EU Plans Tech Programme Budget Cuts for 2025

The European Union has recently unveiled its proposed draft budget for 2025, amounting to €200 billion. This budget includes significant reductions in technology spending, raising concerns among researchers and innovators across the Union.

Within the draft budget, there is an allocation of €13.5 billion specifically designated for research and innovation. The majority of this amount, €12.7 billion, is earmarked for Horizon Europe, the EU's flagship research program. However, this figure represents a decrease of €100 million compared to the funding allocated in 2024.

Despite the high inflation rates and financial support provided to chip manufacturers through the European Chips Act under Horizon Europe, the proposed budget signifies a tangible cut in real terms for various research projects within the Union.

The EU has also given the green light to a substantial €21 billion regional IPCEI microelectronics project, aiming to bolster the technological capabilities and competitiveness of European industries in the global market.

Furthermore, the draft budget maintains a provision of €4.6 billion for European strategic investments. This includes €2.8 billion allocated to the Connecting Europe Facility, aimed at enhancing cross-border infrastructure. Additionally, €1.1 billion is set aside for the Digital Europe Programme, focusing on shaping the Union's digital landscape. Notably, there is a 10% increase to €378 million for InvestEU, prioritizing key areas such as research and innovation, sustainable transitions, healthcare, and strategic technologies.

Regarding space initiatives, the EU budget for 2025 remains steady at €2.1 billion, primarily directed towards the European Space Programme. An extra €196 million has been allocated for secure satellite connections under the newly introduced Union Secure Connectivity Programme, emphasizing the importance of secure and reliable communication networks.

In comparison, the EU's budget for 2023 stood at €189 million, with notable allocations including €12.8 billion for Horizon Europe, €4.6 billion for European strategic investments, €2.7 billion for Connecting Europe, €1.3 billion for the Digital Europe Programme, and €348 million for InvestEU.

It is essential to note that the final approval of the annual budget for 2025 rests with the Budgetary Authority, which is expected to make a decision before the year's end. The outcome of this decision will significantly impact the future trajectory of research, innovation, and technological advancements within the European Union.