COM(2025) 555 Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 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 (E

    Resolutsiooni liik: Riigikantselei resolutsioon Viide: Majandus- ja Kommunikatsiooniministeerium /  / ; Riigikantselei /  / 2-5/25-01469

Resolutsiooni teema: Euroopa Konkurentsivõime Fond

Adressaat: Majandus- ja Kommunikatsiooniministeerium Ülesanne: Tulenevalt Riigikogu kodu- ja töökorra seaduse § 152` lg 1 p 2 ning Vabariigi Valitsuse reglemendi § 3 lg 4 palun valmistada ette Vabariigi Valitsuse seisukoha ja otsuse eelnõu järgneva algatuse kohta, kaasates seejuures olulisi huvigruppe ja osapooli:

- Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 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.

EISi toimiku nr: 25-0443

Tähtaeg: 21.11.2025

Adressaat: Haridus- ja Teadusministeerium, Justiits- ja Digiministeerium, Kaitseministeerium, Kliimaministeerium, Kultuuriministeerium, Rahandusministeerium, Regionaal- ja Põllumajandusministeerium, Riigikantselei, Siseministeerium, Sotsiaalministeerium, Välisministeerium Ülesanne: Palun esitada oma sisend Majandus- ja Kommunikatsiooniministeeriumile seisukohtade kujundamiseks antud eelnõu kohta (eelnõude infosüsteemi (EIS) kaudu).

Tähtaeg: 15.09.2025

Lisainfo: Eelnõu on kavas arutada valitsuse 04.12.2025 istungil ja Vabariigi Valitsuse reglemendi § 6 lg 6 kohaselt sellele eelneval nädalal (26.11.2025) EL koordinatsioonikogus. Esialgsed materjalid EL koordinatsioonikoguks palume esitada hiljemalt 21.11.2025.

Kinnitaja: Merli Vahar, Euroopa Liidu asjade direktori asetäitja Kinnitamise kuupäev: 05.08.2025 Resolutsiooni koostaja: Elen Nurme [email protected], 693 5201  

.

1.08.2025

Euroopa Konkurentsivõime Fond, COM(2025) 555 Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 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]

Otsuse ettepanek koordinatsioonikogule

Kujundada seisukoht

KOKi esitamise tähtpäev 26.11.2025

VV esitamise tähtpäev 4.12.2025

Subsidiaarsuse tähtpäev - ei ole veel määratud

Põhivastutaja Majandus- ja kommunikatsiooniministeerium

Kaasvastutajad (sisendi andmise tähtpäev 15.09.2025) Rahandusministeerium, Kliimaministeerium, Kaitseministeerium, Haridus- ja Teadusministeerium, Sotsiaalministeerium, Kultuuriministeerium, Justiits- ja Digiministeerium, Siseministeerium, Regionaal- ja Põllumajandusministeerium, Välisministeerium, Riigikantselei JRKB

Seisukoha valitsusse toomise alus ja põhjendus

Algatuse vastuvõtmisega kaasneks oluline majanduslik või sotsiaalne mõju (RKKTS § 152¹ lg 1 p 2)

Sisukokkuvõte

Euroopa Komisjoni 16.07.2025 avaldatud ettepanek Euroopa Konkurentsivõime Fondi (ECF) loomiseks on osa ELi 2028–2034 perioodi mitmeaastasest finantsraamistikust. Euroopa Konkurentsivõime Fondi eesmärk on suurendada Euroopa Liidu konkurentsivõimet, vähendades strateegilisi sõltuvusi ja tugevdades majanduslikku vastupanuvõimet, eelkõige strateegilistes sektorites ja tehnoloogiates toetades kogu investeerimisteekonda alates teadus- ja arendustegevusest kuni tootmise ja turuleviimiseni.

2

Euroopa Konkurentsivõime Fondi poliitikavaldkondadeks on:

 üleminek puhtale energiale ja tööstuse süsinikuheite vähendamine;  tervishoid ja biotehnoloogia, põllumajandus ja biomajandus;  ELi digitaalne juhtpositsioon;  kerksus ja julgeolek, kaitsetööstus ja kosmos.

Euroopa Konkurentsivõime Fondi finantsvahendite tööriistakast koosneb toetustest, riigihangetest ja tööstuspoliitika tööriistade koordineerimisest ning ECF InvestEU instrumendist, mis kasutab rahastamisvahendeid, nagu laenud, omakapital ja tagatised, et mobiliseerida märkimisväärseid era- ja avaliku sektori investeeringuid vastavalt liidu prioriteetidele.

Fond toetab projekte ja ettevõtteid, sealhulgas VKEsid, iduettevõtteid, suurettevõtteid, ülikoole ja teadusasutusi, ning toimib finantsvõimenduse tööriistana, kasutades eelarvelisi instrumente erasektori, institutsionaalsete ja riiklike investeeringute kaasamiseks.

Lisaks Euroopa Konkurentsivõime Fondi finantsvahendite tööriistakastile pakub fond projektinõustamist kogu investeerimistsükli vältel, et soodustada projektide algatamist ja arendamist, toetab oskuste arendamist ning pakub VKEdele ja iduettevõtetele ettevõtlustoetust nende kasvu, rahastuse ja investeeringutele juurdepääsu hõlbustamiseks.

Kas EL algatus reguleerib karistusi või haldustrahve? EI

Kas nähakse ette uue asutuse loomine (järelevalvelised või muud asutused)? EI

Kas lahenduse rakendamine vajab IT-arendusi? EI

Mõju ja sihtrühm

Mõju valdkonnad

Ettepanek omab potentsiaalset mõju kõikidele mõju valdkondadele:

 Sotsiaalala: uued töökohad, sotsiaalteenuste kättesaadavuse ja kvaliteedi paranemine.

 Haridus, kultuur ja sport: haridusasutuste ligipääs kaasaegsele taristule, kultuuri- ja spordirajatiste areng, digioskuste tugevdamine.

 Majandus: suurenenud konkurentsivõime, innovatsioonivõime kasv, VKE-de ja start-up ettevõtete tugevdamine.

 Keskkond: ressursitõhusus, ringmajanduse edendamine, kliimamuutuste leevendamine.

3

 Riigivalitsemine: digiriigi ja e-teenuste arendamine, avaliku sektori tööprotsesside tõhustamine.

 Infotehnoloogia ja infoühiskond: ülikiire ja turvaline andmeside, küberjulgeoleku tugevdamine, tehisintellekti ja kvantarvutuse taristu.

 Riigikaitse ja välissuhted: kaitsevõime tõstmine, rahvusvaheline koostöö ja EL-i strateegilise positsiooni tugevdamine.

 Siseturvalisus: taristu ja teenuste turvalisuse kasv, kriiside ennetus- ja reageerimisvõime tugevdamine.

 Regionaalareng: regionaalsete erinevuste vähendamine, kohaliku ettevõtluse ja elukeskkonna parandamine.

Kaasamine

Kaasata huvirühmad.

EN EN

EUROPEAN COMMISSION

Brussels, 16.7.2025

COM(2025) 555 final/2

2025/0555 (COD)

CORRIGENDUM

This document corrects COM(2025)555 final of 16.7.2025

Concerns the EN version only

The text shall read as follows:

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

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, and amending Regulations (EU)

2021/696, (EU) 2023/588, (EU) [EDIP]

(Text with EEA relevance)

{SEC(2025) 555 final} - {SWD(2025) 555 final} - {SWD(2025) 556 final}

EN 1 EN

EXPLANATORY MEMORANDUM

1. CONTEXT OF THE PROPOSAL

• Reasons for and objectives of the proposal

The European Competitiveness Fund (ECF, the Fund) is part of the post-2027 Multiannual

Financial Framework (MFF) package, which aims to consolidate 14 individual funding

instruments from the current MFF in one framework to operate as an investment capacity to

bolster European competitiveness in technologies and strategic sectors critical to the EU

competitiveness from collaborative research to scaling up, innovation, industrial and

infrastructure deployment and manufacturing, including skills, and in support of projects and

companies including SMEs, start-ups, larger companies, universities and research entities,

while acting as a leverage tool employing budgetary instruments to attract private,

institutional and national investments.

Over the past thirty years, the productivity gaps between the EU and other advanced

economies have widened, rendering the EU less competitive compared to other major

economies. The EU is currently lagging in various areas, including technological

development, research and innovation performance, infrastructure deployment, market

dynamism, and industrial capacity. In recent years, marked by rapid technological

advancements, escalating economic competition, control of key enabling infrastructures, and

trade protectionism, enhancing the competitiveness of the European Union has become a

critical priority. This, and the potential impact it has on our prosperity has been underscored

by several recent reports, including Draghi’s Report on the Future of European

Competitiveness and the Letta’s Report “Much More Than a Market,” whose

recommendations have informed the Competitiveness Compass.

Adopted by the European Commission in January 2025, the Competitiveness Compass1

diagnoses significant issues that hinder competitiveness within the EU. A central issue

identified is the dispersion of Union spending across multiple overlapping programmes, many

of which fund similar initiatives but with differing requirements, complicating the effective

combination of funding.

The Compass identifies several key factors necessary to enhance the Union’s competitiveness:

(1) closing the innovation gap, (2) decarbonisation, and (3) reducing excessive dependencies

and improving security. Additionally, it highlights five horizontal enablers: (1) simplification,

(2) removing barriers in the Single Market, (3) financing, (4) skills and quality jobs, and (5)

better coordination. Simplification, financing, and better coordination are the primary focus of

the European Competitiveness Fund, aimed at addressing challenges such as: (1) suboptimal

support throughout the investment journey—from fundamental research and applied research

to scale-up, industrial deployment, and manufacturing; (2) high investment needs to meet

Union priorities, including the clean and digital transition; and (3) a complex and

uncoordinated Union funding landscape. Addressing these challenges is expected to

positively, albeit indirectly, impact other problems identified in the Competitiveness

Compass, such as the innovation gap, while also reducing Europe’s dependence on external

sources for critical technologies, and resources, thereby enhancing security and resilience.

The ECF is not the sole initiative to strengthen the Union’s competitiveness. It complements

other measures announced in the Competitiveness Compass. The present proposal aligns with

1 COM(2025) 30 final

EN 2 EN

the Communication on the Road to the Next MFF2, which outlined objectives for the next

Union Budget to be simpler, more focused, more impactful, and capable of addressing current

complexities, weaknesses, and rigidities. The Communication also emphasizes that flexibility

is key to ensuring the budget’s ability to respond to a changing reality, with a focus on

challenges such as enhancing Union competitiveness, which requires joint action within a

united Europe. Companies to be covered by the future 28th regime should also be able to

benefit from the ECF, especially since this regime aims to simplify cross-border operations

and encourage investment within the EU single market.

The ECF will be structured along four policy windows reflecting strategic priorities crucial to

Union competitiveness and resilience (from AI and digital to space, from clean tech to

biotech, from defence to health). Its open architecture would help the Fund respond quickly to

new challenges and priorities by providing overall direction and strategy. This new

architecture would allow for the setting of policy priorities at the level of each window, to

effectively target support from applied research to manufacturing and deployment, including

infrastructure and specific skills, relying on funding tools adapted to the projects’ needs and

derisking investment by offering an appropriate leverage/impact ratio of the Union budget. In

addition, the self-standing Research and Innovation Framework Programme Regulation (EU)

[XXX]3 of the European Parliament and of the Council [Horizon Europe framework

programme for Research and Innovation] will be tightly connected to the components of the

ECF to ensure a seamless investment journey from idea to market.

The ECF will flexibly mobilise the entire financial toolbox provided by the Union budget

(including loans, grants, equity, quasi-equity, blending, procurement and guarantees). The

budgetary guarantee and financial instruments would become available to all the policy

windows, making them usable across areas of funding under a single Fund. Synergies with

other programmes will also be ensured, thanks to a more integrated approach at strategic level

and at operational level. Further to the ECF financial toolbox, the Fund will provide project

advisory support throughout the investment cycle to foster the origination and development of

projects, support to skills development and provide cross-cutting business support for SMEs

and startups facilitating their business growth, access to financing and investments. The

integrated structure would also enable synergies with other structural parts of the MFF, such

as the National and Regional Partnership Plans Regulation (EU) [XXX]4 of the European

Parliament and of the Council [National and Regional Partnership Plans]. The ECF

contributes to the competitiveness of the Union and spans over a broad range of policy areas

from R&I, digitalisation, space, defence, environment, health, single market support, circular

economy to energy transition. The Fund includes activities currently carried out under 14

Union programmes: Horizon Europe (HE) as a self-standing programme but tightly connected

to the ECF, Innovation Fund (IF), Digital Europe Programme (DEP), Connecting Europe

Facility – Digital (CEF), European Defence Fund (EDF), the Act in Support of Ammunition

Production (ASAP), the European Defence Industry Reinforcement through Common

Procurement Act (EDIRPA), the European Defence Industry Programme (EDIP), EU4Health,

the European Space Programme, IRIS, InvestEU, Single Market Programme (SME Strand)

and LIFE (see Annex 7 of the Impact Assessment report for more details of each of these

programmes). The size of these programmes today is very diverse, with Horizon Europe being

the largest, with EUR 93 billion over 7 years under this MFF (2021-2027), and the Innovation

2 COM(2025) 46 final 3 OJ L.., p 4 OJ L.., p

EN 3 EN

Fund the second largest, accounting for an estimated EUR 40 billion in the period 2020-2030

(funded by ETS revenues under Article 10a(8) of Directive 2003/87/EC).

• Consistency with existing policy provisions in the policy area

The ECF aligns with the objectives outlined in the Communication on the Road to the next

Multiannual Financial Framework (MFF), aiming for a more focused, simpler, and impactful

budget.

To bolster competitiveness, the ECF will build on the experience with the InvestEU

Programme5 which pooled a number of financial instruments under a single, streamlined

framework and managed to successfully mobilise public and private financing, using a

relatively modest EU guarantee, providing additionality and aligning with Union policy goals.

The ECF will be tightly linked to the 10th Framework Programme for Research and

Innovation established under Regulation (EU) [XXX] [Horizon Europe programme for

Research and Innovation] through the development of integrated work programmes and a

single rulebook in the ECF Regulation. This will be key to ensure a seamless investment

journey from research to start-up, scale up, deployment and global manufacturing, from idea

to market. JRC direct actions will support the objectives of the ECF policy windows.

The ECF will be coherent with and complementary to the other new funds that will support

health-related funding – for activities related to disease prevention and health promotion

Regulation (EU) [XXX]6 of the European Parliament and of the Council [Union Civil

Protection Mechanism and Union support for health emergency preparedness and response],

Regulation (EU) [XXX]7 of the European Parliament and of the Council [Global Europe],

Regulation (EU) [XXX] [National and regional partnership plans]. A strong connection

between the ECF and the modernised Connecting Europe Facility (CEF) is crucial

(Regulation (EU) [XXX]8 of the European Parliament and of the Council [Connective Europe

Facility]). Cross-border infrastructure projects on decarbonization, resilience of digital,

transport and energy, as well as mobility are vital for improving Union competitiveness,

security, and reducing strategic dependencies. There are clear synergies between trans-

European networks in energy and transport supported by CEF and projects within the ECF's

scope. Cross-border digital connectivity infrastructures that, according to the Draghi report,

are vital for Europe to be globally competitive, will be funded under the ECF in order to

maximize synergies with the other digital capacities.

Synergies between the ECF on one hand and the Innovation Fund and the Single Market

programme on the other hand should be ensured regarding support to:

– industrial decarbonisation and innovation notably in the field of clean

technologies (Innovation Fund).

– Digital technologies, pan-European digital public infrastructure and digital

solutions in the area of customs and taxation (Single Market programme).

5 Regulation( EUà2021/523 of the European parliament and of the Council, establishing the InvestEU

Programme and amending Regulation (EU) 2015/1017 6 OJ L.., p 7 OJ L.., p 8 OJ L.., p

EN 4 EN

To this end, the ECF shall ensure coherence with actions planned to be implemented under

the Innovation Fund and the Single Market programme, notably when developing work

programmes. As announced in the Clean Industrial Deal, the Industrial Decarbonisation Bank

will be placed within the governance of the ECF.

The Commission should propose by the end of 2025 the legislative framework for the EU

Space Systems and their Governance building on the EU acquis of the Space and IRIS²

regulations.

Competitiveness will also receive support from Member States’ National and regional

partnership plans and external policies. In addition, synergies between the ECF and other

Union activities that support policy areas closely linked with competitiveness will be sought.

In particular, the ECF will allow for the combination and cumulation of funding for actions

supporting the objectives of more than one Union programme. The ECF will also be open to

any financial or non-financial contributions supporting the competitiveness objectives,

including from Member States, third countries and international organisations. Moreover,

support from Regulation (EU)[XXX] [National and Regional partnership plans] to projects

that have been awarded the Competitiveness Seal will be facilitated. Synergies and

complementarity, from planning to implementation, will be sought in particular with the

European Investment Bank Group. The implementation of all these synergy activities will

reduce the and reporting and record-keeping requirements for recipients reduced to the

minimum necessary.

The ECF should also work in synergy with the new Erasmus+ programme for skills

development, and with the objective of implementing the Union of Skills. The funding

support from ECF for skills in strategic sectors would be complementary to support from

Erasmus+ for building and enhancing skills for quality jobs and lives through life-long

learning and talent development, attraction and retention.

• Consistency with other Union policies

The ECF is consistent with the Competitiveness Compass which provided a roadmap for

boosting competitiveness, building on the recommendations of these reports. Moreover, the

ECF will greatly support the Clean Industrial Deal, which outlined the need to accelerate

decarbonisation, reindustrialisation and innovation, bringing together climate action and

competitiveness under one overarching growth strategy.

The ECF is also complementary to and will amplify the effects of delivering a Savings and

Investments Union. Deeper capital markets will allow insurers, pension funds, banks and asset

managers to participate in projects supported by the ECF thus providing savings and

investment opportunities for EU citizens to the ultimate benefit of savers and citizens.

The ECF is fully consistent with the Digital Decade Policy Programme 2030, which sets out

the Union’s common digital targets and a governance framework to accelerate Europe’s

digital transformation across infrastructure, skills, and services9. In particular, the ECF’s

digital investments respond to the gaps and priorities identified in the State of the Digital

Decade 2025 report, notably in digital connectivity, advanced computing, and digital skills,

supporting the Union’s objective of digital sovereignty

9 Decision (EU) 2022/2481

EN 5 EN

A number of other initiatives are also relevant for the activities deployed under the ECF,

including: Critical Raw Materials Act, Net Zero Industry Act, Chips Act, Industrial Action

Plan for the European automotive sector, Ecodesign for Sustainable Products Regulation, AI

Act, Interoperable Europe Act, Life Sciences Strategy, Advanced Materials Act,

Pharmaceutical Package, the Medical Countermeasures Strategy, White Paper on Defence,

Economic Security Strategy, Preparedness Union Strategy, the Sustainable and Smart

Mobility Strategy and the European Ocean Pact. The ECF is also consistent with the external

dimension of competitiveness, with the Union international commitments, including in the

area of trade.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

• Legal basis

This Regulation lays down an indicative financial envelope for the ECF, including the

European Union funding for Clean Transition and Industrial Decarbonisation, for Digital

Leadership, for Health, Biotech, Agriculture and Bioeconomy, for Resilience, Defence

industry and Space.

Since the ECF constitutes a framework for separate programme basic acts and the concerned

policy areas, the proposal relies on a number of separate legal basis, each to be applied to the

relevant part(s) of the ECF:

– Article 43(2) TFEU in relation to the pursuit of the objectives of the common

agricultural policy.

– Article 168(5) TFEU in relation to relevant activities designed to protect and

improve human health by supporting the competitiveness of the health,

biotechnology, agriculture and bioeconomy sectors;

– Article 172 TFEU in relation to relevant activities supporting competitiveness

through digital transformation in areas of public interest;

– Article 173(3) TFEU in relation to activities supporting the competitiveness of the

European Union’s industrial base, including support to Small- and Medium-sized

Enterprises, specifically to adapt to the new economic challenges in the areas of

research, clean and digital transition, health, biotechnology, agriculture,

bioeconomy, space, security and defence;

– Article 175 TFEU in relation to the need to continue and improve measures

outside the Funds referred to in Article 175 TFEU for activities to improve

competitiveness throughout the internal market, including through widening

measures, considering economic, social and territorial cohesion;

– Articles 182(4), 183 and the second subparagraph of 188 TFEU in relation to

relevant activities supporting research and innovation in the area of defence;

– Article 189(2) TFEU in relation to relevant activities supporting the Unions’ space

policy;

– Article 192(1) TFEU in relation to relevant activities preserving, protecting and

improving the quality of the environment and activities supporting the transition

to clean energy to contribute to climate change mitigation;

– Article 194 (2) TFEU in relation to the functioning of the energy market; security

of energy supply in the Union; energy efficiency and energy saving and the

EN 6 EN

development of new and renewable forms of energy; and interconnection of

energy networks.

– Article 212 (2) TFEU in relation to activities in support of strategic partners for

defence industry;

– Article 322(1), point (a), on the adoption of the financial rules which determine in

particular the procedure to be adopted for establishing and implementing the

budget and for presenting and auditing accounts.

• Subsidiarity (for non-exclusive competence)

The response to bolster Union competitiveness must be coordinated at the Union level to be

truly effective. Pooling resources at this level enhances the impact and value of investments

by achieving economies of scale in fostering and de-risking investment in policy areas critical

for European competitiveness. This approach is more cost-effective than if Member States

acted independently.

Persistent underinvestment by the private sector across critical areas—such as infrastructure,

green and digital transitions, and industrial capacity—is compounded by fragmented capital

markets, which impede efficient cross-border investment. Despite high private savings, these

are not adequately converted into long-term investments necessary for strategic autonomy.

Public R&D spending within the Union remains fragmented and misaligned with Union-wide

priorities, with most funding coming from individual Member State budgets. Only Union-

level action can support the scale and type of projects that Member States cannot achieve

alone, creating critical mass for impactful projects and partnerships.

Furthermore, Union-level coordination promotes collaboration, essential for fostering

knowledge spillovers and derisking investment, thereby enhancing competitiveness. An

Union-wide approach offers economies of scale and cooperation among stakeholders, crucial

for boosting knowledge valorisation and improving capacities.

Last but not least, a directly managed Union programme is best placed to ensure the

application of a single set of rules for cross-border cooperation in the most strategic policy

areas covered by the ECF, thereby ensuring policy alignment and creating economies of scale

across sectors and Member States.

• Proportionality

The proposed actions do not go beyond what is required to achieve Union objectives and

Union added-value.

• Choice of the instrument

The basic act takes the form of a regulation adopted under ordinary legislative procedure in

accordance with the TFEU to ensure obligations are directly binding on recipients of ECF and

directly applicable in all Union Member States.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER

CONSULTATIONS AND IMPACT ASSESSMENTS

• Ex-post evaluations/fitness checks of existing legislation

This proposal is based on the extensive analysis of impact assessments, mid-term evaluations

for 2021-2027 programmes falling within the scope of this initiative and on available ex-post

evaluations for 2014-2020 programmes. A full list of the evaluations analysed is provided in

Annex 1 of the Impact Assessment accompanying this proposal.

EN 7 EN

• Stakeholder consultations

The European Commission conducted a public consultation to gather insights on Union

funding for competitiveness in preparation for the next Multiannual Financial Framework

(MFF) starting in 2028. This consultation, which took place over 12 weeks and included an

online questionnaire and position papers, targeted a wide range of stakeholders such as

citizens, businesses, SMEs, public authorities, and academia.

A summary of findings from 2,034 responses and 462 position papers revealed widespread

underinvestment in research and innovation and a notable innovation gap with global

competitors as key challenges to Union competitiveness. The consultation highlighted the

need for Union-level coordination to pool resources effectively, thereby achieving economies

of scale and improving the impact of investments in areas like infrastructure, innovation, and

strategic sectors.

Respondents supported measures focusing on increasing funding for strategic priorities,

ensuring continuity in funding from research to manufacturing, and limiting Union

dependencies in strategic sectors. These measures were seen as necessary to address

fragmented support across the investment journey, which hinders competitiveness by

preventing efficient transformation of savings into long-term investments.

Challenges also included fragmented capital markets and insufficient private investment,

especially affecting SMEs and scale-up companies. Among respondents, businesses and

academic institutions stressed the importance of greater investments in R&D, infrastructure

modernisation, and decarbonisation to maintain competitiveness. Despite positive feedback on

various stages of the funding process, concerns were raised over long evaluation timelines,

lack of transparency, and complex application procedures, particularly affecting SMEs and

new applicants. Simplification and coherence across programmes were suggested as ways to

improve the funding process.

The public consultation was complemented with other consultation activities for relevant

stakeholders both on the industry and the research and innovation areas.

For industry stakeholders, the 9th plenary meeting of the Industrial Forum held on 19th March

2025, focused on the new European Competitiveness Fund. The participants, represented by

over 60 members from different industries and business associations as well as Member States

were invited to provide their feedback on the problems related to the competitiveness and to

share ideas on how to address these challenges. The input received largely confirmed with the

stakeholders’ feedback received during the public consultation, emphasising the need to align

research and industrial policy and funding tools.

A more detailed summary of the consultation carried out in the framework of this proposal

can be found in Annex 2 of the Impact Assessment accompanying this proposal.

• Collection and use of expertise

This proposal is based on an extensive desk review covering approximately 140 documents,

including the above-mentioned impact assessments, mid-term evaluations and ex-post

evaluations. A series of relevant policy and scientific reports and papers have also been

consulted.

The desk review was further completed by economic modelling carried out by Joint Research

Centre (JRC) for quantifying selected impacts and cost benefit analysis carried out by an

external consultant. A comprehensive list of sources used for the purposes of this proposal can

be found in Annex 1 of the Impact Assessment accompanying this proposal. A detailed

EN 8 EN

methodology used for the purposes of the cost benefit analysis and modelling can be found in

Annex 4 of the Impact Assessment.

• Impact assessment

The Regulatory Scrutiny Board provided comments to the impact assessment.

Three different policy options have been considered in the impact assessment,

The first option is “Business-as-usual-plus”, in which the 14 programmes1 would retain their

own rules, but the Commission would try to ensure more horizontal consistency across the

funds, building on the STEP approach.

The second option is an “Enhanced coordination between programmes and a common

rulebook”, which would go further by harmonising rules across programmes, in particular by

aligning objectives, strands, and pillars, as well as the implementing tools and horizontal legal

provisions.

The third option is a “Consolidation of programmes in a new European Competitiveness

Fund”, which would bring relevant Union programmes into one fund with a strategic steer

that would prioritise policy rather than programmes.

The preferred option is the third option, as it offers a comprehensive set of policy measures to

overcome the current deficiencies in the Union funding landscape related to competitiveness

outlined above.

Option C is expected to reduce administrative costs for beneficiaries by integrating access

points and introducing a single rulebook, simplifying the funding process and creating a more

efficient, business-friendly environment, particularly benefiting high-growth industries,

SMEs, innovative start-ups, and projects requiring long-term investment support.

A simplified and upgraded application process would increase clarity for project promoters

and overall facilitate access to funding.

Option C also consolidates funding processes and broadens access to financial tools, allowing

the Union to better harness its potential to mobilise private capital and increase budgetary

flexibility. The option also strengthens connections between fundamental research and

advanced stages of research, innovation and manufacturing, ensuring a dynamic economic

structure within the Union and better bringing ideas to the market. To ensure the success of

the preferred option, the Union will implement measures to minimise potential negative

impacts, including by balancing flexibility with the need of predictability.

The preferred option would entail some adjustment costs for applicants and beneficiaries

already benefitting from Union funds. However, while initial adaptation to the new fund

would be needed, beneficiaries would only need to undertake this learning process once,

rather than repeatedly for multiple programmes.

Marketwise, a unified funding framework aims to enhance the competitiveness of European

companies by making funding more accessible and strategically aligned. It also supports

European strategic autonomy and reduces critical dependencies.

EN 9 EN

• Regulatory fitness and simplification

One of the key pillars of this proposal is the simplification, which will be achieved through

integrating access points and introducing a single rulebook, simplifying the funding process

and creating a more efficient, business-friendly environment, particularly benefiting high-

growth industries, SMEs, innovative start-ups, and projects requiring long-term investment

support.

A simplified and upgraded application process will increase clarity for project promoters and

overall facilitate access to funding.

• Fundamental rights

The proposal is in line and respects the Union values enshrined in Article 2 of the Treaty on

the European Union and the fundamental rights enshrined in the Charter of Fundamental

Rights of the European Union (the Charter), where the objectives of the proposed initiative

are linked to the promotion of fundamental rights and the application of the Charter. For

instance, the proposal promotes the right to life and private life by promoting decarbonisation

as well as equality by promoting equality of opportunity and fostering diversity across the

investment landscape.

4. BUDGETARY IMPLICATIONS

The financial envelope for the implementation of the ECF for the period from 1 January 2028

to 31 December 2034 shall be EUR 234 300 000 000 in current prices. The indicative

distribution of the amount shall be as follows:

– EUR 11 000 000 000 for activities contributing to the general objectives referred

to Article 3, as implemented in particular through cross-cutting activities such as

non-thematic support of the ECF InvestEU Instrument, referred to in Chapter II,

Section 2; Project Advisory, SME Collaboration, skills development and Access

to Funding, referred to in Chapter III.

– EUR 26 210 000 000 for the specific objectives referred to in Article 3(2), point

(a).

– EUR 20 393 000 000 for the specific objectives referred to in Article 3(2), point

(b).

– EUR 51 493 000 000 for the specific objectives referred to in Article 3(2), point

(c).

– EUR 125 204 000 000 for the specific objectives referred to in Article 3(2), point

(d).

A legislative financial statement with further budgetary information is included.

5. OTHER ELEMENTS

• Implementation plans and monitoring, evaluation and reporting arrangements

This initiative will be monitored through the performance framework for the post-2027

budget, which provides for an implementation report during the implementation phase of the

programme, as well as a retrospective evaluation to be carried out in accordance with Article

34(3) of Regulation (Union, Euratom) 2024/2509. A simplified application of the

performance framework will be used for the budgetary guarantee and financial instruments.

EN 10 EN

The deployment of market-driven instruments requires simplification efforts to attract private

investors to support Union policy areas.

The evaluation will be conducted in accordance with the Commission's Better Regulation

Guidelines and will be based on indicators relevant to the objectives of the programme.

• Detailed explanation of the specific provisions of the proposal

– Chapter I establishes the European Competitiveness Fund (ECF) as part of the

multiannual Framework Programme for 2028-2034, focusing on enhancing Union

competitiveness in strategic sectors. It sets out the Fund’s objectives, budget, and

funding rules, aiming to support projects across clean and digital transition, health,

and resilience, security and defence sectors. The main goals include increasing

technological and economic impact, reducing strategic dependencies, attracting

private investment, and supporting infrastructure and SMEs. The chapter emphasizes

aligning research and industrial policies to bolster Union industries globally,

developing critical infrastructure, and addressing skill shortages. Specific objectives

focus on fostering innovation and competitiveness in critical sectors such as clean

technology, health, digital transition, security and defence. The chapter emphasizes

reinvesting returns to boost Union competitiveness and includes guidelines for

working with Member States and third countries to expand investment opportunities.

It sets out the single rulebook. Additionally, it ensures strategic coordination of

resources and lays down the governance arrangements

– Chapter II introduces the "ECF Toolbox" composed of grants, procurement, and

coordination of industrial policy tools, and the ECF InvestEU Instrument, which uses

financial tools like loans, equity and guarantees expected to mobilise significant

private and public investment aligned with Union priorities. It lays down common

rules for collaborative research and innovation activities, while taking into account

targeted specificities under Horizon Europe, and ensures coordination of industrial

policy tools, including value chains, production ramp up, skills development and

critical competitiveness actions. The ECF InvestEU Instrument outlines how

financing will be managed and deployed by implementing partners to market,

focusing on key areas such as development and deployment of innovative

technologies. Existing deep-tech scale-up financing under the Scaleup Europe Fund

announced in the Startup Scaleup Strategy will be carried out under the terms agreed

in the current MFF. All future scaleup financing in the MFF 2028-2034 will take

place under the ECF.

– Chapter III aims to enhance Project Advisory services, support SME collaboration,

and streamline access to funding. It establishes a centralised Project Advisory for

investment support across all policy windows, business support services and a Union

business network to bolster SMEs and startups to promote their growth, access to

Union funding and investments through advisory and partnering services.

– Chapters IV – VII provide for more detailed provisions for the implementation of

each of the ECF policy windows.

– Chapter VIII, titled "Final Provisions," details the procedural and administrative

framework for implementing the European Competitiveness Fund (ECF). It describes

how the European Commission will be supported by a committee with different

configurations, focusing on different sectors for the adoption of the work

programmes. The chapter grants the Commission the power to adopt delegated acts,

which can be revoked by the European Parliament or the Council if necessary. It also

EN 11 EN

outlines the repeal of several existing Union regulations to streamline into the new

structure and includes transitional arrangements to ensure a smooth shift to the ECF

framework. The regulation is set to come into effect on January 1, 2028, binding all

Member States.

EN 12 EN

2025/0555 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

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, and amending Regulations (EU)

2021/696, (EU) 2023/588, (EU) [EDIP]

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular

Article 43(2), Article 168(5), Article 172, first subparagraph, Article 173(3), first

subparagraph, Article 175, first subparagraph, Article 182(4), Article 183 in conjunction with

Article 188, second paragraph, Article 189(2), Article 192(1), Article 194(2), Article 212(2)

and Article 322(1), point (a), thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee,10

Having regard to the opinion of the Committee of the Regions,11

Having regard to the opinion of the Court of Auditors,

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1) This Regulation lays down an indicative financial envelope for the European

Competitiveness Fund (‘ECF’), including the specific programme for defence research

and innovation, which is to constitute the prime reference amount, within the meaning

of the inter-institutional agreement on cooperation in budgetary matters, for the

European Parliament and the Council during the annual budgetary procedure. For the

purpose of this Regulation, current prices are calculated by applying a fixed 2%

deflator.

(2) The Union is facing a defining period for its future, from a political, economic, social,

environmental, climate and security perspective, including increased risks of

conventional military threats. The Draghi report on the future of European

Competitiveness12 presented a new vision to reignite sustainable growth in Europe.

10 OJ C , , p. . 11 OJ C , , p. . 12 The future of European competitiveness: Report by Mario Draghi, September 2024,

https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en

EN 13 EN

The Letta report13 outlined that Europe must leverage its Single Market to achieve a

leadership position in the global competition. The Commission communication on the

Competitiveness Compass14 provided a roadmap for boosting competitiveness,

building on the recommendations of these reports. The Commission communication

on the Clean Industrial Deal15 outlined the need to accelerate decarbonisation,

reindustrialisation and innovation, bringing together climate action and

competitiveness under one overarching growth. Sectorial Industrial Action Plans, such

as Automotive, Steel and Metals and Chemicals aim to ensure the long-term

competitiveness, sustainability, and resilience of the European industry. The State of

the Digital decade 202516 highlights the urgent need to foster cooperation and increase

public and private investments for strengthening Union’s digital leadership,

sovereignty and inclusiveness. The Joint White Paper on European Defence

Readiness17 underlines the need to massively and rapidly reinvest in defence in

support of Europe’s freedom of action. Moreover, the priorities of the Economic

Security Strategy further underline the crucial need to secure the Union’s

technological edge and de-risk economic relations including by enhancing the

resilience of supply chains and thereby reducing dependencies on others. The

European Ocean Pact outlines the need to enhance competitiveness and accelerate the

strategic transition across the blue economy sectors, focussing especially on

decarbonisation and scaling up innovation. As outlined in the Commission

Communication on the Road to the next MFF,18 the next Union long-term budget

needs to be more focused, simpler, more flexible, and predictable and better deliver on

the Union priorities, including bolstering the Union competitiveness.

