DAILY NEWS

Brussels, 20 June 2023

 

EU budget: Commission proposes Strategic Technologies for Europe Platform (STEP) to support European leadership on critical technologies

Strengthening the competitiveness of the European economy through the green and digital transformations has been the EU's strategic goal over the last years. Despite its inbuilt resilience, EU industry is being challenged by high inflation, labour shortages, supply chain disruptions, rising interest rates, and spikes in energy costs and input prices. This is paired with strong, and not always fair competition on the fragmented global market. The EU has already put forward several initiatives to support its industry. The EU now needs a more structural answer to the investment needs of its industries. This will support the uptake and scaling up of development and manufacturing of strategic technologies in the EU, in the fields of digital and deep tech, clean tech and biotech. It will help companies seize the opportunities, build resilience and meet the objectives of the green and digital transitions, thereby strengthening European sovereignty.

Today, the Commission proposes the Strategic Technologies for Europe Platform (‘STEP'). The STEP will reinforce and leverage existing EU instruments to quickly deploy financial support to the benefit of business investments. The STEP will also allow directing existing funding towards technology fields that are crucial for Europe's leadership, thus contributing to a level playing field for investments throughout the Single Market.

Commission President Ursula von der Leyen said: “The future of the strategic industries should be made in Europe. Today, with STEP, we set the stage to mobilise the necessary funding available across various EU programmes to stimulate investments in critical technologies and make sure companies grow and flourish in the EU. With the existing funding, and an extra €10 billion that we intend to inject, we aim to reach up to €160 billion in investments in the coming years. This will be the precursor to a fully fledged Sovereignty Fund that would be created in the future”.

The STEP will build on existing programmes such as InvestEU, Innovation Fund, Horizon Europe, EU4Health, Digital Europe Programme, European Defence Fund, Recovery and Resilience Facility, and cohesion policy funds.

To boost the investment capacity dedicated specifically to promoting STEP objectives, the Commission further proposes to allocate additional €10 billion to targeted programmes:

  • €3 billion for InvestEU, resulting in €75 billion of investments given the 40% provisioning rate and an average multiplier of 10;
  • €0.5 billion to Horizon Europe, complemented with €2.13 billion of redeployment and use of decommitted amounts, resulting in €13 billion of investments with an average multiplier of 5;
  • €5 billion to the Innovation Fund, resulting in €20 billion of investments given the experience to date under the Innovation Fund;
  • €1.5 billion to the European Defence Fund, which could result in up to €2 billion of investments.

Taken together, the reinforcements of the foregoing four programmes and instruments (InvestEU, European Innovation Council, Innovation Fund, European Defence Fund) can be expected to lead to additional investments in the critical technologies covered by STEP of around EUR 110 billion.

By providing financial incentives in cohesion policy funds in the form of higher pre-financing and co-financing, Member States are encouraged to reprioritise their programmes. Every 5% of reprogramming towards STEP priorities leads to €18.9 billion of resources made available, in addition to €6 billion to be paid out from the Just Transition Fund. The increase of the ceiling under the RRF to use resources for InvestEU products via its national compartments represents an additional flexibility for Member States of €30 billion potentially available for such sovereignty investments.

Altogether, the total estimated amount of new investments through STEP could reach up to €160 billion.

Under the STEP, a Sovereignty Seal and a Sovereignty portal will be created to promote synergies among the existing programmes. The Sovereignty Seal will be awarded to projects contributing to the STEP objectives, provided that the project has been assessed and complies with the minimum quality requirements of a call for proposals under Horizon Europe, the Digital Europe programme, the European Defence Fund, the EU4Health programme, or the Innovation Fund. In addition, a Sovereignty portal will serve as a one-stop-shop to help project promoters and companies seeking funds to find the relevant information about funding opportunities under EU budget programmes for STEP investments.

INTERVENTION FIELDS

STEP will support the development or manufacturing in the Union of critical technologies in the following fields:

  • deep and digital technologies, such as microelectronics, high-performance computing, quantum computing, cloud computing, edge computing, artificial intelligence, cybersecurity, 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, such as 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; 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;
  • biotechnologies, such as biomolecules and its applications, pharmaceuticals, medical technologies and crop biotechnology, and biomanufacturing.

The STEP will also help safeguarding and strengthening the respective value chains, steer investments in related critical raw materials, and address shortages of labour and skills in those sectors.

NEXT STEPS

Once the STEP is formally adopted by the European Parliament and the Council, it will be possible to proceed with a swift implementation. Different timelines may apply, depending on the programmes of the EU budget and their specific characteristics.

While the STEP relies on the reprogramming and reinforcement of existing programmes for supporting strategic investments, it is also an important testing ground for further steps towards a European Sovereignty Fund.

Background

The EU has already put forward several initiatives to support its industry. The Green Deal Industrial Plan is the EU's roadmap to secure the long-term competitiveness of Europe's industry and support the fast transition to climate neutrality. The Net-Zero Industry Act represents its regulatory arm. The act seeks to ensure a simpler and fast-track permitting, promoting European strategic projects, and developing standards to support the scale-up of technologies across the Single Market. It is complemented by the Critical Raw Materials Act, to ensure sufficient access to those materials, like rare earths, which are vital for manufacturing technologies that are key for the twin transition. Another key instrument to support the competitiveness of the European industry is the European Chips Act, which seeks to bolster Europe's resilience in semiconductor technologies and applications, and boost the EU's share of the global microchips market.

Moreover, the Commission has adopted a new Temporary Crisis and Transition Framework for State aid, which gives Member States more flexibility to design and implement support measures in sectors that are key for the transition to climate neutrality. Member States are also currently amending their national recovery and resilience plans to include REPowerEU Chapters, which is a crucial opportunity to provide immediate support to companies and boost their competitiveness, without creating unnecessary strategic dependencies.

