objectives of the STEP by large enterprises, provided that they are compatible with the expected contribution to the transition to climate neutrality as set out in the territorial just transition plans. The support provided for such investments should not require a revision of the territorial just transition plan where that revision would be exclusively linked to the gap analysis justifying the investment from the perspective of job creation.

(14)

The scope of support of the JTF, laid down in Regulation (EU) 2021/1056, (57) should also be extended to cover investments in net-zero technologies and addressing shortages of labour and skills in support of these investments, contributing to the objectives of the STEP by enterprises with focus on SMEs and mid-caps , provided that they are compatible with the expected contribution to the transition to climate neutrality as set out in the territorial just transition plans. In the context of support for enterprises other than SMEs, consideration should also be given to investments contributing to the creation of apprenticeships and jobs or providing education or training for new skills. The support provided for such investments should not require a revision of the territorial just transition plan.

(14a)

Member States should have the possibility to transfer all or part of their provisional allocation from the resources of the BAR to the ERDF or ESF+, provided that they are to support productive investments, which can make a significant contribution to the development of less developed and transition regions, as well as in more developed regions of Member States with a GDP per capita below the EU average, including in those regions and local communities that are most adversely affected by the withdrawal of the United Kingdom from the Union. The investments contributing to the objectives of the STEP to be funded under the ERDF and ESF+ and the BAR can serve similar purposes and have similar content since both aim ultimately to allow reinforcing Europe’s overall capacity to strengthen its position in certain sectors through providing access to Member States for such investments, thus counteracting the risk of increasing disparities and mitigating negative impacts on economic, social and territorial cohesion.

(14b)

Member States should also have the possibility to transfer all or part of their provisional allocation from the resources of the BAR to the JTF, provided that these resources are to support actions that are compliant with approved Territorial Just Transition Plans, including in the just transition regions that are - directly or indirectly - most affected by the withdrawal of the United Kingdom from the Union. Both JTF and the BAR can contribute to the objectives of STEP since both aim to ultimately allow regional economic diversification and reinforce Europe’s overall capacity to strengthen its position in certain sectors through providing access to Member States to investments, thus counteracting the risk of increasing disparities and mitigating negative impacts on economic, social and territorial cohesion.

(16)

In order to help accelerate investments and provide immediate liquidity for investments supporting the STEP objectives under the ERDF, the ESF+ (59) and the JTF, an additional amount of exceptional pre-financing should be provided in the form of a one-off payment with respect to the priorities dedicated to investments supporting the STEP objectives. The additional pre-financing should apply to the whole of the JTF allocation given the need to accelerate its implementation and the strong links of the JTF to support Member States towards the STEP objectives. The rules applying for those amounts of exceptional pre-financing should be consistent with the rules applicable to pre-financing set out in Regulation (EU) 2021/1060. Moreover, to further incentivise the uptake of such investments and ensure its faster implementation, the possibility for an increased EU financing rate of 100% for the STEP priorities should be available. When implementing the new STEP objectives, managing authorities are encouraged to apply certain social criteria or promote social positive outcomes, such as creating apprenticeships and jobs for young disadvantaged persons, in particular young persons not in employment, education or training, applying the social award criteria in the Directives on public procurement when a project is implemented by a body subject to public procurement, and paying the applicable wages as agreed through collective bargaining.

(16)

In order to help accelerate investments and provide immediate liquidity for investments supporting the STEP objectives under the ERDF, the ESF+ (59) and the JTF, an additional amount of exceptional pre-financing should be provided in the form of a one-off payment with respect to the priorities dedicated to investments supporting the STEP objectives. The additional pre-financing should apply to the whole of the JTF allocation given the need to accelerate its implementation and the strong links of the JTF to support Member States towards the STEP objectives. The rules applying for those amounts of exceptional pre-financing should be consistent with the rules applicable to pre-financing set out in Regulation (EU) 2021/1060. Moreover, to further incentivise the uptake of such investments and ensure its faster implementation, the possibility for an increased EU financing rate of up to 100% for the STEP priorities should be available. When implementing the new STEP objectives, managing authorities are encouraged to apply certain social criteria and promote social positive outcomes, such as creating apprenticeships and quality jobs for young disadvantaged persons, in particular young persons not in employment, education or training, applying the social award criteria in the Directives on public procurement when a project is implemented by a body subject to public procurement, and paying the applicable wages as agreed through collective bargaining.