(3) To regain and reinforce its competitive edge, it is essential that the Union revives the

innovation cycle by developing its disruptive innovation capacity and investing in

emerging, cutting-edge and strategic technologies with significant economic potential.

To ensure its autonomy in the global economy, the Union should guarantee its

technological and industrial leadership in strategic sectors, starting with critical raw

materials supply chains, to develop and manufacture strategic technologies in Europe,

as well as mitigate risks affecting its security and resilience emanating from critical

external dependencies. This can be done by addressing market failures and suboptimal

investment situations, in a proportionate manner and without crowding out private

funding, considering the high investment needs for delivering on Union priorities,

including for decarbonisation and the digital transition. Greater emphasis should be

put on leveraging private sector participation by improving the use of risk-sharing

mechanisms between Union funds and private investors, to ensure an efficient use of

13 Enrico Letta's Report on the Future of the Single Market, April 2024,

https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-

letta.pdf. 14 Competitiveness compass - European Commission 15 Communication from the Commission to the European Parliament, the European Council, the Council,

the European Economic and Social Committee and the Committee of the Regions, The Clean Industrial

Deal: A joint roadmap for competitiveness and decarbonisation, COM(2025) 85 final, 26.2.2025. 16 COM(2025) 290 final State of the Digital Decade 2025: Keep building the EU's sovereignty and digital

future. 17 Joint Communication to the European Parliament, the European Council and the Council on ‘European

Economic Security Strategy’, JOIN(2023) 20 final, 20.6.2023. 18 Communication from the Commission to the European Parliament, the European Council, the Council,

the European Economic and Social Committee and the Committee of the Regions, The road to the next

multiannual financial framework, COM(2025) 46 final, 11.2.2025.

EN 14 EN

public funding. This will build upon and further amplify the impact of the progress

achieved on the Savings and Investment Union, which will provide the necessary

regulatory landscape for private investments to thrive. The use of any additional

national resources is without prejudice to the application of Articles 107 and 108

TFEU.

(4) This requires that Union funding offers support to businesses and projects along the

entire investment journey. This journey encompasses all stages of developing and

manufacturing strategic technologies, products and services in Europe, from applied

research, through all forms of innovation, scale-up, industrial deployment, to

manufacturing and market deployment, including the necessary investment and

operational costs support, infrastructure and skills. The investment journey is not

linear as all stages feed each other, and ideas for new products or services might arise

at any stage. European funding needs to cater for this non-linear reality with increased

flexibility of providing support preserving predictability for funding.

(5) This also requires that Union funding facilitates the creation and expansion of

innovative and industrial ecosystems, where different actors interact in a synergetic

way. Successful ecosystems feature intensive and agile interactions and collaboration

between small and large companies, universities research institutions, infrastructure

providers, investors as well as public authorities. Without such collaborations within

and between individual innovation and industrial ecosystems, innovation potential

stays unexploited.

(6) Digital connectivity is crucial to foster collaboration within the ecosystem,

accelerating innovation, enabling seamless and secure access to critical digital

capacities and solutions across the Union, facilitating cross-border public-private

partnerships, and fostering interoperability and cost-effectiveness.

(7) Therefore, the purpose of the ECF is to establish an investment capacity to support

European competitiveness in strategic technologies, infrastructures, products and

services and sectors, providing for a more seamless investment journey. It will

promote the creation, collaboration, and expansion of innovation, private finance and

industrial ecosystems.

(8) In the EU, persistent disparities in competitiveness and innovation performance across

regions continue to exist. After sustained efforts at both EU and national level to close

the innovation gap, it is time to unlock the full potential of every region. By ensuring

that less-developed regions are effectively connected to EU value chains, the Union as

a whole will be better positioned to compete globally.

(9) The EU outermost regions and overseas countries and territories represent unique and

strategic assets that benefit the Union as a whole – including proximity to third

countries, exceptional conditions for space and astrophysics research, abundant

renewable energy potential, rich biodiversity, and extensive maritime zones. The ECF

should leverage their potential as geostrategic outposts, particularly in support of the

Union’s objectives on security, preparedness, regional value chains, and

competitiveness.

(10) The Commission should ensure tight coordination and synergies between all Union

founding sources in the MFF. For this purpose, the Framework Programme for

Research and Innovation will be tightly linked to the ECF: to ensure that the European

industry leverages research results funded by the Union to further innovate and

produce in Europe. In order to foster synergies, the work programmes adopted under

EN 15 EN

this Regulation should integrate in a specific and dedicated part and ensure coherence

with the ‘Competitiveness’ component, Part II ‘Competitiveness and Society’ of the

Regulation (EU) [XXX]19 of the European Parliament and of the Council [Horizon

Europe Framework programme for Research and Innovation]20 in accordance with the

committee procedure set out in this Regulation. Besides, the ECF shall ensure

coherence with the types of actions planned to be implemented under the Innovation

Fund, notably when developing work programmes.

(11) In order to foster synergies between actions under the ECF and the Innovation Fund,

the work programmes of the ECF should ensure coherence with the priorities and

types of actions that could be funded under the Innovation Fund. Together, the ECF,

Horizon Europe, and the Innovation Fund will provide coherent support to the Union

competitiveness.

(12) Moreover, to foresee a strong connection with the Competitiveness Coordination Tool,

the work programme of the ECF should ensure coherence with the selected projects

and competitiveness priorities identified under the Tool.

(13) Cooperation between public and private sectors can benefit European competitiveness

and leveraging private investments is necessary to complete the objectives of the ECF.

Therefore, it should be possible to implement parts of the ECF budget through public-

private partnerships together with other public and private entities, where this is the

most effective implementation form to achieve the policy objectives established for

research and technological development, while ensuring additionality and avoiding the

crowding-out of private investments. Public-private partnerships in the form of Joint

Undertakings should be established where a close involvement of the Union is

required and should ensure appropriate voting rights for the Union as well as sufficient

co-investment by other partners to leverage Union support. In view of fostering

synergies and efficiencies, it is necessary, based on the assessed needs, to ensure a

centralised establishment and administrative functions for joint undertakings.

Therefore, the number of joint undertakings should be as limited as possible.

(14) The ECF should use the whole toolbox of Union budget to unlock additional public

and private investments, in particular from institutional investors throughout the whole

investment journey. It should contribute to creating an “investment culture” by better

leveraging public funds and the de-risking potential of the Union budget. It will

maximise the added value of Union action and crowd-in private capital to secure a

competitive innovation and industrial base, also by using innovative funding

instruments including public-private co-investment with asymmetric risk returns. In

this regard, the use of financial instruments that crowd in private investors should be

the privileged option wherever possible.

(15) The Draghi report calls for more investment support to close the investment gap and

recognises InvestEU as the key risk-sharing instrument to use. The ECF InvestEU

Instrument should set up a single budgetary guarantee and deliver financial

instruments to support EU competitiveness.

(16) In a fast-changing economic, social, security and geopolitical environment, recent

experience has shown the need for a more flexible multiannual financial framework

and its programmes. To that effect, and in line with the objectives of the ECF, the

19 OJ L.., p 20 COM(2025) 543

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funding should take due account, in the budgetary procedure, of the evolving policy

needs and Union’s priorities as identified in relevant documents published by the

Commission while ensuring the necessary predictability for the implementation of

investments.

(17) The ECF should facilitate access to funding from Union programmes through user-

centric, fast, simpler and harmonised procedures and improve coherence among Union

instruments and with Member States investments. The ECF should put beneficiaries of

Union funding, and notably industry, SMEs, start-ups and scale-ups, including those

established under the upcoming 28th regime, at the centre of the design of Union

funding instruments.

(18) The ECF should operate through four policy windows that mirror Union’s key policy

priorities: Clean Transition and Industrial Decarbonisation; Digital Leadership;

Health, Biotech, Agriculture and Bioeconomy;Resilience and Security, Defence

industry and Space.

(19) Infrastructure is an essential enabler for European competitiveness. Investments in

infrastructure are a necessary condition for the proper functioning of the EU's single

market, the green and digital transition and for increasing the Union’s resilience and

security. For example, the trans-European transport network fosters sustainable forms

of transport, promotes improved multimodal and interoperable digital and transport

solutions, thereby contributing to a smooth functioning of the internal market. The

trans-European networks for energy are key for a genuine Energy Union to enable the

Union’s energy and climate objectives by connecting Union countries’ electricity and

clean energy networks to ensure our energy independence and competitiveness. For

this, the development of cross-border interconnectors, domestic transmission and

distribution grids is essential. The ECF support will work in coherence and

complementarity with the Connecting Europe Facility (CEF). It is essential for

Europe’s competitiveness to provide for synergies between the development of trans-

European networks in energy and transport with strong cross-border impact supported

by CEF, and investment support for the decarbonisation, modernisation and expansion

of transport, energy and digital infrastructure under ECF.

(20) Furthermore, Trans-European digital networks are essential to interconnect national

and international telecommunication networks, enabling seamless, secure cross-border

access to high-performance computing, cloud, data and AI capacities. In this regard, it

is essential to develop, protect and maintain the infrastructures for competitiveness,

such as terrestrial backbone networks and submarine cable infrastructures, ensuring

continuity of service in case of incidents as well as increasing the detection capacities

in sea basins to enhance undersea cables, as highlighted by the Joint Communication

‘EU Action Plan on Cable Security’.

(21) The competitive strength of the Union lies in its people. The Competitiveness

Compass identifies promoting skills and quality jobs as a horizontal enabler. The

European Council Conclusions highlight that “following the Commission

communication of 5 March 2025 on a Union of Skills, further efforts should be made

to enhance the acquisition, recognition and retention of skills across the EU, from the

building of basic skills to engaging in life-long learning, reskilling and upskilling, in

line with the European Pillar of Social Rights and its Action Plan”. A strong dialogue

is part of this. Human capital is key to the prosperity of the Union, its economic

resilience and unique social market economy. It is essential to foster prosperity,

including high quality jobs, by boosting productivity growth, making Union industries

EN 17 EN

more competitive and innovative, attracting additional investments, and supporting a

dynamic single market and enhanced economic security. The ECF should contribute to

the Union of Skills21by supporting the development of a skilled workforce equipped

with the specific skills needed in the strategic investment areas of the Fund, through

life-long learning, education, training projects and apprenticeships, and the creation of

attractive quality jobs accessible to all and by accompanying ECF investments with

skills investment to alleviate skills shortages in the given strategic sector of the ECF

and indicate when it is included. This includes a Skills Guarantee that should enable

workers in sectors undergoing restructuring to upskill and reskill, in line with relevant

national, regional and/or sectoral transition strategies. The ECF should support skills

intelligence, upskilling and reskilling, and foster public-private partnerships between

universities, VET providers, businesses, in particular SMEs, social partners and

applied research institutes. The ECF could also support activities of University

Alliances, also in cooperation with employers, to improve their delivery on innovation

and the development of skills and talent.

(22) The ECF should contribute to the objectives of decarbonising the European industry

by promoting the development and deployment of clean technologies. The ECF will

support the implementation of the Clean Industrial Deal, turning the clean transition

and decarbonisation into a driver of growth and competitiveness for European

industries. To this end, the ECF will support decarbonisation with a technology neutral

approach, while recognising a contribution of different technologies to grid balancing

and sector coupling, to align in particular with the investment needs of energy

intensive sectors. Furthermore, it should advance the implementation of the Affordable

Energy Action plan, ensuring secure, affordable, efficient and clean energy for all

Europeans. The ECF will contribute to the shift towards a decarbonised, circular,

resource-efficient, climate-neutral, water resilient and bio-based economy. It will also

support sustainable, nature-positive and resilient industrial production in energy-

intensive industries in the Union, in line with the objectives of the forthcoming

proposal for the Industrial Decarbonisation Accelerator Act. It should also support the

objectives of the Regulation (EU) 2024/172422 of the European Parliament and of the

Council (Net-Zero Industry Act), boosting the manufacturing capacity of net-zero

technologies and the ramp up of production capacities and investing in related

infrastructure. To decarbonise the transport sector, amongst others the ECF will also

invest in sustainable fuels, the related infrastructure and mobile assets as well as in the

modernisation and digitisation of transport.

(23) The ECF will also contribute to protect, restore and improve the quality of the

environment, including water, coast, sea and soil, to reduce pollution, to halt and

reverse biodiversity loss and tackle the degradation of terrestrial and marine

ecosystems, while enhancing climate and water resilience. The ECF Clean Transition

and Decarbonisation window should finance projects that contribute to these

objectives.

21 Communication from the Commission to the European Parliament, the European Council, the Council,

the European Economic and Social Committee and the Committee of the Regions, The Union of Skills,

COM(2025) 90 final, 5.3.2025. 22 Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 on

establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing

ecosystem and amending Regulation (EU) 2018/1724 (OJ L, 2024/1735, 28.6.2024, ELI:

http://data.europa.eu/eli/reg/2024/1735/oj).

EN 18 EN

(24) Projects and activities under the Clean Transition and Industrial Decarbonisation

window shall promote energy efficiency, integrated renewable energy, new energies,

energy renovations, and innovative heating and cooling solutions.

(25) Union manufacturing productivity also depends on resource efficiency, with materials

input representing a signification portion of production costs. Circular approaches to

products and manufacturing boost resource productivity, whilst value retention

activities such as remanufacturing, refurbishment and repair provide significant job

opportunities. The ECF should contribute to the bioeconomy, circular economy and

access to materials including biomaterials.

(26) The Union can become a global leader in digital technologies, such as artificial

intelligence, digital identity, semiconductors, robotics, quantum technologies, space

technologies and others by harnessing the untapped potential of our researchers and

industries. The ECF should promote the development and deployment of digital

solutions and infrastructures and capacities across the Union for the benefit of the

European society and economy.

(27) Chronic underinvestment in the European tech sector is one of the main reasons for the

lack of competitiveness of the Union, as compared to our global competitors.

Moreover, European sovereignty in digital technologies and infrastructures has

become key for our resilience, security and for democracy, as highlighted in the 2025

State of the Digital decade report which also underlined the remaining significant gaps

to reach Union’s 2030 goals, notably for the development of Artificial Intelligence

(AI) and space technologies, semiconductors, 5G and digital skills.

(28) While Europe’s digital transformation is accelerating, the many critical dependencies

on non-Union suppliers (from raw materials, advanced semiconductors, and AI chips

to systems, infrastructures and services) require European alternatives that anchor the

digital transformation in Europe’s economy, with our shared values as the essential

differentiator, including by leveraging the power of open-source technologies. Support

for digital leadership is driven by regulatory and non-regulatory Union policy

initiatives in the digital area such as the AI Act, AI Continent and AI Action Plan, the

Apply AI Strategy, the Cloud and AI Development Act, the Data Union Strategy, the

Digital Networks Act, the EU Quantum Strategy and the Quantum Act, the Cyber-

Solidarity Act, the Cyber-Resilience Act and the Cybersecurity Act, the White Paper

for European Defence-Readiness 2030, and the revision of the EU Chips Act, and by

future policy initiatives. The digital areas to invest in include a number of critical

frontier technologies such as Artificial Intelligence (AI) and AI-powered digital twins,

robotics, semiconductors, autonomous or quantum technologies. They also include key

infrastructures such as digital identity, cloud, high performance and quantum

computing, communication, advanced underwater observation infrastructure, and

sensing infrastructures, digital connectivity networks, including submarine cables, as

well as cybersecurity, defence or space capacities. Fostering their uptake across private

and public sectors makes our entire economy more competitive, secure, sovereign, and

sustainable, fortifying societal resilience and preparedness. Moreover, interoperable

digital technologies are driving the modernisation of the public sector, serving for the

integration of the single market, which is our most valuable stepping stone for

European digital start-ups to become globally competitive. Technological progress and

innovation in every economic sector, and thus their productivity and

competitiveness, are essentially driven by the integration of sector-specific digital

developments and use of digital solutions that should be supported across the ECF.

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(29) Technological progress and innovation in every economic sector, and thus their

productivity and competitiveness are essentially driven by the integration of sector-

specific digital developments and use of digital solutions that should be supported

across the Fund in the context of the activities developed in the different policy

windows of the EDependency on high-risk suppliers in critical sectors can pose a

strategic risk of foreign interference and jeopardise the Union’s security, resilience and

sovereignty. The NIS Cooperation Group, in cooperation with the Commission and the

European Union Agency for Cybersecurity (ENISA), plays a key role in carrying out

EU Coordinated security risk assessments of critical supply chains, taking into account

technical and, where relevant, non-technical risk factors in accordance with Article 22

of Directive (EU) 2022/2555.23

(30) Europe must protect its security interest against suppliers which could represent a

persistent security risk due to the potential interference from third countries as well as

their security, notably cybersecurity. It is therefore necessary to reduce the risk of

persisting dependency on high-risk suppliers in the internal market, including in the

ICT supply chain, as they could have potentially serious negative impacts on security

for users and companies across the Union and the Union’s critical infrastructure in

terms of the integrity of data and services as well as the availability of service. This

restriction should be based on a proportionate risk assessment and associated

mitigation measures as defined in the Union policies and laws.

(31) A successful deployment of interoperability across borders and sectors has a

substantial, untapped potential, especially for the competitiveness of European

businesses. Therefore, it is imperative to invest in the development of pan-European

digital public infrastructures encompassing interoperable, secure and sovereign digital

networks, solutions and services to address the fragmented interoperability landscape

across the Union, notably to transform the Member States’ public sector into an

interconnected, frictionless, and agile digital ecosystem. The implementation of

interoperability by European public administrations at all levels is a precondition for a

resilient and innovation-driven public sector which contributes to the Union’s goals of

competitiveness, technological sovereignty and security.

(32) To improve public health and strengthen the competitiveness of the Union, it is crucial

to tackle the rise of communicable and non-communicable diseases through targeted

health promotion and disease prevention strategies and continued investments,

including into the pharmaceutical and medical devices sectors. Such action, coupled

with fostering effective, accessible, and resilient health systems, can significantly

boost workforce productivity by improving population health and alleviating labour

shortages, while also supporting health systems that drive innovation. Leveraging

health data is essential in those efforts, enabling informed decision-making. Moreover,

fostering innovation by solidifying the evidence-based path from medical

breakthroughs to marketable solutions is key to enhancing Union competitiveness and

also beneficial to reinforcing supply security.

(33) The bioeconomy is a growth engine that allows Europe to make a success of the green

transition, strengthen its competitiveness and strategic autonomy. Although Europe’s

23 Directive (EU) 2022/2555 of the European Parliament and of the Council of 14 December 2022 on

measures for a high common level of cybersecurity across the Union, amending Regulation (EU)

No 910/2014 and Directive (EU) 2018/1972, and repealing Directive (EU) 2016/1148; Text with EEA

relevance, ELI: http://data.europa.eu/eli/dir/2022/2555/2022-12-27.

EN 20 EN

bioeconomy is already reshaping industrial ecosystems, reinforcing strategic

autonomy, and unlocking value across strategic sectors, it is crucial to strengthen

investments, initiatives and strategies at Union and Member State level to bring it from

niche to norm across Union sectors and regions to realise its potential, and in

particular for key industries. There is a need to foster the competitiveness,

sustainability, resilience and fairness of the agricultural, fisheries, aquaculture and

forestry sectors, of rural and coastal areas and to contribute to long-term food security

in the Union.

(34) Investments, initiatives and strategies are needed to close the innovation gap and

accelerate the discovery, development, derisking, demonstration, scale-up of

bioeconomy innovations, to support their market uptake, to provide finance along the

innovation journey for start-ups and for scaling up high growth companies, to

maximise resource efficiency and to secure sustainably sourced biomass supply. The

bioeconomy contributes to decarbonisation, by providing sustainable alternatives to

fossil-based products and processes, but also to circularity, the clean transition, carbon

farming, biodiversity, ecosystem services, and nature restoration.

(35) Fostering the resilience of the European industry is essential for the Union to remain

competitive even in times of crisis and is essential for Union’s security. To ensure its

resilience, the ECF should support actions aimed to reduce dependencies and diversify

supply in strategic sectors such as the raw materials sector, thus reinforcing the Union

capacities for a secure supply of sustainable critical raw materials along the whole

value chain in line with the objectives of the Regulation (EU) 2024/1252 of the

European Parliament and of the Council (Critical Raw Materials Act)24 and the

chemicals industry, underpinning almost all industry sectors. Pursuing an ambitious

and mutually beneficial trade agenda is essential for the Union’s ability to diversify its

supply chains and effectively reduce dependencies.

(36) In addition, the geopolitical context, in particular Russia’s war of aggression against

Ukraine, has exposed the Union and its Member States to a high risk of materialisation

of conventional military threats, in particularly to the ones bordering Russia, Belarus

and Ukraine. Considering this, together with the threats on the rest of the EU

borders,increased investment in defence is deemed a priority, including for projects

such as the Baltic Defence Line and Eastern Border Shield. Defence industry and

space are key ecosystems to ensure the European Union’s resilience and strategic

autonomy and increase the Union’s readiness and preparedness in line with the White

Paper for European Defence – Readiness 2030.25 It also supports the Union’s focus on

sustainability, competitiveness, resilience and security and the Union position in the

world. A strong European Defence Technological and Industrial Base (EDTIB) is an

indispensable prerequisite of defence readiness and credible deterrence. It is also

essential for the protection of European citizens, ensuring the Union’s ability to

respond to emerging security challenges, to support Ukraine, and to uphold Europe's

position as a global actor. The EDTIB is recognised as a strategic asset, contributing to

the Union’s economic resilience and security, innovation, technological leadership and

24 Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024

establishing a framework for ensuring a secure and sustainable supply of critical raw materials and

amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020 (Text

with EEA relevance), OJ L, 2024/1252, 3.5.2024, ELI: http://data.europa.eu/eli/reg/2024/1252/oj 25 Commission, the High Representative have present, White Paper for European Defence – Readiness

2030, 19.03.2025.

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strategic autonomy. Across the Union and its Member States, the defence sector is

evolving rapidly, with cutting-edge technologies and new actors playing an

increasingly important role. Innovation cycles are also accelerating, with growing

emphasis on rapid prototyping, testing and validation, including in real operational

environments. To improve military mobility, investments in new civilian-military

assets, including mobile assets and dual use infrastructure need to be developed.

Coordinated and sustained support to the EDTIB is therefore key to reinforce the

collective security of the Union and its Member States, the development of Union-

wide defence projects of common interest, and Europe’s defence readiness. In relation

to this, actions supporting the reinforcement of the Ukrainian defence technological

and industrial base should be also financed, as its industry will be essential to support

European increased defence needs. To this end, the ECF shall be implemented taking

into account the objectives of the Strategic Compass for Security and Defence and

shall be consistent with the defence capability priorities commonly agreed by Member

States within the framework of the Common Foreign and Security Policy (CFSP).

(37) Union Space technology, data and services have become indispensable in the daily

lives of Europeans and play an essential role in preserving strategic interests. Space

contributes to all sectors of the economy from agriculture to banking. It is a critical

enabler for security and defence, and for the well-functioning and competitiveness of

the economy for example by providing accurate position-services for a broad spectrum

of sectors and users, ranging from aviation to maritime, and thereby playing a key role

for Europe and European citizens’ independence and sovereignty. Space is crucial for

the achievement of EU's priorities and its strategic goals, including for economic

prosperity and economic security, decarbonisation, green and digital transition. Space

contributes to the economic security of the Union and its Member States. It also drives

scientific research and technological innovation, with spill-over effects in a wide range

of sectors. Finally, space offers a platform for international cooperation and space

diplomacy to underpin the Union’s position as a reliable partner on the global scene.

(38) Space components under the ECF are sensitive. Their services must be robust and

completely reliable. The continuity of their services and a high-level of security must

be ensured, even in the most serious crisis situations. The consequences of infringing

those conditions could potentially have dramatic consequences for the security of the

Union and its Member States. To that end, specific provisions for specific

circumstances should apply.

(39) The ECF should also support the policy goals of a safer, more secure Europe that is

better prepared against security threats, in particular by enhancing European industry

competitiveness and strategic autonomy, including maritime and customs security,

critical energy and transport infrastructure and civil preparedness. To address

increasing security and hybrid threats like terrorism, organised crime, cybercrime,

climate disasters and attacks on critical infrastructure, the ECF should support

Europe’s efforts to increase its threat awareness, build resilience and boost security

investments, and promote preparedness by design across relevant sectors.

(40) Increasingly, we see the same technologies used for market and defence applications,

often driven by startups innovators. It is therefore imperative to seek measures to

better exploit the potential civil-defence synergies and of dual-use technologies. Dual-

use technologies, materials, knowledge, or products that can be used for both civilian

and military purposes may be supported across the ECF, to ensure a better connection

of the Union’s technological industry to its defence industrial base as well as to the

technological innovation capital of Europe.

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(41) To ensure predictability for stakeholders and provide a sufficient level of certainty for

investment planning, the ECF should set out an indicative budget distribution across

the policy windows for the period 2028 to 2034 while maintaining flexibility to

reallocate parts of the budget in accordance with new challenges and emerging

priorities throughout the duration of the Multiannual Financial Framework. To this

extent, it should be ensured that a certain minimum budget envelope is available for

long-term planning and commitments broken down over several years into annual

instalments in each policy window, allowing the Union to consolidate its demand and

enter into strategic long-term relations with recipients give long-term predictability to

industry and financial ecosystem, and enable the setup of important Union

infrastructures, such as for hydrogen and industrial carbon management, world-class

satellite systems, underwater observation infrastructures, cybersecurity,

semiconductors quantum, AI and high-performance computing or critical

infrastructure, and defence or space projects of common interest.

(42) To achieve the important objectives and manage the ECF, a sufficient level of

resources for the implementation of the ECF should be provided. The budget envelope

should therefore provide a sufficient contribution to the cost of managing the ECF.

(43) Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council

applies to this basic act. It lays down the rules on the establishment and the

implementation of the general budget of the Union, including the rules on grants,

prizes, non-financial donations, procurement, indirect management, financial

instruments and budgetary guarantees. In accordance with Regulation (EU, Euratom)

2024/2509, Regulation (EU, Euratom) No 883/2013 of the European Parliament and

of the Council,26 Council Regulation (EC, Euratom) No 2988/95,27 Council Regulation

(Euratom, EC) No 2185/9628 and Council Regulation (EU) 2017/1939,29 the financial

interests of the Union are to be protected through proportionate measures, including

the prevention, detection, correction and investigation of irregularities and fraud, the

recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the

imposition of administrative sanctions. In particular, in accordance with Regulations

(EU, Euratom) No 883/2013 and (Euratom, EC) No 2185/96, the European Anti-Fraud

Office (OLAF) may carry out investigations, including on-the-spot checks and

inspections, with a view to establishing whether there has been fraud, corruption or

any other illegal activity affecting the financial interests of the Union. In accordance

with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) is

competent to investigate and prosecute fraud and other criminal offences affecting the

26 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11

September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and

repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council

Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1, ELI:

http://data.europa.eu/eli/reg/2013/883/oj). 27 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European

Communities financial interests (OJ L 312, 23.12.95, p. 1, ELI:

http://data.europa.eu/eli/reg/1995/2988/oj). 28 Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks

and inspections carried out by the Commission in order to protect the European Communities' financial

interests against fraud and other irregularities (OJ L 292,15.11.96, p. 2, ELI:

http://data.europa.eu/eli/reg/1996/2185/oj). 29 Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the

establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1,

ELI: http://data.europa.eu/eli/reg/2017/1939/oj).

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financial interests of the Union as provided for in Directive (EU) 2017/1371 of the

European Parliament and of the Council.30 In accordance with Regulation (EU,

Euratom) 2024/2509, any person or entity receiving Union funds is to fully cooperate

in the protection of the Union’s financial interests, to grant the necessary rights and

access to the Commission, OLAF, the European Court of Auditors and, as appropriate,

to the EPPO, and to ensure that any third parties involved in the implementation of

Union funds grant equivalent rights.

(44) To promote the Union’s competitiveness, in addition to its budget, wherever possible

the ECF should attract and generate additional assigned external revenues. In this

respect, the ECF should be open and facilitate synergies and cooperation for any

financial or non-financial contributions that can support the competitiveness

objectives, including from Member States, third countries and international

organisations.

(45) To promote the resilience of the Union economy, notably by reducing strategic

dependencies, the ECF should enable Union preference for support to manufacturing

and developing strategic technologies and sectors located in the Union, notably for

actions related to Union strategic assets, interests, autonomy or security, in line with

Union law and its international commitments. It is essential that European funding

contributes to the uptake of strategic technologies developed in the Union and funded

through European funding. To support the development and manufacturing in the

Union of strategic technologies funded by the Union, the ECF should allow to

condition its support through control restrictions, asset transfers restrictions and supply

restrictions to the use of specific products and technologies.

(46) ECF activities should be open for cooperation with third countries where this is in the

interest of the Union. To that extent, the Union may associate, fully or partially, third

countries to the activities under the ECF. Association should be subject to a fair

balance as regards contributions and benefits of the third countries and ensure the

protection of the financial and, where relevant, security interest of the Union.

(47) The ECF should be open and facilitate synergies with other Union activities that

support policy areas closely linked with competitiveness, the including the Framework

Programme for Research and Innovation, external policies and programmes in shared

management with Member States. This should allow for the combination and

cumulation of funding for actions supporting the objectives of more than one Union

policy area. Cooperation between the Commission and Member States should be

established to ensure consistency and complementarities between the ECF and the

Regulation (EU) [XXX] [National and Regional partnership plans] Moreover, support

from the Regulation (EU) [XXX] [National and Regional Partnership Plans ] and

from the ECF to projects that have been awarded the Competitiveness Seal should be

facilitated, taking advantage of the assessment conducted prior to the attribution of the

Seal and without prejudice to the State aid rules. The criteria for awarding the

Competitiveness Seal should be designed in a manner that can enable to seal to also

act as a quality guarantee providing assurances to institutional investors that the

project has been appropriately vetted. The Competitiveness Seal should be awarded to

high quality projects contributing to the objectives of the ECF. The ECF may be

30 Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight

against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29,

ELI: http://data.europa.eu/eli/dir/2017/1371/oj).

EN 24 EN

implemented jointly with other Union programmes or other co-donors or co-investors,

and those partners should be able to participate in evaluation committees for jointly

funded award procedures. The implementation of all those synergy activities should be

simple. Reporting and record-keeping requirements for recipients should be reduced,

where possible to a single contractual reporting and payment stream with a single set

of rules for all support provided.

(48) Union support should focus on the achievement of policy objectives. In all cases, ECF

funding should be provided in the form best able to achieve its objectives, while

limiting administrative burden for recipients to the absolute minimum. When

implementing the budget, the ECF should provide the full toolbox of Union support

and ensure synergies between its supported policies, in particular by allowing for

simplified common award procedures to pursue objectives of more than one policy. As

such, the elimination of burdensome financial reporting through the widest possible

use of financing not linked to cost should be pursued as a major simplification

measure.

(49) The ECF should support a diverse set of policies contributing to competitiveness,

while providing a harmonised baseline set of eligibility criteria to provide policy steer

and ensuring a sufficient level of protection of economic and security interests by

focusing Union support on recipients in the Member States, including Overseas

Countries and Territories. Where necessary, the ECF should establish specific

eligibility conditions for strategic sectors and technologies, including underlying value

chains, critical Union infrastructures and specific capabilities.

(50) The ECF should be implemented through work programmes as set out in this

Regulation. Work programmes could be adopted under an annual or multi-annual

format. The latter could in particular be considered for the purposes of Union support

provided for budgetary guarantees and financial instruments, with a view to provide

predictability to implementing partners. The designated mode of implementation

reflects the identified needs for directionality, flexibility, predictability and efficiency,

required to meet the objectives of the Regulation. In accordance with Regulation (EU

Euratom) 2024/2059, the work programmes and the call documents will set out more

technical implementation details for the budget across the set of policies supported by

the ECF, including specific eligibility and award criteria depending on the instrument

of budget implementation, be it grant, or procurement, and the specific policy

objectives pursued. In accordance with Article 136 of the Financial Regulation,

eligibility restrictions should apply to high-risk suppliers, for security reasons. Work

programmes are also the appropriate place to allocate budget in accordance with

evolving policy priorities, and they should set out contributions, specific conditions

and expected results.

(51) For financial instruments and the budgetary guarantee to effectively crowd in private

money, implementing partners need to be closely associated. This ensures policy steer

and alignment, as well as project pipeline generation. The experience and lessons

learnt with the implementation of the InvestEU Programme emphasise the importance

of investment guidelines in creating this buy-in and providing the necessary

predictability and visibility to the implementing partners and investors, in order for

them to set up their organisational capacity and originate the pipeline of investments,

while allowing the necessary flexibility to ensure an adequate policy steer during

implementation. Investment guidelines should include detailed description of the

policy areas of intervention and investment focus with a view to ensuring additionality

and incentivise crowding in private and public investment in support of the Union’s

EN 25 EN

policy objectives and strategic projects. The investment guidelines should be prepared

in consultation with implementing partners to benefit from their market knowledge,

and enable them to invest in Union priority areas and incentivise them for more risk

taking. To cater for evolving needs and developments, the investment guidelines may

be reviewed in the context of the MFF mid-term review.

(52) Deep-tech scale-up financing under the Scaleup Europe Fund announced in the Startup

Scaleup Strategy, existing at the time of the entry into force of the present Regulation,

should be carried out under the terms agreed in the MFF 2021-2027. All scaleup

financing under the MFF 2028-2034 should take place under the ECF.

(53) To deliver on the objective of translating research results into markets and

strengthening Union’s industrial presence in strategic technologies and sectors,

Regulation (EU) [XXX] [Horizon Europe framework programme for Research and

Innovation] will be tightly linked with ECF and will support research and innovation

activities as laid down by the policy windows of ECF. The ECF work programmes

will include collaborative research and innovation actions, in a specific dedicated part.

This may also include contributions to European Partnerships established under the

Framework Programme for Research and Innovation, where necessary to achieve the

ECF objectives. The ECF work programmes should also set out policy priorities that

will steer EIC challenges.

(54) In order to foster resilient Union value chains spanning across multiple Member

States, the work programmes may include special value-chains scale up calls which

shall support both. project preparation and crowding in of additional public and private

capital to integrate suppliers, manufacturers, and innovators from different Member

States and diversify sources of supply.

(55) In order to foster competitiveness of European industry through industry-driven

bottom-up innovation, the work programmes may include special 2-stage bottom-up

award procedures to identify and support EU Tech frontrunners through industry-

driven consortia.

(56) A horizontal, cross-cutting funding toolbox should be set at the service of all policy

windows, offering every form of support allowed by Regulation (EU, Euratom)

2024/2059, such as financial instruments, including support provided in the form of

equity. The choice of the specific funding instrument and in particular whether support

will be repayable or not, shall depend on the nature of the actions to be funded (for

example underlying market failures, the specific need, the nature of the industry, the

stage of development or type of the beneficiary). Union support should derisk projects

to the degree necessary for the private sector to invest and for the project to be

successfully delivered. Co-financing rates should be as low as possible and as high as

needed to realise the supported project. A mix of funding tools could be used,

including blending operations and combination of funding. The ECF should also

provide each policy area with advice on the most appropriate funding tool to be used

for its specific actions, depending on, inter alia, the development stage, the specific

industry needs and underlying market failures.

(57) Multistakeholder consultations, including those of researchers and industry, the social

partners, as well as investors, end-users and civil society, from SME, small to large

organisations, should contribute to the priorities of the ECF. Those consultations

should be structured via advisory boards including the ECF Stakeholder Board whose

task should be to provide insights and advise the Commission on policy trends, on

investment needs, and on the implementation of the ECF from the perspective of

EN 26 EN

project promoters, with the aim to ensure that feedback from stakeholder communities

is reflected in the design of work programmes.

