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Background
CEF2 is a co-financing programme which aims to support the development of strategic high-performance infrastructure to connect and integrate the EU and its regions. It covers the transport, telecommunications and energy sectors. CEF2 will have a dedicated part for digital connectivity infrastructures, called CEF2 Digital.
CEF2 will run from 2021-2027 and is the continuation of CEF 2014-2019. In the past, various calls for proposal in the field of cybersecurity and eID have been launched under the first CEF.
In March 2019, the European Parliament and the Council concluded a provisional agreement on CEF2. This agreement establishes the main goals of the programme and the actions to be supported.
Actions to be funded
The draft orientations were elaborated by the Commission based on the provisional agreement and on a public consultation which ran from July to September. This Commission’s document proposes a set of strategic implementation priorities. The Commission remains open for discussion on these draft orientations.
Potential funding actions are the following ones:
· 5G corridors for smart and connected mobility: support the roll-out of uninterrupted 5G network and system coverage along major transport routes, including roads, rail and inland waterways for Connected and Automated Mobility (CAM).
· 5G communities – gigabit connectivity for socio-economic drivers and citizens: accelerate and complement private investments in very high capacity, including 5G networks, in areas where socio-economic drivers (with priority hospitals, medical centres, education and research centres) are located.
· 5G services for smart communities (“5G4EU” projects): enable user communities, such as municipalities, to contract operators to upgrade their networks so that they support 5G-based applications and services.
· Strategic terabit connectivity for High Performance Computing (HPC): support and substantially improve the cross-border connectivity and service provisioning between identified nodes of the pan-European HPC infrastructure.
· Strategic backbone networks for cross-border and sustainable cloud federations: co-invest in secure, sustainable, interoperable, cross-border and high-speed cloud infrastructure with a focus on data privacy, security, and energy-efficiency.
· Submarine connectivity of strategic importance: support the deployment and/or significant upgrade of submarine cables, for which the market alone will not invest.
· Operational digital platforms and synergy projects: fund operational digital platforms to leverage synergies between the energy, transport and digital sectors, for instance on energy storage and smart grids. The draft orientations mention the project of a cybersecurity platform for Connected and Automated Mobility where cybersecurity information could be exchanged, and where the system could be secured and monitored.
Financing method
CEF2 will be implemented via calls for proposal. Projects funded by CEF2 are co-financed either by public or private entities.
The Commission will implement CEF2 in direct management or indirect management. There will be no national allocation of funds.
Budget
The Commission initially envisaged a budget of 3 billion euros for CEF2 Digital, covering the period 2021-2027. However, according to the latest Council’s negotiating box for next EU budget, only 1,8 billion euro would be dedicated to the digital part of CEF2 – out of 28 billon euros for the entire programme CEF2.
According to the draft orientations, up to 75% of CEF2 Digital budget could support 5G infrastructure deployments.
The definitive budget of CEF2 will depend on the conclusions of the ongoing negotiations on next EU budget.
Next steps
The Commission should adopt the first multiannual work programmes by 31 December 2020.
These programmes will set out a timetable of calls for proposals for 2021-2023, the topics covered, an indicative budget and a prospective framework for the entire programming period (2021-2027).
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