(18)

The regulatory framework for the implementation of the 2014-2020 programmes has been adapted over the past years to provide Member States and regions with additional with additional flexibility in terms of implementation rules and more liquidity to tackle the effects of the COVID-19 pandemic and the war or aggression against Ukraine. These measures , introduced at the end of the programming period, require sufficient time and administrative resources to be fully exploited and implemented; also at a time where Member States will focus resources on revising the 2021-2027 operational programmes linked to the STEP objectives. With a view to alleviate the administrative burden on programme authorities and to prevent possible loss of funds at closure for purely administrative reasons, the deadlines for the administrative closure of the programmes under the 2014-2020 period should be extended in Regulation (EU) No 1303/2013 (61) and Regulation (EU) No 223/2014 (62) . More specifically, the deadline for the submission of that final payment application should be extended by 12 months. Furthermore, the deadline for the submission of the closure documents should also be extended by 12 months. In the context of this amendment, it is appropriate to clarify that distribution of food and material bought until the end of the eligibility period (end-2023) may continue after that date. In order to ensure a sound implementation of the EU budget and respect for the payment ceilings, payments to be made in 2025 should be capped at 1 % of the financial appropriations from resources under the Multiannual Financial Framework per programme. Amounts due exceeding the ceiling of 1 % of programme appropriations per fund for 2025 would not be paid in 2025 nor in subsequent years but only used for the clearance of pre-financing. Unused amounts shall be decommitted in accordance with the general rules for decommitment at closure.

(18)

The regulatory framework for the implementation of the 2014-2020 programmes has been adapted over the past years to provide Member States and regions with additional flexibility in terms of implementation rules and more liquidity to tackle the effects of the COVID-19 pandemic and the war or aggression against Ukraine. These measures require sufficient time and administrative resources to be fully exploited and implemented; also at a time where Member States will focus resources on revising the 2021-2027 operational programmes linked to the STEP objectives. With a view to alleviate the administrative burden on programme authorities and to prevent possible loss of funds at closure for purely administrative reasons, the deadlines for the administrative closure of the programmes under the 2014-2020 period should be extended in Regulation (EU) No 1303/2013 (61) and Regulation (EU) No 223/2014 (62) . More specifically, the deadline for the submission of that final payment application should be extended by 12 months. Furthermore, the deadline for the submission of the closure documents should also be extended by 12 months. Consequently, Member States should be able to submit the final payment application by 30 June 2025 and the documents referred to in Article 138 of Regulation (EU) No 1303/2013 by 15 February 2026, in order to give Member States sufficient time to finalise the process linked to the closure of projects. In the context of this amendment, it is appropriate to clarify that distribution of food and material bought until the end of the eligibility period (end-2023) may continue after that date. In order to ensure a sound implementation of the EU budget and respect for the payment ceilings, payments to be made in 2025 should be capped at 10 % of the financial appropriations from resources under the Multiannual Financial Framework per programme. Amounts due exceeding the ceiling of 10 % of programme appropriations per fund for 2025 would not be paid in 2025 nor in subsequent years but only used for the clearance of pre-financing. Unused amounts shall be decommitted in accordance with the general rules for decommitment at closure. Taking into account the specific challenges of the outermost regions as defined in Article 349 TFEU, specific derogation should be provided as regards the deadline for the final application for an interim payment for the final accounting year and the interim payments in 2025 should be capped at 15%.

