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, repealing provisions of Regulations (EU) 2021/696, (EU) 2023/588, and amending Regulation (EU) [EDIP]
Date: 2025-07-16
Institutions: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, European Commission
Subjects: EU programme, European defence policy, European industrial area, competitiveness, fund (EU), innovation, military research, research and development

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 16.7.2025  COM(2025) 555 final 2025/0555 (COD)  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, repealing provisions of Regulations (EU) 2021/696, (EU) 2023/588, and amending Regulation (EU) [EDIP] (Text with EEA relevance) {SEC(2025) 555 final} - {SWD(2025) 555 final} - {SWD(2025) 556 final}  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  European  Competitiveness  Fund  (ECF,  the  Fund)  is  part  of  the  post-2027  Multiannual 
Financial  Framework  (MFF)  package,  which  aims  to  consolidate  14  individual  funding 
instruments from the current MFF in one framework to operate as an investment capacity to 
bolster  European  competitiveness  in  technologies  and  strategic  sectors  critical  to  the  EU 
competitiveness  from  collaborative  research  to  scaling  up,  innovation,  industrial  and 
infrastructure deployment and manufacturing, including skills, and in support of projects and 
companies  including  SMEs,  start-ups,  larger  companies,  universities  and  research  entities, 
while  acting  as  a  leverage  tool  employing  budgetary  instruments  to  attract  private, 
institutional and national investments.  

Over  the  past  thirty  years,  the  productivity  gaps  between  the  EU  and  other  advanced 
economies  have  widened,  rendering  the  EU  less  competitive  compared  to  other  major 
economies.  The  EU  is  currently  lagging  in  various  areas,  including  technological 
development,  research  and  innovation  performance,  infrastructure  deployment,  market 
dynamism,  and  industrial  capacity.  In  recent  years,  marked  by  rapid  technological 
advancements, escalating economic competition, control of key enabling infrastructures, and 
trade  protectionism,  enhancing  the  competitiveness  of  the  European  Union  has  become  a 
critical priority. This, and the potential impact it has on our prosperity has been underscored 
the  Future  of  European 
including  Draghi’s  Report  on 
by  several  recent  reports, 
Competitiveness  and 
the  Letta’s  Report  “Much  More  Than  a  Market,”  whose 
recommendations have informed the Competitiveness Compass. 

Adopted  by  the  European  Commission  in  January  2025,  the  Competitiveness  Compass1 
diagnoses  significant  issues  that  hinder  competitiveness  within  the  EU.  A  central  issue 
identified is the dispersion of Union spending across multiple overlapping programmes, many 
of  which  fund  similar  initiatives  but  with  differing  requirements,  complicating  the  effective 
combination of funding. 

The Compass identifies several key factors necessary to enhance the Union’s competitiveness: 
(1) closing the innovation gap, (2) decarbonisation, and (3) reducing excessive dependencies 
and improving security. Additionally, it highlights five horizontal enablers: (1) simplification, 
(2) removing barriers in the Single Market, (3) financing, (4) skills and quality jobs, and (5) 
better coordination. Simplification, financing, and better coordination are the primary focus of 
the European Competitiveness Fund, aimed at addressing challenges such as: (1) suboptimal 
support throughout the investment journey—from fundamental research and applied research 
to  scale-up,  industrial  deployment,  and  manufacturing;  (2)  high  investment  needs  to  meet 
Union  priorities,  including  the  clean  and  digital  transition;  and  (3)  a  complex  and 
uncoordinated  Union  funding  landscape.  Addressing  these  challenges  is  expected  to 
positively,  albeit  indirectly,  impact  other  problems  identified  in  the  Competitiveness 
Compass, such as the innovation gap, while also reducing  Europe’s dependence on external 
sources for critical technologies, and resources, thereby enhancing security and resilience. 

The ECF is not the sole initiative to strengthen the Union’s competitiveness. It complements 
other measures announced in the Competitiveness Compass. The present proposal aligns with 

1 

COM(2025) 30 final 

EN 

1 

  EN 

 
the  Communication  on  the  Road  to  the  Next  MFF2,  which  outlined  objectives  for  the  next 
Union Budget to be simpler, more focused, more impactful, and capable of addressing current 
complexities, weaknesses, and rigidities. The Communication also emphasizes that flexibility 
is  key  to  ensuring  the  budget’s  ability  to  respond  to  a  changing  reality,  with  a  focus  on 
challenges  such  as  enhancing  Union  competitiveness,  which  requires  joint  action  within  a 
united  Europe.  Companies  to  be  covered  by  the  future  28th  regime  should  also  be  able  to 
benefit  from  the  ECF,  especially  since  this  regime  aims  to  simplify  cross-border  operations 
and encourage investment within the EU single market.  

The ECF will be structured along four policy windows reflecting strategic priorities crucial to 
Union  competitiveness  and  resilience  (from  AI  and  digital  to  space,  from  clean  tech  to 
biotech, from defence to health). Its open architecture would help the Fund respond quickly to 
new  challenges  and  priorities  by  providing  overall  direction  and  strategy.  This  new 
architecture  would  allow  for  the  setting  of  policy  priorities  at  the  level  of  each  window,  to 
effectively target support from applied research to manufacturing and deployment, including 
infrastructure and specific skills, relying on funding tools adapted to the projects’ needs and 
derisking investment by offering an appropriate leverage/impact ratio of the Union budget. In 
addition, the self-standing Research and Innovation Framework Programme Regulation (EU) 
[XXX]3  of  the  European  Parliament  and  of  the  Council  [Horizon  Europe  framework 
programme for Research and Innovation] will be tightly connected to the components of the 
ECF to ensure a seamless investment journey from idea to market.  

The  ECF  will  flexibly  mobilise  the  entire  financial  toolbox  provided  by  the  Union  budget 
(including  loans,  grants,  equity,  quasi-equity,  blending,  procurement  and  guarantees).  The 
budgetary  guarantee  and  financial  instruments  would  become  available  to  all  the  policy 
windows,  making  them  usable  across  areas  of  funding  under  a  single  Fund.  Synergies  with 
other programmes will also be ensured, thanks to a more integrated approach at strategic level 
and at operational level. Further to the ECF financial toolbox, the Fund will provide project 
advisory support throughout the investment cycle to foster the origination and development of 
projects, support to skills development and provide cross-cutting business support for SMEs 
and  startups  facilitating  their  business  growth,  access  to  financing  and  investments.  The 
integrated structure would also enable synergies with other structural parts of the MFF, such 
as  the  National  and  Regional  Partnership  Plans  Regulation  (EU)  [XXX]4  of  the  European 
Parliament  and  of  the  Council  [National  and  Regional  Partnership  Plans].  The  ECF 
contributes to the competitiveness of the Union and spans over a broad range of policy areas 
from R&I, digitalisation, space, defence, environment, health, single market support, circular 
economy  to  energy  transition.  The  Fund  includes  activities  currently  carried  out  under  14 
Union programmes: Horizon Europe (HE) as a self-standing programme but tightly connected 
to  the  ECF,  Innovation  Fund  (IF),  Digital  Europe  Programme  (DEP),  Connecting  Europe 
Facility – Digital (CEF), European Defence Fund (EDF), the Act in Support of Ammunition 
Production  (ASAP),  the  European  Defence  Industry  Reinforcement  through  Common 
Procurement Act (EDIRPA), the European Defence Industry Programme (EDIP), EU4Health, 
the  European  Space  Programme,  IRIS,  InvestEU,  Single  Market  Programme  (SME  Strand) 
and  LIFE  (see  Annex  7  of  the  Impact  Assessment  report  for  more  details  of  each  of  these 
programmes). The size of these programmes today is very diverse, with Horizon Europe being 
the largest, with EUR 93 billion over 7 years under this MFF (2021-2027), and the Innovation 

2 
3 
4 

COM(2025) 46 final 
OJ L.., p 
OJ L.., p 

EN 

2 

  EN 

 
Fund the second largest, accounting for an estimated EUR 40 billion in the period 2020-2030 
(funded by ETS revenues under Article 10a(8) of Directive 2003/87/EC). 

• 

Consistency with existing policy provisions in the policy area 

The ECF aligns with  the objectives  outlined  in the Communication on the Road to  the next 
Multiannual Financial Framework (MFF), aiming for a more focused, simpler, and impactful 
budget.  

To  bolster  competitiveness,  the  ECF  will  build  on  the  experience  with  the  InvestEU 
Programme5  which  pooled  a  number  of  financial  instruments  under  a  single,  streamlined 
framework  and  managed  to  successfully  mobilise  public  and  private  financing,  using  a 
relatively modest EU guarantee, providing additionality and aligning with Union policy goals. 

The  ECF  will  be  tightly  linked  to  the  10th  Framework  Programme  for  Research  and 
Innovation  established  under  Regulation  (EU)  [XXX]  [Horizon  Europe  programme  for 
Research  and  Innovation]  through  the  development  of  integrated  work  programmes  and  a 
single  rulebook  in  the  ECF  Regulation.  This  will  be  key  to  ensure  a  seamless  investment 
journey from research to start-up, scale up, deployment and global manufacturing, from idea 
to market. JRC direct actions will support the objectives of the ECF policy windows. 

The ECF will be coherent with and complementary to the other new funds that will support 
health-related  funding  –  for  activities  related  to  disease  prevention  and  health  promotion 
Regulation  (EU)  [XXX]6  of  the  European  Parliament  and  of  the  Council  [Union  Civil 
Protection Mechanism and Union support for health emergency preparedness and response], 
Regulation  (EU)  [XXX]7  of  the  European  Parliament  and  of  the  Council  [Global  Europe], 
Regulation  (EU)  [XXX]  [National  and  regional  partnership  plans].  A  strong  connection 
between  the  ECF  and  the  modernised  Connecting  Europe  Facility  (CEF)  is  crucial 
(Regulation (EU) [XXX]8 of the European Parliament and of the Council [Connective Europe 
Facility]).  Cross-border  infrastructure  projects  on  decarbonization,  resilience  of  digital, 
transport  and  energy,  as  well  as  mobility  are  vital  for  improving  Union  competitiveness, 
security,  and  reducing  strategic  dependencies.  There  are  clear  synergies  between  trans-
European networks in energy and transport supported by CEF and projects  within the ECF's 
scope.  Cross-border  digital  connectivity  infrastructures  that,  according  to  the  Draghi  report, 
are  vital  for  Europe  to  be  globally  competitive,  will  be  funded  under  the  ECF  in  order  to 
maximize synergies with the other digital capacities. 

Synergies  between  the  ECF  on  one  hand  and  the  Innovation  Fund  and  the  Single  Market 
programme on the other hand should be ensured regarding support to: 

–  industrial  decarbonisation  and 
technologies (Innovation Fund). 

innovation  notably 

in 

the  field  of  clean 

–  Digital  technologies,  pan-European  digital  public  infrastructure  and  digital 

solutions in the area of customs and taxation (Single Market programme).  

5 

6 
7 
8 

Regulation( EUà2021/523 of the European parliament and of the Council, establishing the InvestEU 
Programme and amending Regulation (EU) 2015/1017 
OJ L.., p 
OJ L.., p 
OJ L.., p 

EN 

3 

  EN 

 
To this end, the ECF shall ensure coherence  with  actions planned to  be  implemented under 
the  Innovation  Fund  and  the  Single  Market  programme,  notably  when  developing  work 
programmes. As announced in the Clean Industrial Deal, the Industrial Decarbonisation Bank 
will be placed within the governance of the ECF. 

The  Commission  should  propose  by  the  end  of  2025  the  legislative  framework  for  the  EU 
Space  Systems  and  their  Governance  building  on  the  EU  acquis  of  the  Space  and  IRIS² 
regulations. 

Competitiveness  will  also  receive  support  from  Member  States’  National  and  regional 
partnership  plans  and  external  policies.  In  addition,  synergies  between  the  ECF  and  other 
Union activities that support policy areas closely linked with competitiveness will be sought. 
In particular, the ECF will allow for the combination and cumulation of funding for actions 
supporting the objectives of more than one Union programme. The ECF will also be open to 
any  financial  or  non-financial  contributions  supporting  the  competitiveness  objectives, 
including  from  Member  States,  third  countries  and  international  organisations.  Moreover, 
support  from  Regulation  (EU)[XXX]  [National  and  Regional  partnership  plans]  to  projects 
that  have  been  awarded  the  Competitiveness  Seal  will  be  facilitated.  Synergies  and 
complementarity,  from  planning  to  implementation,  will  be  sought  in  particular  with  the 
European  Investment  Bank  Group.  The  implementation  of  all  these  synergy  activities  will 
reduce  the  and  reporting  and  record-keeping  requirements  for  recipients  reduced  to  the 
minimum necessary. 

The  ECF  should  also  work  in  synergy  with  the  new  Erasmus+  programme  for  skills 
development,  and  with  the  objective  of  implementing  the  Union  of  Skills.  The  funding 
support  from  ECF  for  skills  in  strategic  sectors  would  be  complementary  to  support  from 
Erasmus+  for  building  and  enhancing  skills  for  quality  jobs  and  lives  through  life-long 
learning and talent development, attraction and retention. 

• 

Consistency with other Union policies 

The  ECF  is  consistent  with  the  Competitiveness  Compass  which  provided  a  roadmap  for 
boosting  competitiveness,  building  on  the  recommendations  of  these  reports.  Moreover,  the 
ECF  will  greatly  support  the  Clean  Industrial  Deal,  which  outlined  the  need  to  accelerate 
decarbonisation,  reindustrialisation  and  innovation,  bringing  together  climate  action  and 
competitiveness under one overarching growth strategy. 

The ECF is  also  complementary to  and will amplify the effects  of delivering a Savings and 
Investments Union. Deeper capital markets will allow insurers, pension funds, banks and asset 
managers  to  participate  in  projects  supported  by  the  ECF  thus  providing  savings  and 
investment opportunities for EU citizens to the ultimate benefit of savers and citizens. 

The ECF is fully consistent with the Digital Decade Policy Programme 2030, which sets out 
the  Union’s  common  digital  targets  and  a  governance  framework  to  accelerate  Europe’s 
digital  transformation  across  infrastructure,  skills,  and  services9.  In  particular,  the  ECF’s 
digital  investments  respond  to  the  gaps  and  priorities  identified  in  the  State  of  the  Digital 
Decade  2025  report,  notably  in  digital  connectivity,  advanced  computing,  and  digital  skills, 
supporting the Union’s objective of digital sovereignty 

9 

Decision (EU) 2022/2481  

EN 

4 

  EN 

 
A  number  of  other  initiatives  are  also  relevant  for  the  activities  deployed  under  the  ECF, 
including:  Critical  Raw  Materials  Act,  Net  Zero  Industry  Act,  Chips  Act,  Industrial  Action 
Plan for the European automotive sector, Ecodesign for Sustainable Products Regulation, AI 
Act,  Interoperable  Europe  Act,  Life  Sciences  Strategy,  Advanced  Materials  Act, 
Pharmaceutical  Package,  the  Medical  Countermeasures  Strategy,  White  Paper  on  Defence, 
Economic  Security  Strategy,  Preparedness  Union  Strategy,  the  Sustainable  and  Smart 
Mobility Strategy and the European Ocean Pact. The ECF is also consistent with the external 
dimension  of  competitiveness,  with  the  Union  international  commitments,  including  in  the 
area of trade.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

This  Regulation  lays  down  an  indicative  financial  envelope  for  the  ECF,  including  the 
European  Union  funding  for  Clean  Transition  and  Industrial  Decarbonisation,  for  Digital 
Leadership,  for  Health,  Biotech,  Agriculture  and  Bioeconomy,  for  Resilience,  Defence 
industry and Space. 

Since the ECF constitutes a framework for separate programme basic acts and the concerned 
policy areas, the proposal relies on a number of separate legal basis, each to be applied to the 
relevant part(s) of the ECF:  

–  Article  168  TFEU  in  relation  to  relevant  activities  designed  to  protect  and 
improve  human  health  by  supporting  the  competitiveness  of  the  health, 
biotechnology, agriculture and bioeconomy sectors; 

–  Article  170  TFEU  in  relation  to  the  development  of  trans-European  networks  in 

the areas of digital communications;  

–  Article  172  TFEU  in  relation  to  relevant  activities  supporting  competitiveness 

through digital transformation in areas of public interest; 

–  Article 173(3) TFEU in relation to activities supporting the competitiveness of the 
European Union’s industrial base, including support to Small- and Medium-sized 
Enterprises, specifically to adapt to the new economic challenges in the areas of 
research,  clean  and  digital 
transition,  health,  biotechnology,  agriculture, 
bioeconomy, space, security and defence; 

–  Article  175  TFEU  in  relation  to  the  need  to  continue  and  improve  measures 
outside  the  Funds  referred  to  in  Article  175  TFEU  for  activities  to  improve 
competitiveness  throughout  the  internal  market,  including  through  widening 
measures, considering economic, social and territorial cohesion; 

–  Articles  182(4),  183  and  the  second  subparagraph  of  188  TFEU  in  relation  to 

relevant activities supporting research and innovation in the area of defence; 

–  Article 189(2) TFEU in relation to relevant activities supporting the Unions’ space 

policy; 

–  Article  192(1)  TFEU  in  relation  to  relevant  activities  preserving,  protecting  and 
improving the quality  of the environment  and activities supporting the transition 
to clean energy to contribute to climate change mitigation; 

–  Article 194 TFEU in relation to the functioning of the energy market; security of 
energy  supply  in  the  Union;  energy  efficiency  and  energy  saving  and  the 

EN 

5 

  EN 

development  of  new  and  renewable  forms  of  energy;  and  interconnection  of 
energy networks. 

–  Article  212  TFEU  in  relation  to  activities  in  support  of  strategic  partners  for 

defence industry; 

–  Article 322(1), point (a), on the adoption of the financial rules which determine in 
particular  the  procedure  to  be  adopted  for  establishing  and  implementing  the 
budget and for presenting and auditing accounts. 

• 

Subsidiarity (for non-exclusive competence)  

The response to bolster Union competitiveness must be coordinated at the Union level to be 
truly effective. Pooling resources at this level enhances the impact and value of investments 
by achieving economies of scale in fostering and de-risking investment in policy areas critical 
for  European  competitiveness.  This  approach  is  more  cost-effective  than  if  Member  States 
acted independently. 

Persistent underinvestment by the private sector across critical areas—such as infrastructure, 
green  and  digital  transitions,  and  industrial  capacity—is  compounded  by fragmented  capital 
markets, which impede efficient cross-border investment. Despite high private savings, these 
are not adequately converted into long-term investments necessary for strategic autonomy. 

Public R&D spending within the Union remains fragmented and misaligned with Union-wide 
priorities,  with  most  funding  coming  from  individual  Member  State  budgets.  Only  Union-
level  action  can  support  the  scale  and  type  of  projects  that  Member  States  cannot  achieve 
alone, creating critical mass for impactful projects and partnerships. 

Furthermore,  Union-level  coordination  promotes  collaboration,  essential  for  fostering 
knowledge  spillovers  and  derisking  investment,  thereby  enhancing  competitiveness.  An 
Union-wide approach offers economies of scale and cooperation among stakeholders, crucial 
for boosting knowledge valorisation and improving capacities. 

Last  but  not  least,  a  directly  managed  Union  programme  is  best  placed  to  ensure  the 
application  of  a  single  set  of  rules  for  cross-border  cooperation  in  the  most  strategic  policy 
areas covered by the ECF, thereby ensuring policy alignment and creating economies of scale 
across sectors and Member States. 

• 

Proportionality 

The  proposed  actions  do  not  go  beyond  what  is  required  to  achieve  Union  objectives  and 
Union added-value.  

• 

Choice of the instrument 

The basic act takes the form of a regulation adopted under ordinary legislative procedure in 
accordance with the TFEU to ensure obligations are directly binding on recipients of ECF and 
directly applicable in all Union Member States. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

This proposal is based on the extensive analysis of impact assessments, mid-term evaluations 
for 2021-2027 programmes falling within the scope of this initiative and on available ex-post 
evaluations for 2014-2020 programmes. A full list of the evaluations analysed is provided in 
Annex 1 of the Impact Assessment accompanying this proposal.  

EN 

6 

  EN 

• 

Stakeholder consultations 

The  European  Commission  conducted  a  public  consultation  to  gather  insights  on  Union 
funding  for  competitiveness  in  preparation  for  the  next  Multiannual  Financial  Framework 
(MFF) starting in 2028. This consultation, which took place over 12 weeks and included an 
online  questionnaire  and  position  papers,  targeted  a  wide  range  of  stakeholders  such  as 
citizens, businesses, SMEs, public authorities, and academia. 

A  summary  of  findings  from  2,034  responses  and  462  position  papers  revealed  widespread 
underinvestment  in  research  and  innovation  and  a  notable  innovation  gap  with  global 
competitors  as  key  challenges  to  Union  competitiveness.  The  consultation  highlighted  the 
need for Union-level coordination to pool resources effectively, thereby achieving economies 
of scale and improving the impact of investments in areas like infrastructure, innovation, and 
strategic sectors. 

Respondents  supported  measures  focusing  on  increasing  funding  for  strategic  priorities, 
ensuring  continuity  in  funding  from  research  to  manufacturing,  and  limiting  Union 
dependencies  in  strategic  sectors.  These  measures  were  seen  as  necessary  to  address 
fragmented  support  across  the  investment  journey,  which  hinders  competitiveness  by 
preventing efficient transformation of savings into long-term investments. 

Challenges  also  included  fragmented  capital  markets  and  insufficient  private  investment, 
especially  affecting  SMEs  and  scale-up  companies.  Among  respondents,  businesses  and 
academic  institutions  stressed  the  importance  of  greater  investments  in  R&D,  infrastructure 
modernisation, and decarbonisation to maintain competitiveness. Despite positive feedback on 
various  stages  of  the  funding  process,  concerns  were  raised  over  long  evaluation  timelines, 
lack  of  transparency,  and  complex  application  procedures,  particularly  affecting  SMEs  and 
new applicants. Simplification and coherence across programmes were suggested as ways to 
improve the funding process. 

The  public  consultation  was  complemented  with  other  consultation  activities  for  relevant 
stakeholders both on the industry and the research and innovation areas.  
For industry stakeholders, the 9th plenary meeting of the Industrial Forum held on 19th March 
2025, focused on the new European Competitiveness Fund. The participants, represented by 
over 60 members from different industries and business associations as well as Member States 
were invited to provide their feedback on the problems related to the competitiveness and to 
share ideas on how to address these challenges. The input received largely confirmed with the 
stakeholders’ feedback received during the public consultation, emphasising the need to align 
research and industrial policy and funding tools.  

A  more  detailed  summary  of  the  consultation  carried  out  in  the  framework  of  this  proposal 
can be found in Annex 2 of the Impact Assessment accompanying this proposal.  

• 

Collection and use of expertise 

This proposal is based on an extensive desk review covering approximately 140 documents, 
including  the  above-mentioned  impact  assessments,  mid-term  evaluations  and  ex-post 
evaluations.  A  series  of  relevant  policy  and  scientific  reports  and  papers  have  also  been 
consulted.  

The desk review was further completed by economic modelling carried out by Joint Research 
Centre  (JRC)  for  quantifying  selected  impacts  and  cost  benefit  analysis  carried  out  by  an 
external consultant. A comprehensive list of sources used for the purposes of this proposal can 
be  found  in  Annex  1  of  the  Impact  Assessment  accompanying  this  proposal.  A  detailed 

EN 

7 

  EN 

methodology used for the purposes of the cost benefit analysis and modelling can be found in 
Annex 4 of the Impact Assessment.  

• 

Impact assessment 

The Regulatory Scrutiny Board provided comments to the impact assessment.  

Three different policy options have been considered in the impact assessment,  

The first option is “Business-as-usual-plus”, in which the 14 programmes1 would retain their 
own  rules,  but  the  Commission  would  try  to  ensure  more  horizontal  consistency  across  the 
funds, building on the STEP approach.  

The  second  option  is  an  “Enhanced  coordination  between  programmes  and  a  common 
rulebook”, which would go further by harmonising rules across programmes, in particular by 
aligning objectives, strands, and pillars, as well as the implementing tools and horizontal legal 
provisions. 

The  third  option  is  a  “Consolidation  of  programmes  in  a  new  European  Competitiveness 
Fund”,  which  would  bring  relevant  Union  programmes  into  one  fund  with  a  strategic  steer 
that would prioritise policy rather than programmes.  

The preferred option is the third option, as it offers a comprehensive set of policy measures to 
overcome the current deficiencies in the Union funding landscape related to competitiveness 
outlined above.  

Option  C  is  expected  to  reduce  administrative  costs  for  beneficiaries  by  integrating  access 
points and introducing a single rulebook, simplifying the funding process and creating a more 
efficient,  business-friendly  environment,  particularly  benefiting  high-growth  industries, 
SMEs, innovative start-ups, and projects requiring long-term investment support. 

A  simplified  and  upgraded  application  process  would  increase  clarity  for  project  promoters 
and overall facilitate access to funding.  

Option C also consolidates funding processes and broadens access to financial tools, allowing 
the  Union  to  better  harness  its  potential  to  mobilise  private  capital  and  increase  budgetary 
flexibility.  The  option  also  strengthens  connections  between  fundamental  research  and 
advanced  stages  of  research,  innovation  and  manufacturing,  ensuring  a  dynamic  economic 
structure within the Union and better bringing ideas to the market. To ensure the success of 
the  preferred  option,  the  Union  will  implement  measures  to  minimise  potential  negative 
impacts, including by balancing flexibility with the need of predictability.  

The  preferred  option  would  entail  some  adjustment  costs  for  applicants  and  beneficiaries 
already  benefitting  from  Union  funds.  However,  while  initial  adaptation  to  the  new  fund 
would  be  needed,  beneficiaries  would  only  need  to  undertake  this  learning  process  once, 
rather than repeatedly for multiple programmes.  

Marketwise, a unified funding framework aims to enhance the competitiveness of European 
companies  by  making  funding  more  accessible  and  strategically  aligned.  It  also  supports 
European strategic autonomy and reduces critical dependencies. 

EN 

8 

  EN 

• 

Regulatory fitness and simplification 

One of the key pillars of this proposal is the simplification, which will be achieved through 
integrating access  points and introducing  a single rulebook, simplifying the funding process 
and  creating  a  more  efficient,  business-friendly  environment,  particularly  benefiting  high-
growth  industries,  SMEs,  innovative  start-ups,  and  projects  requiring  long-term  investment 
support. 

A simplified and upgraded application process will increase clarity for project promoters and 
overall facilitate access to funding.  

• 

Fundamental rights 

The proposal is in line and respects the Union values enshrined in Article 2 of the Treaty on 
the  European  Union  and  the  fundamental  rights  enshrined  in  the  Charter  of  Fundamental 
Rights  of  the  European  Union  (the  Charter),  where  the  objectives  of  the  proposed  initiative 
are  linked  to  the  promotion  of  fundamental  rights  and  the  application  of  the  Charter.  For 
instance, the proposal promotes the right to life and private life by promoting decarbonisation 
as  well  as  equality  by  promoting  equality  of  opportunity  and  fostering  diversity  across  the 
investment landscape.  

4. 

BUDGETARY IMPLICATIONS 

The financial envelope for the implementation of the ECF for the period from 1 January 2028 
to  31  December  2034  shall  be  EUR  234  300  000  000  in  current  prices.  The  indicative 
distribution of the amount shall be as follows: 

–  EUR 11 000 000 000 for activities contributing to the general objectives referred 
to Article 3, as implemented in particular through cross-cutting activities such as 
non-thematic support of the ECF InvestEU Instrument, referred to in Chapter II, 
Section 2;  Project  Advisory, SME Collaboration, skills  development  and Access 
to Funding, referred to in Chapter III.  

–  EUR 26 210 000 000 for the specific objectives referred to in Article 3(2), point 

(a).  

–  EUR 20 393 000 000 for the specific objectives referred to in Article 3(2), point 

(b).  

–  EUR 51 493 000 000 for the specific objectives referred to in Article 3(2), point 

(c).  

–  EUR 125 204 000 000 for the specific objectives referred to in Article 3(2), point 

(d). 

A legislative financial statement with further budgetary information is included.  

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

This  initiative  will  be  monitored  through  the  performance  framework  for  the  post-2027 
budget, which provides for an implementation report during the implementation phase of the 
programme, as well as a retrospective evaluation to be carried out in accordance with Article 
34(3)  of  Regulation  (Union,  Euratom)  2024/2509.  A  simplified  application  of  the 
performance framework  will be used for the budgetary guarantee  and  financial instruments. 

EN 

9 

  EN 

The deployment of market-driven instruments requires simplification efforts to attract private 
investors to support Union policy areas. 

The  evaluation  will  be  conducted  in  accordance  with  the  Commission's  Better  Regulation 
Guidelines and will be based on indicators relevant to the objectives of the programme. 

• 

– 

– 

– 

– 

– 

Detailed explanation of the specific provisions of the proposal 

Chapter  I  establishes  the  European  Competitiveness  Fund  (ECF)  as  part  of  the 
multiannual  Framework  Programme  for  2028-2034,  focusing  on  enhancing  Union 
competitiveness  in  strategic  sectors.  It  sets  out  the  Fund’s  objectives,  budget,  and 
funding  rules,  aiming  to  support  projects  across  clean  and  digital  transition,  health, 
and  resilience,  security  and  defence  sectors.  The  main  goals  include  increasing 
technological  and  economic  impact,  reducing  strategic  dependencies,  attracting 
private investment, and supporting infrastructure and SMEs. The chapter emphasizes 
aligning  research  and  industrial  policies  to  bolster  Union  industries  globally, 
developing critical infrastructure, and addressing skill shortages. Specific objectives 
focus  on  fostering  innovation  and  competitiveness  in  critical  sectors  such  as  clean 
technology,  health,  digital  transition,  security  and  defence.  The  chapter  emphasizes 
reinvesting  returns  to  boost  Union  competitiveness  and  includes  guidelines  for 
working with Member States and third countries to expand investment opportunities. 
It  sets  out  the  single  rulebook.  Additionally,  it  ensures  strategic  coordination  of 
resources and lays down the governance arrangements 

Chapter  II  introduces  the  "ECF  Toolbox"  composed  of  grants,  procurement,  and 
coordination of industrial policy tools, and the ECF InvestEU Instrument, which uses 
financial  tools  like  loans,  equity  and  guarantees  expected  to  mobilise  significant 
private  and  public  investment  aligned  with  Union  priorities.  It  lays  down  common 
rules  for  collaborative  research  and  innovation  activities,  while  taking  into  account 
targeted  specificities  under  Horizon  Europe,  and  ensures  coordination  of  industrial 
policy  tools,  including  value  chains,  production  ramp  up,  skills  development  and 
critical  competitiveness  actions.  The  ECF  InvestEU  Instrument  outlines  how 
financing  will  be  managed  and  deployed  by  implementing  partners  to  market, 
focusing  on  key  areas  such  as  development  and  deployment  of  innovative 
technologies. Existing deep-tech scale-up financing under the Scaleup Europe Fund 
announced in the Startup Scaleup Strategy will be carried out under the terms agreed 
in  the  current  MFF.  All  future  scaleup  financing  in  the  MFF  2028-2034  will  take 
place under the ECF. 

Chapter  III  aims to  enhance Project  Advisory services, support SME collaboration, 
and  streamline  access  to  funding.  It  establishes  a  centralised  Project  Advisory  for 
investment support across all policy windows, business support services and a Union 
business  network  to  bolster  SMEs  and  startups  to  promote  their  growth,  access  to 
Union funding and investments through advisory and partnering services.  

Chapters  IV  –  VII  provide  for  more  detailed  provisions  for  the  implementation  of 
each of the ECF policy windows.  

Chapter  VIII,  titled  "Final  Provisions,"  details  the  procedural  and  administrative 
framework for implementing the European Competitiveness Fund (ECF). It describes 
how  the  European  Commission  will  be  supported  by  a  committee  with  different 
configurations,  focusing  on  different  sectors  for  the  adoption  of  the  work 
programmes. The chapter grants the Commission the power to adopt delegated acts, 
which can be revoked by the European Parliament or the Council if necessary. It also 

EN 

10 

  EN 

outlines  the  repeal  of  several  existing  Union  regulations  to  streamline  into  the  new 
structure and includes transitional arrangements to ensure a smooth shift to the ECF 
framework. The regulation is set to come into effect on January 1, 2028, binding all 
Member States. 

