Government submits its position on the EU’s STEP facility to Parliament

The purpose of the Strategic Technologies for Europe Platform (STEP) is to strengthen Europe’s strategic autonomy by supporting the development of critical technologies and products. Another aim is to ensure the availability of necessary labour and skills in strategic sectors. While the Finnish Government supports the facility’s objective, it does not endorse a completely new EU-level financial instrument.

The Government submitted a Union communication concerning its position on the Commission’s proposal to Parliament on 7 September 2023.

In June 2023, the Commission published its proposal for the STEP facility, which builds up on and reinforces existing EU instruments. The EU’s strategic objective is to strengthen the competitiveness of the European economy through the green and digital transitions. The STEP facility would support more efficient development and manufacturing in the fields of deep and digital technology, clean technology and biotechnology.

Commission proposes to strengthen long-term budget

In connection with its mid-term review of the long-term budget for 2021–2027 (Multiannual Financial Framework, MFF), the Commission highlighted the unexpected challenges facing the Union. Russia’s invasion of Ukraine, high inflation rate and rising interest rates put pressure on the EU budget. In addition to the STEP facility, the Commission proposes to establish a financial instrument for Ukraine and to strengthen the EU budget to assist Member States faced by challenges posed by migration. Finally, a mechanism is proposed to cover the additional costs of the recovery instrument NextGenerationEU caused by high interest rates.

The additional funding of EUR 10 billion needed for the STEP would be financed by raising national contributions. Finland’s contribution to the EU would increase by approximately EUR 41 million per year in 2024–2027.

Government comments on proposal to establish STEP facility

The Finnish Government supports the objective of the STEP facility to coordinate measures and funding for strategic investments. However, the Government considers the proposed additional funding too high and does not support introducing additional funding or entirely new EU-level funding instruments. In reducing strategic dependencies, the EU should instead focus on using the instruments already available comprehensively and effectively.
The Government will define its final position on the STEP proposal later as part of the mid-term review of the long-term budget based on Finland’s overall interests.

Parliament decides on Finland’s final position

The Government prepares Union communications on those matters to be decided by the EU which, due to their content, would fall within the competence of Parliament if Finland were not a member of the EU. A communication describes the essential content and effects of the proposal and the Government’s position on the matter. Based on it, Parliament will form Finland’s position on the Commission’s proposal.

The proposed regulation is currently being discussed by the Council of the European Union and the European Parliament. Once both have formulated their positions, they will begin trilogue negotiations with the Commission. The three bodies will preliminarily agree on the text of the regulation, after which each of them will adopt the text in accordance with the rules of procedure.

Inquiries:

Lassi Noponen, Special Adviser to the Minister of Economic Affairs, Ministry of Economic Affairs and Employment, tel. +358 50 407 6033
Mikko Vähä-Sipilä, Director, Ministry of Economic Affairs and Employment, tel.  +358 295 047 166 (STEP facility)
Tiina Heiskanen, Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 064 923 (MFF package)