The adopted regulations aim to accelerate and simplify research and innovation investments while supporting the green and just transition of the EU’s steel industry and coal mining regions.
Under the Council’s new decision, the fund's duration has been extended to 2034 instead of the 2030 date proposed by the Commission, allowing for investments of up to EUR 120 million per year through an equal distribution of annual financial allocations. Additionally, the objectives of the research and innovation projects to be carried out under the fund have been clarified.
Nicodemos Damianou, Deputy Minister of Research, Innovation, and Digital Policy for the Republic of Cyprus, stated that the approval of the fund is the first General Approach under the Cyprus Presidency, emphasizing it as a vital tool for increasing the competitiveness and sustainability of sectors critical to Europe's resilience, economic strength, and strategic autonomy. Damianou noted that the new rules would facilitate access, extend the fund's duration, and strengthen support for SMEs, thereby accelerating the transition to cleaner, more innovative, and globally competitive European industries.
The reformed fund allows for a total investment of approximately EUR 800 million in research and innovation by increasing annual funding. By raising co-financing rates, industrial participants can receive up to 70% in EU funding, while SMEs, startups, and academic institutions can receive up to 100%. The changes aim to simplify the EU funding landscape and make the fund more attractive, while also paving the way for future integration with other EU programs such as the Innovation Fund and Horizon Europe.
The general approach agreed upon by the Council formalizes the agreement on the reform package. The approval or opinion of the European Parliament will be required for the reform to enter into force. Following its adoption and publication in the Official Journal of the EU, the reform is expected to take effect in January 2027.
The RFCS was established in 2002 following the expiration of the European Coal and Steel Community (ECSC) treaty, using annual interest income from ECSC assets to support research and innovation projects that enhance the competitiveness of Europe’s coal and steel industries. The fund operates under its own legal basis, independent of the multiannual financial framework.
The revision of the fund's legal framework aims to support the decarbonization and clean transformation of these sectors while increasing Europe’s competitiveness. With this revision, the fund's objectives have been aligned with EU policies on decarbonization and clean steel, the Competitiveness Compass, the Clean Industrial Deal, and the European Action Plan for Steel and Metals.
The reform package consists of two Council decisions: one concerning the use of the European Coal and Steel Community's financial assets to fund coal and steel research, and the other covering the multiannual financial and technical guidelines for managing the fund's assets. bu düzenlemeler These regulations aim to simplify and accelerate RFCS investments.
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