EN 

11 

  EN 

2025/0555 (COD) 

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, repealing provisions of 
Regulations (EU) 2021/696, (EU) 2023/588, and amending Regulation (EU) [EDIP] 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article  43(2),  Article  168(5),  Article  172,  first  subparagraph,  Article  173(3),  first 
subparagraph, Article 175, first subparagraph, Article 182(4), Article 183 in conjunction with 
Article 188, second paragraph, Article 189(2), Article 192(1), Article 194(2), Article 212(2) 
and Article 322(1), point (a), thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee,10 
Having regard to the opinion of the Committee of the Regions,11 

Having regard to the opinion of the Court of Auditors, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

This  Regulation  lays  down  an  indicative  financial  envelope  for  the  European 
Competitiveness Fund (‘ECF’), including the specific programme for defence research 
and innovation, which is to constitute the prime reference amount, within the meaning 
of  the  inter-institutional  agreement  on  cooperation  in  budgetary  matters,  for  the 
European Parliament and the Council during the annual budgetary procedure. For the 
purpose  of  this  Regulation,  current  prices  are  calculated  by  applying  a  fixed  2% 
deflator. 

The Union is facing a defining period for its future, from a political, economic, social, 
environmental,  climate  and  security  perspective,  including  increased  risks  of 
conventional  military  threats.  The  Draghi  report  on  the  future  of  European 
Competitiveness12  presented  a  new  vision  to  reignite  sustainable  growth  in  Europe. 

10 
11 
12 

OJ C , , p. . 
OJ C , , p. . 
The 
https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en 

future  of  European  competitiveness:  Report  by  Mario  Draghi,  September  2024, 

EN 

12 

  EN 

 
and 

action 

climate 

together 

innovation,  bringing 

The Letta report13 outlined that Europe must leverage its  Single Market  to  achieve a 
leadership position in the global competition. The Commission communication on the 
Competitiveness  Compass14  provided  a  roadmap  for  boosting  competitiveness, 
building  on  the  recommendations  of  these  reports.  The  Commission  communication 
on  the  Clean  Industrial  Deal15  outlined  the  need  to  accelerate  decarbonisation, 
and 
reindustrialisation 
competitiveness under one overarching growth. Sectorial Industrial Action Plans, such 
as  Automotive,  Steel  and  Metals  and  Chemicals  aim  to  ensure  the  long-term 
competitiveness,  sustainability,  and resilience of the European industry.  The  State of 
the Digital decade 202516 highlights the urgent need to foster cooperation and increase 
public  and  private 
leadership, 
sovereignty  and  inclusiveness.  The  Joint  White  Paper  on  European  Defence 
Readiness17  underlines  the  need  to  massively  and  rapidly  reinvest  in  defence  in 
support  of  Europe’s  freedom  of  action.  Moreover,  the  priorities  of  the  Economic 
Security  Strategy  further  underline 
the  Union’s 
technological  edge  and  de-risk  economic  relations  including  by  enhancing  the 
resilience  of  supply  chains  and  thereby  reducing  dependencies  on  others.  The 
European Ocean Pact outlines the need to enhance competitiveness and accelerate the 
strategic  transition  across  the  blue  economy  sectors,  focussing  especially  on 
the  Commission 
decarbonisation  and  scaling  up 
Communication  on  the  Road  to  the  next  MFF,18  the  next  Union  long-term  budget 
needs to be more focused, simpler, more flexible, and predictable and better deliver on 
the Union priorities, including bolstering the Union competitiveness. 

investments  for  strengthening  Union’s  digital 

innovation.  As  outlined 

the  crucial  need 

to  secure 

in 

To regain and reinforce its competitive edge, it is essential that the Union revives the 
innovation  cycle  by  developing  its  disruptive  innovation  capacity  and  investing  in 
emerging, cutting-edge and strategic technologies with significant economic potential. 
To  ensure  its  autonomy  in  the  global  economy,  the  Union  should  guarantee  its 
technological  and  industrial  leadership  in  strategic  sectors,  starting  with  critical  raw 
materials supply chains, to develop and manufacture strategic technologies in Europe, 
as  well  as  mitigate  risks  affecting  its  security  and  resilience  emanating  from  critical 
external dependencies. This can be done by addressing market failures and suboptimal 
investment  situations,  in  a  proportionate  manner  and  without  crowding  out  private 
funding,  considering  the  high  investment  needs  for  delivering  on  Union  priorities, 
including  for  decarbonisation  and  the  digital  transition.  Greater  emphasis  should  be 
put  on  leveraging  private  sector  participation  by  improving  the  use  of  risk-sharing 
mechanisms between Union funds and private investors, to ensure an efficient use of 

of 

on 

the 

the 

2024, 

Letta's  Report 

Enrico 
Single  Market,  April 
Future 
https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-
letta.pdf. 
Competitiveness compass - European Commission 
Communication from the Commission to the European Parliament, the European Council, the Council, 
the European Economic and Social Committee and the Committee of the Regions, The Clean Industrial 
Deal: A joint roadmap for competitiveness and decarbonisation, COM(2025) 85 final, 26.2.2025. 
COM(2025) 290 final State of the Digital Decade 2025: Keep building the EU's sovereignty and digital 
future. 
Joint Communication to the European Parliament, the European Council and the Council on ‘European 
Economic Security Strategy’, JOIN(2023) 20 final, 20.6.2023. 
Communication from the Commission to the European Parliament, the European Council, the Council, 
the European Economic and Social Committee and the Committee of the Regions, The road to the next 
multiannual financial framework, COM(2025) 46 final, 11.2.2025. 

(3) 

13 

14 
15 

16 

17 

18 

EN 

13 

  EN 

 
(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

public  funding.  This  will  build  upon  and  further  amplify  the  impact  of  the  progress 
achieved  on  the  Savings  and  Investment  Union,  which  will  provide  the  necessary 
regulatory  landscape  for  private  investments  to  thrive.  The  use  of  any  additional 
national  resources  is  without  prejudice  to  the  application  of  Articles  107  and  108 
TFEU.  

This  requires  that  Union  funding  offers  support  to  businesses  and  projects  along  the 
entire  investment  journey.  This  journey  encompasses  all  stages  of  developing  and 
manufacturing  strategic  technologies,  products  and  services  in  Europe,  from  applied 
research,  through  all  forms  of  innovation,  scale-up,  industrial  deployment,  to 
manufacturing  and  market  deployment,  including  the  necessary  investment  and 
operational  costs  support,  infrastructure  and  skills.  The  investment  journey  is  not 
linear as all stages feed each other, and ideas for new products or services might arise 
at any stage. European funding needs to cater for this non-linear reality with increased 
flexibility of providing support preserving predictability for funding. 

This  also  requires  that  Union  funding  facilitates  the  creation  and  expansion  of 
innovative  and  industrial  ecosystems,  where  different  actors  interact  in  a  synergetic 
way. Successful ecosystems feature intensive and agile interactions and collaboration 
between  small  and  large  companies,  universities  research  institutions,  infrastructure 
providers, investors  as  well as public  authorities. Without  such collaborations  within 
and  between  individual  innovation  and  industrial  ecosystems,  innovation  potential 
stays unexploited. 

Digital  connectivity  is  crucial  to  foster  collaboration  within  the  ecosystem, 
accelerating  innovation,  enabling  seamless  and  secure  access  to  critical  digital 
capacities  and  solutions  across  the  Union,  facilitating  cross-border  public-private 
partnerships, and fostering interoperability and cost-effectiveness.  

Therefore,  the  purpose  of  the  ECF  is  to  establish  an  investment  capacity  to  support 
European  competitiveness  in  strategic  technologies,  infrastructures,  products  and 
services  and  sectors,  providing  for  a  more  seamless  investment  journey.  It  will 
promote the creation, collaboration, and expansion of innovation, private finance and 
industrial ecosystems.  

In the EU, persistent disparities in competitiveness and innovation performance across 
regions continue to exist. After sustained efforts at both EU and national level to close 
the innovation gap, it is time to unlock the full potential of every region. By ensuring 
that less-developed regions are effectively connected to EU value chains, the Union as 
a whole will be better positioned to compete globally. 

The EU outermost regions and overseas countries and territories represent unique and 
strategic  assets  that  benefit  the  Union  as  a  whole  –  including  proximity  to  third 
countries,  exceptional  conditions  for  space  and  astrophysics  research,  abundant 
renewable energy potential, rich biodiversity, and extensive maritime zones. The ECF 
should leverage their potential as geostrategic outposts, particularly in support of the 
Union’s  objectives  on  security,  preparedness, 
regional  value  chains,  and 
competitiveness. 

(10)  The  Commission  should  ensure  tight  coordination  and  synergies  between  all  Union 
founding  sources  in  the  MFF.  For  this  purpose,  the  Framework  Programme  for 
Research and Innovation will be tightly linked to the ECF: to ensure that the European 
industry  leverages  research  results  funded  by  the  Union  to  further  innovate  and 
produce in Europe. In order to foster synergies, the work programmes adopted under 

EN 

14 

  EN 

this Regulation should integrate in a specific and dedicated part and ensure coherence 
with  and the ‘Competitiveness’ component, Part II ‘Competitiveness  and Society’  of 
the Regulation (EU) [XXX]19 of the European Parliament and of the Council [Horizon 
Europe Framework programme for Research and Innovation]20 in accordance with the 
committee  procedure  set  out  in  this  Regulation.  Besides,  the  ECF  shall  ensure 
coherence  with the types of actions planned to be implemented under the Innovation 
Fund, notably when developing work programmes.  

(11) 

In order to foster synergies between actions under the ECF and the Innovation Fund, 
the  work  programmes  of  the  ECF  should  ensure  coherence  with  the  priorities  and 
types of actions that could be funded under the Innovation Fund. Together, the ECF, 
Horizon Europe, and the Innovation Fund will provide coherent support to the Union 
competitiveness. 

(12)  Moreover, to foresee a strong connection with the Competitiveness Coordination Tool, 
the  work  programme  of  the  ECF  should  ensure  coherence  with  the  selected  projects 
and competitiveness priorities identified under the Tool. 

(13)  Cooperation between public and private sectors can benefit European competitiveness 
and leveraging private investments is necessary to complete the objectives of the ECF. 
Therefore, it should be possible to implement parts of the ECF budget through public-
private  partnerships  together  with  other  public  and  private  entities,  where  this  is  the 
most  effective  implementation  form  to  achieve  the  policy  objectives  established  for 
research and technological development, while ensuring additionality and avoiding the 
crowding-out  of  private  investments.  Public-private  partnerships  in  the  form  of  Joint 
Undertakings  should  be  established  where  a  close  involvement  of  the  Union  is 
required and should ensure appropriate voting rights for the Union as well as sufficient 
co-investment  by  other  partners  to  leverage  Union  support.  In  view  of  fostering 
synergies  and  efficiencies,  it  is  necessary,  based  on  the  assessed  needs,  to  ensure  a 
centralised  establishment  and  administrative  functions  for 
joint  undertakings. 
Therefore, the number of joint undertakings should be as limited as possible. 

(14)  The  ECF  should  use  the  whole  toolbox  of  Union  budget  to  unlock  additional  public 
and private investments, in particular from institutional investors throughout the whole 
investment journey. It should contribute to creating an “investment culture” by better 
leveraging  public  funds  and  the  de-risking  potential  of  the  Union  budget.  It  will 
maximise  the  added  value  of  Union  action  and  crowd-in  private  capital  to  secure  a 
competitive  innovation  and  industrial  base,  also  by  using  innovative  funding 
instruments  including  public-private  co-investment  with  asymmetric  risk  returns.  In 
this regard, the use of financial instruments that crowd in private investors should be 
the privileged option wherever possible.  

(15)  The Draghi report calls for more investment support to close the investment gap and 
recognises  InvestEU  as  the  key  risk-sharing  instrument  to  use.  The  ECF  InvestEU 
Instrument  should  set  up  a  single  budgetary  guarantee  and  deliver  financial 
instruments to support EU competitiveness.  

(16) 

In  a  fast-changing  economic,  social,  security  and  geopolitical  environment,  recent 
experience  has  shown  the  need  for  a  more  flexible  multiannual  financial  framework 
and  its  programmes.  To  that  effect,  and  in  line  with  the  objectives  of  the  ECF,  the 

19 
20 

OJ L.., p 
COM(2025) 543  

EN 

15 

  EN 

 
funding  should  take  due  account,  in  the  budgetary  procedure,  of  the  evolving  policy 
needs  and  Union’s  priorities  as  identified  in  relevant  documents  published  by  the 
Commission  while  ensuring  the  necessary  predictability  for  the  implementation  of 
investments.  

(17)  The  ECF  should  facilitate  access  to  funding  from  Union  programmes  through  user-
centric, fast, simpler and harmonised procedures and improve coherence among Union 
instruments and with Member States investments. The ECF should put beneficiaries of 
Union  funding,  and  notably  industry,  SMEs,  start-ups  and  scale-ups,  including  those 
established  under  the  upcoming  28th  regime,  at  the  centre  of  the  design  of  Union 
funding instruments. 

(18)  The ECF should operate through four policy windows that mirror Union’s key policy 
priorities:  Clean  Transition  and  Industrial  Decarbonisation;  Digital  Leadership; 
Health,  Biotech,  Agriculture  and  Bioeconomy;Resilience  and  Security,  Defence 
industry and Space.  

(19) 

Infrastructure  is  an  essential  enabler  for  European  competitiveness.  Investments  in 
infrastructure are a necessary condition  for the proper functioning  of the EU's single 
market,  the green and digital transition  and for increasing  the Union’s resilience and 
security. For example, the trans-European transport network fosters sustainable forms 
of  transport,  promotes  improved  multimodal  and  interoperable  digital  and  transport 
solutions,  thereby  contributing  to  a  smooth  functioning  of  the  internal  market.  The 
trans-European networks for energy are key for a genuine Energy Union to enable the 
Union’s energy and climate objectives by connecting Union countries’ electricity and 
clean  energy  networks  to  ensure  our  energy  independence  and  competitiveness.  For 
this,  the  development  of  cross-border  interconnectors,  domestic  transmission  and 
distribution  grids  is  essential.  The  ECF  support  will  work  in  coherence  and 
complementarity  with  the  Connecting  Europe  Facility  (CEF).  It  is  essential  for 
Europe’s competitiveness to provide for synergies between the development of trans-
European networks in energy and transport with strong cross-border impact supported 
by CEF, and investment support for the decarbonisation, modernisation and expansion 
of transport, energy and digital infrastructure under ECF. 

(20)  Furthermore,  Trans-European  digital  networks  are  essential  to  interconnect  national 
and international telecommunication networks, enabling seamless, secure cross-border 
access to high-performance computing, cloud, data and AI capacities. In this regard, it 
is  essential  to  develop,  protect  and  maintain  the  infrastructures  for  competitiveness, 
such  as  terrestrial  backbone  networks  and  submarine  cable  infrastructures,  ensuring 
continuity of service in case of incidents as well as increasing the detection capacities 
in sea basins to enhance undersea cables, as highlighted by the Joint Communication 
‘EU Action Plan on Cable Security’. 

(21)  The  competitive  strength  of  the  Union  lies  in  its  people.  The  Competitiveness 
Compass  identifies  promoting  skills  and  quality  jobs  as  a  horizontal  enabler.  The 
European  Council  Conclusions  highlight 
the  Commission 
communication of 5 March 2025 on a Union of Skills, further efforts should be made 
to enhance the acquisition, recognition and retention of skills across the EU, from the 
building of basic skills to engaging in life-long learning, reskilling and upskilling, in 
line with the European Pillar of Social Rights and its Action Plan”. A strong dialogue 
is  part  of  this.  Human  capital  is  key  to  the  prosperity  of  the  Union,  its  economic 
resilience  and  unique  social  market  economy.  It  is  essential  to  foster  prosperity, 
including high quality jobs, by boosting productivity growth, making Union industries 

that  “following 

EN 

16 

  EN 

more competitive and innovative,  attracting additional investments,  and supporting  a 
dynamic single market and enhanced economic security. The ECF should contribute to 
the  Union  of  Skills21by  supporting  the  development  of  a  skilled  workforce  equipped 
with  the specific skills  needed in  the strategic investment  areas of the Fund, through 
life-long learning, education, training projects and apprenticeships, and the creation of 
attractive  quality  jobs  accessible  to  all  and  by  accompanying  ECF  investments  with 
skills investment to alleviate skills shortages in the given strategic sector of the ECF 
and indicate when it is included. This includes  a Skills Guarantee that should enable 
workers in sectors undergoing restructuring to upskill and reskill, in line with relevant 
national,  regional and/or sectoral  transition  strategies.  The ECF should support skills 
intelligence,  upskilling  and  reskilling,  and  foster  public-private  partnerships  between 
universities,  VET  providers,  businesses,  in  particular  SMEs,  social  partners  and 
applied  research  institutes.  The  ECF  could  also  support  activities  of  University 
Alliances, also in cooperation with employers, to improve their delivery on innovation 
and the development of skills and talent. 

(22)  The  ECF  should  contribute  to  the  objectives  of decarbonising  the  European  industry 
by  promoting  the  development  and  deployment  of  clean  technologies.  The  ECF  will 
support  the  implementation  of  the  Clean  Industrial  Deal,  turning  the  clean  transition 
and  decarbonisation  into  a  driver  of  growth  and  competitiveness  for  European 
industries. To this end, the ECF will support decarbonisation with a technology neutral 
approach, while recognising a contribution of different technologies to grid balancing 
and  sector  coupling,  to  align  in  particular  with  the  investment  needs  of  energy 
intensive sectors. Furthermore, it should advance the implementation of the Affordable 
Energy  Action  plan,  ensuring  secure,  affordable,  efficient  and  clean  energy  for  all 
Europeans.  The  ECF  will  contribute  to  the  shift  towards  a  decarbonised,  circular, 
resource-efficient, climate-neutral, water resilient and bio-based economy. It will also 
support  sustainable,  nature-positive  and  resilient  industrial  production  in  energy-
intensive  industries  in  the  Union,  in  line  with  the  objectives  of  the  forthcoming 
proposal for the Industrial Decarbonisation Accelerator Act. It should also support the 
objectives of the Regulation (EU) 2024/172422 of the European Parliament and of the 
Council  (Net-Zero  Industry  Act),  boosting  the  manufacturing  capacity  of  net-zero 
technologies  and  the  ramp  up  of  production  capacities  and  investing  in  related 
infrastructure. To decarbonise the transport sector, amongst  others  the ECF will also 
invest in sustainable fuels, the related infrastructure and mobile assets as well as in the 
modernisation and digitisation of transport.  

(23)  The  ECF  will  also  contribute  to  protect,  restore  and  improve  the  quality  of  the 
environment,  including  water,  coast,  sea  and  soil,  to  reduce  pollution,  to  halt  and 
reverse  biodiversity  loss  and  tackle  the  degradation  of  terrestrial  and  marine 
ecosystems, while enhancing climate and water resilience. The ECF Clean Transition 
and  Decarbonisation  window  should  finance  projects  that  contribute  to  these 
objectives.  

21 

22 

Communication from the Commission to the European Parliament, the European Council, the Council, 
the European Economic and Social Committee and the Committee of the Regions, The Union of Skills, 
COM(2025) 90 final, 5.3.2025. 
Regulation  (EU)  2024/1735  of  the  European  Parliament  and  of  the  Council  of  13  June  2024  on 
establishing  a  framework  of  measures  for  strengthening  Europe’s  net-zero  technology  manufacturing 
ecosystem  and  amending  Regulation  (EU)  2018/1724  (OJ  L,  2024/1735,  28.6.2024,  ELI: 
http://data.europa.eu/eli/reg/2024/1735/oj). 

EN 

17 

  EN 

 
(24)  Projects  and  activities  under  the  Clean  Transition  and  Industrial  Decarbonisation 
window shall promote energy efficiency, integrated renewable energy,  new energies, 
energy renovations, and innovative heating and cooling solutions.  

(25)  Union manufacturing productivity also depends on resource efficiency, with materials 
input  representing  a  signification  portion  of  production  costs.  Circular  approaches  to 
products  and  manufacturing  boost  resource  productivity,  whilst  value  retention 
activities  such  as  remanufacturing,  refurbishment  and  repair  provide  significant  job 
opportunities.  The  ECF  should  contribute  to  the  bioeconomy,  circular  economy  and 
access to materials including biomaterials. 

(26)  The  Union  can  become  a  global  leader  in  digital  technologies,  such  as  artificial 
intelligence,  digital  identity,  semiconductors,  robotics,  quantum  technologies,  space 
technologies  and  others  by  harnessing  the  untapped  potential  of  our  researchers  and 
industries.  The  ECF  should  promote  the  development  and  deployment  of  digital 
solutions  and  infrastructures  and  capacities  across  the  Union  for  the  benefit  of  the 
European society and economy. 

(27)  Chronic underinvestment in the European tech sector is one of the main reasons for the 
lack  of  competitiveness  of  the  Union,  as  compared  to  our  global  competitors. 
Moreover,  European  sovereignty  in  digital  technologies  and  infrastructures  has 
become key for our resilience, security and for democracy, as highlighted in the 2025 
State of the Digital decade report which also underlined the remaining significant gaps 
to  reach  Union’s  2030  goals,  notably  for  the  development  of  Artificial  Intelligence 
(AI) and space technologies, semiconductors, 5G and digital skills. 

(28)  While Europe’s digital transformation is accelerating, the many critical dependencies 
on non-Union suppliers (from raw materials, advanced semiconductors, and AI chips 
to systems, infrastructures and services) require European alternatives that anchor the 
digital  transformation  in  Europe’s  economy,  with  our  shared  values  as  the  essential 
differentiator, including by leveraging the power of open-source technologies. Support 
for  digital  leadership  is  driven  by  regulatory  and  non-regulatory  Union  policy 
initiatives in the digital area such as the AI Act, AI Continent and AI Action Plan, the 
Apply AI Strategy, the Cloud and AI Development Act, the Data Union Strategy, the 
Digital  Networks  Act,  the  EU  Quantum  Strategy  and  the  Quantum  Act,  the  Cyber-
Solidarity Act, the Cyber-Resilience Act and the Cybersecurity Act, the White Paper 
for European Defence-Readiness 2030, and the revision of the EU Chips Act, and by 
future  policy  initiatives.  The  digital  areas  to  invest  in  include  a  number  of  critical 
frontier technologies such as Artificial Intelligence (AI) and AI-powered digital twins, 
robotics, semiconductors, autonomous or quantum technologies. They also include key 
infrastructures  such  as  digital  identity,  cloud,  high  performance  and  quantum 
computing,  communication,  advanced  underwater  observation  infrastructure,  and 
sensing  infrastructures,  digital  connectivity  networks,  including  submarine  cables,  as 
well as cybersecurity, defence or space capacities. Fostering their uptake across private 
and public sectors makes our entire economy more competitive, secure, sovereign, and 
sustainable,  fortifying  societal  resilience  and  preparedness.  Moreover,  interoperable 
digital technologies are driving the modernisation of the public sector, serving for the 
integration  of  the  single  market,  which  is  our  most  valuable  stepping  stone  for 
European digital start-ups to become globally competitive. Technological progress and 
innovation 
their  productivity  and 
competitiveness, are  essentially  driven  by  the  integration  of  sector-specific  digital 
developments and use of digital solutions that should be supported across the ECF.  

in  every  economic 

sector,  and 

thus 

EN 

18 

  EN 

(29)  Technological  progress  and  innovation  in  every  economic  sector,  and  thus  their 
productivity  and  competitiveness  are  essentially  driven  by  the  integration  of  sector-
specific  digital  developments  and  use  of  digital  solutions  that  should  be  supported 
across  the  Fund  in  the  context  of  the  activities  developed  in  the  different  policy 
windows  of  the  EDependency  on  high-risk  suppliers  in  critical  sectors  can  pose  a 
strategic risk of foreign interference and jeopardise the Union’s security, resilience and 
sovereignty. The NIS Cooperation Group, in cooperation with the Commission and the 
European Union Agency for Cybersecurity (ENISA), plays a key role in carrying out 
EU Coordinated security risk assessments of critical supply chains, taking into account 
technical and, where relevant, non-technical risk factors in accordance with Article 22 
of  Directive  (EU)  2022/2555.23  In  accordance  with  Article  136  of  the  Financial 
Regulation,  eligibility  restrictions  can  apply  to  high-risk  suppliers,  for  security 
reasons..  

(30)  Europe  must  protect  its  security  interest  against  suppliers  which  could  represent  a 
persistent security risk due to the potential interference from third countries as well as 
their  security,  notably  cybersecurity.  It  is  therefore  necessary  to  reduce  the  risk  of 
persisting  dependency  on  high-risk  suppliers  in  the  internal  market,  including  in  the 
ICT supply chain, as they could have potentially serious negative impacts on security 
for  users  and  companies  across  the  Union  and  the  Union’s  critical  infrastructure  in 
terms  of the integrity of data and services as well as the availability of service.  This 
restriction  should  be  based  on  a  proportionate  risk  assessment  and  associated 
mitigation measures as defined in the Union policies and laws.  

(31)  A  successful  deployment  of  interoperability  across  borders  and  sectors  has  a 
substantial,  untapped  potential,  especially  for  the  competitiveness  of  European 
businesses.  Therefore,  it  is  imperative  to  invest  in  the  development  of  pan-European 
digital public infrastructures encompassing interoperable, secure and sovereign digital 
networks, solutions and services to address the fragmented interoperability landscape 
across  the  Union,  notably  to  transform  the  Member  States’  public  sector  into  an 
interconnected,  frictionless,  and  agile  digital  ecosystem.  The  implementation  of 
interoperability by European public administrations at all levels is a precondition for a 
resilient and innovation-driven public sector which contributes to the Union’s goals of 
competitiveness, technological sovereignty and security.  

(32)  To improve public health and strengthen the competitiveness of the Union, it is crucial 
to  tackle the rise of communicable and non-communicable diseases through targeted 
health  promotion  and  disease  prevention  strategies  and  continued  investments, 
including  into  the  pharmaceutical  and  medical  devices  sectors.  Such  action,  coupled 
with  fostering  effective,  accessible,  and  resilient  health  systems,  can  significantly 
boost  workforce  productivity  by  improving  population  health  and  alleviating  labour 
shortages,  while  also  supporting  health  systems  that  drive  innovation.  Leveraging 
health data is essential in those efforts, enabling informed decision-making. Moreover, 
from  medical 
fostering 
breakthroughs to marketable solutions is key to enhancing Union competitiveness and 
also beneficial to reinforcing supply security. 

innovation  by  solidifying 

the  evidence-based  path 

23 

Directive  (EU)  2022/2555  of  the  European  Parliament  and  of  the  Council  of  14 December  2022  on 
measures  for  a  high  common  level  of  cybersecurity  across  the  Union,  amending  Regulation  (EU) 
No 910/2014 and Directive (EU) 2018/1972, and repealing Directive (EU) 2016/1148; Text with EEA 
relevance, ELI: http://data.europa.eu/eli/dir/2022/2555/2022-12-27. 

EN 

19 

  EN 

 
is  already  reshaping 

(33)  The bioeconomy is a growth engine that allows Europe to make a success of the green 
transition,  strengthen its competitiveness  and strategic autonomy. Although  Europe’s 
bioeconomy 
industrial  ecosystems,  reinforcing  strategic 
autonomy,  and  unlocking  value  across  strategic  sectors,  it  is  crucial  to  strengthen 
investments, initiatives and strategies at Union and Member State level to bring it from 
niche  to  norm  across  Union  sectors  and  regions  to  realise  its  potential,  and  in 
particular  for  key  industries.  There  is  a  need  to  foster  the  competitiveness, 
sustainability,  resilience  and  fairness  of  the  agricultural,  fisheries,  aquaculture  and 
forestry sectors, of rural and coastal areas and to contribute to long-term food security 
in the Union. 

(34) 

Investments,  initiatives  and  strategies  are  needed  to  close  the  innovation  gap  and 
the  discovery,  development,  derisking,  demonstration,  scale-up  of 
accelerate 
bioeconomy innovations, to support their market uptake, to provide finance along the 
innovation  journey  for  start-ups  and  for  scaling  up  high  growth  companies,  to 
maximise resource efficiency and to secure sustainably sourced biomass  supply. The 
bioeconomy  contributes  to  decarbonisation,  by  providing  sustainable  alternatives  to 
fossil-based products and processes, but also to circularity, the clean transition, carbon 
farming, biodiversity, ecosystem services, and nature restoration.  

(35)  Fostering the resilience of the European industry is essential for the Union to remain 
competitive even in times of crisis and is essential for Union’s security. To ensure its 
resilience, the ECF should support actions aimed to reduce dependencies and diversify 
supply in strategic sectors such as the raw materials sector, thus reinforcing the Union 
capacities  for  a  secure  supply  of  sustainable  critical  raw  materials  along  the  whole 
value  chain  in  line  with  the  objectives  of  the  Regulation  (EU)  2024/1252  of  the 
European  Parliament  and  of  the  Council  (Critical  Raw  Materials  Act)24  and  the 
chemicals  industry,  underpinning  almost  all  industry  sectors.  Pursuing  an  ambitious 
and mutually beneficial trade agenda is essential for the Union’s ability to diversify its 
supply chains and effectively reduce dependencies. 

(36) 

In  addition,  the  geopolitical  context,  in  particular  Russia’s  war  of  aggression  against 
Ukraine, has exposed the Union and its Member States to a high risk of materialisation 
of conventional military threats,  in particularly to the ones bordering Russia, Belarus 
and Ukraine, thereby deeming increased investment in defence a priority and support 
for  projects  such  as  the  Baltic  Defence  Line  and  Eastern  Border  Shield.  Defence 
industry and space are key ecosystems to ensure the European Union’s resilience and 
strategic autonomy and increase the Union’s  readiness and preparedness  in line with 
the  White  Paper  for  European  Defence  –  Readiness  2030.25  It  also  supports  the 
Union’s focus on sustainability, competitiveness, resilience and security and the Union 
position in the world. A strong European Defence Technological and Industrial Base 
(EDTIB) is an indispensable prerequisite of defence readiness and credible deterrence. 
It is also essential for the protection of European citizens, ensuring the Union’s ability 
to respond to emerging security challenges, to support Ukraine, and to uphold Europe's 
position as a global actor. The EDTIB is recognised as a strategic asset, contributing to 

24 

25 

Regulation  (EU)  2024/1252  of  the  European  Parliament  and  of  the  Council  of  11  April  2024 
establishing  a  framework  for  ensuring  a  secure  and  sustainable  supply  of  critical  raw  materials  and 
amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020 (Text 
with EEA relevance), OJ L, 2024/1252, 3.5.2024, ELI: http://data.europa.eu/eli/reg/2024/1252/oj 
Commission,  the  High  Representative  have  present,  White  Paper  for  European  Defence  –  Readiness 
2030, 19.03.2025. 

EN 

20 

  EN 

 
the Union’s economic resilience and security, innovation, technological leadership and 
strategic  autonomy.  Across  the  Union  and  its  Member  States,  the  defence  sector  is 
evolving  rapidly,  with  cutting-edge  technologies  and  new  actors  playing  an 
increasingly  important  role.  Innovation  cycles  are  also  accelerating,  with  growing 
emphasis  on  rapid  prototyping,  testing  and  validation,  including  in  real  operational 
environments.  To  improve  military  mobility,  investments  in  new  civilian-military 
assets,  including  mobile  assets  and  dual  use  infrastructure  need  to  be  developed. 
Coordinated  and  sustained  support  to  the  EDTIB  is  therefore  key  to  reinforce  the 
collective  security  of  the  Union  and  its  Member  States,  the  development  of  Union-
wide defence projects of common interest, and Europe’s defence readiness. In relation 
to  this,  actions  supporting  the  reinforcement  of  the  Ukrainian  defence  technological 
and industrial base should be also financed, as its industry will be essential to support 
European increased defence needs. To this end, the ECF shall be implemented taking 
into  account  the  objectives  of  the  Strategic  Compass  for  Security  and  Defence  and 
shall be consistent with the defence capability priorities commonly agreed by Member 
States within the framework of the Common Foreign and Security Policy (CFSP). 