The EU also provides support to research and innovatoin, notably through Horizon Europe. And with the European Innovation Agenda, the EU has sought to position Europe at the forefront of the new wave of deep tech innovation and start-ups.

For More Information

Questions and Answers on EU budget: Commission proposes STEP to support European leadership on critical technologies

Strategic Technologies for Europe Platform

Press release on EU budget: Commission proposes to reinforce long-term EU budget to face most urgent challenges

Question and Answers: Commission acts to reinforce long-term EU budget to face most urgent challenges

Quote(s)

STEP is one more example of how our EU budget helps support key EU priorities. It makes best use of existing funds, some of which get strategic reinforcement, to the benefit of business competitiveness in Europe.

Johannes Hahn, Commissioner for Budget and Administration - 20/06/2023

EU budget: Commission puts forward an adjusted package for the next generation of own resources

As committed during the negotiations on the long-term EU budget 2021-2027, the European Commission has today completed its proposal for a next generation of own resources. Today's package includes a new temporary statistical own resource based on company profits. Following the political agreement on the Fit For 55 package, which seeks to ensure EU policies contribute to the climate neutrality of our continent, the Commission  also proposes to adjust the own resources proposals based on the Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (CBAM) compared to the original proposals from December 2021.  

Today's proposal completes and updates the package for the next generation of own resources to the budget put forward back in December 2021. Three sources of revenue were proposed back then: one based on revenues from emissions trading (ETS), one drawing on the resources generated by the proposed EU carbon border adjustment mechanism, and one based on the share of residual profits from multinationals that will be re-allocated to EU Member States under the recent OECD/G20 agreement on a re-allocation of taxing rights (“Pillar One”). This is completed today by a statistical own resource linked to the corporate sector. Once in force, this basket of new own resources will ensure an adequate long-term financing of the budget including the repayment of NextGenerationEU.

European Commission President von der Leyen said: "Today's proposal completes our proposal for stable new own resources to finance the massive NextGenerationEU investments in EU recovery and resilience with four new own resources for the EU budget. Member States now have all the elements to come to a quick agreement and secure the funding for the EU budget."

New temporary statistical based own resource on company profits

The European Parliament, the Council and the Commission jointly agreed in 2020 that an own resource linked to the corporate sector should be proposed. The new statistical own resource based on company profits will be temporary, to be replaced by a possible contribution from Business in Europe: Framework for Income Taxation (BEFIT), once proposed and unanimously agreed by all Member States.  

In the meantime, the own resource put forward today will be calculated as 0.5% of the notional EU company profit base, an indicator calculated by Eurostat on the basis of the national accounts statistics.

It is not a tax on companies, nor does it increase companies' compliance costs. It will be a national contribution paid by Member States based on the gross operating surplus for the sectors of financial and non-financial corporations, which would help to balance the basket of own resources and further diversify the revenue sources of the EU budget.

The statistical own resource on company profits would provide revenues as of 2024 of about €16 billion (2018 prices) per year.

Adjustment of the ETS own resource

Following the increase in the carbon price to about € 80 per tonne of CO2 in 2022 (from €55 in 2021), Member States revenues from the Emissions Trading System (ETS) have doubled in the course of two years to almost €30 billion in 2022. Prices are expected to remain well above €55 per tonne of CO2 in the years to come. As compared to its original proposal of December 2021, the Commission proposes to increase the call rate for the ETS-based own resource to 30% from all revenues generated by EU emissions trading, up from 25% originally proposed. This is expected to generate EU budget revenue of about €7 billion (in 2018 prices) annually from 2024 onwards. This is expected to increase to about €19 billion per year from 2028, when revenues from the new ETS will also enter into the EU budget. At the same time, annual revenues from ETS allocated to Member States could go above €46 billion, thus exceeding by far what was expected when the Fit for 55 proposal was tabled.

Adjustment of the CBAM

In light of the Fit for 55 package, the Commission is also proposing a technical adjustment to the control framework of the Carbon Border Adjustment Mechanism (CBAM), to align its original proposal for an own resource with the adopted text. This source of revenue is expected to generate about €1.5 billion per year as of 2028 for the EU budget.

Next steps

Today's proposal will feed into the negotiations with the Member States in the Council on a next generation of own resources of the budget.

The legislative discussions on the first proposal of December 2021 have made limited progress. While a second proposal for new own resources was originally due by 2024, the Commission decided to put it forward earlier, so that Member States have all the elements to engage in the negotiation in the framework of the agreed roadmap. The Commission calls on the Council to accelerate these negotiations.

Background

The EU budget is currently being financed via four own resources. Introducing new sources of revenue has been a long-standing ambition for EU-policy makers, as it would create the following benefits:

  • Reduce the weight of the Gross National Income (GNI)-based own resource in the EU budget;
  • Reform the own resources system to support EU priorities, by designing new own resources that bring also additional benefits alongside the stream of fiscal income;
  • Introduce more diversified and resilient types of own resources, directly related to EU competences, objectives and priorities.

For More Information

Q&A

Factsheet

Legal acts

Revenue | European Commission (europa.eu)

The next generation of EU own resources (europa.eu)

Own resources (Europa.eu)

Quote(s)

With today’s proposal, the full basket of own resources is on the table. The ball is now in the court of Member States, which should take their responsibility to ensure that the EU budget is financed in the years to come in line with our political priorities.

