Proposal for a COUNCIL DECISION on the adoption of the Research Programme of the Research Fund for Coal and Steel, on the multiannual technical guidelines for this programme, on the multiannual financial guidelines for managing the assets of the Research Fund for Coal and Steel, and repealing Decisions 2003/77/EC and 2008/376/EC
Date: 2025-12-10
Institutions: Directorate-General for Research and Innovation, European Commission
Subjects: ECSC, coal, financial management, fund (EU), innovation, liquidation, research and development, research programme, steel

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   EUROPEAN COMMISSION  Brussels, 10.12.2025  COM(2025) 760 final 2025/0398 (NLE)  Proposal for a COUNCIL DECISION on the adoption of the Research Programme of the Research Fund for Coal and Steel, on the multiannual technical guidelines for this programme, on the multiannual financial guidelines for managing the assets of the Research Fund for Coal and Steel, and repealing Decisions 2003/77/EC and 2008/376/EC {SWD(2025) 409 final} - {SWD(2025) 410 final}  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  purpose  of  this  proposal  is  to  review  the  existing  legislation  of  the  Research  Fund  for 
Coal and Steel (RFCS).  
This  Council  Decision  will  repeal  the  provisions  of  Council  Decision  2008/376/EC1  and 
Council Decision 2003/77/EC2, as amended by Council Decision 2021/12073.  

The  proposal  aims  to  simplify  and  accelerate  investments  under  the  RFCS,  including  by 
increasing  its  attractiveness  and  continuing  to  use  the  part  of  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  (the  ‘assets’),  for  funding two biannual  calls  for research 
and innovation projects from 2027 until 2030 to enhance impact.  

To achieve this, this proposal merges the provisions previously included separately in the two 
repealed  Decisions,  namely  the  multiannual  technical  guidelines  for  the  RFCS  Research 
Programme  and  the  multiannual  financial  guidelines  for  managing  the  assets  of  the  RFCS. 
According to Protocol No 37 annexed to the Treaty of the European Union and the Treaty on 
the Functioning  of the European Union4.  Both the technical  and the financial guidelines are 
subject  to  the same adoption procedure5. The  reason for the  choice to  propose to  merge the 
technical and the financial guidelines into one Decision is to make the proposal simpler and 
easier to understand, thus constituting the ‘simplest form of Union action’ in the meaning of 
the  Better  Regulation  toolbox.6  It  provides  for  an  opportunity  to  review  and  align  the  full 
wording of both acts, and to facilitate adoption and discussion in the Council as full context is 
provided  for  both  sets  of  guidelines.  A  reform  of  the  RFCS  is  necessary  as  the  provisions 
outlined  in  the  Council  Decision  2021/1208,  which  allows  the  use  of  part  of  the  assets  for 
dedicated calls, will expire at the end of 2027. 

The  proposal  takes  into  account  the  observations  from  the  ex-ante  evaluation  that 
accompanies this proposal, as well as the advice of the Coal and Steel Advisory Groups and 
of the Member States represented in the Coal and Steel Committee. 

1 

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4 

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6 

Council  Decision  2008/376/EC  of  29  April  2008  on  the  adoption  of  the  Research  Programme  of  the 
Research Fund for Coal and Steel and on the multiannual technical guidelines for this programme (OJ L 
130, 20.5.2008, p. 7). 
Council  Decision  2003/77/EC  of  1  February  2003  laying  down  multiannual  financial  guidelines  for 
managing the assets of the ECSC in liquidation and, on completion of the liquidation, the Assets of the 
Research Fund for Coal and Steel (OJ L 29, 5.2.2003, pp. 25–27). 
Council  Decision  (EU)  2021/1207  of  19  July  2021  amending  Decision  2003/77/EC  laying  down 
multiannual financial guidelines for managing the assets of the ECSC in liquidation and, on completion 
of the liquidation, the Assets of the  Research Fund for Coal and Steel  (OJ L 261, 22.7.2021, pp. 47–
53). 
Protocol (No 37) on the financial consequences of the expiry of the ECSC Treaty and on the Research 
Fund for Coal and Steel (OJ C 115, 9.5.2008, p. 327–328). 
Protocol (No 37) Article 2, paragraph 2: ‘The Council shall adopt, on a proposal from the Commission 
and  after  consulting  the  European  Parliament,  measures  establishing  multiannual  financial  guidelines 
for  managing  the  assets  of  the  Research  Fund  for  Coal  and  Steel  and  technical  guidelines  for  the 
research programme of the Research Fund for Coal and Steel’.  
See  Chapter  4  on  ‘Compliance,  implementation  and  preparing  proposals’  of  the  ‘Better  Regulation’ 
Toolkit  #40,  page  345:  ‘Explain  the  choice  of  instrument  -  Has  the  simplest  form  of  Union  action 
(instrument) been chosen?’ 

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• 

Consistency with existing policy provisions in the policy area 

The proposal is part of a legal package revising the RFCS and its Research Programme. It will 
be  divided  into  two  new  proposals  for  Council  Decisions:  one  establishing  the  measures 
necessary  for  the  implementation  of  Protocol  No  37  and  one  laying  down  the  multiannual 
financial and technical guidelines for managing the assets.  

Consistency with other Union policies 

• 
The EU Competitiveness Compass7, presented by the Commission in January 2025, sets out a 
new  roadmap  of  measures  for  the  next  years  to  boost  Europe’s  dynamism  and  economic 
growth  with  industrial  competitiveness  and  decarbonisation  amongst  the  transformational 
imperatives as identified in the Draghi report. Together with the need to close the innovation 
gap and reducing excessive dependencies and increasing security, decarbonisation is seen as a 
powerful  driver  of  growth,  which  needs  to  be  integrated  with  industrial,  competition, 
economic and trade policies.  

On  26  February  2025,  the  Commission  followed  up  by  presenting  a  joint  roadmap  for 
decarbonisation  and  competitiveness  with  its  Clean  Industrial  Deal8.  It  aims  at  transitioning 
Europe to a decarbonised economy by 2050 and providing a framework supporting European 
industry  with  a  stronger  business  case  for  climate  neutral  investments  in  energy-intensive 
industries, circularity and clean tech. The Clean Industrial Deal sets out concrete measures for 
this purpose and mentions steel among industrial products for which demand can be shaped 
significantly through private procurement. It also makes references to the implementation of 
the  2024  Net  Zero  Industry  Act9,  which  aims  at  reinforcing  manufacturing  capacity  of  net 
zero  technologies  in  Europe,  and  the  European  Green  Deal10,  which  committed  to  support 
clean steel breakthrough technologies leading to a zero-carbon steel making process by 2030. 
It was also accompanied by an Action Plan for Affordable Energy11 to strengthen the Energy 
Union  and  proposing  actions  to  secure  affordable,  efficient  and  clean  energy  for  all 
Europeans.  
Additionally,  the  European  Steel  and  Metals  Action  Plan12,  published  by  the  European 
Commission  on  19  March  2025,  aims  at  supporting  a  sustainable  and  competitive  steel 
production for the European Union. As part of its focus on de-risking decarbonisation projects 
through lead markets and public support, the plan highlights the role of the RFCS to provide 
important funding for the steel sector at the innovation stage to support the transition to clean 
steel. It further announced already an ‘overall reform of the Research Fund for Coal and Steel, 
to  simplify  and  accelerate  investments  in  steel  research,  including  research  on  defence 
applications’.  

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COM(2025) 30 final 
COM(2025) 85 
Regulation  (EU)  2024/1735  of  the  European  Parliament  and  of  the  Council  of  13  June  2024  on 
establishing  a  framework  of  measures  for  strengthening  Europe’s  net-zero  technology  manufacturing 
ecosystem and amending Regulation (EU) 2018/1724, (OJ L, 2024/1735, 28.6.2024) 
COM(2019) 640 final 
COM/2025/79 final 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions  ‘A  European  Steel  and  Metals 
Action Plan’, COM(2025) 125 final 

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Finally,  the  Methane  Regulation13,  adopted  in  2024,  aims  at  reducing  methane  emissions in 
the  energy  sector,  and  introduces  requirements  for  reporting  and  mitigating  methane 
emissions from coal mines.   

The  Competitiveness  Compass  highlighted  the  need  for  measures  on  decarbonisation,  to  be 
further complemented by action on horizontal enablers, such as by simplifying the regulatory 
environment, reducing burden and favouring speed and flexibility. This also links to the wider 
discussion on simplifying the complex landscape of European Funding programmes to make 
Union funding more effective and impactful. In the context of the Commission’s proposal of 
16 July 2025 for an ambitious and dynamic Multiannual Financial Framework, an emphasis is 
placed  on  providing  for  more  flexibility;  for  simpler,  more  streamlined  and  harmonised 
financial programmes; and for a competitiveness boost. 

The  recent  policy  developments  outlined  above  are  consistent  with  the  RFCS  Research 
Programme  objectives  of  supporting  the  coal  and  steel  sectors  in  their  transition.  It  is 
necessary  to  ensure  that  the  RFCS  Research  Programme  is  adapted  accordingly,  and  that  it 
allows the necessary investments to accelerate the decarbonisation for both sectors. To ensure 
long  term  consistency  with  other  relevant  EU  policies,  priorities  addressed  under  the  RFCS 
Research  Programme  could  be  taken  into  account  in  other  EU  funding  programmes  after 
2030. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  basis  is  the  second  paragraph  of  Article  2  of  Protocol  No  37  that  provides  for 
adoption  of  measures  establishing  multiannual  financial  guidelines  for  managing  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 and technical guidelines for the 
research programme of the Research Fund for Coal and Steel.  

• 

Subsidiarity (for non-exclusive competence)  

The  proposed  changes  to  the  RFCS  Research  Programme  can  only  be  made  at  EU  level, 
through the revision of the existing legislation. 

• 

Proportionality 

The  proposal  is  necessary  for  adopting  the  measures  establishing  multiannual  financial 
guidelines  for  managing  the  assets  and  technical  guidelines  for  the  RFCS  Research 
Programme. 

• 

Choice of the instrument 

Having regard to the second paragraph of Article 2 of Protocol No 37, this Council Decision 
is  to  be  adopted  by  the  Council  acting  by  qualified  majority  on  a  proposal  from  the 
Commission and with the consultation of the European Parliament.   

13 

Regulation  (EU)  2024/1787  of  the  European  Parliament  and  of  the  Council  of  13  June  2024  on  the 
reduction of methane emissions in the  energy sector and amending Regulation (EU) 2019/942 (OJ L, 
2024/1787, 15.7.2024, ELI: http://data.europa.eu/eli/reg/2024/1787/oj). 

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3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The  proposal  is  based  on  results  of  the  ex-ante  evaluation,  which  carries  out  a  monitoring 
exercise  of  the  RFCS  Research  Programme  for  the  period  2021-2024  and  reports  from  the 
Technical Groups for the years 2022 and 2023. 

• 

Stakeholder consultations 

The  RFCS  stakeholders  have  been  involved  in  several  ad-hoc  meetings,  specific  Advisory 
Group meetings (of the Coal Advisory Group and Steel Advisory Group), such as in the joint 
meetings  on  19  September  2025  and  12  May  2025,  and  the  Coal  and  Steel  Committee 
(COSCO), last on 23 September 2025. A dedicated, public consultation event was also carried 
out on 19 June 2025.  

• 

Collection and use of expertise 

The monitoring of RFCS Research Programme programming period 2021-2024 in the ex-ante 
evaluation,  carried  out  in  cooperation  with  the  Research  Executive  Agency,  together  with 
consultations of stakeholders, provided the necessary expertise.  

• 

Impact assessment 

An impact assessment is not necessary for the proposed revision. 