(37)  Union  Space  technology,  data  and  services  have  become  indispensable  in  the  daily 
lives  of  Europeans  and  play  an  essential  role  in  preserving  strategic  interests.  Space 
contributes  to  all  sectors  of  the  economy  from  agriculture  to  banking.  It  is  a  critical 
enabler for security and defence, and for the well-functioning and competitiveness of 
the economy for example by providing accurate position-services for a broad spectrum 
of sectors and users, ranging from aviation to maritime, and thereby playing a key role 
for Europe and European citizens’ independence and sovereignty. Space is crucial for 
the  achievement  of  EU's  priorities  and  its  strategic  goals,  including  for  economic 
prosperity and economic security, decarbonisation, green and digital transition. Space 
contributes to the economic security of the Union and its Member States. It also drives 
scientific research and technological innovation, with spill-over effects in a wide range 
of  sectors.  Finally,  space  offers  a  platform  for  international  cooperation  and  space 
diplomacy to underpin the Union’s position as a reliable partner on the global scene. 

(38)  Space  components  under  the  ECF  are  sensitive.  Their  services  must  be  robust  and 
completely reliable. The continuity of their services and a high-level of security must 
be ensured, even in the most serious crisis situations. The consequences of infringing 
those conditions could potentially have dramatic consequences for the security of the 
Union  and  its  Member  States.  To  that  end,  specific  provisions  for  specific 
circumstances should apply. 

(39)  The ECF should also  support the policy goals  of a safer, more secure Europe that is 
better prepared against security threats, in particular by enhancing European industry 
competitiveness  and  strategic  autonomy,  including  maritime  and  customs  security, 
critical  energy  and  transport  infrastructure  and  civil  preparedness.  To  address 
increasing  security  and  hybrid  threats  like  terrorism,  organised  crime,  cybercrime, 
climate  disasters  and  attacks  on  critical  infrastructure,  the  ECF  should  support 
Europe’s  efforts  to  increase  its  threat  awareness,  build  resilience  and  boost  security 
investments, and promote preparedness by design across relevant sectors.  

(40) 

Increasingly, we see the same technologies used for market and defence applications, 
often  driven  by  startups  innovators.  It  is  therefore  imperative  to  seek  measures  to 
better exploit the potential civil-defence synergies and of dual-use technologies. Dual-
use technologies, materials, knowledge, or products that can be used for both civilian 
and military purposes may be supported across the ECF, to ensure a better connection 

EN 

21 

  EN 

of  the  Union’s  technological  industry  to  its  defence  industrial  base  as  well  as  to  the 
technological innovation capital of Europe. 

(41)  To ensure predictability for stakeholders and provide a sufficient level of certainty for 
investment  planning, the  ECF should set  out  an indicative budget  distribution across 
the  policy  windows  for  the  period  2028  to  2034  while  maintaining  flexibility  to 
reallocate  parts  of  the  budget  in  accordance  with  new  challenges  and  emerging 
priorities  throughout  the  duration  of  the  Multiannual  Financial  Framework.  To  this 
extent, it should be ensured that a  certain  minimum  budget  envelope is  available for 
long-term  planning  and  commitments  broken  down  over  several  years  into  annual 
instalments in each policy window, allowing the Union to consolidate its demand and 
enter into strategic long-term relations with recipients give long-term predictability to 
industry  and  financial  ecosystem,  and  enable  the  setup  of  important  Union 
infrastructures,  such  as  for  hydrogen  and  industrial  carbon  management,  world-class 
satellite 
cybersecurity, 
observation 
semiconductors  quantum,  AI  and  high-performance  computing  or  critical 
infrastructure, and defence or space projects of common interest. 

infrastructures, 

underwater 

systems, 

(42)  To  achieve  the  important  objectives  and  manage  the  ECF,  a  sufficient  level  of 
resources for the implementation of the ECF should be provided. The budget envelope 
should therefore provide a sufficient contribution to the cost of managing the ECF. 

indirect  management, 

(43)  Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council 
applies  to  this  basic  act.  It  lays  down  the  rules  on  the  establishment  and  the 
implementation  of  the  general  budget  of  the  Union,  including  the  rules  on  grants, 
prizes,  non-financial  donations,  procurement, 
financial 
instruments and budgetary guarantees. In accordance with Regulation (EU, Euratom) 
2024/2509,  Regulation  (EU,  Euratom)  No  883/2013  of  the  European  Parliament  and 
of the Council,26 Council Regulation (EC, Euratom) No 2988/95,27 Council Regulation 
(Euratom, EC) No 2185/9628 and Council Regulation (EU) 2017/1939,29 the financial 
interests  of  the  Union  are  to  be  protected  through  proportionate  measures,  including 
the  prevention,  detection,  correction  and  investigation  of  irregularities  and  fraud,  the 
recovery  of  funds  lost,  wrongly  paid  or  incorrectly  used  and,  where  appropriate,  the 
imposition  of  administrative  sanctions.  In  particular,  in  accordance  with  Regulations 
(EU, Euratom) No 883/2013 and (Euratom, EC) No 2185/96, the European Anti-Fraud 
Office  (OLAF)  may  carry  out  investigations,  including  on-the-spot  checks  and 
inspections,  with  a  view  to  establishing  whether  there  has  been  fraud,  corruption  or 
any other illegal activity affecting the financial interests of the Union. In accordance 

26 

27 

28 

29 

L 

248, 

1074/1999 

(Euratom)  No 

Regulation  (EU,  Euratom)  No  883/2013  of  the  European  Parliament  and  of  the  Council  of  11 
September 2013 concerning  investigations conducted by the European Anti-Fraud Office (OLAF) and 
repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council 
Regulation 
ELI: 
(OJ 
http://data.europa.eu/eli/reg/2013/883/oj). 
Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European 
Communities 
ELI: 
http://data.europa.eu/eli/reg/1995/2988/oj). 
Council  Regulation  (Euratom,  EC)  No  2185/96 of  11  November  1996  concerning on-the-spot  checks 
and inspections carried out by the Commission in order to protect the European Communities' financial 
interests 
2,  ELI: 
irregularities 
other 
http://data.europa.eu/eli/reg/1996/2185/oj). 
Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced  cooperation  on  the 
establishment  of  the  European  Public  Prosecutor’s  Office  (‘the  EPPO’)  (OJ  L  283,  31.10.2017,  p.  1, 
ELI: http://data.europa.eu/eli/reg/2017/1939/oj). 

292,15.11.96, 

18.9.2013, 

23.12.95, 

financial 

interests 

(OJ  L 

against 

fraud 

312, 

and 

(OJ 

1, 

1, 

p. 

p. 

p. 

L 

EN 

22 

  EN 

 
with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) is 
competent to investigate and prosecute fraud and other criminal offences affecting the 
financial  interests  of  the  Union  as  provided  for  in  Directive  (EU)  2017/1371  of  the 
European  Parliament  and  of  the  Council.30  In  accordance  with  Regulation  (EU, 
Euratom) 2024/2509, any person or entity receiving Union funds is to fully cooperate 
in  the  protection  of  the  Union’s  financial  interests,  to  grant  the  necessary  rights  and 
access to the Commission, OLAF, the European Court of Auditors and, as appropriate, 
to  the  EPPO,  and  to  ensure  that  any  third  parties  involved  in  the  implementation  of 
Union funds grant equivalent rights. 

(44)  To promote the Union’s competitiveness, in addition to its budget, wherever possible 
the  ECF  should  attract  and  generate  additional  assigned  external  revenues.  In  this 
respect,  the  ECF  should  be  open  and  facilitate  synergies  and  cooperation  for  any 
financial  or  non-financial  contributions  that  can  support  the  competitiveness 
objectives, 
international 
organisations. 

including  from  Member  States, 

third  countries  and 

(45)  To  promote  the  resilience  of  the  Union  economy,  notably  by  reducing  strategic 
dependencies, the ECF should enable Union preference for support to manufacturing 
and  developing  strategic  technologies  and  sectors  located  in  the  Union,  notably  for 
actions related to  Union strategic assets, interests, autonomy or security,  in line with 
Union  law  and  its  international  commitments.  It  is  essential  that  European  funding 
contributes to the uptake of strategic technologies developed in the Union and funded 
through  European  funding.  To  support  the  development  and  manufacturing  in  the 
Union  of  strategic  technologies  funded  by  the  Union,  the  ECF  should  allow  to 
condition its support through control restrictions, asset transfers restrictions and supply 
restrictions to the use of specific products and technologies.  

(46)  ECF activities should be open for cooperation with third countries where this is in the 
interest of the Union. To that extent, the Union may associate, fully or partially, third 
countries  to  the  activities  under  the  ECF.  Association  should  be  subject  to  a  fair 
balance  as  regards  contributions  and  benefits  of  the  third  countries  and  ensure  the 
protection of the financial and, where relevant, security interest of the Union.  

(47)  The  ECF  should  be  open  and  facilitate  synergies  with  other  Union  activities  that 
support policy areas closely linked with competitiveness, the including the Framework 
Programme for Research and Innovation, external policies and programmes in shared 
management  with  Member  States.  This  should  allow  for  the  combination  and 
cumulation  of  funding  for  actions  supporting  the  objectives  of  more  than  one  Union 
policy  area.  Cooperation  between  the  Commission  and  Member  States  should  be 
established  to  ensure  consistency  and  complementarities  between  the  ECF  and  the 
Regulation (EU) [XXX] [National and Regional partnership plans] Moreover, support 
from  the  Regulation  (EU)  [XXX]  [National  and  Regional  Partnership  Plans  ]  and 
from the ECF to projects that have been awarded the Competitiveness Seal should be 
facilitated, taking advantage of the assessment conducted prior to the attribution of the 
Seal  and  without  prejudice  to  the  State  aid  rules.  The  criteria  for  awarding  the 
Competitiveness  Seal  should  be designed in  a manner that can enable to  seal  to  also 
act  as  a  quality  guarantee  providing  assurances  to  institutional  investors  that  the 

30 

Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight 
against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29, 
ELI: http://data.europa.eu/eli/dir/2017/1371/oj). 

EN 

23 

  EN 

 
project has been appropriately vetted. The Competitiveness Seal should be awarded to 
high  quality  projects  contributing  to  the  objectives  of  the  ECF.  The  ECF  may  be 
implemented jointly with other Union programmes or other co-donors or co-investors, 
and  those  partners  should  be  able  to  participate  in  evaluation  committees  for  jointly 
funded award procedures. The implementation of all those synergy activities should be 
simple. Reporting and record-keeping  requirements  for recipients  should be reduced, 
where possible to a single contractual reporting and payment stream with a single set 
of rules for all support provided. 

(48)  Union support should focus on the achievement of policy objectives. In all cases, ECF 
funding  should  be  provided  in  the  form  best  able  to  achieve  its  objectives,  while 
limiting  administrative  burden  for  recipients  to  the  absolute  minimum.  When 
implementing  the  budget,  the  ECF  should  provide  the  full  toolbox  of  Union  support 
and  ensure  synergies  between  its  supported  policies,  in  particular  by  allowing  for 
simplified common award procedures to pursue objectives of more than one policy. As 
such,  the  elimination  of  burdensome  financial  reporting  through  the  widest  possible 
use  of  financing  not  linked  to  cost  should  be  pursued  as  a  major  simplification 
measure.  

(49)  The  ECF  should  support  a  diverse  set  of  policies  contributing  to  competitiveness, 
while providing a harmonised baseline set of eligibility criteria to provide policy steer 
and  ensuring  a  sufficient  level  of  protection  of  economic  and  security  interests  by 
focusing  Union  support  on  recipients  in  the  Member  States,  including  Overseas 
Countries  and  Territories.  Where  necessary,  the  ECF  should  establish  specific 
eligibility conditions for strategic sectors and technologies, including underlying value 
chains, critical Union infrastructures and specific capabilities. 

(50)  The  ECF  should  be  implemented  through  work  programmes  as  set  out  in  this 
Regulation.  Work  programmes  could  be  adopted  under  an  annual  or  multi-annual 
format. The latter could in particular be considered for the purposes of Union support 
provided  for  budgetary  guarantees  and  financial  instruments,  with  a  view  to  provide 
predictability  to  implementing  partners.  The  designated  mode  of  implementation 
reflects the identified needs for directionality, flexibility, predictability and efficiency, 
required to meet the objectives of the Regulation. In accordance with Regulation (EU 
Euratom) 2024/2059, the work programmes and the call documents will set out more 
technical implementation details for the budget across the set of policies supported by 
the ECF, including specific eligibility and award criteria depending on the instrument 
of  budget  implementation,  be  it  grant,  or  procurement,  and  the  specific  policy 
objectives pursued. Work programmes are also the appropriate place to allocate budget 
in  accordance  with  evolving  policy  priorities,  and  they  should  set  out  contributions, 
specific conditions and expected results.  

(51)  For financial instruments and the budgetary guarantee to effectively crowd in private 
money, implementing partners need to be closely associated. This ensures policy steer 
and  alignment,  as  well  as  project  pipeline  generation.  The  experience  and  lessons 
learnt with the implementation of the InvestEU Programme emphasise the importance 
of  investment  guidelines  in  creating  this  buy-in  and  providing  the  necessary 
predictability  and  visibility  to  the  implementing  partners  and  investors,  in  order  for 
them to set up their organisational capacity and originate the pipeline of investments, 
while  allowing  the  necessary  flexibility  to  ensure  an  adequate  policy  steer  during 
implementation.  Investment  guidelines  should  include  detailed  description  of  the 
policy areas of intervention and investment focus with a view to ensuring additionality 
and  incentivise  crowding  in  private  and  public  investment  in  support  of  the  Union’s 

EN 

24 

  EN 

policy objectives and strategic projects. The investment guidelines should be prepared 
in  consultation  with  implementing  partners  to  benefit  from  their  market  knowledge, 
and enable them to invest in Union priority areas and incentivise them for more risk 
taking. To cater for evolving needs and developments, the investment guidelines may 
be reviewed in the context of the MFF mid-term review. 

(52)  Deep-tech scale-up financing under the Scaleup Europe Fund announced in the Startup 
Scaleup Strategy, existing at the time of the entry into force of the present Regulation, 
should  be  carried  out  under  the  terms  agreed  in  the  MFF  2021-2027.  All  scaleup 
financing under the MFF 2028-2034 should take place under the ECF. 

(53)  To  deliver  on  the  objective  of  translating  research  results  into  markets  and 
strengthening  Union’s  industrial  presence  in  strategic  technologies  and  sectors,  
Regulation  (EU)  [XXX]  [Horizon  Europe  framework  programme  for  Research  and 
Innovation] will be tightly linked with ECF and will support research and innovation 
activities  as  laid  down  by  the  policy  windows  of  ECF.  The  ECF  work  programmes 
will include collaborative research and innovation actions, in a specific dedicated part. 
This  may  also  include  contributions  to  European  Partnerships  established  under  the 
Framework Programme for Research and Innovation, where necessary to achieve the 
ECF objectives. The ECF work programmes should also set out policy priorities that 
will steer EIC challenges. 

(54) 

(55) 

In  order  to  foster  resilient  Union  value  chains  spanning  across  multiple  Member 
States,  the  work  programmes  may  include  special  value-chains  scale  up  calls  which 
shall support both. project preparation and crowding in of additional public and private 
capital  to  integrate  suppliers,  manufacturers,  and  innovators  from  different  Member 
States and diversify sources of supply.  

In  order  to  foster  competitiveness  of  European  industry  through  industry-driven 
bottom-up  innovation,  the  work  programmes  may  include  special  2-stage  bottom-up 
award  procedures  to  identify  and  support  EU  Tech  frontrunners  through  industry-
driven consortia. 

(56)  A  horizontal,  cross-cutting  funding  toolbox  should  be  set  at  the  service  of  all  policy 
windows,  offering  every  form  of  support  allowed  by  Regulation  (EU,  Euratom) 
2024/2059,  such  as  financial  instruments,  including  support  provided  in  the  form  of 
equity. The choice of the specific funding instrument and in particular whether support 
will  be  repayable  or  not,  shall  depend  on  the  nature  of  the  actions  to  be  funded  (for 
example underlying market failures, the specific need, the nature of the industry, the 
stage of development or type of the beneficiary). Union support should derisk projects 
to  the  degree  necessary  for  the  private  sector  to  invest  and  for  the  project  to  be 
successfully delivered. Co-financing rates should be as low as possible and as high as 
needed  to  realise  the  supported  project.  A  mix  of  funding  tools  could  be  used, 
including  blending  operations  and  combination  of  funding.  The  ECF  should  also 
provide each policy area with advice on the most appropriate funding tool to be used 
for  its  specific  actions,  depending  on,  inter  alia,  the  development  stage,  the  specific 
industry needs and underlying market failures. 

(57)  Multistakeholder consultations, including those of researchers and industry, the social 
partners,  as  well  as  investors,  end-users  and  civil  society,  from  SME,  small  to  large 
organisations,  should  contribute  to  the  priorities  of  the  ECF.  Those  consultations 
should be structured via advisory boards including the ECF Stakeholder Board whose 
task  should  be  to  provide  insights  and  advise  the  Commission  on  policy  trends,  on 
investment  needs,  and  on  the  implementation  of  the  ECF  from  the  perspective  of 

EN 

25 

  EN 

(58) 

project promoters, with the aim to ensure that feedback from stakeholder communities 
is reflected in the design of work programmes.  

Important Projects of Common European Interest (IPCEIs) are a  state aid instrument 
and  industrial  policy  tool  assessed  by  the  Commission  pursuant  to  Article  107(3), 
point (b), TFEU31. They contribute significantly to economic growth, job creation, the 
green  and digital transition  and competitiveness  and resilience of the  Union industry 
and  economy.  IPCEIs  make  it  possible  to  bring  together  knowledge,  expertise, 
financial  resources,  and  economic  actors  throughout  the  Union  and  create  positive 
spillover  effects  for  the  entire  Union.  IPCEIs  also  allow  to  crowd-in  private 
investments  in  high-risk  projects  that  are  essential  to  bring  breakthrough  innovation 
closer to industrial deployment and infrastructures projects of great importance to the 
Union  with  open  and  non-discriminatory  access.  Given  the  commonalities  of 
objectives pursued, the ECF will foster synergies between Union funding and IPCEIs 
by supporting specific projects integrated within IPCEIs, based on their contribution to 
Union  strategic  priorities,  such  as  the  resilience  of  the  Union,  and  on  the  ability  of 
ECF  financing  to  broaden  participation,  notably  of  SMEs,  or  broaden  Member  State 
coverage, as well as increase Union added value. 

(59)  The  ever-evolving  geopolitical  situation  underlines  the  need  for  Europe  to  ensure  its 
own  strategic  autonomy  and  avoid  strategic  dependencies.  The  ECF  will  include  the 
possibility to  support production ramp  up and undertake accelerated competitiveness 
actions for projects that offer specific support to European strategic autonomy. This is 
for example the case for projects that have been selected as strategic under Regulation 
(EU) 2024/1252 (Critical Raw Materials Act), Regulation (EU) 2024/1724 (Net Zero 
Industry Act) and the Regulation (EU) 2025/102 (Critical Medicines Act). 

(60)  The  mutual  insurance  mechanism  (MIM)  set  up  pursuant  to  Horizon  Europe  and 
managed  by  the  Commission  has  proved  to  be  an  important  safeguard  mechanism 
which  mitigates  the  risks  associated  with  the  amounts  due  and  not  reimbursed  by 
defaulting participants. Therefore, the MIM should be continued and, where relevant 
open to use by actions under the ECF. 

(61)  To explore all possible venues to improve European competitiveness, the ECF should 
provide  a  structured  framework  for  targeted  experimentation  in  the  award  and 
implementation  of  Union  support,  in  particular  to  better  target  and  accelerate  Union 
award  procedures  and  simplify  and  accelerate  their  implementation  to  the  benefit  of 
recipients. This should allow, within a concretely defined frame, to specify on a case-
by-case basis certain actions or categories of actions to benefit from certain additions, 
derogations  and  exceptions  from  other  Union  legislation  and  to  test  the  impact  in  a 
real-world  environment  for  the  limited  period  of  the  duration  of  the  ECF  while 
ensuring that appropriate safeguards, in particular a common European interest, are in 
place.  The  application  of  experimental  measures  may  provide  lessons  for  the 
assessment  of  future  changes  to  the  horizontal  legal  framework  for  the  provision  of 
Union support. 

(62)  Where  necessary  and  duly  justified,  the  ECF  should  provide  a  targeted  intervention 
mechanism  to  deliberately  provide  Union  support  to  certain  actions  of  strategic  and 
economic  importance.  Where  certain  important  projects  could  not  be  successfully 

31 

Communication  from  the  Commission,  Criteria  for  the  analysis  of  the  compatibility  with  the  internal 
market  of  State  aid  to  promote  the  execution  of  important  projects  of  common  European  interest 
C/2021/8481 (OJ C 528, 30.12.2021, p. 10). 

EN 

26 

  EN 

 
implemented  within  the  timeline  for  completion  of  regular  competitive  award 
procedures,  the  ECF  should  also  provide  for  the  possibility  of  directly  taking-up 
excellent projects that remained unfunded under any Union programme or continue to 
financially  support  well-working  projects  seamlessly  in  their  next  steps  along  the 
investment  journey,  without  imposing  additional  administrative  burden  for  the 
recipients.  In  addition,  in  line  with  the  approach  taken  by  the  relevant  sectoral 
legislation, such as the Net Zero Industry Act (NZIA), the Critical Raw Materials Act 
(CRMA)  or  Renewable  Energy  Directive  (RED  III)  and  referenced  in  the  Clean 
Industrial Deal (CID) communication and the Single Market Strategy, cases in which 
specific projects are considered to be of public interest or presumed to be of overriding 
public interest may be identified in separate existing or future legislation. 

(63)  Where  necessary  and  duly  justified,  the  ECF  should  also  be  able  to  provide  an 
‘accelerated intervention’ mechanism to accelerate the provision of Union support to 
address  urgent  funding  needs  to  enable  the  successful  implementation  of  important 
business ideas in the single market where such funding is not available, at a sufficient 
level,  on  the  market.  For  this  purpose,  due  to  the  urgency,  certain  checks  should  be 
conducted only after the provision of funding, facilitating and limiting administrative 
burden for recipients  and providing financial certainty  in  the fastest  possible manner 
while accepting a reasonable level  of financial risk  to  the Union commensurate with 
the objectives pursued. 

(64)  Where  necessary  and  duly  justified,  the  ECF  should  incentivise  start-ups  and 
innovators established outside of the Union to relocate or invest, and to build up their 
business  in  the single market,  by providing an ‘inducement intervention’ mechanism 
attracting successful start-ups and innovators from all over the world, drawing also on 
its  network  of  EU  Delegation.  For  this  purpose,  the  eligibility  requirements,  for 
example as regards establishment in the Member States or associated countries at the 
start  of  Union  support,  should  be  temporarily  waived  to  allow  recipient  to  resettle 
within a set timeframe with the assurance of subsequent Union support. The financial 
interest of the Union should be duly protected, and payments should not be provided 
until the eligibility requirements are fulfilled.  

(65)  Where  necessary  and  duly  justified,  the  ECF  should  allow  for  a  more  flexible  and 
accessible way of identifying, selecting and supporting innovative projects and ideas, 
including  by  providing  for  instrument-neutral  award  procedures  that  will  allow 
researchers,  entrepreneurs,  companies  and  other  citizens  to  propose  their  innovation 
solution  without  the  initial  artificial  narrowing  or  limitation  of  Union  support  to  a 
grant,  procurement  or  other  form  of  Union  support.  Ideas  should  be  assessed  and 
selected  based  on  their  merit  in  addressing  the  respective  challenge  or  Union  policy 
priority, and the most appropriate and effective instrument of budget implementation 
to support these ideas, whether grant, procurement or others, should be selected only 
afterwards based on the requirements and merits of the individual project. 

(66)  Where necessary and duly  justified, the ECF should  also  simplify and accelerate the 

implementation of Union support for certain important projects. 

(67)  The  ECF  InvestEU  Instrument  should  provide  the  budgetary  guarantee  and  financial 
instruments  to  mobilise  additional  investment  across  the  Union  to  support  European 
competitiveness in strategic technologies, services and sectors.  

(68)  The  ECF  InvestEU  Instrument  will  be  implemented  by  partners,  including  the 
European  Investment  Bank  (EIB)  Group,  international  financial  institutions,  the 
national promotional banks and institutions as well as export credit agencies. The open 

EN 

27 

  EN 

architecture will remain a key aspect of the ECF InvestEU Instrument, building on the 
broad collaboration and experience under the InvestEU Programme. The Commission 
and  the  EIB  Group  should  work  in  partnership  with  the  objective  of  supporting  the 
implementation  of 
the  ECF  InvestEU  Instrument  and  fostering  consistency, 
inclusivity, additionality, and efficient deployment. 

(69)  To avoid undue administrative burden and ensure a swift deployment and support to 
the market in continuity across programming periods, the implementation of the ECF 
InvestEU  Instrument  will  build  on  the  existing  community  of  the  InvestEU 
Programme  pillar  assessed  implementing  partners,  contractual  arrangements  and 
relevant financial products. Moreover, to ensure sound financial management, a faster 
roll-out  and  simplification  to  entrusted  entities,  the  implementation  of  the  ECF 
InvestEU  Instrument  should  build  on  existing  agreements,  templates  for  legal  and 
contractual arrangements, as well as  established monitoring and reporting tools. This 
improves  the  impact  of  Union  support  and  allows  for  more  focus  on  efficiently 
supporting final recipients. The Commission may rely on and reuse in full or  in part 
the  agreements  with  implementing  partners  concluded  under  Regulation  (EU) 
2021/253,  and  on  assessments  made  by  itself  or  other  entities  in  the  context  of 
agreements under that Regulation.  

(70)  To  provide  implementing  partners  with  broader  access  to  the  ECF  InvestEU 
Instrument,  the  Commission  should  be  able  to  conclude  agreements  in  indirect 
management  with  all  the  categories  of  entities  listed  under  Article  62(1),  point  (c), 
Regulation (EU, Euratom) 2024/2059. To unlock private capital, bodies established in 
a Member State, governed by the private law of a Member State or Union law should 
also  be  eligible  to  be  exceptionally  entrusted,  following  a  positive  pillar  assessment, 
with  the  implementation  of  financial  instruments  or  budgetary  guarantees,  including 
when combined with grants or with other forms of non-repayable support in blending 
operations,  to  the  extent  that  such  bodies  are  provided  with  adequate  financial 
guarantees.  Such  bodies  should  be  selected  taking  due  account  of  the  nature  of  the 
financial instrument or budgetary guarantee to be implemented, the experience and the 
financial and operational capacity of those bodies, and  their rules and procedures for 
verifying the economic viability of projects of final recipients. The selection should be 
transparent,  justified  on  objective  grounds  and  should  not  give  rise  to  a  conflict  of 
interests. 

(71)  To  ensure  consistency,  the  budgetary  guarantee  and  financial  instruments,  including 
when  combined  with  non-repayable  support  in  blending  operations,  under  the  ECF 
InvestEU Instrument should be implemented in accordance with Title X of Regulation 
(EU, Euratom) 2024/2509.  

(72)  To  ensure  consistency  in  the  implementation  of  budgetary  guarantees,  financial 
instruments  and  blending  operations  under  different  Union  programmes,  the 
Commission  should  develop  guidance  including  technical  arrangements,  terms  and 
conditions to deploy these forms of support under those programmes. 

(73)  To  comply  with  the  requirements  of  Regulation  (EU,  Euratom)  2024/2509,  this 
Regulation  should  set  out  a  maximum  amount  of  the  budgetary  guarantee  under  the 
ECF InvestEU Instrument, a provisioning rate for that budgetary guarantee in line with 
Article  214(1)  of  Regulation  (EU,  Euratom)  2024/2509,  and  an  obligation  for  the 
Commission to assess every year that provisioning rate following in accordance with 
the assessment referred to in Article 41(5) of Regulation EU, Euratom) 2024/2509 and 
in  line  with  the  Commission’s  risk  management  framework  and  the  possibility  for 

EN 

28 

  EN 

(74) 

third  parties  and  third  countries  to  contribute  specifically  to  the  ECF  InvestEU 
Instrument. 

It is necessary to provide the possibility that the ECF InvestEU Instrument, including 
the budgetary guarantee, serves as a horizontal delivery tool for other Union policies, 
to  provide support under other Union programmes in  accordance with  the objectives 
set  out  in  those  programmes.  For  that  purpose,  the  corresponding  provisioning  of 
financial  liabilities  should  be  made  by  those  other  programmes.  Where  other  Union 
programmes contribute to objectives of Union’s internal policies, support in the form 
of a budgetary guarantee or financial instruments, including when combined with non-
repayable support in a blending operation, should be provided exclusively through the 
ECF InvestEU Instrument. 

(75)  The  ECF  InvestEU  Instrument  should  provide  a  single,  centralised  place  for 
establishment and management of a budgetary guarantee and all financial instruments 
contributing  to  objectives  of  Union’s  internal  policies,  which  will  contribute  to 
improved  efficiency  and  increase  policy  impact  of  Union  financing.  The  financial 
products established under the InvestEU Regulation are State aid consistent within the 
meaning  of  the  Article  212(2)  of  Regulation  (Union,  Euratom)  2024/2509.  The 
Commission and the implementing partners should ensure that new financial products 
to be established under this Regulation are State aid consistent within the meaning of 
Article  212(2)  of  Regulation  (Union,  Euratom)  2024/2509  to  ensure  their  swift 
deployment. 

(76)  Whereas European innovative start-ups and scale-ups are essential engines of growth 
and  competitiveness,  and  acknowledging  that  they  face  persistent  barriers  to  access 
necessary  financing  in  the  Union,  the  ECF  InvestEU  Instrument  should  provide 
targeted  financial  support  to  growing  and  scaling  up  companies  in  the  Union  at  all 
stages  —  from  inception  and  start-up  to  scale-up  and  industrial  manufacturing.  The 
ECF  InvestEU  Instrument  should  provide  direct  and  indirect  funding  for  European 
companies  with  a  view  to  attract  private  investors  —  thereby  unlocking  the  full 
potential  of  European  entrepreneurship  and  investment.  This  will  empower  start-ups 
and scale-ups and reinforce the Union’s global leadership in technology and industry, 
while  bridging  Europe’s  innovation  and  investment  gaps  and  delivering  on  the 
ambition of the Savings and Investment Union. The ECF InvestEU Instrument would 
include  a  facility  aiming  to  ensure  that  high-growth  enterprises  developing  or 
deploying  innovative  technologies,  including  in  areas  important  for  the  Union’s 
strategic interests and economic security, can access adequate capital to scale up their 
businesses.  It  will  mobilise  investments  from  Europe’s  capital  markets,  in  line  with 
Union’s policy priorities. 

(77)  A Project  Advisory should  be established to  support objectives  of the ECF, building 
on  the  of  InvestEU  Advisory  Hub.  It  should  unify  advisory  support  to  private  and 
public entities across Europe, offering tailored services  to  potential beneficiaries and 
contribute  to  development  of  a  pipeline  of  potential  investment  operations  under  the 
ECF. At the same time, role of business support services such as the EU for Business 
Network,  among  others,  should  be  to  make  European  businesses  become  more 
innovative  and  competitive,  grow  and  scale  in  the  Single  Market  and  to  raise 
awareness and contribute to capacity building on avenues for accessing capital market-
based funding. To avoid undue administrative burden and ensure a swift deployment 
and support to the market in continuity, the ECF may rely on the existing community 
of the InvestEU Programme pillar assessed advisory partners.  

EN 

29 

  EN 

(78)  SMEs make up more than 99 % of all businesses in the Union, provide two thirds of 
jobs,  and  contribute  substantially  to  the  creation  of  new  quality  jobs  in  all  sectors. 
Scaling firms exist across all sectors and levels of innovative prowess. Stimulating the 
Union’s  growth  and  innovation  can  only  happen  by  boosting  the  many  scalers  that 
exist across the Union SME population. SMEs are essential to achieve the green and 
digital  transformations  of  the  economy,  including  the  achievement  of  climate 
neutrality. 

(79)  However, access to finance is an important barrier for SMEs, especially for start-ups 
and scale-ups, as they often rely on external  financing to support their growth plans. 
SMEs face further barriers to innovation and growth that do not affect larger firms to 
the  same  extent,  for  example  the  lack  of  entrepreneurial  skills,  lack  of  access 
technology  infrastructure,  difficulties  in  protecting  intellectual  property  or  accessing 
export  markets  and  value  chains  in  order  to  develop  their  internationalisation 
activities.  

