The European Competitiveness Fund is a proposed cornerstone of the EU’s post‑2027 budget framework, designed to streamline and strengthen support for innovation, industrial leadership, and strategic autonomy.
With an envelope of around €451 billion, the Fund is designed to consolidate multiple existing programmes into a single instrument.
What it does
The Fund will consolidate multiple EU programmes—such as Horizon Europe, Digital Europe, and potentially parts of the European Defence Fund and AI initiatives—into a single, coherent instrument. These will be organised under thematic “sectoral windows”, covering:
- Clean transition
- Digitalisation
- Biotechnology
- Defence
- Space
- And other strategic sectors
How it’s structured
Built around five core pillars, each supported by a tailored financial toolbox, the Fund will be guided by an advisory board representing:
- Industry
- Research institutions
- Investors
Its design aims to: - Simplify EU funding
- Reduce fragmentation
- Improve coherence across the full innovation lifecycle—from R&D to market deployment
- Maintain flexibility to adapt to evolving priorities
Strategic focus
A dedicated window for resilience, defence & space will reflect the EU’s ambitions in strategic autonomy and security.
Why it matters
The European Competitiveness Fund represents a bold step toward:
- Streamlining innovation finance
- Boosting investment effectiveness
- Advancing EU goals in clean industry, digital leadership, and defence resilience