The European Commission's Executive Vice-President Stéphane Séjourné unveiled ambitious plans to significantly enhance the European Competitiveness Fund as part of the forthcoming Multiannual Financial Framework (MFF). Addressing a high-profile audience, Séjourné positioned the fund as a 'force of investment' targeting key strategic sectors, including clean technologies, artificial intelligence, quantum computing, biotechnologies, defense, and space.
A Unified and Streamlined Investment Approach Séjourné emphasized a departure from fragmented funding — ending what he described as "sprinkling" of resources — towards a consolidated fund with a single mandate and a unified process. The proposal envisages rationalizing multiple existing programs into one fund with a unique set of criteria and a single submission gateway, described as the "largest budgetary rationalization exercise ever undertaken".
Tripling the Budget with a Clear European Preference Concretely, the proposed budget for this fund would triple from €134 billion to €450 billion, with a fivefold increase dedicated to defense and digital sectors. This substantial amplification aims to counteract the ‘valley of death’ in industrial scale-up phases, ensuring innovations developed in Europe are also manufactured and scaled on the continent. Furthermore, the fund would prioritize a "European preference" principle, meaning that taxpayer money should primarily benefit companies based within the EU.
Leveraging Private Investments with Risk Mitigation Beyond public funding, Séjourné outlined plans to actively mobilize private investments using a comprehensive suite of financial instruments such as guarantees, equity investments, and loans. The goal is to de-risk projects, making them more attractive to investors and thus catalyzing a broader investment volume expected to exceed €1 trillion during the next MFF.
Stakeholder Implications This policy orientation increases EU-level budgetary powers and financial oversight with a focus on centralized management, potentially reducing administrative complexity for project developers but increasing coordination demands on EU institutions. European producers and industrial stakeholders in targeted sectors may benefit from expanded funding and a strengthened ecosystem for scale-up and production. Conversely, firms located outside the EU might face exclusion from substantial portions of funding due to the "European preference" principle, affecting market competition dynamics. National authorities will be called upon to align with EU strategic priorities, though the emphasis on EU-centric investment highlights a tilt towards stronger EU integration in industrial policy.
Overall, Séjourné's proposals signal a decisive shift toward concentrated, large-scale investment in strategic technologies with clear policy objectives, concrete budget increases, and a strong orientation toward fostering European industrial autonomy and competitiveness.
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