This week in EU policy: Funding, more funding and a new UK-EU relationship?

The last few weeks we've seen the EU putting more emphasis on its desire to make Europe the ideal home for fledgling startups and scale-ups, in the face of competition from the US and China. There’s still a long way to go before that vision is realised, but this week I’ve come across some major sources of research funding which may be laying the groundwork. Read on for those and the other big developments out of Brussels this week.

1. UK and EU reach initial agreement on security and defence

The news: The EU and UK have reached what is being referred to as a 'tentative' agreement to cooperate on security and defence matters, as well as other fields. It's the first moment of real rapprochement since the bitter fall-out of Brexit.

What happens now: As with all such initial agreements, there is a long way to go, and a lot will depend on consent from each of the 27 member states, as well as domestic UK politics, before anything concrete happens.

What it means for impact companies and investors: In a word? Contracts. While cross-channel cooperation hasn't totally died in the five-odd years since the UK formally left the EU, investments in innovation took a dramatic hit. With this 'reset' in relations, it's hoped that deals might start flowing again. First thing to note is that this deal likely will mean British companies can access more EU defence contracts, which would benefit any impact companies working on dual-use. More broadly, this first step towards a reset may mean the start of further trade and investment deals in the future.

2. Commission announces major funding for research and innovation

The news: The European Commission has announced it is massively topping up its programme for training and recruiting doctoral candidates and researchers, with over half a billion euros in funding calls to promote innovative research on the continent.

What happens now: Most of the new funding calls under the Marie Skłodowska-Curie Actions programme open and close in the latter half of 2025.

What it means for impact companies and investors: “Europe has chosen to start a new age of invention and ingenuity. We put research and innovation, science, and technology at the heart of our economy” – so said Ursula von der Leyen regarding the funding’s announcement. And this is indeed a huge investment into innovation in Europe, clearly designed not just to generate new patents but also attract the world’s talent. That’s to the clear benefit of all impact sectors that specialise in science-led, IP-rich offerings (hello deeptech), hopefully providing both a steady stream of new ideas and innovations as well as nurturing the people needed to turn those into scalable projects.

3. New plan to revitalise and re-green Europe’s neighbourhoods

The news: The Commission has launched research and innovation funding rounds under its New European Bauhaus (NEB) project, which aims to revitalise Europe’s living spaces and make them “more sustainable, inclusive, and beautiful for everyone.”

What happens now: In early June the Commission will hold events with more information and networking opportunities for potential applicants.

What it means for impact companies and investors: Another funding announcement, but with a more direct impact focus. With an overall budget of €360m ($400m), about a third of that to spend in 2025, the NEB Facility, as it’s known, is looking for projects focussed on the green transformation, social inclusion, and circular building practices, among others. A great opportunity for impact startups to demonstrate the viability of their project and start building.

4. Study into alternative working practices for people with disabilities

The news: The findings of an EU-wide study into alternative employment models for people with disabilities is to be presented this week.

What happens now: The webinar, hosted with the Inclusive Labour Market Alliance, will be held on Wednesday the 21st.

What it means for impact companies and investors: It’s far more typical to see environmental impact news emanating from Brussels at the moment, but this is a nice initiative for social impact. The EU-funded study, based on analysis of 8 member states, should provide guidance to policymakers and employers on how best to bring people with their own distinct needs into the workforce, to their social benefit and overall economic impact. Startups and investors looking at projects for social and labour inclusion would do well to join the webinar and learn more.

5. Further step towards integrated European hydrogen network

The news: The Commission has published its opinion (more like recommendations) for the establishment of the European Network of Network Operators for Hydrogen (ENNOH).

What happens now: The future network operators now need to finalise statutory documents by July 2025, incorporating the Commission’s opinion.

What it means for impact companies and investors: Okay this one’s a bit nerdier than most, but in presenting this opinion, the Commission is telling the future operators how to get their documents and procedures in order to begin working towards an integrated internal market for hydrogen. ENNOH, once up and running, will undergird the deployment of hydrogen energy around the continent. Any impact company specialised in hydrogen will be both celebrating this step and the Commission’s emphasis that operators start working together ‘as soon as possible’ to ensure climate action and energy security.

If you have any thoughts on this round-up, what should or should not be in here, or you want to reach out with a tip of your own, feel free to get in touch – editorial@loop.se.