View from Brussels: Ukraine’s brightest get EU boon

Ukraine’s start-up scene is set to benefit from 20 million euros in funding from the EU, as Brussels hopes to further integrate the country into the Western tech sector. Full EU membership anytime soon still seems a very unlikely prospect, but Kyiv can expect more benefits like this in the future.
The European Innovation Council (EIC) last week announced the €20 million fund dedicated solely to helping Ukraine’s start-up sector align more closely with the rest of Europe.
Under the new fund, grants of up to €60,000 and non-financial support will be made available. The first call for applications will be launched on June 23 and the European Commission hopes that applicants will be encouraged to apply for additional funding from the EIC afterwards.
“Ukraine has a vibrant cutting-edge technology community and great potential to create breakthrough innovations,” said EU research chief Mariya Gabriel, who also added that the sector will play a key role in reconstruction of the country’s destroyed infrastructure.
According to the Ukrainian government, more than 70% of start-ups continue to go about their business, despite the brutal invasion of Russia. That’s why this injection of cash will be crucial for many start-ups that are just starting to find their feet.
The EIC hopes that this new initiative will be somewhat of a distraction from its internal problems, which have caused many delays in getting grants and loans into the hands of successful applicants.
A European Parliament inquiry into what went wrong is ongoing, while the Commission has previously admitted ongoing restructuring helped cause the delays.
What the future holds
Ukraine’s candidacy to become a full member of the European Union will be the main political point on the agenda of a summit of the European Council of Heads of Government on June 23.
The request was submitted shortly after Vladimir Putin illegally invaded Ukraine, which has also prompted Georgia and Moldova to submit requests as well, seeking both the economic and defense benefits that membership promises. .
EU leaders will not give in to calls to grant Ukraine immediate membership and may not even grant the nation candidate status, potentially triggering years of negotiations over the various details needed to become a member. of the club.
This politicking aside, Ukraine can at least count on its association with the EU’s flagship research program, Horizon Europe, which also kicked off last week. The EU has waived the financial contributions normally required for 2021 and 2022.
EU leaders hope this will spark even closer collaboration between researchers and scientists, especially in the area of clean energy. All this is supplemented by a fund of 25 million euros reserved for Ukrainian researchers who have fled the fighting.
Ukraine may be enjoying Horizon’s spoils now, but the UK still isn’t. The chances of a compromise on issues related to the Northern Ireland protocol are dwindling and with them the hopes of UK-based researchers for a last-minute reprieve.
The European Commission had held back the UK’s association until this issue was resolved.
Indeed, it is now likely that if no deal is in place by the end of the month, the UK government will continue with its own arrangements for research and innovation funding, which most parties agree concerned, will pale in comparison to what Horizon offers. .
It’s a shame because last week the Commission unveiled its draft budget for 2023, which plans to allocate 12.3 billion euros to the Horizon programme, an increase of 100 million euros compared to the proposal of 2022.
Nearly €2 billion in grants from the bloc’s pandemic recovery fund are also expected to be added to the mix. MEPs and national governments will now have their say on the budget before it can be finalised.
Cuts to the European space program and some digital funding may not sit well with some lawmakers and countries, but it was the Council that insisted on a smaller overall budget for 2021-2027, so they will have to live with the consequences.
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