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]
IMCO-AD-782506
Committee on the Internal Market and Consumer Protection · Rapporteur: Regina Doherty
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The Committee on the Internal Market and Consumer Protection proposes amendments to the proposed regulation establishing the European Competitiveness Fund (ECF), including its defence research and innovation programme.¶¶ The amendments define competitiveness and European added value, and require funding to be awarded on excellence, quality and impact through open competition.¶¶¶ They strengthen SME provisions: simpler procedures, advisory support, a Startup Gateway, a fast-track procedure and a single portal.¶¶¶ They require the ECF to crowd in private capital, deepen the Single Market, support digital leadership and reduce high-risk dependencies in a targeted way.¶¶¶ They add reporting duties, safeguards for accelerated interventions and rules on eligibility conditions and the Competitiveness Seal.¶¶¶
Committee position. The committee proposes amendments to make the ECF simpler, more focused and more effective: defining competitiveness and European added value, strengthening SME access and procedures, crowding in private capital, deepening the Single Market and taking a targeted approach to resilience.¶¶¶
Key points
- Defines 'competitiveness' as increased innovation and productivity responding to market demand, better product and service quality and improved price ratio, with high-quality jobs and consumer welfare.¶¶
- Defines 'European added value' by reference to the internal market, cross-border effects, economies of scale, reduced strategic dependencies and benefits for consumers and SMEs.¶
- States the ECF is not a cohesion policy instrument and should support projects through open competition on excellence, European added value and scaling capacity.¶
- Requires projects to be selected through open, transparent and competitive procedures on objective, excellence-based and market-based criteria, and bars funding that would significantly distort the internal market.¶
- Requires the Commission to ensure entities from all Member States have effective access, with technical assistance and indicative thresholds for first-time and less experienced applicants.
- Requires work programmes to describe in a dedicated part how they support micro-companies and SMEs, including their digitalisation, and to reduce administrative barriers.¶¶¶
- Requires a fast-track SME procedure with time from submission to grant agreement not exceeding 60 calendar days for SME-only calls, and a one-stop-shop portal and standardised application form.¶
- Requires a single portal applying the 'once-only' principle, integrated with European Digital Identity Wallets and European Business Wallets, and annual publication of key performance indicators.¶¶
- Requires a 'Startup Gateway' entry point within the single portal, aggregating funding opportunities, advisory services and investor matchmaking, and supporting portability of company information.¶¶
- Requires the Commission to publish an annual report to Parliament and the Council, including the share of ECF funding awarded to SMEs per window and average time-to-grant for SME proposals.¶
- Allows targeted eligibility conditions, including participation, transfer, supply and control restrictions, to protect Union strategic and economic security interests, with fair access for SMEs across all Member States.¶¶¶
- Requires accelerated interventions for 'EU Tech Frontrunners' and SME actions to be subject to safeguards ensuring transparency, accountability and equal access, and not to exclude eligible actors.¶
Who is affected
- Small and medium-sized enterprises, micro-companies, start-ups and scale-ups: simpler procedures, advisory support, a Startup Gateway and a fast-track procedure.¶¶¶
- The Commission: must publish annual reports, monitor access indicators and ensure effective access for entities from all Member States.¶¶¶
- Member States: may make shared-management resources available to the ECF and may support projects awarded a Competitiveness Seal.¶¶
- Recipients of ECF funding: may face participation, transfer, supply and control restrictions to protect Union interests.¶¶¶
- Third-country start-ups and innovators: eligibility requirements may be temporarily waived under an inducement intervention to allow relocation into the Single Market.¶
Figures and deadlines
- 44%: effective tariff between Member States for the manufacturing sector cited in the amended recital.¶
- 110%: effective tariff between Member States for the services sector cited in the amended recital.
- 13%: share of businesses that had ever taken part in an EU-funded programme.¶
- 20.6%: share of Single Market procedures fully online for cross-border procedures, per the 2026 Single Market report.¶
- 5 calendar years: period after the end of an action during which transfer restrictions apply to recipients.¶
- 60 calendar days: maximum time from submission to grant agreement for SME-only calls under the fast-track procedure.¶
- 100 days: maximum time-to-grant from closure of the call for 'EU Tech Frontrunners' and dedicated SME actions.¶
- 60 days: deadline to inform applicants of the evaluation outcome after closure of the call.