This Council Decision concerns an amendment to an already existing legislation based on the 
Protocol  No  37  and  only  leads  to  a  small  impact.  In  such  cases,  the  Better  Regulation 
toolbox14 clarifies that no impact assessment is required. Moreover, the European Steels and 
Metals Action Plan of 19 March 2025 announced a proposal for a reform of the RFCS for the 
same year and already determined, based on the analysis conducted for the Action Plan, the 
main policy orientation of the reform: “to simplify and further accelerate investments in steel 
research, including research on defence applications.” However, the proposed revision is still 
supported  by  the  analysis  of  an  ex-ante  evaluation,  as  required  by  Article  34  of  Regulation 
(EU, Euratom) 2024/2509. 

• 

Regulatory fitness and simplification 

The  proposal  is  based  on  the  results  of  the  ex-ante  analysis  exercise  that  accompanies  the 
proposal. This includes considerations of how to simplify and accelerate the support offered 
by  the  RFCS  Research  Programme,  including  ways  to  increase  flexibility  and  predictability 
for potential applicants. 

• 

Fundamental rights 

The proposal is in line with the protection of fundamental rights.  

4. 

BUDGETARY IMPLICATIONS 

The proposal does not create any new liabilities to be charged to the General Budget under the 
current MFF. 

14 

See Tool #7 of the European Commission’s Better Regulation toolbox. 

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5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

A monitoring and assessment of the implementation of the RFCS Research Programme will 
be carried out at the end of 2027. 

• 

Explanatory documents (for directives) 

Not applicable. 

• 

Detailed explanation of the specific provisions of the proposal 

This  Council  Decision  will  lay  down  the  financial  and  technical  guidelines  of  the  Research 
Fund for Coal and Steel. 

The parallel amendment of Council Decision 2003/76/EC for the implementation of Protocol 
No  37  extends  the  financial  envelope  of  the  Research  Programme  to  EUR  200  million  per 
year  to  accelerate  R&I  investment  in  sectors  concerned  and  extend  the  range  of  actors 
involved. The increased budget allows for upward alignment of the funding rates with the EU 
research  funding  programmes  allowing  for  greater  participation  of  public  and  academic 
entities. 

This present Decision supports this by providing for these higher funding rates for industry, 
which will better support industrial research investment and outputs. It also foresees the use of 
the  mutual  insurance  mechanism  which  will  allow  to  reduce  the  guarantees  required  from 
applicants and larger percentage of pre-financing available. 

It also allows for increased flexibility of instruments by abandoning the prescribed allocation 
of funding to annual and ‘Big ticket’ calls and foresees more predictable planning by adopting 
biannual  work  programmes,  while  at  the  same  reducing  the  time  from  idea  to  grant  by 
introducing two call deadlines every year and a streamlined range of project types.   

It  clarifies the conditions related to security concerns in projects with dual use (civilian and 
military) applications. 

Articles 10 until 18 set out the multiannual technical guidelines for the Research Programme, 
with  revised  general  and  specific  research  objectives  and  call  conditions,  which  were 
previously  laid  down  in  Council  Decision  2008/376/EC.  Articles  19  until  26  set  out  the 
multiannual financial guidelines for managing the assets, which were previously laid down in 
Council Decision 2003/77/EC.   

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2025/0398 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the adoption of the Research Programme of the Research Fund for Coal and Steel, on 
the multiannual technical guidelines for this programme, on the multiannual financial 
guidelines for managing the assets of the Research Fund for Coal and Steel, and 
repealing Decisions 2003/77/EC and 2008/376/EC 

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 Parliament1, 

Whereas: 

(1) 

(2) 

(3) 

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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)  …/…2,  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.   

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. 

To  that  effect,  and  in  line  with  the  objectives  of  the  Research  Programme  of  the 
Research Fund for Coal and Steel (‘the Research Programme’) adopted under Council 
Decision  2008/376/EC3,  the  funding  should  duly  consider  the  evolving  policy  needs 
and  Union’s  priorities  as  identified  in  the  Competitiveness  Compass4,  the  Clean 
Industrial Deal5, the European Steel and Metals Action Plan6 and the European Green 
Deal7. 

OJ C […], […], p. […]. 
Council Decision (EU) .../... of ...  ... (OJ ...). 
Council  Decision  2008/376/EC  of  29  April  2008  on  the  adoption  of  the  Research  Programme  of  the 
Research Fund for Coal and Steel and on the multiannual technical guidelines for this programme (OJ L 
130, 20.5.2008, p. 7, ELI: http://data.europa.eu/eli/dec/2008/376/oj). 
Communication from the Commission to the European Parliament, the European Council, the Council, 
the European Economic and Social Committee and the Committee of the Regions  ‘A Competitiveness 
Compass for the EU’, COM(2025) 30 final. 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic and Social Committee and the Committee of the Regions ‘The Clean Industrial Deal: A joint 
roadmap for competitiveness and decarbonisation’, COM(2025) 85 final. 

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(4) 

(5) 

(6) 

(7) 

(8) 

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 these sectors. 

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

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

The replacement of the Decision 2008/376/EC is necessary to simplify the landscape 
of Union funding programmes, notably 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),  as  set  out  in  Regulation  (EU) 
2021/695  of  the  European  Parliament  and  of  the  Council8,  as  well  as  its  successor. 
That  is  needed  to  allow  for  complementarities  between  various  programmes  in  the 
sectors  related  to  the  coal  and  steel  industry.  The  changes  in  the  corporate 
management of funding tools as well as Regulation (EU, Euratom) 2024/2509 of the 
European  Parliament  and  of  the  Council9  becoming  a  ‘single  rulebook’  resulted  in  a 
need to align the technical guidelines for the Research Programme. Combined with the 
changes in the implementation of the Research Programme, they further strengthen the 
case  for  replacing  Decision  2008/376/EC  in  order  to  achieve  the  investment 
objectives. 

The  Research  Programme  should  finance  actions  on  the  basis  of  open  calls.  The 
actions  should  primarily  take  the  form  of  research  projects.  Maintaining  the  same 
funding  rate  in  the  Research  Programme,  while  it  was  raised  in  the  other  Union 
research  funding  programmes,  resulted  in  a  significantly  lower  proportion  of 
applications  for  funding.  Consequently,  it  is  necessary  to  align  the  funding  rates 
applicable  to  those  actions    with  those  in  the  proposal  of  the  successor  for  Horizon 
Europe, allowing in particular 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  the  beneficiaries,  and  also  to  reduce  the  burden  on 

6 

7 

8 

9 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions  ‘A  European  Steel  and  Metals 
Action Plan’, COM(2025) 125 final. 
Communication from the Commission to the European Parliament, the European Council, the Council, 
the European Economic and Social Committee and the Committee of the Regions ‘The European Green 
Deal’, COM(2019) 640 final. 
Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing 
Horizon  Europe  –  the  Framework  Programme  for  Research  and  Innovation,  laying down  its  rules  for 
participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013 
(OJ L 170, 12.5.2021, p. 1, ELI: http://data.europa.eu/eli/reg/2021/695/oj). 
Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 
2024  on  the  financial  rules  applicable  to  the  general  budget  of  the  Union  (OJ  L,  2024/2509,  ELI: 
http://data.europa.eu/eli/reg/2024/2509/oj). 

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applicants  in  providing  bank  guarantees,  it  is  appropriate  to  extend  the  use  of  the 
mutual  insurance mechanism established by Article 37 of Regulation (EU) 2021/695 
to the Research Programme. 

(10)  Directive  2010/75/EU  of  the  European  Parliament  and  of  the  Council10  created  the 
Innovation  centre  for  industrial  transformation  and  emissions.  By  collecting  and 
analysing information on innovative techniques, the centre contributes inter alia to the 
minimisation  of  pollution,  decarbonisation,  resource  efficiency,  a  circular  economy 
using fewer or safer chemicals relevant to the activities in the scope of 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 Programme’s projects should be shared  with the centre.. 

(11)  To  ensure  that  all  available  assets  are  committed  within  four  years,  the  investment 
objectives  of  the  asset  management  operations  should  be  revised.  It  should  be 
specified  that  the  assets  are  to  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 this updated investment objective. 

(12)  The  financial  guidelines  should  enable  a  flexible  approach  as  regards  the  technical 
aspects of implementation and should determine appropriate investment instruments to 
achieve  the  investment  objectives.  The  rules  pertaining  to  the  way  investments  are 
conducted,  namely  related  to  asset  allocation  principles  and  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 adopted pursuant to Article 60 of 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 
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 the detailed guidelines. 

(13)  To ensure financial transparency it is necessary to provide to the Member States, in an 
annual  report,  the  information  on  management  operations  carried  out  under  the 
financial guidelines, including information on allocation to the different asset classes, 
and explain any major change in the strategic asset allocation.  

(14)  Regulation  (EU,  Euratom)  2024/2509  applies  to  the  Research  Programme.  It  lays 
down the rules on the establishment and the implementation of the general budget of 
the Union. 

(15) 

In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) 
No  883/2013  of  the  European  Parliament  and  of  the  Council11,  Council  Regulations 

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11 

Directive  2010/75/EU  of  the  European  Parliament  and  of  the  Council  of  24  November  2010  on 
industrial  emissions  (integrated  pollution  prevention  and  control)  (OJ  L  334,  17.12.2010,  p.  17, 
ELI: http://data.europa.eu/eli/dir/2010/75/oj). 
Regulation  (EU,  Euratom)  No  883/2013  of  the  European  Parliament  and  of  the  Council  of  11 
September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and 
repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council 

EN 

8 

  EN 

 
(Euratom, EC) No 2988/9512, (Euratom, EC) No 2185/9613 and (EU) 2017/193914, 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  Regulation  (EU,  Euratom)  No  883/2013  and  (Euratom,  EC)  No  2185/96  the 
European  Anti-Fraud  Office  (OLAF)  may  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  Council15.  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  the  EPPO,  and  to  ensure  that  any  third  parties 
involved in the implementation of Union funds grant equivalent rights. 

(16) 

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 Council16. 

(17)  Due to the changes required to the multiannual technical and financial guidelines laid 
down in Council Decisions 2003/77/EC17 and 2008/376/EC those Decisions should be 
replaced. 

(18) 

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

12 

13 

14 

15 

16 

17 

L 

L 

p. 

p. 

1, 

1, 

(OJ 

(OJ 

248, 

312, 

ELI: 

fraud 

against 

interests 

financial 

23.12.95, 

18.9.2013, 

1074/1999 

and  other 

irregularities 

(Euratom)  No 

Regulation 
http://data.europa.eu/eli/reg/2013/883/oj). 
Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European 
Communities 
ELI: 
http://data.europa.eu/eli/reg/1995/2988/oj). 
Council  Regulation  (Euratom,  EC)  No  2185/96 of  11  November  1996  concerning on-the-spot  checks 
and inspections carried out by the Commission in order to protect the European Communities' financial 
(OJ  L  292,  15.11.96,  p.  2,  ELI: 
interests 
http://data.europa.eu/eli/reg/1996/2185/oj). 
Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced  cooperation  on  the 
establishment  of  the  European  Public  Prosecutor’s  Office  (‘the  EPPO’)  (OJ  L  283,  31.10.2017,  p.  1, 
ELI: http://data.europa.eu/eli/reg/2017/1939/oj). 
Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight 
against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29, 
ELI: http://data.europa.eu/eli/dir/2017/1371/oj). 
Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by the Member States 
of  the  Commission's  exercise  of  implementing  powers  (OJ  L  55,  28.2.2011,  p.  13,  ELI: 
http://data.europa.eu/eli/reg/2011/182/oj). 
Council  Decision  2003/77/EC  of  1  February  2003  laying  down  multiannual  financial  guidelines  for 
managing the assets of the ECSC in liquidation and, on completion of the liquidation, the assets of the 
Research 
ELI: 
http://data.europa.eu/eli/dec/2003/77(1)/oj). 

for  Coal 

5.2.2003, 

Fund 

Steel 

(OJ 

and 

29, 

25, 

p. 