Johannes Hahn, Commissioner for Budget and Administration - 20/06/2023

EU budget: Commission proposes to reinforce long-term EU budget to face most urgent challenges

The European Union (EU) has faced a series of unprecedented and unexpected challenges since the adoption of the Multiannual Financial Framework (MFF) in 2020. Barely out of one of the deepest global economic crises in more than a century, Russia's brutal invasion of Ukraine had huge humanitarian, economic and budgetary consequences.

Migration has picked up after the pandemic, putting strains on Member States' reception and integration capacities. Under the New Pact on Migration and Asylum, the Union and the Member States will be taking on new responsibilities, which imply additional costs.

The steep acceleration in inflation and interest rates has impacted the Union's budget, amongst others through a sharp increase in NextGenerationEU funding costs.

Following a series of global supply chain disruptions, the EU is working to increase its open strategic autonomy. Significant investment is needed to foster long-term competitiveness in technologies crucial for Europe's leadership.

Within its current bounds, the EU budget has powered a strong EU response, by drawing from its limited built-in flexibilities and through extensive reprogramming. Addressing these multiple challenges has pushed the resources of the EU budget to the point of exhaustion, hindering the EU budget's capacity to address even the most urgent challenges.

Today's proposals seek to provide for targeted reinforcements in a limited number of priority areas, to ensure that the EU budget can continue to deliver on the most essential objectives. The main elements are:

  •  A Ukraine facility, based on grants, loans and guarantees, with an overall capacity of €50 billion in the period 2024-2027 to cater for Ukraine's immediate needs, recovery and modernisation on its path towards the EU.
  •  A reinforcement of the EU budget to address internal and external dimensions of migration as well as needs arising from the global consequences of Russia's war of aggression in Ukraine, and to strengthen partnerships with key third countries with €15 billion.
  • A Strategic Technologies for Europe Platform (STEP) to promote the EU's long-term competitiveness on critical technologies, in the fields of digital and deep tech, clean tech and biotech. For a quick and effective deployment on the ground, this platform builds on and tops up existing instruments including InvestEU, the Innovation Fund, the European Innovation Council (EIC) and the European Defence Fund, while also introducing new flexibilities and incentives for cohesion funding and the Recovery and Resilience Facility.
  • An efficient mechanism to cater for the higher NextGenerationEU funding costs due to the unprecedented surge in interest rates. A new special ‘EURI Instrument' will cover exclusively the costs that come on top of the original projections that were made in 2020.

In addition, the EU administrative capacity will be adjusted to cater for the new tasks that have been decided by the co-legislators since 2020 and to meet inflation-adjusted contractual obligations.

European Commission President von der Leyen said: "Our budget is a key policy tool to respond to the enormous challenges we face collectively. But pressures are increasing. Today we propose a targeted increase in EU spending to provide stable financial support to Ukraine, to finance our action on migration, and to support investments in strategic industries. We are stronger together.”

Areas to be reinforced

1. Long-term support for Ukraine

As part of today's revision, the Commission is proposing a dedicated Facility to support Ukraine up to 2027. This will come in the form of an integrated and flexible instrument with an overall capacity of €50 billion over 2024-2027. The annual amounts will be defined each year depending on Ukraine's needs and the evolving situation. This instrument will ensure stable and predictable funding under a framework that contributes to the sustainability of Ukraine's finances while ensuring the protection of the EU budget.

Underpinned by a Ukraine Plan to be presented by the Government of Ukraine, the Ukraine Facility will support Ukraine's efforts to sustain macro-financial stability, promote recovery as well as modernise the country whilst implementing key reforms on its EU accession track.

Funding will be provided in the form of loans and non-repayable support (grants and guarantees). The actual split between loans and grants will also be decided annually.

The loan support will be financed by borrowing on financial markets and backed by the headroom of the EU budget. The non-repayable support will be financed through the EU annual budget under a new special instrument, the “Ukraine Reserve” with resources over and above the MFF expenditure ceilings.

2. Managing migration, strengthening partnerships and addressing emergencies

The instability in Europe's neighbourhood and the humanitarian needs in third countries are deepening. To continue to be able to address internal and external migration challenges and strengthen the EU partnerships with key third countries, the Commission is proposing the following targeted reinforcements to the EU budget.

  • To provide sufficient funding for managing migration and border control as well as the implementation of the New Pact on Migration, the Commission proposes to provide €2 billion.
  • To allow the Union to respond to heightened economic and geopolitical instabilities, the Commission proposes to increase the ceiling of Heading 6 (Neighbourhood and the world) with additional €10.5 billion.
  • To support the Union's capacity to react to crises and natural disasters the special instrument ´Solidarity and Emergency Aid Reserve´ should be increased with €2.5 billion.

3. Promoting long-term competitiveness via a Strategic Technologies European Platform (STEP)

To support the competitiveness of the EU industry through investments in critical technologies, as announced by President von der Leyen in her State of the Union address of September 2022, the Commission proposes the creation of a new Strategic Technologies for Europe Platform (STEP) with the capacity to generate €160 billion of investments.

STEP will build on existing programmes: InvestEU, Innovation Fund, Horizon Europe, European Defence Fund, Recovery and Resilience Facility, EU4Health, Digital Europe and cohesion funds. In addition, an innovative and dynamic structure will be set up to direct existing funding towards STEP projects and speed up implementation in areas which have been identified as crucial for Europe's leadership.

Across programmes, the Commission proposes a ‘Sovereignty seal' enabling better access to funding across EU-funded instruments.

To boost investments in the development and manufacturing of critical digital and deep tech, clean tech and biotech and in their respective value chains, the Commission further proposes to allocate an additional €10 billion to targeted programmes: €3 billion for InvestEU, €0.5 billion to Horizon Europe, €5 billion to the Innovation Fund and €1.5 for the European Defence Fund. These top-ups, together with the cohesion policy and RRF incentives, have the potential to generate around €160 billion investments by European businesses in projects promoting European sovereignty.