(58) Important Projects of Common European Interest (IPCEIs) are a state aid instrument

and industrial policy tool assessed by the Commission pursuant to Article 107(3),

point (b), TFEU31. They contribute significantly to economic growth, job creation, the

green and digital transition and competitiveness and resilience of the Union industry

and economy. IPCEIs make it possible to bring together knowledge, expertise,

financial resources, and economic actors throughout the Union and create positive

spillover effects for the entire Union. IPCEIs also allow to crowd-in private

investments in high-risk projects that are essential to bring breakthrough innovation

closer to industrial deployment and infrastructures projects of great importance to the

Union with open and non-discriminatory access. Given the commonalities of

objectives pursued, the ECF will foster synergies between Union funding and IPCEIs

by supporting specific projects integrated within IPCEIs, based on their contribution to

Union strategic priorities, such as the resilience of the Union, and on the ability of

ECF financing to broaden participation, notably of SMEs, or broaden Member State

coverage, as well as increase Union added value.

(59) The ever-evolving geopolitical situation underlines the need for Europe to ensure its

own strategic autonomy and avoid strategic dependencies. The ECF will include the

possibility to support production ramp up and undertake accelerated competitiveness

actions for projects that offer specific support to European strategic autonomy. This is

for example the case for projects that have been selected as strategic under Regulation

(EU) 2024/1252 (Critical Raw Materials Act), Regulation (EU) 2024/1724 (Net Zero

Industry Act) and the Regulation (EU) 2025/102 (Critical Medicines Act).

(60) The mutual insurance mechanism (MIM) set up pursuant to Horizon Europe and

managed by the Commission has proved to be an important safeguard mechanism

which mitigates the risks associated with the amounts due and not reimbursed by

defaulting participants. Therefore, the MIM should be continued and, where relevant

open to use by actions under the ECF.

(61) To explore all possible venues to improve European competitiveness, the ECF should

provide a structured framework for targeted experimentation in the award and

implementation of Union support, in particular to better target and accelerate Union

award procedures and simplify and accelerate their implementation to the benefit of

recipients. This should allow, within a concretely defined frame, to specify on a case-

by-case basis certain actions or categories of actions to benefit from certain additions,

derogations and exceptions from other Union legislation and to test the impact in a

real-world environment for the limited period of the duration of the ECF while

ensuring that appropriate safeguards, in particular a common European interest, are in

place. The application of experimental measures may provide lessons for the

assessment of future changes to the horizontal legal framework for the provision of

Union support.

(62) Where necessary and duly justified, the ECF should provide a targeted intervention

mechanism to deliberately provide Union support to certain actions of strategic and

economic importance. Where certain important projects could not be successfully

31 Communication from the Commission, Criteria for the analysis of the compatibility with the internal

market of State aid to promote the execution of important projects of common European interest

C/2021/8481 (OJ C 528, 30.12.2021, p. 10).

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implemented within the timeline for completion of regular competitive award

procedures, the ECF should also provide for the possibility of directly taking-up

excellent projects that remained unfunded under any Union programme or continue to

financially support well-working projects seamlessly in their next steps along the

investment journey, without imposing additional administrative burden for the

recipients. In addition, in line with the approach taken by the relevant sectoral

legislation, such as the Net Zero Industry Act (NZIA), the Critical Raw Materials Act

(CRMA) or Renewable Energy Directive (RED III) and referenced in the Clean

Industrial Deal (CID) communication and the Single Market Strategy, cases in which

specific projects are considered to be of public interest or presumed to be of overriding

public interest may be identified in separate existing or future legislation.

(63) Where necessary and duly justified, the ECF should also be able to provide an

‘accelerated intervention’ mechanism to accelerate the provision of Union support to

address urgent funding needs to enable the successful implementation of important

business ideas in the single market where such funding is not available, at a sufficient

level, on the market. For this purpose, due to the urgency, certain checks should be

conducted only after the provision of funding, facilitating and limiting administrative

burden for recipients and providing financial certainty in the fastest possible manner

while accepting a reasonable level of financial risk to the Union commensurate with

the objectives pursued.

(64) Where necessary and duly justified, the ECF should incentivise start-ups and

innovators established outside of the Union to relocate or invest, and to build up their

business in the single market, by providing an ‘inducement intervention’ mechanism

attracting successful start-ups and innovators from all over the world, drawing also on

its network of EU Delegation. For this purpose, the eligibility requirements, for

example as regards establishment in the Member States or associated countries at the

start of Union support, should be temporarily waived to allow recipient to resettle

within a set timeframe with the assurance of subsequent Union support. The financial

interest of the Union should be duly protected, and payments should not be provided

until the eligibility requirements are fulfilled.

(65) Where necessary and duly justified, the ECF should allow for a more flexible and

accessible way of identifying, selecting and supporting innovative projects and ideas,

including by providing for instrument-neutral award procedures that will allow

researchers, entrepreneurs, companies and other citizens to propose their innovation

solution without the initial artificial narrowing or limitation of Union support to a

grant, procurement or other form of Union support. Ideas should be assessed and

selected based on their merit in addressing the respective challenge or Union policy

priority, and the most appropriate and effective instrument of budget implementation

to support these ideas, whether grant, procurement or others, should be selected only

afterwards based on the requirements and merits of the individual project.

(66) Where necessary and duly justified, the ECF should also simplify and accelerate the

implementation of Union support for certain important projects.

(67) The ECF InvestEU Instrument should provide the budgetary guarantee and financial

instruments to mobilise additional investment across the Union to support European

competitiveness in strategic technologies, services and sectors.

(68) The ECF InvestEU Instrument will be implemented by partners, including the

European Investment Bank (EIB) Group, international financial institutions, the

national promotional banks and institutions as well as export credit agencies. The open

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architecture will remain a key aspect of the ECF InvestEU Instrument, building on the

broad collaboration and experience under the InvestEU Programme. The Commission

and the EIB Group should work in partnership with the objective of supporting the

implementation of the ECF InvestEU Instrument and fostering consistency,

inclusivity, additionality, and efficient deployment.

(69) To avoid undue administrative burden and ensure a swift deployment and support to

the market in continuity across programming periods, the implementation of the ECF

InvestEU Instrument will build on the existing community of the InvestEU

Programme pillar assessed implementing partners, contractual arrangements and

relevant financial products. Moreover, to ensure sound financial management, a faster

roll-out and simplification to entrusted entities, the implementation of the ECF

InvestEU Instrument should build on existing agreements, templates for legal and

contractual arrangements, as well as established monitoring and reporting tools. This

improves the impact of Union support and allows for more focus on efficiently

supporting final recipients. The Commission may rely on and reuse in full or in part

the agreements with implementing partners concluded under Regulation (EU)

2021/253, and on assessments made by itself or other entities in the context of

agreements under that Regulation.

(70) To provide implementing partners with broader access to the ECF InvestEU

Instrument, the Commission should be able to conclude agreements in indirect

management with all the categories of entities listed under Article 62(1), point (c),

Regulation (EU, Euratom) 2024/2059. To unlock private capital, bodies established in

a Member State, governed by the private law of a Member State or Union law should

also be eligible to be exceptionally entrusted, following a positive pillar assessment,

with the implementation of financial instruments or budgetary guarantees, including

when combined with grants or with other forms of non-repayable support in blending

operations, to the extent that such bodies are provided with adequate financial

guarantees. Such bodies should be selected taking due account of the nature of the

financial instrument or budgetary guarantee to be implemented, the experience and the

financial and operational capacity of those bodies, and their rules and procedures for

verifying the economic viability of projects of final recipients. The selection should be

transparent, justified on objective grounds and should not give rise to a conflict of

interests.

(71) To ensure consistency, the budgetary guarantee and financial instruments, including

when combined with non-repayable support in blending operations, under the ECF

InvestEU Instrument should be implemented in accordance with Title X of Regulation

(EU, Euratom) 2024/2509.

(72) To ensure consistency in the implementation of budgetary guarantees, financial

instruments and blending operations under different Union programmes, the

Commission should develop guidance including technical arrangements, terms and

conditions to deploy these forms of support under those programmes.

(73) To comply with the requirements of Regulation (EU, Euratom) 2024/2509, this

Regulation should set out a maximum amount of the budgetary guarantee under the

ECF InvestEU Instrument, a provisioning rate for that budgetary guarantee in line with

Article 214(1) of Regulation (EU, Euratom) 2024/2509, and an obligation for the

Commission to assess every year that provisioning rate following in accordance with

the assessment referred to in Article 41(5) of Regulation EU, Euratom) 2024/2509 and

in line with the Commission’s risk management framework and the possibility for

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third parties and third countries to contribute specifically to the ECF InvestEU

Instrument.

(74) It is necessary to provide the possibility that the ECF InvestEU Instrument, including

the budgetary guarantee, serves as a horizontal delivery tool for other Union policies,

to provide support under other Union programmes in accordance with the objectives

set out in those programmes. For that purpose, the corresponding provisioning of

financial liabilities should be made by those other programmes. Where other Union

programmes contribute to objectives of Union’s internal policies, support in the form

of a budgetary guarantee or financial instruments, including when combined with non-

repayable support in a blending operation, should be provided exclusively through the

ECF InvestEU Instrument.

(75) The ECF InvestEU Instrument should provide a single, centralised place for

establishment and management of a budgetary guarantee and all financial instruments

contributing to objectives of Union’s internal policies, which will contribute to

improved efficiency and increase policy impact of Union financing. The financial

products established under the InvestEU Regulation are State aid consistent within the

meaning of the Article 212(2) of Regulation (Union, Euratom) 2024/2509. The

Commission and the implementing partners should ensure that new financial products

to be established under this Regulation are State aid consistent within the meaning of

Article 212(2) of Regulation (Union, Euratom) 2024/2509 to ensure their swift

deployment.

(76) Whereas European innovative start-ups and scale-ups are essential engines of growth

and competitiveness, and acknowledging that they face persistent barriers to access

necessary financing in the Union, the ECF InvestEU Instrument should provide

targeted financial support to growing and scaling up companies in the Union at all

stages — from inception and start-up to scale-up and industrial manufacturing. The

ECF InvestEU Instrument should provide direct and indirect funding for European

companies with a view to attract private investors — thereby unlocking the full

potential of European entrepreneurship and investment. This will empower start-ups

and scale-ups and reinforce the Union’s global leadership in technology and industry,

while bridging Europe’s innovation and investment gaps and delivering on the

ambition of the Savings and Investment Union. The ECF InvestEU Instrument would

include a facility aiming to ensure that high-growth enterprises developing or

deploying innovative technologies, including in areas important for the Union’s

strategic interests and economic security, can access adequate capital to scale up their

businesses. It will mobilise investments from Europe’s capital markets, in line with

Union’s policy priorities.

(77) A Project Advisory should be established to support objectives of the ECF, building

on the of InvestEU Advisory Hub. It should unify advisory support to private and

public entities across Europe, offering tailored services to potential beneficiaries and

contribute to development of a pipeline of potential investment operations under the

ECF. At the same time, role of business support services such as the EU for Business

Network, among others, should be to make European businesses become more

innovative and competitive, grow and scale in the Single Market and to raise

awareness and contribute to capacity building on avenues for accessing capital market-

based funding. To avoid undue administrative burden and ensure a swift deployment

and support to the market in continuity, the ECF may rely on the existing community

of the InvestEU Programme pillar assessed advisory partners.

EN 30 EN

(78) SMEs make up more than 99 % of all businesses in the Union, provide two thirds of

jobs, and contribute substantially to the creation of new quality jobs in all sectors.

Scaling firms exist across all sectors and levels of innovative prowess. Stimulating the

Union’s growth and innovation can only happen by boosting the many scalers that

exist across the Union SME population. SMEs are essential to achieve the green and

digital transformations of the economy, including the achievement of climate

neutrality.

(79) However, access to finance is an important barrier for SMEs, especially for start-ups

and scale-ups, as they often rely on external financing to support their growth plans.

SMEs face further barriers to innovation and growth that do not affect larger firms to

the same extent, for example the lack of entrepreneurial skills, lack of access

technology infrastructure, difficulties in protecting intellectual property or accessing

export markets and value chains in order to develop their internationalisation

activities.

(80) Evidence shows that direct financial support to SMEs is not enough on its own to

support their scaling-up and that they need and benefit from dedicated advice at Union

level. Providing advice on Single Market rules, innovation and access to finance

contributes to Union competitiveness. Moreover, business support at local, regional

and national level is diverse and should also connect less developed and outermost

regions. Existing Union initiatives such as the Enterprise Europe Network, European

Cluster Collaboration Platform and European Digital Innovation Hubs have helped

bridge this gap. Accordingly, an ‘EU for Business Network’ shall be established,

building on the Enterprise Europe Network (EEN), the European Cluster

Collaboration Platform (ECCP) and other networks, to simplify and streamline

advisory and partnership services.

(81) The ECF will support SME’s access to finance and strengthen the competitiveness of

the Union SMEs via two main avenues: First, in addition to the EU for Business

Network, the ECF will also conduct additional cross-cutting activities focused on

strengthening the competitiveness of SMEs. Second, the ECF policy windows should

include dedicated SME actions targeting SMEs in strategic sectors, such as bonus

systems to encourage SME participation, with a view to fostering SME innovation,

growth and scaling-up. Special support may be granted for access to and the

availability of finance for SMEs and small mid-cap companies across all sectors of the

economy, including micro-finance, support for social enterprises. Furthermore, a

flexible financial toolbox under the ECF should ensure that SMEs could receive the

type of support that best fits their needs along their investment journey.

(82) To further support the principles of simplification and easy access to Union funding

opportunities for beneficiaries, the ECF should offer a single portal centralising

information on and access to all Union funding opportunities and support other

activities. The single portal should facilitate and accelerate access to Union and other

funding, financing and investments, streamlining the approach while building on the

Funding and Tenders Portal, InvestEU Portal, Access to Finance Portal, STEP Portal

and other relevant platforms. It should also be possible to directly apply for funding

opportunities on the single portal.

(83) The ECF is to be implemented in accordance with Regulation (EU) [XXX]32 of the

European Parliament and of the Council [Performance Regulation] which establishes

32 OJ L.., p

EN 31 EN

the rules for the expenditure tracking and the performance framework for the Union

budget, including rules for ensuring a uniform application of the principles of ‘do no

significant harm’ and gender equality referred to in Article 33(2), points (d) and (f), of

Regulation (EU, Euratom) 2024/2509 respectively, rules for monitoring and reporting

on the performance of Union programmes and activities, rules for establishing a Union

support portal, rules for the evaluation of the programmes, as well as other horizontal

provisions applicable to all Union programmes such as those on information,

communication and visibility.

(84) In a rapidly changing economic, social and geopolitical environment, recent

experience has shown the need for a more flexible multiannual financial framework

and Union programmes. To that effect, and in line with the objectives of the ECF, the

funding should duly consider the evolving policy needs as identified in relevant

documents published by the Commission, in Council conclusions and European

Parliament resolutions, while ensuring sufficient predictability for the budget

implementation.

(85) In order to achieve the general and specific objectives of the ECF, the power to adopt

acts in accordance with Article 290 of the TFEU should be delegated to the

Commission in respect of changes to the maximum amount of the budgetary guarantee

and the provisioning rate, as well as in respect of certain measures in support of space

policy. It is of particular importance that the Commission carries out appropriate

consultations during its preparatory work, including at expert level, and that those

consultations be conducted in accordance with the principles laid down in the

Interinstitutional Agreement of 13 April 2016 on Better Law-Making.33 In particular,

to ensure equal participation in the preparation of delegated acts, the European

Parliament and the Council receive all documents at the same time as Member States'

experts, and their experts systematically have access to meetings of Commission

expert groups dealing with the preparation of delegated acts.

(86) In order to ensure uniform conditions for the implementation of the ECF through

certain measures set out in work programmes as well as certain measures in support of

space policy, implementing powers should be conferred on the Commission. Those

powers should be exercised in accordance with Regulation (EU) No 182/2011 of the

European Parliament and of the Council.34

(87) Although work programmes and other acts implementing this Regulation concern

specific budget implementation tasks which do not require a conferral of

implementing powers and which should not normally fall within the scope of

implementing acts referred to in Regulation (EU) No 182/2011, the advisory

procedure should be used for the adoption of certain acts as defined in this Regulation,

including work programmes implementing activities for clean transition, health,

biotech, agriculture and bioeconomy, and digital leadership, resilience and security,

defence industry and space, given that those acts should be fully supported and create

synergies with national and shared management activities conducted by the Member

States. Due the sensitivity and particular importance of synergies and full coordination

with Member States in the area of resilience and security, defence industry support and

33 OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj. 34 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011

laying down the rules and general principles concerning mechanisms for control by Member States of

the Commission’s exercise of implementing powers, OJ L 55, 28.2.2011, p. 13–18.

EN 32 EN

space, the examination procedure should be used for the adoption of work

programmes in these areas.

(88) The Commission should adopt immediately applicable implementing acts in duly

justified cases where a work programme has not been adopted sufficiently prior to the

year of budget implementation in order to ensure business continuity of Union

support, in particular of critical operational activities, such as satellite systems and

critical infrastructures, or need to be adopted in expedited fashion to immediately react

to a crisis or other similar exceptional and duly substantiated emergencies, imperative

grounds of urgency so require.

(89) The ECF replaces the programmes established by Regulations (EU) 2021/522,35 (EU)

2021/694,36 (EU) 2021/696,37 (EU) 2021/697,38 (EU) 2021/783,39 (EU) 2023/588,40 ,

repeals provisions of Regulations (EU) 2021/696, (EU) 2023/588 and (EU) [EDIP].

HAVE ADOPTED THIS REGULATION:

Chapter I

General Provisions

SECTION 1

OBJECTIVES AND STRUCTURE OF THE FUND

Article 1

Subject Matter

1. This Regulation establishes the European Competitiveness Fund (the ‘ECF’),

including a specific programme on defence research and innovation referred to in

Article 182(3) TFEU and lays down the objectives of the ECF, its budget for the

35 Regulation (EU) 2021/522 of the European Parliament and of the Council of 24 March 2021

establishing a Programme for the Union’s action in the field of health (‘EU4Health Programme’) for the

period 2021-2027, and repealing Regulation (EU) No 282/2014 (OJ L 107, 26.3.2021, p. 1, ELI:

http://data.europa.eu/eli/reg/2021/522/oj). 36 Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 2021 establishing

the Digital Europe Programme and repealing Decision (EU) 2015/2240 (OJ L 166, 11.5.2021, p. 1, ELI:

http://data.europa.eu/eli/reg/2021/694/oj). 37 Regulation (EU) 2021/696 of the European Parliament and of the Council of 28 April 2021 establishing

the Union Space Programme and the European Union Agency for the Space Programme and repealing

Regulations (EU) No 912/2010, (EU) No 1285/2013 and (EU) No 377/2014 and Decision No

541/2014/EU (OJ L 170, 12.5.2021, p. 69, ELI: http://data.europa.eu/eli/reg/2021/696/oj). 38 Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April 2021 establishing

the European Defence Fund and repealing Regulation (EU) 2018/1092 (OJ L 170, 12.5.2021, p. 149,

ELI: http://data.europa.eu/eli/reg/2021/697/oj) . 39 Regulation (EU) 2021/783 of the European Parliament and of the Council of 29 April 2021 establishing

a Programme for the Environment and Climate Action (LIFE), and repealing Regulation (EU) No

1293/2013 (OJ L 172, 17.5.2021, p. 53, ELI: http://data.europa.eu/eli/reg/2021/783/oj). 40 Regulation (EU) 2023/588 of the European Parliament and of the Council of 15 March 2023

establishing the Union Secure Connectivity Programme for the period 2023-2027 (OJ L 79, 17.3.2023,

p. 1, ELI: http://data.europa.eu/eli/reg/2023/588/oj).

EN 33 EN

period 2028-2034, the forms of Union support and the rules for providing such

support under cross-cutting activities and specific policies supported by the ECF.

2. This Regulation lays down:

(a) A ‘Clean Transition and Industrial Decarbonisation’ window – implemented through

the activities set out in Chapter II and Chapter IV, and contributing to the specific

objectives set out in Article 3(2), point (a);

(b) A ‘Health, Biotech, Agriculture and Bioeconomy’ window – implemented through

the activities set out in Chapter II and Chapter V, and contributing to the specific

objectives set out in Article 3(2), point (b);

(c) A ‘Digital Leadership’ window – implemented through the activities set out in

Chapter II and Chapter VI, and contributing to the specific objectives set out in

Article 3(2), point (c);

(d) A ‘Resilience and Security, Defence Industry, and Space’ window – implemented

through activities set out in Chapter II and Chapter VII, including the specific

programme for defence research and innovation referred to in paragraph 1, and

contributing to the specific objectives set out in Article 3(2), point (d).

3. The Regulation also sets up a legal framework aiming at ensuring security of supply,

removing investment obstacles and production bottlenecks and supporting the

competitiveness of the Union’s industrial base.

Article 2

Definitions

1. For the purposes of this Regulation, the following definitions apply:

(1) ‘Advisory agreement’ means a legal instrument whereby the Commission and the

advisory partner specify the conditions of the implementation of the project advisory

services;

(2) ‘Advisory partner’ means an eligible counterpart such as a financial institution or

other entity with whom the Commission has concluded an advisory agreement for

the purpose of implementing one or more advisory initiatives, other than advisory

initiatives implemented through external service providers contracted by the

Commission or through executive agencies;

(3) ‘Compartment’ means a part of the ECF InvestEU Instrument defined by the origin

of the resources backing the support;

(4) ‘Control’ means the ability to exercise a decisive influence over a legal entity

directly, or indirectly through one or more intermediate legal entities;

(5) ‘Executive management structure’ means the body of a legal entity appointed in

accordance with national law, and which, where applicable, reports to the chief

executive officer or any other person having comparable decisional power, and

which is empowered to establish the legal entity’s strategy, objectives and overall

direction, and oversees and monitors management decision-making;

(6) ‘EIB Group’ means the European Investment Bank (EIB), its subsidiaries, and other

entities established under Article 28(1) of Protocol No 5 on the Statute of the

European Investment Bank (the EIB Statute);

EN 34 EN

(7) ‘guarantee agreement’ means a legal instrument whereby the Commission and an

implementing partner specify the conditions for proposing financing and investment

operations in order for them to be granted the benefit of the ECF InvestEU

Instrument guarantee, for providing the budgetary guarantee for those operations and

for implementing them in accordance with this Regulation;

(8) ‘Imperative public interest’ means, for the purpose of Article 20, an overriding

reason for providing Union support for a certain action, or set of actions, due to a

clear and significant contribution to the achievement of policy objectives under the

ECF, which justifies the application of accelerated and simplified rules to the award;

(9) ‘Implementing partner’ means an eligible financial institution or intermediary with

whom the Commission has concluded a guarantee agreement;

(10) ‘Important project of common European interest’ (IPCEI) means a project that fulfils

all the criteria laid down in the Commission Communication on Criteria for the

analysis of the compatibility with the internal market of State aid to promote the

execution of important projects of common European interest or any subsequent

revision of that Communication;

(11) ‘Investment journey’ means the continuum of public and private financial support

and policy support mechanisms provided to recipients across its entire development

chain, including a comprehensive series of activities involved in the allocation of

financial resources and provision of support to foster innovation and economic

growth. This journey includes, but is not limited to, the initiation from fundamental

and applied research phases, progressing through stages of scaling up, industrial

deployment, and advancing to the culmination in full-scale manufacturing and

industrial maturity and internationalisation;

(12) ‘Financing and investment operations’ or ‘financing or investment operations’ means

operations to provide finance directly or indirectly to final recipients through

financial products, carried out by an implementing partner in its own name, provided

by the implementing partner in accordance with its internal rules, policies and

procedures and accounted for in the implementing partner’s financial statements or,

where applicable, disclosed in the notes to those financial statements;

(13) ‘Legal entities’ means a legal person created and recognised as such under Union,

national or international law, including Structures for European Armament

Programme (SEAP), established in accordance with Regulation (EU) [XXX]41 of the

European Parliament and of the Council [EDIP], which has legal personality and the

capacity to act in its own name, exercise rights and be subject to obligations, or an

entity which does not have legal personality as referred to in Article 200(2), point

(c), of the Financial Regulation;

(14) ‘Policy window’ means a targeted area for support by the ECF Toolbox as specified

in Article 3(2);

(15) ‘Pre-commercial procurement’ means the procurement of research and development

services involving risk-benefit sharing under market conditions where there is a clear

separation of the research and development services procured from the deployment

of commercial volumes of end-products;’

41 OJ L.., p

EN 35 EN

(16) ‘Project advisory’ means advisory that supports investment, including capacity

building and market development activities, and business acceleration services

provided by advisory partners, by external service providers contracted by the

Commission or through executive agencies;

(17) ‘Competitiveness Seal’ means a quality label awarded to a proposal submitted to a

call for proposals that meets all the quality requirements set out in the award

procedure but might receive support from other Union or national funding sources;

(18) ‘Small mid-cap company’ means an entity as defined in the Commission

recommendation 2025/3500 final;

(19) ‘Small and medium-sized enterprise’ or ‘SME’ means a micro, small or medium-

sized enterprise within the meaning of the Annex to Commission Recommendation

2003/361/EC;

(20) ‘Stakeholders' means individuals, groups, or organizations that are affected by and

can be involved in the programme implementation;

(21) ‘Infrastructure’ means all physical and virtual elements necessary for the provision of

services and economic activities, including networks, grids and assets, as well as

mobile assets linked to infrastructure, fostering decarbonisation, resilience,

efficiency, digitalisation, and interoperability;

Article 3

Objectives

1. The general objective of the ECF is to increase European competitiveness, notably in

strategic sectors and technologies along the investment journey by:

(a) delivering technological, economic and environmental impact from the Union's

investments, including by developing disruptive and incremental innovation, and

emerging, cutting-edge, dual-use, and strategic technologies with significant

economic potential, including by developing and accelerating their manufacturing

and industrial deployment;

(b) reducing or preventing the Union’s strategic dependencies, and reinforcing the

Union’s resilience, and economic security, including through diversifying sources

and markets, support to ramp up of European production of strategic technologies

and creating, strengthening and protecting critical Union value chains and

infrastructure;

(c) addressing market failures and suboptimal investment situations, including by

crowding in private capital and institutional investors as well as public funding in a

proportionate manner, while avoiding duplication and without crowding out private

investors; serving as an integrated platform for delivering targeted financial support

to companies across all development phases start-ups, scale-ups, and strategic

companies, including those actively pursuing manufacturing, industrial and market

deployment;

(d) furthering the integration of Union capital markets in alignment with the objective of

delivering Savings and Investment Union, including solutions to address the

fragmentation of Union capital markets, eliminate barriers and create incentives for

private investments and diversify and reinforce the sources of financing for Union

EN 36 EN

enterprises in all the Member States, including those with less developed capital

markets;

(e) aligning research, innovation and industrial policy support to translate Union’s

research excellence into Union industrial strength on global markets and securing the

future of manufacturing in Europe;

(f) developing Union cross-border and critical infrastructure key to the Union’s

competitiveness, and strategic independence in particular energy and transport,

digital and security, defence and space infrastructure as well as social infrastructure

and related data and services;

(g) strengthening the competitiveness of SMEs and small mid-cap companies established

in the Union and their ability to grow and scale up, in particular by improving their

access to finance, including private investment, micro-finance and support to social

enterprises as facilitating access to Union funding, through faster, simplified and

harmonised procedures; reducing and ensuring a proportionate reporting burden;

(h) addressing shortages of skills critical to all kinds of quality jobs in strategic sectors

for EU competitiveness, through both horizontal and specific skills investment,

contributing to the availability of skills in future emerging technologies, and by

pursuing to accompany investments with skills investment and indicate when it is

included;

(i) ensuring the integration of the Single Market, including by supporting initiatives at

any stage of the investment journey with positive spill-over effects for the Single

Market and resilience of its value chains;

(j) supporting actions for the development, implementation, and monitoring of relevant

Union legislation and policy;

(k) ensuring a just transition to a sustainable, decarbonised and digital economy that is

fair and supporting workers and communities.

2. Under the general objectives set out in paragraph 1, the ECF shall in particular

pursue the following specific objectives:

(a) For support to Clean Transition and Industrial Decarbonisation, the specific

objectives of support to decarbonisation of European industry, including SMEs and

energy intensive industries, clean tech manufacturing and its supply chains, and

contributing to the shift towards a sustainable, circular, energy-, water- and resource-

efficient, climate-neutral and resilient economy. This includes the uptake by

industries of decarbonisation technologies and other solutions for their industrial

processes and activities, as well as the decarbonisation of energy supply, promotion

of energy efficiency, the uptake of renewable and clean energy solutions, the

development of energy system flexibility, the uptake of lead markets for clean

products , the development, resilience, integration and digitalisation of the energy

and transport infrastructures and systems, boosting smart mobility and sustainable

alternative fuels, as well as boosting the sustainable blue economy, the development

of innovative nature-based business models and demand side solutions for clean and

decarbonised buildings, transport and industry, and production ramp up contributing

to Europe’s strategic autonomy.

(b) For support to Health, Biotechnology, Agriculture and Bioeconomy:

(1) For support to health, the specific objectives of fostering innovation

and competitiveness of the health sector while ensuring supply

EN 37 EN

security and the industrial capacity and capability to manage future

serious cross-border threats to health; improving and protecting

public and population health, by prioritising health promotion and

disease prevention across the life span through a health-in-all and

One Health policies approach, and by strengthening innovation and

resilience of health systems.

(2) For support to biotechnology, the specific objectives of

contributing to the development and scalable production and

uptake, availability and accessibility of medicinal products,

medical devices, diagnostics and other medical countermeasures.

(3) For support to bioeconomy policy, the specific objectives of

fostering an innovative and competitive bioeconomy in the Union,

including in the areas of biobased materials and products,

biomanufacturing, innovative food products and biochemicals;

including support to SMEs, start ups and scaleups, contribute to the

development and scalable production and uptake, availability and

accessibility of bioeconomy innovations, including those based on

cross-sectoral cutting-edge biotechnology; strengthen supply chains

and increase their resilience.

(4) For support to the agriculture and food security, the specific

objective of fostering the competitiveness, sustainability, and

resilience of the agriculture, fisheries and aquaculture, forestry and

rural and coastal areas and their role in the transition to a climate-

neutral climate-resilient, water-smart, nature-positive economy and

the protection of natural resources biodiversity while contributing

to long term food security in the Union.

(c) For support to Digital Leadership policy, the specific objectives of fostering

innovation and competitiveness of digital sector for a competitive and secure Union

and bringing its benefits to citizens and society, public administrations and

businesses across the Union. This shall include, but not be limited to, supporting the

entire digital value- and supply-chains and activities including support to start-ups,

scale-ups and SMEs, in particular along the following dimensions: Achieving

leadership in digital and AI technologies, including through technology transfer and

innovation, and through cutting-edge infrastructures such as AI-powered digital

twins; Achieving technological sovereignty by building resilient digital ecosystems

and ensuring a high-level of cybersecurity in the Union; Enabling the power of

digital for businesses and citizens by deploying advanced digital applications and

services, infrastructures, capacities and capabilities and by reinforcing

interoperability across the Union, Including support to digitalisation of companies,

including SMEs, small mid-cap companies, start-ups and scale-ups; Supporting the

digital transformation and interoperability of public and private sectors through the

rapid uptake of AI, the wallet technologies, such as EU Digital Identity Wallets and

trust services established pursuant to Regulation (EU) No 910/2014 and the

forthcoming European Business Wallets and other digital innovative solutions.

Support to cultural and creative industries, complementing the AgoraEU programme.

(d) For support to ‘Resilience and Security, Defence Industry and Space’ policy,

respectively the specific objectives of:

EN 38 EN

(1) For support to resilience of supply chains, the specific objectives of

reinforcing Europe’s resilience by strengthening the Union capacity

in exploration, extraction, processing and recycling of raw

materials and diversifying supply sources and markets, and

improving the timely availability of such products, including

through the reduction of their delivery lead time, reservation of

manufacturing slots or stockpiling of products, intermediate

products or raw materials.

(2) For support to EU defence industry. the specific objectives of

promoting defence industrial readiness of the Union and its

Member States through the strengthening of the competitiveness,

responsiveness and ability of the European Defence Technological

and Industrial Base (EDTIB), including support to start-ups, scale-

ups and SMEs, fostering an innovative EU defence ecosystem;

Collaborative research and development of defence products and

technologies, including disruptive technologies for defence;

Cooperation throughout the life-cycle of defence equipment, in

particular in defence procurement and for the development of

European defence projects of common interest; Adjustment of

industry to structural changes.

(3) For the implementation of EU space systems and space policy, the

specific objectives of developing, maintaining and operating space

systems, providing cutting-edge space-based information, data and

services supporting Union policies, notably in the area of security,

defence, sustainable growth, environment protection and climate

resilience, global engagement and strategic independence;

Maximising the socio-economic benefits of space-based activities,

in particular by fostering the development of an innovative and

competitive Union space economy and supporting the development

of a genuine Single Market for space activities, including

collaborative research and innovation for space products and

technologies and support to SMEs; Enhancing the safety, security

and sustainability of all outer space activities; Promoting the role of

the Union as a global actor in the space sector.

(4) For support to civil industrial security, the specific objectives of

strengthening the competitiveness and responsiveness of the

European civil security industry, in the application areas of

security, resilience of critical and dual-use infrastructures,

technologies including critical energy infrastructure, and solutions

for the control of goods and persons at borders, the protection of

borders, maritime security, customs security and civil preparedness

against security threats, as well as reinforcing the capabilities of the

relevant end-users in the civil security sector.

EN 39 EN

Article 4

Budget

1. The indicative financial envelope for the implementation of the ECF for the period

from 1 January 2028 to 31 December 2034 shall be EUR 234 300 000 000 in current

prices.

2. The indicative distribution of the amount referred to in paragraph 1 shall be as

follows:

(a) EUR 11 000 000 000 for activities contributing to the general objectives referred to

Article 3, as implemented in particular through cross-cutting activities such as non-

thematic support of the ECF InvestEU Instrument, referred to in Chapter II, Section

2; Project Advisory, SME Collaboration, skills development and Access to Funding,

referred to in Chapter III;

(b) EUR 26 210 000 000 for the specific objectives referred to in Article 3(2), point (a);

(c) EUR 20 393 000 000 for the specific objectives referred to in Article 3(2), point (b);

(d) EUR 51 493 000 000 for the specific objectives referred to in Article 3(2), point (c);

(e) EUR 125 204 000 000 for the specific objectives referred to in Article 3(2), point (d);

3. Budgetary commitments for activities extending over more than one financial year

may be broken down over several years into annual instalments.

4. Appropriations may be entered in the Union budget beyond 2034 to cover the

expenses necessary to fulfil the objectives set out in Article 3, to enable the

management of actions not completed by the end of the period referred to in

paragraph 1 of this Article, as well as expenses covering critical operational activities

and services.

5. The financial envelope referred to in paragraph 1 of this Article and the additional

resources referred to in Article 5 may also be used for technical and administrative

assistance for the implementation of the ECF, such as preparatory, monitoring,

control, audit and evaluation activities, corporate information technology systems

and platforms, information and communication activities, including corporate

communication on the political priorities of the Union, and all other technical and

administrative assistance or staff-related expenses incurred by the Commission for

the management of the ECF.

