EU member states have agreed a partial negotiating position on plans to create a new European Competitiveness Fund as part of the bloc’s next seven-year budget for 2028 to 2034.
The proposed fund would operate under a single set of rules and a single application route, and would combine public funding with private investment, the Council of the EU said on Tuesday.
It added that its position was “partial” because it does not cover budget figures or wider cross-cutting issues that are being negotiated as part of the next multiannual financial framework, the EU’s long-term spending plan.
Michael Damianos, Cyprus’s minister for energy, commerce and industry, said the Council’s work had focused on “ensuring that Europe remains competitive, innovative, and resilient in an increasingly challenging global environment.”
The Council said the proposal would consolidate 14 existing EU funding instruments into a single framework and focus investment on four areas — clean transition and industrial decarbonisation; health, biotech, agriculture and the bioeconomy; digital leadership; and resilience and security, including defence industry and space.
SMEs, oversight and links to other programmes
Measures in the Council’s position include provisions aimed at small and medium-sized enterprises (SMEs) — businesses with fewer than 250 employees — through dedicated calls and work programmes.
The Council also said its text clarifies how the new fund would work alongside other EU programmes, including Horizon Europe, the EU’s main research and innovation programme, and InvestEU, an EU scheme designed to mobilise investment through guarantees and financial tools.
Member states would have a stronger role in overseeing how the fund is implemented under the Council’s approach, including formal opinions on proposed implementing acts.
In defence industry policy, the Council said its changes would align the new fund’s rules with the existing European Defence Fund, including member states having more ownership and control in award decisions.
On space policy, member states made “major changes” related to a planned Earth Observation Governmental Service, which the Council said would use space data for security and defence decision-making, with participation and the roles of the European Union Satellite Centre and the European Space Agency set out more clearly.
The Council said the agreed position is its mandate to start negotiations with the European Parliament, while the final budget for the programme will depend on the wider agreement on the EU’s 2028–2034 budget.
