Council Decision (EU) 2026/1561

Contents

THE COUNCIL OF THE EUROPEAN UNION,Having regard to Protocol No 37 on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, and in particular Article 2, second paragraph, thereof,Having regard to the proposal from the European Commission,Having regard to the opinion of the European Parliament^note,Whereas:

(1)For the purposes of Protocol No 37 on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel, annexed to the Treaty on European Union and to the Treaty for the Functioning of the European Union, in accordance with Council Decision (EU) 2026/1545^note, the Commission is to manage the European Coal and Steel Community (ECSC) in liquidation and, on completion of the liquidation, the assets of the Research Fund for Coal and Steel (together referred to as the ‘assets’).

(2)Council Decision 2008/376/EC^note adopted the Research Programme of the Research Fund for Coal and Steel (the ‘Research Programme’). The Research Programme should contribute to increasing public and private investment in research and innovation in Member States, thereby helping to reach an overall investment target of at least 3 % of the Union’s gross domestic product in research and development.

(3)To that effect, and in line with the objectives of the Research Programme, work programmes should duly consider the evolving policy needs and the Union’s priorities as identified in the Commission’s Communications ‘A Competitiveness Compass for the EU’, ‘The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation’, ‘A European Steel and Metals Action Plan’ and ‘The European Green Deal’.

(4)In order to foster a just transition, the Research Programme should contribute to the social, economic and environmental revitalisation of coal and steel regions particularly affected by the transition of the coal and steel sectors.

(5)Committing the totality of the available assets in eight years is necessary to improve the attractiveness and impact of the Research Programme, leverage and accelerate private research and innovation investment, boost competitiveness and accelerate the industrial transformation of the steel and coal sectors towards the green transition and decarbonisation in a challenging geopolitical and economic context.

(6)In a changing economic and financial environment, recent experience has shown the need for more flexibility and a more attractive financial and technical framework for implementing the Research Programme. The multiannual technical guidelines (‘technical guidelines’) for the Research Programme should enable a more flexible approach in its implementation and should thus further simplify access to funding under that programme and maximise the effectiveness and impact of that funding.

(7)The replacement of Decision 2008/376/EC is necessary to simplify the landscape of Union funding programmes, in particular by aligning the Research Programme with the instruments used under the Horizon Europe Framework Programme of the European Union for Research and Innovation (2021-2027), established by Regulation (EU) 2021/695 of the European Parliament and of the Council^note, and those that will be used under the successor to that Framework Programme. Alignment is needed, inter alia, in relation to the funding rates between the programmes, which will allow for complementarities between various programmes in the sectors related to the coal and steel industry, providing applicants with a seamless pathway between programmes, where relevant. Changes in the corporate management of funding tools as well as the ‘single rulebook’ introduced by Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council^note resulted in a need to align the technical guidelines for the Research Programme. Those changes, combined with the changes in the implementation of the Research Programme to achieve its investment objectives, further strengthen the case for replacing Decision 2008/376/EC.

(8)The Research Programme should finance actions on the basis of open calls. The actions should primarily take the form of research projects covering the whole range of Technology Readiness Levels, from low to high, allowing for greater participation of industry, including small and medium-sized enterprises, and public and academic entities.

(9)In order to cover the risk for the Commission and other beneficiaries associated with non-recovery of sums due by beneficiaries, and to reduce the burden on applicants in providing bank guarantees, it is appropriate to extend the use of the mutual insurance mechanism established by Regulation (EU) 2021/695 to the Research Programme.

(10)Directive 2010/75/EU of the European Parliament and of the Council^note provided for the establishment of an innovation centre for industrial transformation and emissions (the ‘innovation centre’). By collecting and analysing information on innovative techniques, the innovation centre contributes, inter alia, to minimising pollution, to decarbonisation, to resource efficiency and to a circular economy that uses fewer or safer chemicals relevant to the activities covered by that Directive. In order to monitor technological progress and assess environmental benefits and trade-offs for industrial transformation in the Union, the periodic reports of the research projects under the Research Programme should be shared with the innovation centre, for information purposes.

(11)To ensure that all available assets are committed within eight years, the investment objectives of the asset management operations should be updated. The assets should be invested with the objective of preserving and, where possible, enhancing their value in order to meet the liquidity needs arising from funding calls. The other aspects of the asset management operations should be adjusted to align with the updated investment objectives.

(12)The multiannual financial guidelines (‘financial guidelines’) should enable a flexible approach as regards the technical aspects of the implementation and should specify the appropriate investment instruments to achieve the investment objectives. The rules pertaining to the way investments are conducted, namely those related to asset allocation principles, eligible investments and environmental, social and governance considerations, are technical in nature. For other portfolios managed by the Commission, they would in principle be determined in accordance with the rules for delegation of budget implementation powers referred to in Regulation (EU, Euratom) 2024/2509. Consequently, the Commission should be allowed to decide to enlarge the scope of eligible investments to include other asset classes and investment operations consistent with the investment strategy and objectives, as well as currencies of other advanced economies, as listed by the International Monetary Fund and subject to hedging of currency risk, in accordance with those rules. Moreover, to align the financial guidelines applicable to environmental, social and governance investments with the rules applicable to the other portfolios it manages, the Commission should also be allowed to set detailed financial guidelines.

(13)To ensure financial transparency, the Member States should be provided with an annual report containing information on asset management operations carried out under the financial guidelines, including information on asset allocation to the different asset classes, and an explanation of any major change in strategic asset allocation.

(14)Regulation (EU, Euratom) 2024/2509 applies to the Research Programme.

(15)To accommodate the different contribution methods of participants, in particular in research and innovation activities, it should be possible to declare in-kind contributions from third parties as eligible costs, by way of derogation from Article 193(2) of Regulation (EU, Euratom) 2024/2509. To incentivise valorisation of results, income generated by such valorisation should not be considered as revenues of the action, by way of derogation from Article 195(2) of Regulation (EU, Euratom) 2024/2509.

(16)In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council^note and Council Regulations (Euratom, EC) No 2988/95^note, (Euratom, EC) No 2185/96^note and (EU) 2017/1939^note, the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulations (EU, Euratom) No 883/2013 and (Euratom, EC) No 2185/96 the European Anti-Fraud Office (OLAF) can carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor’s Office (EPPO) is competent to investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council^note. In accordance with Regulation (EU, Euratom) 2024/2509, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the European Court of Auditors and, as appropriate, to EPPO, and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(17)In order to ensure uniform conditions for the implementation of this Decision, implementing powers should be conferred on the Commission as regards certain decisions on the approval of the funding for research projects. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council^note.

(18)Council Decision 2003/77/EC^note and Decision 2008/376/EC should be repealed.

(19)It is appropriate to merge the technical and financial guidelines for reasons of simplification.

(20)In order to ensure a consistent implementation of the Research Programme in 2026, Decision 2008/376/EC should continue to apply to the financing of actions resulting from proposals submitted to calls published up to 31 December 2026.

(21)For reasons of clarity as to the rules applicable to actions, it is appropriate to defer the application of this Decision until 1 January 2027,

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