Finally, the Commission proposes the creation of a new ‘One-Stop-Shop' and a dedicated new online Sovereignty Portal to support projects' promoters and EU countries in their STEP investments supported by the different EU funds.

Next steps

The proposed amendments to the budget, as well as the various legislative proposals presented today, will now be taken forward with the European Parliament and EU Member States in the Council.

To make sure the EU has the necessary resources to continue to address the challenges of today and tomorrow, a timely agreement on the package is essential. The Commission counts on the Spanish Presidency of the Council of the European Union to take work in the Council forward in view of a swift agreement immediately after the summer. The negotiations, including the Parliament's consent, must be concluded before the end of the year, given that urgent budgetary constraints will already materialise in 2024.

Background

In 2020, the EU agreed its 2021-2027 long-term budget. Together with the NextGenerationEU recovery instrument, it amounts to €2.018 trillion in current prices, making up the largest stimulus package ever financed by the EU. Since 2021, the budget has been instrumental to help repair the economic and social damage caused by the coronavirus pandemic and aid the transition towards a modern and more sustainable Europe.

As part of the agreement on the budget, the Commission committed to present a review of the functioning of the MFF accompanied, as appropriate, by proposals for its revision. The proposal put forward today delivers of this commitment.

For More Information

Question and Answers: Commission proposes to reinforce long-term EU budget to face most urgent challenges

Questions and Answers on EU budget: Commission proposes STEP to support European leadership on critical technologies

Press release STEP

Strategic Technologies for Europe Platform

Ukraine: Commission proposes to set up a dedicated Facility to support Ukraine's recovery, reconstruction and modernisation

Factsheet – A New Ukraine Facility

Questions and Answers – A new Ukraine Facility

Legislative texts

Quote(s)

The EU budget has been instrumental to the EU’s recovery from the pandemic, while supporting the green and digital transformation and the long-term resilience. The EU budget has also been the monetary expression of the EU’s unconditional support to Ukraine. The multiple challenges over the past years have exhausted its flexibilities and capacity to react to future crises. If we want to be able to continue to rely on it, we need to act now. Today’s proposed revision is a realistic and targeted way forward.

Johannes Hahn, Commissioner for Budget and Administration - 20/06/2023

State aid: Commission approves €7 million Cypriot scheme to support sheep and goat breeders in the context of Russia’s war against Ukraine

The European Commission has approved an approximately €7 million Cypriot scheme to support sheep and goat breeders in the context of Russia’s war against Ukraine. The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies. The new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of the current geopolitical crisis, already amended on 20 July 2022 and on 28 October 2022.

Under the scheme, the aid will consist in limited amounts of aid in the form of direct grants. The purpose of the measure is to support the liquidity needs of sheep and goat breeders, affected by the current geopolitical crisis.

The Commission found that the Cypriot scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework. In particular, the aid (i) will not exceed €250,000 per beneficiary; and (ii) will be granted no later than 31 December 2023.

The Commission concluded that the scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis and Transition Framework. On this basis, the Commission approved the scheme under EU State aid rules. More information on the Temporary Crisis and Transition Framework and other actions taken by the Commission to address the economic impact of Russia’s war against Ukraine and foster the transition towards a net-zero economy can be found here. The non-confidential version of the decision will be made available under the case number SA.107895 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.

(For more information: Arianna Podesta – Tel.: +32 2 298 70 24; Nina Ferreira - Tel.: +32 2 299 81 63; Sara Simonini- Tel.: +32 2 298 33 67)

EU officials meet Cyprus sanctions team

Over the last two days, a delegation of Commission officials responsible for sanctions met with Cypriot officials responsible for sanctions implementation and enforcement, including teams from the Ministries of Finance, Foreign Affairs, Maritime, as well as the Central Bank of Cyprus, the police, customs authorities, and others.  The purpose of the meeting was to focus on sanctions implementation, to exchange views on challenges that arise, to share best practices, and know-how.

During presentations by both sides, the importance of sanctions in helping Ukraine defend itself from illegal Russian aggression was stressed. The Cypriot and Commission officials shared their full commitment to EU sanctions, and to make sanctions implementation and enforcement more effective. During the fruitful exchange between the Cypriot authorities and the Commission delegation, the Cypriot authorities presented the work performed to implement sanctions against Russia. Both sides agreed to continue the dialogue and follow-up on matters of sanctions implementation in the spirit of sincere cooperation.

Commission sanctions officials have been meeting with the sanctions teams of each EU Member State. This is one in a series of bilateral meetings between Commission sanctions officials and Member State sanctions officials announced by Commissioner Mairead McGuinness at the first meeting of the High-Level Expert Group on restrictive measures on 24th October 2022. 

Marie Skłodowska-Curie actions: €15.4 million to bring research closer to education and society

Today, the  Commission opened a new call of €15.4 million for the 2024 and 2025 editions of the European Researchers’ Night and Researchers at Schools activities. These two flagship initiatives, funded under the EU's Marie Skłodowska-Curie actions MSCA and Citizens scheme,  showcase the diversity of European research and innovation and their impact on citizens' daily lives through entertaining and educational activities such as science shows, exhibitions, lab visits, exchanges with researchers, games,  and competitions.

The call will close on 25 October 2023 and is expected to fund around 50 projects implementing these activities in the EU and countries associated to Horizon Europe. The European Researchers’ Night and Researchers at School enhance the connection between science and education and raise interest in research careers, especially amongst young people. 

