The new budget framework is based on several key principles:

• Greater budget flexibility so that the European Union can respond more quickly to unforeseen circumstances and new development priorities.
• Simpler and more harmonized financing programs, which will make it easier for citizens, entrepreneurs and organizations to find and use available sources of financing.
• An approach tailored to local needs through national and regional investment and reform partnership plans, ensuring more efficient and faster implementation of projects and strengthening economic, social and territorial cohesion across the European Union.
• Stronger focus on Europe's competitiveness, with the aim of strengthening supply chains, accelerating innovation and ensuring Europe's leading role in the development of clean and advanced technologies.
• The EU's new own resources system, which provides funds for financing European priorities with as little pressure as possible on the national budgets of the Member States.

https://commission.europa.eu/topics/budget/eu-budget-2028-2034-explained_hr

The proposed budget provides the basis for future investments in the green transition, digitalisation, innovation, security, defence and strengthening the competitiveness of the European economy. As the negotiation process for the new Multiannual Financial Framework for the period 2028-2034 is ongoing, the final structure of the European Competitiveness Fund will be known after the adoption of the proposal by the Council of the European Union and the European Parliament, i.e. after the conclusion of the ordinary legislative procedure.

The new multiannual financial framework establishes six strategic priorities:

• investments in people, member states and regions
• strengthening competitiveness, research and innovation for greater prosperity
• protection of Europe
• support for education, social rights and democracy
• protecting citizens and increasing preparedness and resilience
• building partnerships for a stronger Europe in the world 

Of the total planned budget, almost half of the budget funds, or 865 billion euros, will be spent on reducing disparities between European regions, while 409 billion euros are planned for greater European competitiveness on a global level. For investment in education (Erasmus+ programme) and promoting democratic values ​​(AgoraEU program) 49 billion euros are planned, while 200 billion euros are planned to strengthen partnerships with the rest of the world.

European Competitiveness Fund (EFC)

European Competitiveness Fund (EFC) is a new financial instrument of the European Union proposed under the Multiannual Financial Framework for the period 2028-2034, designed to strengthen the competitiveness of the European economy, foster innovation and accelerate the green and digital transition. The fund will bring together different funding programmes and support projects from the research and development phase to commercialisation and market expansion, with a particular focus on micro, small and medium-sized enterprises, start-ups and scale-ups. The indicative financial envelope for the implementation of the ECF for the period from 1 January 2028 to 31 December 2034 is EUR 234 300 000 000 in current prices.

Priority areas of financing

Clean transition and industrial decarbonization

Support will be focused on the development and deployment of clean technologies, greenhouse gas emission reduction, energy efficiency, renewable energy sources, the circular economy and the digitalisation of energy and transport systems. Projects that contribute to the decarbonisation of industry, sustainable mobility, alternative fuels and strengthening European industrial resilience will be particularly encouraged. The Commission proposes that the share of the Fund for these objectives be EUR 26 210 000 000 

Health, biotechnology, agriculture and bioeconomy

The Fund will support innovation in healthcare, the development of medicines, medical devices and diagnostics, and strengthening the resilience of health systems. Projects in the fields of biotechnology, biomanufacturing, biomaterials, innovative food products, and sustainable agriculture, fisheries and the bioeconomy will also be financed, with the aim of increasing security of supply and resilience of value chains. The Commission is proposing an amount of EUR 20 393 000 000 to achieve these objectives.

 Digital leadership

Priority will be given to investments in artificial intelligence, advanced digital technologies, cybersecurity, the digitalisation of enterprises and public administrations and the development of digital infrastructure. The Fund will support projects that contribute to Europe's technological sovereignty, the digital transformation of the economy and the development of innovative digital solutions. An amount of EUR 51 493 000 000 has been proposed for these objectives.

Resilience, security, defense and space

Support will focus on strengthening the resilience of supply chains, the availability of critical raw materials, the development of defence technologies, civil security and space systems. Projects that increase the security, technological independence and resilience of the European Union will be financed, including the development of space technologies, critical infrastructure and innovative security solutions. An amount of EUR 125 204 000 000 is proposed for these objectives.

Additionally, the European Commission proposes to allocate EUR 11,000,000,000 under this Fund for activities that contribute to the general objectives through cross-sectoral activities such as non-thematic support from the ECF InvestEU Instrument and project advisory, cooperation with SMEs, skills development and access to finance.

Fund objective

The objective of the European Competitiveness Fund is to ensure that key technologies, innovations and production capacities are developed and retained in Europe, increasing the long-term competitiveness, resilience and strategic autonomy of the European economy.