(19)

InvestEU is the EU flagship programme to boost investment, especially the green and digital transition, by providing demand-driven financing, including through blending mechanisms, and technical assistance. Such approach contributes to crowd in additional public and private capital. Given the high market demand of InvestEU guarantee, the EU compartment of InvestEU should be reinforced to correspond to the objectives of the STEP. This will, among other things, reinforce InvestEU’s existing possibility to invest in projects forming part of an IPCEI, within the identified critical technology sectors. In addition, Member States are encouraged to contribute to the InvestEU Member State compartment to support financial products in line with the STEP objectives, without prejudice to applicable State aid rules. It should be possible for Member States to include as a measure in their recovery and resilience plans a cash contribution for the purpose of the Member State compartment of InvestEU to support objectives of the STEP. That additional contribution to support objectives of the STEP could reach up to 6% of their recovery and resilience plan’s total financial allocation to the Member State compartment of InvestEU. Additional flexibility and clarifications should also be introduced to better pursue the objectives of the STEP.

(19)

InvestEU is the EU flagship programme to boost investment, especially the green and digital transition, by providing demand-driven financing, including through blending mechanisms, and technical assistance. Such approach contributes to crowd in additional public and private capital. Given the high market demand of InvestEU guarantee, the EU compartment of InvestEU should be reinforced to correspond to the objectives of the STEP. This will, among other things, reinforce InvestEU’s existing possibility to invest in projects forming part of an IPCEI, within the identified relevant technology sectors. To ensure a full absorption of available funds and provided that implementing partners do not have sufficient capacity to absorb the 25 % of the EU guarantee that is earmarked for them, the Commission may exceptionally grant more than 75 % of the EU guarantee to the EIB Group. In this context, the Commission should encourage and assist the implementing partners other than the EIB Group to absorb in full the funding that is available to them. In addition, Member States are encouraged to contribute to the InvestEU Member State compartment to support financial products in line with the STEP objectives, without prejudice to applicable State aid rules. It should be possible for Member States to include as a measure in their recovery and resilience plans a cash contribution for the purpose of the Member State compartment of InvestEU to support objectives of the STEP. That additional contribution to support objectives of the STEP could reach up to 6% of their recovery and resilience plan’s total financial allocation to the Member State compartment of InvestEU. Additional flexibility and clarifications should also be introduced to better pursue the objectives of the STEP. In general, the Commission and all authorities in charge of programmes contributing to the implementation of STEP should be encouraged to ensure consistency, coherence, complementarity and synergy among sources of funding with the STEP objectives.

(20)

Horizon Europe is the EU’s key funding programme for research and innovation, and its European Innovation Council (EIC) provides for support for innovations with potential breakthrough and disruptive nature with scale-up potential that may be too risky for private investors. Additional flexibility should be provided for under Horizon Europe, so that the EIC Accelerator can provide equity-only support to non-bankable SMEs, including start-ups, and non-bankable SMEs and small mid-caps, carrying out innovation in the technologies supported by the STEP and regardless of whether they previously received other types of support from the EIC Accelerator. The implementation of the EIC Fund is currently limited to a maximum investment amount of EUR 15 million except in exceptional cases and cannot accommodate follow-on financing rounds or larger investment amounts. Allowing for equity-only support for non-bankable SMEs and small mid-caps would address the existing market gap with investments needs in the range of EUR 15 to 50 million. Moreover, experience has shown that the amounts committed for the EIC Pilot under Horizon2020 are not fully used. These unused funds should be made available for the purposes of the EIC Accelerator under Horizon Europe. The Horizon Europe Regulation should also be amended to reflect the increased envelope for the European Defence Fund.

(20)

Horizon Europe is the EU’s key funding programme for research and innovation, and its European Innovation Council (EIC) provides for support , in particular for innovations with potential breakthrough and disruptive nature with scale-up potential that may be too risky for private investors. Additional flexibility should be provided for under Horizon Europe, so that the EIC Accelerator can provide equity-only support to non-bankable SMEs, including start-ups, and non-bankable SMEs and small mid-caps, carrying out innovation , in particular to those working on the technologies supported by the STEP , and regardless of whether they previously received other types of support from the EIC Accelerator. In the implementation of the EIC Fund the Commission limited the investments of the Fund to a maximum investment amount of EUR 15 million except in exceptional cases and this limited the Fund from effectively accommodating follow-on financing rounds or larger investment amounts. Allowing for equity-only support for non-bankable SMEs and small mid-caps would address the existing market gap , in particular for investments needs in the range of EUR 15 to 50 million. Moreover, experience has shown that the amounts committed for the EIC Pilot under Horizon2020 are not fully used. In accordance with Article 15(3) of Regulation (EU) 2018/1046, those unused funds should be made available for the purposes of the EIC Accelerator under Horizon Europe. The Horizon Europe Regulation should also be amended to reflect the increased envelope for the European Defence Fund.

