Europe is a hub of innovation, science and industry but it faces tough global competition. To stay competitive and lead in technology, the EU needs stronger, more focused public investment to support businesses and attract private funding throughout the entire investment journey.
On 16 July 2025, the European Commission proposed the European Competitiveness Fund as part of the EU’s next long-term budget. With a budget of €234 billion, combined with Horizon Europe (€175 billion), it will bring together €409 billion (or 21% of the future EU budget) to accelerate strategic technologies in Europe.
The initiative responds to calls for a more streamlined and geopolitically responsive EU funding model. It builds on the highly successful InvestEU Programme, which has shown strong results in mobilising private investment. Over the past four years, nearly €300 billion has been mobilised. Each €1 of EU guarantee has supported €15.20 in total investment, with around 70% coming from private sources.
The new Competitiveness Fund is not only inspired by the mobilisation of private investment. The design of InvestEU has also become a blueprint for the ECF. Like InvestEU, the Competitiveness Fund will consolidate several programmes under a single framework. It will feature policy windows that mirror key EU priorities and will provide advisory services across these windows.
Strategic focus
Prioritising areas of critical importance, the ECF will ensure a seamless transition from research to global production within its four policy windows.
Comprehensive financial tools
The ECF will offer a comprehensive funding toolkit for crowding in private investment, be that grants or loans, procurement, or equity investments. The fund will also support Important Projects of Common European Interest (IPCEI).
Inclusive access
While facilitating access to funding for SMEs, start-ups, and scale-ups, with faster procedures and a common Seal for Competitiveness, the fund will also provide a horizontal project advisory, EU for Business Network, business support, as well as dedicated SME actions to increase SME participation and support skills development.
Flexibility and agility to react to priorities
The fund’s key strength will be its ability to respond quickly, seize new opportunities, and address emerging needs or risks.
The fund will support the full investment journey, from research to manufacturing and market deployment. It will serve SMEs, start-ups, scale-ups, corporations, and research institutions in strategic sectors. By strengthening Europe’s investment culture and attracting both private and public capital, the fund is expected to help the EU respond more quickly to geopolitical challenges, invest more strategically, and enhance its global competitiveness.
Timeline
The Commission is currently working closely with the Council and the European Parliament to reach an ambitious, balanced, and timely agreement on the next multiannual financial framework, including the ECF, which will enter into force in 2028.
- 16 July 2025Proposal from the European Commission
- 1 January 2028ECF enters into force