Vice-President for promoting our European Way of Life, Margaritis Schinas, said: “The European Researchers’ Night and Researchers at Schools stimulate the interest of children, youngsters, citizens and in particular girls and women in research careers and in fields such as science, technology, engineering, and mathematics. They are making science and research accessible to all. I invite organisations involved in science engagement activities to apply.” 

The European Researchers’ Night is the largest science engagement and communication event in the EU and countries associated to Horizon Europe, attracting over 1.5 million visitors every year. The event takes place yearly on the last Friday of September. Researchers at Schools supports activities and direct interaction between researchers and thousands of primary and secondary education pupils throughout the year, especially on key topics such as climate change, sustainable development, or healthier lifestyles. 

More information on the 2023 MSCA and Citizens call and on how to apply is available online. 

(For more information: Sonya Gospodinova – Tel.: +32 2 296 69 53; Flore Boutier - Tel.: +32 2 296 60 43)

An EU approach to enhance economic security

The European Commission and the High Representative today published a Joint Communication on a European Economic Security Strategy. This Joint Communication focuses on minimising risks arising from certain economic flows in the context of increased geopolitical tensions and accelerated technological shifts, while preserving maximum levels of economic openness and dynamism.

The proposed strategy sets out a common framework for achieving economic security by promoting the EU's economic base and competitiveness; protecting against risks; and partnering with the broadest possible range of countries to address shared concerns and interests. The fundamental principles of proportionality and precision will guide measures on economic security.

A more comprehensive approach to risk management

Risks presented by certain economic linkages are evolving quickly in the current geopolitical and technological environment and are increasingly merging with security concerns. This is why the EU must develop a comprehensive approach to commonly identifying, assessing and managing risks to its economic security.

The Strategy proposes to carry out a thorough assessment of risks to economic security in four areas:

  • risks to the resilience of supply chains, including energy security;
  • risks to physical and cyber security of critical infrastructure;
  • risks related to technology security and technology leakage;
  • risks of weaponisation of economic dependencies or economic coercion.

The Strategy proposes a methodology for this risk assessment. It should be carried out by the Commission and Member States in cooperation with the High Representative, where appropriate, and with input from the private sector. It should be a dynamic and continuous process.

The Strategy also sets out how to mitigate identified risks through a three-pronged approach, namely by:

  • promoting the EU's competitiveness, by strengthening the Single Market, supporting a strong and resilient economy, investing in skills and fostering the EU's research, technological and industrial base;
  • protecting the EU's economic security through a range of existing policies and tools, and consideration of new ones to address possible gaps. This would be done in a proportionate and precise way that limits any negative unintended spill-over effects on the European and global economy;
  • partnering with the broadest possible range of partners to strengthen economic security, including through furthering and finalising trade agreements, reinforcing other partnerships, strengthening the international rules-based economic order and multilateral institutions, such as the World Trade Organization, and investing in sustainable development through Global Gateway.

Next steps

The Communication lays the basis for a strategic discussion with EU Member States and the European Parliament to develop a comprehensive approach to protect the Union's economic security. The European Council will consider the strategy during its meeting of 29-30 June 2023.

The Communication lays out the following new actions:

  • develop with Member States a framework for assessing risks affecting the EU's economic security; this includes establishing a list of technologies which are critical to economic security and assess their risks with a view to devising appropriate mitigating measures;
  • engage in a structured dialogue with the private sector to develop a collective understanding of economic security and encourage them to conduct due diligence and risk management in light of economic security concerns;
  • further support EU technological sovereignty and resilience of EU value chains, including by developing critical technologies through STEP;
  • review the Foreign Direct Investment Screening Regulation.
  • explore options to ensure adequate targeted support for research and development of dual-use technologies;
  • fully implement the EU's export control regulation on dual use and make a proposal to ensure its effectiveness and efficiency;
  • examine, together with Member States, what security risks can result from outbound investments and on this basis propose an initiative by the end of the year;
  • propose measures to improve research security ensuring a systematic and rigorous enforcement of the existing tools and identifying and addressing any remaining gaps;
  • explore the targeted use of the Common Foreign and Security Policy (CFSP) instruments to enhance EU economic security including Hybrid and Cyber Diplomacy toolboxes and foreign information manipulation and interference (FIMI) toolbox;
  • instruct the EU Single Intelligence Analysis Capacity (SIAC) to work specifically on the detection of possible threats to EU economic security;
  • ensure that the protection and promotion of EU economic security is fully integrated in European Union's external action and intensify the cooperation with third countries on economic security issues.

Background

Open, rules-based trade have shaped and benefitted the EU since its inception. At the same time, growing geopolitical tensions and greater geostrategic and geoeconomic competition, as well as shocks such as the COVID pandemic and Russia's war of aggression against Ukraine, have highlighted the risks inherent in certain economic dependencies. Such risks – unless properly managed – can challenge the functioning of our societies, our economies, our strategic interests and our ability to act. A comprehensive Strategy – including joint-up action across internal and external policies and a cohesive set of measures at EU and Member State level – is essential for the EU to assess and manage risks while at the same time maintaining our openness and international engagement.

For More Information

European Security Strategy - Communication

European Security Strategy - factsheet

Quote(s)

Global integration and open economies have been a force for good for our businesses, our competitiveness, and our European economy. And that will not change in the future. But we also have to be clear-eyed about a world that has become more contested and geopolitical. This is why the topic of economic security has become a priority for us and for many of our partners. And today, Europe becomes the first major economy to set out a strategy on economic security. It will ensure Europe’s sovereignty, security and prosperity in the years to come.