SECTION 2

SINGLE RULEBOOK

Article 5

Additional resources

1. Member States, Union institutions, bodies and agencies, third countries, international

organisations, international financial institutions, or other third parties, may make

additional financial or non-financial contributions available to the ECF, or any of its

specific activities or objectives referred to in Article 3(2), including specific

contributions to the ECF InvestEU Instrument budgetary guarantee and financial

instruments as referred to in Article 21. Additional financial contributions shall

EN 40 EN

constitute external assigned revenue within the meaning of Article 21(2), points (a),

(d), or (e) or Article 21(5) of Regulation (EU, Euratom) 2024/2509.

2. Resources allocated to Member States under shared management may, at their

request, in accordance Article X of Regulation (EU) [XXX][NRPF regulation], be

made available to the ECF. The Commission shall implement those resources

directly or indirectly in accordance with Article 62(1), point (a) or (c) of Regulation,

(EU, Euratom) 2024/2509. They shall be additional to the amount referred to in

Article 4. Those resources shall be used for the benefit of the Member State

concerned. Where the Commission has not entered into a legal commitment under

direct or indirect management for additional amounts thus made available to the

ECF, the corresponding uncommitted amounts may, at the request of the Member

State concerned, be transferred back to one or more respective chapters of the Plan or

their successors.

3. Any revenues generated by activities and components under Chapter VII, section 3

of this Regulation, shall constitute external assigned revenue within the meaning of

Article 21(5) of Regulation (EU, Euratom) 2024/2509 to the ECF or its successor.

4. [From 1 January 2028 / programme start date], by way of derogation from the first,

second and fourth subparagraphs of Article 212(3) of Regulation (EU, Euratom)

2024/2509, revenue, repayments and recoveries from financial instruments funded

from this Regulation, its predecessor, and those referred to in Annex IV of

Regulation (EU) 2021/523 shall be used to provide Union support under the ECF. By

way of derogation from point (f) of Article 21(3) and in accordance with Article

21(5) of Regulation (EU, Euratom) 2024/2509, these resources shall constitute

external assigned revenue to the ECF.

5. [From 1 January 2028 / programme start date], by way of derogation from point (a)

of Article 216(4) of Regulation (EU, Euratom) 2024/2509, any surplus of provisions

for the budgetary guarantees established by Regulations (EU) 2015/1017[2] and

(EU) 2021/523[3] may be used to provide Union support under the ECF. These

resources shall constitute external assigned revenue within the meaning of Article

21(5) of Regulation 2024/2509 to the ECF.

Article 6

Alternative, combined and cumulative funding

1. The ECF shall be implemented in synergy with other Union programmes. An action

that has received a Union contribution from another programme may also receive

another contribution under the ECF. The rules of the relevant Union programme shall

apply to the corresponding contribution or a single set of rules may be applied to all

contributions and a single legal commitment may be concluded. If the Union

contribution is based on eligible costs, the cumulative support from the Union budget

shall not exceed the total eligible costs of the action and may be calculated on a pro-

rata basis in accordance with the documents setting out the conditions for support.

2. Award procedures under the ECF may be jointly conducted under direct or indirect

management with Member States, Union institutions, their departments, bodies and

agencies, third countries international organisations, international financial

institutions, or other third parties, provided the protection of the financial interests of

the Union as well as of the security and defence interests of the Union and its

Member States is ensured. Such procedures shall be subject to a single set of rules

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and lead to the conclusion of single legal commitments. For that purpose, the

partners may make resources available to the ECF in accordance with Article 5 of

this Regulation, or the partners may be entrusted with the implementation of the

award procedure, where applicable in accordance with Article 62(1), point (c), of

Regulation (EU, Euratom) 2024/2509. In joint award procedures representatives of

the partners to the joint award procedure may also be members of the evaluation

committee referred to in Article 153(3) of Regulation (EU, Euratom) 2024/2509.

Article 7

Coordination

1. The Commission shall ensure the consistent implementation of the European

Competitiveness Fund, the Framework Programme for Research and Innovation and

the Innovation Fund.

2. The Commission and Member States shall, in a manner commensurate to their

respective responsibilities, facilitate coordination and coherence between European

Competitiveness Fund and national and regional partnership plans on common

competitiveness priorities in selected key areas and projects deemed of strategic

importance and of common European interest.

3. The ECF will be implemented in synergy with other Union funds, including the

Global Europe Fund, in particular to support global competitiveness, ensure

diversified supply sources, and strengthen export potential and opportunities of

European companies.

Article 8

Competitiveness Seal

1. A Competitiveness Seal may be awarded to high-quality actions which shall comply

at least with the following conditions:

(a) they have been assessed in an award procedure under the ECF;

(b) they comply with the minimum quality requirements of that award procedure;

2. The work programme or the documents related to the award procedure may set out

additional conditions.

3. Member States may support projects which have been awarded a seal, or may

provide support through the ECF by making additional resources available to the

ECF in accordance with Article 5(1) or (2).

4. Strategic projects under CRMA, NZIA, CMA and other strategic projects identified

in Union legislation that fulfil the conditions in paragraph 1, will be directly granted

the Competitiveness Seal.

Article 9

Eligibility

1. Eligibility criteria shall be set to support achievement of the general and specific

objectives referred to in Article 3 of this Regulation, in accordance with Regulation

(EU, Euratom) 2024/2509 and apply to all award procedures under the ECF.

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2. Provided any specific condition laid down within each policy window or component

are met, one or more of the following categories of legal entities may be eligible to

receive Union support in award procedures under direct and indirect management:

(a) entities established in a Member State or in Overseas Countries and Territories;

(b) entities established in an associated third country;

(c) international organisations;

(d) other entities established in non-associated third countries where the funding of such

entities is essential for implementing the action and contributes to the objectives set

out in Article 3.

3. In addition to Article 168(2) and (3) of Regulation (EU, Euratom) 2024/2509,

associated third countries referred to in Article 11(1) of this Regulation and

international organisations may, where relevant, participate in and benefit from any

procurement mechanisms set Article 168(2) and (3) of Regulation (EU, Euratom)

2024/2509. Rules applicable to Member States pursuant to Article 168 of Regulation

(EU, Euratom) 2024/2509 shall be applied, mutatis mutandis, to participating

associated third countries and international organisations.

4. In award procedures, the following activities shall not be eligible for support:

(a) activities that are prohibited by Union law, applicable international law, or by

national law in all Member States;

(b) activities that are already fully financed from other public or private sources,

(c) in accordance with Article 136 of the Financial Regulation, eligibility restrictions

shall apply to high-risk suppliers in line with EU law, for security reasons.

5. The work programme or the documents related to the award procedure may further

specify the eligibility criteria set out in this Regulation or set out additional eligibility

criteria for specific actions.

6. Representatives of third countries or international organisations shall not be present

in deliberations on eligibility/award criteria.

Article 10

EU Preference

1. The ECF support shall target development manufacturing and exploitation in the

Union of strategic technologies and sectors, in line with Union law and international

commitments. The award procedures may apply any of the conditions set out in

paragraph 2 to protect Union’s strategic and economic security interests, as well as

security and critical assets and the services they provide.

2. The work programme, the investment guidelines or the documents related to the

award procedure may set out eligibility conditions to ensure the competitiveness of

the Union, including protection of economic interests and autonomy of the Union

where necessary and appropriate, including through preferential conditions such as

restrictions or incentives for Union entities, while limiting distortion of the single

market. Those eligibility conditions may take the form of:

(a) participation and performance restrictions requiring participating entities to be

established, use facilities, or perform activities in the Member States, and where

appropriate other eligible countries. The work programme or the documents related

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to the award procedure may set out further details on the application of these

participation and performance restrictions;

(b) transfer restrictions requiring recipients of ECF funding, during or within 5 calendar

years after the end of an action, to not directly or indirectly transfer all or certain

operations, results or related access and use rights, including granting of licences,

from an eligible Member State or associated country to an ineligible third country.

Otherwise, Union funding may be reduced and may be fully or partially recovered.

The work programme or the documents related to the award procedure may set out

further details on the application of these transfer restrictions;

(c) supply and content restrictions requiring recipients of ECF funding to ensure a

certain minimum use or sourcing of equipment, supplies and materials, or their

components, used for the action from eligible entities referred to in paragraph 2,

points (a) and (b), unless those supplies and materials cannot be reasonably sourced

from those eligible entities. The work programme or the documents related to the

award procedure may set out further details on the application of these supply and

content restrictions;

(d) control restrictions requiring recipients of ECF funding to acquire and/or hold the

ability to decide, without restrictions imposed by ineligible entities, on the creation

and use of results, including the legal authority and practical capability to modify,

substitute, or remove components of results that are subject to restrictions imposed

by ineligible entities or third countries. The work programme or the documents

related to the award procedure may set out further details on the application of these

design authority restrictions;

3. Award procedures affecting security, defence or public order, in particular

concerning strategic assets and interests of the Union or its Member States are to be

restricted in accordance with Article 136 of Regulation (EU, Euratom) 2024/2509.

Those eligibility restrictions may, in particular, include:

(a) as regards the participating entities, executive management structures restrictions and

ownership and control restrictions limiting participation of all or certain entities to

those entities with executive management structure, as well as ownership and control

by natural or legal persons, established in the Member States, and where appropriate

other eligible countries;

(b) as regards the implemented activities, place of performance, use of facilities, or

equipment restrictions limiting the use for all or certain activities to those assets

located or originating in the Member States, and where appropriate other eligible

countries;

(c) as regards other security restrictions, security reviews and risks assessments, security

clearances, transfer and access rights restrictions, including granting of licences to

ensure appropriate safeguards for all or certain results and other information

generated or used by the action.

Article 11

Association of third countries to activities under the ECF

1. The ECF may be opened to the participation of the following third countries through

full or partial association, in accordance with the objectives laid down in Article 3

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and in accordance with the relevant international agreements or any decisions

adopted under the framework of those agreements and applicable to:

(a) members of the European Free Trade Association which are members of the

European Economic Area, as well as Andorra, Monaco and San Marino;

(b) acceding countries, candidate countries and potential candidates;

(c) European Neighbourhood Policy countries;

(d) other third countries.

2. Provided any possible specific conditions laid down within each policy window or

component are met by the interested third country, the Association Agreements for

programme participation in the ECF shall:

(a) ensure a fair balance as regards the contributions and benefits of the third country

participating in the ECF;

(b) lay down the conditions of participation in the programmes, including the calculation

of financial contributions, consisting of an operational contribution and a

participation fee, to the ECF and its general administrative costs;

(c) not confer on the third country any decision-making power in the programme;

(d) guarantee the rights of the Union to ensure sound financial management and to

protect its financial interests;

(e) ensure the protection of strategic, security, defence and public order interests of the

Union and its Member States.

3. For the purposes of point (d), the third country shall grant the necessary rights and

access required under Regulations (EU, Euratom) 2024/2509 and (EU, Euratom) No

883/2013, and guarantee that enforcement decisions imposing a pecuniary obligation

on the basis of Article 299 TFEU, as well as judgements and orders of the Court of

Justice of the European Union, are enforceable. and ensure that its competent

authorities cooperate with the European Public Prosecutor’s Office (EPPO) in the

investigations and prosecutions of criminal offences affecting the Union’s financial

interests in accordance with applicable international agreements or other applicable

rules.

4. Separate specific agreements may be concluded in accordance with Article 218

TFEU for activities under the ECF related to security, the provision of secured

services and critical assets to the EU.

Article 12

Implementation and forms of Union support

1. The ECF is to be implemented through work programmes in accordance with Article

110 of Regulation (EU, Euratom) 2024/2509.

2. The ECF shall be implemented in accordance with Regulation (EU, Euratom)

2024/2509, under direct management or under indirect management with entities

referred to in Article 62(1), point (c) of that Regulation.

3. Award procedures implemented under the ECF, shall comply with the general

provisions of the ECF as set out in Chapters I and II of this Regulation, which, in

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case of conflict, shall prevail over any other rules pertaining to the activities or

subsequent implementing acts.

4. Where award procedures concern more than one specific objective laid down in

Article 3(2), the work programme may specify that the award procedure is

implemented under a single set of rules by applying directly Regulation (EU,

Euratom) 2024/2509, complemented by the general rules set out in Chapter I and II,

or by applying the rules of one of the concerned specific objectives.

5. In certain duly substantiated circumstances, Union funding may be granted without a

call for proposals in accordance with Article 198 of Regulation (EU, Euratom)

2024/2509, including with point (e).

6. Union support may be provided in any form in accordance with Regulation (EU,

Euratom) 2024/2509, in particular grants, prizes, procurement, non-financial

donations, budgetary guarantees, and financial instruments.

7. Where Union support is provided in the form of a budgetary guarantee and financial

instruments, including when combined with other forms of non-repayable support in

blending operations, it shall be implemented in accordance with Title X of

Regulation (EU, Euratom) 2024/2509 .

8. Where Union funding is provided in the form of a grant, including when combined in

blending operations with other forms of repayable support not supported by the

Union budget, funding shall be provided in accordance with Title VIII of Regulation

(EU, Euratom) 2024/2509 and in the form of financing not linked to costs in

accordance with Article 125(1), point (a), of that Regulation (EU, Euratom)

2024/2509, or, where necessary, simplified cost options. Funding may be also

provided in the form of actual eligible cost reimbursement where the objectives of an

action cannot be achieved otherwise or where this form is necessary to enable other

sources of funding, including financing from Member States.

9. In accordance with Article 153(3) of Regulation (EU, Euratom) 2024/2509, for

actions implementing research and innovation activities, the evaluation committee

may be composed partially or fully of independent external experts.

10. Contributions to a mutual insurance mechanism set out in Article 30 of the

Framework Programme for Research and Innovation may cover the risk associated

with the recovery of sums due by recipients and shall be considered as a sufficient

guarantee under Article 155 of Regulation (EU, Euratom) 2024/2509. No additional

guarantee or security shall be accepted from beneficiaries or imposed upon them.

11. Where necessary to achieve the objectives set out in Article 3, parts of the ECF may

be implemented through Public-Private or Public-public Partnerships established

under the Framework Programme for Research and Innovation, in particular by

entrusting budget implementation tasks, in accordance with Article 62(1), point (c) of

Regulation (EU, Euratom) 2024/2509, to joint undertakings established pursuant to

187 TFEU. Support from the ECF shall be conditional upon efficient use of Union

financing, a proportionate financial contribution from other partners at least matching

the Union contribution and voting rights for the Union in the governing bodies

ensuring protection of the interests of the Union in the partnership. For that purpose,

joint undertakings shall be established through a single establishing act ensuring

centralised administrative functions.

12. In addition to the grounds set out in Article 132 of Regulation (EU, Euratom)

2024/2509, award procedures and resulting legal commitments shall allow for

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termination where the objectives of the action are unlikely to be achieved at all or

within the set timelines, or the action has lost its policy relevance

Article 13

Application of the rules on classified information and sensitive information

1. The Commission shall protect classified information in accordance with the security

rules set out in Commission Decision (EU, Euratom) 2015/444.42

2. Each Member State and associated country shall ensure that it offers a degree of

protection of EU classified information equivalent to security rules set out in Council

Decision 2013/488/EU.43 Equivalence of protection in third countries shall be

established by security of information agreement adopted in accordance with Article

218 TFEU.

3. A secured exchange system shall be used to facilitate the exchange of classified

information and sensitive information with the Member States and, where

appropriate, other recipients.

4. Union institutions, bodies and agencies involved in the implementation of the Union

budget shall have access to information, including classified information, necessary

for the purpose of carrying out the award procedures, implementing actions,

including reporting and payments, as well as checks, reviews, audits, and

investigations.

5. To ensure compliance with the requirements set out in Regulation (EU, Euratom)

2024/2509, including the principles of transparency and equal treatment, in all stages

of the award procedures involving classified information, administrative data

necessary to evaluate, award and audit Union support, limited to legal, financial and

procedural information, shall be treated as sensitive non-classified information.

Article 14

Governance and Advisory Boards

1. A Strategic Stakeholders Board is established.

2. The members of the ECF Strategic Stakeholders Board shall be appointed by the

Commission, following an open call for nominations or for expressions of interest, or

both, whichever the Commission finds more appropriate, and taking into account the

need for balance in sector, organisation type, including private investors, and size,

expertise, gender, age and geographical distribution. The term of members the Board

shall be limited to four years, renewable once. Members of the Board should act with

integrity and probity.

3. The Commission shall establish the detailed rules on selection and composition,

remuneration, rules of procedure, conflicts of interest and confidentiality for the ECF

Stakeholder Board. Members of the Board shall be bound by these terms.

42 Commission Decision (EU, Euratom) 2015/444 of 13 March 2015 on the security rules for protecting

EU classified information, OJ L 72, 17.3.2015, p. 53–88. 43 Council Decision of 23 September 2013 on the security rules for protecting EU classified information,

OJ [sr] L 274 , [sr] 15/10/2013, p. 1–50.

EN 47 EN

4. The ECF Strategic Stakeholder Board, informed by an observatory on emerging

technologies, shall advise on the overall direction for the ECF, advise on long-term

competitiveness trends, advise on areas of market failures and suboptimal investment

situations that could be addressed in the implementation of the ECF, and advise on

the identification of strategic portfolios of projects within and across activities of the

ECF, for which it may be composed in different policy-oriented configurations.

5. An independent Investment Committee shall be established under the ECF InvestEU

Instrument (the ‘Investment Committee’).

6. The composition of the Investment Committee shall ensure that it has a wide

knowledge of the sectors covered by the ECF and a wide knowledge of the

geographic markets in the Union, and shall ensure that the Investment Committee as

a whole is gender-balanced.

7. The Investment Committee shall examine the proposals for financing and investment

operations submitted by implementing partners for coverage under the Union

guarantee and verify the compliance with the applicable rules of the proposals for

financing under the ECF InvestEU Instrument.

8. The Advisory Board on ECF InvestEU Instrument shall be composed of one

representative of each implementing partner and one representative of each Member

State. the Advisory Board on ECF InvestEU Instrument shall, provide advice on the

design of financial products and on the strategic and operational direction in its area

of competence. It shall also provide advice on the coordination with the EIC to

ensure complementarity with other Union funding or private investments. The

Advisory Board shall be chaired by a representative of the Commission.

9. The Commission shall establish the detailed rules on selection and composition,

remuneration, rules of procedure, conflicts of interest and confidentiality for the

Investment Committee and the Advisory Board on ECF InvestEU Instrument.

10. The Commission and Implementing partners shall establish regular Policy Review

Dialogues to discuss progress with the implementation of the financial products and

engage on relevant policy developments.

11. The Commission shall ensure that stakeholders are consulted in the development of

the work programmes, with the creation of one or several thematic platforms per

window.

Chapter II

ECF TOOLBOX

SECTION 1

GRANTS, PROCUREMENT AND INDUSTRIAL POLICY COORDINATION TOOLS

Article 15

Work Programmes

1. The work programmes may set out:

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(a) actions and associated budget from ECF as well as actions set out in the specific

dedicated part of the work programmes indicated in paragraph 2;

(b) instruments and form of funding;

(c) eligibility and award criteria;

(d) a single co-financing rate per action for actual cost grants;

(e) actions to which the Mutual Insurance Mechanism under Regulation (EU) [XXX]

[Horizon Europe] applies;

(f) rules applicable to actions concerning more than one specific objective;

(g) actions to which specific rules apply, in particular on ownership, exploitation and

dissemination, transfer and licensing as well as access rights to results;

(h) actions which benefit from the mechanisms set out in Article 20;

2. The work programmes under this Regulation shall integrate in a specific dedicated

part collaborative research and innovation activities and their dedicated budget.

3. The Commission shall, by means of implementing acts, adopt the work programmes

implementing the specific objectives referred to in Article 3(2), points (a), (b), (c)

and (d) and for the horizontal activities in Chapter III. Those implementing acts shall

be adopted in accordance with the advisory procedure referred to in Article 83(2).

4. The Commission shall, by means of implementing acts, adopt the work programmes

implementing the specific objectives referred to in Article 3(2), point (d) (2), (3) and

(4). Those implementing acts shall be adopted in accordance with the examination

procedure referred to in Article 83(3).

5. On duly justified imperative grounds of urgency relating to the fact that a work

programme has not been adopted by October 1 of the year preceding the year of

budget implementation, the Commission shall adopt the work programme by means

of immediately applicable implementing acts in accordance with the procedure

referred to in Article 83(4) and not later than October 15 of the year preceding the

year of budget implementation. Those implementing acts shall remain in force for the

period of budget implementation.

6. On duly justified imperative grounds of urgency relating to the need for an

immediate reaction to a crisis or other similar exceptional and duly substantiated

emergencies, the Commission may adopt a work programme by means of

immediately applicable implementing acts in accordance with the procedure referred

to in Article 83(4).

Article 16

Single Market value chains builder

1. In order to foster resilient Union value chains, the work programmes may include

dedicated value-chains scale up calls which shall support both project preparation

and crowding in of additional public and private capital to integrate suppliers,

manufacturers, and innovators from different Member States and diversify sources of

supply.

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Article 17

EU Tech frontrunners

1. The work programmes may include dedicated two-stage bottom-up award procedures

to identify and support EU Tech frontrunners through industry-driven consortia

leveraging on their role as innovation and export drivers to strengthen their global

competitive position along with their European SME suppliers through investments

in new solutions and identification of relevant partners. Project preparation as well as

crowding in of additional public and private capital may be supported.

2. At the first stage, an open call for expression of interest for goods, works or services

that might contribute to Union competitiveness in general, or in a specified sector,

may be published without specification of the kind of activities or the instrument of

budget implementation to be used.

3. At the second stage, analysis and crowding in of additional public and private capital

shall be supported.

4. Proposals and offers shall be evaluated and ranked based on common award criteria

such as their comparative contribution to Union competitiveness.

5. The evaluation committee shall determine the most appropriate instrument of budget

implementation, as well as propose the maximum amount and form of the Union

contribution.

Article 18

Production Ramp up actions

1. By way of derogation from Article 196(2) of the Financial Regulation, financial

contributions may, where necessary for the implementation of manufacturing

projects essential to support the general resilience objective as indicated on Article

3(1), or activities required to ensure the security, resilience or service continuity to

support the objective referred to in Article 3(2), point (d), cover actions that started

prior to the date of the submission of the proposal for those actions .

2. The work programme or the documents related to the award procedure shall set out

additional conditions to ensure that the support is necessary and proportionate,

excluding overcompensation and double funding, is temporary and decreases over

time.

Article 19

Top Ups for IPCEIs

1. The ECF may support:

(a) projects directly participating in an Important Project of Common European Interest

(IPCEI) approved by the Commission pursuant to Article 107(3), point (b), of the

TFEU;

(b) the follow-on projects based on results from IPCEIs, conditional on significant

private investments.

2. Any support of the ECF for IPCEI referred to in paragraph 1, shall be conditional on

national co-funding.

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Article 20

Accelerated and Targeted Actions for Competitiveness

1. In order to create or facilitate the possibility of Union support to actions of

imperative public interest or critical time-sensitivity, which could otherwise not be

effectively implemented under the normal rules applicable to the Union budget or

sectoral policies, the work programmes may identify certain award procedures, under

direct or indirect management, that may benefit from certain additions, exceptions,

and derogations from applicable law, during the award procedure or implementation

of the supported activities, under all of the following the conditions:

(a) the action is necessary and appropriate to achieve the objectives of the action in line

with the general or specific objectives of the programme;

(b) the action is duly justified by an imperative public interest, and/or is of a time-

sensitive nature, or both;

(c) the action cannot otherwise be effectively implemented under the normal rules

applicable to award procedures.

2. In accordance with paragraph 1, one or more of the following measures may be

applied to an award procedure:

(a) For grants, without prejudice to the use of competitive procedures wherever

appropriate in line with Article 192(1) and in addition to Article 198 of Regulation

(EU, Euratom) 2024/2509, the work programme may specify that an award

procedure takes the form of a targeted intervention to:

(1) identify an action of imperative public interests of the Union and

the beneficiaries or categories of beneficiaries which may be

invited to submit a proposal without a call; or,

(2) set out an amount up to which proposals may be identified and

invited that have been awarded a seal referred to in Article 8 of this

Regulation but have not received Union funding due to lack of

budget. The applicants may be invited to resubmit their proposal

without a call; where the proposal is resubmitted without

substantial change, the granting authority may decide to fully rely

on the prior positive evaluation and any previously conducted

controls and submitted supporting documents; the reasons for the

award of the individual action shall be duly substantiated in the

award decision and the list of actions shall be published in the

Annual Activity Report referred to in Article 74(9) of Regulation

(EU, Euratom) 2024/2509; or,

(3) specify an action and beneficiaries, or a policy area and categories

of beneficiaries, and set out an amount up to which proposals may

be invited for extension of actions under the ECF or other Union

programmes, in order to continue or add additional activities or

entities, and/or to further develop results; where actions and

beneficiaries are not individually identified in the work

programme, the reasons for the award of the individual action shall

be duly substantiated in the award decision and the list of actions

shall be published in the Annual Activity Report referred to in

Article 74(9) of Regulation (EU, Euratom) 2024/2509. The award

EN 51 EN

may take the form of an amendment to the original action by

adding new activities and increasing the maximum Union

contribution.

(b) By way of derogation from Articles 199, 201, 203 regarding grants or from Article

170(1), points (b) and (c), and (2) regarding procurement, of Regulation (EU,

Euratom) 2024/2509, the work programme may specify that an award procedure

takes the form of an accelerated intervention to:

(1) limit the requirements for the award decision and signature of legal

commitments to a preliminary evaluation of award and exclusion

criteria; the award decision shall be taken based solely on a self-

declaration of applicants and tenderers on selection and eligibility

criteria without request for corresponding supporting documents

during pre-evaluation; the final evaluation, including for selection

and eligibility criteria, and the requests for any relevant supporting

documents shall be conducted within three months of the signature

of the legal commitment; and,

(2) require the notification of the results of the preliminary evaluation

to the applicants or tenderers within 30 calendar days of the

deadline for submission of proposals or tenders; the award decision

shall be taken within 60 calendar days of the deadline for

submission of proposals or tenders and shall be exempted, where

applicable, from the procedures set out in Article 83; until the

completion of the final evaluation no pre-financing shall be paid.

(c) By way of derogation from Article 9 of this Regulation, the work programme may

specify that an award procedure takes the form of an inducement intervention to

allow for a temporary and conditional waiver of compliance with a specified part of

the eligibility criteria during the award procedure and parts of the implementation of

the action, in particular regarding the place of establishment; compliance with the

temporarily waived eligibility criteria shall instead be achieved and evaluated during

the implementation of the action within a timeframe specified in the legal

commitment. If the temporarily waived eligibility criteria are not complied with at

the specified date, the action shall be considered ineligible in its entirety and any

Union funding shall be fully recovered; for inducement interventions no pre-

financing shall be paid.

(d) The work programme may set up special two-stage bottom-up award procedures in

accordance with the following rules:.

(1) during the first stage, a call for expression of interest may be

launched without specification of the kind of activities or the

instrument of budget implementation to be used, to enable

applicants, tenderers and pillar-assessed entities to submit project

proposals or offers for goods, works or services that might

contribute to Union competitiveness in general or in a specified

sector.

(2) proposals and offers shall be evaluated and ranked based on

common award criteria such as their comparative contribution to

Union competitiveness. The evaluation committee shall determine

the most appropriate instrument of budget implementation under

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direct or indirect management, in particular grant, procurement,

non-financial donations, contribution agreements or other support,

as well as propose the maximum amount and form of the Union

contribution.

(3) during the second stage, within the available budget, successfully

evaluated projects or offers shall be invited to adjust and complete

their proposal or offer in accordance with the conclusions of the

evaluation committee. The award procedure shall otherwise

proceed in accordance with the rules set out in Article 12, as

applicable to the respective instrument of budget implementation.

3. In accordance with paragraph 1, for actions which require the planning, construction

and operation of facilities funded under award procedures the work programme may

determine that, depending on the nature of the action, it is of public interest and may

be of imperative reason of overriding public interest within the meaning of Article

6(4) and Article 16(1), point (c), of Council Directive 92/43/EEC and Article 4(7) of

Directive 2000/60/EC of the European Parliament and of the Council , in the interest

of defence within the meaning of Article 2(3) of Regulation (EC) No 1907/2006 of

the European Parliament and of the Council , and in the interests of public health and

safety within the meaning of Article 9(1), point (a) of Directive 2009/147/EC of the

European Parliament and of the Council, in accordance with and under the conditions

set out in applicable legislation such as the Net Zero Industry Act Regulation

2024/1735, RED III (Directive 2023/2413), or the Defence Readiness Omnibus

(COM(2022)349) provided that the remaining other conditions set out in these

provisions are fulfilled.

SECTION 2

ECF INVESTEU INSTRUMENT

Article 21

General Framework

1. As a horizontal delivery tool for Union internal policies, the ECF InvestEU

Instrument shall contain the budgetary guarantee and financial instruments, including

when combined with non-repayable support in a blending operation, for the purpose

of contributing to the general and specific objectives set out in Article 3, and may be

implemented in synergy with other Union or national activities, including through

compartments for Member States.

2. The ECF InvestEU Instrument shall address market failures or suboptimal

investment situations. The ECF InvestEU Instrument may in particular provide loans,

guarantees, counter-guarantees, capital market instruments, any other form of

funding or credit enhancement, including subordinated debt, or equity or quasi-

equity investments, provided directly or indirectly through financial intermediaries,

funds, investment platforms or other vehicles to be channelled to final recipients.

3. The maximum amount of the budgetary guarantee under the EU Compartment of the

ECF InvestEU Instrument shall be EUR 70 000 000 000 in current prices. It shall be

provisioned at the rate of 50 %.

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4. The minimum amount of the Union support from ECF delivered through ECF

InvestEU Instrument shall be EUR 17 000 000 000, to be used in support of the

general and specific objectives set out in Article 3. This minimum amount shall be

increased by the contributions from the work programmes set out in Article 15. The

contributions shall be a favoured means of implementation under the ECF and used

for provisioning of the budgetary guarantee or financing of the financial instruments.

5. The investment guidelines set out by the Commission shall define in more detail the

scope of intervention in support of the general and specific objectives set out in

Article 3. The investment guidelines shall be prepared in close dialogue with the

potential implementing partners.

6. The following rules shall apply to the provisioning referred to in paragraph 3:

(a) the provisioning rate shall be assessed every year in accordance with the assessment

referred to in Article 41(5) of Regulation (EU, Euratom) 2024/2509;

(b) for the purpose of support under other Union programmes referred to in Article 23(2)

the provisioning shall be made from that other Union programme;

(c) the provisioning shall be committed until 31 December 2034 and shall take into

account the progress in granting the budgetary guarantee under the ECF InvestEU

Instrument.

(d) in accordance with Article 214(2) of Regulation (EU, Euratom) 2024/2509, the

provisioning shall be constituted until 31 December 2037 and shall take into account

the progress in the approval and signature of the financing and investment

operations.

7. The Commission is empowered to adopt delegated acts in accordance with Article 84

to amend paragraph 3 to adjust the provisioning rate and to adjust the maximum

amount of the budgetary guarantee with up to 20% of that amount.

Article 22

Support to scaleups and startups

1. The ECF InvestEU Instrument shall serve as the Union’s integrated platform for

delivering targeted financial support to companies across all development phases

start-ups, scale-ups, including those actively pursuing manufacturing, industrial and

market deployment. It shall ensure that high-potential European companies

developing or deploying innovative solutions can access the capital and resources to

grow in the Union, thus strengthening the integration of the Single market and the

Savings and Investment Union.

2. The Commission shall in particular develop a Scale-up facility in cooperation with

the EIB Group, other international financial institutions and National Promotional

Banks. The facility shall provide in a coordinated and consistent manner, a

comprehensive set of financing tools tailored to the unique needs of scale-ups,

including indirect and direct equity and quasi-equity, venture debt, loans, guarantees

and blended finance, with a view to attract private investors in supporting scale up

financing and facilitate exit options. The facility shall target SMEs and small mid-

cap companies and Mid-cap companies.

3. The facility shall intervene where market investors cannot provide sufficient

financing for European high-growth, innovative and strategic companies, including if

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needed to protect the Union's strategic assets, interests, autonomy or economic

security.

4. It will leverage public investment to catalyse substantial private and institutional

capital flows, such as from private equity funds, corporates, pension funds, insurance

companies, and other long-term investors, thus deepening Europe’s capital markets

and fostering sustainable growth of scale-up companies.

Article 23

Exclusivity clause

1. During the period of the MFF 2028-2034, budgetary guarantees, financial

instruments, or financial instruments directly implemented by the Commission in

accordance with Article 219 of Regulation (EU, Euratom) 2024/2509 to support

policy objectives on the territory of the Union shall solely be established under this

Section.

2. The budgetary guarantee, within its maximum amount referred to in Article 21(3),

and financial instruments, including when combined with non-repayable support in a

blending operation, may be used to provide support under other Union programmes,

including the EU ETS Innovation Fund and other Union programmes financed from

sources other than the Union budget, in accordance with the objectives set out in

those programmes.

Article 24

EU Compartment and Member States Compartment

1. The ECF InvestEU Instrument shall consist of an EU Compartment and a Member

State Compartment.

2. Specific contributions to the ECF InvestEU Instrument under Article 5(1) may be

made in accordance with Articles 211(2) and 221(2) of Regulation (EU, Euratom)

2024/2509. Specific contributions to the budgetary guarantee under the ECF

InvestEU Instrument shall result in an additional amount of the budgetary guarantee

referred to in Article 21(3).

Article 25

Community of implementing partners

1. The ECF InvestEU Instrument will be implemented by partners in an open

architecture model, including the European Investment Bank (EIB) Group,

international financial institutions, the national promotional banks and institutions.

2. By way of derogation from Article 211(5) of Regulation (EU, Euratom) 2024/2509,

and subject to Article 12 of this Regulation, the implementation of a budgetary

guarantee or financial instrument, including when combined with non-repayable

support in a blending operation, may be entrusted to any entity referred to in Article

62(1), first subparagraph, point (c), of Regulation (EU, Euratom) 2024/2509.

3. In addition to entities referred to in Article 62(1), first subparagraph, point (c), and

Article 211(5) of Regulation (EU Euratom) 2024/2029, bodies established in

a Member State, governed by the private law of a Member State or Union law may

also be exceptionally entrusted, following a positive pillar assessment, with the

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implementation of a budgetary guarantee or financial instrument, including when

combined with non-repayable support in a blending operation, to the extent that such

bodies are provided with adequate financial guarantees which may be, for each

action, limited to the maximum amount of the Union support. Those bodies governed

by private law shall be selected with due account to the nature of the financial

instrument or budgetary guarantee to be implemented, the experience and the

financial and operational capacity, and their rules and procedures for verifying the

economic viability of projects of final recipients. The selection shall be transparent,

justified on objective grounds and shall not give rise to a conflict of interests.

Chapter III

Project Advisory, SME Collaboration, skills development and

Access to Funding

SECTION 1

PROJECT ADVISORY

Article 26

Project Advisory

1. The Project Advisory shall be made available for repayable and non-repayable

instruments. Actions and activities supported under this chapter shall contribute to

the general objectives set out in Article 3(1) and shall support and complement,

where relevant, activities under the other chapters.

2. A centralised access to advisory and business acceleration services shall be provided,

which may include:

(a) investment advisory services, including market development activities and advisory

support for the identification, preparation, development, structuring, procuring and

implementation of investment projects, and for enhancing the capacity of project

promoters and financial intermediaries to implement financing and investment

operations and improve the understanding and use of financial instruments to exploit

their full potential. Such support may cover any stage of the life cycle of a project or

financing of a supported entity;

(b) business coaching and acceleration services targeting potential ECF beneficiaries and

other project promoters, including SMEs and mid-cap companies, start-ups and

scale-ups, supporting and facilitating their access to ECF funding and financing, and

facilitating matchmaking with private investors and promoting financial literacy of

entrepreneurs, including understanding of the opportunities offered by capital market

based financing;

3. Project advisory shall, among others, support the generation of project pipelines and

the development of potential investment projects under the ECF InvestEU Instrument

and contribute to their further development. Project advisory shall also cooperate

with industrial alliances and European clusters. Project advisory shall be available

under each policy window referred, covering sectors under that window. In addition,

advisory support may cover general objectives and cross-cutting actions.

