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Startups, take note! These are the technology sectors that the EU will fund in 2023

Tuesday the European Council approved the general budget of the EU for 2023. This was agreed in negotiations with the European Parliament a week earlier.

The two institutions have committed to a total budget of €186.6 billion next year – an increase of 1.1% compared to 2022.

According to the Commissionthe 2023 budget aims to “stimulate the recovery from the coronavirus pandemic, put Europe on a path towards a sustainable future, protect and create jobs, and strengthen the strategic autonomy of the Union”.

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In particular, a significant amount of funding is allocated to sectors that can benefit startups and SMEs operating in the technology and sustainability industries.

In concrete terms, 3 billion euros will go to the Connecting Europe facilitysupporting the development of high-performing, sustainable and efficiently interconnected trans-European networks in the fields of transport, energy and digital services.

Special attention will be paid to the energy sector, in line with the Union’s plan to reduce dependence on Russian gas and mitigate the energy crisis. The financing complements the €20 billion of the REPowerEU proposalwhich focuses on technologies for the diversification of energy supplies and the accelerated roll-out of renewable energy sources.

Similarly, €1.5 billion will be made available for the Just Transition Fund — which supports investments in areas such as digital connectivity, clean energy technologies, the reduction of emissions and the retraining of workers — to ensure that the transition to climate neutrality does not lead to regional disparities.

Approximately €755.5 million will also be allocated to the LIFE programwhich, focused on climate action, finances SMEs and start-ups to develop and commercialize cleantech solutions.

The EU will also strengthen its research project, Horizon Europe, with a further €12.4 billion. The funding is aimed at research areas such as health, the digital industry, space, climate, energy and mobility.

Finally, an investment of € 602.8 million will be made Program for the internal marketthat supports and stimulates the competitiveness of small and medium-sized enterprises across the Union.

The final approval of the budget will be declared by the European Parliament, once it has also approved the joint commitments. But it is already clear that the Union wants to modernize the continent, promote the green and digital transition and strengthen companies active in its market.

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