(80)  Evidence  shows  that  direct  financial  support  to  SMEs  is  not  enough  on  its  own  to 
support their scaling-up and that they need and benefit from dedicated advice at Union 
level.  Providing  advice  on  Single  Market  rules,  innovation  and  access  to  finance 
contributes  to  Union  competitiveness.  Moreover,  business  support  at  local,  regional 
and  national  level  is  diverse  and  should  also  connect  less  developed  and  outermost 
regions. Existing Union initiatives such as the Enterprise Europe Network, European 
Cluster  Collaboration  Platform  and  European  Digital  Innovation  Hubs  have  helped 
bridge  this  gap.  Accordingly,  an  ‘EU  for  Business  Network’  shall  be  established, 
the  European  Cluster 
building  on 
Collaboration  Platform  (ECCP)  and  other  networks,  to  simplify  and  streamline 
advisory and partnership services. 

the  Enterprise  Europe  Network  (EEN), 

(81)  The ECF will support SME’s access to finance and strengthen the competitiveness of 
the  Union  SMEs  via  two  main  avenues:  First,  in  addition  to  the  EU  for  Business 
Network,  the  ECF  will  also  conduct  additional  cross-cutting  activities  focused  on 
strengthening the competitiveness of SMEs. Second, the ECF policy windows should 
include  dedicated  SME  actions  targeting  SMEs  in  strategic  sectors,  such  as  bonus 
systems  to  encourage  SME  participation,  with  a  view  to  fostering  SME  innovation, 
growth  and  scaling-up.  Special  support  may  be  granted  for  access  to  and  the 
availability of finance for SMEs and small mid-cap companies across all sectors of the 
economy,  including  micro-finance,  support  for  social  enterprises.  Furthermore,  a 
flexible  financial  toolbox  under  the  ECF  should  ensure  that  SMEs  could  receive  the 
type of support that best fits their needs along their investment journey.  

(82)  To  further  support  the  principles  of  simplification  and  easy  access  to  Union  funding 
opportunities  for  beneficiaries,  the  ECF  should  offer  a  single  portal  centralising 
information  on  and  access  to  all  Union  funding  opportunities  and  support  other 
activities. The single portal should facilitate and accelerate access to Union and other 
funding,  financing  and  investments,  streamlining  the  approach  while  building  on  the 
Funding and Tenders Portal, InvestEU Portal, Access to Finance Portal, STEP Portal 
and other relevant  platforms.  It  should  also  be possible to  directly  apply  for funding 
opportunities on the single portal. 

(83)  The  ECF  is  to  be  implemented  in  accordance  with  Regulation  (EU)  [XXX]32  of  the 
European Parliament and of the Council [Performance Regulation]  which establishes 

32 

OJ L.., p 

EN 

30 

  EN 

 
(84) 

(85) 

the  rules  for  the  expenditure  tracking  and  the  performance  framework  for  the  Union 
budget, including rules for ensuring a uniform application of the principles of ‘do no 
significant harm’ and gender equality referred to in Article 33(2), points (d) and (f), of 
Regulation (EU, Euratom) 2024/2509 respectively, rules for monitoring and reporting 
on the performance of Union programmes and activities, rules for establishing a Union 
support portal, rules for the evaluation of the programmes, as well as other horizontal 
provisions  applicable  to  all  Union  programmes  such  as  those  on  information, 
communication and visibility.  

In  a  rapidly  changing  economic,  social  and  geopolitical  environment,  recent 
experience  has  shown  the  need  for  a  more  flexible  multiannual  financial  framework 
and Union programmes. To that effect, and in line with the objectives of the ECF, the 
funding  should  duly  consider  the  evolving  policy  needs  as  identified  in  relevant 
documents  published  by  the  Commission,  in  Council  conclusions  and  European 
Parliament  resolutions,  while  ensuring  sufficient  predictability  for  the  budget 
implementation. 

In order to achieve the general and specific objectives of the ECF, the power to adopt 
acts  in  accordance  with  Article  290  of  the  TFEU  should  be  delegated  to  the 
Commission in respect of changes to the maximum amount of the budgetary guarantee 
and the provisioning rate, as well as in respect of certain measures in support of space 
policy.  It  is  of  particular  importance  that  the  Commission  carries  out  appropriate 
consultations  during  its  preparatory  work,  including  at  expert  level,  and  that  those 
consultations  be  conducted  in  accordance  with  the  principles  laid  down  in  the 
Interinstitutional Agreement of 13 April 2016 on Better Law-Making.33 In particular, 
to  ensure  equal  participation  in  the  preparation  of  delegated  acts,  the  European 
Parliament and the Council receive all documents at the same time as Member States' 
experts,  and  their  experts  systematically  have  access  to  meetings  of  Commission 
expert groups dealing with the preparation of delegated acts.  

(86) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  the  ECF  through 
certain measures set out in work programmes as well as certain measures in support of 
space  policy,  implementing  powers  should  be  conferred  on  the  Commission.  Those 
powers should be exercised in accordance with  Regulation (EU) No 182/2011 of the 
European Parliament and of the Council.34 

implementation 

(87)  Although  work  programmes  and  other  acts  implementing  this  Regulation  concern 
specific  budget 
tasks  which  do  not  require  a  conferral  of 
implementing  powers  and  which  should  not  normally  fall  within  the  scope  of 
implementing  acts  referred  to  in  Regulation  (EU)  No  182/2011,  the  advisory 
procedure should be used for the adoption of certain acts as defined in this Regulation, 
including  work  programmes  implementing  activities  for  clean  transition,  health, 
biotech,  agriculture  and  bioeconomy,  and  digital  leadership,  resilience  and  security, 
defence industry and space, given that those acts should be fully supported and create 
synergies  with  national  and  shared  management  activities  conducted  by  the  Member 
States. Due the sensitivity and particular importance of synergies and full coordination 
with Member States in the area of resilience and security, defence industry support and 

33 
34 

OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj. 
Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by Member States of 
the Commission’s exercise of implementing powers, OJ L 55, 28.2.2011, p. 13–18. 

EN 

31 

  EN 

 
space,  the  examination  procedure  should  be  used  for  the  adoption  of  work 
programmes in these areas.  

(88)  The  Commission  should  adopt  immediately  applicable  implementing  acts  in  duly 
justified cases where a work programme has not been adopted sufficiently prior to the 
year  of  budget  implementation  in  order  to  ensure  business  continuity  of  Union 
support,  in  particular  of  critical  operational  activities,  such  as  satellite  systems  and 
critical infrastructures, or need to be adopted in expedited fashion to immediately react 
to a crisis or other similar exceptional and duly substantiated emergencies, imperative 
grounds of urgency so require. 

(89)  The ECF replaces the programmes established by Regulations (EU) 2021/522,35 (EU) 
2021/694,36 (EU) 2021/696,37  (EU) 2021/697,38 (EU)  2021/783,39  (EU) 2023/588,40 , 
repeals provisions of Regulations (EU) 2021/696, (EU) 2023/588  and (EU) [EDIP]. 

HAVE ADOPTED THIS REGULATION: 

Chapter I 

General Provisions 

SECTION 1 

OBJECTIVES AND STRUCTURE OF THE FUND 

Article 1 

Subject Matter 

This  Regulation  establishes  the  European  Competitiveness  Fund  (the  ‘ECF’), 
including  a  specific  programme  on  defence  research  and  innovation  referred  to  in 
Article  182(3)  TFEU  and  lays  down  the  objectives  of  the  ECF,  its  budget  for  the 

Regulation  (EU)  2021/522  of  the  European  Parliament  and  of  the  Council  of  24  March  2021 
establishing a Programme for the Union’s action in the field of health (‘EU4Health Programme’) for the 
period  2021-2027,  and  repealing  Regulation  (EU)  No  282/2014  (OJ  L  107,  26.3.2021,  p.  1,  ELI: 
http://data.europa.eu/eli/reg/2021/522/oj). 
Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 2021 establishing 
the Digital Europe Programme and repealing Decision (EU) 2015/2240 (OJ L 166, 11.5.2021, p. 1, ELI: 
http://data.europa.eu/eli/reg/2021/694/oj). 
Regulation (EU) 2021/696 of the European Parliament and of the Council of 28 April 2021 establishing 
the Union Space Programme and the European Union Agency for the Space  Programme and repealing 
Regulations  (EU)  No  912/2010,  (EU)  No  1285/2013  and  (EU)  No  377/2014  and  Decision  No 
541/2014/EU (OJ L 170, 12.5.2021, p. 69, ELI: http://data.europa.eu/eli/reg/2021/696/oj). 
Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April 2021 establishing 
the  European  Defence  Fund and repealing  Regulation  (EU)  2018/1092  (OJ  L  170,  12.5.2021,  p.  149, 
ELI: http://data.europa.eu/eli/reg/2021/697/oj) . 
Regulation (EU) 2021/783 of the European Parliament and of the Council of 29 April 2021 establishing 
a  Programme  for  the  Environment  and  Climate  Action  (LIFE),  and  repealing  Regulation  (EU)  No 
1293/2013 (OJ L 172, 17.5.2021, p. 53, ELI: http://data.europa.eu/eli/reg/2021/783/oj). 
Regulation  (EU)  2023/588  of  the  European  Parliament  and  of  the  Council  of  15  March  2023 
establishing the Union Secure Connectivity Programme for the period 2023-2027 (OJ L 79, 17.3.2023, 
p. 1, ELI: http://data.europa.eu/eli/reg/2023/588/oj). 

1. 

35 

36 

37 

38 

39 

40 

EN 

32 

  EN 

 
2. 

(a) 

(b) 

(c) 

(d) 

3. 

1. 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

period  2028-2034,  the  forms  of  Union  support  and  the  rules  for  providing  such 
support under cross-cutting activities and specific policies supported by the ECF. 

This Regulation lays down:  

A ‘Clean Transition and Industrial Decarbonisation’ window – implemented through 
the  activities  set  out  in  Chapter  II  and  Chapter  IV,  and  contributing  to  the  specific 
objectives set out in Article 3(2), point (a);  

A  ‘Health,  Biotech,  Agriculture  and  Bioeconomy’  window  –  implemented  through 
the  activities  set  out  in  Chapter  II  and  Chapter  V,  and  contributing  to  the  specific 
objectives set out in Article 3(2), point (b);  

A  ‘Digital  Leadership’  window  –  implemented  through  the  activities  set  out  in 
Chapter  II  and  Chapter  VI,  and  contributing  to  the  specific  objectives  set  out  in 
Article 3(2), point (c);  

A  ‘Resilience  and  Security,  Defence  Industry,  and  Space’  window  –  implemented 
through  activities  set  out  in  Chapter  II  and  Chapter  VII,  including  the  specific 
programme  for  defence  research  and  innovation  referred  to  in  paragraph  1,  and 
contributing to the specific objectives set out in Article 3(2), point (d).  

The Regulation also sets up a legal framework aiming at ensuring security of supply, 
removing  investment  obstacles  and  production  bottlenecks  and  supporting  the 
competitiveness of the Union’s industrial base.  

Article 2 

Definitions 

For the purposes of this Regulation, the following definitions apply:  

‘Advisory  agreement’  means  a  legal  instrument  whereby  the  Commission  and  the 
advisory partner specify the conditions of the implementation of the project advisory 
services; 

‘Advisory  partner’  means  an  eligible  counterpart  such  as  a  financial  institution  or 
other  entity  with  whom  the  Commission  has  concluded  an  advisory  agreement  for 
the  purpose  of  implementing  one  or  more  advisory  initiatives,  other  than  advisory 
initiatives  implemented  through  external  service  providers  contracted  by  the 
Commission or through executive agencies; 

‘Compartment’ means a part of the ECF InvestEU Instrument defined by the origin 
of the resources backing the support; 

‘Control’  means  the  ability  to  exercise  a  decisive  influence  over  a  legal  entity 
directly, or indirectly through one or more intermediate legal entities;  

‘Executive  management  structure’  means  the  body  of  a  legal  entity  appointed  in 
accordance  with  national  law,  and  which,  where  applicable,  reports  to  the  chief 
executive  officer  or  any  other  person  having  comparable  decisional  power,  and 
which  is  empowered  to  establish  the  legal  entity’s  strategy,  objectives  and  overall 
direction, and oversees and monitors management decision-making;  

‘EIB Group’ means the European Investment Bank (EIB), its subsidiaries, and other 
entities  established  under  Article  28(1)  of  Protocol  No  5  on  the  Statute  of  the 
European Investment Bank (the EIB Statute);  

EN 

33 

  EN 

(7) 

(8) 

(9) 

(10) 

(11) 

(12) 

(13) 

(14) 

(15) 

‘guarantee  agreement’  means  a  legal  instrument  whereby  the  Commission  and  an 
implementing partner specify the conditions for proposing financing and investment 
operations  in  order  for  them  to  be  granted  the  benefit  of  the  ECF  InvestEU 
Instrument guarantee, for providing the budgetary guarantee for those operations and 
for implementing them in accordance with this Regulation;  

‘Imperative  public  interest’  means,  for  the  purpose  of  Article  20,  an  overriding 
reason  for  providing  Union  support  for  a  certain  action,  or  set  of  actions,  due  to  a 
clear and significant  contribution  to  the achievement of policy objectives under the 
ECF, which justifies the application of accelerated and simplified rules to the award; 

‘Implementing  partner’  means  an  eligible  financial  institution  or  intermediary  with 
whom the Commission has concluded a guarantee agreement; 

‘Important project of common European interest’ (IPCEI) means a project that fulfils 
all  the  criteria  laid  down  in  the  Commission  Communication  on  Criteria  for  the 
analysis  of  the  compatibility  with  the  internal  market  of  State  aid  to  promote  the 
execution  of  important  projects  of  common  European  interest  or  any  subsequent 
revision of that Communication; 

‘Investment  journey’  means  the  continuum  of  public  and  private  financial  support 
and policy support mechanisms provided to recipients across its entire development 
chain,  including  a  comprehensive  series  of  activities  involved  in  the  allocation  of 
financial  resources  and  provision  of  support  to  foster  innovation  and  economic 
growth. This journey includes, but is not limited to, the initiation from fundamental 
and  applied  research  phases,  progressing  through  stages  of  scaling  up,  industrial 
deployment,  and  advancing  to  the  culmination  in  full-scale  manufacturing  and 
industrial maturity and internationalisation;  

‘Financing and investment operations’ or ‘financing or investment operations’ means 
operations  to  provide  finance  directly  or  indirectly  to  final  recipients  through 
financial products, carried out by an implementing partner in its own name, provided 
by  the  implementing  partner  in  accordance  with  its  internal  rules,  policies  and 
procedures and accounted for in the implementing partner’s financial statements or, 
where applicable, disclosed in the notes to those financial statements; 

‘Legal  entities’  means  a  legal  person  created  and  recognised  as  such  under  Union, 
national  or  international  law,  including  Structures  for  European  Armament 
Programme (SEAP), established in accordance with Regulation (EU) [XXX]41 of the 
European Parliament and of the Council [EDIP], which has legal personality and the 
capacity to act in its own name, exercise rights and be subject to obligations, or an 
entity  which  does  not  have  legal  personality  as  referred  to  in  Article  200(2),  point 
(c), of the Financial Regulation;  

‘Policy window’ means a targeted area for support by the ECF Toolbox as specified 
in Article 3(2); 

‘Pre-commercial procurement’ means the procurement of research and development 
services involving risk-benefit sharing under market conditions where there is a clear 
separation of the  research and development  services procured from the deployment 
of commercial volumes of end-products;’ 

41 

OJ L.., p 

EN 

34 

  EN 

 
(16) 

(17) 

(18) 

(19) 

(20) 

(21) 

1. 

(a) 

(b) 

(c) 

(d) 

‘Project  advisory’  means  advisory  that  supports  investment,  including  capacity 
building  and  market  development  activities,  and  business  acceleration  services 
provided  by  advisory  partners,  by  external  service  providers  contracted  by  the 
Commission or through executive agencies;  

‘Competitiveness  Seal’  means  a  quality  label  awarded  to  a  proposal  submitted  to  a 
call  for  proposals  that  meets  all  the  quality  requirements  set  out  in  the  award 
procedure but might receive support from other Union or national funding sources; 

‘Small  mid-cap  company’  means  an  entity  as  defined  in  the  Commission 
recommendation 2025/3500 final; 

‘Small  and  medium-sized  enterprise’  or  ‘SME’  means  a  micro,  small  or  medium-
sized enterprise within the meaning of the Annex to Commission Recommendation 
2003/361/EC;  

‘Stakeholders'  means  individuals,  groups,  or  organizations  that  are  affected  by  and 
can be involved in the programme implementation; 

‘Infrastructure’ means all physical and virtual elements necessary for the provision of 
services  and  economic  activities,  including  networks,  grids  and  assets,  as  well  as 
mobile  assets 
infrastructure,  fostering  decarbonisation,  resilience, 
efficiency, digitalisation, and interoperability;  

linked 

to 

Article 3 

Objectives 

The general objective of the ECF is to increase European competitiveness, notably in 
strategic sectors and technologies along the investment journey by: 

delivering  technological,  economic  and  environmental  impact  from  the  Union's 
investments,  including  by  developing  disruptive  and  incremental  innovation,  and 
emerging,  cutting-edge,  dual-use,  and  strategic  technologies  with  significant 
economic  potential,  including  by  developing  and  accelerating  their  manufacturing 
and industrial deployment; 

reducing  or  preventing  the  Union’s  strategic  dependencies,  and  reinforcing  the 
Union’s  resilience,  and  economic  security,  including  through  diversifying  sources 
and  markets,  support  to  ramp  up  of  European  production  of  strategic  technologies 
and  creating,  strengthening  and  protecting  critical  Union  value  chains  and 
infrastructure; 

addressing  market  failures  and  suboptimal  investment  situations,  including  by 
crowding in private capital and institutional investors as well as public funding in a 
proportionate manner, while avoiding duplication and without crowding out private 
investors; serving as an integrated platform for delivering targeted financial support 
to  companies  across  all  development  phases  start-ups,  scale-ups,  and  strategic 
companies,  including  those  actively  pursuing  manufacturing,  industrial  and  market 
deployment; 

furthering the integration of Union capital markets in alignment with the objective of 
delivering  Savings  and  Investment  Union,  including  solutions  to  address  the 
fragmentation of Union capital markets,  eliminate barriers and create incentives for 
private  investments  and  diversify  and  reinforce  the  sources  of  financing  for  Union 

EN 

35 

  EN 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

2. 

(a) 

enterprises  in  all  the  Member  States,  including  those  with  less  developed  capital 
markets;  

aligning  research,  innovation  and  industrial  policy  support  to  translate  Union’s 
research excellence into Union industrial strength on global markets and securing the 
future of manufacturing in Europe; 

developing  Union  cross-border  and  critical  infrastructure  key  to  the  Union’s 
competitiveness,  and  strategic  independence  in  particular  energy  and  transport, 
digital and security, defence and space infrastructure as well as social infrastructure 
and related data and services; 

strengthening the competitiveness of SMEs and small mid-cap companies established 
in the Union and their ability to grow and scale up, in particular by improving their 
access to finance, including private investment, micro-finance and support to social 
enterprises  as  facilitating  access  to  Union  funding,  through  faster,  simplified  and 
harmonised procedures; reducing and ensuring a proportionate reporting burden;  

addressing shortages of skills critical to all kinds of quality jobs in strategic sectors 
for  EU  competitiveness,  through  both  horizontal  and  specific  skills  investment, 
contributing  to  the  availability  of  skills  in  future  emerging  technologies,  and  by 
pursuing  to  accompany  investments  with  skills  investment  and  indicate  when  it  is 
included;  

ensuring the integration of the Single Market,  including by supporting initiatives at 
any  stage  of  the  investment  journey  with  positive  spill-over  effects  for  the  Single 
Market and resilience of its value chains; 

supporting actions for the development, implementation, and monitoring of relevant 
Union legislation and policy; 

ensuring a just transition to a sustainable, decarbonised and digital  economy that is 
fair and supporting workers and communities. 

Under  the  general  objectives  set  out  in  paragraph  1,  the  ECF  shall  in  particular 
pursue the following specific objectives:  

For  support  to  Clean  Transition  and  Industrial  Decarbonisation,  the  specific 
objectives of support to  decarbonisation of European industry, including  SMEs and 
energy  intensive  industries,  clean  tech  manufacturing  and  its  supply  chains,  and 
contributing to the shift towards a sustainable, circular, energy-, water- and resource-
efficient,  climate-neutral  and  resilient  economy.  This  includes  the  uptake  by 
industries  of  decarbonisation  technologies  and  other  solutions  for  their  industrial 
processes and activities, as well as the decarbonisation of energy supply, promotion 
of  energy  efficiency,  the  uptake  of  renewable  and  clean  energy  solutions,  the 
development  of  energy  system  flexibility,  the  uptake  of  lead  markets  for  clean 
products  ,  the  development,  resilience,  integration  and  digitalisation  of  the  energy 
and  transport  infrastructures  and  systems,  boosting  smart  mobility  and  sustainable 
alternative fuels, as well as boosting the sustainable blue economy, the development 
of innovative nature-based business models and demand side solutions for clean and 
decarbonised buildings, transport and industry, and production ramp up contributing 
to Europe’s strategic autonomy.  

(b) 

For support to Health, Biotechnology, Agriculture and Bioeconomy: 

(1)  For support to health, the specific objectives of fostering innovation 
and  competitiveness  of  the  health  sector  while  ensuring  supply 

EN 

36 

  EN 

security and the industrial capacity and capability to manage future 
serious  cross-border  threats  to  health;  improving  and  protecting 
public and population  health, by prioritising health promotion and 
disease  prevention  across  the  life  span  through  a  health-in-all  and 
One Health policies approach, and by strengthening innovation and 
resilience of health systems.  

(2)  For  support 

to  biotechnology, 

the  specific  objectives  of 
contributing  to  the  development  and  scalable  production  and 
uptake,  availability  and  accessibility  of  medicinal  products, 
medical devices, diagnostics and other medical countermeasures.  

(3)  For  support  to  bioeconomy  policy,  the  specific  objectives  of 
fostering an innovative and competitive bioeconomy in the Union, 
including  in  the  areas  of  biobased  materials  and  products, 
biomanufacturing,  innovative  food  products  and  biochemicals; 
including support to SMEs, start ups and scaleups, contribute to the 
development  and  scalable  production  and  uptake,  availability  and 
accessibility of bioeconomy innovations, including those based on 
cross-sectoral cutting-edge biotechnology; strengthen supply chains 
and increase their resilience. 

(4)  For  support  to  the  agriculture  and  food  security,  the  specific 
objective  of  fostering  the  competitiveness,  sustainability,  and 
resilience of the agriculture, fisheries and aquaculture, forestry and 
rural and coastal areas and their role in the transition to a climate-
neutral climate-resilient, water-smart, nature-positive economy and 
the  protection  of  natural  resources  biodiversity  while  contributing 
to long term food security in the Union. 

(c) 

For  support  to  Digital  Leadership  policy,  the  specific  objectives  of  fostering 
innovation and competitiveness of digital sector for a competitive and secure Union 
and  bringing  its  benefits  to  citizens  and  society,  public  administrations  and 
businesses across the Union. This shall include, but not be limited to, supporting the 
entire  digital  value-  and  supply-chains  and  activities  including  support  to  start-ups, 
scale-ups  and  SMEs,  in  particular  along  the  following  dimensions:  Achieving 
leadership in digital and AI technologies, including through technology transfer and 
innovation,  and  through  cutting-edge  infrastructures  such  as  AI-powered  digital 
twins;  Achieving  technological  sovereignty  by  building  resilient  digital  ecosystems 
and  ensuring  a  high-level  of  cybersecurity  in  the  Union;  Enabling  the  power  of 
digital  for  businesses  and  citizens  by  deploying  advanced  digital  applications  and 
services, 
reinforcing 
infrastructures,  capacities  and  capabilities  and  by 
interoperability  across  the  Union,  Including  support  to  digitalisation  of  companies, 
including  SMEs,  small  mid-cap  companies,  start-ups  and  scale-ups;  Supporting  the 
digital transformation  and interoperability of public and private sectors through the 
rapid uptake of AI, the wallet technologies, such as EU Digital Identity Wallets and 
trust  services  established  pursuant  to  Regulation  (EU)  No  910/2014  and  the 
forthcoming  European  Business  Wallets  and  other  digital  innovative  solutions. 
Support to cultural and creative industries, complementing the AgoraEU programme. 

(d) 

For  support  to  ‘Resilience  and  Security,  Defence  Industry  and  Space’  policy, 
respectively the specific objectives of:  

EN 

37 

  EN 

(1)  For support to resilience of supply chains, the specific objectives of 
reinforcing Europe’s resilience by strengthening the Union capacity 
in  exploration,  extraction,  processing  and  recycling  of  raw 
materials  and  diversifying  supply  sources  and  markets,  and 
improving  the  timely  availability  of  such  products,  including 
through  the  reduction  of  their  delivery  lead  time,  reservation  of 
manufacturing  slots  or  stockpiling  of  products,  intermediate 
products or raw materials. 

(2)  For  support  to  EU  defence  industry.  the  specific  objectives  of 
promoting  defence  industrial  readiness  of  the  Union  and  its 
Member  States  through  the  strengthening  of  the  competitiveness, 
responsiveness and ability of the European Defence Technological 
and Industrial Base (EDTIB), including support to start-ups, scale-
ups  and  SMEs,  fostering  an  innovative  EU  defence  ecosystem; 
Collaborative  research  and  development  of  defence  products  and 
technologies  for  defence; 
technologies, 
Cooperation  throughout  the  life-cycle  of  defence  equipment,  in 
particular  in  defence  procurement  and  for  the  development  of 
European  defence  projects  of  common  interest;  Adjustment  of 
industry to structural changes. 

including  disruptive 

(3)  For the implementation of EU space systems and space policy, the 
specific objectives of developing, maintaining and operating space 
systems, providing cutting-edge space-based information, data and 
services supporting Union policies, notably in the area of security, 
defence,  sustainable  growth,  environment  protection  and  climate 
resilience,  global  engagement  and 
independence; 
Maximising the socio-economic benefits  of space-based  activities, 
in  particular  by  fostering  the  development  of  an  innovative  and 
competitive Union space economy and supporting the development 
of  a  genuine  Single  Market  for  space  activities,  including 
collaborative  research  and  innovation  for  space  products  and 
technologies  and  support  to  SMEs;  Enhancing  the  safety,  security 
and sustainability of all outer space activities; Promoting the role of 
the Union as a global actor in the space sector.  

strategic 

(4)  For  support  to  civil  industrial  security,  the  specific  objectives  of 
strengthening  the  competitiveness  and  responsiveness  of  the 
European  civil  security  industry,  in  the  application  areas  of 
security,  resilience  of  critical  and  dual-use 
infrastructures, 
technologies  including  critical  energy  infrastructure,  and  solutions 
for  the  control  of  goods  and  persons  at  borders,  the  protection  of 
borders, maritime security, customs security and civil preparedness 
against security threats, as well as reinforcing the capabilities of the 
relevant end-users in the civil security sector. 

EN 

38 

  EN 

Article 4 

Budget 

1. 

2. 

(a) 

(b) 

(c) 

(d) 

(e) 

3. 

4. 

5. 

The indicative financial  envelope for the implementation  of the ECF for the period 
from 1 January 2028 to 31 December 2034 shall be EUR 234 300 000 000 in current 
prices. 

The  indicative  distribution  of  the  amount  referred  to  in  paragraph  1  shall  be  as 
follows:  

EUR 11 000 000 000 for activities contributing to the general objectives referred to 
Article 3, as implemented in particular through cross-cutting activities such as non-
thematic support of the ECF InvestEU Instrument, referred to in Chapter II, Section 
2; Project Advisory, SME Collaboration, skills development and Access to Funding, 
referred to in Chapter III;  

EUR 26 210 000 000 for the specific objectives referred to in Article 3(2), point (a);  

EUR 20 393 000 000 for the specific objectives referred to in Article 3(2), point (b);  

EUR 51 493 000 000 for the specific objectives referred to in Article 3(2), point (c);  

EUR 125 204 000 000 for the specific objectives referred to in Article 3(2), point (d); 

Budgetary  commitments  for  activities  extending  over  more  than  one  financial  year 
may be broken down over several years into annual instalments.  

Appropriations  may  be  entered  in  the  Union  budget  beyond  2034  to  cover  the 
expenses  necessary  to  fulfil  the  objectives  set  out  in  Article  3,  to  enable  the 
management  of  actions  not  completed  by  the  end  of  the  period  referred  to  in 
paragraph 1 of this Article, as well as expenses covering critical operational activities 
and services.  

The  financial  envelope  referred  to  in  paragraph  1  of  this  Article  and  the  additional 
resources referred to in  Article 5 may also be used for technical  and administrative 
assistance  for  the  implementation  of  the  ECF,  such  as  preparatory,  monitoring, 
control,  audit  and  evaluation  activities,  corporate  information  technology  systems 
and  platforms,  information  and  communication  activities,  including  corporate 
communication  on  the  political  priorities  of  the  Union,  and  all  other  technical  and 
administrative  assistance  or  staff-related  expenses  incurred  by  the  Commission  for 
the management of the ECF.  

SECTION 2 

SINGLE RULEBOOK 

Article 5 

Additional resources 

1. 

Member States, Union institutions, bodies and agencies, third countries, international 
organisations,  international  financial  institutions,  or  other  third  parties,  may  make 
additional financial or non-financial contributions available to the ECF, or any of its 
specific  activities  or  objectives  referred  to  in  Article  3(2),  including  specific 
contributions  to  the  ECF  InvestEU  Instrument  budgetary  guarantee  and  financial 
instruments  as  referred  to  in  Article  21.  Additional  financial  contributions  shall 

EN 

39 

  EN 

2. 

3. 

4. 

5. 

1. 

2. 

constitute external assigned revenue within the meaning of Article 21(2), points (a), 
(d), or (e) or Article 21(5) of Regulation (EU, Euratom) 2024/2509. 

Resources  allocated  to  Member  States  under  shared  management  may,  at  their 
request,  in  accordance  Article  X  of  Regulation  (EU)  [XXX][NRPF  regulation],  be 
made  available  to  the  ECF.  The  Commission  shall  implement  those  resources 
directly or indirectly in accordance with Article 62(1), point (a) or (c) of Regulation, 
(EU,  Euratom)  2024/2509.  They  shall  be  additional  to  the  amount  referred  to  in 
Article  4.  Those  resources  shall  be  used  for  the  benefit  of  the  Member  State 
concerned.  Where  the  Commission  has  not  entered  into  a  legal  commitment  under 
direct  or  indirect  management  for  additional  amounts  thus  made  available  to  the 
ECF,  the  corresponding  uncommitted  amounts  may,  at  the  request  of  the  Member 
State concerned, be transferred back to one or more respective chapters of the Plan or 
their successors.  

Any revenues generated  by activities and components  under Chapter VII, section 3 
of this Regulation, shall constitute external assigned revenue within the meaning of 
Article 21(5) of Regulation (EU, Euratom) 2024/2509 to the ECF or its successor. 

[From 1 January 2028 / programme start date], by way of derogation from the first, 
second  and  fourth  subparagraphs  of  Article  212(3)  of  Regulation  (EU,  Euratom) 
2024/2509,  revenue,  repayments  and  recoveries  from  financial  instruments  funded 
from  this  Regulation,  its  predecessor,  and  those  referred  to  in  Annex  IV  of 
Regulation (EU) 2021/523 shall be used to provide Union support under the ECF. By 
way  of  derogation  from  point  (f)  of  Article  21(3)  and  in  accordance  with  Article 
21(5)  of  Regulation  (EU,  Euratom)  2024/2509,  these  resources  shall  constitute 
external assigned revenue to the ECF.  

[From 1 January 2028 / programme start date], by way of derogation from point (a) 
of Article 216(4) of Regulation (EU, Euratom) 2024/2509, any surplus of provisions 
for  the  budgetary  guarantees  established  by  Regulations  (EU)  2015/1017[2]  and 
(EU)  2021/523[3]  may  be  used  to  provide  Union  support  under  the  ECF.  These 
resources  shall  constitute  external  assigned  revenue  within  the  meaning  of  Article 
21(5) of Regulation 2024/2509 to the ECF. 