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4. The Commission may conclude advisory agreements with advisory partners and

service providers in line with the needs of each policy windows. The Commission

and the advisory partners, including the EIB Group, shall cooperate closely with a

view to ensuring efficiency, synergies and effective geographic coverage across the

Union, while taking account of existing structures and work.

5. Irrespective of the instrument of budget implementation for the acquisition or

provision of advisory services, providers and recipients of the services shall be

selected in accordance with the principles of transparency and equal treatment,

avoidance of conflict of interest, including conflicting professional interests.

6. When implementing the Project Advisory, the Commission, its advisory partners and

other service providers shall, when appropriate, collaborate with other Union or

national public or private advisory and support service providers, including the EU

for Business Network.

SECTION 2

SME COLLABORATION

Article 27

EU for Business Network

1. “EU for Business” Network shall be established to help Union businesses become

more competitive and innovate, grow and scale in the Single Market and beyond,

with a particular emphasis on SMEs, startups, scaleups and small mid-cap

companies. The network shall have a Union-wide and geographically balanced

coverage, taking into account the specificities of all types of regions in the Union,

including the less developed regions and the Union outermost regions.

Article 28

Business support

1. The ECF shall conduct cross-cutting activities focused on strengthening the

competitiveness of the SMEs and achieve additionality at Union level, including

through the following measures:

(a) provision of integrated business advice and support to companies, including through

financial support to third parties;

(b) provision of partnering opportunities and capacity building;

(c) support and assistance for access to technologies, technology infrastructure and

facilities, support market uptake of innovation and support business organisations,

SMEs and small mid-cap companies, including startups and scaleups, to participate

in collaborative platforms and sectors;

(d) promoting business understanding of Union policies, obtaining feedback on their

effectiveness;

(e) increasing the access and the availability of finance for SMEs including micro-

finance and support to social enterprises, and for small mid-cap companies;

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(f) facilitation access to markets including through support to the internationalisation of

SMEs and provision of market intelligence, including in less developed regions and

outermost regions;

(g) improving the business environment for SMEs and promote new business

opportunities for SMEs by supporting among others intellectual property

valorisation, standard setting and public procurement;

(h) promoting entrepreneurship, including women and youth entrepreneurship and the

acquisition of entrepreneurial and business skills.

Article 29

Dedicated SME Actions to increase SME participation

1. Each window shall support dedicated, sector-specific actions targeting start-ups,

SMEs and small mid-cap companies or calls for SMEs in strategic sectors with

a view to fostering innovation, business acceleration, commercialisation and scaling-

up.

Article 30

Support for skills development

1. The ECF shall finance activities in support of skills development, in particular in the

strategic sectors, building strong links between higher education, vocational

education and training providers, applied research and businesses for an agile,

innovative and competitive economy. This shall include support for a European

Skills Guarantee to support value chain transitions in favour of strategic growth

sectors or occupations across the labour market through upskilling and reskilling of

the workforce and Vocational Education and Training (VET) partnerships to

strengthen cooperation between VET providers and businesses, especially SMEs and

connecting them with regional industrial ecosystems.

SECTION 3

BENEFICIARY SERVICE DESK

Article 31

Access to Union funding

1. In accordance with Article 150 of Regulation (EU, Euratom) 2024/2509, the ECF

shall contribute to the maintenance and extension of the single electronic data

interchange area for participants to ensure simplified access to Union funding. That

contribution shall be irrespective of the mode or instrument of budget

implementation and including advisory and business acceleration services and

support to a single gateway for access to Union support in accordance with

Regulation (EU) [XXX] [Performance Regulation].

2. The ECF may support any additional activities to facilitate and accelerate access to

Union funding, and other funding, financing and investments, as well as to ensure

valorisation and uptake of results through tools and instruments such as proof of

concept, deployment grants, advisory and business support services, and any

dedicated platform.

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Chapter IV

Support for Clean Transition and Industrial Decarbonisation

Article 32

Subject matter

1. Actions supported under this chapter shall contribute to the general objectives set out

Article 3(1) and the specific objectives set out in Article 3(2), point (a).

2. Support for actions under this chapter shall be financed from the budget set out in

Article 4 and any additional contributions assigned in accordance with Article 5.

Article 33

Specific activities to support clean transition and industrial decarbonisation policies

1. Support for clean transition, and industrial decarbonisation window shall be

implemented in particular through the following activities:

(a) ”LIFE activities”: providing support to bottom-up projects for the demonstration,

testing and market uptake of innovative solutions and best practices in clean

transition and industrial decarbonisation and awareness raising on climate and

environment to relevant governance levels.

(b) Energy efficiency, energy storage, demand-response, domestic transmission and

distribution grids, digitalisation of energy systems, integrated renewable energy,

energy renovations, and heating and cooling solutions, systems and services.

(c) Clean energy and decarbonisation solutions in industry, including electrification of

energy intensive industries and carbon capture, storage and utilisation (CCS/CCU),

and in cities, in particular for energy, transport and buildings.

(d) Sourcing, production, storage, distribution and uptake of sustainable fuels,

facilitating decarbonisation of mobility.

(e) Clean, multimodal and digitalised, safe transport and mobility solutions, including

mobile assets (e.g. vehicles, vessels including fishing vessels, aircrafts, rolling

stocks) and infrastructures (among others charging infrastructure, ports or high speed

rail), systems and operations.

(f) Supporting the development and deployment of smart mobility, including vehicles,

infrastructure, connected and automated mobility, smart traffic management systems

and related services.

(g) Clean tech manufacturing and its supply chain, including through financial support to

Strategic Projects under Regulation (EU) 2024/1735, scaling up the manufacturing

capacity of net-zero technologies and their supply chains, and by ramping up of

existing production lines.

(h) Strengthening Union capacity in innovation and industrial deployment of advanced

manufacturing and advanced materials.

(i) Circular economy, water efficiency, ocean health and environmental policy,

including solutions to protect, restore and improve the quality of the environment,

including the air, water, marine and soil, and to halt and reverse biodiversity loss and

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to tackle the degradation of ecosystem, sustainable solutions for climate action in

agri-food and forestry supply chains.

(j) Climate and water resilience.

(k) Pollution prevention, control and remediation.

(l) Investment, innovation, and modernisation in sustainable blue economy sectors such

as shipbuilding and shipping, offshore energy, ocean observation technologies, blue

tech and preserving ecosystems.

(m) Sustainability and clean transition of SMEs, including in tourism, construction and

other economic sectors.

(n) Market uptake, capacity building and skills development for the clean transition,

including clean energy transition and energy demand side activities (for example

NetZero Industry Academies) and transition towards sustainable and safe mobility

and sustainable tourism in cities, rural areas, communities, and buildings.

(o) Support actions for the development, implementation, monitoring and enforcement

of relevant Union legislation and policy. This includes supporting the relevant

institutions, the cooperation between national authorities and with stakeholders,

studies, the development and deployment of tools and infrastructures, including IT

infrastructure and tools.

2. Support provided through the activities referred to in paragraph 1, may be provided

in any form, including through collaborative research and innovation activities set

out in Regulation (EU) [XXX] [Framework Programme for Research and

Innovation] and identified in a specific dedicated part of the Work Programme.

Article 34

Complementary rules

1. For activities supporting Coordination and Support Actions in the area of energy

efficiency and clean energy transition, Union support may cover up to 100 % of the

eligible costs, without prejudice to the co-financing principle.

2. By way of derogation from Article 184(6) of the Financial Regulation, for activities

supporting Coordination and Support Actions in the area of energy efficiency and

clean energy transition and LIFE activities referred to in Article 34, paragraph 1,

point (a), the authorising officer responsible may authorise or impose, in the form of

flat-rates, funding of the beneficiary’s indirect costs up to a maximum of 25 % total

eligible direct costs, excluding direct eligible costs for subcontracting, financial

support to third parties and any unit costs or lump sums which include indirect costs.

3. Work programmes shall ensure coherence with the types of actions planned to be

implemented under the Fund referred to in Article 10a(8) of Directive 2003/87/EC

and coherence and complementarity with the Regulation (EU)[XXX] [Connecting

Europe Facility]

4. Work programmes adopted in accordance with the rules of this Regulation under this

chapter shall integrate in a specific dedicated part and ensure coherence with the

Competitiveness and Society activities supported under the Regulation (EU) [XXX]

[Horizon Europe Framework programme for Research and Innovation]

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Article 35

Competitive bidding mechanisms

1. Award procedures under this chapter may take the form of competitive bidding. That

includes contracts for difference, carbon contracts for difference, or fixed premium

contracts to support decarbonisation investment, provided that the financial interests

of the Union are protected and the exposure of the budget remains limited to a

maximum contribution. Competitive bidding procedures may be implemented

through, and in accordance with, any of the budget implementation instruments set

out in Article 12.

CHAPTER V

SUPPORT FOR HEALTH, BIOTECH, AGRICULTURE AND

BIOECONOMY

Article 36

Specific provisions for support to health, biotech, agriculture and bioeconomy policies

1. Actions supported under this chapter shall contribute to the general objectives set out

in Article 3(1) and the specific objectives set out in Article 3(2), point (b).

2. Support for actions under this chapter shall be financed from the budget set out in

Article 4(2) , and any additional contributions assigned in accordance with Article 5.

Article 37

Specific Activities

1. Support for Health, Biotech, Agriculture and Bioeconomy policy shall be

implemented in particular through the following activities:

(a) Improving and protecting health, including cross-border health, by prioritising health

promotion and disease prevention across the life course through a health-in-all and

One Health policies approach, with a special emphasis on communicable and non-

communicable diseases, including mental health, degenerative health, autism,

cardiovascular diseases, cancer and other non-communicable diseases, including

those related to pollution, sexual and reproductive health and enhancing international

health initiatives and cooperation.

(b) Strengthening the efficiency and resilience of health systems by reinforcing access,

use and re-use of health data and digital tools, infrastructures and services, including

to support the European Health Data Space, deployment of Artificial Intelligence and

robotics based solutions in healthcare, advancing the digital transformation of

healthcare, enhancing access to healthcare services, with particular focus on public

health and healthcare workforce, developing and implementing Union health

legislation, also by use of digital technologies, promoting evidence-based decision-

making, (including by supporting Health technology Assessment), providing digital

solutions for monitoring and coordinating and encouraging integrated work among

national health systems to ensure coherence and efficiency across the Union.

(c) Fostering the development, production capacity, manufacturing and industrial

deployment of health and bioeconomy technologies, to increase the competitiveness

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of the sector, and ensure availability of Union medicinal products, medical devices,

digital solutions and medical countermeasures relevant for preparedness and

response to cross-border threats to health, as well as the competitiveness and

resilience of the sectors by ensuring that such products are innovative, safe,

accessible, available, and affordable, thereby promoting equitable access across the

Union.

(d) Supporting the discovery, development, derisking, demonstration, piloting and use,

and scaling-up of biotechnology innovations, accelerating the market introduction

and market uptake of biotechnology solutions, strengthening emerging value chains

and providing access to finance and other support for SMEs, startups, scale ups and

innovators.

(e) Protecting people by supporting the development, implementation and monitoring of

health security policies, in cooperation with Member States authorities and

stakeholders, as well as coordinating Union and national prevention, preparedness

and response plans.

(f) Fostering an innovative and competitive bioeconomy sector in the Union, including

in the areas of health biotech, biobased materials and products, valorising farm and

forest residues, carbon negative products, biomanufacturing and biochemicals, in

particular by supporting the discovery, development, derisking, demonstration,

piloting, and scaling-up of bioeconomy innovations; by accelerating the market

introduction and market uptake of bio-based materials from agriculture and forestry

and bioeconomy solutions; by strengthening emerging value chains; by building a

skilled workforce, by providing access to finance and other support for SMEs,

startups, scale ups and innovators.

(g) Fostering the competitiveness, the sustainability, the resilience and fairness of

agriculture, fisheries, aquaculture, forestry sectors and rural and coastal areas, and

contribute to long term food security in the Union.

(h) Supporting actions for the development, implementation, monitoring and

enforcement of relevant Union legislation and policy. This includes supporting the

relevant institutions, the cooperation between national authorities and with

stakeholders, studies, the development and deployment of tools and infrastructures,

including IT infrastructure and tools.

2. Work programmes adopted in accordance with the rules of this Regulation under this

chapter shall integrate in a specific dedicated part and ensure coherence with

[Competitiveness and Society activities supported under the Regulation (EU) [XXX]

[Horizon Europe Framework programme for Research and Innovation

CHAPTER VI

SUPPORT FOR DIGITAL LEADERSHIP

Article 38

Specific provisions for support to digital leadership policy

1. Actions supported under this chapter shall contribute to the general objectives set out

in Article 3(1) and the specific objectives set out in Article 3(2), point (c).

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2. Support for actions under this chapter shall be financed from the budget set out in

Article 4(2), point (d), and any additional contributions assigned in accordance with

Article 5.

Article 39

Specific activities to support digital leadership policy

1. Support for digital leadership shall address, in a comprehensive and coherent

manner, the entire scope of the digital sector, such as Artificial Intelligence,

(including AI Factories and Gigafactories), high performance computing, quantum

technologies, semiconductors and photonics, robotics, large data technologies, telco-

edge and cloud technologies, 6G and other wireless technologies, communication

networks, advanced connectivity, including 6G and other wireless technologies,

sensing technologies, cybersecurity and network resilience, software engineering,

augmented reality and virtual worlds, digital twins, Union digital identity and

business wallets, trust technologies, new and emerging digital technologies as well as

cross-sectoral digital technologies and applications, including those with dual-use

potential, support for data technologies and data spaces.

2. Support for digital leadership shall be implemented in particular through the

following activities:

(a) Achieving leadership in digital and AI technologies through research and innovation,

applied research, technology transfer, industrial deployment, and market uptake. The

implementation shall include, but not be limited to, developing and shaping

sustainable core digital technologies that reflect Union values, safeguard the Union’s

security and foster its competitiveness globally.

(b) Achieving technological sovereignty by building resilient digital ecosystems,

including advanced digital skills, and ensuring a high-level of cybersecurity in the

Union. The implementation shall include, but not be limited to, creating an attractive

ecosystem for disruptive innovative companies, SMEs, start-ups and scale-ups, as

well as emerging industry leaders in the digital sector to remain, grow and thrive

within the Union, supporting them in scaling up, expanding their markets, including

through procurement, and contributing to the Union’s digital sovereignty, with a

focus on addressing the complexity of the technological value chains,

standardisation, the security of supply of advanced digital technologies,

infrastructures, and services, needed capacities, including manufacturing, production

capacity, and advanced digital skills both in the private and public sectors.

(c) Enabling the power of digital for businesses and citizens by deploying state-of-the-

art and sustainable digital applications, infrastructures and services across the Union.

The implementation shall include, but not be limited to, actions to research and

innovate, develop, produce, manufacture, or deploy advanced digital infrastructures

at scale across the Union (e.g. high-performance computing, telco-cloud-edge, AI

Factories and Gigafactories, data and data spaces, testing and experimentation

facilities, semiconductor, photonics and quantum chips pilot lines, quantum

computing, communication and sensing infrastructures, cybersecurity hubs, the EU

for Business Network, European Digital Innovation Hubs, advanced connectivity

infrastructures including submarine cables and non-terrestrial networks), the EU

Digital Identity Wallets and trust services as well as the European Business Wallets

and services, secure and interoperable digital public infrastructure, to act as a key

enabler of the digital transformation and in support of societal resilience and

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preparedness, bringing clear added-value to businesses, public services and citizens.

Where relevant, these actions shall be coordinated with national investments and

shall otherwise exploit untapped potential to create a domestic market for advanced

digital technologies ‘made in Europe’. Such actions may be provided under the

framework of Multi-Country Projects established in accordance with Decision (EU)

2022/2481, including notably those implemented through the European Digital

Infrastructure Consortia or Joint Undertakings.

(d) Supporting the Union’s digital transformation of public and private sectors, including

to support the development and the circulation of digital skills. The implementation

shall include, but not be limited to, providing the necessary support to accelerating

and deepening the uptake and deployment of digital solutions across economic

sectors, through research, innovation and deployment, to boost their productivity and

competitiveness, with a focus on more complex technologies, as well as to achieve

societal benefits. Support to public sector applications as well as the broader

digitalisation of the public sector shall aim at ensuring a cohesive Union-wide

interoperable digital public services landscape, support technological sovereignty,

maximising their efficiency for businesses and citizens. The digital transformation of

economic and public sectors shall also be supported by the other sectoral windows of

the ECF.

(e) Support actions for the development, implementation, monitoring and enforcement

of relevant Union legislation and policy. This includes supporting the relevant

institutions, the cooperation between national authorities and with stakeholders,

studies, the development and deployment of tools and infrastructures, including IT

infrastructure and tools.

3. Activities under this Section shall support the development, deployment and

procurement of advanced cybersecurity capacities, infrastructures, technologies and

capabilities, with a view to ensure the security of critical infrastructures & digital

supply chains, develop an Union situational picture of the threat landscape as well as

improve detection capacities and incident response capabilities; supporting the

competitiveness of the Union cybersecurity industrial base, cybersecurity skills

development together with the cyber maturity of the European industrial basis,

including SMEs.

4. Work programmes adopted in accordance with the rules of this Regulation under this

chapter shall integrate in a specific dedicated part and ensure coherence with

Competitiveness and Society activities under the Regulation (EU) [XXX] [Horizon

Europe Framework programme for Research and Innovation

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CHAPTER VII

SUPPORT FOR RESILIENCE AND SECURITY, DEFENCE

INDUSTRY AND SPACE

Article 40

Subject matter

1. Actions supported under this Section shall contribute to the general objectives set out

in Article 3(1) and the specific objectives set out in Article 3(2), point (d).

2. Support for actions under this section shall be financed from the budget set out in

Article 4(2), point (e), and any additional contributions assigned in accordance with

Article 5.

Article 41

Space and defence synergies

1. A Space and Defence Advisory Board is set up and may advice the Commission on

the coordination and complementarity between space and defence activities as laid

down Article 3(2)(d), sub-points (1) and (2) and related financial tools to increase

efficiency of investments and effectiveness of results. The members of the Advisory

Board referred to in paragraph 1 shall be appointed by Member States

SECTION 1

SUPPORT FOR RESILIENCE POLICY

Article 42

Specific activities to support resilience policies

1. Support to Resilience policy shall reinforce the strategic autonomy, economic

security and the resilience of the Union industry by strengthening the different stages

of the raw materials value chain, including through diversification of the supply of

critical raw materials from third countries.

2. Support for resilience policy shall be implemented in particular through the

following activities:

(a) support for the strengthening of the EU capacity in exploration, extraction,

processing and recycling of raw materials;

(b) purchasing of raw materials, in line with economic security needs and the green and

digital transition objectives, in order to reduce the risk of supply disruptions for

companies in the EU, including for establishing and managing stockpiles of critical

raw materials in coordination with Member States and industry;

(c) financial support to Strategic Projects under the Critical Raw Materials Act in line

with economic security needs and the green and digital transition objectives.

3. support provided through the activities referred to in paragraph 2, may be provided in

any form, including through collaborative research and innovation activities set out

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in the Framework Programme for Research and Innovation [REF] and identified in a

specific dedicated part of the Work Programme.

4. Work programmes adopted in accordance with the rules of this Regulation under this

chapter shall integrate in a specific dedicated part and ensure coherence with

Competitiveness and Society activities under the Regulation (EU) [XXX][Horizon

Europe Framework programme for Research and Innovation]

Article 43

Complementary rules

1. Strategic projects under CRMA and strategic projects foreseen in relevant sectoral

legislation may apply the rules in Article 20.

SECTION 2

SUPPORT FOR DEFENCE INDUSTRY POLICY

Article 44

Specific activities to support defence industry policy

1. Support for defence industry policy shall be implemented in particular through the

following components:

(a) Support to the deployment of European Defence Projects of Common Interest as

referred to in Article 45 of this Regulation.

(b) Support to Defence R&D, Innovation and Technological Superiority as referred to in

Article 46;

(c) Support to Defence Industrial Responsiveness, Industrial Scale-Up, and Resilience,

as referred to in Article 47;

(d) Support to cooperation in Defence Procurement, Maintenance and Availability as

referred to in Article 48;

(e) Military Logistics Enablement and Support as referred to in Article 49;

2. Support to new entrants, innovative start-ups, SMEs and scale-ups will be tailormade

across the activities listed in the first paragraph to ensure speed, flexibility and

agility. It will take the form of a dedicated programme EU Defence Innovation

Scheme (EUDIS), that will include innovative and scalable activities, including in

support to disruptive technologies and to single entities, such as: matchmaking

events and business coaching for innovators, agile funding mechanisms, challenges,

hackathons, support to innovative procurement, iterative upgrade procurement

models for rapidly evolving systems and any other actions for faster innovation

cycles and technology integration, validation and experimentation.

3. Support provided through the activities referred to in paragraphs 1 and 2, may be

provided in any form, including through collaborative research as well as innovation

activity support to single entities and financial instruments.

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Article 45

European Defence Projects of Common Interest

1. European Defence Projects of Common Interest shall consist of collaborative

industrial projects aimed at reinforcing the competitiveness of the EDTIB throughout

the Union while contributing to the development of Member States’ military

capabilities and systems of common interest and/or use, including those securing

access to all operational domains, namely land, maritime, air, space and cyber.

2. The Commission may identify European Defence Projects of Common Interest in an

implementing act, adopted in accordance with the examination procedure referred to

in Article 83, paragraph 3.

3. The Commission shall, when identifying projects referred to in paragraph 2:

(a) duly consider the guidance provided in the context of the Defence Industrial

Advisory Board, as referred to in Article 56, in particular the contribution of the

project to the capability priorities identified in the context of the CFSP, notably of

the Capability Development Plan, and the objectives of the Strategic Compass for

security and defence;

(b) identify overall financing needs and potential impacts for the Union budget;

(c) take into account any views of Member States.

4. European Defence Projects of Common Interest shall meet the following general

criteria:

(a) the project involves at least four Member States;

(b) the project aims at developing capabilities, including those securing access to

strategic domains and contested spaces, strategic enablers, and, as appropriate,

systems acting as European defence infrastructure of common interest and use;

(c) the benefits of the project extend to a wider part of the Union and ensures a broad

geographical participation

(d) the projects shall be particularly significant in size or scope and aim at mitigating a

considerable level of technological or financial risk;

(e) the potential overall benefits of the project outweigh its costs, including in the longer

term.

5. A European Defence Project of Common Interest shall involve at least four Member

States. The European Commission shall be able, where relevant, to participate in the

project.

6. A European Defence Project of Common Interest shall be considered to contribute to

the defence capabilities critical for the security and defence interests of the Union

and its Member States and therefore to be in the public interest. They may be

established in the framework of Structures for European Armament Programmes

established in accordance with Regulation (EU) [XXX] [European Defence Industry

Programme].

7. Member States may, without prejudice to Articles 107 and 108 TFEU, apply support

schemes and provide for administrative support to European Defence Projects of

Common Interest.

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8. The deployment of European Defence Projects of Common Interest may be

considered an imperative reason of overriding public interest within the meaning of

Article 6(4) and Article 16(1), point (c), of Directive 92/43/EEC and of overriding

public interest within the meaning of Article 4(7) of Directive 2000/60. Therefore,

the planning, construction and operation of related production facilities may be

considered of overriding public interest, provided that the remaining other conditions

set out in these provisions are fulfilled.

9. The Union shall support any activity necessary for the development,

industrialisation, procurement or deployment of a European Defence Project of

Common Interest notably through any of the activities supported under this Section.

Article 46

Collaborative Defence Research & Development, Innovation and Technological

Superiority

1. Activities supporting Defence R&D, Innovation and Technological Superiority may

cover, in particular:

(a) collaborative research actions for defence, from basic to applied research, focusing

on jointly agreed capability priorities;

(b) collaborative development actions for new defence products and technologies,

including at least system prototyping, testing, qualification, or certification;

(c) actions to support disruptive technologies for defence;

(d) actions to support faster innovation cycles and technology integration, including

continuous research and development and technological challenges;

(e) spin-in actions to adapt civilian technologies for defence.

Article 47

Defence industrial Responsiveness, Scale-Up, and Resilience

1. Activities related to the enhancement of the Responsiveness, Industrial Scale-Up,

and Resilience: to enhance responsiveness and resilience of the European Defence

Technological and Industrial Base, enabling it to develop, produce, and sustain

critical defence production capacity/capabilities at the necessary scale and speed,

including through supporting the industrial scale-up of innovative companies and by

supporting skills development; may cover in particular:

(a) the optimisation, expansion, modernisation, upgrading or repurposing of existing, or

the establishment of new, production capacities insofar as those components and raw

materials are intended or used wholly for the production of defence products, in

particular with a view to increasing production capacity or reducing lead production

times, including on the basis of the procurement or acquisition of the requisite

machine tools and any other necessary input;

(b) the establishment of cross-border industrial partnerships, including through public

private partnerships or other forms of industrial cooperation, in a joint industrial

effort, such as cross-border joint ventures including activities that aim to coordinate

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the sourcing or reservation and stockpiling of defence products, components and

corresponding raw materials insofar as those components and raw materials are

intended or used wholly for the production of defence products, as well as to

coordinate production capacities and production plans;

(c) the building-up and making available of reserved surge manufacturing capacities

(ever warm facilities) of defence products, their components and corresponding raw

materials, insofar as those components and raw materials are intended or used wholly

for the production of defence products, in accordance with ordered or planned

production volumes;

(d) fostering industrialisation and commercialisation of defence products that have been

developed in the framework of actions funded by the Union or other cooperative

activities conducted with support by at least two Member States including through

the establishment of cross-border industrial partnerships, public private partnerships

or other forms of industrial cooperation, ramping-up of initial production as well as

licensing production, where appropriate;

(e) the testing, including the necessary infrastructure, and, as appropriate, reconditioning

certification of defence products with a view to addressing their obsolescence and

making them useable by end users;

(f) reducing industrial strategic dependencies, in particular the replacement of

components subject to restrictions by a non-associated third country or third country

entity or the development of the ability to substitute or remove such components.

2. To ensure the availability of defence products in time and in volume thereby

fostering the competitiveness of the EDTIB as well as, where relevant, of the

Ukrainian DTIB, the Commission shall support the following set of measures (EU

Military Sales Mechanism – EU MSM):

(a) the establishment, management and maintenance of defence industrial readiness

pools of defence products;

(b) the establishment and maintenance of a single, centralised, catalogue of defence

products developed by the EDTIB; and the Ukrainian DTIB;

(c) the strengthening of administrative capacities related to public procurement of

defence products.

3. A Defence Industrial Readiness pool, as referred to in paragraph 2, point (a), shall

only be established, managed and maintained by a SEAP, as set out in Regulation

[EDIP] and shall offer Member States, associated countries and Ukraine an

immediate and preferential purchase or use/lease option to the defence products part

of the pool.

4. The Commission, upon consultation of the EDA, shall establish and keep up-to-date

the catalogue referred to in the paragraph 2, point (b). The Commission shall consult

the EDA and take into account its views in drawing up the technical specifications

for that catalogue and, where appropriate, shall procure the corporate IT platform

required to establish it. Member States, Ukraine and economic operators shall be

invited to populate that catalogue on a voluntary basis.

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Article 48

Common Defence Procurement, Maintenance and Availability

1. The Programme shall support activities that aim at increasing cooperation among

Member States and associated countries in joint certification capability development,

procurement, maintenance and availability of defence capabilities, thereby reducing

fragmentation and enhancing interoperability, achieving economies of scale,

ensuring faster access to needed equipment, and strengthening collective defence

readiness.

2. Member States and associated countries carrying out an action related to common

defence procurement, maintenance and availability shall appoint, by unanimity, an

eligible legal entity as agent to act on their behalf for the purposes of that action. The

agent shall, in particular, carry out the procurement procedures and conclude the

resulting contracts with contractors on behalf of the participating countries. The

procurement agent may participate in the action as a beneficiary and act as the

coordinator of the consortium, therefore being able to manage and combine funds

from the Programme and funds from the participating Member States and associated

countries.

3. The agent shall apply in its procurement procedures and contracts criteria equivalent

to those set out in Article 51 to its procurement procedures and contracts with

contractors, and require in the call for tender that these criteria are applied to

subcontractors.

4. The agents shall notify the Commission of the guarantees and mitigation measures

referred to in Article 51. Further information on those guarantees and mitigation

measures shall be made available to the Commission upon request. The Commission

shall inform the committee referred to in Article 83(1), point e, of any notification

provided in accordance with this paragraph.

5. Any contract resulting from an action related to Common defence procurement,

maintenance and availability shall include provisions governing the purchase of

additional quantities of defence products for other Member States, associated

countries or Ukraine.

6. For the purpose of this article, ‘agent’ means a contracting authority as defined in

Article 2(1), point (1), of Directive 2014/24/EU and Article 3(1) of Directive

2014/25/EU established in a Member State or an associated country, the European

Defence Agency, a Structure for European Armament Programme or an international

organisation that is designated by Member States, associated countries or Ukraine to

conduct a common procurement on their behalf.

Article 49

Military Logistics Enablement and Support

1. Activities related to the enhancement of military mobility in the Union by supporting

dual use of civilian-military assets, including equipment, infrastructure and

superstructures, facilitating, enabling and supporting military movements and access

to military mobility capabilities, including, through the pooling and sharing of

military mobility assets,; this also includes supporting military bases, encompassing

housing for military personnel and social infrastructure, to enable and sustain

increased stationing of military personnel in Member States; may cover:

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(a) The incentivisation of the procurement of products which enable or enhance the

movement, transportation, or deployment of military personnel, equipment, or

supplies, and improve the access to military mobility capabilities.

(b) The assistance to Member States in identifying and accessing transport and logistical

resources and equipment that may be available from the commercial market or other

sources for the purpose of supporting military mobility.

(c) The support to the digitalisation of Military Mobility related processes, to ensure and

facilitate direct and secure exchange of information between Member States

requesting and approving military movement and other relevant procedures.

(d) The reinforcement, modernisation, expansion and repurposing of industrial capacities

for the production and maintenance of products directly contributing to and

improving military mobility in the Union.

(e) The training, reskilling, and upskilling of personnel to enhance the availability of

skilled personnel for the transportation of defence products, components and

supplies, notably for the safe and efficient movement of oversized, overweight, and

dangerous goods.

(f) The enhancement of the protection and resilience of infrastructures that are strategic

for military mobility especially for those located on a military mobility corridor and

those having a European impact.

(g) Support actions for the development, implementation, monitoring and enforcement

of relevant Union legislation and policy. This includes supporting the relevant

institutions, the cooperation between national authorities and with stakeholders,

studies, the development and deployment of tools and infrastructures, including IT

infrastructure and tools.

2. Activities will be implemented in complementarity with Regulation (EU) [XXX]

[CEF].

Article 50

Complementary rules on the association of third countries

1. In addition to the rules in Article 11, actions under the specific objective referred to

in Article 3(2), point d, sub-point (2) shall be open to the participation of:

(a) A Members of the European Free Trade Association (EFTA) which are members of

the European Economic Area (EEA), in accordance with the conditions laid down in

the Agreement on the EEA;

(b) Ukraine.

2. Complementary to provisions required in Article 11, the association agreement with

third countries other than those referred to in paragraph 1 shall

(a) specify how eligibility conditions are to be adapted, in particular to enable the

participation of entities established in the associated country but controlled by

another third country or by another third country’ entity;

(b) lay down appropriate measures to ensure security of supply as well as any other

measure required for the protection of the security and defence interests of the

European Union and of the Member States;

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(c) contribute to an increase in the standardisation of defence systems and a greater

interoperability between Member States’ and those other third countries’ capabilities.

Article 51

Complementary eligibility rules for grants

1. In addition to fulfilling any conditions of eligibility provided under Article 9 of this

Regulation, Union recipients of Union funding shall comply with the obligations

included in paragraphs 2 to 6.

2. Recipients shall have their executive management structures in the Union or in an

associated country and shall not be subject to control by a non-associated third

country or by a non-associated third-country entity.

3. By derogation from paragraph 2 a legal entity established in the Union or in an

associated country and controlled by a non-associated third country or a non-

associated third country entity shall be eligible to be a recipient of Union funding if

guarantees approved in accordance with the national procedures of a Member State

or associated country in which it is established; including adequate measures

pursuant to screenings, as set out in Article 2, point (3), of Regulation (EU) 2019/452

are made available to the Commission.

4. These guarantees measures shall provide assurances that the involvement in an action

of a legal entity as referred to in that subparagraph would not contravene the security

and defence interests of the Union and its Member States as established in the

framework of the CFSP pursuant to Title V of the TUEU.

5. Guarantees as referred to in the first subparagraph shall in particular substantiate that,

for the purposes of an action, measures are in place to ensure that:

(a) control over the legal entity is not exercised in a manner that restrains or restricts its

ability to carry out the action and to deliver results, that imposes restrictions

concerning its infrastructure, facilities, assets, resources, intellectual property or

knowhow needed for the purposes of the action, or that undermines its capabilities

and standards necessary to carry out the action;

(b) access by a non-associated third country or by a non-associated third-country entity

to sensitive information relating to the action is prevented and the employees or other

persons involved in the action have national security clearance issued by a Member

State or an associated country, where appropriate;

(c) ownership of the intellectual property arising from, and the results of, the action

remain within the recipient during and after completion of the action, are not subject

to control or restriction by a non-associated third country or by a non-associated

third-country entity, and are neither exported outside the Union or outside associated

countries nor accessible from outside the Union or outside associated countries

without the approval of the Member State or the associated country in which the

legal entity is established and in accordance with the objectives set out in Article 3.

6. If considered to be appropriate by the Member State or the associated country in

which the legal entity is established, additional guarantees may be provided.

7. The Commission shall inform the committee referred to in Article 83(1), point (e) of

any legal entity considered to be eligible in accordance with this paragraph.

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8. Unless in certain duly substantiated and exceptional circumstances to be defined in

the work programme or the documents related to the award procedure, the

infrastructure, facilities, assets and resources of the recipients of Union funding

involved in an action which are used for the purposes of that action shall be located

on the territory of a Member State or of an associated country. Where appropriate,

the work programmes may set out conditional exceptions to this rule.

9. For actions referred to in Article 44(1), points (a), (b), (e) and in Article 45(2),

conditions referred to in paragraphs 2 to 6 shall apply to subcontractors involved in

the action. ‘Subcontractors involved in an action’ refers to subcontractors with a

direct contractual relationship to a recipient, other subcontractors to which at least 10

% of the total eligible costs of the action is allocated, and subcontractors which may

require access to classified information in order to carry out the action.

Subcontractors involved in an action are not members of the consortium.

10. For actions referred to in Article 44(1), points (a) and (d), conditions referred to in

paragraphs 2 to 6 shall apply to subcontractors involved in the action or in the

common procurement. ‘Subcontractors involved in the common procurement’ means

legal entities which provides critical inputs that possess unique attributes essential for

the functioning of a product, which is allocated at least 15 % of the value of the

contract, and which needs access to classified information for the performance of the

contract.

11. The results of actions referred to in 44(1), points (a) and (b) and in Article 44(2), as

well as the products or technologies stemming from these actions, shall not be

subject to any control or restriction by a non-associated third country or by a non-

associated third-country entity, directly, or indirectly through one or more

intermediate legal entities, including in terms of technology transfer.