L 

EN 

9 

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(19) 

In order to ensure smooth transition, Decision 2008/376/EC should continue to apply 
to the financing of actions resulting from proposals submitted to calls published until 
31 December 2026. 

(20) 

 For reasons of clarity on the rules applicable to actions, it is appropriate to defer the 
application of this Decision to 1 January 2027, 

HAS ADOPTED THIS DECISION:  

Chapter I 

General Provisions 

Article 1 
Subject matter 

This Decision establishes the Research Programme of the Research Fund for Coal and Steel 
(‘the Research Programme’) and lays down the objectives of the Programme and its budget, 
the multiannual technical guidelines for the implementation of the Research Programme and 
the  multiannual  financial  guidelines  for  managing  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 (‘the assets’). 

Article 2 
Definitions 

For the purposes of this Decision, the following definitions apply: 

(1) 

‘coal’ means any of the following: 

(a) 

hard  coal,  including  the  high  and  medium-ranking  ‘A’  coals  (sub-bituminous 
coals) as defined in the international codification system of coal of the United 
Nations Economic Commission for Europe; 

(b)  hard coal briquette; 

(c) 

(d) 

coke and semi-coke derived from hard coal; 

lignite,  including  the  low-ranking  ‘C’  coals  (or  ortho-lignites)  and  the  low-
ranking ‘B’ coals (or meta-lignites) as defined in the codification referred to in 
point (a); 

(e) 

coke and semi-coke derived from lignite; 

(2) 

'legal entity' means any of the following: 

(a) 

(b) 

a natural person;  

a  legal  person  created  and  recognised  as  such  under  Union,  national  or 
international law, which has legal personality and the capacity to act in its own 
name, exercise rights and be subject to obligations;  

(c) 

an entity which does not have legal personality as referred to in Article 200(2), 
point (c), of Regulation (EU, Euratom) 2024/2509; 

(3) 

‘action results’ means any tangible or intangible outcome of a given action, such as 
data, knowledge or know-how, independent of its form or nature and whether or not 
it can be protected, as well as any rights attached to it, including intellectual property 
rights; 

EN 

10 

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(4) 

‘steel’ means any of the following: 

(a) 

raw materials for iron and steel production; 

(b)  pig iron (including hot metal) and ferro-alloys; 

(c) 

crude  and  semi-finished  products  of  iron,  ordinary  steel  or  special  steel 
(including products for reuse and rerolling); 

(d)  hot-finished products of iron, ordinary steel or special steel (coated or uncoated 

products, excluding steel castings, forgings and powder metallurgy products); 

(e) 

(f) 

end products of iron, ordinary steel or special steel (coated or uncoated); 

products of the first-stage processing of steel that can enhance the competitive 
position of the iron and steel products referred to in points (a) to (e);  

(5) 

‘valorisation’  means  the  use  of  action  results  in  the  activities  other  than  those 
covered by the action concerned, including commercial deployment. 

1. 

2. 

3. 

4. 

5. 

6. 

1. 

Article 3 
Programme objectives 

The Research Programme shall support the competitiveness of sectors related to the 
coal  and  steel  industry  by  providing  support  for  collaborative  research  in  those 
sectors, including on dual-use civil and military applications.  

The  Research  Programme  shall  also  provide  support  for  clean  steel  breakthrough 
technologies,  contributing  to  the  objectives  of  climate  neutrality  in  the  Union,  and 
reinforcing  Union  strategic  autonomy  across  the  steel  value  chain.  In  addition,  the 
Research  Programme  shall  provide  support  for  research  projects  for  managing  the 
just  transition  of  formerly  operating  coal  mines  or  coal  mines  in  the  process  of 
closure  and  related  infrastructure  and  the  regions  in  which  they  are  located, 
particularly  those  facing  significant  social,  economic  or  environmental  challenges 
arising from the transition of the coal and steel sectors.  

The Research Programme shall promote valorisation to enhance the market relevance 
of research outcomes and support their potential for scalable deployment. 

The  Research  Programme  shall  be  consistent  with  the  political,  scientific,  and 
technological objectives of the Union, and shall complement the activities carried out 
in the Member States.  

The  Research  Programme  shall  support  synergies  aiming  at  accelerating 
technological development to deployment status. 

The Research Programme shall support research projects aimed at the objectives set 
out for coal in Article 4 and for steel in Article 5. 

Article 4  
Research objectives for coal  

Research  projects  shall  aim  to  accelerate  the  transition  towards  a  climate-neutral 
Union economy by 2050, with the objective of supporting the phasing out of fossil 
fuels,  especially  coal,  and  supporting  the  social,  economic  and  ecological 
revitalisation  of  coal  regions,  developing  alternative  activities  on  former  mine  sites 
and avoiding or addressing the environmental damage from coal mines in the process 

EN 

11 

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2. 

3. 

4. 

5. 

1. 

2. 

3. 

18 

19 

20 
21 

of  closure,  formerly  operating  coal  mines  and  the  regions  in  which  coal  mines  are 
located. 

Special  attention  shall  be  given  to  strengthening  Union  leadership  in  managing  the 
transition  of  formerly  operating  coal  mines  and  coal-related  infrastructure  through 
technological and non-technological solutions, while supporting technology and non-
technology  transfer.  Research  activities  with  those  objectives  shall  present  tangible 
climate and environmental benefits in line with the objective of climate neutrality by 
2050.  

Issues  concerning  safety  in  coal  mines  in  the  process  of  closure  and  formerly 
operating  coal  mines  with  a  view  to  improving  working  conditions,  occupational 
health  and  safety,  as  well  as  environmental  issues  harmful  to  health  shall  be  taken 
into account in the research projects. 

Research projects shall seek to eliminate the impact of coal mines in the process of 
closure and of formerly operating mines on the atmosphere, water and soils.  

including  methane 

Research  projects  shall  envisage  new  and  improved  technologies  to  avoid 
environmental  pollution, 
leakage,  associated  greenhouse 
emissions and contamination of water tables, of coal mines in the process of closure, 
formerly  operating  mines  and  their  surroundings  (including  the  atmosphere,  land, 
soils  and  water),  solutions  for  managing  and  reusing  mining  wastes,  improving 
circularity, restoring environment, and technologies to restore and protect sites from 
long-term effects. 

Article 5 
Research objectives for steel 

Research  projects  shall  aim  to  develop,  demonstrate  and  improve  near-zero-carbon 
iron and steel production processes with a view to raising product quality, increasing 
productivity and decreasing strategic dependencies.  

Research projects shall focus on meeting the requirements of steel users to develop 
new  net-zero-carbon  products  and  on  creating  new  lead  markets,  while  reducing 
emissions and environmental impacts, in accordance with the objectives of Directive 
2003/87/EC of the European Parliament and of the Council18, Directive 2010/75/EU 
of  the  European  Parliament  and  of  the  Council19,  [Regulation  (EU)  …20]  and 
Regulation (EU) 2024/1781 of the European Parliament and of the Council21. 

In  both  steel  production  and  steel  use,  the  research  projects  shall  enable  the 
conservation of resources, the preservation of ecosystems, the transition to a circular 
economy and safety issues. 

Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a 
system  for  greenhouse  gas  emission  allowance  trading  within  the  Union  and  amending  Council 
Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32, ELI: http://data.europa.eu/eli/dir/2003/87/oj). 
Directive  2010/75/EU  of  the  European  Parliament  and  of  the  Council  of  24  November  2010  on 
industrial  and  livestock  rearing  emissions  (integrated  pollution  prevention  and  control)  (OJ  L  334, 
17.12.2010, p. 17, ELI: http://data.europa.eu/eli/dir/2010/75/oj). 
[reference to be inserted after IAA adoption] 
Regulation (EU) 2024/1781 of the European Parliament and of the Council of 13 June 2024 establishing 
a  framework  for  the  setting  of  ecodesign  requirements  for  sustainable  products,  amending  Directive 
(EU)  2020/1828  and  Regulation  (EU)  2023/1542  and  repealing  Directive  2009/125/EC  (OJ  L, 
2024/1781, 28.6.2024, ELI: http://data.europa.eu/eli/reg/2024/1781/oj) 

EN 

12 

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4. 

5. 

1.  

(a) 

(b) 

(c) 

2. 

1. 

2. 

3. 

1. 

2. 

1. 

Research  projects  shall  pay  particular  attention  on  the  continuous  development  of 
skills adapted to the evolution of the sector towards new net-zero-carbon processes, 
as well as the improvement of working conditions, and promotion of high health and 
safety standards.  

Research projects shall accelerate the use of digital technologies, including artificial 
intelligence and machine learning, in steel production and use. 

Article 6 
Budget 

The financial envelope of the Research Programme for the period 1 January 2027 to 
31 December 2030 shall consist of the following: 

any  amounts  of  the  annual  allocation  which  were  made  available  to  the  Research 
Fund for Coal and Steel as a result of the cancellation of budgetary commitments;  

any remaining assets and profits generated by remaining assets; 

the amounts of previous annual allocations not yet entered in the budget.     

The  financial  envelope  shall  be  committed  in  its  entirety  through  two  work 
programmes  covering  the  years  2027  to  2028  and  2029  to  2030.  The  work 
programmes  shall  provide  for  yearly  calls  for  proposals  in  accordance  with  Article 
10.   

Article 7  
Eligibility 

Any legal entity, established within the territory of a Member State may participate 
in the Research Programme and apply for financial assistance.  

Any legal  entity in candidate countries may participate in the Research Programme 
without  receiving  any  financial  contribution,  unless  otherwise  provided  under  the 
relevant European Agreements and their additional Protocols, and in the decisions of 
the respective Association Councils. 

Any legal entity from third countries may participate in the Research Programme on 
the basis of individual projects without receiving any financial contribution, provided 
that such participation is in the Union’s interest. 

Article 8 
Implementation and financial contribution   

The Research Programme shall be implemented in accordance with Regulation (EU, 
Euratom)  2024/2509,  under  direct  management  by  the  Commission,  through 
executive agencies.  

Funding may be provided in the form of grants in accordance with Regulation (EU, 
Euratom) 2024/2509.  

Article 9 
Security 

Dual-use research projects carried out under the Research Programme shall comply 
with  the  applicable  national  security  rules,  including  rules  on  the  protection  of  EU 

EN 

13 

  EN 

2. 

3. 

4. 

5. 

6. 

1. 

2. 

3. 

4. 

1. 

2. 

classified  information  against  unauthorised  disclosure,  and  shall  comply  with  any 
other relevant Union and national law. 

Where appropriate, proposals shall include a security self-assessment identifying any 
security issues and detailing how those issues will be addressed in order to comply 
with the relevant Union and national law. 

Where appropriate, the Commission shall carry out a security scrutiny procedure for 
proposals raising security issues.4.  Legal  entities  participating  in  a  project  shall 
ensure  the  protection  against  unauthorised  disclosure  of  EU  classified  information 
used  or  generated  by  the  action.  They  shall  provide  proof  of  personal  security 
clearance or facility security clearance from the relevant national security authorities, 
prior to the start of the activities concerned. 

If  independent  external  experts  have  to  deal  with  EU  classified  information,  the 
appropriate security clearance shall be required before those experts are appointed. 

Where appropriate, the Commission may carry out security checks. 

Proposals or actions which do not comply with the security rules under this Article 
may be rejected or terminated at any time. 

