Stuttgart: The European Competitiveness Fund moved a step closer to a Parliament position on 22 October 2026, when rapporteurs and shadow rapporteurs agreed a compromise that lifts the fund to 264 billion euros for 2028 to 2034. Co-rapporteur Christian Ehler, a German member of the EPP, helped steer the text, which should reach a vote in the Industry committee on 10 November.
The compromise changes how the fund fits with research money. It removes the programming of Horizon Europe Pillar II from the fund, which keeps that part of the research programme under its own rules. Parliament also asks for a flexibility reserve instead of the seamless budgetary flexibility the Commission wanted.
Excellence remains the main award criterion in the European Competitiveness Fund text. The compromise adds that excessive geographical concentration of funding must be avoided, which responds to worries that rich regions with large research bases would win most of the money.
The European Competitiveness Fund would also follow a technology-neutral approach. All solutions that contribute to net greenhouse gas emission reductions would qualify, which keeps the door open for a wide range of clean industrial projects.
Security and economic resilience feature strongly. The compromise would allow targeted Union preference for actions that serve security, economic security or resilience, and it would bar equipment or components that come from a single third country supplying more than 50 percent of the Union’s supply of that product.
Third countries can take part under conditions. Eligible partners include members of the European Economic Area and EFTA, Andorra, Monaco and San Marino, acceding and candidate countries such as Ukraine and Moldova, and neighbourhood countries. Other third countries, including the United States, could join if they meet the rules, and the Commission can set association costs as long as they are not unreasonable.
Industry groups will ask how quickly money can flow. A fund of this size needs clear rules on calls and eligibility, and applicants will want the European Competitiveness Fund to deliver simple procedures, not just a bigger headline number.
Open questions remain. The summary of the deal does not give a plenary date or a split of the 264 billion euros across the fund’s parts. Negotiators will need to show that the money buys results for factories and start-ups, not only another funding label.
If the committee backs the compromise on 10 November, Parliament will enter talks with a clear mandate. The European Competitiveness Fund will then test whether the Union can fund scale, security and excellence at once.