12. For actions referred to in Article 44(1), points (a), (c) and (d), the estimated cost of

components originating in the Union shall not be lower than 65 % of the estimated

cost of the end product. No components shall be sourced from third countries that

contravene the security and defence interests of the Union and the Member States,

including respect for the principle of good neighbourly relations.

13. For actions referred to in Article 44(1), points (a), (c) and (d), recipients and

contractors shall have the ability to decide, without restrictions imposed by third

countries or by third-country entities, on the definition, adaptation and evolution of

the design of the defence product procured or the increase in production capacity of

which is supported, including the legal authority to substitute or remove components

that are subject to restrictions imposed by third countries or by third-country entities.

14. For actions referred to in Article 44(1), points (c) and (d), the work programme may

provide that eligibility requirements set out in paragraphs 10 and 11 of this Article

will be assessed at the end of the action.

15. Except for actions referred to in Article 44, paragraph 2 or unless specified otherwise

in the work programmes, Union support shall only be granted to actions carried out

by:

(a) legal entities cooperating within a consortium of at least three eligible legal entities

which are established in at least three different Member States or associated

countries. At least three of those eligible legal entities established in at least two

different Member States or associated countries shall not, during the entire period in

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which the action is carried out, be controlled, directly or indirectly, by the same legal

entity and shall not control each other;

(b) or to a Structure for European Armament Programme established in accordance with

Regulation (EU) [XXX][EDIP]

16. If a register is created at Union level with the aim of increasing the availability of

products that enable or enhance the mobility, transportation, or deployment of

military personnel, equipment, or supplied, products supported under Article 45a

shall be registered in that registry for the purpose of making that product available

for the Union or its Member States.

17. Only the following legal entities shall be eligible for actions related to common

defence procurement, maintenance and availability, as referred to in Article 48:

(a) public contracting authorities of Member States or associated countries;

(b) International Organisations;

(c) the Structures for European Armament Programme, established in accordance with

Regulation (EU) [XXX] [EDIP];

(d) the European Defence Agency.

18. Notwithstanding Article 201 of Regulation (EU, Euratom) 2024/2509, only the

financial capacity of a consortium coordinator shall be verified.

19. In accordance with Article 153(3) of Regulation (EU, Euratom) 2024/2509, the

evaluation committee may be assisted by independent external experts holding valid

personal security clearance, if required by the work programme. By way of

derogation from Article 242 of the Regulation (EU, Euratom) 2024/2509, the list of

independent experts shall not be made public.

Article 52

Funding rates

1. For actions referred to in Article 44(1), point (a), the Union support may cover up to

100% of the eligible costs.

2. For actions referred to in Article 44(1), point (b), supporting defence research and

innovation, Union support may cover up to 100% of the eligible costs.

3. For actions referred to in Article 44(1), point (b), supporting the development of

defence technologies and capabilities, Union support may cover up to 50% of the

eligible costs or, for procurement of R&D services, up to 50% of the estimated value

of the contract.

4. For actions referred to in Article 44(1), point (c), the Union support may cover up to

50% of the eligible costs.

5. For actions referred to in Article 44(1), point (d), the Union support may cover up to

25% of the estimated value of the common procurement.

6. For actions referred to in Article 44(1), point (e), the Union support may cover:

(a) where the action supports a procurement carried out by Member States up to 25% of

the estimated value of the procurement;

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(b) where the actions aims at assisting Member States to accessing transport and

logistical resources, up to 100% of the eligible costs.

7. In order to properly take into account the particular situation of the Strategic Partner

concerned, the Union support may cover up to 100% of the eligible costs for actions

referred to in Article 44(1), point (f).

8. By way of derogation from Article 184(6) of the Financial Regulation, for actions

referred to in Article 44(1), point (a) and (b), the authorising officer responsible may

authorise or impose, in the form of flat-rates, funding of the beneficiary’s indirect

costs up to a maximum of 25 % total eligible direct costs, excluding direct eligible

costs for subcontracting, financial support to third parties and any unit costs or lump

sums which include indirect costs.

Article 53

Award criteria

1. As specified in the work programmes, proposals for actions shall be assessed in

accordance with excellence-oriented award criteria:

(a) The quality and efficiency of the implementation of the action.

(b) The objectives, priorities and the expected results set for the relevant action, in

particular trough the evaluation of one or more of the following criteria as specified

in the work programmes: (i) contribution to excellence in the defence domain, (ii)

innovation capacities, (iii) cross-border cooperation, in particular with SMEs and

mid-caps that bring substantial added-value to the action, (iv) competitiveness, (v)

increase in production capacities and availability, (vi) reduction of lead production

time, (v) increase in interoperability, (vii) increase in interchangeability and (viii)

security of supply throughout the Union in response to identified risks, including in

particular high exposure to the risk of materialisation of conventional military

threats.

Article 54

Ownership of results

1. Where Union support is provided in the form of a grant, Union institutions, bodies,

offices or agencies as well as granting authorities shall enjoy upon request royalty-

free access rights to results for the purpose of developing, implementing and

monitoring existing Union policies or programmes in the fields of its competence

and the right to grant, or to require the recipients to grant, non-exclusive licenses to

third parties to exploit the results under fair and reasonable conditions to be set out in

the contractual relationships between the interested parties without any right to

sublicense unless otherwise specified in the grant agreement.

2. Without prejudice to applicable export control rules under Member States and

associated countries responsibility:

(a) The national authorities of Member States and associated countries shall enjoy access

rights to the special reports of activities funded under Article 44 paragraph 1, point

(b). Such access rights shall be granted on a royalty-free basis and transferred by the

Commission to the Member States and associated countries after the Commission has

ensured that appropriate confidentiality obligations are in place.

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(b) The national authorities of Member States and associated countries shall use the

special report solely for purposes related to the use by or for their armed forces, or

security or intelligence forces, including within the framework of their cooperative

programmes. Such use shall include study, evaluation, assessment, research, design,

product acceptance and certification, operation, training and disposal, as well as the

assessment and drafting of technical requirements for procurement.

(c) Where two or more Member States or associated countries have, multilaterally or

within the framework of the Union, jointly concluded one or several contracts with

one or more recipients to further develop together results of activities supported by

the Fund under Article 45 paragraph 1, point (b), they shall enjoy access rights to

those results insofar as they are owned by such recipients and are necessary for the

execution of the contract or contracts. Such access rights shall be granted on a

royalty-free basis and under specific conditions aiming to ensure that those rights are

used only for the purposes of the contract or contracts and that appropriate

confidentiality obligations are put in place.

(d) For actions supporting development of defence technologies and capabilities, access

rights to the results of development actions shall be granted to the national authorities

co-financing the action under fair and reasonable conditions to be agreed upon with

the recipients generating those results. Terms and conditions for the exercise of such

access rights shall be set out in the contractual relationship between the recipients

and the national authorities co-financing the action.

(e) For actions supporting defence industrial reinforcement, scale-up, or the

establishment of strategic production capacities, the Commission shall be allowed to

provide the Member States and associated countries with the relevant action

documentation upon request in order to avoid double funding of the same costs.

(f) Where the Union supports common procurement of defence products, participating

Member States and associated countries shall make a relevant set of information,

such as main characteristics, performances, unit costs and delivery times, available to

other Member States and associated countries upon request to allow them to join the

procurement at a later stage under fair and reasonable conditions.

(g) Such access rights shall include the right to authorise other legal entities established

in the Union or associated countries to use the results on their behalf, under

conditions of confidentiality where appropriate.

3. Any transfer of ownership of results, or the granting of exclusive licences for results,

generated with support to legal entities established in non-associated third countries

or to non-associated third-country entities shall be subject to prior notification and

approval by the Commission or the relevant Member State or associated country

authorities, which takes place within 3 years after the final payment of the action,

under conditions ensuring the protection of the Union’s security and defence

interests.

Article 55

Additional applicable rules on classified information

1. Natural persons who are resident in and legal persons that are established in a third

country may handle Union classified information regarding the Programme only

where they are subject, in those countries, to security regulations ensuring a degree

of protection at least equivalent to that provided by the security rules of the

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Commission and of the Council, as set out in Decision (EU, Euratom) 2015/444 and

Decision 2013/488/EU, respectively.

2. Without prejudice to Article 13 of Decision 2013/488/EU and to the rules governing

the field of industrial security set out in Decision (EU, Euratom) 2015/444, a natural

or legal person, third country or international organisation may be given access to

Union classified information where considered to be necessary on a case-by-case

basis, according to the nature and content of such information, the recipient’s need to

know and the degree of advantage to the Union.

3. Where actions involve, require or contain classified information, the relevant funding

body shall specify in the documents concerning the call for proposals or tenders the

measures and requirements necessary to ensure the security of such information at

the requisite level.

4. The equivalence of the security regulations applied in a third country or by an

international organisation shall be laid down in a security of information agreement,

including industrial security matters if relevant, concluded or to be concluded

between the Union and that third country or international organisation in accordance

with the procedure provided for in Article 218 TFEU and taking into account Article

13 of Decision 2013/488/EU.

5. The security framework to ensure the appropriate protection of classified foreground

information generated in carrying out in an action funded under this Section shall be

established in accordance with Decisions (EU, Euratom) 2015/444 and implementing

rules, with the assistance of security experts appointed by the Member States and

associated countries on whose territory the beneficiaries are established. The

Member States and associated countries, in the framework of the works of the

Commission Security Expert Group (ComSEG), shall provide the Commission with

a jointly agreed security classification guide. If no such specific jointly agreed

security classification guide is set up by the Member States and associated countries,

the Commission shall set up the security framework for the action in accordance with

the applicable Commission security provisions. The classified foreground

information generated in carrying out in an action funded under this Section shall not

be disseminated further without a certified “need to know” agreed by the

participating Member States and associated countries. The applicable security

framework for the action shall in any event be put in place before the signature of the

funding agreement.

Article 56

Defence Industrial Advisory Board

1. A Defence Industrial Advisory Board is hereby established.

2. The general task of the Board is to assist and provide advice and recommendations to

the Commission pursuant to this Regulation. It shall notably provide advice on the

long-term investment strategy of the defence policy window.

3. The Defence Industrial Board shall be composed of representatives of the Member

States, of the Commission and of the High Representative/Head of the Agency. Each

Member State shall nominate one representative and one alternate representative.

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SECTION 3

SPACE SYSTEMS AND SPACE POLICY IMPLEMENTATION

Article 57

Specific provisions

1. Activities supported under this section shall contribute to the general objectives set

out in Article 3(1) and the specific objectives set out in Article 3(2), point (e).

2. Support for activities under this section shall be financed from the budget set out in

Article 4(2), point (e), and any additional contributions assigned in accordance with

Article 6.

Article 58

Components

1. The Union space systems and space policy shall be implemented in particular

through the following components:

(a) Positioning, Navigation & Timing (PNT), including Galileo and EGNOS sub-

components;

(b) Earth Observation (EO), including Copernicus and Earth Observation Governmental

Service (EOGS) sub-components;

(c) Secure Connectivity, including Infrastructure for Resilience, Interconnectivity and

Security by Satellite (IRIS²) and Governmental Satellite Communication

(GOVSATCOM) sub-components;

(d) Space Situational Awareness (SSA), including Space Surveillance and Tracking

(SST), Space Weather Events (SWE), and Near Earth Objects (NEO) sub-

components;

(e) access to space;

(f) Space commercialisation and space economy;

(g) Technological sovereignty, research and innovation.

Work programmes adopted in accordance with the rules of this Regulation under this

section shall integrate in a specific dedicated part and ensure coherence with the

Competitiveness and Society activities supported under the Regulation (EU)

[XXX][Framework programme Horizon Europe] and taking into account the specific

rules under this Section.

Article 59

Positioning, Navigation & Timing (PNT)

1. The Positioning, Navigation & Timing (PNT) component (Galileo and EGNOS sub

components) supported under this section shall provide long-term, state-of-the-art

and secure positioning, navigation and timing services, without interruption

including in adverse conditions, and wherever possible at global level, and be able to

support the Union’s political priorities.

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2. The eligible activities of the PNT component shall include:

(a) at least the management, operation, maintenance, continuous improvement and

protection of space-and ground infrastructure and services provided;

(b) the evolution of the PNT services and the development and deployment of future

generations of the systems ; including for Low Earth Orbits (LEO-PNT);

(c) the research and development activities supporting the modernization of the

infrastructure (‘upstream R&D’) and the development of applications, user

technology, standardisation and certification (‘downstream R&D’);

(d) the cooperation with other regional or global satellite navigation systems, including

to facilitate compatibility and interoperability and the promotion of the role of the

Union as a global actor in the space sector, encourage international cooperation, and

support European space diplomacy.

3. The services provided by the Union’s PNT component shall in particular cover:

(a) an open service for use by consumers (OS);

(b) a high-accuracy service for professional or commercial use (HAS);

(c) an open service navigation message authentication (OSNMA) for the authentication

of the Galileo open service );

(d) a public regulated service restricted to government-authorised users (PRS);

(e) a multi-hazard emergency warning service (EWSS);

(f) a timing service (TS);

(g) a space navigation service for use by operators of space assets;

(h) a global stand-alone search and rescue service, including for governmental users,

integrating return communication capabilities to support rescue operation (SAR);

(i) a safety of life services for users for whom safety is essential, including civil

aviation, maritime, and other transport applications (SoL);

(j) a data dissemination service (EDAS);

(k) radio-frequency interference monitoring services for different authorised user

communities of all space components;

(l) a contribution to complementary PNT services, which shall increase the resilience in

case of disruptions to the services provided by the PNT component.

4. PRS shall be free of charge for the Member States, the Council, the Commission,

EEAS and, where appropriate, duly authorised Union agencies. The services of the

PNT component shall be provided as a priority over the territories geographically

located in Europe of all Member States and third countries participating in the PNT

sub-components.

5. The Commission may adopt, by means of implementing acts, measures required to

establish and regulate access policies for PNT data and services. These implementing

acts shall be adopted in accordance with the advisory procedure referred to in Article

83, paragraph 2.

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Article 60

Earth Observation

1. The Earth Observation (EO) system shall consist of Copernicus, and of the Earth

Observation Governmental Service (EOGS). Copernicus is an operational,

autonomous, user-driven, civil Earth observation system under civilian control,

building on the existing national and European capacities. It shall offer geo-

information data and services, comprising satellites, ground infrastructure, data and

information processing facilities, and distribution infrastructure, based on a free, full

and open data policy and, where appropriate, integrating the needs and requirements

of security.

2. Copernicus shall also support the formulation, implementation and monitoring of the

Union’s and its Member States’ policies in particular in the fields of environment,

climate change, marine, maritime, atmosphere, agriculture and rural development,

preservation of cultural heritage, civil protection, infrastructure monitoring, safety

and security, as well as digital economy, under the Digital Leadership window,

which shall be aligned with the objective of Copernicus.

3. Copernicus shall promote the international coordination of Earth observation systems

and related exchanges of data in order to strengthen its global dimension and

complementarity taking account of international agreements and coordination

processes.

4. ‘Copernicus core users’ are the Union institutions and bodies and European, national

or regional public bodies in the Union or associated third countries entrusted with a

public service mission for the definition, implementation, enforcement or monitoring

of civilian public policies, such as environmental, civil protection, safety, including

safety of infrastructure, or security policies, which benefit from Copernicus data and

Copernicus information and have the additional role of driving the evolution of

Copernicus.

5.  To ensure its continuity and evolution, and meet the evolving users’ needs, in

particular Union institutions and bodies and European, national, or regional public

bodies in the Union or associated third countries, Copernicus shall in particular be

composed of:  

(a) Copernicus Infrastructure, including development, deployment, and operations of the

Copernicus Sentinels, access to third-party space-based Earth observation data and

sustained access to in-situ and other ancillary data, including possible contributions

to international in-situ networks;

(b) Copernicus Services, including environmental monitoring on a global level for land,

climate change, atmosphere and marine environments; emergency management

services; prevention and preparedness services; security services within the Union;

including maritime surveillance and border monitoring; support to Union external

action and Common Foreign and Security Policy;

(c) Copernicus data access and distribution, including infrastructure and services to

ensure the discovery, viewing, access to, distribution and exploitation and long-term

preservation of Copernicus data and Copernicus information, in a user-friendly

manner, notably the synergies with other data spaces, such as the European Green

Deal Data Space or Digital Twins.  

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(d) The Commission may adopt, by means of implementing acts, technical specifications

referring to the eligible actions listed in paragraph 4. Those implementing acts shall

be adopted in accordance with the advisory procedure referred to in Article 83,

paragraph 2.

6. The Commission may also adopt delegated acts in accordance with Article 84 to

supplement Copernicus data and information policy as regards the security

limitations as well as the specifications, conditions and procedures for the access to

and use of Copernicus data and Copernicus information.

7. EOGS shall provide enhanced situational awareness in support of preparedness,

decision-making and the action of the Union and Member States in the fields of

security and defence. EOGS shall in particular comprise satellites, ground

infrastructure, data and information processing facilities, and distribution

infrastructure. It shall provide secure, reliable, timely, persistent and targeted space-

based Earth observation data, reinforcing existing and planned capabilities. It shall

complement and build on existing capabilities provided through the European Union

Satellite Centre, including those from Member States. EOGS may also provide

complementary information to Copernicus Services, in particular for civil protection

and security.

8. EOGS shall in particular be composed of:

(a) EOGS Infrastructure, including, development and operations of new Earth-

observation space missions designed for sensitive governmental applications; access

to complementary third-party space-based Earth observation data; access to in-situ

and other ancillary data; 

(b) EOGS Services, including activities for the generation of value-added geo-spatial

information restricted to government-authorised users for sensitive situational

awareness applications, in support of preparedness, decision-making in the fields of

security and defence;  

(c) EOGS Data access and distribution, including infrastructure and services to ensure

the access to, distribution and exploitation and long-term preservation of EOGS data

and information, in a secure manner.

9. The Commission may adopt, by means of implementing acts, technical specifications

referring to EOGS eligible actions, as listed in paragraph 8. Those implementing acts

shall be adopted in accordance with the advisory procedure referred to in Article 83,

paragraph 2.

10. The users of EOGS shall be duly authorised by the Commission or Member States,

and shall comply with the general security requirements referred to in Article 69. The

following entities may be authorised as users of EOGS:

(a) a Union or Member State public authority or body entrusted with the exercise of

public authority;

(a) a natural or legal person acting on behalf and under the control of an entity referred

to in point (a).

11. Member States may contribute to EOGS with satellite capacities, ground segment

sites or part of the ground segment facilities.

12. Union agencies may have access to EOGS only insofar as necessary to fulfil their

tasks and in accordance with detailed rules laid down in an administrative

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arrangement concluded between the agency concerned and the Union institution that

supervises it.

13. Research and development activities shall support the evolution of Copernicus and

EOGS, including their services, and downstream R&D for applications and user

technology for the uptake of Earth Observation services.

Article 61

Secure Connectivity

1. The scope of the Secure Connectivity component shall in particular be:

(a) ensuring the long-term availability of reliable, secure and cost-effective

governmental services and GOVSATCOM services;

(b) enabling IRIS² commercial services;

(c) enabling, where possible, the development of communication and additional non-

communication services, in particular by improving activities and components under

this section, creating synergies between them and expanding their capabilities and

services, as well as the development of non-communication services to be provided

to Member States, by hosting additional satellite subsystems, including payloads;

(d) improving secure connectivity over geographical areas of strategic interest such as

Africa and the Arctic as well as the Baltic, the Black Sea, Mediterranean regions and

the Atlantic.

2. This component shall cover in particular the following eligible activities:

(a) the definition, design, development, validation and related deployment activities for

the necessary space and ground infrastructure required for the provision of IRIS²

governmental services;

(b) exploitation activities providing IRIS² governmental services, comprising the

operation, maintenance, continuous improvement and protection of the space and

ground infrastructure, including replenishment and obsolescence management;

(c) the gradual integration of EuroQCI into the Secure Connectivity system;

(d) research and development of activities for the future generations of space and ground

infrastructure, the evolution of IRIS² governmental services; and GOVSATCOM

services, technological development, notably to ensure Union technological

sovereignty, and the uptake of secure connectivity services, including activities

relating to the design, development and manufacturing of user terminals;

(e) the procurement and provision of governmental and commercial satellite

communication capacities, services, and user equipment necessary for the pooling

and sharing of GOVSATCOM services; capacities, services, and user equipment,

which shall be provided by:

(1) GOVSATCOM participants as referred to in paragraph 17; or

(2) legal persons duly accredited to provide satellite communication

capacities or services in accordance with the security accreditation

procedure referred to in Article 69, which shall be done in

compliance with the general security requirements referred to in

Article 77.

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3. IRIS² and GOVSATCOM infrastructures shall include the following requirements:

(a) The IRIS² infrastructure shall be modular and consist of a governmental

infrastructure and a commercial infrastructure. It shall include all the relevant ground

and space segments which are required for the provision of the governmental

services, including the relevant control centres.

(b) The IRIS² commercial infrastructure of the secure connectivity system shall include

all space and ground assets other than those being part of the governmental

infrastructure. The commercial infrastructure shall not impair the performance or

security of the governmental infrastructure. The commercial infrastructure and any

related risks shall be entirely financed by the private sector.

(c) The IRIS² governmental infrastructure shall host, where appropriate, additional

satellite subsystems, in particular payloads, that may be used as part of the space-

based infrastructure of the other space components of the ECF, as well as satellite

subsystems used for the provision of non-communication services to Member States.

(d) The GOVSATCOM infrastructure shall include infrastructure necessary to enable the

provision of GOVSATCOM services, particularly the GOVSATCOM Hub.

(e) The ground and space segments referred in paragraphs 3 and 4 and their operation

shall comply with the general security requirements referred to in Article 77

paragraph 3.

4. The provision of Secure Connectivity services shall be ensured as laid down in a

service portfolio, and in accordance with operational requirements and in accordance

with the security requirements referred to in Article 77. The provision of

GOVSATCOM services shall also follow the sharing and prioritisation rules referred

to paragraph 9.

5. Access to GOVSATCOM services and IRIS² governmental services shall be free of

charge for institutional and governmental users unless the Commission sets out a

pricing policy in accordance with paragraph 11.

6. The Commission shall adopt, by means of implementing acts, the service portfolio

for GOVSATCOM services and IRIS² governmental services, including services to

government-authorised users based on the commercial infrastructure.

7. The Commission shall adopt, by means of implementing acts, the operational

requirements for GOVSATCOM services and IRIS² governmental services.

8. The sharing and prioritisation of GOVSATCOM services shall prioritise

GOVSATCOM users according to their relevance and criticality. The Commission

shall adopt, by means of implementing acts, the detailed rules on the sharing and

prioritisation of GOVSATCOM capacities, services, and user equipment. The

Commission shall also adopt, by means of implementing acts, detailed rules on the

provision of IRIS² governmental services. When drawing those acts, the Commission

shall take into account the expected demand for the different use-cases, the analysis

of security risks for those use-cases and, where appropriate, cost-efficiency.

9. When the analysis of risks and expected demand referred to in paragraph 11

concludes there is a shortage of capacities or where demand exceeds the access

capacity for IRIS² governmental services, which may lead of a distortion of the

market, the Commission may adopt, by mean of implementing acts, a pricing policy.

By adopting a pricing policy, the Commission shall ensure that the provision of

GOVSATCOM services and the IRIS² governmental services does not distort

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competition, that there is no shortage of those services and that the price identified

will not result in an overcompensation for the contracts referred to in paragraph 20.

10. The implementing acts referred to in paragraphs 9 to 12 shall be adopted in

accordance with the examination procedure referred to in Article 83 paragraph 3.

11. Member States, the Council, the Commission and the EEAS shall be Secure

Connectivity participants insofar as they authorise users, or provide satellite

communication capacities, ground segment sites or part of the ground segment

facilities.

12. Union agencies may become secure connectivity participants only insofar as

necessary to fulfil their tasks and in accordance with detailed rules laid down in an

administrative arrangement concluded between the agency concerned and the Union

institution that supervises it.

13. Third countries and international organisations may become secure connectivity

participants subject to a specific dedicated international agreement concluded in

accordance with Article 218 TFEU and pursuant to Article 11, paragraph 3 of this

Regulation.

14. The users of governmental services shall be duly authorised by the participants to use

GOVSATCOM services or the IRIS² governmental services and shall comply with

the general security requirements referred to in Article 77, paragraph 3. The

following entities may be authorised as users of GOVSATCOM services or IRIS²

governmental services:

(a) a Union or Member State public authority or a body entrusted with the exercise of

public authority;

(b) a natural or legal person acting on behalf and under the control of an entity referred

to in point (a).

15. IRIS² shall be implemented through a concession contract. If the IRIS² concession

contract fails, the Commission shall ensure an optimal implementation by procuring,

as appropriate, a supply, service or works contract or a mixed contract.

16. The Commission shall take the necessary measures to ensure the continuity of the

IRIS² governmental services if the contractors referred to in this Article are unable to

fulfil their obligations.

17. The contracts referred to in this Article shall in particular ensure that the provision of

services based on the IRIS² commercial infrastructure preserves the Union’s essential

interests and the objectives of the sub-component. Those contracts shall also include

adequate safeguards to avoid any overcompensation of the contractors referred to in

this Article, distortions of competition, conflicts of interest, undue discrimination or

any other hidden indirect advantages. Such safeguards may include the obligation of

accounting separation between the provision of IRIS² governmental services and the

provision of IRIS² commercial services, including the setting up of a structurally and

legally separate entity from the vertically integrated operator for the provision of

governmental services, and the provision of open, fair, reasonable and non-

discriminatory access to the infrastructure necessary for the provision of commercial

services. The contracts shall also ensure that the conditions on eligibility are met

throughout their duration.

18. Where the IRIS² governmental and commercial services rely on common subsystems

or interfaces to ensure synergies, the contracts referred to in this Article shall also

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determine which of those interfaces and common subsystems shall be part of the

governmental infrastructure in order to ensure the protection of the security interests

of the Union and its Member States.

19. The contractors referred to in this Article shall entirely finance the commercial

infrastructure referred to in paragraph 3 in order to fulfil the objective referred to in

paragraph 1, point (b).

Article 62

Space Surveillance and Tracking

1. The SST sub-component of SSA shall in particular include:

(a) the establishment, development and operation of a network of sensors of the Member

States, be selected by architecture studies, comprising ground-based and space-based

SST sensors of the Member States, be selected by architecture study, including

sensors developed through the European Space Agency, of Union commercial sector,

and of Union sensors aiming to survey and track space objects and produce an

autonomous European catalogue of space objects;

(b) the processing and analysis of SST data in order to produce SST information and

SST services;

(c) the provision of the SST services to the SST users;

(d) seeking, fostering and supporting synergies with initiatives promoting development

and deployment of technologies for spacecraft disposal at the end of operational

lifetime and of technological systems for the prevention and elimination of space

debris,

(e) the cooperation, including at operational level, with the international initiatives in the

space traffic coordination;

(f) the delivery of the activities established by Regulation (EU) [XXX] [safety,

resilience and environmental sustainability of space activities in the Union]

(g) research and development activities supporting the evolution of the SST, including

its services

2. The SST sub-component shall also provide technical and administrative support to

ensure the transition between the SST activities performed under the ECF and the

SST activities performed under Regulation (EU) 2021/696.

3. The SST Partnership created under Regulation (EU) 2021/696 shall continue to be in

effect under the ECF. The Commission may adopt, by means of implementing acts,

detailed rules for the inclusion at a later stage of a Member State in the SST

Partnership. Those implementing acts shall be adopted in accordance with the

examination procedure referred to in Article 83, paragraph 3.

4. The tasks of the SST Partnership referred to in paragraph 5 shall be extended to

support the SST implementation. The Commission is empowered to adopt delegated

acts in accordance with Article 84 to supplement this paragraph with the detailed list

of tasks to be performed by the SST Partnership.

5. SST services shall be free of charge, available at any time without interruption and

adapted to the needs of the SST users and shall comprise:

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(a) the risk assessment of collision between spacecraft or between spacecraft and space

debris and the potential generation of collision avoidance alerts during the phases of

launch, early orbit, orbit raising, in-orbit operations and disposal phases of spacecraft

missions;

(b) the detection and characterisation of in-orbit fragmentations, break-ups or collisions;

(c) the risk assessment of the uncontrolled re-entry of space objects and space debris into

the Earth’s atmosphere and the generation of related information, including the

estimation of the timeframe and likely location of possible impact;

(d) the development of activities related to space debris mitigation in order to reduce

their generation, space debris remediation, the monitoring of launch after injection,

specific services for constellations, the establishment of a marketplace for SST

services, preparation of the system to Cislunar operations, support to in-space

operations and services, and to dark and quiet sky.

6. The SST services may comprise services for governmental SST users based on the

catalogue referred to paragraph 1, point a.

7. The Commission is empowered to adopt delegated acts to supplement the list of non-

core users and specify the services that they may have access to.

8. The Commission may adopt, by means of implementing acts, the operational and

access requirements as well as the security and technical specifications for SST

services. Those implementing acts shall be adopted in accordance with the

examination procedure referred to in Article 83, paragraph 3.

9. SST Users shall comprise:

(a) SST core users, which shall have access to all SST services: Member States, the

EEAS, the Commission, the Council, the Agency as well as public and private

spacecraft owners and operators established in the Union;

(b) SST non-core users;

(c) Governmental SST users for the governmental service: Member State authorities, the

EEAS, the Council.

10. The Commission may adopt, by means of implementing acts, detailed provisions

concerning the access to SST services by the SST users and relevant procedures.

Those implementing acts shall be adopted in accordance with the examination

procedure referred to in Article 83, paragraph 3.

11. The SST sub-component shall not be open to the participation of third countries,

except Norway.

Article 63

Near-Earth Objects

1. The objective of the NEO sub-component of SSA is the risk monitoring of natural

objects in the solar system which are approaching the Earth.

2. Eligible activities under NEO shall in particular cover relevant activities to fulfil the

objective set out in paragraph 1, notably support activities related to the maintenance

and data entries of the Union catalogue of physical properties of near-Earth objects.

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3. and research and development activities supporting the evolution of the NEO,

including its services, and downstream R&D for applications and user technology for

the uptake of NEO services.

Article 64

Space Weather Events

1. The objective of the SWE is to monitor and assess natural changes related to space

weather events, such as solar winds and solar flares.

2. Eligible activities under SWE shall encompass all the activities required to provide

space weather services, including research and development activities supporting the

evolution of the SWE, as well as its services and downstream R&D for applications

and user technology for the uptake of SWE services.

3. SWE services shall aim to be available at any time without interruption and shall in

particular comprise:

(a) the Space domain;

(b) the PNT domain;

(c) the EO domain;

(d) the Telecommunication / SATCOM domain.

4. The Commission may adopt, by means of implementing acts, detailed provisions

concerning SWE services, including requirements and technical specifications

relating to those services. Those implementing acts shall be adopted in accordance

with the examination procedure referred to in Article 83, paragraph 3.

Article 65

Access to space

1. Access to space is the ability to launch and transport spacecraft to, in and from space.

2. The Union shall foster an autonomous and resilient access to space, by supporting

European reliable and cost-efficient launch services together with a cohesive

European approach, taking into account the essential security interests of the Union

and its Member-States.

3. In synergies with other Union programmes and funding schemes, the eligible

activities shall cover in particular:

(a) procurement and aggregation of launch services for the needs of the Union and, at

their request, aggregation and joint procurement of launch services for the needs of

Member States, international organisations, and other public entities;

(b) access to space innovation, including the upgrade and development of new

technologies and systems and services.

(c) development, adaptation, construction, maintenance and operation of critical Union

based ground infrastructure, including but not limited to the facilities necessary to

test, launch and recover access to space technologies and services capabilities.

4. The Commission shall establish a Steering Board among European public entities,

including Member-States, the Agency established in accordance with Regulation

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(EU) [XXX] [future EUSPA founding Regulation] other relevant international

organisations and public entities to coordinate European activities in access to space.

5. In order to protect the security interests of the Union, the space assets of the

governmental infrastructure shall be launched by service providers, that comply with

the eligibility and participation conditions set out in Article 69 and, only in justified

exceptional circumstances or on a basis of an international agreement providing for

such activity, from the territory of a third country.

Article 66

Space commercialisation and space economy

1. CASSINI shall constitute the Union’s space entrepreneurship initiative. CASSINI

shall undertake actions to support the commercialisation of the Union space industry

and services, in particular focusing on entrepreneurship, and to leverage private

investment, supporting entrepreneurs to grow and scale in the Single Market

2. This component shall include the following eligible activities:

(a) creation of Union Investment facilities for seed, early growth, and growth-stage

private investment, and facilitating exits for founders and investors;

(b) creation of an Union industrial upscaling facility to enable investment into new

manufacturing facilities and reinforce Union-based supply chains;

(c) support to the development of the Union of skills targeted to the space sector,

including skills intelligence, space curricula development, upskilling, reskilling,

mobility and exchange programmes;

(d) strengthening the local space ecosystems bringing together different actors to

promote space innovation, provide support, facilities and services to citizens and

companies to foster entrepreneurship, notably through technology transfer, business

incubation business acceleration services, matchmaking and investor networking and

by enabling improved market access and international business networks;

(e) schemes to accelerate commercial growth through the use of anchor customer

contracts and schemes to onboard customers on both private and public sector

markets, involving space components and infrastructures as well as products using

space data and services.

(f) any additional action necessary to support the Union’s space economy and the

establishment of a Single Market for space.

Article 67

Technological sovereignty, research and innovation

1. The technological sovereignty and innovation component shall enable the Union to

build a competitive, autonomous, and innovative space industrial ecosystem, aiming

to enhance the Union’s technological sovereignty, non-dependence, and self-

sufficiency in the space sector. It shall foster the development and uptake of cutting-

edge space solutions. It shall prioritize the reduction of critical dependencies on non-

Union technologies and focus on dual-use technologies that can benefit both civil

and defence applications.

2. The component shall include the following eligible activities:

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(a) activities related to Union’s technological sovereignty, such as research,

development, and uptake of critical space technologies, including those directly

responding to the EU Observatory of Critical Technologies, (OTC) and

implementation of related OCT roadmaps that reduce Union dependencies and

enhance competitiveness of the Union space ecosystem;

(b) activities aiming at improving the timely availability of critical raw and advanced

materials, components and technologies for the sector, including through the

reduction of their delivery lead time, reservation of manufacturing slots or

stockpiling of products, intermediate products or raw materials;

(c) the research and development of new Union Space capabilities and related enabling

technologies fostering a new in-space economy, specifically through the maturation,

demonstration and operationalisation of In-Space Operations and Services, and

quantum sensing technologies;

(d) boosting Union industrial competitiveness in global commercial markets, including

through demonstrator missions advancing the degree of digitalisation of end-to-end

space systems;

(e) exploring and leveraging synergies with complementary domains such as defence

and other relevant sectors for key areas such as Artificial Intelligence and

cybersecurity;

(f) supporting standardisation and certification activities relevant for the Union space

sector;

(g) facilitating availability and access to testing and data processing facilities.

(h) promotion of Copernicus user uptake for Copernicus core users with, market

development and capacity building, including promotion of Copernicus data and

services, downstream applications and their development at all levels to maximise

socio-economic benefits, as well as the collection and analysis of Copernicus users’

needs.

Article 68

Access to services

1. Third countries and international organisations may have access to Secure

Connectivity services and EOGS subject to an agreement concluded in accordance

with Article 218 TFEU and pursuant to Article 11(3), laying down the terms and

conditions for access to those services, and on the condition that they comply with

Article 78.

