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-PA-782506
Committee on the Internal Market and Consumer Protection · Rapporteur: Regina Doherty
Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.
This is the Internal Market and Consumer Protection Committee's draft opinion on the proposed regulation establishing the European Competitiveness Fund (ECF), including a defence research and innovation programme.¶¶ The rapporteur proposes amendments to define competitiveness, target funding on excellence, impact and quality, and prevent crowding out of private capital.¶¶¶ The amendments strengthen SME provisions through simpler procedures, advisory support, a fast-track procedure and dedicated work programme parts.¶¶¶ They also add rules on digital leadership, strategic dependencies, capital markets integration, cross-border infrastructure and skills.¶¶¶
Committee position. The rapporteur proposes amendments to make the ECF simpler, more focused and more effective, strengthening SME provisions, the Single Market, digital leadership and private capital mobilisation, while keeping safeguards targeted and proportionate.¶¶
Key points
- Defines competitiveness as increased innovation and productivity responding to market demand, better product and service quality and an improved price ratio.¶¶
- Sets the ECF's general objective as increasing European economic competitiveness on the basis of excellence, impact and quality.¶
- Requires ECF support to address market failures and suboptimal investment situations by crowding in private capital and institutional investors without crowding out other private investors.¶
- Adds a specific objective of funding the Digital Single Market through digital skills, innovation, resilience, data-sharing frameworks and cyber-security.¶
- Requires work programmes to describe in a dedicated part how they support SMEs and to reduce administrative barriers to applying for or drawing down ECF funding.¶¶
- Allows SME application design options including a one-stop-shop portal, a standardised form, a fast-track procedure with a 60-calendar-day limit and bonus scoring.¶
- Requires award criteria to be founded on excellence, impact and quality and to consider whether a proposal was supported by an SME.¶
- Allows eligibility conditions such as participation, transfer, supply and control restrictions as a last resort to protect Union strategic and economic security interests.¶¶¶
- Requires the ECF Strategic Stakeholder Board to include industry stakeholders and SME representatives in shaping priorities, designing calls and overseeing implementation.¶¶¶
- Requires centralised advisory and business acceleration services, including investment advice, business coaching, matchmaking with private investors and financial literacy support.¶¶¶
- Establishes the 'EU for Business' Network to enhance consultation, learning and collaboration with European SMEs and facilitate information exchange and feedback.¶¶¶
- Requires the Commission to publish an annual report on the share of ECF funding awarded to SMEs under each window and average time-to-grant for SME proposals.¶
Who is affected
- Small and medium enterprises, start-ups and scale-ups, which gain simpler procedures, advisory support and dedicated funding actions.¶¶¶
- Businesses operating across borders in the Single Market, which the ECF should help to access funding, information and administrative support.¶¶
- Private investors and institutional investors, which the ECF should crowd in without crowding out.¶¶¶
- Member States, which may support seal-awarded projects or provide additional resources to the ECF.¶
- Recipients of ECF funding, who may face participation, transfer, supply and control restrictions as a last resort.¶¶¶
Figures and deadlines
- 44% effective tariff for the manufacturing sector from the incomplete Single Market.¶
- 110% effective tariff for the services sector from the incomplete Single Market.
- Only 13% of businesses had ever taken part in an EU-funded programme.¶
- Transfer restrictions apply during or within 5 calendar years after the end of an action.¶
- Fast-track SME procedure: time from submission to grant agreement shall not exceed 60 calendar days for SME-only calls.¶
- Bonus scoring for proposals led by an SME or where SMEs account for more than 50% of consortium members.
- Final evaluation and requests for supporting documents shall be conducted within three months of the signature of the legal commitment.¶
- Board members' term limited to four years, renewable once.¶