(20a)

The EIC plays a pivotal role in offering initial funding to fast growing startups and small mid-caps. With its specialised knowledge, the EIC is ideally positioned to enhance funding opportunities for companies seeking capital for scaling up beyond the initial innovation stage. However, the implementation of the EIC Accelerator so far has shown that the ambitious and transformative nature of the EIC as the investor of reference for breakthrough innovation in Europe through the EIC Fund, has created implementation challenges and legal uncertainty for the implementing entities, in particular regarding the role of the EIC and the SME Executive Agency. Considering the central role of the EIC Fund in the success of STEP, the relevant legislative provisions on the functioning of the EIC should be clarified. In the process of further improving the functioning of the EIC, establishment of an independent Union body pursuant to Article 187 TFEU as the main entity responsible for implementing the EIC should be considered.

(21)

The European Defence Fund is the leading programme for enhancing the competitiveness, innovation, efficiency and technological autonomy of the Union’s defence industry, thereby contributing to the Union’s open strategic autonomy. The development of defence capabilities is crucial, as it underpins the capacity and the autonomy of the European industry to develop defence products and the independence of Member States as the end-users of such products. The additional envelope should therefore be made available to support actions in the field of deep and digital technologies contributing to the development of defence applications.

(21)

The European Defence Fund is the leading programme for enhancing the competitiveness, innovation, efficiency and technological autonomy of the Union’s defence industry, thereby contributing to the Union’s open strategic autonomy. The development of defence capabilities is crucial, as it underpins the capacity and the autonomy of the European industry to develop defence products and the independence of Member States as the end-users of such products. The additional envelope should therefore be made available to support projects in the field of deep and digital technologies contributing to the development of defence applications.

(21a)

To maximise the impact of the loan support available under Regulation (EU) 2021/241 of the European Parliament and of the Council [RRF] in pursuit of the objectives laid down in Article 4 of that Regulation, Member States should be able to request additional funding in the form of loans, drawn from the loan support remaining available under that Regulation after 1 September 2023, with a view to contributing the proceeds of those loans in the form of cash to the Member State compartment of InvestEU to support objectives of the STEP. Member States should be able to request such loan support until 15 December 2023.

(a)

supporting the development or manufacturing throughout the Union, or safeguarding and strengthening the respective value chains , of critical technologies in the following fields :

(a)

supporting the development or manufacturing throughout the Union, or safeguarding and strengthening the respective supply chains as referred to in paragraph 4 of technologies in the following sectors :

(i)

deep and digital technologies

(i)

digital technologies, including multi-country projects as defined in Article 2, point (2) of Decision (EU) 2022/2481 of the European Parliament and of the Council and contributing to the targets and objectives of the Digital Decade Policy Programme 2030 established by that Decision;

(ii)

clean technologies

(ii)

net-zero technologies as defined in Article 3, point (...) of Regulation (EU) .../...[Net-Zero Industry Act];

(iii)

biotechnologies

(iii)

biotechnologies , as defined in the Annex to this Regulation and life science, including medicinal products on the Union List of Critical Medicinal Products and their components;

(b)

addressing shortages of labour and skills critical to all kinds of quality jobs in support of the objective under point (a).

(b)

addressing shortages of labour and skills critical to all kinds of quality jobs in support of the objective set out in point (a) , in particular through lifelong learning and in close cooperation with social partners and education and training initiatives already in place, including the European Net Zero Industry Academies established pursuant to Article 23 of Regulation (EU) .../... [Net-Zero Industry Act];

(ba)

fostering deep-tech innovation, in support of the objective set out in point (a), which has the potential to deliver transformative solutions, rooted in cutting edge science, technology and engineering, including innovation combining advances in the physical, biological and digital spheres.

