Understanding the Strategic Technologies for Europe Platform

In a global context where technology is advancing rapidly, Europe faces the challenge of maintaining its competitiveness and security. The European Union has launched various initiatives to coordinate the development and implementation of critical technologies, with the Strategic Technologies Platform (STEP) being one of the most significant.

What is the Strategic Technologies Platform (STEP)?

The Strategic Technologies for Europe Platform was proposed by Ursula von der Leyen in June 2023 and established under specific regulations in February 2024 by the EU to support European industry and promote investment in key technologies. STEP aims to enhance the research, development, and implementation of essential technologies vital for Europe’s technological competitiveness and sovereignty.

This is not a new funding program but an initiative that coordinates, strengthens, and directs up to 11 different sources of funding at the European level.

Objectives of the STEP platform

The overarching goal of STEP is to support the development and manufacturing of critical technologies in Europe, protecting and strengthening their respective value chains while addressing labor and skills shortages.

To achieve this, STEP has set three specific objectives:

• Enhance the flexibility of current funding programs;
• Strengthen the capabilities of existing instruments;
• Encourage synergies among previous programs and instruments.

STEP investment areas

STEP directs its funding toward three strategic sectors:

• Digital and deep innovation technologies: This includes artificial intelligence, quantum technologies, and advanced connectivity, as well as cybersecurity, robotics, and microelectronics.
• Clean and resource-efficient technologies: This focuses on net-zero solutions, such as carbon capture and storage technologies, and heat pumps, among others.
• Biotechnologies: This encompasses essential medicines for the EU, as well as molecular, industrial, and crop biotechnologies, and pharmaceuticals.

Coordination, strengthening, and guidance of up to 11 European funding sources

STEP is not a new funding program but an initiative that coordinates, strengthens, and directs up to 11 different sources of funding at the European level. These actions are structured into three main areas:

1. 1. Programs managed by the European Commission:

• Redirecting and reallocating existing budgets toward STEP themes, such as the European Defence Fund (with an additional €1.5 billion for R&D actions), the Innovation Fund (with an additional €5 billion), and Horizon Europe (with an extra €500 million for the EIC, in addition to €2.13 billion from previously unspent funds).
• Aligning priorities with STEP technologies in programs like Digital Europe and EU4Health.

1. 2. Programs managed by national authorities: These include funds from cohesion policy (such as the Cohesion Fund, European Regional Development Fund, European Social Fund, and Just Transition Fund), as well as Recovery and Resilience Plans.

• In the funds related to Cohesion Policy, for the STEP priorities during the programming period 2021-2027, 100% of the funding will come from European Funds. However, the aid intensity will be determined by applying the state aid grant regulations. There will be a unique pre-financing option of 30%, in addition to support for productive investments in large enterprises in less developed and transitional regions.
• Under the Recovery and Resilience Mechanism, Member States can allocate up to 10% of their national allocation to relevant instruments for STEP within Invest EU.

1. 3.  Financing: STEP will enhance the European Union’s guarantee by an additional €7.5 billion through various financial instruments of Invest EU, managed by the European Investment Bank (EIB) and its implementation partners, such as the Official Credit Institute (ICO). This requires a financial complement of €3 billion, with a provision rate of 40%. This additional guarantee will be exclusively dedicated to projects that support STEP priorities.

Creating additional synergies around STEP instruments

STEP introduces two key tools to facilitate access to funding:

1. 1. State aid: In May 2024, the European Commission updated the Guidelines on regional aid, allowing EU governments to provide more economic support for projects framed within STEP, especially in disadvantaged regions:

• “A” areas: Less developed regions can receive an increase of up to 10 percentage points in aid.
• “C” areas: Regions with intermediate development can receive an increase of up to 5 percentage points.

1. 2. Sovereignty seal: This European certification distinguishes high-quality technological projects that meet EU standards for security, quality, and autonomy. The STEP seal aims to enhance Europe’s technological self-sufficiency by promoting the development of products and services that do not rely on external suppliers, allowing projects to benefit from cumulative aid under different EU programs.

How to obtain the Sovereignty seal

The European Commission will award the Sovereignty seal to projects that score highly during the selection process in programs like the Innovation Fund, Horizon Europe, Digital Europe, EU4Health, or the European Defence Fund. To qualify, a project must meet:

• Minimum quality requirements, including eligibility, exclusion, and award criteria.
• Contribute to STEP’s objectives, such as the development of critical technologies within the EU or addressing labor shortages in key sectors.

If these conditions are met, the project will be published on the STEP portal with the award of Sovereignty seal, which is valid for the duration of the project, unless it has not started within five years or has moved outside the EU. The first seals are expected to be awarded by the end of 2024 when the results of the calls for proposals for the programs covered by STEP are published.

Benefits of the Sovereignty seal

Obtaining the Sovereignty seal offers multiple advantages, such as:

• Preferential access to funding: It improves access to EU funding, facilitating the acquisition of alternative cumulative funds from various EU budget instruments. Projects with the seal may receive priority across several funding sources, such as:
  • Cohesion policy funds (ERDF, FC, ESF+, FTJ): Possibility of receiving additional support and expedited selection without further procedures.
  • National Recovery and Resilience Plans (PRR) and the Modernization Fund (FM): Priority for funding.
  • InvestEU: Enhanced efficiency in project processing with the Sovereignty Seal, both by the Commission and Implementation Partners.
  • Other EU funds and programs: Projects could receive support or combined funding.
• Increased visibility and additional support: Projects that receive the STEP seal will be promoted on the STEP portal, attracting public and private investors by certifying their quality and contribution to STEP’s objectives.

Impact and future of STEP

The establishment of the STEP platform and the Sovereignty seal reflects the European Union’s strong commitment to enhancing its technological autonomy. These initiatives aim not only to strengthen Europe’s competitiveness on the global stage but also to ensure increased investment in research and development, fostering innovation in key sectors such as digital technologies, clean energy, and biotechnology.

The implementation and evaluation timeline for the STEP program spans from 2024 to 2027. Following the agreement reached in February 2024, the program came into effect in March, with a guidance document on its scope published in May, and the designation of national focal points in each Member State in June. August 31, 2024, marked the close of the first deadline for amendments from national authorities. In September of the same year, the STEP portal was officially launched, centralizing all key information about the program.

Going forward, a second deadline for amendments is expected to be established by August 31, 2025, and an interim evaluation report will be published by the end of that year. Implementation will continue throughout 2026.