Ursula von der Leyen, President of the European Commission - 20/06/2023

The EU’s economic strength is built on our unique Single Market and open, rule-based global trade. But current geopolitical shifts and the rapid development of sensitive technologies mean we have to strike a balancing act: we must uphold our economic security, while ensuring we continue to benefit from an open economy. This comprehensive approach on economic security will build on our strengths, maintaining and growing partnerships around the world, while addressing identified risks in a targeted and proportionate way.

Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade - 20/06/2023

Today’s proposal sets-out our plan to de-risk – rather than decouple – our economic interdependencies on technologies we need the most. And to assert the EU’s our position as a leader in the global technology race. When we don’t act together, we are a playground. When we do act together, we are a player.

Margrethe Vestager, Executive Vice-President for a Europe Fit for the Digital Age - 20/06/2023

Security is a concept that has new and multiple dimensions. One of them is economic security. We have learned how dependencies can be weaponised. With this strategy, we are combining economic security policy measures to reduce our excessive dependencies while preserving a global open rule-based trade system. To do this, we must engage with the broadest possible range of partners. As High Representative for Foreign Affairs and Security policy, I will ensure that our efforts to promote economic security become an integral part of the EU’s external action, and are coherent with our broader foreign policy.

High Representative/Vice-President Josep Borrell - 20/06/2023

World Refugee Day: Joint Statement by the European Commission and the High Representative

"Today, more than 110 million people are forcibly displaced around the world. On the occasion of World Refugee Day, we reiterate the EU's commitment to continue being a leading humanitarian and development donor and to step up our efforts to ensure that the EU remains a place where refugees find protection and safety.

Globally, the EU is working to help improve the situation of millions of refugees and forcibly displaced persons caught up in conflicts or major humanitarian crises such as those in Afghanistan, Syria, Venezuela, Myanmar, Yemen, South Sudan, Sudan, the Democratic Republic of the Congo and Burkina Faso. We deliver life-saving aid including food, shelter, education, health care, as well as livelihood support.

While the vast majority of those forcibly displaced are outside the EU, we also support significant numbers of refugees in Member States.* In particular, with Russia's war against Ukraine, today Member States are hosting around 4 million people from Ukraine under temporary protection, with more than half being women and children. The EU also provides protection and humanitarian assistance to internally displaced persons in Ukraine, and we support refugees from Ukraine in the Republic of Moldova.

The journeys of refugees are often full of hardship and danger, with thousands risking their lives across deserts and seas in the hope of a better future. The EU is committed to work on comprehensive action to prevent the loss of life and provide orderly and safe pathways. We are working with EU Member States and international partners on resettlement and complementary pathways that can help scale-up admission places, from priority regions. The EU resettlement and humanitarian admission scheme was launched by the European Commission on 10 May 2023, kicking off the new pledging exercise for 2024-2025.

The EU welcomes the upcoming Global Refugee Forum in December 2023 as an important opportunity to better share global responsibility: to be truly effective we must all step up our efforts and work in partnership to address the multiple complex challenges created by forced displacement."

Background

The EU reiterates that the right to seek and enjoy asylum and the principle of non-refoulement, as enshrined in the 1951 Refugee Convention and in the EU Charter of Fundamental Rights, must be respected at all times.

The EU and its Member States also make an important contribution to global resettlement efforts. Since 2015, EU resettlement schemes have helped more than 115,000 vulnerable refugees find a safe haven in EU Member States. In addition, almost 45,000 Afghans at risk were admitted to the EU since 2021. EU Member States have until mid-September 2023 to submit their pledges for the 2023-2024 pledging exercise.

A sustainable approach to migration management requires partnerships among countries and a balance between solidarity and responsibility. The European Commission has been tirelessly working to support Member States both with operational and legislative instruments. Through the New Pact on Migration and Asylum, the EU will strengthen the management of asylum applications in the EU, protecting refugees and people in need of international protection, as well as and supporting refugee-host countries. The European Commission is supporting co-legislators to finalise negotiations on the Pact by February 2024, in line with the Joint Roadmap.

Global Gateway: EU invests €110 million to advance education, health and green energy in Zambia

Today in Lusaka, Commissioner for International Partnerships, Jutta Urpilainen, announced the resumption of budget support for Zambia and launched three programmes worth €110 million under Global Gateway. The announcement was made alongside President Hakainde Hichilema and Minister of Finance and National Planning Situmbeko Musokotwane.

The three programmes focus on improving Zambia's education and health systems, increasing green energy and enhancing food security.

Commissioner Urpilainen and Minister Musokotwane also announced the intention of the EU and Zambia to launch negotiations for a Memorandum of Understanding on a strategic partnership on sustainable critical raw materials value chains.

Commissioner Urpilainen is accompanied in this visit by four members of the European Parliament's Committee on Development: Pierrette Herzberger-Fofana, György Hölvényi, Udo Bullmann and Carlos Zorrinho. It is the first joint Team Europe mission of this kind.

The three EU programmes worth €110 million focus on:

Health and Education: The EU's new €60 million budget support allocation to Zambia comes on top of the initial €299 million cooperation budget in Multiannual Indicative Programming (2021-2024). The new grant marks the resumption of budget support for Zambia, and it will be used to improve education and health sectors in particular. It will enhance access to inclusive and quality education on primary and secondary levels. It will help Zambia address barriers to public health and boost the pharmaceutical sector development.

Green Energy: the EU will make an additional investment of €30 million in the rehabilitation of the Kariba Dam, a key infrastructure providing clean energy to both Zambia and Zimbabwe. It represents one third of Zambia's and half of Zimbabwe's power generation capacity. Previously, the EU has made a €83.5 million financial commitment for the Kariba Dam rehabilitation project. Today's new allocation will help finance the cost of additional works that were identified during the first phase of the project. The project is expected to conclude next year.

