16 Jun 2026
Council agrees its position on European Competitiveness Fund
On 16 June, the Council has adopted its partial negotiating position on the proposed regulation establishing the new European Competitiveness Fund (ECF), which is expected to become a key element of the European Union’s next multiannual financial framework (MFF).
The ECF is intended to help address the EU’s innovation gap with major global competitors, reduce strategic dependencies, and strengthen the overall competitiveness of the European economy. Under a single rulebook and a single application gateway, the fund is designed to direct EU investment toward strategic technologies and industries considered important for Europe’s global position. The fund is also expected to combine public funding with private investment in order to increase the impact of EU financial support.
The Council’s position is described as partial because it does not include financial and horizontal issues. These matters are still under discussion as part of the broader negotiations on the next MFF, which will cover the period from 2028 to 2034.
According to the Council, its position clarifies how the ECF would work alongside other EU funds and programmes, including Horizon Europe, with an emphasis on creating synergies and ensuring joint priority setting. It also includes specific measures aimed at supporting small and medium-sized enterprises (SMEs).
In addition, the Council has introduced changes to the European Commission’s original proposal to strengthen the role of member states in the governance and implementation of the fund. Under the Council position, all comitology procedures would be subject to an examination procedure, meaning member states would be required to provide formal opinions on proposed implementing acts.
The Council also proposes a stronger role for member states within the ECF General Committee, the advisory body responsible for guiding the programme. Under this approach, member states would contribute strategic input on the overall direction of the fund and help define its priorities.
The Council position further aligns key features of the ECF’s InvestEU instrument with the current InvestEU programme, while keeping the fund’s focus on financing higher-risk projects. It also foresees a specific focus on SMEs through work programmes, dedicated calls, and incentives designed to attract private capital. Business support measures would also be expanded under the proposal. The ECF project advisory initiative and related services would be strengthened, with closer links between the InvestEU Advisory Hub and the EU for Business network.
The partial negotiating position will serve as the Council’s mandate for starting negotiations with the European Parliament on the ECF. The final budget for the programme for the 2028–2034 period will depend on the outcome of the broader negotiations on the next EU long-term budget.
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