Article 6 

Alternative, combined and cumulative funding  

The ECF shall be implemented in synergy with other Union programmes. An action 
that  has  received  a  Union  contribution  from  another  programme  may  also  receive 
another contribution under the ECF. The rules of the relevant Union programme shall 
apply to the corresponding contribution or a single set of rules may be applied to all 
contributions  and  a  single  legal  commitment  may  be  concluded.  If  the  Union 
contribution is based on eligible costs, the cumulative support from the Union budget 
shall not exceed the total eligible costs of the action and may be calculated on a pro-
rata basis in accordance with the documents setting out the conditions for support.  

Award procedures under the ECF may be jointly conducted under direct or indirect 
management with  Member States, Union institutions, their departments,  bodies and 
agencies, 
financial 
institutions, or other third parties, provided the protection of the financial interests of 
the  Union  as  well  as  of  the  security  and  defence  interests  of  the  Union  and  its 
Member States is  ensured. Such procedures shall be subject  to  a single set  of rules 

international  organisations, 

third  countries 

international 

EN 

40 

  EN 

and  lead  to  the  conclusion  of  single  legal  commitments.  For  that  purpose,  the 
partners  may  make  resources  available  to  the  ECF  in  accordance  with  Article  5  of 
this  Regulation,  or  the  partners  may  be  entrusted  with  the  implementation  of  the 
award  procedure,  where  applicable  in  accordance  with  Article  62(1),  point  (c),  of 
Regulation  (EU,  Euratom)  2024/2509.  In  joint  award  procedures  representatives  of 
the  partners  to  the  joint  award  procedure  may  also  be  members  of  the  evaluation 
committee referred to in Article 153(3) of Regulation (EU, Euratom) 2024/2509. 

Article 7 

Coordination  

1. 

2. 

3. 

1. 

(a) 

(b) 

2. 

3. 

4. 

The  Commission  shall  ensure  the  consistent  implementation  of  the  European 
Competitiveness Fund, the Framework Programme for Research and Innovation and 
the Innovation Fund.  

The  Commission  and  Member  States  shall,  in  a  manner  commensurate  to  their 
respective  responsibilities,  facilitate  coordination  and  coherence  between  European 
Competitiveness  Fund  and  national  and  regional  partnership  plans  on  common 
competitiveness  priorities  in  selected  key  areas  and  projects  deemed  of  strategic 
importance and of common European interest.  

The  ECF  will  be  implemented  in  synergy  with  other  Union  funds,  including  the 
Global  Europe  Fund,  in  particular  to  support  global  competitiveness,  ensure 
diversified  supply  sources,  and  strengthen  export  potential  and  opportunities  of 
European companies.  

Article 8 

Competitiveness Seal 

A Competitiveness Seal may be awarded to high-quality actions which shall comply 
at least with the following conditions: 

they have been assessed in an award procedure under the ECF;  

they comply with the minimum quality requirements of that award procedure;  

The work programme or the documents related to the award procedure may set out 
additional conditions.  

Member  States  may  support  projects  which  have  been  awarded  a  seal,  or  may 
provide  support  through  the  ECF  by  making  additional  resources  available  to  the 
ECF in accordance with Article 5(1) or (2). 

Strategic projects under CRMA, NZIA, CMA and other strategic projects identified 
in Union legislation that fulfil the conditions in paragraph 1, will be directly granted 
the Competitiveness Seal. 

Article 9 

Eligibility 

1. 

Eligibility  criteria  shall  be  set  to  support  achievement  of  the  general  and  specific 
objectives referred to in Article 3 of this Regulation, in accordance with Regulation 
(EU, Euratom) 2024/2509 and apply to all award procedures under the ECF.  

EN 

41 

  EN 

2. 

(a) 

(b) 

(c) 

(d) 

3. 

4. 

(a) 

(b) 

5. 

6. 

1. 

2. 

(a) 

Provided any specific condition laid down within each policy window or component 
are met, one or more of the following categories of legal entities may be eligible to 
receive Union support in award procedures under direct and indirect management:  

entities established in a Member State or in Overseas Countries and Territories; 

entities established in an associated third country; 

international organisations; 

other entities established in non-associated third countries where the funding of such 
entities is essential for implementing the action and contributes to the objectives set 
out in Article 3.  

In  addition  to  Article  168(2)  and  (3)  of  Regulation  (EU,  Euratom)  2024/2509, 
associated  third  countries  referred  to  in  Article  11(1)  of  this  Regulation  and 
international organisations may, where relevant,  participate in and benefit from any 
procurement  mechanisms  set  Article  168(2)  and  (3)  of  Regulation  (EU,  Euratom) 
2024/2509. Rules applicable to Member States pursuant to Article 168 of Regulation 
(EU,  Euratom)  2024/2509  shall  be  applied,  mutatis  mutandis,  to  participating 
associated third countries and international organisations. 

In award procedures, the following activities shall not be eligible for support: 

activities  that  are  prohibited  by  Union  law,  applicable  international  law,  or  by 
national law in all Member States; 

activities that are already fully financed from other public or private sources,  

The work programme or the documents related to the award procedure  may further 
specify the eligibility criteria set out in this Regulation or set out additional eligibility 
criteria for specific actions. 

Representatives of third countries or international organisations shall not be present 
in deliberations on eligibility/award criteria. 

Article 10 

EU Preference 

The  ECF  support  shall  target  development  manufacturing  and  exploitation  in  the 
Union of strategic technologies and sectors, in line with Union law and international 
commitments.  The  award  procedures  may  apply  any  of  the  conditions  set  out  in 
paragraph 2 to protect Union’s strategic and economic security interests, as well as 
security and critical assets and the services they provide.  

The  work  programme,  the  investment  guidelines  or  the  documents  related  to  the 
award procedure may set out eligibility conditions to ensure the competitiveness of 
the  Union,  including  protection  of  economic  interests  and  autonomy  of  the  Union 
where  necessary  and  appropriate,  including  through  preferential  conditions  such  as 
restrictions  or  incentives  for  Union  entities,  while  limiting  distortion  of  the  single 
market. Those eligibility conditions may take the form of: 

participation  and  performance  restrictions  requiring  participating  entities  to  be 
established,  use  facilities,  or  perform  activities  in  the  Member  States,  and  where 
appropriate other eligible countries. The work programme or the documents related 
to  the  award  procedure  may  set  out  further  details  on  the  application  of  these 
participation and performance restrictions; 

EN 

42 

  EN 

(b) 

(c) 

(d) 

3. 

(a) 

(b) 

(c) 

1. 

transfer restrictions requiring recipients of ECF funding, during or within 5 calendar 
years  after  the  end  of  an  action,  to  not  directly  or  indirectly  transfer  all  or  certain 
operations,  results  or  related  access  and  use  rights,  including  granting  of  licences, 
from  an  eligible  Member  State  or  associated  country  to  an  ineligible  third  country. 
Otherwise, Union funding may be reduced and may be fully or partially recovered. 
The work programme or the documents related to the award procedure may set out 
further details on the application of these transfer restrictions; 

supply  and  content  restrictions  requiring  recipients  of  ECF  funding  to  ensure  a 
certain  minimum  use  or  sourcing  of  equipment,  supplies  and  materials,  or  their 
components,  used  for  the  action  from  eligible  entities  referred  to  in  paragraph  2, 
points (a) and (b), unless those supplies and materials cannot be reasonably sourced 
from  those  eligible  entities.  The  work  programme  or  the  documents  related  to  the 
award  procedure  may  set  out  further  details  on  the  application  of  these  supply  and 
content restrictions; 

control  restrictions  requiring  recipients  of  ECF  funding  to  acquire  and/or  hold  the 
ability to  decide, without  restrictions imposed by ineligible entities, on the creation 
and  use  of  results,  including  the  legal  authority  and  practical  capability  to  modify, 
substitute,  or  remove  components  of  results  that  are  subject  to  restrictions  imposed 
by  ineligible  entities  or  third  countries.  The  work  programme  or  the  documents 
related to the award procedure may set out further details on the application of these 
design authority restrictions; 

Award  procedures  affecting  security,  defence  or  public  order,  in  particular 
concerning strategic assets and interests of the Union or its Member States are to be 
restricted  in  accordance  with  Article  136  of  Regulation  (EU,  Euratom)  2024/2509. 
Those eligibility restrictions may, in particular, include: 

as regards the participating entities, executive management structures restrictions and 
ownership  and  control  restrictions  limiting  participation  of  all  or  certain  entities  to 
those entities with executive management structure, as well as ownership and control 
by natural or legal persons, established in the Member States, and where appropriate 
other eligible countries; 

as  regards  the  implemented  activities,  place  of  performance,  use  of  facilities,  or 
equipment  restrictions  limiting  the  use  for  all  or  certain  activities  to  those  assets 
located  or  originating  in  the  Member  States,  and  where  appropriate  other  eligible 
countries, as well as limiting the eligibility of high-risk suppliers; 

as regards other security restrictions, security reviews and risks assessments, security 
clearances,  transfer  and  access  rights  restrictions,  including  granting  of  licences  to 
ensure  appropriate  safeguards  for  all  or  certain  results  and  other  information 
generated or used by the action. 

Article 11 

Association of third countries to activities under the ECF  

The ECF may be opened to the participation of the following third countries through 
full  or  partial  association,  in  accordance  with  the  objectives  laid  down  in  Article  3 
and  in  accordance  with  the  relevant  international  agreements  or  any  decisions 
adopted under the framework of those agreements and applicable to:  

EN 

43 

  EN 

(a) 

(b) 

(c) 

(d) 

2. 

(a) 

(b) 

(c) 

(d) 

(e) 

3. 

4. 

1. 

2. 

3. 

members  of  the  European  Free  Trade  Association  which  are  members  of  the 
European Economic Area, as well as Andorra, Monaco and San Marino;  

acceding countries, candidate countries and potential candidates;  

European Neighbourhood Policy countries;  

other third countries.  

Provided  any  possible  specific  conditions  laid  down  within  each  policy  window  or 
component are met by the interested third  country, the Association  Agreements for 
programme participation in the ECF shall:  

ensure  a  fair  balance  as  regards  the  contributions  and  benefits  of  the  third  country 
participating in the ECF;  

lay down the conditions of participation in the programmes, including the calculation 
of  financial  contributions,  consisting  of  an  operational  contribution  and  a 
participation fee, to the ECF and its general administrative costs;  

not confer on the third country any decision-making power in the programme; 

guarantee  the  rights  of  the  Union  to  ensure  sound  financial  management  and  to 
protect its financial interests;  

ensure the protection of strategic, security, defence and public order interests of the 
Union and its Member States. 

For the purposes  of point (d), the third country shall grant  the necessary  rights  and 
access required under Regulations (EU, Euratom) 2024/2509 and (EU, Euratom) No 
883/2013, and guarantee that enforcement decisions imposing a pecuniary obligation 
on the basis of Article 299 TFEU, as well as judgements and orders of the Court of 
Justice  of  the  European  Union,  are  enforceable.  and  ensure  that  its  competent 
authorities  cooperate  with  the  European  Public  Prosecutor’s  Office  (EPPO)  in  the 
investigations  and prosecutions of criminal  offences affecting the Union’s financial 
interests in  accordance  with  applicable international  agreements or other applicable 
rules.  

Separate  specific  agreements  may  be  concluded  in  accordance  with  Article  218 
TFEU  for  activities  under  the  ECF  related  to  security,  the  provision  of  secured 
services and critical assets to the EU. 

Article 12 

Implementation and forms of Union support 

The ECF is to be implemented through work programmes in accordance with Article 
110 of Regulation (EU, Euratom) 2024/2509. 

The  ECF  shall  be  implemented  in  accordance  with  Regulation  (EU,  Euratom) 
2024/2509,  under  direct  management  or  under  indirect  management  with  entities 
referred to in Article 62(1), point (c) of that Regulation.  

Award  procedures  implemented  under  the  ECF,  shall  comply  with  the  general 
provisions  of  the  ECF  as  set  out  in  Chapters  I  and  II  of  this  Regulation,  which,  in 
case  of  conflict,  shall  prevail  over  any  other  rules  pertaining  to  the  activities  or 
subsequent implementing acts.  

EN 

44 

  EN 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

Where  award  procedures  concern  more  than  one  specific  objective  laid  down  in 
Article  3(2),  the  work  programme  may  specify  that  the  award  procedure  is 
implemented  under  a  single  set  of  rules  by  applying  directly  Regulation  (EU, 
Euratom) 2024/2509, complemented by the general rules set out in Chapter I and II, 
or by applying the rules of one of the concerned specific objectives. 

In certain duly substantiated circumstances, Union funding may be granted without a 
call  for  proposals  in  accordance  with  Article  198  of  Regulation  (EU,  Euratom) 
2024/2509, including with point (e). 

Union  support  may  be  provided  in  any  form  in  accordance  with  Regulation  (EU, 
Euratom)  2024/2509,  in  particular  grants,  prizes,  procurement,  non-financial 
donations, budgetary guarantees, and financial instruments. 

Where Union support is provided in the form of a budgetary guarantee and financial 
instruments, including when combined with other forms of non-repayable support in 
blending  operations,  it  shall  be  implemented  in  accordance  with  Title  X  of 
Regulation (EU, Euratom) 2024/2509 . 

Where Union funding is provided in the form of a grant, including when combined in 
blending  operations  with  other  forms  of  repayable  support  not  supported  by  the 
Union budget, funding shall be provided in accordance with Title VIII of Regulation 
(EU,  Euratom)  2024/2509  and  in  the  form  of  financing  not  linked  to  costs  in 
accordance  with  Article  125(1),  point  (a),  of  that  Regulation  (EU,  Euratom) 
2024/2509,  or,  where  necessary,  simplified  cost  options.  Funding  may  be  also 
provided in the form of actual eligible cost reimbursement where the objectives of an 
action cannot be achieved otherwise or where this form is necessary to enable other 
sources of funding, including financing from Member States.  

In  accordance  with  Article  153(3)  of  Regulation  (EU,  Euratom)  2024/2509,  for 
actions  implementing  research  and  innovation  activities,  the  evaluation  committee 
may be composed partially or fully of independent external experts. 

Contributions  to  a  mutual  insurance  mechanism  set  out  in  Article  30  of  the 
Framework  Programme  for  Research  and  Innovation  may  cover  the  risk  associated 
with  the recovery of sums  due by recipients  and shall be considered as a sufficient 
guarantee under Article 155 of Regulation (EU, Euratom) 2024/2509. No additional 
guarantee or security shall be accepted from beneficiaries or imposed upon them. 

Where necessary to achieve the objectives set out in Article 3, parts of the ECF may 
be  implemented  through  Public-Private  or  Public-public  Partnerships  established 
under  the  Framework  Programme  for  Research  and  Innovation,  in  particular  by 
entrusting budget implementation tasks, in accordance with Article 62(1), point (c) of 
Regulation  (EU,  Euratom)  2024/2509,  to  joint  undertakings  established  pursuant  to 
187 TFEU. Support  from  the ECF shall be conditional upon efficient  use of Union 
financing, a proportionate financial contribution from other partners at least matching 
the  Union  contribution  and  voting  rights  for  the  Union  in  the  governing  bodies 
ensuring protection of the interests of the Union in the partnership. For that purpose, 
joint  undertakings  shall  be  established  through  a  single  establishing  act  ensuring 
centralised administrative functions. 

12. 

In  addition  to  the  grounds  set  out  in  Article  132  of  Regulation  (EU,  Euratom) 
2024/2509,  award  procedures  and  resulting  legal  commitments  shall  allow  for 
termination  where  the  objectives  of  the  action  are  unlikely  to  be  achieved  at  all  or 
within the set timelines, or the action has lost its policy relevance 

EN 

45 

  EN 

Article 13 

Application of the rules on classified information and sensitive information 

The Commission shall protect classified information in accordance with the security 
rules set out in Commission Decision (EU, Euratom) 2015/444.42 

Each  Member  State  and  associated  country  shall  ensure  that  it  offers  a  degree  of 
protection of EU classified information equivalent to security rules set out in Council 
Decision  2013/488/EU.43  Equivalence  of  protection  in  third  countries  shall  be 
established by security of information agreement adopted in accordance with Article 
218 TFEU. 

A  secured  exchange  system  shall  be  used  to  facilitate  the  exchange  of  classified 
information  and  sensitive  information  with  the  Member  States  and,  where 
appropriate, other recipients. 

Union institutions, bodies and agencies involved in the implementation of the Union 
budget shall have access to information, including classified information, necessary 
for  the  purpose  of  carrying  out  the  award  procedures,  implementing  actions, 
including  reporting  and  payments,  as  well  as  checks,  reviews,  audits,  and 
investigations.  

To  ensure  compliance  with  the  requirements  set  out  in  Regulation  (EU,  Euratom) 
2024/2509, including the principles of transparency and equal treatment, in all stages 
of  the  award  procedures  involving  classified  information,  administrative  data 
necessary to evaluate, award and audit Union support, limited to legal, financial and 
procedural information, shall be treated as sensitive non-classified information. 

Article 14 

Governance and Advisory Boards 

A Strategic Stakeholders Board is established. 

The  members  of  the  ECF  Strategic  Stakeholders  Board  shall  be  appointed  by  the 
Commission, following an open call for nominations or for expressions of interest, or 
both, whichever the Commission finds more appropriate, and taking into account the 
need  for  balance  in  sector,  organisation  type,  including  private  investors,  and  size, 
expertise, gender, age and geographical distribution. The term of members the Board 
shall be limited to four years, renewable once. Members of the Board should act with 
integrity and probity.  

The  Commission  shall  establish  the  detailed  rules  on  selection  and  composition, 
remuneration, rules of procedure, conflicts of interest and confidentiality for the ECF 
Stakeholder Board. Members of the Board shall be bound by these terms. 

The  ECF  Strategic  Stakeholder  Board,  informed  by  an  observatory  on  emerging 
technologies, shall advise on the overall direction for the ECF, advise on long-term 
competitiveness trends, advise on areas of market failures and suboptimal investment 
situations that could be addressed in the implementation of the ECF, and advise on 

Commission Decision (EU, Euratom) 2015/444 of 13 March 2015 on the security rules for protecting 
EU classified information, OJ L 72, 17.3.2015, p. 53–88. 
Council Decision of 23 September 2013 on the security rules for protecting EU classified information, 
OJ [sr] L 274 , [sr] 15/10/2013, p. 1–50. 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

42 

43 

EN 

46 

  EN 

 
5. 

6. 

7. 

8. 

9. 

10. 

11. 

the identification of strategic portfolios of projects within and across activities of the 
ECF, for which it may be composed in different policy-oriented configurations. 

An independent Investment Committee shall be established under the ECF InvestEU 
Instrument (the ‘Investment Committee’).  

The  composition  of  the  Investment  Committee  shall  ensure  that  it  has  a  wide 
knowledge  of  the  sectors  covered  by  the  ECF  and  a  wide  knowledge  of  the 
geographic markets in the Union, and shall ensure that the Investment Committee as 
a whole is gender-balanced. 

The Investment Committee shall examine the proposals for financing and investment 
operations  submitted  by  implementing  partners  for  coverage  under  the  Union 
guarantee  and  verify  the  compliance  with  the  applicable  rules  of  the  proposals  for 
financing under the ECF InvestEU Instrument.  

The  Advisory  Board  on  ECF  InvestEU  Instrument  shall  be  composed  of  one 
representative of each implementing partner and one representative of each Member 
State. the Advisory Board on ECF InvestEU Instrument shall, provide advice on the 
design of financial products and on the strategic and operational direction in its area 
of  competence.  It  shall  also  provide  advice  on  the  coordination  with  the  EIC  to 
ensure  complementarity  with  other  Union  funding  or  private  investments.  The 
Advisory Board shall be chaired by a representative of the Commission.  

The  Commission  shall  establish  the  detailed  rules  on  selection  and  composition, 
remuneration,  rules  of  procedure,  conflicts  of  interest  and  confidentiality  for  the 
Investment Committee and the Advisory Board on ECF InvestEU Instrument.  

The  Commission  and  Implementing  partners  shall  establish  regular  Policy  Review 
Dialogues to discuss progress with the implementation of the financial products and 
engage on relevant policy developments.  

The Commission shall ensure that stakeholders are consulted in the development of 
the  work  programmes,  with  the  creation  of  one  or  several  thematic  platforms  per 
window. 

Chapter II 

ECF TOOLBOX 

SECTION 1 

GRANTS, PROCUREMENT AND INDUSTRIAL POLICY COORDINATION TOOLS 

Article 15 

Work Programmes  

1. 

(a) 

(b) 

(c) 

The work programmes may set out: 

actions  and  associated  budget  from  ECF  as  well  as  actions  set  out  in  the  specific 
dedicated part of the work programmes indicated in paragraph 2; 

instruments and form of funding;  

eligibility and award criteria;  

EN 

47 

  EN 

(d) 

(e) 

(f) 

(g) 

(h) 

2. 

3. 

4. 

5. 

6. 

1. 

1. 

a single co-financing rate per action for actual cost grants;  

actions  to  which  the  Mutual  Insurance  Mechanism  under  Regulation  (EU)  [XXX] 
[Horizon Europe] applies; 

rules applicable to actions concerning more than one specific objective; 

actions  to  which  specific  rules  apply,  in  particular  on  ownership,  exploitation  and 
dissemination, transfer and licensing as well as access rights to results; 

actions which benefit from the mechanisms set out in Article 20; 

The  work  programmes  under  this  Regulation  shall  integrate  in  a  specific  dedicated 
part collaborative research and innovation activities and their dedicated budget.  

The Commission shall, by means of implementing acts, adopt the work programmes 
implementing  the  specific  objectives  referred  to  in  Article  3(2),  points  (a),  (b),  (c) 
and (d) and for the horizontal activities in Chapter III. Those implementing acts shall 
be adopted in accordance with the advisory procedure referred to in Article 83(2). 

The Commission shall, by means of implementing acts, adopt the work programmes 
implementing the specific objectives referred to in Article 3(2), point (d) (2), (3) and 
(4).  Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 83(3). 

On  duly  justified  imperative  grounds  of  urgency  relating  to  the  fact  that  a  work 
programme  has  not  been  adopted  by  October  1  of  the  year  preceding  the  year  of 
budget implementation, the Commission shall adopt the work programme by means 
of  immediately  applicable  implementing  acts  in  accordance  with  the  procedure 
referred to  in  Article  83(4) and not  later than October 15 of the year preceding  the 
year of budget implementation. Those implementing acts shall remain in force for the 
period of budget implementation.  

On  duly  justified  imperative  grounds  of  urgency  relating  to  the  need  for  an 
immediate  reaction  to  a  crisis  or  other  similar  exceptional  and  duly  substantiated 
emergencies,  the  Commission  may  adopt  a  work  programme  by  means  of 
immediately applicable implementing acts in accordance with the procedure referred 
to in Article 83(4). 

Article 16 

Single Market value chains builder 

In  order  to  foster  resilient  Union  value  chains,  the  work  programmes  may  include 
dedicated  value-chains  scale  up  calls  which  shall  support  both  project  preparation 
and  crowding  in  of  additional  public  and  private  capital  to  integrate  suppliers, 
manufacturers, and innovators from different Member States and diversify sources of 
supply. 

Article 17 

EU Tech frontrunners 

The work programmes may include dedicated two-stage bottom-up award procedures 
to  identify  and  support  EU  Tech  frontrunners  through  industry-driven  consortia 
leveraging  on  their  role  as  innovation  and  export  drivers  to  strengthen  their  global 
competitive position along with their European SME suppliers through investments 

EN 

48 

  EN 

2. 

3. 

4. 

5. 

1. 

2. 

1. 

(a) 

(b) 

2. 

1. 

in new solutions and identification of relevant partners. Project preparation as well as 
crowding in of additional public and private capital may be supported.  

At the first stage, an open call for expression of interest for goods, works or services 
that  might  contribute  to  Union  competitiveness  in  general,  or  in  a  specified  sector, 
may be published without specification of the kind of activities or the instrument of 
budget implementation to be used.  

At the second stage, analysis and crowding in of additional public and private capital 
shall be supported.  

Proposals and offers shall be evaluated and ranked based on common award criteria 
such as their comparative contribution to Union competitiveness.  

The evaluation committee shall determine the most appropriate instrument of budget 
implementation,  as  well  as  propose  the  maximum  amount  and  form  of  the  Union 
contribution. 

Article 18 

Production Ramp up actions 

By  way  of  derogation  from  Article  196(2)  of  the  Financial  Regulation,  financial 
contributions  may,  where  necessary  for  the  implementation  of  manufacturing 
projects  essential  to  support  the  general  resilience  objective  as  indicated  on  Article 
3(1), or  activities required to  ensure the security, resilience or service  continuity to 
support the objective referred to in Article 3(2), point (d), cover actions that started 
prior to the date of the submission of the proposal for those actions . 

The work programme or the documents related to the award procedure shall set out 
additional  conditions  to  ensure  that  the  support  is  necessary  and  proportionate, 
excluding  overcompensation  and  double  funding,  is  temporary  and  decreases  over 
time.  

Article 19 

Top Ups for IPCEIs 

The ECF may support:  

projects directly participating in an Important Project of Common European Interest 
(IPCEI)  approved  by  the  Commission  pursuant  to  Article  107(3),  point  (b),  of  the 
TFEU; 

the  follow-on  projects  based  on  results  from  IPCEIs,  conditional  on  significant 
private investments.  

Any support of the ECF for IPCEI referred to in paragraph 1, shall be conditional on 
national co-funding. 

Article 20 

Accelerated and Targeted Actions for Competitiveness  

In  order  to  create  or  facilitate  the  possibility  of  Union  support  to  actions  of 
imperative  public  interest  or  critical  time-sensitivity,  which  could  otherwise  not  be 
effectively  implemented  under  the  normal  rules  applicable  to  the  Union  budget  or 
sectoral policies, the work programmes may identify certain award procedures, under 

EN 

49 

  EN 

(a) 

(b) 

(c) 

2. 

(a) 

direct  or  indirect  management,  that  may  benefit  from  certain  additions,  exceptions, 
and derogations from applicable law, during the award procedure or implementation 
of the supported activities, under all of the following the conditions: 

the action is necessary and appropriate to achieve the objectives of the action in line 
with the general or specific objectives of the programme;  

the  action  is  duly  justified  by  an  imperative  public  interest,  and/or  is  of  a  time-
sensitive nature, or both;  

the  action  cannot  otherwise  be  effectively  implemented  under  the  normal  rules 
applicable to award procedures. 

In  accordance  with  paragraph  1,  one  or  more  of  the  following  measures  may  be 
applied to an award procedure:  

For  grants,  without  prejudice  to  the  use  of  competitive  procedures  wherever 
appropriate in line with Article 192(1) and in addition to Article 198 of Regulation 
(EU,  Euratom)  2024/2509,  the  work  programme  may  specify  that  an  award 
procedure takes the form of a targeted intervention to: 

(1) 

(2) 

(3) 

identify  an  action  of  imperative  public  interests  of  the  Union  and 
the  beneficiaries  or  categories  of  beneficiaries  which  may  be 
invited to submit a proposal without a call; or, 

set  out  an  amount  up  to  which  proposals  may  be  identified  and 
invited that have been awarded a seal referred to in Article 8 of this 
Regulation  but  have  not  received  Union  funding  due  to  lack  of 
budget.  The  applicants  may  be  invited  to  resubmit  their  proposal 
without  a  call;  where  the  proposal  is  resubmitted  without 
substantial change, the granting authority may decide to  fully  rely 
on  the  prior  positive  evaluation  and  any  previously  conducted 
controls  and  submitted  supporting  documents;  the  reasons  for  the 
award  of  the  individual  action  shall  be  duly  substantiated  in  the 
award  decision  and  the  list  of  actions  shall  be  published  in  the 
Annual  Activity  Report  referred  to  in  Article  74(9)  of  Regulation 
(EU, Euratom) 2024/2509; or,  

specify an action and beneficiaries, or a policy area and categories 
of beneficiaries, and set out an amount up to which proposals may 
be  invited  for  extension  of  actions  under  the  ECF  or  other  Union 
programmes,  in  order  to  continue  or  add  additional  activities  or 
entities,  and/or  to  further  develop  results;  where  actions  and 
beneficiaries  are  not 
the  work 
programme, the reasons for the award of the individual action shall 
be duly  substantiated in  the award decision  and the list  of  actions 
shall  be  published  in  the  Annual  Activity  Report  referred  to  in 
Article 74(9) of Regulation (EU, Euratom) 2024/2509. The award 
may  take  the  form  of  an  amendment  to  the  original  action  by 
the  maximum  Union 
adding  new  activities  and 
contribution.  

individually 

increasing 

identified 

in 

(b) 

By way of derogation from Articles 199, 201, 203 regarding grants or from Article 
170(1),  points  (b)  and  (c),  and  (2)  regarding  procurement,  of  Regulation  (EU, 
Euratom)  2024/2509,  the  work  programme  may  specify  that  an  award  procedure 
takes the form of an accelerated intervention to: 

EN 

50 

  EN 

(1) 

(2) 

limit the requirements for the award decision and signature of legal 
commitments  to  a  preliminary  evaluation  of  award  and  exclusion 
criteria;  the  award  decision  shall  be  taken  based  solely  on  a  self-
declaration  of  applicants  and  tenderers  on  selection  and  eligibility 
criteria  without  request  for  corresponding  supporting  documents 
during  pre-evaluation;  the  final  evaluation,  including  for  selection 
and eligibility criteria, and the requests for any relevant supporting 
documents shall be conducted within three months of the signature 
of the legal commitment; and,  

require the notification of the results of the preliminary evaluation 
to  the  applicants  or  tenderers  within  30  calendar  days  of  the 
deadline for submission of proposals or tenders; the award decision 
shall  be  taken  within  60  calendar  days  of  the  deadline  for 
submission  of  proposals  or  tenders  and  shall  be  exempted,  where 
applicable,  from  the  procedures  set  out  in  Article  83;  until  the 
completion of the final evaluation no pre-financing shall be paid. 

(c) 

By way of derogation from  Article  9  of this Regulation,  the work programme may 
specify  that  an  award  procedure  takes  the  form  of  an  inducement  intervention  to 
allow for a temporary and conditional waiver of compliance with a specified part of 
the eligibility criteria during the award procedure and parts of the implementation of 
the  action,  in  particular  regarding  the  place  of  establishment;  compliance  with  the 
temporarily waived eligibility criteria shall instead be achieved and evaluated during 
the  implementation  of  the  action  within  a  timeframe  specified  in  the  legal 
commitment.  If  the  temporarily  waived  eligibility  criteria  are  not  complied  with  at 
the  specified  date,  the  action  shall  be  considered  ineligible  in  its  entirety  and  any 
Union  funding  shall  be  fully  recovered;  for  inducement  interventions  no  pre-
financing shall be paid. 

(d) 

The work programme may set up special two-stage bottom-up award procedures in 
accordance with the following rules:.  

(1)  during  the  first  stage,  a  call  for  expression  of  interest  may  be 
launched  without  specification  of  the  kind  of  activities  or  the 
instrument  of  budget  implementation  to  be  used,  to  enable 
applicants,  tenderers  and  pillar-assessed  entities  to  submit  project 
proposals  or  offers  for  goods,  works  or  services  that  might 
contribute  to  Union  competitiveness  in  general  or  in  a  specified 
sector.  

(2)  proposals  and  offers  shall  be  evaluated  and  ranked  based  on 
common  award  criteria  such  as  their  comparative  contribution  to 
Union  competitiveness.  The  evaluation  committee  shall  determine 
the  most  appropriate  instrument  of  budget  implementation  under 
direct  or  indirect  management,  in  particular  grant,  procurement, 
non-financial donations,  contribution  agreements  or other support, 
as  well  as  propose  the  maximum  amount  and  form  of  the  Union 
contribution. 

(3)  during  the  second  stage,  within  the  available  budget,  successfully 
evaluated projects or offers shall be invited to adjust and complete 
their  proposal  or  offer  in  accordance  with  the  conclusions  of  the 
evaluation  committee.  The  award  procedure  shall  otherwise 

EN 

51 

  EN 

proceed  in  accordance  with  the  rules  set  out  in  Article  12,  as 
applicable to the respective instrument of budget implementation. 