2. Third countries and international organisations not having their headquarters in the

Member States may have access to secure sensitive SST services subject to an

agreement concluded, provided that they conclude an agreement, in accordance with

Article 218 TFEU, laying down the terms and conditions for access to those services

and comply with the security requirements referred to in Article 77.

3. The access of third countries and international organisations to the Public Regulated

Service (PRS) provided by Galileo shall be governed by Article 3(5) of Decision

No 1104/2011/EU of the European Parliament and of the Council. 

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4. By derogation to paragraph 2, no agreement concluded in accordance with Article

218 TFEU shall be required to access SST services relating to collision avoidance

and re-entry.

Article 69

Eligibility and participation conditions for the preservation of the security, integrity and

resilience of operational space systems of the Union

1. The Commission shall apply the eligibility and participation conditions set out in

paragraph 2 to the procurement, grants or prizes under this Title if it deems that this

is necessary and appropriate to preserve the security, integrity and resilience of the

operational Union systems, taking into account the objective to promote the Union's

strategic autonomy, in particular in terms of technology across key technologies and

value chains, while preserving an open economy.

2. Before applying the eligibility and participation conditions in accordance with

paragraph 1 the Commission shall inform the Committee referred to in Article 83,

paragraph 1, point (g) and shall take utmost account of the Member States’ views on

the scope of application of and the justification for those eligibility and participation

conditions.

3. The eligibility and participation conditions shall be as follows:

(a) the eligible legal entity is established in a Member State and its executive

management structures are established in that Member State;

(b) the eligible legal entity commits to carry out all relevant activities in one or more

Member States; and

(c) the eligible legal entity is not to be subject to control by a third country or by a third

country entity.

4. The Commission may set out, by means of implementing acts, the criteria

determining which ability to exercise a decisive influence over a legal entity,

directly, or indirectly through one or more intermediate legal entities may have an

impact on the security, integrity and resilience of the security, integrity and resilience

of the operational Union systems, taking into account the objective to promote the

Union's strategic autonomy, in particular in terms of technology across key

technologies and value chains.

5. The Commission may waive the conditions of paragraph 3, points (a) and (b) for a

particular legal entity upon evaluation based on the following cumulative criteria:

(a) for specific technologies, goods or services needed for the activities referred to in

paragraph 1 no substitutes are readily available in the Member States;

(b) the legal entity is established in a country which is a member of the EEA or EFTA

and which has concluded an international agreement with the Union as referred to in

Article 11, its executive management structures are established in that country and

the activities linked to the procurement, grant or prize are carried out in that country

or in one or more such countries; and

(c) sufficient measures are implemented to ensure the protection of EUCI under Article

78 and the integrity, security and resilience of the Programme’s components, their

operation and their services.

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6. By way of derogation from point (b) of the first subparagraph of this paragraph, the

Commission may waive the conditions under points (a) or (b) of the first

subparagraph of paragraph 2 for a legal entity established in a third country which is

not a member of the EEA or EFTA

7. The Commission may waive the condition under point (c) of paragraph 3 if the legal

entity established in a Member State provides the following guarantees:

(a) control over the legal entity is not exercised in a manner that restrains or restricts its

ability to:

(1) carry out the procurement, grant or prize; and

(2) deliver results, in particular through reporting obligations;

(b) the controlling third country or third country entity commits to refrain from

exercising any controlling rights over or imposing reporting obligations on the legal

entity in relation to the procurement, grant or prize; and

(c) the legal entity complies with Article 69.

8. The competent authorities of the Member State in which the legal entity is

established shall assess whether the legal entity complies with the criteria set out in

point (c) of paragraph 5 for waivers relative to condition (3)(b) and guarantees

referred to in paragraph 7. The Commission shall comply with that assessment.

9. The Commission shall provide the following to the Programme committee referred to

in Article 83, paragraph 1, point g:

(a) the scope of application of eligibility and participation conditions referred to in

paragraph 1 of this Article;

(b) details and justifications on the waivers granted in accordance with this Article; and;

(c) the evaluation that formed the basis for a waiver, subject to paragraphs 3 and 4 of

this Article, without divulging commercially sensitive information.

10. The conditions set out in paragraph 3, the criteria set out in paragraphs 4, 5 and 6

and the guarantees set out in paragraph 7 shall be included in the documents relating

to the procurement, grant or prize, as applicable, and, in the case of procurement,

they shall apply to the full life cycle of the resulting contract.

11. This Article is without prejudice to Decision No 1104/2011/EU and Commission

Delegated Decision of 15.9.2015 (43), Regulation (EU) 2019/452, Decision

2013/488/EU and Decision (EU, Euratom) 2015/444 and to the security vetting

carried out by Member States with regard to legal entities involved in activities

requiring access to EUCI subject to the applicable national laws and regulations.

12. If contracts resulting from the application of this Article are classified, eligibility and

participation conditions applied by the Commission in accordance with paragraph 1

shall be without prejudice to the competence of national security authorities.

13. This Article shall not interfere with, amend or contradict any existing Facility

Security Clearance and Personnel Security Clearance procedure within a Member

State.

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Article 70

Ownership of Union space assets and access to results

1. Except as provided under paragraph 2, the Union shall be the owner of all tangible

and intangible assets created, developed or purchased under direct or indirect

management in the implementation of activities supported under this section. To that

effect, the Commission shall ensure that relevant contracts, agreements and other

arrangements relating to the activities which may result in the creation or

development of such assets contain provisions ensuring the Union’s ownership.

2. Paragraph 1 shall not apply to the tangible and intangible assets created or developed

under direct or indirect management in the implementation of the activities supported

under this section:

(a) where Union support is provided in the form of grants, prizes or pre-commercial

procurement, or

(b) the activities are not fully financed by the Union, except as otherwise specified and

with the exclusion of IRIS², or

(c) the activities relate to PRS receivers developed by Member States.

3. In the conditions set in paragraph 2, Union institutions, bodies, offices or agencies

shall not acquire ownership but enjoy royalty-free access rights to results for own use

and the right to grant, or to require the recipients to grant, non-exclusive licences to

third parties to exploit the results under fair and reasonable conditions without any

right to sublicense.

4. The Union shall be entitled to conclude the relevant agreements in order to acquire

ownership of assets developed by third parties where such assets are necessary to the

fulfilment of the objectives laid down in Article 3.

5. The Commission shall ensure that the Union has the following rights:

(a) the right of use of the frequencies required for the transmission of the signals

generated by the governmental infrastructure of IRIS², the PNT components and the

EO components in accordance with the applicable laws and regulations and the

relevant licensing agreements, enabled by the relevant filings for the frequencies

provided by the Member States, which remain under the responsibility of the

Member States;

(b) the right to prioritise the provision of the IRIS² governmental services over

commercial services, in accordance with the terms and conditions to be established in

the contracts referred to in Article 61 and by taking into consideration the needs of

government-authorised users.

Article 71

Warranty and liability

1. Except if otherwise specified the services, data and information provided by the

components and activities under this section shall be without any express or implied

warranty as regards their quality, accuracy, availability, reliability, speed and

suitability for any purpose. The Union, including the Commission and the Agency

(EUSPA), shall not be liable.

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2. For SST, Member States participating in the SST sub-component shall not be held

liable for: damage resulting from the lack of or interruption in the provision of SST

services, delay in the provision of SST services; inaccuracy of the information

provided through the SST services or action undertaken in response to the provision

of SST services.

Article 72

Complementary procurement rules

1. While protecting the Union’s autonomy, the contracting authority may request that

the tenderer subcontracts part of the contract by competitive tendering at the

appropriate levels of subcontracting to companies other than those which belong to

the tenderer’s group. For contracts above EUR 10 million, the contracting authority

shall aim to ensure that at least 30 % of the value of the contract is subcontracted by

competitive tendering at various levels of subcontracting to companies outside the

group of the prime tenderer, in particular in order to enable the cross-border

participation of SMEs in the space ecosystem. The tenderer shall provide reasons for

not fulfilling a request made to sub-contract or for deviating from the 30% target.

The contracting authority may include specific requirements in the award procedure

documentation to ensure that prime contractors follow the principles of the

procurement set in this regulation during the execution of the contract, notably as

regards the involvement of SMEs and new entrants, competition, constant

benchmarking with the best market conditions.

2. The procurements relating to governmental services, service continuity or the

fulfilment of the objectives referred to in Article 3(2), point (d).3, notably as regards

security, shall be deemed to satisfy the condition of urgency established in point

11.1.c) of Annex I of the Financial Regulation.

Article 73

Complementary grant rules

1. The Union may cover up to 100 % of the eligible costs, without prejudice to the co-

financing principle.

2. By way of derogation from Article 184(6) of the Financial Regulation when applying

flat rates, the authorising officer responsible may authorise or impose funding of the

beneficiary’s indirect costs up to a maximum of 25 % of total eligible direct costs for

the action.

3. By way of derogation from Article 207 of the Financial Regulation, the maximum

amount of financial support that can be paid to a third party shall not exceed EUR

200 000.

4. The SST partnership shall be considered as the predefined beneficiary of the SST

grant.

Article 74

Complementary indirect management rules

1. A tripartite agreement in accordance with Article 131 of Regulation (EU, Euratom)

2024/2509 shall be concluded with both the Agency established in accordance with

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Regulation (EU) [XXX] [future EUSPA founding Regulation] and the European

Space Agency, subject to which [EUSPA] and the European Space Agency may be

entrusted with budget implementation tasks.

2. Whenever a Tender Evaluation Board is established by the Agency or ESA for a

procurement performed under the tripartite agreement, experts from the Commission

and, where relevant, from the other entrusted entity can reserve the right to

participate as members in the Tender Evaluation Board meetings, have access to all

deliverables and attend review meetings. Such participation shall not affect the

technical independence of the Tender Evaluation Board

3. By way of derogation from Article 62(1) of the Financial Regulation and subject to

the Commission’s assessment of the protection of the Union’s interests, tasks

entrusted under indirect management to the Agency, or its successors, may be further

entrusted by the Agency to bodies referred to in Article 62(1), point (c), of

Regulation (EU, Euratom) 2024/2509 under the conditions of indirect management

applying to the Commission.

4. Whenever procurement or grant activities are implemented via indirect management

by entrusted entities, communications activities, dissemination activities and any

infrastructure, equipment, vehicles, supplies or major result funded by the

procurement or grant must acknowledge the Union support and display the European

flag (emblem) and funding statement (translated into local languages, where

appropriate) in accordance with the Commission’ standard communication rules.

Article 75

Roles

1. The Member States shall take all the necessary measures to ensure the smooth

functioning of the actions supported under this section and may contribute with their

technical competence, know-how and assistance, in particular in the field of safety,

security, and frequency allocation. This contribution shall include, but not be limited

to, making available to the Union data, information, services and infrastructure in

their possession or located on their territory, that are necessary to the good

functioning of the actions. The Member States shall be responsible, at local level, for

the accreditation of the security of sites that are located within their territory and

form part of the security accreditation area for the components, notably Member

States participating in the SST Partnership shall perform security accreditation on the

basis of the general security requirements referred to in Article 77.

2. The Commission shall have overall responsibility for the implementation of the

components referred to in this Section, including in the field of security, without

prejudice to Member States’ prerogatives in the area of national security and

supervise their implementation.

3. The Commission shall

(a) manage any of the components or subcomponents not entrusted to another entity;

(b) determine the priorities and long-term evolution of those components, in line with

the user requirements, and shall supervise their implementation.

(c) determine and coordinate the international dimension of the components, to ensure

coherence with the Union policies for external action and a consistent approach

thereof.

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4. Where necessary to further define and specify the governance, security and provision

of services under this chapter, the Commission may, by means of implementing acts,

complement the catalogue of services provided and shall determine the technical and

operational requirements needed for the implementation of and evolution of the

components under this chapter and of the services they provide after having

consulted users and other stakeholders. When determining those technical and

operational requirements, the Commission shall avoid reducing the general security

level and shall meet backwards compatibility requirements. Those implementing acts

shall be adopted in accordance with Article 83, paragraph 2.

5. Where necessary, the Commission shall, by means of implementing acts, adopt

measures required to determine the location of the ground-based infrastructure

following an open and transparent process, ensuring sound financial management

and the protection of security and public order of the Union and its Member States.

Those implementing acts shall be adopted in accordance with Article 83,

paragraph 2.

6. The Agency shall have its own tasks and may be entrusted by the Commission with

other tasks in accordance with Regulation (EU) [XXX] [ EUSPA founding Reg].

7. Provided that the interests of the Union are protected, ESA may be entrusted with the

following tasks:

(a) as regards PNT: major systems evolution and design and development of parts of the

ground segment, and of satellites, including testing and validation;

(b) as regards Copernicus: i) coordination and implementation of the space component

and its evolution; ii) design, development and construction of the Copernicus space

infrastructure, including the operations of that infrastructure and related procurement,

except when those operations are done by other entities; iii) where appropriate,

provision of access to third-party data;

(c) as regards EOGS: design and development of new Earth-observation space missions

and parts of associated ground segment;

(d) as regards : (i) IRIS²: the supervision of the development, of the validation and of the

related deployment activities relating to the definition, design, development,

validation and deployment phases for the governmental services and of the

development and evolution necessary for the provision of governmental services,

ensuring coordination between the tasks and budget entrusted to ESA and possible

contribution by ESA, excluding pooling and sharing related actions referred to in

Article 47, paragraph 2, point a; (ii) the provision of its technical expertise, including

during the implementation of the components;

4. On the basis of an assessment by the Commission, ESA may be entrusted with other

tasks based on the needs of the activities under this section, provided that those tasks

do not duplicate activities performed by another entrusted entity and that they aim to

improve the efficiency of the implementation of the space window’s activities.

5. Provided that the interests of the Union are protected, the Commission may also

entrust, in full or in part, tasks to implement the components supported under this

section to relevant entities, such as the European Organisation for the Exploitation of

Meteorological Satellites, the European Environment Agency, the European Border

and Coast Guard Agency, the European Maritime Safety Agency, the European

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Union Satellite Centre, the European Centre for Medium-Range Weather Forecasts,

and [Mercator International Centre for the Ocean].

Article 76

Competent authorities

1. Where necessary for security sensitive components, such as Positioning Navigation

and Timing, Earth Observation, and Secure Connectivity, each participant to that

component appointed to supervise the access to services shall designate a competent

authority for each component. The competent authority shall ensure that:

(a) the use of the relevant services is in compliance with the general security

requirements referred to in Article 77;

(b) the access rights to the relevant services are determined and managed;

(c) user equipment necessary for the use of the relevant services and associated

electronic communication connections and information are used and managed in

accordance with the general security requirements referred to in Article 77;

(d) a central point of contact is established to assist as necessary in the reporting of

security risks and threats, in particular the detection of potentially harmful

electromagnetic interference affecting the services developed under the space policy

window.

2. By derogation to paragraph 1, the actions, tasks and functioning of PRS Competent

Authorities are referred to in Article 5 of Decision No 1104/2011/EU.

Article 77

Principles of governance and security

1. The principles of governance for the specific activities and components under this

section shall be based on the following:

(a) clear distribution of tasks and responsibilities between the entities involved in the

implementation, building on their respective competences and avoiding any overlaps

or duplications in tasks and responsibilities and thus ensuring clear accountability;

(b) relevance of the governance structure to the specific needs of each component and

measure as appropriate;

(c) strong control of the activities and components, including strict adherence to cost,

schedule and performance by all the entities, within their respective role and tasks;

(d) transparent and cost-efficient management;

(e) service continuity and necessary infrastructure continuity, including protection from

relevant threats;

(f) systematic and structured consideration of the needs of users of the data, information

and services provided by the [components], as well as of related scientific and

technological evolutions;

(g) constant efforts to control and reduce risks.

2. The principles of security or the specific activities and components under this section

shall be based on the following:

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(a) to take account of the experience of the Member States in the field of security and

draw inspiration from their best practices;

(b) to ensure the protection of the ground infrastructures which form an integral part of

the space policy window and which are located on their territory the Member States

shall take measures which are at least equivalent to those necessary for the protection

of European critical infrastructures within the meaning of Council Directive

2008/114/EC;

(c) to use the security rules of the Council and of the Commission, which provide, inter

alia, for a separation between operational functions and those associated with

accreditation;

(d) to consider the Commission as Originator of all classified information created by

entrusted entities as referred to in Article 68, paragraph 1;

(e) to ensure that the Security Accreditation Board established by Regulation (EU)

[XXX] [EUSPA founding Reg] performs its tasks without prejudice to the

responsibilities of the Commission or to those entrusted entities, and without

prejudice to the competences of the Member States as regards security accreditation;

(f) The security accreditation decisions, as well as the residual risks identified, shall be

communicated by the Commission to the Council for information. The Commission

may adopt any adequate measures in accordance with this Regulation;

(g) to establish a structure to coordinate the operations of the governmental services of

the different components with designated national competent authorities or national

entities for relevant component

3. The Commission shall ensure that a risk and threat analysis is performed for each

new component and maintained for the existing components. Based on that analysis,

it shall determine, by means of implementing acts, for each component, the general

security requirements. Those implementing acts shall be adopted in accordance with

the examination procedure referred to in Article 83, paragraph 3.

4. Whenever the security of the Union or its Member States may be affected by the

operation of the systems, the procedures set out in Decision (CFSP) 2021/698 shall

apply where relevant.

Article 78

Complementary rules on the protection of classified information

1. The exchange of classified information related to the components supported under

this sections hall be subject to the existence of an international agreement between

the Union and a third country or international organisation on the exchange of

classified information or, where applicable, an arrangement entered into by the

competent Union institution or body and the relevant authorities of a third country or

international organisation on the exchange of classified information, and to the

conditions laid down therein.

2. Natural persons resident in and legal persons established in third countries may deal

with EUCI regarding the space policy window’s only where they are subject, in those

third countries, to security regulations ensuring a degree of protection at least

equivalent to that provided by the Commission’s rules on security set out in Decision

(EU, Euratom) 2015/444 and by the security rules of the Council set out in the

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Annexes to Decision 2013/488/EU. The equivalence of the security regulations

applied in a third country or international organisation shall be defined in a security

of information agreement, including, if relevant, industrial security matters,

concluded between the Union and that third country or international organisation in

accordance with the procedure provided for in Article 218 TFEU and taking into

account Article 13 of Decision 2013/488/EU.

3. Without prejudice to Article 13 of Decision 2013/488/EU and to the rules governing

the field of industrial security as set out in Decision (EU, Euratom) 2015/444, a

natural person or legal person, third country or international organisation may be

given access to EUCI where deemed necessary on a case-by-case basis, according to

the nature and content of such information, the recipient’s need-to-know and the

degree of advantage to the Union.

SECTION 4

SUPPORT FOR SECURITY INDUSTRY POLICY

Article 79

Specific provisions for support to civil security industry policy

1. Actions supported under this section shall contribute to the general objectives set out

in Article 3(1) and the specific objectives set out in Article 3(2), point (f).

2. Support for actions under this section shall be financed from the budget set out in

Article 4(2), point (e), and any additional contributions assigned in accordance with

Article 6.

3. Actions shall be implemented in accordance with the general provisions set out in

Chapter I and any additional rules set out in this section.

Article 80

Specific activities to support civil security industry policy

1. Support for civil security industry policy shall address in particular the following

application areas:

(a) Security and resilience of critical civil infrastructures, in particular against hybrid

threats;

(b) Technologies, capabilities and solutions relevant for the prevention of and response

to crime, in particular terrorism and violent extremism, organised crime and cyber-

enabled crime

(c) Technologies, capabilities and solutions for the control of goods and persons at

borders, the protection of borders and logistical hubs, maritime security and

surveillance and customs security;

(d) Civil preparedness against security threats, whether natural or human-made,

accidental or intentional.

2. Support for civil security industrial policy shall be implemented in particular through

the following activities:

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(a) Research and innovation, scale-up, SME support, skills development, and

manufacturing actions;

(b) Testing and validation of technologies and solutions;

(c) Deployment and market uptake of technologies and solutions, in particular by

security practitioners;

(d) Support actions for the development, implementation, monitoring and enforcement

of relevant Union legislation and policy

3. Support provided through the activities referred to in paragraphs 1 and 2, may be

provided in any form, including through collaborative research and innovation

activities set out in Regulation (EU) [XXX][Framework Programme for Research

and Innovation] and identified in a specific dedicated part of the Work Programme.

4. Work programmes adopted in accordance with the rules of this Regulation under this

section shall integrate in a specific dedicated part and ensure coherence with

Competitiveness and Society activities supported under the Regulation (EU) [XXX]

[Horizon Europe Framework programme for Research and Innovation.

Article 81

Ownership of results

1. Where Union support is provided in the form of procurement, results shall be owned

by the Union.

2. Where Union support is provided in the form of a grant, Union institutions, bodies,

offices or agencies shall enjoy upon request royalty-free access rights to results for

the purpose of developing, implementing and monitoring existing Union policies or

programmes in the fields of its competence and the right to grant, or to require the

recipients to grant, non-exclusive licenses to third parties to exploit the results under

fair and reasonable conditions without any right to sublicense unless otherwise

specified in the grant agreement.

3. Any transfer of ownership of results, or the granting of exclusive licences for results,

generated with support to legal entities established in non-associated third countries

or to non-associated third-country entities shall be subject to prior notification and

approval by the Commission or the relevant Member State or associated country

authorities, which takes place within 3 years after the final payment of the action,

under conditions ensuring the protection of the Union’s security interests.

Article 82

Complementary grant rules

1. For activities supporting Coordination and Support Actions in the area of civil

security industry, the Union may cover up to 100 % of the eligible costs, without

prejudice to the co-financing principle.

2. By way of derogation from Article 184(6) of the Financial Regulation when applying

flat rates, the authorising officer responsible may authorise or impose funding of the

beneficiary’s indirect costs up to a maximum of 25 % of total eligible direct costs for

the action.

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Chapter VIII

Final Provisions

Article 83

Committee procedure

1. The Commission shall be assisted by a committee, which shall be the committee

within the meaning of Regulation (EU) No 182/2011, and may convene in the

following configurations:

(a) ECF General Committee, for matters concerning the general objectives or matters

concerning more than one of the specific objectives set out in Article 3(2);

(b) Clean Transition Committee for matters concerning specific objectives set out in

Article 3(2), point (a);

(c) Health, Biotech, Agriculture and Bioeconomy Committee for matters concerning

specific objectives set out in Article 3(2), point (b);

(d) Digital Committee for matters concerning specific objectives set out in Article 3(2),

point (c);

(e) Defence Industry Committee for matters concerning specific objectives set out in

Article 3(2), point (d)

(f) Resilience Committee for matters concerning specific objectives set out in Article 3

(2), point (d) ;

(g) Space Committee for matters concerning specific objectives set out in Article 3(2),

point (d), In accordance with its rules of procedure, the Space Committee may set up

sub-committees and working groups, such as the ‘User Forum’, to advise on user

requirements aspects, evolution of the services and user uptake.

(h) Security Industry Committee for matters concerning specific objectives set out in

Article 3(2), point (d).4.

2. Where reference is made to this paragraph, Article 4 of Regulation (EU) No

182/2011 shall apply and the opinion shall be requested from the configuration of the

committee most concerned.

3. Where reference is made to this paragraph, Article 5 of Regulation (EU) No

182/2011 shall apply and the opinion shall be requested from the configuration of the

committee most concerned.

4. Where reference is made to this paragraph, Article 8 of Regulation (EU) No

182/2011, in conjunction with Article 5 thereof, shall apply.

5. Where the opinion of the committee is to be obtained by written procedure, that

procedure shall be terminated without result when, within the time-limit for delivery

of the opinion, the chair of the committee so decides or a simple majority of

committee members so request.

6. The Committees in points b) through h) of paragraph 1 may convene in different

configurations or sub-committees aligned with the specific components of the policy

windows.

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7. In accordance with international agreements concluded by the Union, representatives

of third countries, international organisations or other European Union institutions,

bodies and agencies may be invited as observers in the meetings of the committee

configurations under the conditions laid down in their rules of procedure, taking into

account security and public order interests of the Union. Representatives of third

countries or international organisations shall not be present in deliberations on

matters related to eligibility, including deliberations related to Articles 9 and 10 of

this Regulation.

8. The EDA shall be invited to provide its views and expertise to the defence industry

committee as an observer. The EEAS shall also be invited to assist in the work of the

defence industry committee.

Article 84

Exercise of the delegation

1. The power to adopt delegated acts is conferred on the Commission subject to the

conditions laid down in this Article.

2. The power to adopt delegated acts referred to in this Regulation shall be conferred on

the Commission for the period from the date of enter into force of this Regulation

until 31 December 2035.

3. The delegation of power referred to in this Regulation may be revoked at any time by

the European Parliament or by the Council. A decision to revoke shall put an end to

the delegation of power specified in that decision. It shall take effect the day

following the publication of the decision in the Official Journal of the European

Union or at a later date specified therein. It shall not affect the validity of any

delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by

each Member State in accordance with the principles laid down in the

Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to

the European Parliament and to the Council.

6. A delegated act adopted pursuant to this Regulation shall enter into force only if no

objection has been expressed either by the European Parliament or by the Council

within a period of two months of notification of that act to the European Parliament

and the Council or if, before the expiry of that period, the European Parliament and

the Council have both informed the Commission that they will not object. That

period shall be extended by two months at the initiative of the European Parliament

or of the Council.

Article 85

Amendments to Regulation (EU) 2021/696

1. Titles I, II and III, Articles 26, 27, 28, 30, 31, 32, 33, , 43, Titles VI, VII, VIII and X

of Regulation (EU) 2021/696 shall be repealed with effect from 1 January 2028.

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Article 86

Amendments to Regulation (EU) 2023/588

2. Chapters I, II, III, IV, Articles 24, 25, 26, 28, and 29, Titles VII, VIII, IX and X of

Regulation (EU) 2023/588 shall be repealed with effect from 1 January 2028.

Article 87

Amendments to Regulation [EDIP]

3. Chapters I, II, with the exception of the provisions related to the Ukraine Support

Instrument [to be confirmed after adoption of EDIP], and V of Regulation (EU)

[EDIP] shall be repealed [with effect from 1 January 2028].

Article 88

Repeal

4. The following regulations are repealed with effect from 1 January 2028:

(a) Regulation (EU) 2021/522 of the European Parliament and of the Council of 24

March 2021 establishing a Programme for the Union’s action in the field of health

(‘EU4Health Programme’) for the period 2021-2027, and repealing Regulation (EU)

No 282/2014;

(b) Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April

2021 establishing the Digital Europe Programme and repealing Decision (EU)

2015/2240;

(c) Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April

2021 establishing the European Defence Fund and repealing Regulation (EU)

2018/1092;

(d) Regulation (EU) 2021/783 of the European Parliament and of the Council of 29 April

2021 establishing a Programme for the Environment and Climate Action (LIFE), and

repealing Regulation (EU) No 1293/2013.

Article 89

Transitional provisions

1. This Regulation shall not affect the continuation or modification of actions initiated

pursuant to the basic acts referred to in Article 85, which shall continue to apply to

those actions until their closure.

2. This Regulation shall not affect the implementing acts adopted under the Space

Programme Regulation (EU) No. 2021/696 and IRIS² Regulation (EU) 2023/588.

These acts shall remain in force, if relevant, until modified on the basis of this

Regulation, and with the exception of decisions taken pursuant to Article 36(4) of

Regulation (EU) 2023/588.

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3. The financial envelope referred to in paragraph 1 of Article 4 may also cover the

technical and administrative assistance expenses necessary to ensure the transition

between the ECF and the measures adopted pursuant to the basic acts referred to in

the first paragraph.

Article 90

Entry into force

1. This Regulation shall enter into force on the day following that of its publication in

the Official Journal of the European Union.

2. It shall apply from 1 January 2028.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament For the Council

The President The President

EN 1 EN

LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT

1. FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 3

1.1. Title of the proposal/initiative ...................................................................................... 3

1.2. Policy area(s) concerned .............................................................................................. 3

1.3. Objective(s) .................................................................................................................. 3

1.3.1. General objective(s) ..................................................................................................... 3

1.3.2. Specific objective(s) ..................................................................................................... 3

1.3.3. Expected result(s) and impact ...................................................................................... 3

1.3.4. Indicators of performance ............................................................................................ 3

1.4. The proposal/initiative relates to: ................................................................................. 4

1.5. Grounds for the proposal/initiative .............................................................................. 4

1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for

roll-out of the implementation of the initiative ............................................................ 4

1.5.2. Added value of EU involvement (it may result from different factors, e.g.

coordination gains, legal certainty, greater effectiveness or complementarities). For

the purposes of this section 'added value of EU involvement' is the value resulting

from EU action, that is additional to the value that would have been otherwise

created by Member States alone. ................................................................................. 4

1.5.3. Lessons learned from similar experiences in the past .................................................. 4

1.5.4. Compatibility with the multiannual financial framework and possible synergies with

other appropriate instruments ....................................................................................... 5

1.5.5. Assessment of the different available financing options, including scope for

redeployment ................................................................................................................ 5

1.6. Duration of the proposal/initiative and of its financial impact .................................... 6

1.7. Method(s) of budget implementation planned ............................................................. 6

2. MANAGEMENT MEASURES................................................................................... 8

2.1. Monitoring and reporting rules .................................................................................... 8

2.2. Management and control system(s) ............................................................................. 8

2.2.1. Justification of the budget implementation method(s), the funding implementation

mechanism(s), the payment modalities and the control strategy proposed .................. 8

2.2.2. Information concerning the risks identified and the internal control system(s) set up

to mitigate them............................................................................................................ 8

2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio between

the control costs and the value of the related funds managed), and assessment of the

expected levels of risk of error (at payment & at closure) ........................................... 8

2.3. Measures to prevent fraud and irregularities ................................................................ 9

3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE ............ 10

3.1. Heading(s) of the multiannual financial framework and expenditure budget line(s)

affected ....................................................................................................................... 10

EN 2 EN

3.2. Estimated financial impact of the proposal on appropriations ................................... 12

3.2.1. Summary of estimated impact on operational appropriations.................................... 12

3.2.1.1. Appropriations from voted budget ............................................................................. 12

3.2.1.2. Appropriations from external assigned revenues ....................................................... 17

3.2.2. Estimated output funded from operational appropriations......................................... 22

3.2.3. Summary of estimated impact on administrative appropriations ............................... 24

3.2.3.1. Appropriations from voted budget .............................................................................. 24

3.2.3.2. Appropriations from external assigned revenues ....................................................... 24

3.2.3.3. Total appropriations ................................................................................................... 24

3.2.4. Estimated requirements of human resources.............................................................. 25

3.2.4.1. Financed from voted budget....................................................................................... 25

3.2.4.2. Financed from external assigned revenues ................................................................ 26

3.2.4.3. Total requirements of human resources ..................................................................... 26

3.2.5. Overview of estimated impact on digital technology-related investments ................ 28

3.2.6. Compatibility with the current multiannual financial framework.............................. 28

3.2.7. Third-party contributions ........................................................................................... 28

3.3. Estimated impact on revenue ..................................................................................... 29

4. DIGITAL DIMENSIONS .......................................................................................... 29

4.1. Requirements of digital relevance .............................................................................. 30

4.2. Data ............................................................................................................................ 30

4.3. Digital solutions ......................................................................................................... 31

4.4. Interoperability assessment ........................................................................................ 31

4.5. Measures to support digital implementation .............................................................. 32

EN 3 EN

1. FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1. Title of the proposal/initiative

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing the European Competitiveness Fund ('ECF)', including specific

programme on defence research and innovation referred to in Article 182(3) TFEU

specific programme

1.2. Policy area(s) concerned

European competitiveness

Clean Transition and Industrial Decarbonisation

Health, Biotech and Bioeconomy

Digital Leadership

Resilience and Security, Defence Industry and Space

1.3. Objective(s)

1.3.1. General objective(s)

General Objective 1 - Establish an investment capacity to support European

competitiveness in strategic technologies and sectors, including innovation,

decarbonisation, and resilience, through a more seamless investment journey from

fundamental research, applied research to deployment and manufacturing.

General Objective 2 - Leverage the funding tools of the EU Budget to unlock private,

institutional and national investment in support of strategic technologies and sectors,

including for research and innovation, in the EU. 

1.3.2. Specific objective(s)

Specific Objective 1 - Promote public and private investments throughout the whole

investment journey, notably R&I, and better leverage the de-risking potential of the

EU budget to maximise its EU added value

Specific Objective 2 - Facilitate access to funding from EU programmes through

user-centric, faster, simplified and harmonised procedures and improve coherence

among EU instruments and with Member States investments

Specific Objective 3 - Steer and focus investments towards EU strategic sectors and

technologies, including underlying value chains, critical infrastructures, capabilities

and skills, and in support of decarbonisation, health, biotech, agriculture and

bioeconomy as well as digital, security and resilience, defence industry and space.

1.3.3. Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

Economic Impacts

– Macro-Economic Return: Expected to contribute to GDP growth via

accelerated investment spending and process simplification.

EN 4 EN

– Efficiency and Productivity: Expected to reduce administrative costs and

integrate access points, streamlining processes for high-growth industries and

start-ups.

– Simplified Funding Environment: Lower costs, reduction in search time,

proposal preparation time, time-to-inform and time-to-grant proposals facilitate

easier fund access, potentially boosting success rates.

– SME Support: The consolidation into a single fund would likely be

advantageous for SMEs as they typically lack the resources to navigate

complex, fragmented systems. Moreover, the strategic focus on disruptive

innovation could offer SMEs new opportunities in high-growth areas.

– Market Competitiveness: The fund aims to boost the competitiveness of

European companies, including SMEs and start-ups, by making funding more

accessible and strategically aligned. This initiative supports European strategic

autonomy by decreasing reliance on foreign supply chains and reducing

dependencies on external actors, thus enhancing EU companies' market

position both domestically and globally. Additionally, it seeks to better connect

research with market development and align research priorities with industrial

needs, all while maintaining a bottom-up approach for fundamental research.

– Research and innovation: Predictability would remain for R&I funding, same

as today, in line with Treaty obligations. At the same time, consolidation into

one Fund covering the whole investment journey can facilitate the market

uptake of research results and better articulate applied research with industrial

priorities.

Social Impacts

– Employment and Skills: Larger investment volumes are expected to boost

employment. The fund will integrate skills, education, and training initiatives

into a unified framework, aligning with industry needs in strategic sectors like

clean tech and AI. This approach will promote targeted investments in

reskilling and upskilling, enhancing synergies among education, research, and

business, and enabling rapid adaptation to emerging trends.

– Regional Development: Strategic regions might see substantial growth,

attracting investment and entrepreneurship.

– Health Sector Improvements: Streamlined mechanisms would aim to reduce

administrative burdens and speed crisis response.

Environmental Impacts

– Decarbonisation Priority: Focus on decarbonisation and clean tech aligns

with EU's climate neutrality target for 2050, potentially enhancing climate

positive impacts.

– Investment Uncertainty: High uncertainty in clean tech investment calls for a

careful balance between predictability and flexibility to achieve positive

environmental outcomes.

1.3.4. Indicators of performance

Specify the indicators for monitoring progress and achievements.

EN 5 EN

This initiative will be monitored through the performance framework for the 2028-

2034 MFF, which is covered in a separate proposal. This proposal establishes the

rules for the performance framework for the budget, including rules for the

evaluation of the programmes.

1.4. The proposal/initiative relates to:

 a new action

 a new action following a pilot project / preparatory action44

 the extension of an existing action

 a merger or redirection of one or more actions towards another/a new action

1.5. Grounds for the proposal/initiative

1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for

roll-out of the implementation of the initiative

The EU is facing a competitiveness gap with other global players. Not only US and

China are leading in critical sectors and key innovation clusters, but these economies

also leverage significantly greater financial support for R&I, deployment, and scale

up. For this reason, the response to regain competitiveness needs to be coordinated at

EU level to be truly effective, underscoring the urgent need to establish a dedicated

fund to address this imbalance and ensure the EU's long-term economic resilience

and growth.