(a)

a Union guarantee referred to in Article 4(1) of Regulation (EU) 2021/523 with the indicative amount of EUR 7 500 000 000 That guarantee shall be implemented in accordance with Regulation (EU) 2021/523 ;

(a)

a Union guarantee referred to in Article 4(1) of Regulation (EU) 2021/523 with the indicative amount of EUR 10 500 000 000 , which shall be implemented in accordance with that Regulation;

(b)

an amount of EUR 500 000 000 in current prices of the financial envelope referred to in point (i) of Article 12(2)(c) of Regulation (EU) 2021/695 . That amount shall be implemented in accordance with Regulation (EU) 2021/695 ;

(b)

an amount of EUR 1 300 000 000 in current prices of the financial envelope referred to in point (i) of Article 12(2)(c) of Regulation (EU) 2021/695 , which shall be implemented in accordance with that Regulation;

(c)

an amount of EUR 5 000 000 000 in current prices of the financial envelope referred to in the sixth subparagraph of Article 10a(8) of Directive 2003/87/EC . That amount shall be implemented within the Innovation Fund in accordance with the rules of Article 10a(8) of Directive 2003/87/EC and Commission Delegated Regulation [2019/856] .

(c)

an amount of EUR 5 000 000 000 in current prices of the financial envelope referred to in the sixth subparagraph of Article 10a(8) of Directive 2003/87/EC , which shall be implemented within the Innovation Fund in accordance with the rules of Article 10a(8) of Directive 2003/87/EC and Commission Delegated Regulation (EU) 2019/856 .

(d)

An amount of EUR 1 500 000 000 in current prices of the financial envelope refered to in Article 4(1) of Regulation (EU) 2021/697 . That amount shall be implemented in accordance with Regulation (EU) 2021/697 .

(d)

An amount of EUR 2 500 000 000 in current prices of the financial envelope referred to in Article 4(1) of Regulation (EU) 2021/697 , which shall be implemented in accordance with that Regulation.

(a)

receiving support for the action under another Union fund or programme in accordance with the rules applicable to that fund or programme, or

(a)

receiving support for the project under another Union fund or programme in accordance with the rules applicable to that fund or programme, or

(b)

financing the action through cumulative or combined funding with another Union instrument in line with the rules of the applicable basic acts.

(b)

financing the project through cumulative or combined funding with another Union instrument in line with the rules of the applicable basic acts.

(a)

to award and promote the Sovereignty Seal referred to in Article 4(1) and to liaise with managing authorities responsible for calls for proposals and calls for tender to increase the funding opportunities across programmes for projects that have been awarded the Sovereignty Seal, without interfering in the selection procedures;

(b)

to award the Sovereignty Seal to projects funded by the Cohesion policy funds that contribute to the Platform objectives as set out in Article 2 of this Regulation;

(c)

to set up and manage the Sovereignty portal in accordance with Article 6;

(d)

to liaise with other existing structures, especially the Net-Zero Europe Platform established in accordance with Regulation (EU) .../... [Net Zero Industry Act] and the Critical Raw Materials Board established pursuant to Regulation (EU) .../... [Critical Raw Materials Act], national competent authorities designated in accordance with Article 6(4) of this Regulation, implementing partners and the Industrial Advisory Group referred to in paragraph 3 of this Article, with a view to coordinating and exchanging information about the financial needs of, the existing bottlenecks and the best practices for projects across the Union;

(e)

to foster contacts across sectors referred to in Article 2, making particular use of existing industrial alliances, networks and structures, such as the European Institute of Innovation & Technology (EIT) and the Joint Undertakings.

(a)

ongoing and upcoming calls for proposals and calls for tender linked to the Platform objectives under the respective programmes and funds ,

(a)

information about Union programmes and funds within the scope of this Regulation and ongoing and upcoming calls for proposals and calls for tender linked to the Platform objectives under the respective programmes and funds;

(d)

contacts to the national competent authorities designated in accordance with paragraph 4;

(d)

contact details of the national competent authorities designated in accordance with paragraph 4;

(a)

overall expenditure of the STEP financed under the respective programmes;

(a)

overall expenditure of the STEP financed under the respective programmes and funds ;

(ba)

an impact assessment determining how the accumulated projects under STEP contribute to the Union’s strategic objectives on ensuring long-term competitiveness;

(bb)

an analysis of the geographical and technological distribution of the projects that have been awarded the Sovereignty Seal.