Chapter II 

Technical guidelines 

Article 10  
Calls  

Calls  for  proposals  shall  be  published  twice  a  year.  The  content  and  publication  of 
calls for proposals shall be consistent with Article 197 of Regulation (EU, Euratom) 
2024/2509.                                            

The  proposals  shall  relate  to  the  research  objectives  laid  down  in  Articles  4  and  5, 
and where applicable, to the priority objectives listed in the call conditions.                   

The evaluation, award and selection procedure for funded projects shall take place in 
conformity with Articles 201, 202 and 203 of Regulation (EU, Euratom) 2024/2509. 

For  the  purposes  of  Article  153(3)  of  Regulation  (EU,  Euratom)  2024/2509,  the 
evaluation  committee  may  be  composed  partially  or  fully  of  independent  external 
experts.  

Article 11 
Grants 

Projects  based  on  selected  proposals  shall  form  the  subject  of  a  grant  agreement. 
Grant agreements shall follow the corporate model grant agreements drawn up by the 
Commission,  taking  into  account,  as  appropriate,  the  nature  of  the  activities 
concerned.  

Participants  shall  implement  actions  in  compliance  with  the  conditions  and 
obligations  set  out  in  this  Decision,  Regulation  (EU,  Euratom)  2024/2509  and  the 
grant agreement.  

EN 

14 

  EN 

1. 

2. 

1. 

2. 

1. 

2. 

Article 12 
Funding rates 

A single funding rate per action shall apply for all activities it funds. The maximum 
rate per action shall be fixed in the call conditions. 

Up to 100 % of total eligible costs of an action under the Research Programme may 
be reimbursed.  

In the case of legal entities which by their legal form are for-profit making or which 
have  a  legal  or  statutory  purpose  to  distribute  profits  to  their  shareholders  or 
individual members, up to 70% of the total eligible costs may be reimbursed. By way 
of  exception,  SMEs  shall  be  eligible  for  a  funding  rate  of  up  to  100%  of  the  total 
eligible costs. 

Article 13 
Indirect costs 

Indirect eligible costs shall be 25% of the total direct eligible costs, excluding direct 
eligible costs for subcontracting, financial support to third parties and any unit costs 
or  lump  sums  which  include  indirect  costs.  Where  appropriate,  indirect  costs 
included in unit costs or lump sums shall be calculated using the flat rate referred to 
in the first sentence. 

Notwithstanding  paragraph  1,  if  provided  for  in  the  call  conditions,  indirect  costs 
may be declared in the form of a lump sum or unit costs. 

Article 14 
Eligible costs 

By way of derogation from Article 193(2) of Regulation (EU, Euratom) 2024/2509, 
costs of resources made available by third parties by means of in-kind contributions 
shall be eligible up to the direct eligible costs of the third party. 

By way of derogation from Article 195(2) of Regulation (EU, Euratom) 2024/2509, 
income  generated  by  the  valorisation  shall  not  be  considered  to  be  revenues  of  the 
action. 

Article 15 
Managing action results 

Beneficiaries shall manage their action results in accordance with the obligations set out in the 

call conditions and grant agreement. 

Article 16 
Use of the mutual insurance mechanism 

Contributions to a mutual insurance mechanism established by Article 37 of Regulation (EU) 
2021/695 shall cover the risk associated with the recovery of sums due by beneficiaries and 
shall be considered as a sufficient guarantee under Article 155 of Regulation (EU, Euratom) 
2024/2509.  No  additional  guarantee  or  security  shall  be  accepted  from  beneficiaries  or 
imposed upon them.  

EN 

15 

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1. 

2. 

1. 

2. 

1. 

2. 

1. 

2. 

Article 17 
Technical reports 

For all projects the beneficiaries shall draw up periodical reports. Such reports shall 
be  used  to  describe  the  technical  progress  made.  The  reports  shall  be  also  shared  
with the Commission’s innovation centre for industrial transformation and emissions 
referred to in Article 27a of Directive 2010/75/EU. 

On  completion  of  the  work,  the  beneficiaries  shall  provide  the  Commission  with  a 
final  report  comprising an assessment  of  exploitation  and impact.  The Commission 
shall  publish  that  report  in  full  or  in  summarised  form  depending  on  the  strategic 
relevance of the project. 

Article 18 
Final activity review 

The  Commission  shall  conduct  a  final  review  of  activities  after  the  closing  of  the 
Research  Programme.  The  report  containing  the  review  shall  be  forwarded  to  the 
Coal and Steel Committee. 

The Commission may appoint independent highly qualified experts to assist with the 
final activity review. 

Chapter III 

Financial guidelines 

Article 19 
Financial guidelines  

The assets shall be managed to provide annual  or semi-annual payments within the 
limits  of  the  annual  allocations  in  order  to  finance  collaborative  research  in  the 
sectors  related  to  the  coal  and  steel  industry.  The  annual  or  semi-annual  payments 
shall be financed by the net revenue from the investments and by the cash amounts 
generated by selling part of the assets, up to the amount of annual allocations.  

The Commission shall review Articles 20 to 26 where it considers it appropriate. To 
that  end,  the  Commission  shall  reassess  the  operation  and  effectiveness  of  the 
financial  guidelines  and  shall  propose  any  amendments  where  it  considers  it 
appropriate. 

Article 20 
Use of funds  

The  assets  of  the  ECSC  in  liquidation,  including  both  its  loan  portfolio  and  its 
investments,  shall  be  used  as  necessary  to  meet  the  remaining  obligations  of  the 
ECSC  in  liquidation,  in  terms  of  its  outstanding  borrowings,  of  its  commitments 
resulting from previous operating budgets, and of any unforeseeable liability. 

The  assets  not  necessary  to  meet  the  remaining  obligations  of  the  ECSC  in 
liquidation  shall  be  prudently  invested  by  the  Commission,  in  accordance  with  the 
chosen investment horizon and used to fund research in the sectors related to the coal 
and steel industry.  

EN 

16 

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Article 21 
Investment horizon, objective and risk tolerance  

The  assets  shall  be  invested  with  the  objective  of  preserving,  and  where  possible 
enhancing,  the  value  of  those  assets  to  meet  the  liquidity  needs  arising  from  the 
funding calls (the ‘investment objective’). The investment objective shall be pursued 
over the investment horizon and delivered with a high confidence level.  

The assets shall be managed in accordance with prudential rules and the principles of 
sound financial management and in accordance with the rules and procedures set out 
by  the  accounting  officer  of  the  Commission  and  with  the  risk  management 
framework of the Commission.  

The  investment  objective  shall  be  served  through  the  implementation  of  a  prudent 
investment  strategy  based  on  diversification  across  eligible  asset  classes, 
geographical areas, issuers and maturities (the ‘investment strategy’). The investment 
strategy  shall  be  set  out  taking  into  account  the  investment  horizon  and  the  size  of 
remaining  assets,  and  to  ensure  that  necessary  funds  are  available  in  a  sufficiently 
liquid form as and when needed.  

The investment strategy shall be expressed in the form of a strategic asset allocation, 
which shall set out the indicative target allocations to different categories of eligible 
financial assets.  

The Commission shall reflect the strategic asset allocation in a strategic benchmark 
(the ‘benchmark’), against which the performance of the assets shall be compared. 

The investment  strategy and the benchmark shall be set  out  by the Commission, in 
accordance  with  the  rules  adopted  pursuant  to  Article  60  of  Regulation  (EU, 
Euratom)  2024/2509.  In  case  the  assets  are  only  invested  in  current  bank  accounts 
and  term  deposits,  an  investment  benchmark  and  investment  strategy  shall  not  be 
required. 

The investment strategy and the benchmark may be modified by the Commission in 
the  event  of  a  duly  documented  and  motivated  change  in  economic  conditions,  a 
substantial  change  in  the  needs  and  situation  of  the  contributing  instruments  or  a 
significant change in inflow or outflow estimates. The procedure for modification of 
the investment strategy shall be the same as for its initial adoption.  

The  investment  strategy  shall  be  established  taking  into  account  the  investment 
horizon and risk tolerance of the assets. 

Article 22  
Asset allocation principles and eligible investments 

Sufficient  diversification  among  and  within  all  asset  classes  shall  be  assured  to 
reduce  investment  risks.  In  principle,  the  riskier  or  less  liquid  an  asset,  the  less 
concentrated the exposure shall be. 

Exposure to the different asset classes and diversification may also be achieved via 
investments into collective investment undertakings or exchange-traded products.  

The assets shall be invested only in the following instruments denominated in euro: 

money market assets;  

fixed income securities;  

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

1. 

2. 

3. 

(a) 

(b) 

EN 

17 

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(c) 

4. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

5. 

6. 

7. 

22 

23 

24 

regulated collective investments in debt and equity. 

The  assets  shall  obtain  exposure  to  the  asset  classes  referred  to  in  paragraph  3 
through  investment  in  the  following  instruments  or  by  engaging  in  the  following 
operations: 

deposits;  

money  market  instruments  and  money  market  funds  which  offer  daily  liquidity,  as 
regulated  by  Regulation  (EU)  2017/1131  of  the  European  Parliament  and  of  the 
Council22;  

debt instruments, such as bonds, bills and notes, and securitised instruments in line 
with  the  simple,  transparent  and  standardised  criteria  set  out  in  Regulation  (EU) 
2017/2402 of the European Parliament and of the Council23;  

collective  investment  undertakings  covered  by  Directive  2009/65/EC  of  the 
European  Parliament  and  of  the  Council24,  including  exchange-traded  funds  which 
invest  in  equity  or  in  debt  instruments  where  maximum  losses  cannot  exceed 
amounts invested; 

repurchase agreements in accordance with the principle established by Article 215(2) 
of Regulation (EU, Euratom) 2024/2509;  

reverse repurchase agreements;  

lending  operations  with 

securities 
including 
Clearstream and Euroclear, or with leading financial institutions specialising  in that 
type of operation. 

recognised  clearing  systems, 

Derivatives,  in  the  form  of  forward  and  future  contracts  and  swaps,  shall  be  used 
solely for the purposes of efficient portfolio management and not for the purposes of 
speculation or leveraging of positions. Those derivatives may be used for adjustment 
of duration, mitigation of credit or other relevant risk or changes in asset allocation 
consistent with the investment policy. 

The assets may be invested in liquid money market assets and bonds denominated in 
US dollars issued by sovereign and supranational entities solely for the purposes of 
diversification and exposure to another interest rate curve. Any currency risk shall be 
hedged  by  making  appropriate  use  of  swaps  or  other  instruments  for  foreign 
exchange hedging, as specified in paragraph 5. 

The Commission may in accordance with the rules adopted pursuant to Article 60 of 
Regulation  (EU,  Euratom)  2024/2509  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 
from  time  to  time  by  the  International  Monetary  Fund  and  subject  to  hedging  of 

Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money 
market funds (OJ L 169, 30.6.2017, p. 8, ELI: http://data.europa.eu/eli/reg/2017/1131/oj). 
Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying 
down a general framework for securitisation and creating a specific framework for simple, transparent 
and  standardised  securitisation,  and  amending  Directives  2009/65/EC,  2009/138/EC  and  2011/61/EU 
and  Regulations  (EC)  No  1060/2009  and  (EU)  No  648/2012  (OJ  L  347,  28.12.2017,  p.  35,  ELI: 
http://data.europa.eu/eli/reg/2017/2402/oj). 
Directive  2009/65/EC  of  the  European  Parliament  and  of  the  Council  of  13  July  2009  on  the 
coordination  of  laws,  regulations  and  administrative  provisions  relating  to  undertakings for  collective 
investment 
(OJ  L  302,  17.11.2009,  p.  32,  ELI: 
http://data.europa.eu/eli/dir/2009/65/oj). 

transferable 

securities 

(UCITS) 

in 

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currency  risk.  Any  decision  to  include  new  asset  classes,  investment  operations  or 
currencies of advanced economies shall be supported by a substantiated justification 
per asset class, operation or currency, of how the expanded investment possibilities 
will enhance the risk-return performance of the assets. That justification shall include 
an assessment of the operational capacities needed to support those new investment 
possibilities.  