Food Security: The EU is contributing an additional €20 million to support smallholder farmers in Zambia. This support is part of the EU's response to the food security crisis and economic shock aggravated by Russia's war of aggression against Ukraine. New funding complements the €12.4 million already mobilised to assists 60,000 small-scale farmers in increasing small farmers' productivity and support to women working in the sector.

Background

Global Gateway EU-Africa Investment Package

The Global Gateway stands for sustainable and trusted connections that work for people and the planet. It helps to tackle the most pressing global challenges, from fighting climate change, to improving health systems, and boosting competitiveness and security of global supply chains.

Supported by €150 billion in EU investment between 2021-2027,  Global Gateway EU-Africa Investment Package aims to support Africa for a strong, inclusive, green and digital recovery and transformation. Together, the EU will support our African partner countries to achieve this by:

  • Accelerating the green transition
  • Accelerating the digital transition
  • Accelerating sustainable growth and decent job creation
  • Strengthening health systems
  • Improving education and training

The package will be delivered through Team Europe initiatives, bringing together the EU, its Member States and European financial institutions to support transformational projects jointly identified in priority areas.

Quote(s)

We are living in an increasingly complex geopolitical context. Amidst turmoil, the EU greatly appreciates the values-based cooperation we have with Zambia at regional, continental and multilateral levels. Our appreciation for Zambia is demonstrated by this joint visit of two EU institutions and the new financial commitments, which we announced today. The programmes we launched are examples of Global Gateway investment strategy in action. We invest in education, health, food security and green energy, and these investments will benefit Zambian people directly.

Jutta Urpilainen, Commissioner for International Partnerships

The Jules Verne Consortium Will Host the New EuroHPC Exascale Supercomputer in France

The European High Performance Computing Joint Undertaking (EuroHPC JU) has selected the Jules Verne consortium to host & operate in France the 2nd EuroHPC exascale supercomputer to exceed the threshold of one billion billion calculations per second.

This new exascale supercomputer will be managed by GENCI (as hosting entity), the French national agency for High Performance Computing, and operated at the TGCC computing centre by the CEA (as hosting site), the French Alternative Energies and Atomic Energy Commission, in Bruyères-le-Châtel. Exascale supercomputers are systems capable of performing more than a billion billion calculations per second and represent a significant milestone for Europe.

Just as the existing EuroHPC supercomputers, this new system will be available to serve a wide range of European users, no matter where in Europe they are located, in the scientific community, as well as industry, and the public sector. This exascale supercomputer will have a major impact on European scientific excellence by supporting the development of high-precision models of complex systems and helping to solve key societal questions regarding, for example, climate change and prediction of extreme weather events, innovative design and personalised medicine, the development of materials and new energies, digital twins for industry or use the artificial intelligence at scale.

The Jules Verne consortium will be led by France through GENCI supported by CEA, with the participation of the Netherlands through SURF, a cooperative association of Dutch educational and research institutions.

With a total budget of around EUR 540 million, the machine will be co-funded by the EuroHPC JU, with budget stemming from the Digital Europe Programme (DEP) and by contributions from France and the Netherlands. The JU will co-fund up to 50% of the total cost of the supercomputer. The exact funding arrangement for the new supercomputer will be reflected in the hosting agreement that will be signed soon.

The consortium has been selected as a result of a call for expression of interest for the selection of a hosting entity for a high-end supercomputer, launched in December 2022.

More details

·       Les gouvernements français et néerlandais se félicitent de la décision de l'entreprise commune EuroHPC d'héberger et d'exploiter un nouveau supercalculateur européen Exascale en France, GENCI press release

Background

The EuroHPC JU is a legal and funding entity created in 2018 to enable the European Union and EuroHPC participating countries to coordinate their efforts and pool their resources with the objective of making Europe a world leader in supercomputing. The mission of the EuroHPC JU is:

·       to develop, deploy, extend and maintain in the EU a federated, secure hyperconnected supercomputing, quantum computing, service and data infrastructure ecosystem;

·       to support the development and uptake of demand-oriented and user-driven innovative and competitive supercomputing and quantum computing systems based on a supply chain that will ensure the availability of components, technologies and knowledge;

·       to widen the use of that supercomputing and quantum computing infrastructure to a large number of public and private users.

To date the EuroHPC JU has already procured eight supercomputers, located across Europe: 

·       LUMI in Finland, 

·       LEONARDO in Italy,

·       Vega in Slovenia, 

·       MeluXina in Luxembourg,  

·       Discoverer in Bulgaria, 

·       Karolina  in Czechia, 

·       MareNostrum5 in Spain, and 

·       Deucalion in Portugal.

The construction of additional two supercomputers is underway: JUPITER in Germany, the first European exascale supercomputer and Daedalus in Greece, with plans for more, including quantum computers.  In October 2022, GENCI and CEA have been selected to host and operate a EuroHPC quantum computer.

President von der Leyen at the Ukraine Recovery Conference in London

On Wednesday, Commission President Ursula von der Leyen will attend the Ukraine Recovery Conference hosted jointly by Ukraine and the UK in London.

The President will take part and give a speech at the plenary opening session in the morning, which you can follow live on EbS+ and which will be published shortly afterwards here.

This year's edition of the Ukraine Recovery Conference will focus on mobilising international support for Ukraine's economic and social stabilisation and recovery from the effects of Russia's war of aggression, including through assistance for immediate needs and private sector participation in the reconstruction process. It brings together Heads of State or Government and Foreign Ministers from the international community, leaders of international financial institutions, the private sector and civil society to mobilise support for Ukraine.

Executive Vice-President Valdis Dombrovskis will also participate in the Conference.

