On the proposal for a regulation of the European Parliament and of the Council 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]
REGI-AD-782321
Committee on Regional Development · Rapporteur: Dan Barna
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The Committee on Regional Development gives its opinion on the proposed European Competitiveness Fund regulation, which would fund strategic technologies, defence research and innovation and repeal several existing programmes.¶¶ It proposes amendments to add a territorial dimension: a 'do no harm to cohesion' principle, balanced geographical distribution of funding, and support for less developed, transition, rural, outermost and eastern border regions.¶¶¶ The amendments define 'place-based innovation', give local and regional authorities a role in governance, and require work programmes to align with National and Regional Partnership Plans and smart specialisation strategies.¶¶¶ They add support for SMEs in less developed and transition regions, critical infrastructure linking less connected regions to the Single Market, and just transition support for coal, peat and carbon-intensive regions.¶¶¶ They also add new windows and objectives on urban innovation, security and defence infrastructure, strategic storage, water management, agriculture and a European agricultural reinsurance guarantee mechanism.¶¶¶ The opinion proposes a dual-track allocation: 60% of core industry support on a competitive basis and 40% for geographically balanced actions, with monitoring and a scoreboard on geographical participation.¶¶¶
Committee position. The Committee on Regional Development welcomes the Commission proposal and proposes amendments to integrate a strong territorial dimension, ensuring fair geographical distribution, synergies with regional strategies, and support for less developed, transition, rural, outermost and eastern border regions.¶¶¶
Key points
- The Fund should respect the 'do no harm to cohesion' principle and avoid concentrating investments in already performing economic ecosystems.¶¶¶
- A definition of 'place-based innovation' is introduced, and local and regional authorities should be involved in governance such as the Stakeholders Board.¶¶¶
- Work programmes should ensure synergies with National and Regional Partnership Plans and smart specialisation strategies to prevent duplication.¶¶¶
- Specific support is proposed for SMEs in less developed and transition regions, with simplified procedures and technical assistance.¶¶¶
- Critical infrastructure linking less connected regions to the Single Market should be prioritised, including energy, transport, digital and water infrastructure.¶¶
- Just transition support should continue for workers and communities in coal, peat and carbon-intensive regions, in coherence with territorial just transition plans.¶¶¶
- A new 'Urban Innovation' window and a specific objective on the territorial dimension of competitiveness are added, implemented through competitive calls for city-anchored consortia.¶¶
- Eastern border regions should receive targeted support, including a financing bonus for consortia with a company from those regions and priority for defence infrastructure such as the Eastern Shield and Baltic Defence Line.¶¶¶
- The Fund should support strategic storage capacities for essential goods including food, and critical energy and fuel infrastructure.¶¶¶
- A European agricultural reinsurance guarantee mechanism should be established to complement national insurance schemes and strengthen farmers' income stability.¶¶
- The allocation of the financial envelope should be structured as 60% for competitive award procedures based primarily on excellence and 40% for geographically balanced actions.¶¶
- The Commission should monitor geographical distribution, publish an annual scoreboard and introduce balancing measures where significant disparities emerge.¶¶¶
Who is affected
- Less developed, transition, rural, outermost and eastern border regions, which would receive dedicated support and balanced funding.¶¶¶
- SMEs, start-ups and small mid-cap companies, especially in less developed and transition regions, with simplified access and advisory support.¶¶¶
- Local and regional authorities, which would be involved in governance, consultations and project implementation.¶¶¶
- Coal, peat and carbon-intensive regions, which would continue to receive just transition support.¶¶¶
- The agricultural sector, which would benefit from a reinsurance guarantee mechanism and support for water resilience.¶¶
Figures and deadlines
- EUR 20 393 000 000 for the specific objectives referred to in Article 3(2), point (b).¶
- 60% of the resources allocated through competitive award procedures based primarily on excellence criteria.¶¶
- 40% of the resources allocated to geographically balanced actions.
- Co-financing rates for the Outermost Regions should not be lower than 85%.¶¶
- Work programmes preferably adopted every three years in a multi-annual format.¶
- SMEs make up more than 99% of all businesses in the Union and provide two thirds of jobs.¶
- The term of members of the ECF Strategic Stakeholder Board limited to four years, renewable once.¶
Legal basis: Article 43(2), Article 168(5), Article 172, Article 173(3), Article 175, Article 182(4), Article 183, Article 188, Article 189(2), Article 192(1), Article 194(2), Article 212(2), Article 322(1) and Article 349 of the Treaty on the Functioning of the European Union.¶