STEP mobilises 11 EU programmes to support critical technologies and skills. This will strengthen European competitiveness for a massive, estimated investment potential across the EU. The European Defence Fund benefits from a reinforcement of EUR 1.5bn for STEP projects.
STEP is a testing ground for the future EU funding for competitiveness.
![EU programmes supporting STEP](/https/strategic-technologies.europa.eu/sites/default/files/styles/embed_large/public/2024-04/STEP%20Seal%20slide_0.png?itok=IeBQLaIW)
The visual summarise in a unique view the 11 EU programmes supporting STEP objectives namely 6 programmes managed in direct and indirect management and 5 programmes managed jointly by the European Commission and the EU member States. It explains as well that the Sovereignty seal awarded under 5 directly managed programmes creates projects fast track to other possible funding under the programmes implemented in shared management. All these elements are explained in the corresponding text aside and in a dedicated section on the Sovereignty seal.
STEP leverages and steers resources across 11 EU funding programmes to investments in strategic technologies and in people who can implement those technologies into the economy. The STEP seal, awarded under directly managed programs, will facilitate access to additional funding opportunities for high quality projects.
Combination of funding
One of the objectives of STEP is to help individual projects benefit from cumulative funding under several instruments of the EU budget. This will be facilitated, particularly, by the STEP Seal. For instance, grants under the Innovation Fund could be combined with grants under cohesion funds.
Three types of support
EU funding is organised through three distinct management modes, each with its own application and evaluation processes.
Directly managed programmes
The European Commission (including its executive agencies) is directly in charge of the programme management. EU programmes, such as the Digital Europe programme, the European Defence Fund (benefiting from a reinforcement of €1.5 in the STEP priority areas), the EU4Health programme, Horizon Europe, and the Innovation Fund have dedicated resources to support your STEP project. Often these resources are offered as grants (i.e., they do not come with a repayment obligation). To receive such grants, you need to apply to the relevant calls for proposals listed in the section Get funding. The evaluation of submitted proposals, the signing of the grant agreement, the monitoring of project implementation, the assessment of the results and the actual payments are carried out by the responsible Commission's departments directly or through EU executive agencies.
A guidance note on how to complete an ethics self-assessment is available to help applicants and beneficiaries ensure their proposals meet ethical standards for programmes that require an ethics review to secure funding.
Key facts you need to know about STEP contributing programmes:
Pillar II - GLOBAL CHALLENGES & EUROPEAN INDUSTRIAL COMPETITIVENESS
Cluster 4: Digital, Industry and Space
Objective: Reinforce European independent capacity to access space, securing the autonomy of supply for critical technologies and equipment, and fostering the EU's space sector competitiveness.
Total budget 2023-2024: EUR 494 million
STEP sector:
- Digital tech & deep tech innovation
- Clean & resource efficient tech
Example of actions: Collaborative space research and innovation projects, in-orbit demonstration and validation, boosting entrepreneurship of space companies, etc.
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Pillar III - INNOVATIVE EUROPE
European Innovation Council
Objective: Supporting game changing innovations throughout the lifecycle with an emphasis on EU industrial leadership and the green and digital transitions. The EIC offers initial funding to fast-growing start-ups, small mid-caps, and companies seeking capital for scaling up beyond the initial innovation stage.
Total budget 2021-2027: EUR 10.1 billion
STEP sector:
- Digital tech & deep tech innovation
- Clean & resource efficient tech
- Biotech
Example of actions: Research, innovation, pilot actions, market deployment actions, networking and coordination, training and mobility actions, dissemination and exploitation of results, etc.
Advisory services: Business Acceleration Services
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EIC Accelerator | |
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Note: EIC Accelerator follows a multi-step application procedure which begins with a short application and a pitch video, is followed by an application form and, if successful, leads to an interview invitation to a face-to-face pitch week in Brussels. |
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Objective: Driving the EU’s digital transition
Total budget 2021-2027: Over EUR 8 billion
STEP sector: Digital tech & deep tech innovation
Example of actions: Acquisition of exa-scale machines related to high-performance computing, set-up of data spaces and testing and experimentation facilities for artificial intelligence, setting-up of cybersecurity centres, deployment of a network of European digital innovation hubs, support for interoperability
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Objective: Improve and foster health, protect people, access to medicinal products, medical devices and crisis-relevant products, strengthen health systems
Total budget 2021-2027: EUR 4.6 billion
STEP sector: Biotech
Example of actions: Crisis preparedness, disease prevention, health systems and healthcare workforce and digitalisation.