Article 23 
Environmental, social, and governance considerations 

The  investment  strategy  shall  be  implemented  by  favouring  environmental,  social  and 
governance  investments  when  available  and  possible,  provided  that  they  align  with  risk 
management  criteria.    The  detailed  guidelines  applicable  to  environmental,  social  and 
governance  investments  may  be  set  out  by  the  Commission, in  accordance  with the  rules 
adopted pursuant to Article 60 of Regulation (EU, Euratom) 2024/2509. 

Article 24 
Transfer to the general budget of the Union  

The net revenue from the investments of the assets, and the cash amounts generated by selling 
part  or  the  totality  of  the  assets,  shall  be  transferred  from  the  ECSC  in  liquidation  and,  on 
completion  of  the  liquidation,  the  assets  of  the  Research  Fund  for  Coal  and  Steel  when 
necessary  to  meet  the  payment  obligations  from  the  budget  line  directed  to  research 
programmes for sectors related to the coal and steel industry.  

Article 25 
Remaining amounts 

Any unspent and recovered amounts remaining after the implementation of the last call shall 
be made available to the Research Fund for Coal and Steel.   

Article 26  
Accounting and management procedures 

1. 

2. 

3. 

The management of the funds shall be accounted for  in the annual accounts for the 
ECSC in  liquidation  and,  on  completion  of the  liquidation,  the  annual  accounts  for 
the  assets  of  the  Research  Fund  for  Coal  and  Steel.  Those  accounts  shall  be  based 
upon  and  presented  in  accordance  with  the  Commission’s  Accounting  Rules  as 
adopted  by  the  Commission’s  accounting  officer,  taking  into  account  the  specific 
nature of the ECSC in liquidation and, on completion of the liquidation, the assets of 
the  Research  Fund  for  Coal  and  Steel.  The  accounts  shall  be  approved  by  the 
Commission and examined by the Court of Auditors. The Commission shall engage 
external firms to carry out an annual audit of its accounts. 

The  Commission  shall  carry  out,  in  relation  to  the  ECSC  in  liquidation  and,  on 
completion of the liquidation, the assets of the Research Fund for Coal and Steel, the 
management  operations  referred  to  in  Articles  20  to  26  under  the  internal 
Commission rules and procedures.  

A detailed report on management operations carried out under Articles 20 to 26 shall 
be  drawn  up  annually  by  the  Commission  and  sent  to  the  Member  States.  In  the 
annual report, the Commission shall include information on the use of the different 

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asset classes, on the reasons behind its choice to invest in specific asset classes and 
on the observed performance of each asset class. 

Chapter IV 

Transitional and final provisions 

1. 

2. 

1. 

2. 

3. 

4. 

Article 27 
Decision on the approval of the funding of certain research projects 

The  Commission  shall  adopt  an  implementing    decision  on  the  approval  of  the 
funding of research projects ,, where the estimated amount of the Union contribution 
under the Research Programme is equal to or more than EUR 5 million; 

This  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 28(3). 

 Article 28 
Management of the Research Programme and committee procedure 

The  Commission  shall  manage  the  Research  Programme.  It  shall  be  assisted  by 
technical and advisory groups, established by a Commission Decision. 

The Commission shall be assisted by the Coal and Steel Committee.  That committee 
shall be a committee within the meaning of Regulation (EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011 shall apply.  

Where  the  opinion  of  the  committee  is  to  be  obtained  by  written  procedure,  that 
procedure shall be terminated without result when, within the time-limit for delivery 
of  the  opinion,  the  chair  of  the  committee  so  decides  or  a  simple  majority  of 
committee members so request. 

Article 29 
Repeal and transitional measures  

Decisions 2003/77/EC and 2008/376/EC are repealed.  

However, Decision 2008/376/EC shall continue to apply to the financing of actions resulting 
from proposals submitted to calls published until 31 December 2026. 

Where  necessary,  any  remaining  tasks  of  the  Coal  and  Steel  Committee  established  by 
Decision 2008/376/EC  related  to  the  actions  referred  to  in  the  second  subparagraph  of  this 
Article  shall be undertaken by the Coal and Steel Committee referred to in Article 28 of this 
Decision. 

Article 30 
Entry into force and application  

This  Decision  shall  enter  into  force  on  the  twentieth  day  following  its  publication  in  the 
Official Journal of the European Union. 

It shall apply from 1 January 2027. 

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Done at Brussels, 

For the Council 
The President 

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LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT 

1. 

1.1. 

1.2. 

1.3. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 3 

Title of the proposal/initiative ...................................................................................... 3 

Policy area(s) concerned .............................................................................................. 3 

Objective(s) .................................................................................................................. 3 

1.3.1.  General objective(s) ..................................................................................................... 3 

1.3.2.  Specific objective(s) ..................................................................................................... 3 

1.3.3.  Expected result(s) and impact ...................................................................................... 3 

1.3.4. 

Indicators of performance ............................................................................................ 3 

1.4. 

1.5. 

The proposal/initiative relates to: ................................................................................. 4 

Grounds for the proposal/initiative .............................................................................. 4 

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative ............................................................ 4 

1.5.2.  Added value of EU involvement (it may result from different factors, e.g. 

coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this section 'added value of EU involvement' is the value resulting 
from EU action, that is additional to the value that would have been otherwise 
created by Member States alone. ................................................................................. 4 

1.5.3.  Lessons learned from similar experiences in the past .................................................. 4 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 
other appropriate instruments ....................................................................................... 5 

1.5.5.  Assessment of the different available financing options, including scope for 

redeployment ................................................................................................................ 5 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.2.1. 

2.2.2. 

Duration of the proposal/initiative and of its financial impact .................................... 6 

Method(s) of budget implementation planned ............................................................. 6 

MANAGEMENT MEASURES................................................................................... 8 

Monitoring and reporting rules .................................................................................... 8 

Management and control system(s) ............................................................................. 8 

Justification of the budget implementation method(s), the funding implementation 
mechanism(s), the payment modalities and the control strategy proposed .................. 8 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them............................................................................................................ 8 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio between 

the control costs  and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure) ........................................... 8 

2.3. 

3. 

3.1. 

Measures to prevent fraud and irregularities ................................................................ 9 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE ............ 10 

Heading(s) of the multiannual financial framework and expenditure budget line(s) 
affected ....................................................................................................................... 10 

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3.2. 

Estimated financial impact of the proposal on appropriations ................................... 12 

3.2.1.  Summary of estimated impact on operational appropriations.................................... 12 

3.2.1.1.  Appropriations from voted budget ............................................................................. 12 

3.2.1.2.  Appropriations from external assigned revenues ....................................................... 17 

3.2.2.  Estimated output funded from operational appropriations......................................... 22 

3.2.3.  Summary of estimated impact on administrative appropriations ............................... 24 

3.2.3.1. Appropriations from voted budget .............................................................................. 24 

3.2.3.2.  Appropriations from external assigned revenues ....................................................... 24 

3.2.3.3.  Total appropriations ................................................................................................... 24 

3.2.4.  Estimated requirements of human resources.............................................................. 25 

3.2.4.1.  Financed from voted budget....................................................................................... 25 

3.2.4.2.  Financed from external assigned revenues ................................................................ 26 

3.2.4.3.  Total requirements of human resources ..................................................................... 26 

3.2.5.  Overview of estimated impact on digital technology-related investments ................ 28 

3.2.6.  Compatibility with the current multiannual financial framework.............................. 28 

3.2.7.  Third-party contributions ........................................................................................... 28 

3.3. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

Estimated impact on revenue ..................................................................................... 29 

DIGITAL DIMENSIONS .......................................................................................... 29 

Requirements of digital relevance .............................................................................. 30 

Data ............................................................................................................................ 30 

Digital solutions ......................................................................................................... 31 

Interoperability assessment ........................................................................................ 31 

Measures to support digital implementation .............................................................. 32 

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1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Proposal  for  a  Council  Decision  laying  down  the  measures  necessary  for  the 
implementation 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  and 
repealing Decision 2003/76/EC 

1.2. 

Policy area(s) concerned  

Research and Innovation  

1.3. 

Objective(s) 

1.3.1.  General objective(s) 

The  Research  Fund  for  Coal  and  Steel  (RFCS)  is  a  EU  funding  programme 
supporting  research  projects  in  the  coal  and  steel.  It  co-finances  through  grants 
research and innovation projects in the areas of coal and steel. 

In the current legal base, the fund supports projects at universities, research centres, 
and private companies. Research activities of the RFCS shall focus on technologies 
leading to near-zero-carbon steelmaking and research projects for managing the just 
transition  of  formerly  operating  coal  mines  or  coal  mines  in  the  process  of  closure 
and related infrastructure. 

Objectives of the reform  

The proposed reform aims to simplify and improve the RFCS functioning, making it 
more accessible and attractive to industry, including for SMEs, research centers and 
academia. Revised call conditions will help reduce investment risks for industry. The 
joint decarbonisation and competitiveness objectives set out in the Competitiveness 
Compass and the Clean Industrial  Deal  (together with  the specific targeted sectoral 
implementation  outlined  in  the  Steel  and  Metals  Action  Plan),  as  well  as  other 
relevant support initiatives targeting the transition of coal and steel sectors, can only 
be achieved if private capital is supported by a coherent and coordinated framework 
of public funding. 

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1.3.2. 

Specific objective(s) 

Under  the  proposed  reform  of  the  RFCS,  the  Research  Programme  has  the  objective  to 
support  collaborative  research  in  the  coal  and  steel  sectors,  including  research  on 
dual use aspects. The Research Programme shall also provide support for clean steel 
breakthrough  technologies,  contributing  to  the  objectives  of  climate  neutrality  in 
Europe,  and  reinforcing  EU  strategic  autonomy  across  the  steel  value  chain.  In 
addition,  the  Research  Programme  shall  provide  support  for  research  projects  for 
managing the just transition  of  formerly operating coal  mines or coal  mines in  the 
process  of  closure  and  related  infrastructure  and  the  regions  in  which  they  are 
located.  The  Research  Programme  also  aims  at  promoting  the  valorisation  of 
research outcomes to enhance their market relevance and support their potential for 
scalable  deployment.  The  Research  Programme  aims  to  be  consistent  with  the 
political, scientific, and technological objectives of the Union, and shall complement 
the activities carried out in the Member States. 1.3.3. 
result(s)  and 
impact 

Expected 

The expected impacts of the reform are the following: 

-  The  increase  of  the  annual  assignments  would allow  for  more  ambitious  research 
projects,  which  could  help  reaching  climate  targets  by  2050  while  maintaining 
competitiveness.   

-  The  reform  would  also  allow  to  implement  the  revised  funding  rates  that  would 
address  stakeholders’  recommendations,  namely 
that  of  private  companies, 
universities  and  research  centres,  and  contribute  to  attract  more  investments  and  a 
wider participation to the RFCS programme.   

- The streamlining of research objectives, more adapted to current realities faced by 
the steel and coal sectors, would help to maximise the impact of the programme. The 
proposed  reform  also  introduces  a  requirement  to  conduct  deployment  and 
commercialisation  activities  in  Europe,  to  ensure  the  best  impact  of  research  and 
innovation projects for EU competitiveness. 

1.3.4. 

