EU funding and Competence Centre: Digital Europe and other budget cuts

On 17 February, the European Commission held an informal meeting on the Digital Europe Programme, where the future funding programme was presented and discussed with identified stakeholders.

The main conclusion from this meeting is that the programme will suffer drastic cuts and the European Commission already wonders in which areas these cuts should apply.

Background

Digital Europe is an EU funding programme with a proposed budget of 9,2 billion euros for 2021-2027. The objective of the programme is to improve the EU’s digital competitiveness and to increase the take up of digital technologies across the EU.

The future programme will cover five areas:

-High performance computing (2,7 billion euros): buying high-performance computing machines and investing in quantum technologies.

-Artificial intelligence (2,5 billion euros): create data spaces and have large testing and experimentation facilities.

-Cybersecurity (2 billion euros): deploy a competence centre network and support certification schemes.

-Advanced digital skills (0,7 billion euros)

-Deployment and use of digital technologies, especially by SMEs (1,3 billion euros): creation of Digital Innovation Hubs

This budget will be complemented by funding from the Member States and the industry, through the joint undertakings (for instance, euroHPC Joint Undertaking).

Calls for proposal or tender will be launched by different entities depending on the topic.

-High performance computing: funding managed by euroHPC Joint Undertaking

-Artificial intelligence: funding directly managed by the European Commission

-Cybersecurity: funding managed by the future European Cybersecurity Competence Centre

-Advanced digital skills: direct and indirect management

-Deployment and use: direct management

NB: Digital Europe has a specific clause which enables the Commission to exclude participants from a call (for instance participants from a given third country).

Budget cuts

According to the latest proposal from the Croatian presidency, Digital Europe would be allocated a budget of 6,761 billion euros, which is roughly a quarter less than the initial proposal from the European Commission (9,2 billion euros).

This cut cannot be compensated by other funding instruments. Horizon Europe is dedicated to research and innovation. Connecting Europe Facility Digital (CEF2 Digital) mainly addresses telecommunications.

In addition, other funding programmes also suffer cuts in the new proposal from the Croatian presidency. Horizon Europe would have a budget of 84 billion euros (instead of 100 billion euros), CEF2 Digital would be allocated 1,8 billion euros (instead of 3 billion euros). The European Defence Fund would receive 7 billion euros (instead of 13 billion euros).

During the meeting on Digital Europe, the European Commission explained that choices will have to be made on which areas are prioritised in terms of budget and which ones will suffer the cuts. 

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European Cybersecurity Competence Centre (ECCC)

The European Commission is optimistic on the possibility to conclude the negotiations on the ECCC before the end of the Croatian presidency. The launch of calls for proposal on cybersecurity before the establishment of the ECCC could happen if negotiations still failed. However, it is not the preferred option.

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Next steps:

20 February 2020: EU heads of state or government will discuss the EU’s long-term budget for 2021-2027 during a special meeting of the European Council.

For any questions on this issue, do not hesitate to contact Camille Dornier: camille.dornier@eurosmart.com