Innovation & Deep TechEIC Adopts €1.4 Billion Work Programme for 2026
The European Innovation Council (EIC) has formally adopted its 2026 Work Programme, allocating €1.4 billion to support Europe's deep-tech innovators. The budget includes €634 million for the EIC Accelerator, €262 million for Pathfinder, and a new €300 million "STEP Scale Up" instrument designed to bridge the "scale-up gap" for growth-stage companies. This adoption sets the stage for the 2026 calls, with the EIC Pathfinder Open deadline set for 12 May 2026. The move comes amid massive demand, with one 2025 cut-off receiving €7 billion in funding requests.
Source ↗Research & PolicySwitzerland Re-joins Horizon Europe in Landmark R&I Agreement
The EU and Switzerland signed a pivotal agreement on 11 November 2025, formally associating Switzerland with Horizon Europe, the Digital Europe Programme, and Euratom. Crucially, the agreement is retroactive to 1 January 2025. This move restores full participation rights to Swiss entities, allowing them to lead consortia and receive direct EU funding for the first time in years. This fundamentally reshapes the European Research Area, enabling consortia for 2026 calls to fully integrate Swiss partners as funded leaders, ending a long period of administrative friction.
Source ↗Green Deal & IndustryInnovation Fund Awards €2.9 Billion to 61 Net-Zero Industrial Projects
The European Commission announced €2.9 billion in grants from the Innovation Fund for 61 large-scale, net-zero technology projects. The funding, generated by the EU Emissions Trading System (ETS), was awarded after a call that was oversubscribed nine-to-one, with applicants requesting €21.7 billion. The selected projects span 19 industrial sectors, with a major focus on mainstreaming Carbon Capture and Storage (CCS) value chains in the cement and lime sectors. This demonstrates the Green Deal's industrial cycle in action: using ETS revenue to fund the very technologies that decarbonize industry.
Source ↗Strategic AutonomyEU Commits €643 Million to 5 EV Battery Plants
CINEA announced that five strategic electric vehicle (EV) battery cell projects will receive €643 million in grants from a dedicated Innovation Fund call. The funding is an explicit move to "strengthen technological competitiveness" and "reduce dependence on external suppliers," aligning with the Net-Zero Industry Act. One project, Leclanché SA, will receive €74.2 million to expand its German site, notably using a PFAS-free manufacturing technology. This is a clear example of the EU using targeted industrial policy to build a domestic, clean-tech manufacturing base.
Source ↗Digital & AIDigital Europe Programme Opens €204M in Calls for AI & Digital Wallets
The Commission has opened €204 million in new funding calls under the Digital Europe Programme. These calls are central to the EU's "Digital Sovereignty" agenda. Key topics include €15 million for the development of EU Digital Identity Wallets (deadline 9 Dec 2025), €14.4 million for AI in medical imaging, and €79.2 million for European Digital Innovation Hubs (EDIHs). The funding aims to build EU-specific digital infrastructure and standards, with most major calls closing on 3 March 2026.
Source ↗SME FinancingEIB Group and Santander Launch €1 Billion Facility for SME Green Transition
The EIB Group and Santander announced a new €1 billion facility to support small and medium-sized businesses. This funding is specifically targeted at helping SMEs finance investments in two key areas: competitiveness and the green transition. The facility also includes dedicated support for boosting women-led businesses and promoting the construction of sustainable buildings. This operation is a prime example of the EIB's model of providing guarantees and loans to financial intermediaries like Santander, who then disburse the de-risked capital to the final SME beneficiaries.
Source ↗Policy & Rule of LawEU Withholds €214.5M from Bulgaria's RRF Payment Over Failed Reform
The EU's "performance-based" funding model was demonstrated as the Commission disbursed a partial second payment of €438.6 million to Bulgaria from its Recovery and Resilience Facility (RRF) plan. However, it withheld €214.5 million. The disbursed funds were for 59 met milestones, including energy market liberalization. The frozen funds are linked to *one* failed milestone: the reform of the Anti-Corruption Commission, which the EU found lacked political independence. This action surgically links RRF cash to non-negotiable rule-of-law milestones.
Source ↗Just TransitionNew €630 Million Grant Call Opens for Just Transition Regions (PSLF)
The second call for the Public Sector Loan Facility (PSLF) has opened with a €630 million grant budget. This facility is the "third pillar" of the Just Transition Mechanism, designed to support public entities in regions most affected by the green transition, such as former coal regions. This €630 million is the *grant component* of a "blending instrument". It acts as a subsidy to "buy down the risk" for much larger EIB *loans* for public projects, turning millions in grants into billions in transition investments. The first cut-off deadline is 27 January 2026.
Source ↗Environment & ClimateLIFE Programme Awards €358 Million to 132 Local Green Projects
The European Commission announced €358 million in EU funding for 132 new projects under the LIFE Programme. This funding provides "breadth" to the Green Deal, complementing the "depth" of the multi-billion Innovation Fund. The projects are smaller, more localized, and cover a wide range of citizen-focused activities, including biodiversity, circular economy, and climate adaptation. Successful applicants range from "a toad protection scheme in Belgium" to "a project to recycle ski gear in Italy". The funding is allocated across Nature (€147M), Circular Economy (€76M), Climate (€58M), and Clean Energy (€77M).
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