Indicators of performance 

The  implementation  of  the  RFCS  programme    is  currently  monitored  by  the 
European Research Executive Agency (REA), which is responsible for executing the 
programme,  in  collaboration  with  the  Commission’s  Directorate-General  for 
Research  &  Innovation  (DG  RTD),  and  reporting  to  the  Commission  on  its 
implementation  status. Without  prejudging  the  upcoming  Cost-Benefit-Analysis  for 
the delegation of implementation tasks to Executive Agencies, under the future MFF, 
DG  RTD  envisages  to  delegate  this  task  to  an  Executive  Agency.  This  work  will 
require  regular  coordination  meetings  and  annual  reporting,  which  provides 
structured  feedback  on  how  funded  projects  contribute  to  broader  EU  policy 
objectives. Reporting will also inform about the attractiveness of the programme, by 
providing data on the evolution of number of proposals. Regular discussion with the 
advisory  committee  and  the  Coal  and  Steel  Committee  (COSCO)  will  also  help  to 
assess how the RFCS reform is addressing R&I needs, and recommendations made 
by stakeholders.  

The  technical  progress  of  specific  project  portfolios  under  the  RFCS  will  also 
continue  to  be  monitored  by  the  Coal  and  Steel  Technical  Groups  (‘the  Technical 

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Groups’ or TGs), comprising one group for coal and five for steel. These groups are 
composed  of  recognised  high-level  experts  with  substantial  experience  in  their 
respective  sub-sectors.  Information  about  the  Technical  Groups  –  including  their 
membership, meeting agendas, and other details  – is made publicly available in the 
Register  of  Commission  Expert  Groups.  Management  of  the  TGs  is  currently 
entrusted  to  REA,  as  established  in  the  Memorandum  of  Understanding  between 
REA and DG RTD. 

The  Technical  Groups  provide  a  comprehensive  overview  of  technological 
developments within their specific domains. This assessment is based on information 
collected from  RFCS-funded projects,  primarily  through dedicated annual  meetings 
between the Technical Groups and project coordinators, currently organised by REA. 

Additionally, the Technical Groups are expected to produce the necessary content for 
REA  to  provide  the  annual  reports  offering  a  broader  portfolio  analysis  that  also 
considers  developments  in  related  areas  and  parallel  European  programmes.  This 
ensures  a  more  integrated  understanding  of  progress  and  impact  across  the 
innovation ecosystem. 

1.4. 

The proposal/initiative relates to:  

 a new action  
 a new action following a pilot project / preparatory action39  

☒ the extension of an existing action  

☒ a merger or redirection of one or more actions towards another/a new action 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

The  challenges  that  the  coal  and  steel  sectors  are  facing  and  the  political 
prioritisation to jointly support decarbonisation and competitiveness, combined with 
the challenges of the financial regime of the RFCS, the limited effectiveness of the 
2021 reform  and the recent  feedback from stakeholders point to the need to revise 
the  legal  base  of  the  RFCS  in  order  to  enhance  its  attractiveness  and  maximise  its 
impact. 

Not  only  the  call  conditions  require  a  revision,  especially  in  term  of  funding  rates, 
but  also  a  further  selling  of  the  fund’s  assets  is  necessary  in  order  to  continue 
to 
providing  adequate  R&I  support  during 
decarbonisation.  RFCS  is  an  industry-oriented  programme  that  has  supported 
research, development and innovation activities among the two communities of coal 
and  steel  since  2003.  It  is  important  that  the  fund  is  also  continuing  to  support  the 
industry now and in the short term to guarantee a rapid transition. 

transition  phase 

the  difficult 

Thus,  halting  the  current  regime  of  using  part  of  the  ECSC  assets  in  liquidation  to 
fund the programme (set to expire at the end of 2027) is unsustainable and will not 
allow for a meaningful programme if only funded by revenues and not assets.  

In this regard, there is a timely opportunity to revise the legal base of the programme 
and strengthen the role of research and innovation in effectively supporting the coal 
and  steel  sectors  during  their  transition.  The  current  call  conditions,  research 

39 

As referred to in Article 58(2), point (a) or (b) of the Financial Regulation. 

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objectives, and available budget are not leveraging enough R&I investment from the 
industry  and  do  not  offer  attractive  call  conditions  for  the  academia  nor  for  the 
industry. 

1.5.2.  Added  value  of  EU  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the  purposes  of  this  section  'added  value  of  EU  involvement'  is  the  value  resulting 
from  EU  action,  that  is  additional  to  the  value  that  would  have  been  otherwise 
created by Member States alone. 

As  the  RFCS  legal  basis  is  based  on  Protocol  37  annexed  to  the  Treaties,  it  falls 
under  the  competence  of  the  EU.  The  measures  implementing  the  Protocol  are 
established  in  a  Council  Decision  and  the  revision  of  which  belongs  to  the 
Commission’s exclusive right of initiative for legislative proposals. 

Over  the  years,  the  RFCS  Programme  has  provided  significant  advancements  for 
both sectors. These advancements are compiled in the recent reports from the RFCS 
technical  groups  for  coal  and  steel    and  are  based  on  strong  collaboration  between 
entities  from  different  Member  States  of  the  EU  and  from  different  organization 
types.  For  steel  companies  and  universities  participating  in  research  projects,  the 
benefits ranged from cost reduction (resulting from savings in energy use and/or raw 
materials),  increased  productivity,  improved  sustainability  and  or  gaining  new 
market  share  through  the  development  of  innovative  steel  products.  For  the  coal 
sector, the RFCS contributed to improving health and safety in mines and minimising 
the impact of post-mining activities on the environment. 

The  RFCS  has  been  designed  to  be  an  industrial  research  programme,  which  is 
specifically  tailored  to  support  cross-border  collaboration,  and  at  the  same  time  it 
allows industry-academia collaboration with the aim to support dedicated industrial 
research.  

The proposed reform would strongly contribute to EU’s long-term policy objectives 
and  address  stakeholder  needs.  The  frontloading  of  investment  would  allow  for 
ambitious research projects, which could help reaching climate targets by 2050 while 
maintaining competitiveness. It would also allow to finance the revised funding rates 
that  would  address  stakeholders’  recommendations  and  contribute  to  attract  more 
investments and a wider participation to the RFCS programme. The streamlining of 
research objectives, more adapted to current realities faced by the sectors, would help 
to  maximise  the  impact  of  the  programme.  The  proposed  reform  also  introduces  a 
requirement  to  conduct  deployment  and  commercialisation  activities  in  Europe,  to 
ensure the best impact of R&I projects for EU competitiveness. 

Regarding  the  timing,  the  reform  would  ideally  take  effect  in  January  2027.  While 
this timing has not specifically been requested by stakeholders, it would offer more 
attractive call conditions earlier. It would correlate with a series of measures aiming 
at supporting energy intensive industries (for instance the Industrial Decarbonisation 
Accelerator  Act),  as  described  in  the  introduction.  Indeed,  this  reform  is  to  be 
understood  in  a  broader  policy  context  in  which  energy-intensive  sectors  are 
considered  key  actors  for  the  EU  industrial  competitiveness  and  decarbonisation 
strategy.   

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1.5.3.  Lessons learned from similar experiences in the past 

The  findings  of  the  internal  evaluation  conducted  for  the  period  2021-2024 
highlighted  that  the  RFCS  has  proven  its  efficiency  via  the  yearly  annual  call  in 
supporting  coal  and  steel  sectors  through  excellent  collaborative  research  and 
involvement of the private sector. However, it showed that it has also failed to meet 
the expectations of the 2021 reform with respect to the Big Ticket calls, reflected by 
the  underspending  of  the  programme  The  programme  and  in  particular  the  Big 
Tickets calls in the present conditions are not attractive enough to yield large private 
investment necessary to meet current industrial decarbonisation objectives. 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 

other appropriate instruments 

The RFCS programme is subject to Protocol 37 of the Treaty on European Union, on 
the  financial  consequences  of  the  expiry  of  the  ECSC  treaty  and  on  the  Research 
fund for Coal and Steel. The Protocol explicitly says that the revenues of the assets 
of  the  ECSC  in  liquidation  shall  be  used  exclusively  for  research,  outside  the 
research framework programme, in the sectors related to the coal and steel industry. 
However, synergies with the next Horizon Europe and the Competitiveness Fund can 
be established. The Research  Fund for Coal  and  Steel  can address  full spectrum of 
research challenges in the coal and steel sectors, as well as leverage additional public 
and private investments in R&I. Thus, it can contribute to further strengthening the 
European  research  and  innovation  landscape  and  accelerate  the  commercialisation 
and diffusion of innovation. 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

Funding will consist exclusively from the remaining assets of the European Coal and 
Steel Community in liquidation, as well as generated revenues from these assets. The 
ECSC was financed by (i) levies that most coal and steel producers had to pay based 
on their production and (ii) the contributions of the countries that joined the EU later 
on. These resources constitute the major part of the assets generated. The fund will 
continue to exist as such until the depletion of the assets. 

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1.6. 

Duration of the proposal/initiative and of its financial impact 

☒ limited duration  

–  ☒ in effect from 1 January 2027  

–  ☒ financial impact from 2027 to 2030 at the latest for commitment appropriations 

and from 2027 to 2034 for payment appropriations.  

 unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Method(s) of budget implementation planned  

☒ Direct management by the Commission 

–  ☒ by its departments, including by its staff in the Union delegations;  

–  ☒ by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated 

–   international organisations and their agencies (to be specified) 

–   the European Investment Bank and the European Investment Fund 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation 

–   public law bodies 

–   bodies governed by private law with a public service mission to the extent that 

they are provided with adequate financial guarantees 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  are  provided  with 
adequate financial guarantees 

–   bodies or persons entrusted with the implementation of specific actions in the 
common  foreign  and  security  policy  pursuant  to  Title  V  of  the  Treaty  on 
European Union, and identified in the relevant basic act 

–  bodies  established  in  a  Member  State,  governed  by  the  private  law  of  a 
Member  State  or  Union  law  and  eligible  to  be  entrusted,  in  accordance  with 
sector-specific  rules,  with  the  implementation  of  Union  funds  or  budgetary 
guarantees,  to  the extent that such bodies are controlled by public law bodies or 
by bodies governed by private law with a public service mission, and are provided 
with adequate financial guarantees in the form of joint and several liability by the 
controlling bodies or equivalent financial guarantees and which may be, for each 
action, limited to the maximum amount of the Union support. 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

The monitoring and reporting rules for this programme will follow the requirements 
laid down in the Financial Regulation and its Implementing Rules.  

The progress of the programme towards its objectives will be measured through the 
monitoring  conducted  by  the  European  Executive  Agency,  currently,  the  European 
Research Executive Agency (REA) with the support of the RFCS Technical Groups 
(5 for steel and 2 for coal).  

All data on the programme management processes (applications, success rates, time 
to grant, type of beneficiaries, etc.) will be collected and stored in the e-Grants Data 
Warehouse. 

2.2.  Management and control system(s)  

2.2.1. 

