Competitiveness fund

EESC opinion on the Proposal for a Regulation of the European Parliament and of the Coucil on establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities, repealing Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/697, (EU) 2021/783, repealing provisions of Regulations (EU) 2021/696, (EU) 2023/588, and amending Regulation (EU) [EDIP], COM(2025) 555 final

Key points

The EESC:

• supports the creation of the European Competitiveness Fund (ECF) as a cornerstone of the next EU budget and a driver of innovation, resilience and security, stressing that funding must remain firmly aligned with sustainability and the EU’s social market economy;
• calls for EU-wide, merit-based project selection, with clear criteria such as excellence, future orientation and economic potential. To avoid national gatekeeping, the EESC urges transparent procedures, equal access for applicants in all Member States, and the active involvement of social partners and civil society in governance;
• recommends introducing a “market referendum”, requiring projects seeking major EU top-ups—such as IPCEIs or other large-scale investments—to mobilise a share of private capital first. This market-test mechanism would help validate project quality, reduce politicised funding decisions and strengthen the link between public support and real competitiveness;
• stresses the need for strong risk-assessment and prevention tools, ensuring that ECF resources are channelled only to projects that genuinely enhance Europe’s competitiveness and avoid repeating past shortcomings in EU funding programmes;
• highlights the importance of supporting SMEs, regional and cross-border innovation ecosystems, and investment in skills and decent work, while simplifying procedures and ensuring governance that is transparent, predictable and inclusive.

For more information please contact the INT Section Secretariat.