(a)

Member States whose average GDP per capita is below the Union average of the EU-27 measured in purchasing power standards (PPS) and calculated on the basis of Union figures for the period 2015-2017; and

(b)

all Member States.

(ix)

supporting investments contributing to the STEP objective referred to in Article 2(1), point (a)(ii) of Regulation .../... [STEP Regulation]

(ix)

supporting investments contributing to the STEP objective referred to in Article 2 of Regulation .../... [STEP Regulation]

(3)

In Article 3, the following paragraph 1a is inserted:

(3)

In Article 3, the following paragraph 1a is inserted:

1a.

The resources under the specific objective referred to in Article 3(1), points (a)(vi) and (b)(ix) shall be programmed under dedicated priorities corresponding to the respective policy objective and shall be limited to a maximum of 20% of the initial allocation of the ERDF.

(e)

when they contribute to the specific objective under PO 1 set out in Article 3(1), first subparagraph, point (a)(vi) or to the specific objective under PO 2 set out in point (b)(ix) of that subparagraph, in less developed and transition regions, as well as more developed regions in Member States whose average GDP per capita is below the EU average of the EU-27 measured in purchasing power standards (PPS) and calculated on the basis of Union figures for the period 2015-2017.

(e)

when they contribute to the specific objective under PO 1 set out in Article 3(1), first subparagraph, point (a)(vi) or to the specific objective under PO 2 set out in point (b)(ix) of that subparagraph, in less developed and transition regions, as well as more developed regions in Member States whose average GDP per capita is below the EU average of the EU-27 measured in purchasing power standards (PPS) and calculated on the basis of Union figures for the period 2015-2017 , while preserving a focus on SMEs and mid-caps .

(6)

In Annex I, Table I, the following row is added under policy objective 1:

(6)

In Annex I, Table I, the following row is added under policy objective 1:

(7)

In Annex I, Table I, the following row is added under policy objective 2:

(7)

In Annex I, Table I, the following row is added under policy objective 2:

(4)

In the Annex I, Table 1, the following rows are added:

(4)

In the Annex I, Table 1, the following rows are added:

(5)

In Annex I, Table 6, the following row is added:

(5)

In Annex I, Table 6, the following row is added:

(-1a)

In Article 2, point (29) is replaced by the following:

(29)

'accounting year', means, for the purposes of Part Three and Part Four, the period from 1 July to 30 June, except for the first accounting year of the programming period, in respect of which it means the period from the start date for eligibility of expenditure until 30 June 2015. The final accounting year shall be from 1 July 2023 to 30 June 2024 ;

‘(29)

'accounting year', means, for the purposes of Part Three and Part Four, the period from 1 July to 30 June, except for the first accounting year of the programming period, in respect of which it means the period from the start date for eligibility of expenditure until 30 June 2015. The final accounting year shall be from 1 July 2024 to 30 June 2025 ;’

(-1b)

In Article 24 the following paragraph is inserted:

(-1c)

In Article 65, paragraph 2 is replaced by the following:

(a)

the following paragraph 6 is added:

(b)

The following paragraph 6a is added:

(2a)

In Article 141, paragraph 1 is replaced by the following:

(aa)

In paragraph 1, the following fourth subparagraph is inserted:

(4a)

In Article 9(1), point (b) is replaced by the following:

(b)

the Member State compartment shall address specific market failures or suboptimal investment situations in one or several regions or Member States to deliver the policy objectives of the contributing funds under shared management or of the additional amount provided by a Member State under the third subparagraph of Article 4(1), in particular to strengthen economic, social and territorial cohesion in the Union by addressing imbalances between its regions.

