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DRAFT OPINION (COM(2025)0555 – C100165/2025 – 2025/0555(COD))

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

REGI-PA-782321

Committee on Regional Development · Rapporteur: Dan Barna

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The Committee on Regional Development's draft opinion responds to the Commission's proposal for a regulation establishing the European Competitiveness Fund, including a specific programme for defence research and innovation. It proposes amendments to add a territorial dimension, defining place-based innovation and requiring local and regional authorities in governance. The amendments require the Fund to respect the 'do no harm to cohesion' principle, ensure balanced geographical distribution of funds, and dedicate a meaningful share to less developed and transition regions. They also require synergies with National and Regional Partnership Plans and smart specialisation strategies. The amendments establish specific support for SMEs in less developed and transition regions, prioritise critical infrastructure linking less connected regions to the Single Market, and ensure just transition support for workers and communities, especially in coal and peat regions. The opinion also proposes changes to governance, including involving local and regional authorities in the Stakeholders Board and the ECF general committee, and ensuring a level playing field between national development banks and the European Investment Bank.

Committee position. The rapporteur welcomes the Commission's proposal and proposes amendments to integrate a strong territorial dimension, ensure fair geographical distribution, define place-based innovation, involve local and regional authorities in governance, and support SMEs and just transition in less developed and transition regions.

Key points

  1. The Fund must align with the 'do no harm to cohesion' principle and avoid concentrating investments solely in already performing economic ecosystems.
  2. Amendments introduce a definition of 'place-based innovation' and mandate active involvement of local and regional authorities in governance structures like the Stakeholders Board.
  3. The ECF Work Programmes must ensure synergies with National and Regional Partnership Plans and smart specialisation strategies to prevent duplication.
  4. Support is established for SMEs in less developed and transition regions, including dedicated SME actions and bonus systems to encourage participation.
  5. Critical infrastructure linking less connected regions to the Single Market is prioritised, including energy, transport, digital, security, defence, dual-use and space infrastructure.
  6. Just transition support for workers and communities is ensured, especially in less developed and transition regions and coal and peat regions.
  7. The Fund must ensure a fair and balanced geographical distribution of opportunities and resources across the Union, dedicating a meaningful share to less developed and transition regions.
  8. The Competitiveness Coordination Tool must ensure synergies with national and regional chapters, Country Specific Recommendations, National Energy and Climate Plans, and CAP national recommendations.
  9. The ECF should support decarbonisation of European industry, including traditional industries like chemical, cement and metallurgical industries, and promote clean technologies.
  10. The ECF should promote digital leadership, including cybersecurity solutions, AI, and digital infrastructure, and support digital transformation of public and private sectors.
  11. The ECF should support defence industry and space, including the Baltic Defence Line and Eastern Border Shield, and enhance the European Defence Technological and Industrial Base.
  12. The Commission shall ensure a level playing field between national development banks and the European Investment Bank to facilitate broad regional coverage.

Who is affected

  • Less developed and transition regions, which would receive a meaningful share of the Fund and specific support for SMEs and just transition.
  • Coal and peat regions, which would receive support for re-industrialisation and reskilling of workers.
  • Local and regional authorities, which would be involved in governance structures and consultations.
  • SMEs, start-ups and small mid-cap companies, which would receive dedicated support and simplified access to funding.
  • National development banks and the European Investment Bank, which would operate under a level playing field.

Figures and deadlines

  • 2028-2034 MFF, which will continue to support coal and peat regions through all programmes including the ECF.
  • Up to 100% of eligible costs for Coordination and Support Actions in energy efficiency and clean energy transition.
  • Term of members of the ECF Strategic Stakeholders Board limited to four years, renewable once.