In accordance with paragraph 1, for actions which require the planning, construction 
and operation of facilities funded under award procedures the work programme may 
determine that, depending on the nature of the action, it is of public interest and may 
be  of  imperative  reason  of  overriding  public  interest  within  the  meaning  of  Article 
6(4) and Article 16(1), point (c), of Council Directive 92/43/EEC and Article 4(7) of 
Directive 2000/60/EC of the European Parliament and of the Council , in the interest 
of defence within the meaning of Article 2(3) of Regulation (EC) No 1907/2006 of 
the European Parliament and of the Council , and in the interests of public health and 
safety within the meaning of Article 9(1), point (a) of Directive 2009/147/EC of the 
European Parliament and of the Council, in accordance with and under the conditions 
set  out  in  applicable  legislation  such  as  the  Net  Zero  Industry  Act  Regulation 
2024/1735,  RED  III  (Directive  2023/2413),  or  the  Defence  Readiness  Omnibus 
(COM(2022)349)  provided  that  the  remaining  other  conditions  set  out  in  these 
provisions are fulfilled. 

SECTION 2 

ECF INVESTEU INSTRUMENT  

Article 21 

General Framework 

As  a  horizontal  delivery  tool  for  Union  internal  policies,  the  ECF  InvestEU 
Instrument shall contain the budgetary guarantee and financial instruments, including 
when combined with non-repayable support in a blending operation, for the purpose 
of contributing to the general and specific objectives set out in Article 3, and may be 
implemented  in  synergy  with  other  Union  or  national  activities,  including  through 
compartments for Member States.  

The  ECF  InvestEU  Instrument  shall  address  market  failures  or  suboptimal 
investment situations. The ECF InvestEU Instrument may in particular provide loans, 
guarantees,  counter-guarantees,  capital  market  instruments,  any  other  form  of 
funding  or  credit  enhancement,  including  subordinated  debt,  or  equity  or  quasi-
equity  investments,  provided  directly  or  indirectly  through  financial  intermediaries, 
funds, investment platforms or other vehicles to be channelled to final recipients. 

The maximum amount of the budgetary guarantee under the EU Compartment of the 
ECF InvestEU Instrument shall be EUR  70 000 000 000in current prices. It shall be 
provisioned at the rate of 50 %.  

The  minimum  amount  of  the  Union  support  from  ECF  delivered  through  ECF 
InvestEU Instrument shall be EUR 17 000 000 000 bn, to be used in support of the 
general  and specific objectives set  out  in  Article 3.  This  minimum amount  shall be 
increased by the contributions from the work programmes set out in Article 15. The 
contributions shall be a favoured means of implementation under the ECF and used 
for provisioning of the budgetary guarantee or financing of the financial instruments.  

The investment guidelines set out by the Commission shall define in more detail the 
scope  of  intervention  in  support  of  the  general  and  specific  objectives  set  out  in 

3. 

1. 

2. 

3. 

4. 

5. 

EN 

52 

  EN 

6. 

(a) 

(b) 

(c) 

(d) 

7. 

1. 

2. 

3. 

4. 

Article  3.  The  investment  guidelines  shall  be  prepared  in  close  dialogue  with  the 
potential implementing partners. 

The following rules shall apply to the provisioning referred to in paragraph 3: 

the provisioning rate shall be assessed every year in accordance with the assessment 
referred to in Article 41(5) of Regulation (EU, Euratom) 2024/2509; 

for the purpose of support under other Union programmes referred to in Article 23(2) 
the provisioning shall be made from that other Union programme; 

the  provisioning  shall  be  committed  until  31  December  2034  and  shall  take  into 
account  the  progress  in  granting  the  budgetary  guarantee  under  the  ECF  InvestEU 
Instrument.  

in  accordance  with  Article  214(2)  of  Regulation  (EU,  Euratom)  2024/2509,  the 
provisioning shall be constituted until 31 December 2037 and shall take into account 
the  progress  in  the  approval  and  signature  of  the  financing  and  investment 
operations. 

The Commission is empowered to adopt delegated acts in accordance with Article 84 
to  amend  paragraph  3  to  adjust  the  provisioning  rate  and  to  adjust  the  maximum 
amount of the budgetary guarantee with up to 20% of that amount. 

Article 22 

Support to scaleups and startups 

The  ECF  InvestEU  Instrument  shall  serve  as  the  Union’s  integrated  platform  for 
delivering  targeted  financial  support  to  companies  across  all  development  phases 
start-ups, scale-ups, including those actively pursuing manufacturing, industrial and 
market  deployment.  It  shall  ensure  that  high-potential  European  companies 
developing or deploying innovative solutions can access the capital and resources to 
grow  in  the  Union,  thus  strengthening  the  integration  of  the  Single  market  and  the 
Savings and Investment Union. 

The  Commission  shall  in  particular  develop  a  Scale-up  facility  in  cooperation  with 
the  EIB  Group,  other  international  financial  institutions  and  National  Promotional 
Banks.  The  facility  shall  provide  in  a  coordinated  and  consistent  manner,  a 
comprehensive  set  of  financing  tools  tailored  to  the  unique  needs  of  scale-ups, 
including indirect and direct equity and quasi-equity, venture debt, loans, guarantees 
and blended  finance, with a view to  attract  private investors in  supporting scale up 
financing  and  facilitate  exit  options.  The  facility  shall  target  SMEs  and  small  mid-
cap companies and Mid-cap companies. 

The  facility  shall  intervene  where  market  investors  cannot  provide  sufficient 
financing for European high-growth, innovative and strategic companies, including if 
needed  to  protect  the  Union's  strategic  assets,  interests,  autonomy  or  economic 
security. 

It  will  leverage  public  investment  to  catalyse  substantial  private  and  institutional 
capital flows, such as from private equity funds, corporates, pension funds, insurance 
companies,  and  other  long-term  investors,  thus  deepening  Europe’s  capital  markets 
and fostering sustainable growth of scale-up companies. 

EN 

53 

  EN 

1. 

2. 

1. 

2. 

1. 

2. 

3. 

Article 23 

Exclusivity clause  

During  the  period  of  the  MFF  2028-2034,  budgetary  guarantees,  financial 
instruments,  or  financial  instruments  directly  implemented  by  the  Commission  in 
accordance  with  Article  219  of  Regulation  (EU,  Euratom)  2024/2509  to  support 
policy objectives on the territory of the Union shall solely be established under this 
Section.  

The  budgetary  guarantee,  within  its  maximum  amount  referred  to  in  Article  21(3), 
and financial instruments, including when combined with non-repayable support in a 
blending operation, may be used to provide support under other Union programmes, 
including the EU ETS Innovation Fund and other Union programmes financed from 
sources  other  than  the  Union  budget,  in  accordance  with  the  objectives  set  out  in 
those programmes.  

Article 24 

EU Compartment and Member States Compartment 

The ECF  InvestEU  Instrument shall consist  of an EU Compartment  and  a  Member 
State Compartment. 

Specific  contributions  to  the  ECF  InvestEU  Instrument  under  Article  5(1)  may  be 
made  in  accordance  with  Articles  211(2)  and  221(2)  of  Regulation  (EU,  Euratom) 
2024/2509.  Specific  contributions  to  the  budgetary  guarantee  under  the  ECF 
InvestEU Instrument shall result in an additional amount of the budgetary guarantee 
referred to in Article 21(3).  

Article 25 

Community of implementing partners 

The  ECF  InvestEU  Instrument  will  be  implemented  by  partners  in  an  open 
architecture  model,  including  the  European  Investment  Bank  (EIB)  Group, 
international financial institutions, the national promotional banks and institutions. 

By way of derogation from Article 211(5) of Regulation (EU, Euratom) 2024/2509, 
and  subject  to  Article  12  of  this  Regulation,  the  implementation  of  a  budgetary 
guarantee  or  financial  instrument,  including  when  combined  with  non-repayable 
support in a blending operation, may be entrusted to any entity referred to in Article 
62(1), first subparagraph, point (c), of Regulation (EU, Euratom) 2024/2509. 

In addition to entities referred to in  Article 62(1), first subparagraph, point (c), and 
Article  211(5)  of  Regulation  (EU  Euratom)  2024/2029,  bodies  established  in 
a Member State, governed by the private law of a Member State or Union law may 
also  be  exceptionally  entrusted,  following  a  positive  pillar  assessment,  with  the 
implementation  of  a  budgetary  guarantee  or  financial  instrument,  including  when 
combined with non-repayable support in a blending operation, to the extent that such 
bodies  are  provided  with  adequate  financial  guarantees  which  may  be,  for  each 
action, limited to the maximum amount of the Union support. Those bodies governed 
by  private  law  shall  be  selected  with  due  account  to  the  nature  of  the  financial 
instrument  or  budgetary  guarantee  to  be  implemented,  the  experience  and  the 
financial  and  operational  capacity,  and  their  rules  and  procedures  for  verifying  the 

EN 

54 

  EN 

economic viability of projects of final recipients. The selection shall be transparent, 
justified on objective grounds and shall not give rise to a conflict of interests. 

Chapter III 

Project Advisory, SME Collaboration, skills development and 
Access to Funding 

SECTION 1 

PROJECT ADVISORY 

Article 26 

Project Advisory 

1. 

2. 

(a) 

(b) 

(c) 

3. 

The  Project  Advisory  shall  be  made  available  for  repayable  and  non-repayable 
instruments.  Actions  and  activities  supported  under  this  chapter  shall  contribute  to 
the  general  objectives  set  out  in  Article  3(1)  and  shall  support  and  complement, 
where relevant, activities under the other chapters.  

A centralised access to advisory and business acceleration services shall be provided, 
which may include: 

investment advisory services, including market development activities and advisory 
support  for  the  identification,  preparation,  development,  structuring,  procuring  and 
implementation  of  investment  projects,  and  for  enhancing  the  capacity  of  project 
promoters  and  financial  intermediaries  to  implement  financing  and  investment 
operations and improve the understanding and use of financial instruments to exploit 
their full potential. Such support may cover any stage of the life cycle of a project or 
financing of a supported entity;  

business coaching and acceleration services targeting potential ECF beneficiaries and 
other  project  promoters,  including  SMEs  and  mid-cap  companies,  start-ups  and 
scale-ups, supporting and facilitating their access to ECF funding and financing, and 
facilitating  matchmaking  with  private  investors  and  promoting  financial  literacy  of 
entrepreneurs, including understanding of the opportunities offered by capital market 
based financing; 

project advisory shall, among others, support the generation of project pipelines and 
the development of potential investment projects under the ECF InvestEU Instrument 
and  contribute  to  their  further  development.  Project  advisory  shall  also  cooperate 
with  industrial  alliances  and  European  clusters.  Project  advisory  shall  be  available 
under each policy window referred, covering sectors under that window. In addition, 
advisory support may cover general objectives and cross-cutting actions; 

project advisory shall, among others, support the generation of project pipelines and 
the development of potential investment projects under the ECF InvestEU Instrument 
and  contribute  to  their  further  development.  Project  advisory  shall  also  cooperate 
with  industrial  alliances  and  European  clusters.  Project  advisory  shall  be  available 
under each policy window referred, covering sectors under that window. In addition, 
advisory support may cover cross-cutting actions. 

EN 

55 

  EN 

4. 

5. 

6. 

1. 

1. 

(a) 

(b) 

(c) 

(d) 

(e) 

The  Commission  may  conclude  advisory  agreements  with  advisory  partners  and 
service  providers  in  line  with  the  needs  of  each  policy  windows.  The  Commission 
and  the  advisory  partners,  including  the  EIB  Group,  shall  cooperate  closely  with  a 
view to ensuring efficiency, synergies and effective geographic coverage across the 
Union, while taking account of existing structures and work.  

Irrespective  of  the  instrument  of  budget  implementation  for  the  acquisition  or 
provision  of  advisory  services,  providers  and  recipients  of  the  services  shall  be 
selected  in  accordance  with  the  principles  of  transparency  and  equal  treatment, 
avoidance of conflict of interest, including conflicting professional interests. 

When implementing the Project Advisory, the Commission, its advisory partners and 
other  service  providers  shall,  when  appropriate,  collaborate  with  other  Union  or 
national  public or private advisory and support service providers, including the EU 
for Business Network.  

SECTION 2 

SME COLLABORATION 

Article 27 

EU for Business Network  

“EU  for  Business”  Network  shall  be  established  to  help  Union  businesses  become 
more  competitive  and  innovate,  grow  and  scale  in  the  Single  Market  and  beyond, 
with  a  particular  emphasis  on  SMEs,  startups,  scaleups  and  small  mid-cap 
companies.  The  network  shall  have  a  Union-wide  and  geographically  balanced 
coverage,  taking  into  account  the  specificities  of  all  types  of  regions  in  the  Union, 
including the less developed regions and the Union outermost regions. 

Article 28 

Business support  

The  ECF  shall  conduct  cross-cutting  activities  focused  on  strengthening  the 
competitiveness  of  the  SMEs  and  achieve  additionality  at  Union  level,  including 
through the following measures:  

provision of integrated business advice and support to companies, including through 
financial support to third parties; 

provision of partnering opportunities and capacity building; 

support  and  assistance  for  access  to  technologies,  technology  infrastructure  and 
facilities,  support  market  uptake  of  innovation  and  support  business  organisations, 
SMEs and small mid-cap companies, including startups and scaleups, to participate 
in collaborative platforms and sectors; 

promoting  business  understanding  of  Union  policies,  obtaining  feedback  on  their 
effectiveness; 

increasing  the  access  and  the  availability  of  finance  for  SMEs  including  micro-
finance and support to social enterprises, and for small mid-cap companies; 

EN 

56 

  EN 

(f) 

(g) 

(h) 

1. 

1. 

1. 

2. 

facilitation access to markets including through support to the internationalisation of 
SMEs and provision of market intelligence, including in less developed regions and 
outermost regions; 

improving  the  business  environment  for  SMEs  and  promote  new  business 
intellectual  property 
opportunities  for  SMEs  by  supporting  among  others 
valorisation, standard setting and public procurement;  

promoting  entrepreneurship,  including  women  and  youth  entrepreneurship  and  the 
acquisition of entrepreneurial and business skills. 

Article 29 

Dedicated SME Actions to increase SME participation 

Each  window  shall  support  dedicated,  sector-specific  actions  targeting  start-ups, 
SMEs  and  small  mid-cap  companies  or  calls  for  SMEs  in  strategic  sectors  with 
a view to fostering innovation, business acceleration, commercialisation and scaling-
up.  

Article 30 

Support for skills development 

The ECF shall finance activities in support of skills development, in particular in the 
strategic  sectors,  building  strong  links  between  higher  education,  vocational 
education  and  training  providers,  applied  research  and  businesses  for  an  agile, 
innovative  and  competitive  economy.  This  shall  include  support  for  a  European 
Skills  Guarantee  to  support  value  chain  transitions  in  favour  of  strategic  growth 
sectors or occupations across the labour market through upskilling and reskilling of 
the  workforce  and  Vocational  Education  and  Training  (VET)  partnerships  to 
strengthen cooperation between VET providers and businesses, especially SMEs and 
connecting them with regional industrial ecosystems.  

SECTION 3 

BENEFICIARY SERVICE DESK 

Article 31 

Access to Union funding 

In  accordance  with  Article  150  of  Regulation  (EU,  Euratom)  2024/2509,  the  ECF 
shall  contribute  to  the  maintenance  and  extension  of  the  single  electronic  data 
interchange area for participants to ensure simplified access to Union funding. That 
contribution  shall  be 
instrument  of  budget 
implementation  and  including  advisory  and  business  acceleration  services  and 
support  to  a  single  gateway  for  access  to  Union  support  in  accordance  with 
Regulation (EU) [XXX] [Performance Regulation]. 

irrespective  of 

the  mode  or 

The ECF may support any additional activities to facilitate and accelerate access to 
Union  funding,  and  other  funding,  financing  and  investments,  as  well  as  to  ensure 
valorisation  and  uptake  of  results  through  tools  and  instruments  such  as  proof  of 
concept,  deployment  grants,  advisory  and  business  support  services,  and  any 
dedicated platform.  

EN 

57 

  EN 

Chapter IV 

Support for Clean Transition and Industrial Decarbonisation 

Article 32 

Subject matter 

1. 

2. 

Actions supported under this chapter shall contribute to the general objectives set out 
Article 3(1) and the specific objectives set out in Article 3(2), point (a). 

Support  for  actions  under  this  chapter  shall  be  financed  from  the  budget  set  out  in 
Article 4 and any additional contributions assigned in accordance with Article 5. 

Specific activities to support clean transition and industrial decarbonisation policies 

Article 33 

1. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

Support  for  clean  transition,  and  industrial  decarbonisation  window  shall  be 
implemented in particular through the following activities: 

”LIFE  activities”:  providing  support  to  bottom-up  projects  for  the  demonstration, 
testing  and  market  uptake  of  innovative  solutions  and  best  practices  in  clean 
transition and industrial decarbonisation and awareness raising on climate to relevant 
governance levels.  

Energy  efficiency,  energy  storage,  demand-response,  domestic  transmission  and 
distribution  grids,  digitalisation  of  energy  systems,  integrated  renewable  energy, 
energy renovations, and heating and cooling solutions, systems and services. 

Clean  energy  and  decarbonisation  solutions  in  industry,  including  electrification  of 
energy  intensive  industries,  and  in  cities,  in  particular  for  energy,  transport  and 
buildings. 

Sourcing,  production,  storage,  distribution  and  uptake  of  sustainable  fuels, 
facilitating decarbonisation of mobility.  

Clean,  multimodal  and  digitalised,  safe  transport  and  mobility  solutions,  including 
mobile  assets  (e.g.  vehicles,  vessels  including  fishing  vessels,  aircrafts,  rolling 
stocks) and infrastructures (among others charging infrastructure, ports or high speed 
rail), systems and operations. 

Supporting  the  development  and  deployment  of  smart  mobility,  including  vehicles, 
infrastructure, connected and automated mobility, smart traffic management systems 
and related services. 

Clean tech manufacturing and its supply chain, including through financial support to 
Strategic  Projects  under  Regulation  (EU)  2024/1735,  scaling  up  the  manufacturing 
capacity  of  net-zero  technologies  and  their  supply  chains,  and  by  ramping  up  of 
existing production lines.  

Strengthening  Union  capacity  in  innovation  and  industrial  deployment  of  advanced 
manufacturing and advanced materials. 

Circular  economy,  water  efficiency,  ocean  health  and  environmental  policy, 
including  solutions  to  protect,  restore  and  improve  the  quality  of  the  environment, 
including the air, water, marine and soil, and to halt and reverse biodiversity loss and 

EN 

58 

  EN 

(j) 

(k) 

(l) 

(m) 

(n) 

(o) 

2. 

1. 

2. 

3. 

4. 

to  tackle  the  degradation  of  ecosystem,  sustainable  solutions  for  climate  action  in 
agri-food and forestry supply chains. 

Climate and water resilience.  

Pollution prevention, control and remediation. 

Investment, innovation, and modernisation in sustainable blue economy sectors such 
as shipbuilding and shipping, offshore energy, ocean observation technologies, blue 
tech and preserving ecosystems.  

Sustainability  and  clean  transition  of  SMEs,  including  in  tourism,  construction  and 
other economic sectors.  

Market  uptake,  capacity  building  and  skills  development  for  the  clean  transition, 
including  clean  energy  transition  and  energy  demand  side  activities  (for  example 
NetZero  Industry  Academies)  and  transition  towards  sustainable  and  safe  mobility 
and sustainable tourism in cities, rural areas, communities, and buildings.  

Support  actions  for  the  development,  implementation,  monitoring  and  enforcement 
of  relevant  Union  legislation  and  policy.  This  includes  supporting  the  relevant 
institutions,  the  cooperation  between  national  authorities  and  with  stakeholders, 
studies,  the  development  and  deployment  of  tools  and  infrastructures,  including  IT 
infrastructure and tools. 

Support provided through the activities referred to in paragraph 1, may be provided 
in  any  form,  including  through  collaborative  research  and  innovation  activities  set 
out  in  Regulation  (EU)  [XXX]  [Framework  Programme  for  Research  and 
Innovation] and identified in a specific dedicated part of the Work Programme. 

Article 34 

Complementary rules 

For  activities  supporting  Coordination  and  Support  Actions  in  the  area  of  energy 
efficiency and clean energy transition, Union support may cover up to 100 % of the 
eligible costs, without prejudice to the co-financing principle. 

By way of derogation from Article 184(6) of the Financial Regulation, for activities 
supporting  Coordination  and  Support  Actions  in  the  area  of  energy  efficiency  and 
clean  energy  transition  and  LIFE  activities  referred  to  in  Article  34,  paragraph  1, 
point (a), the authorising officer responsible may authorise or impose, in the form of 
flat-rates, funding of the beneficiary’s indirect costs up to a maximum of 25 % total 
eligible  direct  costs,  excluding  direct  eligible  costs  for  subcontracting,  financial 
support to third parties and any unit costs or lump sums which include indirect costs. 

Work  programmes  shall  ensure  coherence  with  the  types  of  actions  planned  to  be 
implemented  under  the  Fund  referred  to  in  Article  10a(8)  of  Directive  2003/87/EC 
and  coherence  and  complementarity  with  the  Regulation  (EU)[XXX]  [Connecting 
Europe Facility] 

Work programmes adopted in accordance with the rules of this Regulation under this 
chapter  shall  integrate  in  a  specific  dedicated  part  and  ensure  coherence  with  the 
Competitiveness and Society activities supported under the Regulation (EU) [XXX] 
[Horizon Europe Framework programme for Research and Innovation]  

EN 

59 

  EN 

Article 35 

Competitive bidding mechanisms 

1. 

Award procedures under this chapter may take the form of competitive bidding. That 
includes  contracts  for  difference,  carbon  contracts  for  difference,  or  fixed  premium 
contracts to support decarbonisation investment, provided that the financial interests 
of  the  Union  are  protected  and  the  exposure  of  the  budget  remains  limited  to  a 
maximum  contribution.  Competitive  bidding  procedures  may  be  implemented 
through, and in  accordance with,  any of the budget  implementation  instruments  set 
out in Article 12. 

CHAPTER V 

SUPPORT FOR HEALTH, BIOTECH, AGRICULTURE AND 
BIOECONOMY 

Specific provisions for support to health, biotech, agriculture and bioeconomy policies  

Article 36 

1. 

2. 

1. 

(a) 

(b) 

Actions supported under this chapter shall contribute to the general objectives set out 
in Article 3(1) and the specific objectives set out in Article 3(2), point (b). 

Support  for  actions  under  this  chapter  shall  be  financed  from  the  budget  set  out  in 
Article 4(2) , and any additional contributions assigned in accordance with Article 5. 

Article 37 

Specific Activities 

Support  for  Health,  Biotech,  Agriculture  and  Bioeconomy  policy  shall  be 
implemented in particular through the following activities: 

Improving and protecting health, including cross-border health, by prioritising health 
promotion  and  disease  prevention  across  the  life  course  through  a  health-in-all  and 
One  Health  policies  approach,  with  a  special  emphasis  on  communicable  and  non-
communicable  diseases,  including  mental  health,  degenerative  health,  autism, 
cardiovascular  diseases,  cancer  and  other  non-communicable  diseases,  including 
those related to pollution, sexual and reproductive health and enhancing international 
health initiatives and cooperation. 

Strengthening the efficiency and resilience of health systems  by  reinforcing  access, 
use and re-use of health data and digital tools, infrastructures and services, including 
to support the European Health Data Space, deployment of Artificial Intelligence and 
robotics  based  solutions  in  healthcare,  advancing  the  digital  transformation  of 
healthcare,  enhancing  access  to  healthcare  services,  with  particular  focus  on  public 
health  and  healthcare  workforce,  developing  and  implementing  Union  health 
legislation,  also  by  use of  digital  technologies, promoting  evidence-based  decision-
making, (including by supporting Health technology  Assessment), providing digital 
solutions  for  monitoring  and  coordinating  and  encouraging  integrated  work  among 
national health systems to ensure coherence and efficiency across the Union. 

(c) 

Fostering  the  development,  production  capacity,  manufacturing  and  industrial 
deployment of health and bioeconomy technologies, to increase the competitiveness 

EN 

60 

  EN 

of the sector, and ensure availability of Union medicinal products, medical devices, 
digital  solutions  and  medical  countermeasures  relevant  for  preparedness  and 
response  to  cross-border  threats  to  health,  as  well  as  the  competitiveness  and 
resilience  of  the  sectors  by  ensuring  that  such  products  are  innovative,  safe, 
accessible, available,  and affordable, thereby promoting  equitable access across the 
Union. 

Supporting  the  discovery,  development,  derisking,  demonstration,  piloting  and  use, 
and  scaling-up  of  biotechnology  innovations,  accelerating  the  market  introduction 
and market uptake of biotechnology solutions, strengthening emerging value chains 
and providing access to finance and other support for SMEs, startups, scale ups and 
innovators. 

Protecting people by supporting the development, implementation and monitoring of 
health  security  policies,  in  cooperation  with  Member  States  authorities  and 
stakeholders,  as  well  as  coordinating  Union  and  national  prevention,  preparedness 
and response plans. 

Fostering an innovative and competitive bioeconomy sector in the Union, including 
in the areas of health biotech, biobased materials and products, valorising farm and 
forest  residues,  carbon  negative  products,  biomanufacturing  and  biochemicals,  in 
particular  by  supporting  the  discovery,  development,  derisking,  demonstration, 
piloting,  and  scaling-up  of  bioeconomy  innovations;  by  accelerating  the  market 
introduction and market uptake of bio-based materials from agriculture and forestry 
and  bioeconomy  solutions;  by  strengthening  emerging  value  chains;  by  building  a 
skilled  workforce,  by  providing  access  to  finance  and  other  support  for  SMEs, 
startups, scale ups and innovators. 

Fostering  the  competitiveness,  the  sustainability,  the  resilience  and  fairness  of 
agriculture,  fisheries,  aquaculture,  forestry  sectors  and  rural  and  coastal  areas,  and 
contribute to long term food security in the Union.  

for 

the  development, 

Supporting  actions 
implementation,  monitoring  and 
enforcement  of  relevant  Union  legislation  and  policy.  This  includes  supporting  the 
relevant  institutions,  the  cooperation  between  national  authorities  and  with 
stakeholders, studies, the development  and deployment  of tools and infrastructures, 
including IT infrastructure and tools.  

Work programmes adopted in accordance with the rules of this Regulation under this 
chapter  shall  integrate  in  a  specific  dedicated  part  and  ensure  coherence  with 
[Competitiveness and Society activities supported under the Regulation (EU) [XXX] 
[Horizon Europe Framework programme for Research and Innovation  

CHAPTER VI 

(d) 

(e) 

(f) 

(g) 

(h) 

2. 

SUPPORT FOR DIGITAL LEADERSHIP  

Specific provisions for support to digital leadership policy  

Article 38 

1. 

Actions supported under this chapter shall contribute to the general objectives set out 
in Article 3(1) and the specific objectives set out in Article 3(2), point (c). 

EN 

61 

  EN 

2. 

1. 

2. 

(a) 

(b) 

(c) 

Support  for  actions  under  this  chapter  shall  be  financed  from  the  budget  set  out  in 
Article 4(2), point (d), and any additional contributions assigned in accordance with 
Article 5.  

Article 39 

Specific activities to support digital leadership policy  

Support  for  digital  leadership  shall  address,  in  a  comprehensive  and  coherent 
manner,  the  entire  scope  of  the  digital  sector,  such  as  Artificial  Intelligence, 
(including  AI  Factories  and  Gigafactories),  high  performance  computing,  quantum 
technologies, semiconductors and photonics, robotics, large data technologies, telco-
edge  and  cloud  technologies,  6G  and  other  wireless  technologies,  communication 
networks,  advanced  connectivity,  including  6G  and  other  wireless  technologies, 
sensing  technologies,  cybersecurity  and  network  resilience,  software  engineering, 
augmented  reality  and  virtual  worlds,  digital  twins,  Union  digital  identity  and 
business wallets, trust technologies, new and emerging digital technologies as well as 
cross-sectoral  digital  technologies  and  applications,  including  those  with  dual-use 
potential, support for data technologies and data spaces. 

Support  for  digital  leadership  shall  be  implemented  in  particular  through  the 
following activities: 

Achieving leadership in digital and AI technologies through research and innovation, 
applied research, technology transfer, industrial deployment, and market uptake. The 
implementation  shall  include,  but  not  be  limited  to,  developing  and  shaping 
sustainable core digital technologies that reflect Union values, safeguard the Union’s 
security and foster its competitiveness globally. 

Achieving  technological  sovereignty  by  building  resilient  digital  ecosystems, 
including  advanced  digital  skills,  and  ensuring  a  high-level  of  cybersecurity  in  the 
Union. The implementation shall include, but not be limited to, creating an attractive 
ecosystem  for  disruptive  innovative  companies,  SMEs,  start-ups  and  scale-ups,  as 
well  as  emerging  industry  leaders  in  the  digital  sector  to  remain,  grow  and  thrive 
within the Union, supporting them in scaling up, expanding their markets, including 
through  procurement,  and  contributing  to  the  Union’s  digital  sovereignty,  with  a 
technological  value  chains, 
focus  on  addressing 
standardisation, 
technologies, 
the  security  of  supply  of  advanced  digital 
infrastructures, and services, needed capacities, including manufacturing, production 
capacity, and advanced digital skills both in the private and public sectors. 

the  complexity  of 

the 

Enabling the power of digital for businesses and citizens by deploying state-of-the-
art and sustainable digital applications, infrastructures and services across the Union. 
The  implementation  shall  include,  but  not  be  limited  to,  actions  to  research  and 
innovate, develop,  produce, manufacture, or deploy advanced digital infrastructures 
at  scale  across  the  Union  (e.g.  high-performance  computing,  telco-cloud-edge,  AI 
Factories  and  Gigafactories,  data  and  data  spaces,  testing  and  experimentation 
facilities,  semiconductor,  photonics  and  quantum  chips  pilot  lines,  quantum 
computing,  communication  and  sensing  infrastructures,  cybersecurity  hubs,  the  EU 
for  Business  Network,  European  Digital  Innovation  Hubs,  advanced  connectivity 
infrastructures  including  submarine  cables  and  non-terrestrial  networks),  the  EU 
Digital Identity Wallets and trust services as well as the European Business Wallets 
and  services,  secure  and  interoperable  digital  public  infrastructure,  to  act  as  a  key 
enabler  of  the  digital  transformation  and  in  support  of  societal  resilience  and 

EN 

62 

  EN 

preparedness, bringing clear added-value to businesses, public services and citizens. 
Where  relevant,  these  actions  shall  be  coordinated  with  national  investments  and 
shall otherwise exploit untapped potential to create a domestic market for advanced 
digital  technologies  ‘made  in  Europe’.  Such  actions  may  be  provided  under  the 
framework of Multi-Country Projects established in accordance with Decision (EU) 
2022/2481,  including  notably  those  implemented  through  the  European  Digital 
Infrastructure Consortia or Joint Undertakings. 

Supporting the Union’s digital transformation of public and private sectors, including 
to support the development and the circulation of digital skills. The implementation 
shall include, but  not  be limited to,  providing the necessary support to  accelerating 
and  deepening  the  uptake  and  deployment  of  digital  solutions  across  economic 
sectors, through research, innovation and deployment, to boost their productivity and 
competitiveness,  with  a focus on more complex technologies, as well as to  achieve 
societal  benefits.  Support  to  public  sector  applications  as  well  as  the  broader 
digitalisation  of  the  public  sector  shall  aim  at  ensuring  a  cohesive  Union-wide 
interoperable  digital  public  services  landscape,  support  technological  sovereignty, 
maximising their efficiency for businesses and citizens. The digital transformation of 
economic and public sectors shall also be supported by the other sectoral windows of 
the ECF. 

Support  actions  for  the  development,  implementation,  monitoring  and  enforcement 
of  relevant  Union  legislation  and  policy.  This  includes  supporting  the  relevant 
institutions,  the  cooperation  between  national  authorities  and  with  stakeholders, 
studies,  the  development  and  deployment  of  tools  and  infrastructures,  including  IT 
infrastructure and tools. 

Activities  under  this  Section  shall  support  the  development,  deployment  and 
procurement  of  advanced  cybersecurity  capacities,  infrastructures,  technologies  and 
capabilities,  with  a  view  to  ensure  the  security  of  critical  infrastructures  &  digital 
supply chains, develop an Union situational picture of the threat landscape as well as 
improve  detection  capacities  and  incident  response  capabilities;  supporting  the 
competitiveness  of  the  Union  cybersecurity  industrial  base,  cybersecurity  skills 
development  together  with  the  cyber  maturity  of  the  European  industrial  basis, 
including SMEs. 