'(b)

the Member State compartment shall address specific market failures or suboptimal investment situations in one or several regions or Member States to deliver the policy objectives of the contributing funds under shared management or of the additional amount provided by a Member State under the third subparagraph of Article 4(1), in particular to strengthen economic, social and territorial cohesion in the Union by addressing imbalances between its regions. The additional amount provided by a Member State in the form of cash under the fourth subparagraph of Article 4(1) shall be earmarked for projects contributing to the objectives referred to in Article 2 of Regulation .../... [STEP Regulation].

(4b)

In Article 10(3), a new point (h) is inserted:

' (h)

any contribution in the form of cash to the Member State compartment made with the proceeds of Recovery and Resilience Facility loans pursuant to Article 33a of Regulation (EU) 2021/241 of the European Parliament and the Council  (1a) ;

(5a)

In Article 11(1), point (b), a new point is inserted:

‘ (viii)

monitoring the implementation and the consistency with the national recovery and resilience plans of the STEP projects financed with the proceeds of RRF loans. ’

(6)

Article 13(4) is replaced by the following:

(6)

Article 13 is amended as follows:

(a)

paragraph 4 is replaced by the following:

(6b)

paragraph 5 is replaced by the following:

(c)

the following paragraph is inserted:

(d)

in paragraph 7, the second subparagraph is replaced by the following:

(e)

the following paragraph is inserted:

‘(j)

provide advisory support to equity fund managers active in the areas referred to in point (e) of Article 8(1).’

‘(j)

provide advisory support to equity fund managers and other relevant stakeholders active in the areas referred to in point (e) of Article 8(1) , including, regarding the valuation of intangible assets. ’

(e)

up to EUR 7 500 000 000 for objectives referred to in Article 3(2), point (e).

(e)

up to EUR 10 500 000 000 for objectives referred to in Article 3(2), point (e).

(16)

scaling up, deployment and large-scale manufacturing of the critical technologies referred to in Article 2(1), point (a) of Regulation .../... [STEP Regulation], as well as the respective value chain referred to in Article 2(4) of that Regulation.

(16)

development or manufacturing of the technologies referred to in Article 2(1), point (a) of Regulation .../... [STEP Regulation], as well as the respective supply chain referred to in Article 2(2) of that Regulation.

7a.1

Investment mobilised by technology area: i) deep and digital technologies , ii) clean technologies and iii) biotechnologies.

7a.2

Number of enterprises supported by technology area: i) deep and digital technologies, ii) clean technologies and iii) biotechnologies.

(-1)

in Article 7, paragraph 10 is replaced by the following:

(-1a)

in Article 9(1), points (b) and (c) are replaced by the following:

(b)

autonomy;

(c)

ability to take risk;

‘(b)

autonomy , particularly for the implementation of equity support in order to ensure market-conform investment timelines as well as risk-taking as referred to in point (c);

(c)

ability to take more risk than the market standards, particularly by providing patient investment to non-bankable innovations. ’

(b)

in paragraph 2, points (b) and (c) are replaced by the following:

(b)

in paragraph 2, point (c) is replaced by the following:

‘ (b)

EUR 46 628 000 000 for Pillar II 'Global Challenges and European Industrial Competitiveness' for the period 2021 to 2027, of which:

‘(c)

EUR 13 237 000 000 for Pillar III 'Innovative Europe' for the period 2021 to 2027, of which:

(i)

EUR 6 775 000 000 for cluster 'Health';

(i)

EUR 10 052 000 000 for the EIC;

(ii)

EUR 1 350 000 000 for cluster 'Culture, Creativity and Inclusive Society';

(ii)

EUR 459 000 000 for European innovation ecosystems;

(iii)

EUR 1 276 000 000 for cluster ‘Civil Security for Society’;

(iii)

EUR 2 726 000 000 for the EIT;’

(iv)

EUR 13 229 000 000 for cluster 'Digital, Industry and Space';

(v)

EUR 13 229 000 000 for cluster 'Climate, Energy and Mobility';

(vi)

EUR 8 799 000 000 for cluster 'Food, Bioeconomy, Natural Resources, Agriculture and Environment';

(vii)

EUR 1 970 000 000 for the non-nuclear direct actions of the JRC;

(c)

EUR 13 237 000 000 for Pillar III 'Innovative Europe' for the period 2021 to 2027, of which:

(i)

EUR 10 052 000 000 for the EIC;

(ii)

EUR 459 000 000 for European innovation ecosystems;

(iii)

EUR 2 726 000 000 for the EIT;’

(3)

In Article 48 , the following point (d) is added in the first subparagraph :

(3)

Article 48 is amended as follows :

(a)

in paragraph 1, second subparagraph, point (c) is replaced by the following:

(c)

equity-only support to non-bankable SMEs, including start-ups, which have already received a grant-only support, may also be provided.

