The package is intended to support the green and just transition of the steel industry and coal-mining regions, extending the programme to 2034 and ensuring up to €120 million in annual investments. Ministers also debated the Horizon Europe package for the next EU budget, focusing on the rules for participation and dissemination.
On Friday, 27 February Council has reached agreement on a package of two proposals to reform the Research Fund for Coal and Steel (RFCS). The two Council decisions aim to accelerate and simplify research and innovation investments in support of competitiveness, as well as, of green and just transition of the steel industry sector and the coal-mining regions of the European Union.
Easier access to research money
The reformed RFCS increases annual funding, allowing a total investment of approximately €800m in research and innovation. The reform raises co-funding rates, aligning them with the Horizon Europe programme: industry participants will now receive up to 70 per cent EU funding, while small and medium enterprises, startups and academia can receive up to 100 per cent.
These changes are designed to simplify the EU funding landscape and make the fund more attractive, while paving the way for its future integration with other EU programmes such as the Innovation Fund and Horizon Europe.
Research Fund for Coal and Steel is a key instrument to enhance the competitiveness and sustainability of these critical sectors. – Nicodemos Damianou, Deputy Minister for Research, Innovation and Digital Policy of the Republic of Cyprus
“Research Fund for Coal and Steel marks the first general approach under the Cyprus Presidency. It is a clear signal of our commitment to tangible, impact-oriented results,” said Nicodemos Damianou, Deputy Minister for Research, Innovation and Digital Policy of the Republic of Cyprus. Mr Damianou added that “the Fund is a key instrument to enhance the competitiveness and sustainability of these critical sectors, essential for Europe’s resilience, economic strength and strategic autonomy.”
RFCS was originally established in 2002 following the expiry of the European Coal and Steel Community (ECSC) treaty. The fund uses yearly interest from the remaining ECSC assets to support research and innovation projects that enhance the competitiveness of Europe’s coal and steel industries. Separate from the multiannual financial framework, it operates with its own legal basis.
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Shaping Horizon Europe
Ministers also held a policy debate on the Horizon Europe package for the next EU budget. They focused on the rules for participation and dissemination, and the specific programme implementing Horizon Europe.
Ministers discussed the critical outstanding issues of the Horizon Europe legislative package, with a view to reaching a partial general approach at the next research Council meeting on 29 May 2026. Ministers discussed critical issues, including interlinkages with the European Competitiveness Fund (ECF), European partnerships, funding for research and technology infrastructures, and questions related to research security, dual-use and defence-only research.