1.5.2. Added value of EU involvement (it may result from different factors, e.g.

coordination gains, legal certainty, greater effectiveness or complementarities). For

the purposes of this section 'added value of EU involvement' is the value resulting

from EU action, that is additional to the value that would have been otherwise

created by Member States alone.

Reasons for action at EU level (ex-ante)

Pooling resources at the EU level can maximise the impact and added value of

investment on the ground, and lead to economies of scale in investment initiatives,

making them more cost effective than if each Member State acted independently.

Underinvestment by the private sector remains a persistent challenge in the EU,

affecting a broad spectrum of investment types—including infrastructure, innovation,

green and digital transitions, and industrial capacity. This underinvestment is

exacerbated by fragmented capital markets, which hinder the efficient allocation of

savings to productive investment opportunities across borders. The fragmentation of

financial markets limits cross-border capital flows, reduces scale, and increases risk

for investors, particularly affecting SMEs and strategic sectors.

As the Draghi report points out, the EU is currently lagging in various areas,

including technological development, research and innovation performance, market

dynamism, and industrial capacity. EU-level action is necessary to support the type

and scale of projects that would otherwise not be possible if Member States acted

alone.

44 As referred to in Article 58(2), point (a) or (b) of the Financial Regulation.

EN 6 EN

EU support creates critical mass for large projects and partnerships to produce more

impact and deliver on pan-European societal needs, whilst leveraging more private

and public investment. Lastly, collaboration - fostering knowledge spillovers and

risk-sharing opportunities - is an important element in advancing competitiveness.

An EU-wide solution would foster economies of scale and cooperation across

stakeholders, which are vital to enhance knowledge valorisation and improve

organisational and technical capacities.

EU funding fosters extensive collaboration across stakeholders and borders, reducing

fragmentation of resources and efforts and facilitating knowledge transfer between

stakeholders and sectors, from fundamental research to businesses. EU funding

breaks down national barriers and forms networks creating critical mass to address

challenges like climate neutrality, biodiversity loss, pollution, digital transformation,

security, or preparedness that single Member States cannot tackle alone.

EU funding addresses market failures and suboptimal investment conditions, such as

green-premium investments and large infrastructure projects where social returns

outweigh private returns. By mitigating investment risks and incentivising

stakeholder engagement, EU funding supports economically beneficial projects that

might not succeed otherwise. It enhances economic resilience, leverages private

funds, attracts capital, and boosts productivity across the EU, driving GDP growth

and fostering long-term stability.

Coordinated funding ensures that resources address shared challenges and helps in

fostering partnerships with the private sector, aligning political and industrial

priorities. This collective approach supports breakthrough innovations and strategic

goals, overcoming coordination limitations among Member States.

Expected generated EU added value (ex-post)

The ECF will offer a comprehensive set of policy measures to overcome current

deficiencies in the EU's funding landscape related to competitiveness. It would

establish a unified investment capacity to support strategic sectors and technologies,

facilitating a seamless investment journey from research to deployment on EU-level

and strengthen EU’s investment capacity and leverage tool. The ECF would simplify

and harmonize application rules and requirements, introducing a unified rulebook for

applicants. This would reduce complexity, eliminate overlaps, and allow the EU to

fully harness its potential to mobilize private capital and increase budgetary

flexibility. The new fund would also strengthen connections between research,

innovation manufacturing and deployment, ensuring a dynamic economic structure

within the EU - with the objective to promote Europe's resilience and leadership in

the era of global innovation.

1.5.3. Lessons learned from similar experiences in the past

The consolidation of multiple financial instruments into the single InvestEU

framework in 2020 provided valuable lessons that will be leveraged in designing the

new fund. The experience showed that fragmentation and the multiplicity of rules

and procedures under previous MFFs created inefficiencies and overlaps, both in

policy objectives and financial operations. The move to a single programme with a

strong identity, a single authorising officer, and a unified set of coherent

requirements for eligibility, monitoring, and reporting helped streamline governance

and implementation. These lessons underline the benefits of a harmonised and

EN 7 EN

simplified framework, which will guide the development of the new fund to ensure

greater efficiency, transparency, and impact across the financing chain.

1.5.4. Compatibility with the multiannual financial framework and possible synergies with

other appropriate instruments

The ECF aims to simplify and improve EU funding by consolidating 12 existing

programmes into one fund, while ensuring tight connection wiht the Framework

Programme for Research and Innovation and coherence with the Innovation Fund.

Thanks to this consolidation, there will be a limited number of EU programmes to

synergize with. The Competitiveness Coordination tool will ensure synergies with

nationally and regionally pre-allocated envelopes. Synergies are expected with the

Global Europe Fund on aspects concerning the competitiveness of EU industries and

companies in third countries (i.e. accession countries, emerging markets and

developing economies.)

1.5.5. Assessment of the different available financing options, including scope for

redeployment

When implementing the budget, the ECF should provide the full toolbox of Union

funding and ensure synergies between its supported policies, in particular by

allowing for simplified common award procedures to pursue its objectives of more

than one policy. Funding should focus on the achievement of policy objectives. As

such, the elimination of burdensome financial reporting through the widest possible

use of financing not linked to cost should be pursued as a major simplification

measure.

EN 8 EN

1.6. Duration of the proposal/initiative and of its financial impact

 limited duration

– in effect from 01/01/2028 to 31/12/2034

–  financial impact from 2028 to 2034 for commitment appropriations and from

2028 to 2040 for payment appropriations.

 unlimited duration

– Implementation with a start-up period from YYYY to YYYY,

– followed by full-scale operation.

1.7. Method(s) of budget implementation planned

 Direct management by the Commission

–  by its departments, including by its staff in the Union delegations;

–  by the executive agencies

 Shared management with the Member States

 Indirect management by entrusting budget implementation tasks to:

–  third countries or the bodies they have designated

–  international organisations and their agencies (to be specified)

–  the European Investment Bank and the European Investment Fund

–  bodies referred to in Articles 70 and 71 of the Financial Regulation

–  public law bodies

–  bodies governed by private law with a public service mission to the extent that

they are provided with adequate financial guarantees

–  bodies governed by the private law of a Member State that are entrusted with

the implementation of a public-private partnership and that are provided with

adequate financial guarantees

–  bodies or persons entrusted with the implementation of specific actions in the

common foreign and security policy pursuant to Title V of the Treaty on

European Union, and identified in the relevant basic act

– bodies established in a Member State, governed by the private law of a Member

State or Union law and eligible to be entrusted, in accordance with sector-specific

rules, with the implementation of Union funds or budgetary guarantees, to the

extent that such bodies are controlled by public law bodies or by bodies governed

by private law with a public service mission, and are provided with adequate

financial guarantees in the form of joint and several liability by the controlling

bodies or equivalent financial guarantees and which may be, for each action,

limited to the maximum amount of the Union support.

Comments

The ECF should be implemented in direct and indirect management. The designated mode of

implementation should reflect the identified needs for directionality, flexibility and efficiency,

required to meet the objectives of the ECF.

EN 9 EN

In all cases, ECF funding should be provided in the form best fitted to achieve its objectives,

while limiting administrative burden for recipients to the absolute minimum.

EN 10 EN

2. MANAGEMENT MEASURES

2.1. Monitoring and reporting rules

The impact of the ECF overall will be assessed through its evaluation. An

implementation report will be published by the Commission no later than four years

after the start of the programme’s implementation, in order to assess the progress

made towards the achievement of their objectives. A retrospective evaluation will be

carried out by the Commission at the latest three years after the end of the

programming period of the programme with a view to assessing the effectiveness,

efficiency, relevance, coherence and Union added value of the programme.

The ECF entrusted entities shall report to the Commission on a regular basis in line

with this regulation, the Performance Framework and the Financial Regulation.

The Commission will monitor the performance of the ECF implementation, both in

direct and indirect management. For direct management, the Commission will apply

the rules and procedures set out in Chapter 3 of the Financial Regulation. For indirect

management, entrusted entities shall apply their rules and procedures, which have

been assessed in accordance with Article 157 of the Financial Regulation to meet the

requirements laid down therein.

2.2. Management and control system(s)

2.2.1. Justification of the budget implementation method(s), the funding implementation

mechanism(s), the payment modalities and the control strategy proposed

To support competitiveness both direct and indirect management actions are

necessary. The Fund’s comprehensive architecture will allow it to accompany

European projects along the entire investment journey, from research and

development, to demonstration, and market uptake of technologies, services and

solutions. It will be able to flexibly mobilise the entire financial toolbox provided by

the Financial Regulation, including grants, financial instruments and procurement.

The Fund is also providing simplified rules accelerating time to grant and reducing

administrative burden.

The ECF will be implemented in direct management through grants to European

projects and directly or indirectly through the ECF InvestEU Instrument. The ECF

Project Advisory and cross-cutting SME support activities will be implemented

through indirect or direct management depending on the nature of the assistance.

The ECF InvestEU Instrument will be mostly implemented in indirect management

through entrusted entities, which as a rule also contribute to the support to be

provided to final recipients. Direct managment modes will also be considered,

depending on the needs to achieve policy objectives.

The Commission shall conclude the guarantee agreements and/or contribution

agreeemnets with the entrusted entities. If a guarantee agreement was already signed

with an implementing partner under InvestEU Regulation, the Commission may

decide to amend such agreement to include the additional EU contribution from ECF.

The entrusted entities will consist of the EIB Group, international financial

institutions, national promotional banks and institutions and other financial

intermediaries which are Union bodies, regulated and/or under banking sector

EN 11 EN

supervision. Support funded by the Union will be carried out by the entrusted

entities, in accordance with their rules and procedures.

The entrusted entities shall provide annual audited financial statements, management

declarations and summaries of audits and controls to the Commission, in accordance

with Article 158 the Financial Regulation.

2.2.2. Information concerning the risks identified and the internal control system(s) set up

to mitigate them

The main risks of the ECF are:

Reputational risk for the Commission, in case of fraud, criminal or illegal activities;

Risk of inefficient use of EU funds, in case of European projects with no or very

limited EU added value;

Financial risk, in case of amounts unduly paid by the Commission to grant

beneficiaries, entrusted entities or amounts due to the Commission, to be recovered

to the EU budget..

The internal control framework to address these risks is built on the implementation

of the Commission's Internal Control Principles and more specfically on:

the ex ante pillar assessments of entrusted entities; moreover, since entrusted entities

as a rule bear part of the risk, the interest of the Union and of the entrusted entity are

accordingly aligned which mitigates the risk to the budget;

the financing and investment operations in the context of the ECF InvestEU

Instrument are carried out according to the entrusted entities’ own rules of procedure

and sound banking practice. The selected entrusted entities and the Commission

enter into a guarantee or contribution agreement laying down the detailed provisions

and procedures relating to the implementation.

the procedures for the selection of projects supported with the EU funds, directly by

the Commission or indirectly by entrusted entities;

a specific governance structure will be put in place to grant the use of the EU

guarantee (i.e. Investment Committee).

the reporting and monitoring carried out by entrusted entities, including audited

financial statements, management declarations and summaries of audits and controls;

ex post audits by external auditors, the Internal Audit Service or the European Court

of Auditors and controls carried out by the Commission, including through reporting

and monitoring; and

the ECF evaluations including the mid-term implementation report and the ex post

evaluation.

2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio between

the control costs and the value of the related funds managed), and assessment of the

expected levels of risk of error (at payment & at closure)

A cost-effective internal control system will be ensured by the responsible

authorising officer with the aim to maintain the expected levels of risk of error (at

payment and at closure) below the materiality threshold of 2%.

Ex-post audits and controls put in place by the Commission as well as, for indirect

management, reporting, summary of audits and controls and management

EN 12 EN

declarations submitted by entrusted entities, will provide a fair and reliable

representation of the risk of error and at effectively and efficiently examining

indications of fraud.

Furthermore, for grants, the ex-ante checks of proposals before the signature of the

grant agreements and clarification of eligibility rules should also contribute to

mitigating risks and to the cost-effectiveness of controls.

For financing and investment operations and advisory assignments, the ex-ante

checks conducted by the Commission and the entrusted entities together with the

clarification of eligibility rules should also contribute to mitigating risks and to the

cost-effectiveness of controls.

Costs in relation to the controls carried out will arise for the EU budget in relation to

the Commission’s internal controls. In addition, costs may also arise through

management fees due to the entrusted entities in relation to their internal controls.

2.3. Measures to prevent fraud and irregularities

For both direct and indirect management, the Commission shall take appropriate

measures ensuring that the financial interests of the European Union are protected by

the application of preventive measures against fraud, corruption and any other illegal

activities, by effective checks and, if irregularities are detected, by the recovery of

the amounts wrongly paid and, where appropriate, by effective, proportional and

deterrent penalties.

The Commission or its representatives and the Court of Auditors shall have the

power of audit, on the basis of documents and on-the-spot, over all grant

beneficiaries, entrusted entities, financial intermediaries and final recipients, who

have received Union support.

OLAF shall be authorised to carry out on-the-spot checks and inspections on

economic operators concerned directly or indirectly by such financial support.

In this context, the Commission will implement several measures such as:

- decisions, agreements and contracts regarding the implementation of the ECF will

expressly entitle the Commission, including OLAF, and the Court of Auditors to

conduct audits, on-the-spot checks and inspections;

- applicants, tenderers as well as financial intermediaries and final recipients will be

checked against the published exclusion criteria and the Early Detection and

Exclusion System (EDES); and

- the rules governing the eligibility of costs and of financial support will be

monitored.

EN 13 EN

3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1. Heading(s) of the multiannual financial framework and expenditure budget

line(s) affected

New budget lines requested

In order of multiannual financial framework headings and budget lines.

Heading of multiannual financial framework

Budget line

Type

of

expen

diture

Contribution

Number

Diff./

Non-

diff.

from

EFT

A

coun

tries

from

candi

date

count

ries

and

poten

tial

candi

dates

from

other

third

coun

tries

other

assigned

revenue

2 04.01.01 - Support

expenditure for European

Competitiveness Fund

Non

-

diff.

YE

S YES

YE

S YES/

2 04.02.01 - Clean transition

and industrial decarbonisation

Diff.

. YE

S YES

YE

S YES

2 04.02.02 – Health, Biotech

Agriculture and Bioeconomy

Diff.

. YE

S YES

YE

S YES

2 04.02.03 - Digital Leadership Diff.

. YE

S YES

YE

S YES

2 04.02.04 – Resilience and

Security, Defence Industry

and Space

Diff.

. YE

S YES

YE

S YES

2 04.02.05 –Project Advisory

and Cross-cutting Actions Diff.

. YE

S YES

YE

S YES

2 04.02.06 – Contribution to

ECF InvestEU Instrument Diff.

. YE

S YES

YE

S YES

EN 14 EN

3.2. Estimated financial impact of the proposal on appropriations

3.2.1. Summary of estimated impact on operational appropriations

 The proposal/initiative does not require the use of operational appropriations

The proposal/initiative requires the use of operational appropriations, as explained below

3.2.1.1. Appropriations from voted budget

EUR billion (to three decimal places)

Heading of multiannual financial framework Number 2

DG Year Year Year Year Year Year Year TOTAL MFF 2028-

2034 2028 2029 2030 2031 2032 2033 2034

Operational appropriations

04.02.01 – Clean transition and Industrial

decarbonisation

Commitments (1a) 2,954 3,516 3,586 3,919 3,997 4,077 4,159 26,210

Payments (2a) pm pm pm pm pm pm pm pm

04.02.02 – Health, Biotech Agriculture and

Bioeconomy

Commitments (1b) 2,318 2,702 2,764 3,049 3,117 3,186 3,256 20,393

Payments (2b) pm pm pm pm pm pm pm pm

04.02.03 – Digital Leadership Commitments (1a) 5,833 6,857 7,004 7,701 7,865 8,032 8,202 51,493

Payments (2a) pm pm pm pm pm pm pm pm

04.02.04 – Resilience and Security, Defence Industry

and Space

Commitments (1a) 14,162 16,713 17,063 18,723 19,114 19,513 19,920 125,204

Payments (2a) pm pm pm pm pm pm pm pm

04.02.05 – Project Advisory and Cross-cutting Actions Commitments (1a) 143 143 142 143 143 143 143 1,000

Payments (2a) pm pm pm pm pm pm pm pm

04.02.06 – Contribution to ECF InvestEU Instrument Commitments (1a) 1,000 1,500 1,500 1,500 1,500 1,500 1,500 10,000

Payments (2a) pm pm pm pm pm pm pm pm

EN 15 EN

Appropriations of an administrative nature financed from the envelope of specific programmesions of an administrative nature financed from the envelope of

specific programmes45

04.01.01 – Support expenditure for European

Competitiveness Fund -3 pm pm pm pm pm pm pm pm

TOTAL appropriations

for DG

Commitments =1a+1b+3 26,410 31,431 32,059 35,053 35,736 36,451 37,180 234,300

Payments =2a+2b+3 pm pm pm pm pm pm pm pm

Optional: if more than one DG is involved in the proposal, please fill in the below tables; if not, please delete them.

DG: <…….> Year Year Year Year Year Year Year TOTAL

MFF

2028-2034 2028 2029 2030 2031 2032 2033 2034

Operational appropriations

Budget line

Commitmen

ts (1a)

0

Payments (2a) 0

Budget line

Commitmen

ts (1b)

0

Payments (2b) 0

Appropriations of an administrative nature financed from the envelope of specific programmesions of an administrative nature financed from the envelope of

specific programmes

Budget line -3 0

TOTAL appropriations Commitmen

ts =1a+1b+3 0 0 0 0 0

0 0 0

for DG <…….> Payments =2a+2b+3 0 0 0 0 0 0 0 0

45 Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research,

direct research.

EN 16 EN

Year Year Year Year Year Year Year TOTAL

MFF 2028-

2034 2028 2029 2030 2031 2032 2033 2034

TOTAL operational

appropriations

Commitments -4 0 0 0 0 0 0 0 0

Payments -5 0 0 0 0 0 0 0 0

TOTAL appropriations of an

administrative nature financed from the

envelope for specific programmes

-6 0 0 0 0 0 0 0 0

TOTAL

appropriations

under HEADING

<….>

Commitments 10 0 0 0 0 0 0 0 0

of the multiannual

financial framework Payments 11 0 0 0 0 0 0 0 0

====================================================================================================

Heading of multiannual financial framework 4 ‘Administrative

expenditure’46

DG: <…….> Year Year Year Year Year Year Year

TOTAL

MFF

2028-

2034 2028 2029 2030 2031 2032 2033 2034

 Human resources 0 0 0 0 0 0 0 0

46

EN 17 EN

 Other administrative expenditure 0 0 0 0 0 0 0 0

TOTAL DG

<…….> Appropriations 0 0 0 0 0 0 0 0

TOTAL appropriations under HEADING 4 of the

multiannual financial framework

(Total

commitments =

Total payments) 0 0 0 0 0 0 0 0

EUR million (to three decimal places)

Year Year Year Year Year Year Year TOTAL

MFF 2028-

2034 2028 2029 2030 2031 2032 2033 2034

TOTAL

appropriations under

HEADINGS 1 to 4

Commitments 0 0 0 0 0 0 0 0

of the multiannual

financial framework Payments 0 0 0 0 0 0 0 0

=================================================================================================

Optional: if the proposal is partly or fully financed from external assigned revenues, fill in the table in Section 3.2.1.2. If not, please delete the

whole section.

3.2.1.2. Appropriations from external assigned revenues

EUR million (to three decimal places)

Heading of multiannual financial framework Number

EN 18 EN

DG: <…….>

Y

e

a

r

Year Year Yea

r

Yea

r

Yea

r

Yea

r

TO

TA

L

MF

F

2028

-

2034

2

0

2

8

2029 2030 203

1

203

2

203

3

203

4

Operational appropriations

Budget line Commitments (1a) 0

Payments (2a) 0

Budget line Commitments (1b) 0

Payments (2b) 0

Appropriations of an administrative nature financed from the envelope of specific programmesions of an administrative nature financed from the envelope of

specific programmes47

Budget line -3 0

TOTAL appropriations Commitments =1a+1b+3 0 0 0 0 0 0 0 0

for DG <…….> Payments =2a+2b+3 0 0 0 0 0 0 0 0

================================================================================================

Mandatory table:

Year Year Year Year Year Year Year

TOTAL

MFF 2028-

2034

2028 2029 2030 2031 2032 2033 2034

TOTAL operational appropriations Commitments -4 0 0 0 0 0 0 0 0

Payments -5 0 0 0 0 0 0 0 0

47 Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

EN 19 EN

TOTAL appropriations of an

administrative nature financed from the

envelope for specific programmes

-6 0 0 0 0 0 0 0 0

TOTAL appropriations under

HEADING <….> Commitments 10 0 0 0 0 0 0 0 0

of the multiannual financial framework Payments 11 0 0 0 0 0 0 0 0

====================================================================================================

Mandatory table

Year Year Year Year Year Year Year TOTAL

MFF 2028-

2034 2028 2029 2030 2031 2032 2033 2034

TOTAL operational

appropriations

Commitments -4 0 0 0 0 0 0 0 0

Payments -5 0 0 0 0 0 0 0 0

TOTAL appropriations of an

administrative nature financed from the

envelope for specific programmes

-6 0 0 0 0 0 0 0 0

TOTAL

appropriations

under HEADING

<….>

Commitments 10 0 0 0 0 0 0 0 0

of the multiannual

financial framework Payments 11 0 0 0 0 0 0 0 0

Year Year Year Year Year Year Year TOTAL

MFF

2028-2034 2028 2029 2030 2031 2032 2033 2034

• TOTAL

operational

appropriations (all

operational headings)

Commitments -4 0 0 0 0 0 0 0 0

Payments -5 0 0 0 0 0 0 0 0

EN 20 EN

• TOTAL appropriations of an

administrative nature financed from

the envelope for specific programmes

(all operational headings)

-6 0 0 0 0 0 0 0 0

TOTAL

appropriations

under Headings 1

to 3

Commitments 10 0 0 0 0 0 0 0 0

of the multiannual

financial framework

(Reference amount)

Payments 11 0 0 0 0 0 0 0 0

Heading of multiannual financial framework 4 ‘Administrative expenditure’48

EUR million (to three decimal places)

European Competitiveness Fund Year Year Year Year Year Year Year TOTAL

MFF

2028-2034 2028 2029 2030 2031 2032 2033 2034

 Human resources 164,911 164,911 164,911 164,911 164,911 164,911 164,911 1154,377

 Other administrative expenditure 11,00 11,00 11,00 11,00 11,00 11,00 11,00 77,00

TOTAL Appropriations 175,911 175,911 175,911 175,911 175,911 175,911 175,911 1231,377

48 The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage.

EN 21 EN

TOTAL appropriations under HEADING 4 of

the multiannual financial framework

(Total

commitments =

Total payments)

175,911 175,911 175,911 175,911 175,911 175,911 175,911 1231,377

EUR million (to three decimal places)

Year Year Year Year Year Year Year TOTAL

MFF 2028-

2034 2028 2029 2030 2031 2032 2033 2034

TOTAL

appropriations under

HEADINGS 1 to 4

Commitments 0 0 0 0 0 0 0 0

of the multiannual

financial framework Payments 0 0 0 0 0 0 0 0

3.2.2. Estimated output funded from operational appropriations (not to be completed for decentralised agencies)

Commitment appropriations in EUR million (to three decimal places)

Indicate

objectives and

outputs



Year 2028

Year 2029

Year 2030

Year 2031

Enter as many years as necessary to show the

duration of the impact (see Section1.6) TOTAL

OUTPUTS

Type 49

Avera

ge

cost

N o

Cost N o

Cost N o

Cost N o

Cost N o

Cost N o

Cost N o

Cost Total

No

Total

cost

SPECIFIC OBJECTIVE No 1 50

…

49 Outputs are products and services to be supplied (e.g. number of student exchanges financed, number of km of roads built, etc.). 50 As described in Section 1.3.2. ‘Specific objective(s)’

EN 22 EN

- Output

- Output

- Output

Subtotal for specific objective No 1

SPECIFIC OBJECTIVE No 2 ...

- Output

Subtotal for specific objective No 2

TOTALS

EN 23 EN

3.2.3. Summary of estimated impact on administrative appropriations

 The proposal/initiative does not require the use of appropriations of an administrative

nature

 The proposal/initiative requires the use of appropriations of an administrative nature,

as explained below

3.2.3.1. Appropriations from voted budget

VOTED APPROPRIATIONS Year Year Year Year Year Year Year TOTAL

2028 -

2034 2028 2029 2030 2031 2032 2033 2034

HEADING 4

Human resources 164,911 164,911 164,911 164,911 164,911 164,911 164,911 1154,377

Other administrative expenditure 11,000 11,000 11,000 11,000 11,000 11,000 11,000 77,000

Subtotal HEADING 4 175,911 175,911 175,911 175,911 175,911 175,911 175,911 1231,377

Outside HEADING 4

Human resources p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m.

Other expenditure of an administrative

nature p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m.

Subtotal outside HEADING 4 p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m.

TOTAL p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m.

3.2.3.2. Appropriations from external assigned revenues

EXTERNAL ASSIGNED

REVENUES

Year Year Year Year Year Year Year TOTAL

2028 -

2034 2028 2029 2030 2031 2032 2033 2034

HEADING 4

Human resources 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Subtotal HEADING 4 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Outside HEADING 4

Human resources 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Other expenditure of an administrative nature

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Subtotal outside HEADING 4 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

TOTAL 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

3.2.3.3. Total appropriations

TOTAL VOTED

APPROPRIATIONS +

EXTERNAL ASSIGNED

REVENUES

Year Year Year Year Year Year Year TOTAL

2028 -

2034 2028 2029 2030 2031 2032 2033 2034

HEADING 4

Human resources 164,911 164,911 164,911 164,911 164,911 164,911 164,911 1154,377

Other administrative expenditure 11,000 11,000 11,000 11,000 11,000 11,000 11,000 77,000

Subtotal HEADING 4 175,911 175,911 175,911 175,911 175,911 175,911 175,911 1231,377

Outside HEADING 4

Human resources 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

EN 24 EN

Other expenditure of an administrative

nature 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Subtotal outside HEADING 4 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

TOTAL 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

3.2.4. Estimated requirements of human resources

 The proposal/initiative does not require the use of human resources

 The proposal/initiative requires the use of human resources, as explained below

3.2.4.1. Financed from voted budget

Estimate to be expressed in full-time equivalent units (FTEs) 51

VOTED APPROPRIATIONS Year Year Year Year Year Year Year

2028 2029 2030 2031 2032 2033 2034

 Establishment plan posts (officials and temporary staff)

20 01 02 01 (Headquarters and

Commission’s Representation Offices)

824 824 824 824 824 824 824

20 01 02 03 (EU Delegations) 0 0 0 0 0 0 0

04 01 01 11 (Indirect research) 45 45 45 45 45 45 45

Direct research 0 0 0 0 0 0 0

Other budget lines (specify) 0 0 0 0 0 0 0

• External staff (inFTEs)

20 02 01 (AC, END from the ‘global envelope’)

99 99 99 99 99 99 99

20 02 03 (AC, AL, END and JPD in the EU Delegations)

0 0 0 0 0 0 0

Admin. Support line

- at Headquarters

168 168 168 168 168 168 168

[XX.01.YY.YY] - in EU

Delegations 0 0 0 0 0 0 0

04 01 01 12 (AC, END - Indirect

research) 25 25 25 25 25 25 25

AC, END - Direct research 0 0 0 0 0 0 0

Other budget lines (specify) - Heading 7

0 0 0 0 0 0 0

Other budget lines (specify) - Outside Heading 7

0 0 0 0 0 0 0

TOTAL 1161 1161 1161 1161 1161 1161 1161

3.2.4.2. Financed from external assigned revenues

EXTERNAL ASSIGNED REVENUES Year Year Year Year Year Year Year

2028 2029 2030 2031 2032 2033 2034

 Establishment plan posts (officials and temporary staff)

51 Please specify below the table how many FTEs within the number indicated are already assigned to the

management of the action and/or can be redeployed within your DG and what are your net needs.

EN 25 EN

20 01 02 01 (Headquarters and

Commission’s Representation

Offices)

0 0 0 0 0 0 0

20 01 02 03 (EU Delegations) 0 0 0 0 0 0 0

04 01 01 11 (Indirect research) 0 0 0 0 0 0 0

Direct research 0 0 0 0 0 0 0

Other budget lines (specify) 0 0 0 0 0 0 0

• External staff (in full time equivalent units)

20 02 01 (AC, END from the ‘global envelope’)

0 0 0 0 0 0 0

20 02 03 (AC, AL, END and JPD in the EU Delegations)

0 0 0 0 0 0 0

Admin. Support line

- at Headquarters

0 0 0 0 0 0 0

[XX.01.YY.YY] - in EU

Delegations 0 0 0 0 0 0 0

04 01 01 12 (AC, END -

Indirect research) 0 0 0 0 0 0 0

AC, END - Direct research 0 0 0 0 0 0 0

Other budget lines (specify) - Heading 7

0 0 0 0 0 0 0

Other budget lines (specify) - Outside Heading 7

0 0 0 0 0 0 0

TOTAL 0 0 0 0 0 0 0

3.2.4.3. Total requirements of human resources

TOTAL VOTED

APPROPRIATIONS +

EXTERNAL ASSIGNED

REVENUES

Year Year Year Year Year Year Year

2028 2029 2030 2031 2032 2033 2034

 Establishment plan posts (officials and temporary staff)

20 01 02 01 (Headquarters and

Commission’s Representation

Offices)

824 824 824 824 824 824 824

20 01 02 03 (EU Delegations) 0 0 0 0 0 0 0

04 01 01 11 (Indirect research) 45 45 45 45 45 45 45

Direct research 0 0 0 0 0 0 0

Other budget lines (specify) 0 0 0 0 0 0 0

• External staff (in FTEs)

20 02 01 (AC, END from the ‘global envelope’)

99 99 99 99 99 99 99

20 02 03 (AC, AL, END and JPD

in the EU Delegations) 0 0 0 0 0 0 0

Admin. Support

line

-At

Headquarters 168 168 168 168 168 168 168

[XX.01.YY.YY] -In

Delegations 0 0 0 0 0 0 0

04 01 01 12 (AC, END - Indirect research)

25 25 25 25 25 25 25

AC, END - Direct research 0 0 0 0 0 0 0

EN 26 EN

Other budget lines (specify) -

Heading 7 0 0 0 0 0 0 0

Other budget lines (specify) - Outside Heading 7

0 0 0 0 0 0 0

TOTAL 1161 1161 1161 1161 1161 1161 1161

The staff required to implement the proposal (in FTEs):

To be covered by

current staff

available in the

Commission

services

Additional staff

To be financed

under Heading 7 or

Research

To be financed

from BA line

To be financed

from fees

Establishment

plan posts

739 130 N/A

External staff

(CA, SNEs, INT)

247 10 35

Description of tasks to be carried out by:

Officials and temporary staff Governance and internal and external coordination for the implementation

of the ECF

Implementation of budget under all the ECF policy windows

Implementation of the ECF InvestEU Instrument

Implementation of Project Advisory and Cross-cutting Actions

External staff Governance and internal and external coordination for the implementation

of the ECF

Implementation of budget under all the ECF policy windows

Implementation of the ECF InvestEU Instrument

Implementation of Project Advisory and Cross-cutting Actions

3.2.5. Overview of estimated impact on digital technology-related investments

Compulsory: the best estimate of the digital technology-related investments entailed by the

proposal/initiative should be included in the table below.

Exceptionally, when required for the implementation of the proposal/initiative, the

appropriations under Heading 4 should be presented in the designated line.

The appropriations under Headings 1-4 should be reflected as “Policy IT expenditure on

operational programmes”. This expenditure refers to the operational budget to be used to re-

use/ buy/ develop IT platforms/ tools directly linked to the implementation of the initiative

and their associated investments (e.g. licences, studies, data storage etc). The information

provided in this table should be consistent with details presented under Section 4 “Digital

dimensions”.

EN 27 EN

TOTAL Digital

and IT

appropriations

Year Year Year Year Year Year Year TOTAL

MFF

2028 -

2034 2028 2029 2030 2031 2032 2033 2034

HEADING 4

IT expenditure (corporate)

9520200

9520200 9520200 9520200 9520200 9520200 9520200

66641400

Subtotal

HEADING 4 9520200

9520200 9520200 9520200 9520200 9520200 9520200 66641400

Outside HEADING 4

Policy IT expenditure on operational programmes

1447250

1447250 1447250 1447250 1447250 1447250 1447250 10130750

Subtotal outside

HEADING 4 1447250

1447250 1447250 1447250 1447250 1447250 1447250 10130750

TOTAL 10967450 10967450 10967450 10967450 10967450 10967450 10967450 76772150

3.2.6. Compatibility with the current multiannual financial framework

The proposal/initiative:

 can be fully financed through redeployment within the relevant heading of the

multiannual financial framework (MFF)

 requires use of the unallocated margin under the relevant heading of the MFF and/or

use of the special instruments as defined in the MFF Regulation

 requires a revision of the MFF

3.2.7. Third-party contributions

The proposal/initiative:

 does not provide for co-financing by third parties

 provides for the co-financing by third parties estimated below:

Appropriations in EUR million (to three decimal places)

Year Year Year Year Year Year Year Total

2028 2029 2030 2031 2032 2033 2034

Specify the co-

financing body

TOTAL

appropriations

co-financed

EN 28 EN

3.3. Estimated impact on revenue

 The proposal/initiative has no financial impact on revenue.

 The proposal/initiative has the following financial impact:

 on own resources

 on other revenue

 please indicate, if the revenue is assigned to expenditure lines

EUR million (to three decimal places)

Budget revenue line:

Appropriations

available for

the current

financial year

Impact of the proposal/initiative 52

Year

2028

Year

2029

Year

2030

Year

2031

Year

2032

Year

2033

Year

2034

Article ………….

For assigned revenue, specify the budget expenditure line(s) affected.

[…]

Other remarks (e.g. method/formula used for calculating the impact on revenue or any other

information).

[…]

4. DIGITAL DIMENSIONS

4.1. Requirements of digital relevance

• The proposal is assessed as having digital relevance since it will produce new

data series. However, it will build on the digital framework of the InvestEU

Programme Regulation, in particular regarding the InvestEU Management

Information System, which will be adapted to cater for the ECF

implementation, notably on the exchange of data with entrusted entities

(implementing and advisory partners), with the Investment Committee members

and with other Commission services.

4.2. Data

• The exchange of data between the Commission and entrusted entities will be

based on the requirements set out in the relevant agreements. It will include

operational, financial and risk data, which will be provided on a regular basis

(e.g. periodical reports) as well as on ad hoc basis (e.g. for the submission of

operations by entrusted entities).

• The exchange of data with Investment Committee members will be limited to

operations submitted by entrusted entities to the Investment Committee.

52 As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net

amounts, i.e. gross amounts after deduction of 20% for collection costs.

EN 29 EN

4.3. Digital solutions

4.4. Interoperability assessment

4.5. Measures to support digital implementation

• The existing InvestEU Management Information System will be adapted and

used for the ECF InvestEU Instrument and the Project Advisory

implementation.

• The InvestEU Management Information System will be used for the ECF and

will keep its interoperability features, in particular with the following

Commission IT tools: Secunda+, Ares, Decide and the Corporate Notification

System.

• The IT project for the adaptation of the InvestEU Management Information

System for the ECF will be developed and implemented in the Commission and

should involve the key users of the system (Commission users, implementing

and advisory partner users as well as the Investment Committee members).