‘(c)

equity-only support to non-bankable SMEs, including start-ups, carrying out breakthrough and disruptive non-bankable innovation may also be provided;’

(b)

in paragraph 1, second subparagraph, point (d) is added:

(d)

equity-only support required for scale-up to non-bankable SMEs, including start-ups, and non-bankable small mid-caps, including entities which have already received support in line with points (a) to (c), carrying out breakthrough and disruptive non-bankable innovation in the critical technologies referred to in Article 2(1)(a) of Regulation .../... [STEP Regulation], financed under Article 3(b) of that Regulation.

(d)

equity-only support required for scale-up to non-bankable SMEs, including start-ups, and non-bankable small mid-caps, including entities which have already received support in line with points (a) to (c), carrying out breakthrough and disruptive non-bankable innovation in the technologies referred to in Article 2(1)(a) of Regulation .../... [STEP Regulation], financed under Article 3(b) of that Regulation.

(c)

in paragraph 1, the following subparagraph is added:

(d)

paragraph 3 is replaced by the following:

(e)

in paragraph 8, the first subparagraph is replaced by the following:

(f)

in paragraph 11, the first subparagraph is replaced by the following:

(a)

EUR 3 151 000 000 for research actions;

(a)

EUR 3 484 000 000 for research actions;

(b)

EUR 6 302 000 000 for development actions.

(b)

EUR 6 969 000 000 for development actions.

(c)

Paragraph 5 is added:

(b)

Paragraph 5 is added:

(1)

In Article 7, the following paragraph 3 is added:

(1)

In Article 7, the following paragraph 3 is added:

3.

Without prejudice to paragraph 2, Member States may also propose to include in their recovery and resilience plan, as estimated costs, the amount of the cash contribution for the purpose of the Member State compartment pursuant to the relevant provisions of the InvestEU Regulation exclusively for measures supporting investment operations contributing to the STEP objectives referred to in Article 2 of Regulation.../... (71) [STEP Regulation]. Those costs shall not exceed 6 % of the recovery and resilience plan’s total financial allocation, and the relevant measures, as set out in the recovery and resilience plan, shall respect the requirements of this Regulation. This limitation shall not apply to the cash contributions made pursuant to Article 33a. ’

(2a)

A new chapter is added:

□

DNA/RNA: Genomics, pharmacogenomics, gene probes, genetic engineering, DNA/RNA sequencing/synthesis/amplification, gene expression profiling, and use of antisense technology, large-scale DNA synthesis, genome- and gene-editing, gene drive.

□

Proteins and other molecules: Sequencing/synthesis/engineering of proteins and peptides (including large molecule hormones); improved delivery methods for large molecule drugs; proteomics, protein isolation and purification, signalling, identification of cell receptors.

□

Cell and tissue culture and engineering: Cell/tissue culture, tissue engineering (including tissue scaffolds and biomedical engineering), cellular fusion, vaccine/immune stimulants, embryo manipulation, marker assisted breeding technologies, metabolic engineering.

□

Process biotechnology techniques: Fermentation using bioreactors, biorefining, bioprocessing, bioleaching, biopulping, biobleaching, biodesulphurisation, bioremediation, biosensing, biofiltration and phytoremediation, molecular aquaculture.

□

Gene and RNA vectors: Gene therapy, viral vectors.

□

Bioinformatics: Construction of databases on genomes, protein sequences; modelling complex biological processes, including systems biology.

□

Nanobiotechnology: Applies the tools and processes of nano/microfabrication to build devices for studying biosystems and applications in drug delivery, diagnostics, etc.