(For more information: Eric Mamer – Tel.: +32 2 299 40 73)

Commissioners Reynders and Johansson at the EU-US Ministerial meeting on Justice and Home Affairs

Today and tomorrow, 20-21 June, Commissioner for Justice, Didier Reynders, and Commissioner for Home Affairs, Ylva Johansson, will attend the EU-US Justice and Home Affairs ministerial meeting in Stockholm. 

The United States will be represented by the Secretary for Homeland Security, Alejandro Mayorkas, and by the Attorney General, Merrick Garland. The Swedish Minister for Justice, Gunnar Strömmer, will also attend along with the Spanish Ministers of Interior, Fernando Grande-Marlaska, and of Justice, Pilar Llop. 

The discussions will focus on the support to Ukraine amidst Russia's unjustified and illegal invasion, including EU-US collaboration to enforce sanctions, ensure accountability to prevent impunity, and assist individuals displaced by the war. 

Special attention will be given to counterterrorism and information-sharing, with a particular focus on addressing violent extremism. Cross-border cooperation in criminal matters and the fight against organised crime will also be addressed, paying particular attention to drug trafficking, e-evidence and the challenges of fighting crime in the digital era. An update on the progress towards achieving visa reciprocity will be provided, and the priorities of the incoming Spanish Presidency will be presented.

Commissioners Reynders and Johansson, together with Minister Strömmer, Attorney General Garland and Secretary Mayorkas, will give a press conference after the ministerial meeting, at 13:30 CEST, which will be streamed live on EbS+.

(For more information: Christian Wigand - Tel.: +32 2 296 22 53; Anitta Hipper - Tel: +32 2 298 56 91)

COLLEGE MEETING: The European Commission appoints a new Director in its department for Communications Networks, Content and Technology

The European Commission has decided to appoint Kamila Kloc as Director ‘Digital decade and Connectivity' in the Directorate-General for Communications Networks, Content and Technology (DG CNECT). This Commission department develops and implements policies to make Europe fit for the digital age.

Kamila Kloc, a Polish national, brings with her sound knowledge of the Commission's Digital Decade policy and a thorough understanding of regulatory matters in the field of telecommunications. She also boasts a repertoire of extensively developed management skills, which have been refined throughout her career. This is complemented by her adeptness in harnessing the power of digital technologies.

Kamila Kloc has been working in DG CNECT since 2019 and is currently Acting Director of the ‘Digital decade and Connectivity' Directorate. She coordinated the Digital Policy Programme as Deputy Director and, prior to that, headed the unit dealing with assessment of national regulators' decisions concerning access to networks.

At an earlier stage of her career, she was Deputy Head of the Cabinet of Vice-President responsible for the Digital Single Market Andrus Ansip. She was also Policy Officer in the Directorate-General for Energy (DG ENER) and case-handler in the Directorate-General for Competition (DG COMP). Before joining the Commission in 2002, she worked as an Adviser for the President of Competition Authority of Poland on competition and consumer protection, in Warsaw.

(For more information: Balazs Ujvari - Tel.: +32 2 295 45 78; Claire Joawn - Tel.: +32 2 295 68 59)

COLLEGE MEETING: The European Commission appoints a new Director in its department for Employment, Social Affairs and Inclusion

The European Commission has decided to appoint Maria Luisa Cabral as Director ‘Working Conditions and Social Dialogue' in the Directorate-General for Employment, Social Affairs and Inclusion (DG EMPL). This Commission department is responsible for EU policy on employment, social affairs, skills, labour mobility and the related EU funding programmes.

Maria Luisa Cabral, a Portuguese national, will leverage her profound expertise in the European Pillar of Social Rights, garnered through nearly two decades of policy experience within the European Commission. Moreover, her exceptional aptitude for delivering compelling presentations and conducting fruitful negotiations further enriches her skill set.

Maria Luisa Cabral is currently Skills and Social Adviser to President von der Leyen. She notably advises the President on skills and social issues ranging from minimum wage to platform work and social dialogue. In her previous capacity, she was Head of Unit ‘Interinstitutional Relations Group (GRI)' in Secretariat-General. Before, she served in DG EMPL as Head of Unit ‘Social Security Coordination' and Head of Unit ‘Rights of Persons with Disabilities'. She also occupied the role of Assistant to the Director-General in the Directorate-General for Justice and Consumers (DG JUST). Before joining the Commission in 2004, she was Director for Organisation, Documentation and Dissemination in the Regional Government of Autonomous Region of Madeira.

(For more information: Balazs Ujvari - Tel.: +32 2 295 45 78; Claire Joawn - Tel.: +32 2 295 68 59)

CALENDAR

[ for the full schedule of the College please visit Calendrier du lundi 19 au 25 juin 2023 (europa.eu) printer friendly version below ]

Thursday 22 June 2023

Ms Stella Kyriakides in Paphos, Cyprus (until 23/06): meets with Mr Phedonas Phedonos, Mayor of Paphos and members of the Paphos Municipal Council; visits the Geroskipou Cancer Screening Centre; visits the Paphos branch of the Cyprus Association of Cancer Patients and Friends (PASYKAF); attends the ceremony to lay the foundation stone at the new building of the Cyprus Institute of Neurology and Genetics.

Friday 23 June 2023

Ms Stella Kyriakides in Nicosia, Cyprus: meets with Archbishop of Cyprus Georgios; visits the facilities of the Association of Rare Diseases ‘Monadika Xamogela'; meets with Ms Annita Demetriou, President of the Cyprus House of Representatives and President of the Democratic Rally party; meets with members of the LGBTQI trans community to discuss health issues.

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Calendrier du lundi 19 au 25 juin 2023

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