Work programmes adopted in accordance with the rules of this Regulation under this 
chapter  shall  integrate  in  a  specific  dedicated  part  and  ensure  coherence  with  
Competitiveness  and  Society  activities  under  the  Regulation  (EU)  [XXX]  [Horizon 
Europe Framework programme for Research and Innovation  

(d) 

(e) 

3. 

4. 

EN 

63 

  EN 

 
CHAPTER VII 

SUPPORT FOR RESILIENCE AND SECURITY, DEFENCE 
INDUSTRY AND SPACE 

Article 40 

Subject matter  

Actions supported under this Section shall contribute to the general objectives set out 
in Article 3(1) and the specific objectives set out in Article 3(2), point (d). 

Support  for  actions  under  this  section  shall  be  financed  from  the  budget  set  out  in 
Article 4(2), point (e), and any additional contributions assigned in accordance with 
Article 5.  

Article 41 

Space and defence synergies  

A Space and Defence Advisory Board is set up and may advice the Commission on 
the  coordination  and  complementarity  between  space  and  defence  activities  as  laid 
down  Article  3(2)(d),  sub-points  (1)  and  (2)  and  related  financial  tools  to  increase 
efficiency of investments and effectiveness of results. The members of the Advisory 
Board referred to in paragraph 1 shall be appointed by Member States 

SECTION 1 

SUPPORT FOR RESILIENCE POLICY 

Article 42 

Specific activities to support resilience policies 

Support  to  Resilience  policy  shall  reinforce  the  strategic  autonomy,  economic 
security and the resilience of the Union industry by strengthening the different stages 
of the  raw materials  value chain,  including  through diversification of the supply of 
critical raw materials from third countries. 

Support  for  resilience  policy  shall  be  implemented  in  particular  through  the 
following activities:  

support  for  the  strengthening  of  the  EU  capacity  in  exploration,  extraction, 
processing and recycling of raw materials; 

purchasing of raw materials, in line with economic security needs and the green and 
digital  transition  objectives,  in  order  to  reduce  the  risk  of  supply  disruptions  for 
companies in the EU, including for establishing and managing stockpiles of critical 
raw materials in coordination with Member States and industry; 

financial  support  to  Strategic  Projects  under  the  Critical  Raw  Materials  Act  in  line 
with economic security needs and the green and digital transition objectives. 

support provided through the activities referred to in paragraph 2, may be provided in 
any form,  including  through collaborative research and innovation  activities set  out 

1. 

2. 

1. 

1. 

2. 

(a) 

(b) 

(c) 

3. 

EN 

64 

  EN 

in the Framework Programme for Research and Innovation [REF] and identified in a 
specific dedicated part of the Work Programme. 

4. 

Work programmes adopted in accordance with the rules of this Regulation under this 
chapter  shall  integrate  in  a  specific  dedicated  part  and  ensure  coherence  with 
Competitiveness  and  Society  activities  under  the  Regulation  (EU)  [XXX][Horizon 
Europe Framework programme for Research and Innovation]  

Article 43 

Complementary rules  

1. 

Strategic  projects  under  CRMA  and  strategic  projects  foreseen  in  relevant  sectoral 
legislation may apply the rules in Article 20.  

SECTION 2 

SUPPORT FOR DEFENCE INDUSTRY POLICY 

Article 44 

Specific activities to support defence industry policy 

1. 

(a) 

(b) 

(c) 

(d) 

(e) 

2. 

Support  for  defence  industry  policy  shall  be  implemented  in  particular  through  the 
following components: 

Support  to  the  deployment  of  European  Defence  Projects  of  Common  Interest  as 
referred to in Article 45 of this Regulation. 

Support to Defence R&D, Innovation and Technological Superiority as referred to in 
Article 46;  

Support  to  Defence  Industrial  Responsiveness,  Industrial  Scale-Up,  and  Resilience, 
as referred to in Article 47;  

Support  to  cooperation  in  Defence  Procurement,  Maintenance  and  Availability  as 
referred to in Article 48;  

Military Logistics Enablement and Support as referred to in Article 49; 

Support to new entrants, innovative start-ups, SMEs and scale-ups will be tailormade 
across  the  activities  listed  in  the  first  paragraph  to  ensure  speed,  flexibility  and 
agility.  It  will  take  the  form  of  a  dedicated  programme  EU  Defence  Innovation 
Scheme  (EUDIS),  that  will  include  innovative  and  scalable  activities,  including  in 
support  to  disruptive  technologies  and  to  single  entities,  such  as:  matchmaking 
events and business coaching for innovators, agile funding mechanisms, challenges, 
hackathons,  support  to  innovative  procurement,  iterative  upgrade  procurement 
models  for  rapidly  evolving  systems  and  any  other  actions  for  faster  innovation 
cycles and technology integration, validation and experimentation. 

3. 

Support  provided  through  the  activities  referred  to  in  paragraphs  1  and  2,  may  be 
provided in any form, including through collaborative research as well as innovation 
activity support to single entities and financial instruments. 

EN 

65 

  EN 

 
1. 

2. 

3. 

(a) 

(b) 

(c) 

4. 

(a) 

(b) 

(c) 

(d) 

(e) 

5. 

6. 

7. 

Article 45 

European Defence Projects of Common Interest 

European  Defence  Projects  of  Common  Interest  shall  consist  of  collaborative 
industrial projects aimed at reinforcing the competitiveness of the EDTIB throughout 
the  Union  while  contributing  to  the  development  of  Member  States’  military 
capabilities  and  systems  of  common  interest  and/or  use,  including  those  securing 
access to all operational domains, namely land, maritime, air, space and cyber. 

The Commission may identify European Defence Projects of Common Interest in an 
implementing act, adopted in accordance with the examination procedure referred to 
in Article 83, paragraph 3. 

The Commission shall, when identifying projects referred to in paragraph 2: 

duly  consider  the  guidance  provided  in  the  context  of  the  Defence  Industrial 
Advisory  Board,  as  referred  to  in  Article  56,  in  particular  the  contribution  of  the 
project  to  the  capability  priorities  identified  in  the  context  of  the  CFSP,  notably  of 
the  Capability  Development  Plan,  and  the  objectives  of  the  Strategic  Compass  for 
security and defence; 

identify overall financing needs and potential impacts for the Union budget; 

take into account any views of Member States. 

European  Defence  Projects  of  Common  Interest  shall  meet  the  following  general 
criteria: 

the project involves at least four Member States; 

the  project  aims  at  developing  capabilities,  including  those  securing  access  to 
strategic  domains  and  contested  spaces,  strategic  enablers,  and,  as  appropriate, 
systems acting as European defence infrastructure of common interest and use; 

the benefits  of the project  extend to  a wider part of the Union and  ensures a broad 
geographical participation 

the projects shall be particularly significant in size or scope and aim at mitigating a 
considerable level of technological or financial risk; 

the potential overall benefits of the project outweigh its costs, including in the longer 
term. 

A European Defence Project of Common Interest shall involve at least four Member 
States. The European Commission shall be able, where relevant, to participate in the 
project. 

A European Defence Project of Common Interest shall be considered to contribute to 
the  defence  capabilities  critical  for  the  security  and  defence  interests  of  the  Union 
and  its  Member  States  and  therefore  to  be  in  the  public  interest.  They  may  be 
established  in  the  framework  of  Structures  for  European  Armament  Programmes 
established in accordance with Regulation (EU) [XXX] [European Defence Industry 
Programme]. 

Member States may, without prejudice to Articles 107 and 108 TFEU, apply support 
schemes  and  provide  for  administrative  support  to  European  Defence  Projects  of 
Common Interest. 

EN 

66 

  EN 

8. 

9. 

1. 

(a) 

(b) 

(c) 

(d) 

The  deployment  of  European  Defence  Projects  of  Common  Interest  may  be 
considered an imperative reason of overriding public interest within the meaning of 
Article  6(4)  and  Article  16(1),  point  (c),  of  Directive  92/43/EEC  and  of  overriding 
public  interest  within  the  meaning  of  Article  4(7)  of  Directive  2000/60.  Therefore, 
the  planning,  construction  and  operation  of  related  production  facilities  may  be 
considered of overriding public interest, provided that the remaining other conditions 
set out in these provisions are fulfilled. 

The  Union  shall  support  any  activity  necessary 
the  development, 
industrialisation,  procurement  or  deployment  of  a  European  Defence  Project  of 
Common Interest notably through any of the activities supported under this Section. 

for 

Article 46 

Collaborative Defence Research & Development, Innovation and Technological 

Superiority 

Activities supporting Defence R&D, Innovation and Technological Superiority may 
cover, in particular: 

collaborative  research  actions  for  defence,  from  basic  to  applied  research,  focusing 
on jointly agreed capability priorities;    

collaborative  development  actions  for  new  defence  products  and  technologies, 
including at least system prototyping, testing, qualification, or certification;    

actions to support disruptive technologies for defence;  

actions  to  support  faster  innovation  cycles  and  technology  integration,  including 
continuous research and development and technological challenges;    

(e) 

spin-in actions to adapt civilian technologies for defence. 

Article 47 

1. 

(a) 

(b) 

Defence industrial Responsiveness, Scale-Up, and Resilience 

Activities  related  to  the  enhancement  of  the  Responsiveness,  Industrial  Scale-Up, 
and  Resilience:  to  enhance  responsiveness  and  resilience  of  the  European  Defence 
Technological  and  Industrial  Base,  enabling  it  to  develop,  produce,  and  sustain 
critical  defence  production  capacity/capabilities  at  the  necessary  scale  and  speed, 
including through supporting the industrial scale-up of innovative companies and by 
supporting skills development; may cover in particular: 

the optimisation, expansion, modernisation, upgrading or repurposing of existing, or 
the establishment of new, production capacities insofar as those components and raw 
materials  are  intended  or  used  wholly  for  the  production  of  defence  products,  in 
particular with a view to increasing production capacity or reducing lead production 
times,  including  on  the  basis  of  the  procurement  or  acquisition  of  the  requisite 
machine tools and any other necessary input; 

the  establishment  of  cross-border  industrial  partnerships,  including  through  public 
private  partnerships  or  other  forms  of  industrial  cooperation,  in  a  joint  industrial 
effort, such as cross-border joint ventures including activities that aim to coordinate 

EN 

67 

  EN 

 
 
(c) 

(d) 

(e) 

(f) 

2. 

(a) 

(b) 

(c) 

3. 

4. 

the  sourcing  or  reservation  and  stockpiling  of  defence  products,  components  and 
corresponding  raw  materials  insofar  as  those  components  and  raw  materials  are 
intended  or  used  wholly  for  the  production  of  defence  products,  as  well  as  to 
coordinate production capacities and production plans; 

the  building-up  and  making  available  of  reserved  surge  manufacturing  capacities 
(ever warm facilities) of defence products, their components and corresponding raw 
materials, insofar as those components and raw materials are intended or used wholly 
for  the  production  of  defence  products,  in  accordance  with  ordered  or  planned 
production volumes; 

fostering industrialisation and commercialisation of defence products that have been 
developed  in  the  framework  of  actions  funded  by  the  Union  or  other  cooperative 
activities  conducted  with  support  by  at  least  two  Member  States  including  through 
the establishment of cross-border industrial partnerships, public private partnerships 
or other forms of industrial cooperation, ramping-up of initial production as well as 
licensing production, where appropriate; 

the testing, including the necessary infrastructure, and, as appropriate, reconditioning 
certification  of  defence  products  with  a  view  to  addressing  their  obsolescence  and 
making them useable by end users; 

reducing  industrial  strategic  dependencies,  in  particular  the  replacement  of 
components subject to restrictions by a non-associated third country or third country 
entity or the development of the ability to substitute or remove such components. 

To  ensure  the  availability  of  defence  products  in  time  and  in  volume  thereby 
fostering  the  competitiveness  of  the  EDTIB  as  well  as,  where  relevant,  of  the 
Ukrainian  DTIB,  the  Commission  shall  support  the  following  set  of  measures  (EU 
Military Sales Mechanism – EU MSM): 

the  establishment,  management  and  maintenance  of  defence  industrial  readiness 
pools of defence products; 

the  establishment  and  maintenance  of  a  single,  centralised,  catalogue  of  defence 
products developed by the EDTIB; and the Ukrainian DTIB; 

the  strengthening  of  administrative  capacities  related  to  public  procurement  of 
defence products. 

A  Defence  Industrial  Readiness  pool,  as  referred  to  in  paragraph  2,  point  (a),  shall 
only  be  established,  managed  and  maintained  by  a  SEAP,  as  set  out  in  Regulation 
[EDIP]  and  shall  offer  Member  States,  associated  countries  and  Ukraine  an 
immediate and preferential purchase or use/lease option to the defence products part 
of the pool. 

The Commission, upon consultation of the EDA, shall establish and keep up-to-date 
the catalogue referred to in the paragraph 2, point (b). The Commission shall consult 
the EDA and take into account  its views in  drawing  up the technical  specifications 
for  that  catalogue  and,  where  appropriate,  shall  procure  the  corporate  IT  platform 
required  to  establish  it.  Member  States,  Ukraine  and  economic  operators  shall  be 
invited to populate that catalogue on a voluntary basis. 

EN 

68 

  EN 

1. 

2. 

3. 

4. 

5. 

6. 

1. 

Article 48 

Common Defence Procurement, Maintenance and Availability 

The  Programme  shall  support  activities  that  aim  at  increasing  cooperation  among 
Member States and associated countries in joint certification capability development, 
procurement, maintenance and availability of defence capabilities, thereby reducing 
fragmentation  and  enhancing  interoperability,  achieving  economies  of  scale, 
ensuring  faster  access  to  needed  equipment,  and  strengthening  collective  defence 
readiness. 

Member  States  and  associated  countries  carrying  out  an  action  related  to  common 
defence  procurement,  maintenance  and  availability  shall  appoint,  by  unanimity,  an 
eligible legal entity as agent to act on their behalf for the purposes of that action. The 
agent  shall,  in  particular,  carry  out  the  procurement  procedures  and  conclude  the 
resulting  contracts  with  contractors  on  behalf  of  the  participating  countries.  The 
procurement  agent  may  participate  in  the  action  as  a  beneficiary  and  act  as  the 
coordinator  of  the  consortium,  therefore  being  able  to  manage  and  combine  funds 
from the Programme and funds from the participating Member States and associated 
countries. 

The agent shall apply in its procurement procedures and contracts criteria equivalent 
to  those  set  out  in  Article  51  to  its  procurement  procedures  and  contracts  with 
contractors,  and  require  in  the  call  for  tender  that  these  criteria  are  applied  to 
subcontractors. 

The  agents  shall  notify  the  Commission  of  the  guarantees  and  mitigation  measures 
referred  to  in  Article  51.  Further  information  on  those  guarantees  and  mitigation 
measures shall be made available to the Commission upon request. The Commission 
shall  inform  the  committee  referred  to  in  Article  83(1),  point  e,  of  any  notification 
provided in accordance with this paragraph. 

Any  contract  resulting  from  an  action  related  to  Common  defence  procurement, 
maintenance  and  availability  shall  include  provisions  governing  the  purchase  of 
additional  quantities  of  defence  products  for  other  Member  States,  associated 
countries or Ukraine. 

For  the  purpose  of  this  article,  ‘agent’  means  a  contracting  authority  as  defined  in 
Article  2(1),  point  (1),  of  Directive  2014/24/EU  and  Article  3(1)  of  Directive 
2014/25/EU  established  in  a  Member  State  or  an  associated  country,  the  European 
Defence Agency, a Structure for European Armament Programme or an international 
organisation that is designated by Member States, associated countries or Ukraine to 
conduct a common procurement on their behalf. 

Article 49 

Military Logistics Enablement and Support 

Activities related to the enhancement of military mobility in the Union by supporting 
dual  use  of  civilian-military  assets,  including  equipment,  infrastructure  and 
superstructures, facilitating, enabling and supporting military movements and access 
to  military  mobility  capabilities,  including,  through  the  pooling  and  sharing  of 
military mobility assets,; this also includes supporting military bases, encompassing 
housing  for  military  personnel  and  social  infrastructure,  to  enable  and  sustain 
increased stationing of military personnel in Member States; may cover: 

EN 

69 

  EN 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

The  incentivisation  of  the  procurement  of  products  which  enable  or  enhance  the 
movement,  transportation,  or  deployment  of  military  personnel,  equipment,  or 
supplies, and improve the access to military mobility capabilities. 

The assistance to Member States in identifying and accessing transport and logistical 
resources and equipment that may be available from the commercial market or other 
sources for the purpose of supporting military mobility. 

The support to the digitalisation of Military Mobility related processes, to ensure and 
facilitate  direct  and  secure  exchange  of  information  between  Member  States 
requesting and approving military movement and other relevant procedures. 

The reinforcement, modernisation, expansion and repurposing of industrial capacities 
for  the  production  and  maintenance  of  products  directly  contributing  to  and 
improving military mobility in the Union. 

The  training,  reskilling,  and  upskilling  of  personnel  to  enhance  the  availability  of 
skilled  personnel  for  the  transportation  of  defence  products,  components  and 
supplies, notably for the safe and efficient movement of oversized, overweight, and 
dangerous goods. 

The enhancement of the protection and resilience of infrastructures that are strategic 
for military mobility especially for those located on a military mobility corridor and 
those having a European impact. 

Support  actions  for  the  development,  implementation,  monitoring  and  enforcement 
of  relevant  Union  legislation  and  policy.  This  includes  supporting  the  relevant 
institutions,  the  cooperation  between  national  authorities  and  with  stakeholders, 
studies,  the  development  and  deployment  of  tools  and  infrastructures,  including  IT 
infrastructure and tools. 

2. 

Activities  will  be  implemented  in  complementarity  with  Regulation  (EU)  [XXX] 
[CEF]. 

1. 

(a) 

(b) 

2. 

(a) 

(b) 

Article 50 

Complementary rules on the association of third countries 

In addition to the rules in Article 11, actions under the specific objective referred to 
in Article 3(2), point d, sub-point (2) shall be open to the participation of: 

A Members of the European Free Trade Association (EFTA) which are members of 
the European Economic Area (EEA), in accordance with the conditions laid down in 
the Agreement on the EEA; 

Ukraine. 

Complementary to provisions required in Article 11, the association agreement with 
third countries other than those referred to in paragraph 1 shall 

specify  how  eligibility  conditions  are  to  be  adapted,  in  particular  to  enable  the 
participation  of  entities  established  in  the  associated  country  but  controlled  by 
another third country or by another third country’ entity; 

lay  down  appropriate  measures  to  ensure  security  of  supply  as  well  as  any  other 
measure  required  for  the  protection  of  the  security  and  defence  interests  of  the 
European Union and of the Member States; 

EN 

70 

  EN 

(c) 

contribute  to  an  increase  in  the  standardisation  of  defence  systems  and  a  greater 
interoperability between Member States’ and those other third countries’ capabilities. 

Article 51 

Complementary eligibility rules for grants 

In addition to fulfilling any conditions of eligibility provided under Article 9 of this 
Regulation,  Union  recipients  of  Union  funding  shall  comply  with  the  obligations 
included in paragraphs 2 to 6. 

Recipients  shall  have  their  executive  management  structures  in  the  Union  or  in  an 
associated  country  and  shall  not  be  subject  to  control  by  a  non-associated  third 
country or by a non-associated third-country entity. 

By  derogation  from  paragraph  2  a  legal  entity  established  in  the  Union  or  in  an 
associated  country  and  controlled  by  a  non-associated  third  country  or  a  non-
associated third country entity shall be eligible to be a recipient of Union funding if 
guarantees approved in accordance with the national procedures of a Member State 
or  associated  country  in  which  it  is  established;  including  adequate  measures 
pursuant to screenings, as set out in Article 2, point (3), of Regulation (EU) 2019/452 
are made available to the Commission. 

These guarantees measures shall provide assurances that the involvement in an action 
of a legal entity as referred to in that subparagraph would not contravene the security 
and  defence  interests  of  the  Union  and  its  Member  States  as  established  in  the 
framework of the CFSP pursuant to Title V of the TUEU. 

Guarantees as referred to in the first subparagraph shall in particular substantiate that, 
for the purposes of an action, measures are in place to ensure that: 

control over the legal entity is not exercised in a manner that restrains or restricts its 
ability  to  carry  out  the  action  and  to  deliver  results,  that  imposes  restrictions 
concerning  its  infrastructure,  facilities,  assets,  resources,  intellectual  property  or 
knowhow  needed  for  the  purposes  of  the  action,  or  that  undermines  its  capabilities 
and standards necessary to carry out the action; 

access by a non-associated third country or by a non-associated third-country entity 
to sensitive information relating to the action is prevented and the employees or other 
persons involved in the action have national security clearance issued by a Member 
State or an associated country, where appropriate; 

ownership  of  the  intellectual  property  arising  from,  and  the  results  of,  the  action 
remain within the recipient during and after completion of the action, are not subject 
to  control  or  restriction  by  a  non-associated  third  country  or  by  a  non-associated 
third-country entity, and are neither exported outside the Union or outside associated 
countries  nor  accessible  from  outside  the  Union  or  outside  associated  countries 
without  the  approval  of  the  Member  State  or  the  associated  country  in  which  the 
legal entity is established and in accordance with the objectives set out in Article 3. 

If  considered  to  be  appropriate  by  the  Member  State  or  the  associated  country  in 
which the legal entity is established, additional guarantees may be provided. 

The Commission shall inform the committee referred to in Article 83(1), point (e) of 
any legal entity considered to be eligible in accordance with this paragraph. 

1. 

2. 

3. 

4. 

5. 

(a) 

(b) 

(c) 

6. 

7. 

EN 

71 

  EN 

8. 

9. 

10. 

11. 

12. 

13. 

14. 

15. 

(a) 

Unless in  certain  duly  substantiated and exceptional  circumstances to  be defined in 
the  work  programme  or  the  documents  related  to  the  award  procedure,  the 
infrastructure,  facilities,  assets  and  resources  of  the  recipients  of  Union  funding 
involved in an action which are used for the purposes of that action shall be located 
on the territory of a Member State or of an associated  country.  Where appropriate, 
the work programmes may set out conditional exceptions to this rule.  

For  actions  referred  to  in  Article  44(1),  points  (a),  (b),  (e)  and  in  Article  45(2), 
conditions referred to in paragraphs 2 to 6 shall apply to subcontractors involved in 
the  action.  ‘Subcontractors  involved  in  an  action’  refers  to  subcontractors  with  a 
direct contractual relationship to a recipient, other subcontractors to which at least 10 
% of the total eligible costs of the action is allocated, and subcontractors which may 
require  access  to  classified  information  in  order  to  carry  out  the  action. 
Subcontractors involved in an action are not members of the consortium. 

For actions referred to in Article 44(1), points (a)  and (d), conditions referred to in 
paragraphs  2  to  6  shall  apply  to  subcontractors  involved  in  the  action  or  in  the 
common procurement. ‘Subcontractors involved in the common procurement’ means 
legal entities which provides critical inputs that possess unique attributes essential for 
the  functioning  of  a  product,  which  is  allocated  at  least  15  %  of  the  value  of  the 
contract, and which needs access to classified information for the performance of the 
contract. 

The results of actions referred to in 44(1), points (a) and (b) and in Article 44(2), as 
well  as  the  products  or  technologies  stemming  from  these  actions,  shall  not  be 
subject  to  any  control  or  restriction  by  a  non-associated  third  country  or  by  a  non-
associated  third-country  entity,  directly,  or  indirectly  through  one  or  more 
intermediate legal entities, including in terms of technology transfer. 

For actions referred to in Article 44(1), points (a), (c) and (d), the estimated cost of 
components originating in the Union shall not be lower than 65 % of the estimated 
cost  of  the  end  product.  No  components  shall  be  sourced  from  third  countries  that 
contravene  the  security  and  defence  interests  of  the  Union  and  the  Member  States, 
including respect for the principle of good neighbourly relations. 

For  actions  referred  to  in  Article  44(1),  points  (a),  (c)  and  (d),  recipients  and 
contractors  shall  have  the  ability  to  decide,  without  restrictions  imposed  by  third 
countries or by third-country entities, on the definition, adaptation and evolution of 
the design of the defence product procured or the increase in production capacity of 
which is supported, including the legal authority to substitute or remove components 
that are subject to restrictions imposed by third countries or by third-country entities. 

For actions referred to in Article 44(1), points (c) and (d), the work programme may 
provide that eligibility  requirements set  out  in  paragraphs 10 and 11 of this  Article 
will be assessed at the end of the action. 

Except for actions referred to in Article 44, paragraph 2 or unless specified otherwise 
in the work programmes, Union support shall only be granted to actions carried out 
by: 

legal entities cooperating within a consortium of at least three eligible legal entities 
which  are  established  in  at  least  three  different  Member  States  or  associated 
countries.  At  least  three  of  those  eligible  legal  entities  established  in  at  least  two 
different Member States or associated countries shall not, during the entire period in 

EN 

72 

  EN 

which the action is carried out, be controlled, directly or indirectly, by the same legal 
entity and shall not control each other; 

or to a Structure for European Armament Programme established in accordance with 
Regulation (EU) [XXX][EDIP] 

If  a  register  is  created  at  Union  level  with  the  aim  of  increasing  the  availability  of 
products  that  enable  or  enhance  the  mobility,  transportation,  or  deployment  of 
military  personnel,  equipment,  or  supplied,  products  supported  under  Article  45a 
shall be registered in  that  registry for the purpose of making that product  available 
for the Union or its Member States. 

Only  the  following  legal  entities  shall  be  eligible  for  actions  related  to  common 
defence procurement, maintenance and availability, as referred to in Article 48: 

public contracting authorities of Member States or associated countries; 

International Organisations; 

the  Structures  for  European  Armament  Programme,  established  in  accordance  with 
Regulation (EU) [XXX] [EDIP]; 

the European Defence Agency. 

Notwithstanding  Article  201  of  Regulation  (EU,  Euratom)  2024/2509,  only  the 
financial capacity of a consortium coordinator shall be verified. 

In  accordance  with  Article  153(3)  of  Regulation  (EU,  Euratom)  2024/2509,  the 
evaluation committee may be assisted by independent external experts holding valid 
personal  security  clearance,  if  required  by  the  work  programme.  By  way  of 
derogation from Article 242 of the Regulation (EU, Euratom) 2024/2509, the list of 
independent experts shall not be made public. 

Article 52 

Funding rates 

For actions referred to in Article 44(1), point (a), the Union support may cover up to 
100% of the eligible costs. 

For  actions  referred  to  in  Article  44(1),  point  (b),  supporting  defence  research  and 
innovation, Union support may cover up to 100% of the eligible costs. 

For  actions  referred  to  in  Article  44(1),  point  (b),  supporting  the  development  of 
defence  technologies  and  capabilities,  Union  support  may  cover  up  to  50%  of  the 
eligible costs or, for procurement of R&D services, up to 50% of the estimated value 
of the contract. 

For actions referred to in Article 44(1), point (c), the Union support may cover up to 
50% of the eligible costs.  

For actions referred to in Article 44(1), point (d), the Union support may cover up to 
25% of the estimated value of the common procurement. 

For actions referred to in Article 44(1), point (e), the Union support may cover: 

where the action supports a procurement carried out by Member States up to 25% of 
the estimated value of the procurement;  

(b) 

16. 

17. 

(a) 

(b) 

(c) 

(d) 

18. 

19. 

1. 

2. 

3. 

4. 

5. 

6. 

(a) 

EN 

73 

  EN 

(b) 

7. 

8. 

1. 

(a) 

(b) 

1. 

2. 

(a) 

where  the  actions  aims  at  assisting  Member  States  to  accessing  transport  and 
logistical resources, up to 100% of the eligible costs. 

In order to properly take into account the particular situation of the Strategic Partner 
concerned, the Union support may cover up to 100% of the eligible costs for actions 
referred to in Article 44(1), point (f). 

By  way  of  derogation  from  Article  184(6)  of  the  Financial  Regulation,  for  actions 
referred to in Article 44(1), point (a) and (b), the authorising officer responsible may 
authorise  or  impose,  in  the  form  of  flat-rates,  funding  of  the  beneficiary’s  indirect 
costs up to a maximum of 25 % total eligible direct  costs, excluding direct eligible 
costs for subcontracting, financial support to third parties and any unit costs or lump 
sums which include indirect costs.  

Article 53 

Award criteria 

As  specified  in  the  work  programmes,  proposals  for  actions  shall  be  assessed  in 
accordance with excellence-oriented award criteria: 

The quality and efficiency of the implementation of the action.  

The  objectives,  priorities  and  the  expected  results  set  for  the  relevant  action,  in 
particular trough the evaluation of one or more of the following criteria as specified 
in  the  work  programmes:  (i)  contribution  to  excellence  in  the  defence  domain,  (ii) 
innovation  capacities,  (iii)  cross-border  cooperation,  in  particular  with  SMEs  and 
mid-caps  that  bring  substantial  added-value  to  the  action,  (iv)  competitiveness,  (v) 
increase  in  production  capacities  and  availability,  (vi)  reduction  of  lead  production 
time,  (v)  increase  in  interoperability,  (vii)  increase  in  interchangeability  and  (viii) 
security of supply throughout the Union in response to identified risks, including in 
particular  high  exposure  to  the  risk  of  materialisation  of  conventional  military 
threats. 

Article 54 

Ownership of results 

Where Union support is provided in the form of a grant, Union institutions, bodies, 
offices  or agencies as  well as granting authorities shall enjoy  upon request  royalty-
free  access  rights  to  results  for  the  purpose  of  developing,  implementing  and 
monitoring  existing  Union  policies  or  programmes  in  the  fields  of  its  competence 
and the right to grant, or to require the recipients to grant, non-exclusive licenses to 
third parties to exploit the results under fair and reasonable conditions to be set out in 
the  contractual  relationships  between  the  interested  parties  without  any  right  to 
sublicense unless otherwise specified in the grant agreement.  

Without  prejudice  to  applicable  export  control  rules  under  Member  States  and 
associated countries responsibility: 

The national authorities of Member States and associated countries shall enjoy access 
rights to the special reports of activities funded under  Article 44 paragraph 1, point 
(b). Such access rights shall be granted on a royalty-free basis and transferred by the 
Commission to the Member States and associated countries after the Commission has 
ensured that appropriate confidentiality obligations are in place. 

EN 

74 

  EN 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

3. 

The  national  authorities  of  Member  States  and  associated  countries  shall  use  the 
special report solely for purposes related to the use by or for their armed forces, or 
security  or  intelligence  forces,  including  within  the  framework  of  their  cooperative 
programmes. Such use shall include study, evaluation, assessment, research, design, 
product acceptance and certification, operation, training and disposal, as well as the 
assessment and drafting of technical requirements for procurement. 

Where  two  or  more  Member  States  or  associated  countries  have,  multilaterally  or 
within the framework of the Union, jointly concluded one or several  contracts with 
one or more recipients to further develop together results of activities supported by 
the  Fund  under  Article  45  paragraph  1,  point  (b),  they  shall  enjoy  access  rights  to 
those results insofar as they are owned by such recipients and are necessary for the 
execution  of  the  contract  or  contracts.  Such  access  rights  shall  be  granted  on  a 
royalty-free basis and under specific conditions aiming to ensure that those rights are 
used  only  for  the  purposes  of  the  contract  or  contracts  and  that  appropriate 
confidentiality obligations are put in place. 

For actions supporting development of defence technologies and capabilities, access 
rights to the results of development actions shall be granted to the national authorities 
co-financing the action under fair and reasonable conditions to be agreed upon with 
the recipients generating those results. Terms and conditions for the exercise of such 
access  rights  shall  be  set  out  in  the  contractual  relationship  between  the  recipients 
and the national authorities co-financing the action.  

the 
industrial 
For  actions  supporting  defence 
establishment of strategic production capacities, the Commission shall be allowed to 
provide  the  Member  States  and  associated  countries  with  the  relevant  action 
documentation upon request in order to avoid double funding of the same costs.  

reinforcement,  scale-up,  or 

Where  the  Union  supports  common  procurement  of  defence  products,  participating 
Member  States  and  associated  countries  shall  make  a  relevant  set  of  information, 
such as main characteristics, performances, unit costs and delivery times, available to 
other Member States and associated countries upon request to allow them to join the 
procurement at a later stage under fair and reasonable conditions.  