Justification  of  the  budget  implementation  method(s),  the  funding  implementation 
mechanism(s), the payment modalities and the control strategy proposed 

The  Research  Programme  of  the  Research  Fund  for  Coal  and  Steel  will  be 
implemented  through  direct management entrusted to the  bodies referred  in Article 
62(1),  point  (a  )  of    Regulation  (EU,  Euratom)  EU,  Euratom)  2024/2509.  More 
specifically, the Commission will continue to rely to a large extent on the European 
Research  Executive  Agency  (REA),  established  in  accordance  with  the  Council 
Regulation 58/2003. The delegation of activities to this Executive Agency is subject 
to  a  mandatory  independent  ex-ante  Cost-Benefit  Analysis  and  the  Agency 
undergoes regular evaluations performed by external  experts. The above-mentioned 
Cost Benefit Analysis will also consider the costs of control and supervision. Interim 
evaluations  conducted  in  2012  and  in  2015  confirm  the  high  efficiency  and  added 
value  of  the  Executive  Agencies  in  programme  implementation.  The  assets  of  the 
ECSC in liquidation and, on completion of the liquidation, the assets of the Research 
Fund  for  Coal  and  Steel  shall  be  managed  to  provide  annual  payments  within  the 
limits of the allocation in order to finance collaborative research in the sectors related 
to  the  coal  and  steel  industry.  The  annual  payments  shall  be  financed  by  the  net 
revenue  from  the  investments  and  by  the  proceeds  generated  by  selling  part  of  the 
assets of the ECSC in liquidation and, on completion of the liquidation, the assets of 
the Research Fund for Coal and Steel, up to the annual amount of payment credits set 
out by the designated service of the Commission. The financial guidelines have been 
reviewed or supplemented, if appropriate. To this end, the Commission shall reassess 
the  operation  and  effectiveness  of  the  financial  guidelines  and  shall  propose  any 
appropriate  amendments.  The  control  strategy  of  the  Research  Programme  of  the 
Research  Fund  for  Coal  and  Steel  will  be  aligned  with  the  one  for  Framework 
Programme  for  Research  &  Innovation.  It  will  therefore  benefit  from  all  the 
simplification measures introduced under Horizon Europe.  Simplification measures 
have  been  introduced  to  facilitate  the  implementation  of  the  Research  Programme 
Funding will be provided in the form of grants in accordance with Regulation (EU, 
Euratom)  2024/2509.  The  proposed  changes  in  the  funding  modalities  (lump  sum) 
will  ensure  alignment  with  those  of  the  EU  research  programme  and  contribute  to 
minimising the vulnerability to financial errors. The proposal will be implementing a 
single funding rate per action for all activities it funds. The maximum rate per action 
would be fixed in the call conditions. In the proposed reform, up to 100 % of total 

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eligible costs of an action under the Research Programme may be reimbursed, except 
for  for-profit  legal  entities  where  up  to  70%  of  the  total  eligible  costs  may  be 
reimbursed. By way of exception, SMEs shall be eligible for a funding rate of up to 
100% of the total eligible costs. The proposed reform foresees to establish the way 
indirect costs may be declared in the call conditions, which should indicate whether 
unit costs or lump sums can be applied. The main driver to adopt lump sum funding 
will not be reduction of the error rate, but the achievement of all the objectives of the 
programme. The programme will benefit from cost effective services provided in the 
framework  of  the  implementation  of  programmes  under  direct  management 
(centralised  evaluation  expert  management,  ex  post  audit,  IT,  etc).  The  control 
strategy  is  based  on  procedures  for  selecting  the  best  projects  and  translating  them 
into legal instruments: 

 - project and contract management throughout the lifetime of every project; ex-ante 
checks on 100 % of cost claims, 

- certificates  on the financial statements above a certain  threshold, and certification 
on methodologies to calculate unit costs or ex-ante assessment on a voluntary basis;  

- ex post audits (random and risk-based) on a sample of paid claims for grants under 
actual costs;  

- regular project reviews on the technical implementation and results for all grants; 

- ex-post technical reviews on a sample of grants. 

This control strategy and approach has demonstrated its financial efficiency since the 
delegation of the programme to REA, as reported in the Agency’s triannual external 
evaluation.  Also, the results from the ex-post controls demonstrate that this control 
strategy allows for maintaining a legality/regularity risk below the 2% threshold. 

The detected rate of error for the last two years of RFCS is 2.03 %, with a 'residual' 
error rate of 1.70 %, after taking account of all recoveries and corrections that have 
been or will be implemented. With the introduction of the lump sums and the SCOs, 
it is expected to maintain a detected error rate below 2%. 

Currently,  the  European  Research  Executive  Agency  (REA)  is  implementing  the 
RFCS. Without prejudging the upcoming Cost-Benefit-Analysis for the delegation of 
implementation  tasks  to  Executive  Agencies,  under  the  future  MFF,  DG  RTD 
envisages to delegate this task to an Executive Agency. 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

The implementation of RFCS calls will be managed under conditions and following 
business  processes  similar  to  the  management  of  the  Framework  Programme  for 
Research and  Innovation (FP). As  a result, risks  are similar to  the FP  and relate in 
particular to  achievements of the objective set in the positively evaluated proposals 
and ensuring legality/regularity in the disbursed grants for reimbursement of incurred 
costs.  

In so far as possible, REA will apply similar ex ante and ex post control strategies to 
ensure  legality/regularity  of  operations.  This  includes  a  financial  circuit  with 
counterweight where the central finance unit verifies all spending operations and an 
ex  post  control  strategy  agreed  with  RTD  and  implemented  in  close  collaboration 

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31 

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with DG RTD’s ex post control unit. Error rates found through prior years’ ex post 
controls have demonstrated to be contained within the tolerable rate of error of 2%. 

2.2.3.  Estimation  and  justification  of  the  cost-effectiveness  of  the  controls  (ratio  between 
the control costs  and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure)  

The  narrower  estimate  of  the  costs  of  the  control  system  (evaluation,  selection, 
project  management,  ex-ante  and  ex-post  control)  are  in  the  range  of  2-4  %  across 
the Commission services responsible for the implementation of the Horizon Europe 
Framework Research Programme. It is estimated that the Research Programme of the 
Research Fund for Coal and Steel is in the same range of 2-4%. This is considered to 
be  a  reasonable  cost  in  the  light  of  the  efforts  needed  to  ensure  that  objectives  are 
achieved  and  the  number  of  transactions  involved.  The  expected  risk  of  error  at 
payment  for  grants  with  a  funding  model  based on  the  reimbursement  of  ineligible 
costs  is  2.0-3.0  %.  The  risk  of  error  at  closure  (after  the  effect  of  controls  and 
corrections) is below 2% for the Research Programme of the Research Fund for Coal 
and Steel. The expected risk of error for grants with a funding model based on lump 
sum funding is close to 0% (at payment and at closure). The overall expectation for 
error  rates  will  depend  on  the  balance  between  the  two  methods  of  funding 
(reimbursement of eligible costs and lump sums). The Commission aims to apply the 
lump sum funding model where appropriate. However, the main driver to adopt lump 
sum  funding  will  not  be  reduction  of  the  error  rate,  but  the  achievement  of  all  the 
objectives of the programme. 

2.3.  Measures to prevent fraud and irregularities  

Robust ex-ante controls applied to the entire expenditure and sample- and risk-based 
ex-post controls both contribute to detect and correct errors. 

The  services  charged  with  the  implementation  of  the  Research  Programme  budget 
are determined to fight against fraud at all stages of the grant management process. 
They  have  developed,  and  are  implementing,  common  and  sectorial  anti-fraud 
strategies,  including  an  enhanced  use  of  intelligence,  especially  using  advanced  IT 
tools, training and information for staff, and awareness-raising presentations towards 
grant beneficiaries and Technical groups. These efforts will continue and anti-fraud 
and  risk  assessment  activities  will  be  further  enhanced  thanks  to  the  current 
development  by  central  services  of  the  corporate  ARACHNE  risk-scoring  tool. 
Overall the measures proposed should continue to have a positive impact on the fight 
against  fraud,  that  will  continue  under  the  Research  Programme,  and  reinforced 
scientific  evaluation  and  control.  It  should  be  underlined  that  detected  fraud  has 
continuously  been  very  low  in  proportion  to  the  total  research  and  innovation 
expenditure,  nevertheless  the  services  charged  with  the  implementation  of  the 
Research  Programme  budget  remain  fully  committed  to  combat  it.  The  legislation 
will  ensure  that  audits,  reviews,  and  investigations  can  be  carried  out  by  the 
Commission services, including the European Anti-Fraud office (OLAF), as well as 
the European Public Prosecutor Office (EPPO), using the standard provisions already 
in use under the Research Programme. 

In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) 
No  883/2013  of  the  European  Parliament  and  of  the  Council  ,  Council  Regulation 
(Euratom, EC) No 2988/95 ,(Euratom, EC) No 2185/96  and  (EU) 2017/1939 , the 
financial interests of the Union are to be protected through proportionate measures, 
including the prevention, detection, correction and investigation of irregularities and 

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32 

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fraud,  the  recovery  of  funds  lost,  wrongly  paid  or  incorrectly  used  and,  where 
appropriate,  the  imposition  of  administrative  sanctions.  In  particular,  in  accordance 
with  Regulation  (EU,  Euratom)  No  883/2013  and  (Euratom,  EC)  No  2185/96  the 
European Anti-Fraud Office (OLAF) may 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.  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 the EPPO, and to ensure that any 
third parties involved in the implementation of Union funds grant equivalent rights. 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

•  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  

01 20 03 02 - Coal 

01 20 03 01 - Steel 

01 

01 

Diff./Non-
diff.40 

from 
EFTA 
countries
41 

from 
candidate 
countries 
and 
potential 
candidates
42 

From 
other 
third 
countries 

other assigned 
revenue 

Diff. 

Diff. 

NO 

NO 

NO 

YES 

NO 

NO 

NO 

YES 

•  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Heading of 
multiannual 
financial 
framework 

Number  

Diff./Non-
diff. 

from 
EFTA 
countries 

Contribution  

from 
candidate 
countries 
and 
potential 
candidates 

from 
other 
third 
countries 

other assigned 
revenue  

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

Diff./Non
-diff. 

Diff./Non
-diff. 

Diff./Non
-diff. 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

40 
41 
42 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

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3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–  ☒ The proposal/initiative requires the use of operational appropriations, as explained below 

3.2.1.1.  Appropriations from voted budget 

Heading of multiannual financial framework  

Number 

01 

EUR million (to three decimal places) 

DG: RTD 

Year 

2027 

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

Year 

2033 

Year 

2034 

TOTAL 
2028-2034 

GRAND 
TOTAL 

Operational appropriations  

Budget line 

Budget line 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes  
Budget line 

(3) 

TOTAL 
appropriations 
for DG RTD 

Commitments 

=1a+1b+3 

Payments 

=2a+2b+3 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 
0.000 

0.000 

0.000 
0.000 

0.000 

0.000 
0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 
0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 
0.000 

0.000 

EN 

35 

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TOTAL 
operational 
appropriations  (including 
to 
contribution 
agency) 
decentralised 

Commitments 

Payments 

TOTAL 
an 
appropriations 
administrative  nature  financed  from  the 
envelope for specific programmes  

of 

(4) 

(5) 

(6) 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

2027 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

TOTAL 
MFF 
2028-
2034 

GRAND 
TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 
appropriations under 
HEADING 1 
of the multiannual 
financial framework 

Commitments 

=4+6 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Payments 

=5+6 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

0.000 

Year 

2027 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

0.000 

TOTAL 
MFF 
2028-
2034 

0.000 

0.000 

GRAND 
TOTAL 

Commitments 

operational 
(all 

TOTAL 
• 
appropriations 
operational headings) 
• 
an 
administrative  nature  financed  from  the 
envelope  for  specific  programmes  (all 
operational headings) 

appropriations 

TOTAL 

Payments 

of 

(4) 

(5) 

(6) 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL appropriations 
Under Heading 1 to 6 
of the multiannual financial 
framework 
(Reference amount) 

Commitments 

=4+6 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Payments 

=5+6 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Heading of multiannual financial  framework  

7 

Administrative expenditure 

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36 

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DG:RTD 

 Human resources  
 Other administrative expenditure  

TOTAL DG RTD 

Appropriations  

Year  Year  Year  Year 

Year 

Year 

Year 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

0.780  0.780  0.780  0.780 

0.050  0.050  0.050  0.050 

0.830  0.830  0.830  0.830 

0.101 

0.000 

0.101 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 
MFF 
2028-
2034 

3.221 

0.200 

3.421 

POST 
2034 

GRAND 
TOTAL 

0.000 

0.000 

3.221 

0.200 

3.421 

TOTAL appropriations under HEADING 7 of the 
multiannual financial framework  

(Total 
commitments 
= Total 
payments) 

