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Council Publishes Guidance Expanding STEP to Include Defence Technologies

Internal Market, Industrial Policy & Trade · Industry, Innovation and Internal Market · Policy Document · 2026-02-06

The Council of the European Union on 2 June 2026 published a Commission Guidance Note clarifying the implementation of the Strategic Technologies for Europe Platform (STEP), formally expanding its scope to include defence technologies alongside digital, clean tech, and biotechnologies. The note provides practical clarifications on project eligibility and aims to support the development, manufacturing, and value chains of critical technologies within the EU while addressing related labour and skills shortages.

The guidance note is a non-binding Commission document that interprets Regulation (EU) 2024/795 (the STEP Regulation), as amended by a defence-focused regulation. It also references related acts such as the Net-Zero Industry Act and the Critical Raw Materials Act. The document was issued by the Commission and transmitted to the Council for information; it does not require formal adoption by member states.

Policy orientations and trade-offs
The note clarifies that defence technologies are now formally recognised as a STEP sector, aligning them with the existing pillars of digital/deep tech, clean tech, and biotechnologies. It specifies eligibility criteria for projects, including recycling projects, first-of-a-kind facilities, and defence capability areas prioritised by the European Council. The expansion reflects a trade-off between broadening industrial support to include security-related sectors and maintaining focus on the original green and digital transitions. By including defence, the EU aims to strengthen its strategic autonomy but risks diluting the platform's original climate and digital objectives.

Impact on stakeholders
The EU defence industry gains access to STEP funding and support for developing critical defence technologies, potentially boosting competitiveness and reducing dependency on non-EU suppliers. EU clean tech and digital sectors may face increased competition for limited STEP resources as the platform's scope widens, possibly slowing support for green and digital projects. National authorities must adapt their national implementation plans to incorporate defence-related projects, requiring coordination with defence ministries and potentially reallocating administrative resources. EU taxpayers benefit from a more integrated approach to strategic technologies, but may bear higher costs if defence projects require additional subsidies or if efficiency decreases due to broader scope.

Expected institutional follow-up
The guidance note is intended to assist member states and implementing bodies in applying the STEP Regulation uniformly. The Commission may issue further clarifications as needed. The Council is expected to monitor implementation and could propose adjustments to the regulation based on practical experience. No immediate legislative action is required, but the European Parliament may hold hearings to assess the impact of the expanded scope.

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