On 16 June 2026, the Council adopted its partial negotiating position on the regulation establishing the European Competitiveness Fund (“ECF”), which is expected to become a central pillar of the next EU multiannual financial framework for 2028–2034. The fund aims to strengthen Europe’s global position by addressing its innovation gap and reducing strategic dependencies. The agreed position is considered partial, as financial and horizontal issues remain under negotiation within the broader discussions on Multiannual Financial Framework 2028-2034. It will now serve as the Council’s basis for negotiations with the European Parliament. The full text of the Council’s position is available at this link.

The European Competitiveness Fund is designed to streamline EU funding by bringing together 14 existing instruments into a single framework, supported by a single rulebook and application gateway. This approach aims to simplify access to EU funding and facilitate investments in strategic technologies and key industries critical for Europe’s competitiveness.

The ECF will focus on four main policy areas, including clean transition and industrial decarbonisation, health, biotech, agriculture and bioeconomy, digital leadership, and resilience and security, including defence and space. It also aims to attract private investment alongside public funding to maximise the overall impact of EU spending.

The Council’s position further clarifies the interactions with other EU programmes, particularly Horizon Europe, and introduces provisions to strengthen the role of Member States in governance and strategic decision-making. Additional measures target small and medium sized enterprises, including dedicated calls and incentives to foster innovation.