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Objective: Delivering the next generation defence systems
Total budget 2021-2027: EUR 7.3 billion including a top up of EUR 1.5 billion specifically for STEP actions
STEP sector:
- Digital tech & deep tech innovation
- Clean & resource efficient tech
- Biotech
Type of actions: Collaborative defence research projects; joint development of defence products and technologies.
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Objective: Bringing to the market solutions to decarbonise the European industry
Total budget 2020-2030: EUR 40 billion
STEP sector: Clean & resource efficient tech
Type of actions: Flagship projects that can bring significant emission reductions
Advisory services: Project development assistance
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Nationally managed funds
In a collaborative effort, the European Commission and national authorities in the Member States work hand-in-hand to manage the funding. This partnership leverages local insights and expertise, ensuring that the implementation of funds aligns with both EU objectives and national priorities. Cohesion policy funds including the Cohesion Fund, the European Regional Development Fund, the European Social Fund+ and the Just Transition Fund as well as the Recovery and Resilience Facility, might have dedicated resources to support your STEP project. Often these resources are in the form of grants (i.e., non-repayable). To receive such grants, you need to submit an application to the relevant calls for proposals in your Member State or region. Applications must be submitted through the relevant regional or national authorities (referred to as “Managing Authorities").
STEP offers financial incentives to direct cohesion policy funds toward investments in critical technologies. These include a 100% co-financing rate for STEP priorities during the 2021–2027 programming period, along with a one-time 30% pre-financing option for Programme Amendments submitted by March 31, 2025. Additionally, support for productive investments in large enterprises will be available for the first time in less developed and transition regions, as well as in more developed regions in Member States with a GDP per capita below the EU-27 average. Furthermore, under the Recovery and Resilience Facility, Member States will have the option to allocate up to 10% of their national envelope to STEP-relevant instruments under InvestEU (see dedicated section below).
Since EU countries manage these funds, detailed information on the specific funding calls are published on the National single portals and on the operational programme websites that offer up to date information on upcoming funding opportunities, namely which regions are covered by funding calls, who can apply, the amount of funding allocated to a call, programme and EU policy objectives, and the relevant timelines.
Key facts you need to know about STEP contributing programmes
Objective: To mitigate the economic and social impact of the Covid-19 pandemic and make Member States’ economies and societies more sustainable, resilient and prepared for the green and digital transitions
Total budget 2021-2026: The RRF will disburse up to EUR 648 billion (this figure corresponds to what Member States requested under the national Recovery and Resilience Plans by end 2023)
STEP sector:
- Digital tech & deep tech innovation
- Clean & resource efficient tech
- Biotech
Type of actions: Reforms and investments that are in line with the 11 assessment criteria of the RRF Regulation (incl. two additional criteria for measures in the REPowerEU chapter), notably addressing the challenges identified in country-specific recommendations under the European Semester framework and EU priorities such as the green and digital transitions. The Recovery and Resilience Scoreboard gives an overview of how the implementation of the Recovery and Resilience Facility (RRF) and the national recovery and resilience plans is progressing. A guidance explains the process for modifying the Recovery and Resilience Plans, including the allocation of resources towards STEP objectives.
