Article 2

Regulation (EU) 2021/695 is amended as follows: (1) in Article 46, the following paragraph is inserted: 4a. By way of derogation from Article 212(3) of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council, repayments, including reimbursed advances, revenues and unused amounts net of fees and costs, of EIC blended finance of the EIC Pilot under Horizon 2020, shall be considered to be internal assigned revenues in accordance with Article 21(3), point (f), and Article 21(4) and (5) of Regulation (EU, Euratom) 2024/2509 and the time restriction of two years set out in Article 212(3), second subparagraph, of Regulation (EU, Euratom) 2024/2509 shall apply from 23 December 2025. (2) Article 48 is amended as follows: (a) in paragraph 1, the following subparagraphs are inserted after the second subparagraph: By way of derogation from Article 7(1), the support referred to in points (a), (b) and (c), of the second subparagraph of this paragraph may include potential dual-use applications, while advancing civilian application use. By way of derogation from Article 7(1), the support referred to in point (d) of the second subparagraph of this paragraph may include innovation in critical defence technologies referred to in Article 2(1), point (a)(iv), of the STEP Regulation, while fostering, where appropriate, innovations with dual-use potential. ; (b) the following paragraph is inserted: 1a. The application of the derogations to Article 7(1) provided for in paragraph 1 of this Article shall be included in the Commission’s monitoring of the Programme pursuant to Article 50. ; (c) paragraph 2 is replaced by the following: 2. The beneficiary of the Accelerator shall be a legal entity qualifying as a start-up, an SME or, in exceptional cases, as a small mid-cap intending to scale up, established in a Member State or in an associated country. With regard to support for innovation in critical defence technologies under paragraph 1, second subparagraph, point (d), of this Article, participation shall be limited to legal entities established in the Union, in Ukraine or in an EEA member associated to Horizon Europe. Legal entities directly or indirectly controlled by a third country other than Ukraine or an EEA member associated to Horizon Europe, or by legal entities of such a third country shall be excluded from participation. By way of derogation from the second subparagraph, a legal entity established in the Union, or in an EEA member associated to Horizon Europe and which is controlled by a third country other than Ukraine or an EEA member associated to Horizon Europe, or by a legal entity of a third-country other than Ukraine or an EEA member associated to Horizon Europe shall be eligible to be a beneficiary under paragraph 1 of this Article, provided that guarantees are made available to the Commission. Such guarantees shall be approved in accordance with the national procedures of the Member State or the EEA member associated to Horizon Europe in which the legal entity is established, such as adequate measures pursuant to screenings, as defined in Article 2, point (3), of Regulation (EU) 2019/452 of the European Parliament and of the Council. The guarantees shall provide assurances that support for the legal entity would not contravene the security and defence interests of the Union and its Member States, as established in the framework of the common foreign and security policy pursuant to Title V of the TEU, including respect for the principle of good neighbourly relations. With regard to support under paragraph 1, second subparagraph, point (a), (b) or (c), of this Article with potential dual-use applications, the work programme may provide that it is possible to limit participation to legal entities established only in Member States or to legal entities established in specified associated countries in addition to Member States. Any limitation on participation of legal entities established in associated countries which are EEA members shall comply with the terms and conditions of the Agreement on the European Economic Area. For duly justified and exceptional reasons, in order to guarantee the protection of the strategic interests of the Union and its Member States, the work programme may also exclude the participation of legal entities established in the Union or in associated countries directly or indirectly controlled by non-associated third countries or by legal entities of non-associated third countries from individual calls for proposals, or make their participation subject to conditions set out in the work programme. The proposal may be submitted either by the beneficiary or, subject to the prior agreement by the beneficiary, by one or more natural persons or legal entities intending to establish or support that beneficiary. In the latter case, the funding agreement shall be signed only with the beneficiary.