On the 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]
ECON-AD-784470
Committee on Economic and Monetary Affairs · Rapporteur: Danuše Nerudová
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The Committee on Economic and Monetary Affairs proposes amendments to the proposed regulation establishing the European Competitiveness Fund (ECF), including its defence research and innovation programme. It adds an SME chapter and SME-specific objectives, and requires at least 20% of each policy window's allocation to be reserved for SMEs.¶¶¶ It renames the digital window 'Digital Leadership and Skills', adds a new objective on balanced distribution of opportunities across the Union, and requires the Commission to support first-time and less experienced applicants.¶¶¶ It sets a minimum financial envelope for 2028-2034 and a minimum distribution across objectives, with a new allocation for SME support of at least 25% of each policy window's envelope, 20% of which goes to start-ups.¶¶¶ It raises the maximum budgetary guarantee under the EU Compartment of the ECF InvestEU Instrument to EUR 120 000 000 000, provisioned at 50%, and the minimum Union support delivered through that instrument to EUR 69 000 000 000.¶¶ It creates a Competitiveness Coordination Tool, a Strategic Stakeholders Board, an Investment Committee and an Advisory Board, and requires the Commission to report annually to Parliament on the ECF's implementation.¶¶¶ It adds rules on transparency of the Competitiveness Seal, on prioritising repayable instruments and budgetary guarantees, and on access to funding through a single online portal and cascade funding for SMEs.¶¶¶
Committee position. The Committee on Economic and Monetary Affairs proposes amendments to the Commission proposal, adding an SME chapter and SME-specific objectives, raising the budgetary guarantee and minimum Union support, creating new governance bodies, and strengthening rules on transparency, repayable instruments and access to funding for SMEs.¶¶¶
Key points
- Adds an SME chapter under each policy window, including start-ups, contributing to new specific objectives on SME and start-up competitiveness and scaling up.¶¶
- Requires at least 20% of each policy window's total financial allocation to be reserved exclusively for SMEs, with targeted calls if the share falls below 20% over two years.¶
- Sets the minimum financial envelope for the ECF for 1 January 2028 to 31 December 2034 at an amount from the MFF interim report, and a minimum distribution across objectives.¶¶
- Allocates at least 25% of each policy window's financial envelope to SME support via the ECF InvestEU Instrument, with 20% of that amount for start-ups.¶
- Raises the maximum budgetary guarantee under the EU Compartment of the ECF InvestEU Instrument to EUR 120 000 000 000, provisioned at 50%, and the minimum Union support through that instrument to EUR 69 000 000 000.¶¶
- Requires 75% of the budgetary guarantee under the EU Compartment to be granted to the EIB Group, while allowing other pillar-assessed entities and private-law bodies to implement instruments.¶¶
- Establishes a Competitiveness Coordination Tool with an Executive Director, twelve Vice Directors, Member State observers and seven Members of the European Parliament as observers.¶
- Creates a Strategic Stakeholders Board, an independent Investment Committee with five configurations, an Advisory Board, and a Scoreboard for assessing guarantee requests.¶¶¶
- Requires the Commission to inform Parliament regularly and to provide an annual report on ECF implementation, including disbursements and supported projects.¶
- Requires the Commission to support first-time and less experienced applicants, monitor geographical distribution of funding, and set minimum indicative thresholds for start-ups and first-time applicants.¶¶
- Requires the Competitiveness Seal to be awarded on objective, transparent and predefined criteria, with publication of awarded actions and criteria, and to help reduce regional innovation gaps.¶¶¶
- Prioritises repayable instruments and budgetary guarantees over non-repayable grants to maximise private capital leverage, and requires a single online portal and cascade funding for SMEs.¶¶¶
Who is affected
- SMEs, start-ups and scale-ups: get reserved funding, simplified procedures, technical assistance and a single online portal.¶¶¶
- First-time and less experienced applicants: receive administrative support and minimum indicative funding thresholds.¶¶
- The EIB Group: must receive 75% of the budgetary guarantee under the EU Compartment.¶
- Member States and regional authorities: may make additional contributions and must ensure implementing partners are reachable by companies.¶¶
- The Commission: must report annually to Parliament, monitor geographical distribution and adopt delegated acts on Investment Guidelines.¶¶¶
Figures and deadlines
- EUR 120 000 000 000: maximum budgetary guarantee under the EU Compartment of the ECF InvestEU Instrument.¶
- 50%: provisioning rate for the budgetary guarantee.
- EUR 69 000 000 000: minimum Union support delivered through the ECF InvestEU Instrument.¶
- At least 25% of each policy window's financial envelope for SME support, 20% of which for start-ups.¶
- At least 20% of each policy window's total financial allocation reserved exclusively for SMEs.¶
- 30% of the budget allocated to the SME policy window for start-ups and first-time applicants.¶
- 75% of the budgetary guarantee under the EU Compartment to be granted to the EIB Group.¶
- Up to 15%: how far the Commission may depart from the amounts in Article 4(2) for each objective.¶