What is it for? | Projects across 6 policy pillars:
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Objective: Investing into people and building a more social and inclusive Europe
Total budget 2021-2027: EUR 142.7 billion
STEP sector:
- Digital tech & deep tech innovation
- Clean & resource efficient tech
- Biotech
Type of actions: Projects in the field of employment, education & skills, and social inclusion
What is it for? | Support projects on:
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Objective: Strengthening economic, social and territorial cohesion
Total budget 2021-2027: EUR 226.05 billion
STEP sector:
- Digital tech & deep tech innovation
- Clean & resource efficient tech
- Biotech
Type of actions:
Make Europe and its regions:
- More competitive and smarter
- Greener
- More connected
- More social
- Closer to citizens
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Objective: Supporting the reconversion of territories expected to be the most negatively impacted by the transition towards climate-neutrality
Total budget 2021-2027: EUR 19.32 billion
STEP sector: Clean & resource efficient tech
Type of actions:
Support can be provided to:
- Up- and reskilling of workers
- Productive investments in SMEs
- Creation of new firms
- Environmental rehabilitation
- Investment in clean energy
- Job-search assistance
- Transformation of existing carbon-intensive installations
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Objective: Supporting Member States with a gross national income per capita below 90% of the EU27 average
Total budget 2021-2027: EUR 48.03 billion, including EUR 11.29 transferred to the Connecting Europe Facility
STEP sector: Clean & resource efficient tech
Type of actions: Modernisation and development of railway axis and junctions, modernisation water infrastructure, extension of public transport’s network...
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Repayable forms of funding
These include equity, loans, and guarantees that can be used for various types of investments. These are implemented in collaboration with public and private institutions (e.g. banks and equity funds). Such repayable forms of funding are demand-driven and based on a market logic. Before awarding funding, the financial institution in charge examines projects that fall within their geographic and activity scope. It also decides on the specific financing conditions, including the amount, duration, interest rates and fees.
The repayable support under InvestEU programme is channelled through Implementing Partners i.e. the European Investment Bank Group and other international financial institutions and national promotional banks and institutions, and the network of local financial intermediaries acting across the European Union.
InvestEU financial products deployed by implementing partners are covering different types of repayable support from debt, guarantees to equity for a very broad set of EU policy areas, technology readiness levels and stages of innovation, including investment in manufacturing and deployment of STEPs technologies. Examples of financial products available goes from senior, subordinated and venture debt to intermediate and direct equity and guarantees to financial intermediaries.
The InvestEU Fund, part of the InvestEU programme, provides support to final recipients that are deemed economically and financially viable. All size of companies and projects, as well as a broad range of riskiness levels of operations, can be supported. The eligible final recipients can be natural or legal persons established in an EU country or in a third eligible country, including:
- Private entities such as special-purpose vehicles (SPV) or project companies, large corporates, midcap companies, including small midcap companies, start-ups and SMEs
- Public sector entities (territorial or not) and public-sector type entities
- Mixed entities, such as public–private partnership (PPPs) and private companies with a public purpose
- Non-for-profit organisations
How to apply for financing?
- Project promoters should apply directly to Implementing Partners to see on suitable financing solutions based on the financial products supported by the EU guarantee.
- Financial intermediaries should also consult the offering of implementing partners active in their regions proposing relevant products: it is up to them to select financial intermediaries through procedures such as calls for expressions of interest.
- Small mid-caps, SMEs, start-ups and social or micro-enterprises: should apply to their local commercial or public banks whose financial products are covered by the EU guarantee in their country or region. The local intermediary will inform them if a particular financing programme is covered by the InvestEU Fund.
Find your local intermediary on our Access to EU Finance website, which already lists intermediaries under current EU programmes and will successively list InvestEU financial intermediaries.
You can also wish to register to the InvestEU Portal that brings together investors and project promoters on a single EU-wide platform, by providing visibility and matchmaking opportunities for investment projects within the EU, Norway and Iceland. Project promoters can publish their project on the Portal to bring it to the attention of potential investors. Register your project and make it visible to an investor here.
For advisory support and technical assistance offered under InvestEU advisory hub you can apply through the Central Entry Point.
Key facts you need to know about STEP contributing programme
Objective: Financing Europe’s future by supporting sustainable investment, innovation and job creation
Total budget 2021-2027: EUR 26.2 billion (i.e. size of the EU Guarantee made available to implementing partners)
STEP sector:
- Digital tech & deep tech innovation
- Clean & resource efficient tech
- Biotech
Type of actions: Investment in economically viable projects in areas where there are market failures or investment gaps
Advisory services: InvestEU Advisory Hub
What is it for? | Leverage private and public funds in support of Europe’s sustainable recovery, by increasing the risk-bearing capacity of financial partners in 4 policy windows:
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