The IPCEI: The Cutting Edge of Industrial Research in the EU

In an era where technological sovereignty is key to prosperity and economic competitiveness, the European Union is taking bold steps to strengthen its position in the global industry. At the core of the EU's strategy are the Important Projects of Common European Interest (IPCEI).

 The IPCEI serve as innovative cross-border industrial policy initiatives, uniting knowledge, expertise, financial resources, and companies from across the EU.

Their ultimate aim is to facilitate a positive exchange of ideas among European researchers. These mechanisms are based on and regulated by Article 107 of the Treaty on the Functioning of the European Union (TFEU), which allows Member States to provide financial assistance to "promote the execution of an important project of common European interest or to remedy a serious disturbance in the economy of a Member State."

Although the European Commission adopted the IPCEI Regulation in 2014, the first project, focused on developing innovative microelectronics technology and components, wasn't approved until 2018. With a total of 35 billion euros in funding and an additional 57 billion euros anticipated from private investments, the eight approved projects now involve over 21 countries and more than 200 companies across Europe.

The IPCEI represent a tangible response from the EU to the growing need to strengthen and enhance its industrial policy. These research and development initiatives strategically target critical sectors, including clean energy and digital infrastructure, with approved and funded projects categorized into key areas such as microelectronics, batteries, hydrogen, and next-generation cloud infrastructure and services.

The IPCEI aim to incentivize innovation by promoting technologies that can positively impact the economy and society across Europe. The strong partnership among participating states fostered by these research initiatives has empowered European businesses to excel and compete more effectively in international markets, standing up to global competition.

Another key element that these research projects strive to advance is the development of sustainable technologies to support Europe's green transition and achieve its environmental protection goals. The development of technologies such as green batteries and hydrogen research would provide a significant advantage in the journey toward the EU's goal of carbon neutrality by 2050.

Italy's Active Participation

Italy, always at the forefront of research and development in new technologies, actively participates in several of these important projects. This year, our country has also contributed to the IPCEI Fund, supplementing the resources already available to support the research program. The Ministry of the Interior and Made in Italy has allocated, through a directive issued on May 8, 2024, a payment of 1.5 billion euros to be distributed among the Battery 1, Hydrogen 1, Hydrogen 2, Cloud Infrastructure and Services, and Microelectronics 2 projects.

Moreover, Italy is one of the lead proponents of the latest hydrogen-focused project. On May 28, 2024, the European Commission approved "Hy2Move," a new Important Project of Common European Interest developed jointly by Italy, Estonia, France, Germany, the Netherlands, Slovakia, and Spain, involving a total of 11 companies. This project aims to support the hydrogen value chain, focusing on areas such as hydrogen technologies for transportation, fuel cell technologies, and on-site hydrogen refueling technologies with pressurized fuel.

In conclusion, these research projects are pivotal for the future of the European industry. By pooling expertise, financial resources, and production capabilities, the European Union can compete on the global stage with major players like the United States and China, which have long dominated the international market and served as models for research. While economic reasons are a driving factor, it is also crucial to recognize the importance of these new technologies for environmental protection, as they have the potential to drastically reduce or even completely eliminate the pollution produced by our society on a daily basis.

Translated by Iuliana Cindrea

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