As much as 160 billion euros of EU money will flow into green technologies and chip production

As part of the revision of the European Union’s multiannual budget, the European Parliament today approved the Strategic Technologies for Europe Platform (STEP) by a large majority during a plenary session, established to strengthen the EU’s competitiveness and resilience in strategic sectors.

As much as 160 billion euros of EU money will flow through STEP into the development of digital technologies such as semiconductors, or chips, as well as ‘green’ technologies with a net zero emissions rate and biotechnology. Given that global competition, particularly from the USA and China, is strengthening every day in technological terms, the EU has been seeking ways for years to jump on the train of digital and green transformation to improve its position in key technological areas such as semiconductor manufacturing. With today’s acceptance of STEP, it seems to be one step closer to that goal – as the name of the platform suggests.

In simple terms, the platform will enable the rationalization of EU programs and funds to direct investments into relevant technological projects. Companies will be able to obtain a ‘sovereignty stamp’, a kind of quality confirmation, which may be denied if they relocate the project outside the EU. This stamp will help them access EU financial resources and attract other investments.

Contribution of Croatia

In discussions about STEP during plenary sessions prior to today’s vote, as well as today, Croatian MEP Karlo Ressler, a member of the EP Budget Committee, participated. Ressler explained to Lider what the budget revision and STEP mean for the development of the European and Croatian economies, but also conversely – how Croatia can contribute to the EU’s goals.

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Karlo Ressler

photo Ratko Mavar

—– In a time of increasingly ruthless geopolitical competition, the Strategic Investment Platform has the potential to strengthen European technological capacities in strategic areas. With a total of 160 billion euros, STEP is expected to stimulate the development of key technological value chains in the digital economy, such as semiconductor manufacturing, as well as industries with net zero emissions and other green technologies. By increasing flexibility and consolidating funds from various financial envelopes, including cohesion funds, InvestEU, Horizon Europe, and the European Defence Fund, it aims to mobilize investments in areas crucial for Europe’s competitiveness – explained Ressler, who emphasized in discussions that even smaller, less developed EU countries have a real opportunity to utilize STEP.

He particularly emphasized that the budget revision for the period from 2021 to 2027 further strengthens the European Defence Fund. This fund is crucial for European cooperation in the development of defence technologies, from which, says Ressler, Croatian companies also benefit directly.

– At the same time, the sector that is becoming increasingly important in economic and geopolitical terms is undoubtedly the semiconductor manufacturing sector and components in their value chain. In this context, the establishment of a Semiconductor Competence Center in collaboration with the Faculty of Electrical Engineering and Computing in Zagreb and the Interuniversity Microelectronics Center from Leuven shows how Croatia can contribute to strategic European development in the most critical sectors and also engage in European value chains – emphasized Ressler, concluding that it is crucial to ‘upgrade human capital and knowledge’.

Involvement of large players

STEP, whose establishment was proposed by the European Commission back in June last year, was approved today with 517 votes in favor, 59 against, and 51 abstentions. Member states are also granted greater flexibility to achieve climate goals within the European Regional Development Fund and the Cohesion Fund, in such a way that ‘surplus projects’ from one fund can be counted towards the goals of another fund.

For member states to develop their capacities and ultimately ensure equal conditions for investment in technologies crucial for the EU’s competitiveness, a co-financing rate of one hundred percent and a pre-financing rate of thirty percent will apply to STEP priorities, and investments will also be possible in large enterprises, starting this year.