26 Mar 2026
Business Europe presents position paper on ECF
BusinessEurope published a position paper on the European Competitiveness Fund (ECF) on 25 March 2026.
The paper states that the ECF, a package of financial incentives based on 14 existing programmes, including Horizon Europe, aligns with the calls included in Mario Draghi’s Report to direct more public-private investments towards industrial sectors deemed strategic for the EU’s competitiveness and resilience.
BusinessEurope sees the merging of 14 existing programmes into a single rulebook and a central digital portal offers as an opportunity to reduce fragmentation and create a more efficient and strategic funding framework. The proposed framework aims to improve transparency, efficiency, and user-friendliness in the application process, award criteria, disbursement, and tracking. At the same time, it aims to enhance the combinability of funding instruments to support projects throughout the different phases of the investment lifecycle and to assist companies, particularly SMEs, not only through financial support but also through complementary non-financial instruments, such as advisory and capacity-building services, the association states.
However, BusinessEurope's paper claims that the ECF’s impact on competitiveness will depend on whether these modifications translate into genuinely streamlined and faster procedures in practice. It also highlights the importance of observing the principle of excellence in all funding decisions. According to the position paper, it is crucial that ECF funding be allocated through open competition, prioritising projects by following the criteria of excellence and highest relevance for European competitiveness. In limited cases, exceptions to this principle may be justified and could be implemented through targeted calls, for example, through capacity building or resilience actions, as well as synergies with cohesion policy, to ensure a minimum degree of geographical balance. Funding under Pillar II of Horizon Europe should be assigned solely according to the principle of excellence.
BusinessEurope strongly welcomes the creation of the ECF and supports many of the elements included in the Commission proposal; however, several aspects remain unclear, and as significant information is still missing, it is difficult to provide a comprehensive assessment at this stage.
For more information:
BusinessEurope position paper on European Competitiveness Fund