0.830  0.830  0.830  0.830 

0.101 

0.000 

0.000 

3.421 

0.000 

3.421 

EUR million (to three decimal places) 

TOTAL appropriations under 
HEADINGS 1 to 7 

Commitments 

0.830  0.830  0.830  0.830  0.101  0.000  0.000 

3.421  0.000 

3.421 

of the multiannual financial framework   Payments 

0.830  0.830  0.830  0.830  0.101  0.000  0.000 

3.421  0.000 

3.421 

3.2.1.2.  Appropriations from external assigned revenues 

Heading of multiannual financial framework  

01 

Research and Innovation 

EUR million (to three decimal places) 

DG: RTD 

Year 

Year 

Year 

Year 

Year 

2027 

2028 

2029 

2030 

2031 

Year  Year  Year  TOTAL 
MFF  
2032 
2028-
2034 

2033 

2034 

TOTA
L MFF 
2021-
2027 

GRAN
D 
TOTA
L 

EN 

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Operational appropriations  

Budget line : 01 20 03 01 and 01 20 
03 02 

Commitmen
ts 

(1a) 

200.000  

200.000  

200.000  

200.000  

Payments 

(2a) 

112.000  

227.000  

273.000  

216.000  

Budget line 

Commitmen
ts 

Payments 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes  
Budget line 

(3) 

196.00
0 

39.00
0 

40.00
0 

25.00
0 

600.000 

1.016.00
0 
0.000 

200.00
0 
112.00
0 
0.000 

0.000 

0.000 

0.000 

TOTAL appropriations 
for DG RTD 

Commitmen
ts 

Payments 

=1a+1b+
3 

=2a+2b+
3 

200.00
0 
112.00
0 

200.00
0 
227.00
0 

200.00
0 
273.00
0 

200.00
0 
216.00
0 

0.000 

0.000 

0.000 

0.000 

600.000 

196.00
0 

39.00
0 

40.00
0 

25.00
0 

1016.00
0 

200.00
0 
112.00
0 

800.000 

1128.00
0 

0.000 

0.000 

0.000 

80.000 

1128.00
0 

TOTAL operational 
appropriations 

Commitments 

Payments 

Total appropriations of an administrative 
nature  financed  from  the  envelope  for 
specific programmes 

(4) 

(5) 

(6) 

200.000  200.000  200.000  200.000 
112.000  227.000  273.000  216.000 

0.000 
196.000 

0.000 
39.000 

0.000 
40.000 

600.000 
0.000 
25.000  1016.000 

200.000 
800.000 
112.000  1128.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Commitments 

=4+6 

200.000  200.000  200.000  200.000 

0.000 

0.000 

0.000 

0.000 

600.000 

200.000 

800.000 

Payments 

=5+6 

112.000  227.000  273.000  216.000 

196.000 

39.000 

40.000 

25.000  1016.000 

112.000  1128.000 

TOTAL 
appropriations 
under HEADING 
1 of the 
multiannual 
financial 
framework 

Heading of multiannual financial framework  

7 

‘Administrative expenditure’  

DG: RTD 

Year 

Year 

Year 

Year 

Year 

Year 

Year  

Year 
2034 

GRAND 
TOTAL 

EUR million (to three decimal places) 

EN 

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2027 

2028 

2029 

2030 

2031 

2032 

2033 

TOTAL 
MFF 
2028-
2034 

TOTAL 
MFF  
2021-
2027 

 Human resources  
 Other administrative expenditure  
TOTAL DG <…….> 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Appropriations  

0.000 

0.000 

0.000 

0.000 

TOTAL appropriations under HEADING 7 of 
the multiannual financial framework  

(Total 
commitments 
= Total 
payments) 

0.000 

0.000 

0.000  0.000 

0.000 

0.000 

0.000 

0.000 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

2027 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

EUR million (to three decimal places) 

TOTAL 
MFF 
2028-2034 

TOTAL 
MFF 
2021-
2027 

GRAND 
TOTAL 

TOTAL appropriations 
under HEADINGS 1 to 7 

of the multiannual financial 
framework  

Commitments  200.000  200.000 

0.000 

0.000 

0.00 

0.00 

0.00 

0.00 

600.000 

200.00 

800.000 

Payments 

112.000  227.000  273.000  216.000  196.000  39.000  40.000  25.000  1016.000  112.000  1128.000 

3.2.2.  Estimated output funded from operational appropriations (not to be completed for decentralised agencies) 

Indicate 
objectives and 
outputs  

Year  
2024 

Year  
2025 

Year  
2026 

Year  
2027 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

Enter as many years as necessary to show the 
duration of the impact (see Section1.6) 

TOTAL 

EN 

39 

EN 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost 

o
N

Cost 

Total 
No 

Total 
cost 

 

Type43 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 144… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

43 
44 

Outputs are products and services to be supplied (e.g. number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.3.2. ‘Specific objective(s)’  

EN 

40 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3. 

Summary of estimated impact on administrative appropriations  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–  ☒ The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below 

3.2.3.1. Appropriations from voted budget 

VOTED 
APPROPRIATIONS 

HEADING 7 

Year  Year  Year  Year  Year  Year  Year  TOTAL 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

2028-
2034 

Post 
2024 

GRAND 
TOTAL 

Human resources  

0.780 

0.780 

0.780 

0.780 

0.101 

0.000 

0.000 

3.221 

0.000 

Other administrative expenditure  

0.050 

0.050 

0.050 

0.050 

0.000 

0.000 

0.000 

0.200 

0.000 

Subtotal HEADING 7 

0.830 

0.830 

0.830 

0.830 

0.101 

0.000 

0.000 

3.421 

0.000 

Outside HEADING 7 

Human resources  

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Other expenditure of an 
administrative nature 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL HEADING 7 and 
outside HEADING 7 

0.830 

0.830 

0.830 

0.830 

0.101 

0.000 

0.000 

3.421 

0.000 

3.2.4.  Estimated requirements of human resources  

3.221 

0.200 

3.421 

0.000 

0.000 

0.000 

3.421 

–    The proposal/initiative does not require the use of human resources  

–  ☒ The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below 

3.2.4.1.  Financed from voted budget 

Estimate to be expressed in full-time equivalent units (FTEs) 

VOTED APPROPRIATIONS 

Year  Year  Year  Year  Year  Year  Year  POST 

2028 

2029 

2030 

2031 

2032  2033  2034 

2034 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s 

Representation Offices) 

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

• External staff (inFTEs) 

20 02 01 (AC, END from the ‘global envelope’) 
20 02 03 (AC, AL, END and JPD in the EU 

Delegations) 
Admin. Support 
line 
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

01 01 01 02 (AC, END - Indirect research) 

 01 01 01 12 (AC, END - Direct research) 

Other budget lines (specify) - Heading 7 

2 

0 

0 

0 

0 

4 

0 

0 

0 

0 

0 

0 

2 

0 

0 

0 

0 

4 

0 

0 

0 

0 

0 

0 

41 

EN 

2 

0 

0 

0 

0 

4 

0 

0 

0 

0 

0 

0 

2 

0 

0 

0 

0 

4 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

  EN 

 
  
 
 
 
 
 
 
 
 
 
Other budget lines (specify) - Outside Heading 7 

TOTAL 

0 

6 

0 

6 

0 

6 

0 

6 

0 

1 

0 

0 

0 

0 

0 

0 

The  number  of  FTE  are  indicative  and  do  not  prejudge  the  outcome  of  the  ongoing 
negotiations  on  the  next  MFF.  Moreover,  the  additional  resources  for  the  Commission  are 
envisaged for delegation to an Executive Agency under the future MFF, without prejudging 
the upcoming Cost-Benefit Analysis for the delegation of implementation tasks to Executive 
Agencies.  

The staff required to implement the proposal (in FTEs):  

To be covered by 
current staff 
available in the 
Commission 
services  

Exceptional additional staff* 

Establishment 
plan posts 

External 
staff 
(CA, SNEs, INT) 

To be financed 
under Heading 7 
or Research 

To be financed 
from BA line 

To be financed 
from fees 

2 

4 

N/A 

N/A 

N/A 

N/A 

Description of tasks to be carried out by: 

Officials and temporary staff 

External staff 

Two  extra  FTE  will  be  needed  for  managing  the  political  implementation  of  the 
reform, and to execute the reform and oversee the increased financial and programme 
management  activities,  in  addition  to  the  4  offocials  and  temporary  staff  currently 
allocated to RFCS. This reinforcement is temporary and can be reassigned after 2031. 

The  reform  of  the  RFCS  will  lead  to  an  80%  increase  in  annual  allocations  and  to 
revised  call  conditions  for  the  years  2027  until  2030  included.  These  will  result  in a 
higher workload for the RFCS unit in launching the calls and carrying out evaluations. 
The introduction of dual use in the programme will further increase the workload.  An 
additional 4 FTE as contract agents are needed for positions of programme managers 
and  project  officers,  in  addition  to  the  16  currently  allocated  to  RFCS.  The  total 
allocation  needed  will  progressively  diminish  after  2031  as  no  further  calls  are 
launched and projects reach completion. 

3.2.5.  Overview of estimated impact on digital technology-related investments 

Compulsory: the best estimate of the digital technology-related investments entailed 
by the proposal/initiative should be included in the table below.  

Exceptionally,  when  required  for  the  implementation  of  the  proposal/initiative,  the 
appropriations under Heading 7 should be presented in the designated line.  

The appropriations under Headings 1-6 should be reflected as “Policy IT expenditure 
on operational programmes”. This expenditure refers to the operational budget to be 

EN 

42 

  EN 

 
 
 
 
 
 
 
 
used to re-use/ buy/ develop IT platforms/ tools directly linked to the implementation 
of the initiative and their associated investments (e.g. licences, studies, data storage 
etc).  The  information  provided  in  this  table  should  be  consistent  with  details 
presented under Section 4 “Digital dimensions”. 

TOTAL Digital and IT appropriations 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

TOTAL 
MFF 
2028-
2034 

IT expenditure (corporate)  

Subtotal HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Policy IT expenditure on operational 
programmes 

0.520 

0.531 

0.541 

0.552 

0.563 

0.574 

0.586 

3.867 

Subtotal outside HEADING 7 

0.520 

0.531 

0.541 

0.552 

0.563 

0.574 

0.586 

3.867 

TOTAL 

0.520 

0.531 

0.541 

0.552 

0.563 

0.574 

0.586 

3.867 

3.2.6.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

–  ☒ can be fully financed through redeployment within the relevant heading of the 

multiannual financial framework (MFF) 

–    requires use of the unallocated margin under the relevant heading of the MFF 

and/or use of the special instruments as defined in the MFF Regulation 

–    requires a revision of the MFF 

3.2.7.  Third-party contributions  

The proposal/initiative: 

–  ☒ does not provide for co-financing by third parties 

–    provides for the co-financing by third parties estimated below: 

3.3. 

Estimated impact on revenue  

–  ☒ The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

– 

– 

– 

 

 

on own resources  

on other revenue 

  please indicate, if the revenue is assigned to expenditure lines 

In  line  with  article  21.2(b)  of  the  Financial  Regulation,  the  appropriations  related  to  the 
revenue  generated  by  the  Research  Fund  for  Coal  and  Steel  should  be  considered  external 
assigned revenue. Budget lines 01 20 03 02 (Coal) and 01 20 03 01 (Steel) 

EN 

43 

  EN 

 
 
 
 
 
 
 
 
 
 
 
4. 

DIGITAL DIMENSIONS 

The  Research  Fund  for  Coal  and  Steel  uses  the  corporate  tools  described  in  the 
Legal, Financial and Digital Statement of Horizon Europe. 

EN 

44 

  EN