Such access rights shall include the right to authorise other legal entities established 
in  the  Union  or  associated  countries  to  use  the  results  on  their  behalf,  under 
conditions of confidentiality where appropriate. 

Any transfer of ownership of results, or the granting of exclusive licences for results, 
generated with support to legal entities established in non-associated third countries 
or  to  non-associated  third-country  entities  shall  be  subject  to  prior  notification  and 
approval  by  the  Commission  or  the  relevant  Member  State  or  associated  country 
authorities,  which  takes  place  within  3  years  after  the  final  payment  of  the  action, 
under  conditions  ensuring  the  protection  of  the  Union’s  security  and  defence 
interests.  

Article 55 

Additional applicable rules on classified information 

1. 

Natural persons who are resident in and legal persons that are established in a third 
country  may  handle  Union  classified  information  regarding  the  Programme  only 
where they are subject, in those countries, to security regulations  ensuring a degree 
of  protection  at  least  equivalent  to  that  provided  by  the  security  rules  of  the 

EN 

75 

  EN 

2. 

3. 

4. 

5. 

1. 

2. 

3. 

Commission and of the Council, as set out in Decision (EU, Euratom) 2015/444 and 
Decision 2013/488/EU, respectively. 

Without prejudice to Article 13 of Decision 2013/488/EU and to the rules governing 
the field of industrial security set out in Decision (EU, Euratom) 2015/444, a natural 
or  legal  person,  third  country  or  international  organisation  may  be  given  access  to 
Union  classified  information  where  considered  to  be  necessary  on  a  case-by-case 
basis, according to the nature and content of such information, the recipient’s need to 
know and the degree of advantage to the Union. 

Where actions involve, require or contain classified information, the relevant funding 
body shall specify in the documents concerning the call for proposals or tenders the 
measures  and  requirements  necessary  to  ensure  the  security  of  such  information  at 
the requisite level. 

The  equivalence  of  the  security  regulations  applied  in  a  third  country  or  by  an 
international organisation shall be laid down in a security of information agreement, 
including  industrial  security  matters  if  relevant,  concluded  or  to  be  concluded 
between the Union and that third country or international organisation in accordance 
with the procedure provided for in Article 218 TFEU and taking into account Article 
13 of Decision 2013/488/EU. 

The security framework to ensure the appropriate protection of classified foreground 
information generated in carrying out in an action funded under this Section shall be 
established in accordance with Decisions (EU, Euratom) 2015/444 and implementing 
rules,  with  the  assistance  of  security  experts  appointed  by  the  Member  States  and 
associated  countries  on  whose  territory  the  beneficiaries  are  established.  The 
Member  States  and  associated  countries,  in  the  framework  of  the  works  of  the 
Commission Security Expert Group (ComSEG), shall provide the Commission with 
a  jointly  agreed  security  classification  guide.  If  no  such  specific  jointly  agreed 
security classification guide is set up by the Member States and associated countries, 
the Commission shall set up the security framework for the action in accordance with 
foreground 
the  applicable  Commission  security  provisions.  The  classified 
information generated in carrying out in an action funded under this Section shall not 
be  disseminated  further  without  a  certified  “need  to  know”  agreed  by  the 
participating  Member  States  and  associated  countries.  The  applicable  security 
framework for the action shall in any event be put in place before the signature of the 
funding agreement. 

Article 56 

Defence Industrial Advisory Board 

A Defence Industrial Advisory Board is hereby established. 

The general task of the Board is to assist and provide advice and recommendations to 
the  Commission  pursuant  to  this  Regulation.  It  shall  notably  provide  advice  on  the 
long-term investment strategy of the defence policy window. 

The  Defence  Industrial  Board  shall  be  composed  of  representatives  of  the  Member 
States, of the Commission and of the High Representative/Head of the Agency. Each 
Member State shall nominate one representative and one alternate representative. 

EN 

76 

  EN 

SECTION 3 

SPACE SYSTEMS AND SPACE POLICY IMPLEMENTATION 

Article 57 

Specific provisions  

Activities  supported under this  section shall contribute to  the general  objectives set 
out in Article 3(1) and the specific objectives set out in Article 3(2), point (e). 

Support for activities under this section shall be financed from the budget set out in 
Article 4(2), point (e), and any additional contributions assigned in accordance with 
Article 6. 

Article 58 

Components 

The  Union  space  systems  and  space  policy  shall  be  implemented  in  particular 
through the following components: 

Positioning,  Navigation  &  Timing  (PNT),  including  Galileo  and  EGNOS  sub-
components; 

Earth Observation (EO), including Copernicus and Earth Observation Governmental 
Service (EOGS) sub-components; 

Secure  Connectivity,  including  Infrastructure  for  Resilience,  Interconnectivity  and 
Security  by  Satellite 
(IRIS²)  and  Governmental  Satellite  Communication 
(GOVSATCOM) sub-components; 

Space  Situational  Awareness  (SSA),  including  Space  Surveillance  and  Tracking 
(SST),  Space  Weather  Events  (SWE),  and  Near  Earth  Objects  (NEO)  sub-
components; 

access to space; 

Space commercialisation and space economy; 

Technological sovereignty, research and innovation. 

Work programmes adopted in accordance with the rules of this Regulation under this 
section  shall  integrate  in  a  specific  dedicated  part  and  ensure  coherence  with  the 
Competitiveness  and  Society  activities  supported  under  the  Regulation  (EU) 
[XXX][Framework programme Horizon Europe] and taking into account the specific 
rules under this Section.  

Article 59 

Positioning, Navigation & Timing (PNT) 

The Positioning, Navigation & Timing (PNT) component (Galileo and EGNOS sub 
components)  supported  under  this  section  shall  provide  long-term,  state-of-the-art 
and  secure  positioning,  navigation  and  timing  services,  without  interruption 
including in adverse conditions, and wherever possible at global level, and be able to 
support the Union’s political priorities. 

1. 

2. 

1. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

1. 

EN 

77 

  EN 

2. 

(a) 

(b) 

(c) 

(d) 

3. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

4. 

5. 

The eligible activities of the PNT component shall include: 

at  least  the  management,  operation,  maintenance,  continuous  improvement  and 
protection of space-and ground infrastructure and services provided;  

the  evolution  of  the  PNT  services  and  the  development  and  deployment  of  future 
generations of the systems ; including for Low Earth Orbits (LEO-PNT);  

the  research  and  development  activities  supporting  the  modernization  of  the 
infrastructure  (‘upstream  R&D’)  and  the  development  of  applications,  user 
technology, standardisation and certification (‘downstream R&D’);  

the cooperation with other regional or global satellite navigation systems, including 
to  facilitate  compatibility  and  interoperability  and  the  promotion  of  the  role  of  the 
Union as a global actor in the space sector, encourage international cooperation, and 
support European space diplomacy. 

The services provided by the Union’s PNT component shall in particular cover: 

an open service for use by consumers (OS); 

a high-accuracy service for professional or commercial use (HAS); 

a high-accuracy service for professional or commercial use (OSNMA); 

a public regulated service restricted to government-authorised users (PRS); 

a multi-hazard emergency warning service (EWSS); 

a timing service (TS); 

a space navigation service for use by operators of space assets; 

a  global  stand-alone  search  and  rescue  service,  including  for  governmental  users, 
integrating return communication capabilities to support rescue operation (SAR); 

a  safety  of  life  services  for  users  for  whom  safety  is  essential,  including  civil 
aviation, maritime, and other transport applications (SoL); 

a data dissemination service (EDAS); 

radio-frequency  interference  monitoring  services  for  different  authorised  user 
communities of all space components;  

a contribution to complementary PNT services, which shall increase the resilience in 
case of disruptions to the services provided by the PNT component. 

PRS  shall  be  free  of  charge  for  the  Member  States,  the  Council,  the  Commission, 
EEAS and, where appropriate, duly  authorised  Union agencies.  The services of the 
PNT  component  shall  be  provided  as  a  priority  over  the  territories  geographically 
located in Europe of all Member States and third countries participating in the PNT 
sub-components. 

The Commission  may adopt,  by means of implementing acts,  measures required to 
establish and regulate access policies for PNT data and services. These implementing 
acts shall be adopted in accordance with the advisory procedure referred to in Article 
83, paragraph 2. 

EN 

78 

  EN 

1. 

2. 

3. 

4. 

5. 

(a) 

(b) 

(c) 

Article 60 

Earth Observation 

The  Earth  Observation  (EO)  system  shall  consist  of  Copernicus,  and  of  the  Earth 
Observation  Governmental  Service  (EOGS).  Copernicus 
is  an  operational, 
autonomous,  user-driven,  civil  Earth  observation  system  under  civilian  control, 
building  on  the  existing  national  and  European  capacities.  It  shall  offer  geo-
information  data and services, comprising satellites, ground infrastructure, data and 
information processing facilities, and distribution infrastructure, based on a free, full 
and open data policy and, where appropriate, integrating the needs and requirements 
of security.  

Copernicus shall also support the formulation, implementation and monitoring of the 
Union’s  and  its  Member  States’  policies  in  particular  in  the  fields  of  environment, 
climate  change,  marine,  maritime,  atmosphere,  agriculture  and  rural  development, 
preservation  of  cultural  heritage,  civil  protection,  infrastructure  monitoring,  safety 
and  security,  as  well  as  digital  economy,  under  the  Digital  Leadership  window, 
which shall be aligned with the objective of Copernicus.  

Copernicus shall promote the international coordination of Earth observation systems 
and  related  exchanges  of  data  in  order  to  strengthen  its  global  dimension  and 
complementarity  taking  account  of  international  agreements  and  coordination 
processes. 

‘Copernicus core users’ are the Union institutions and bodies and European, national 
or regional public bodies in the Union or associated third countries entrusted with a 
public service mission for the definition, implementation, enforcement or monitoring 
of civilian public policies, such as environmental, civil protection, safety, including 
safety of infrastructure, or security policies, which benefit from Copernicus data and 
Copernicus  information  and  have  the  additional  role  of  driving  the  evolution  of 
Copernicus. 

 To  ensure  its  continuity  and  evolution,  and  meet  the  evolving  users’  needs,  in 
particular  Union  institutions  and  bodies  and  European,  national,  or  regional  public 
bodies  in  the  Union  or  associated  third  countries,  Copernicus  shall  in  particular  be 
composed of:     

Copernicus Infrastructure, including development, deployment, and operations of the 
Copernicus  Sentinels,  access  to  third-party  space-based  Earth  observation  data  and 
sustained access to in-situ and other ancillary data, including possible contributions 
to international in-situ networks; 

Copernicus Services, including environmental monitoring on a global level for land, 
climate  change,  atmosphere  and  marine  environments;  emergency  management 
services;  prevention  and  preparedness  services;  security  services  within  the  Union; 
including  maritime  surveillance  and  border  monitoring;  support  to  Union  external 
action and Common Foreign and Security Policy; 

Copernicus  data  access  and  distribution,  including  infrastructure  and  services  to 
ensure the discovery, viewing, access to, distribution and exploitation and long-term 
preservation  of  Copernicus  data  and  Copernicus  information,  in  a  user-friendly 
manner,  notably  the  synergies  with  other  data  spaces,  such  as  the  European  Green 
Deal Data Space or Digital Twins.   

EN 

79 

  EN 

(d) 

6. 

7. 

8. 

(a) 

(b) 

(c) 

9. 

10. 

(a) 

(a) 

11. 

12. 

The Commission may adopt, by means of implementing acts, technical specifications 
referring to the eligible actions listed in paragraph 4. Those implementing acts shall 
be  adopted  in  accordance  with  the  advisory  procedure  referred  to  in  Article  83, 
paragraph 2. 

The  Commission  may  also  adopt  delegated  acts  in  accordance  with  Article  84  to 
supplement  Copernicus  data  and  information  policy  as  regards  the  security 
limitations as well as the specifications, conditions and procedures for the access to 
and use of Copernicus data and Copernicus information. 

EOGS  shall  provide  enhanced  situational  awareness  in  support  of  preparedness, 
decision-making  and  the  action  of  the  Union  and  Member  States  in  the  fields  of 
security  and  defence.  EOGS  shall  in  particular  comprise  satellites,  ground 
facilities,  and  distribution 
information  processing 
infrastructure,  data  and 
infrastructure. It shall provide secure, reliable, timely, persistent and targeted space-
based  Earth  observation  data,  reinforcing  existing  and  planned  capabilities.  It  shall 
complement and build on existing capabilities provided through the European Union 
Satellite  Centre,  including  those  from  Member  States.  EOGS  may  also  provide 
complementary information to Copernicus Services, in particular for civil protection 
and security. 

EOGS shall in particular be composed of: 

EOGS  Infrastructure,  including,  development  and  operations  of  new  Earth-
observation space missions designed for sensitive governmental applications; access 
to  complementary  third-party  space-based  Earth  observation  data;  access  to  in-situ 
and other ancillary data;    

EOGS  Services,  including  activities  for  the  generation  of  value-added  geo-spatial 
information  restricted  to  government-authorised  users  for  sensitive  situational 
awareness applications, in support of preparedness, decision-making in the fields of 
security and defence;     

EOGS  Data  access  and  distribution,  including  infrastructure  and  services  to  ensure 
the access to, distribution and exploitation and long-term preservation of EOGS data 
and information, in a secure manner. 

The Commission may adopt, by means of implementing acts, technical specifications 
referring to EOGS eligible actions, as listed in paragraph 8. Those implementing acts 
shall be adopted in accordance with the advisory procedure referred to in Article 83, 
paragraph 2. 

The users of EOGS shall be duly authorised by the Commission or Member States, 
and shall comply with the general security requirements referred to in Article 69. The 
following entities may be authorised as users of EOGS: 

a  Union  or  Member  State  public  authority  or  body  entrusted  with  the  exercise  of 
public authority; 

a natural or legal person acting on behalf and under the control of an entity referred 
to in point (a). 

Member  States  may  contribute  to  EOGS  with  satellite  capacities,  ground  segment 
sites or part of the ground segment facilities. 

Union  agencies  may  have  access  to  EOGS  only  insofar  as  necessary  to  fulfil  their 
tasks  and  in  accordance  with  detailed  rules  laid  down  in  an  administrative 

EN 

80 

  EN 

arrangement concluded between the agency concerned and the Union institution that 
supervises it. 

13. 

Research  and  development  activities  shall  support  the  evolution  of  Copernicus  and 
EOGS,  including  their  services,  and  downstream  R&D  for  applications  and  user 
technology for the uptake of Earth Observation services. 

1. 

(a) 

(b) 

(c) 

(d) 

2. 

(a) 

(b) 

(c) 

(d) 

(e) 

Article 61 

Secure Connectivity 

The scope of the Secure Connectivity component shall in particular be: 

ensuring 
governmental services and GOVSATCOM services;  

long-term  availability  of 

the 

reliable,  secure  and  cost-effective 

enabling IRIS² commercial services; 

enabling,  where  possible,  the  development  of  communication  and  additional  non-
communication services, in particular by improving activities and components under 
this  section,  creating  synergies  between  them  and  expanding  their  capabilities  and 
services, as well as the development of non-communication services to be provided 
to Member States, by hosting additional satellite subsystems, including payloads; 

improving  secure  connectivity  over  geographical  areas  of  strategic  interest  such  as 
Africa and the Arctic as well as the Baltic, the Black Sea, Mediterranean regions and 
the Atlantic. 

This component shall cover in particular the following eligible activities: 

the definition, design, development, validation and related deployment activities for 
the  necessary  space  and  ground  infrastructure  required  for  the  provision  of  IRIS² 
governmental services; 

exploitation  activities  providing  IRIS²  governmental  services,  comprising  the 
operation,  maintenance,  continuous  improvement  and  protection  of  the  space  and 
ground infrastructure, including replenishment and obsolescence management; 

the gradual integration of EuroQCI into the Secure Connectivity system; 

esearch and development of activities for the future generations of space and ground 
infrastructure,  the  evolution  of  IRIS²  governmental  services;  and  GOVSATCOM 
services, 
technological 
sovereignty,  and  the  uptake  of  secure  connectivity  services,  including  activities 
relating to the design, development and manufacturing of user terminals; 

technological  development,  notably 

to  ensure  Union 

the  procurement  and  provision  of  governmental  and  commercial  satellite 
communication  capacities,  services,  and  user  equipment  necessary  for  the  pooling 
and  sharing  of  GOVSATCOM  services;  capacities,  services,  and  user  equipment, 
which shall be provided by: 

(1)  GOVSATCOM participants as referred to in paragraph 17; or 

(2) 

legal  persons  duly  accredited  to  provide  satellite  communication 
capacities or services in accordance with the security accreditation 
procedure  referred  to  in  Article  69,  which  shall  be  done  in 
compliance  with  the  general  security  requirements  referred  to  in 
Article 77.  

EN 

81 

  EN 

3. 

(a) 

(b) 

(c) 

(d) 

(e) 

4. 

5. 

6. 

7. 

8. 

9. 

IRIS² and GOVSATCOM infrastructures shall include the following requirements:  

The  IRIS²  infrastructure  shall  be  modular  and  consist  of  a  governmental 
infrastructure and a commercial infrastructure. It shall include all the relevant ground 
and  space  segments  which  are  required  for  the  provision  of  the  governmental 
services, including the relevant control centres.  

The IRIS² commercial infrastructure of the secure connectivity system shall include 
all  space  and  ground  assets  other  than  those  being  part  of  the  governmental 
infrastructure.  The  commercial  infrastructure  shall  not  impair  the  performance  or 
security  of  the  governmental  infrastructure.  The  commercial  infrastructure  and  any 
related risks shall be entirely financed by the private sector. 

The  IRIS²  governmental  infrastructure  shall  host,  where  appropriate,  additional 
satellite  subsystems,  in  particular  payloads,  that  may  be  used  as  part  of  the  space-
based  infrastructure  of  the  other  space  components  of  the  ECF,  as  well  as  satellite 
subsystems used for the provision of non-communication services to Member States. 

The GOVSATCOM infrastructure shall include infrastructure necessary to enable the 
provision of GOVSATCOM services, particularly the GOVSATCOM Hub. 

The  ground  and  space  segments  referred  in  paragraphs  3  and  4  and  their  operation 
shall  comply  with  the  general  security  requirements  referred  to  in  Article  77 
paragraph 3. 

The  provision  of  Secure  Connectivity  services  shall  be  ensured  as  laid  down  in  a 
service portfolio, and in accordance with operational requirements and in accordance 
with  the  security  requirements  referred  to  in  Article  77.  The  provision  of 
GOVSATCOM services shall also follow the sharing and prioritisation rules referred 
to paragraph 9. 

Access to GOVSATCOM services and IRIS² governmental services shall be free of 
charge  for  institutional  and  governmental  users  unless  the  Commission  sets  out  a 
pricing policy in accordance with paragraph 11. 

The  Commission  shall  adopt,  by  means  of  implementing  acts,  the  service  portfolio 
for GOVSATCOM  services and  IRIS² governmental services, including services to 
government-authorised users based on the commercial infrastructure. 

The  Commission  shall  adopt,  by  means  of  implementing  acts,  the  operational 
requirements for GOVSATCOM services and IRIS² governmental services.  

The  sharing  and  prioritisation  of  GOVSATCOM  services  shall  prioritise 
GOVSATCOM  users  according  to  their  relevance  and  criticality.  The  Commission 
shall  adopt,  by  means  of  implementing  acts,  the  detailed  rules  on  the  sharing  and 
prioritisation  of  GOVSATCOM  capacities,  services,  and  user  equipment.  The 
Commission shall also  adopt,  by means of implementing  acts,  detailed rules on the 
provision of IRIS² governmental services. When drawing those acts, the Commission 
shall take into account the expected demand for the different use-cases, the analysis 
of security risks for those use-cases and, where appropriate, cost-efficiency. 

When  the  analysis  of  risks  and  expected  demand  referred  to  in  paragraph  11 
concludes  there  is  a  shortage  of  capacities  or  where  demand  exceeds  the  access 
capacity  for  IRIS²  governmental  services,  which  may  lead  of  a  distortion  of  the 
market, the Commission may adopt, by mean of implementing acts, a pricing policy. 
By  adopting  a  pricing  policy,  the  Commission  shall  ensure  that  the  provision  of 
GOVSATCOM  services  and  the  IRIS²  governmental  services  does  not  distort 

EN 

82 

  EN 

10. 

11. 

12. 

13. 

14. 

(a) 

(b) 

15. 

16. 

17. 

competition,  that  there is  no shortage of those services and that the price identified 
will not result in an overcompensation for the contracts referred to in paragraph 20.  

The  implementing  acts  referred  to  in  paragraphs  9  to  12  shall  be  adopted  in 
accordance with the examination procedure referred to in Article 83 paragraph 3. 

Member  States,  the  Council,  the  Commission  and  the  EEAS  shall  be  Secure 
Connectivity  participants  insofar  as  they  authorise  users,  or  provide  satellite 
communication  capacities,  ground  segment  sites  or  part  of  the  ground  segment 
facilities. 

Union  agencies  may  become  secure  connectivity  participants  only  insofar  as 
necessary to fulfil their tasks and in accordance with detailed rules laid down in an 
administrative arrangement concluded between the agency concerned and the Union 
institution that supervises it. 

Third  countries  and  international  organisations  may  become  secure  connectivity 
participants  subject  to  a  specific  dedicated  international  agreement  concluded  in 
accordance  with  Article  218  TFEU  and  pursuant  to  Article  11,  paragraph  3  of  this 
Regulation. 

The users of governmental services shall be duly authorised by the participants to use 
GOVSATCOM  services  or  the  IRIS²  governmental  services  and  shall  comply  with 
the  general  security  requirements  referred  to  in  Article  77,  paragraph  3.  The 
following  entities  may  be  authorised  as  users  of  GOVSATCOM  services  or  IRIS² 
governmental services: 

a Union or Member State public authority or a body entrusted with  the exercise of 
public authority; 

a natural or legal person acting on behalf and under the control of an entity referred 
to in point (a). 

IRIS²  shall  be  implemented  through  a  concession  contract.  If  the  IRIS²  concession 
contract fails, the Commission shall ensure an optimal implementation by procuring, 
as appropriate, a supply, service or works contract or a mixed contract. 

The  Commission  shall  take  the  necessary  measures  to  ensure  the  continuity  of  the 
IRIS² governmental services if the contractors referred to in this Article are unable to 
fulfil their obligations. 

The contracts referred to in this Article shall in particular ensure that the provision of 
services based on the IRIS² commercial infrastructure preserves the Union’s essential 
interests and the objectives of the sub-component. Those contracts shall also include 
adequate safeguards to avoid any overcompensation of the contractors referred to in 
this Article, distortions of competition, conflicts of interest, undue discrimination or 
any other hidden indirect advantages. Such safeguards may include the obligation of 
accounting separation between the provision of IRIS² governmental services and the 
provision of IRIS² commercial services, including the setting up of a structurally and 
legally  separate  entity  from  the  vertically  integrated  operator  for  the  provision  of 
governmental  services,  and  the  provision  of  open,  fair,  reasonable  and  non-
discriminatory access to the infrastructure necessary for the provision of commercial 
services.  The  contracts  shall  also  ensure  that  the  conditions  on  eligibility  are  met 
throughout their duration. 

18. 

Where the IRIS² governmental and commercial services rely on common subsystems 
or  interfaces  to  ensure  synergies,  the  contracts  referred  to  in  this  Article  shall  also 

EN 

83 

  EN 

determine  which  of  those  interfaces  and  common  subsystems  shall  be  part  of  the 
governmental infrastructure in order to ensure the protection of the security interests 
of the Union and its Member States. 

19. 

The  contractors  referred  to  in  this  Article  shall  entirely  finance  the  commercial 
infrastructure referred to in paragraph 3 in order to fulfil the objective referred to in 
paragraph 1, point (b). 

Article 62 

Space Surveillance and Tracking 

The SST sub-component of SSA shall in particular include: 

the establishment, development and operation of a network of sensors of the Member 
States, be selected by architecture studies, comprising ground-based and space-based 
SST  sensors  of  the  Member  States,  be  selected  by  architecture  study,  including 
sensors developed through the European Space Agency, of Union commercial sector, 
and  of  Union  sensors  aiming  to  survey  and  track  space  objects  and  produce  an 
autonomous European catalogue of space objects; 

the  processing  and  analysis  of  SST  data  in  order  to  produce  SST  information  and 
SST services; 

the provision of the SST services to the SST users; 

seeking,  fostering  and  supporting  synergies  with  initiatives  promoting  development 
and  deployment  of  technologies  for  spacecraft  disposal  at  the  end  of  operational 
lifetime  and  of  technological  systems  for  the  prevention  and  elimination  of  space 
debris,  

the cooperation, including at operational level, with the international initiatives in the 
space traffic coordination; 

the  delivery  of  the  activities  established  by  Regulation  (EU)  [XXX]  [safety, 
resilience and environmental sustainability of space activities in the Union]  

research  and  development  activities  supporting  the  evolution  of  the  SST,  including 
its services 

The  SST  sub-component  shall  also  provide  technical  and  administrative  support  to 
ensure  the  transition  between  the  SST  activities  performed  under  the  ECF  and  the 
SST activities performed under Regulation (EU) 2021/696.  

The SST Partnership created under Regulation (EU) 2021/696 shall continue to be in 
effect under the ECF. The Commission may adopt, by means of implementing acts, 
detailed  rules  for  the  inclusion  at  a  later  stage  of  a  Member  State  in  the  SST 
Partnership.  Those  implementing  acts  shall  be  adopted  in  accordance  with  the 
examination procedure referred to in Article 83, paragraph 3. 

The  tasks  of  the  SST  Partnership  referred  to  in  paragraph  5  shall  be  extended  to 
support the SST implementation. The Commission is empowered to adopt delegated 
acts in accordance with Article 84 to supplement this paragraph with the detailed list 
of tasks to be performed by the SST Partnership. 

SST services shall be free of charge, available at any time without interruption and 
adapted to the needs of the SST users and shall comprise: 

1. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

2. 

3. 

4. 

5. 

EN 

84 

  EN 

(a) 

(b) 

(c) 

(d) 

6. 

7. 

8. 

9. 

(a) 

(b) 

(c) 

10. 

the risk assessment of collision between spacecraft or between spacecraft and space 
debris and the potential generation of collision avoidance alerts during the phases of 
launch, early orbit, orbit raising, in-orbit operations and disposal phases of spacecraft 
missions; 

the detection and characterisation of in-orbit fragmentations, break-ups or collisions; 

the risk assessment of the uncontrolled re-entry of space objects and space debris into 
the  Earth’s  atmosphere  and  the  generation  of  related  information,  including  the 
estimation of the timeframe and likely location of possible impact; 

the  development  of  activities  related  to  space  debris  mitigation  in  order  to  reduce 
their generation, space debris remediation,  the monitoring of launch  after injection, 
specific  services  for  constellations,  the  establishment  of  a  marketplace  for  SST 
services,  preparation  of  the  system  to  Cislunar  operations,  support  to  in-space 
operations and services, and to dark and quiet sky. 

The SST services  may comprise services for governmental SST users based on the 
catalogue referred to paragraph 1, point a.  

The Commission is empowered to adopt delegated acts to supplement the list of non-
core users and specify the services that they may have access to. 

The  Commission  may  adopt,  by  means  of  implementing  acts,  the  operational  and 
access  requirements  as  well  as  the  security  and  technical  specifications  for  SST 
services.  Those  implementing  acts  shall  be  adopted  in  accordance  with  the 
examination procedure referred to in Article 83, paragraph 3. 

SST Users shall comprise: 

SST  core  users,  which  shall  have  access  to  all  SST  services:  Member  States,  the 
EEAS,  the  Commission,  the  Council,  the  Agency  as  well  as  public  and  private 
spacecraft owners and operators established in the Union; 

SST non-core users; 

Governmental SST users for the governmental service: Member State authorities, the 
EEAS, the Council. 

The  Commission  may  adopt,  by  means  of  implementing  acts,  detailed  provisions 
concerning  the  access  to  SST  services  by  the  SST  users  and  relevant  procedures. 
Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 83, paragraph 3. 

11. 

The  SST  sub-component  shall  not  be  open  to  the  participation  of  third  countries, 
except Norway. 

Article 63 

Near-Earth Objects  

1. 

2. 

The  objective  of  the  NEO  sub-component  of  SSA  is  the  risk  monitoring  of  natural 
objects in the solar system which are approaching the Earth. 

Eligible activities under NEO shall in particular cover relevant activities to fulfil the 
objective set out in paragraph 1, notably support activities related to the maintenance 
and data entries of the Union catalogue of physical properties of near-Earth objects. 

EN 

85 

  EN 

3. 

1. 

2. 

3. 

(a) 

(b) 

(c) 

(d) 

4. 

1. 

2. 

3. 

(a) 

(b) 

(c) 

4. 

and  research  and  development  activities  supporting  the  evolution  of  the  NEO, 
including its services, and downstream R&D for applications and user technology for 
the uptake of NEO services. 

Article 64 

Space Weather Events 

The objective of the SWE is to monitor and assess natural changes related to space 
weather events, such as solar winds and solar flares. 

Eligible activities  under SWE shall encompass all the activities required to  provide 
space weather services, including research and development activities supporting the 
evolution of the SWE, as well as its services and downstream R&D for applications 
and user technology for the uptake of SWE services. 

SWE services shall aim to be available at any time without interruption and shall in 
particular comprise: 

the Space domain; 

the PNT domain; 

the EO domain; 

the Telecommunication / SATCOM domain. 

The  Commission  may  adopt,  by  means  of  implementing  acts,  detailed  provisions 
concerning  SWE  services,  including  requirements  and  technical  specifications 
relating  to  those  services.  Those  implementing  acts  shall  be  adopted  in  accordance 
with the examination procedure referred to in Article 83, paragraph 3. 

Article 65 

Access to space 

Access to space is the ability to launch and transport spacecraft to, in and from space.  

The  Union  shall  foster  an  autonomous  and  resilient  access  to  space,  by  supporting 
European  reliable  and  cost-efficient  launch  services  together  with  a  cohesive 
European approach, taking into account the essential security interests of the Union 
and its Member-States. 

In  synergies  with  other  Union  programmes  and  funding  schemes,  the  eligible 
activities shall cover in particular: 

procurement  and  aggregation  of  launch  services  for  the  needs  of  the  Union  and,  at 
their request, aggregation and joint procurement of launch services for the needs of 
Member States, international organisations, and other public entities; 

access  to  space  innovation,  including  the  upgrade  and  development  of  new 
technologies and systems and services. 

development,  adaptation,  construction,  maintenance  and  operation  of  critical  Union 
based  ground  infrastructure,  including  but  not  limited  to  the  facilities  necessary  to 
test, launch and recover access to space technologies and services capabilities.  

The  Commission  shall  establish  a  Steering  Board  among  European  public  entities, 
including  Member-States,  the  Agency  established  in  accordance  with  Regulation 

EN 

86 

  EN 

5. 

1. 

2. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

1. 

(EU)  [XXX]  [future  EUSPA  founding  Regulation]  other  relevant  international 
organisations and public entities to coordinate European activities in access to space.  

In  order  to  protect  the  security  interests  of  the  Union,  the  space  assets  of  the 
governmental infrastructure shall be launched by service providers, that comply with 
the eligibility and participation conditions set out in Article 69 and, only in justified 
exceptional circumstances or on a basis of an international agreement providing for 
such activity, from the territory of a third country. 

Article 66 

Space commercialisation and space economy 

CASSINI  shall  constitute  the  Union’s  space  entrepreneurship  initiative.  CASSINI 
shall undertake actions to support the commercialisation of the Union space industry 
and  services,  in  particular  focusing  on  entrepreneurship,  and  to  leverage  private 
investment, supporting entrepreneurs to grow and scale in the Single Market 

This component shall include the following eligible activities: 

creation  of  Union  Investment  facilities  for  seed,  early  growth,  and  growth-stage 
private investment, and facilitating exits for founders and investors;  

creation  of  an  Union  industrial  upscaling  facility  to  enable  investment  into  new 
manufacturing facilities and reinforce Union-based supply chains; 

support  to  the  development  of  the  Union  of  skills  targeted  to  the  space  sector, 
including  skills  intelligence,  space  curricula  development,  upskilling,  reskilling, 
mobility and exchange programmes; 

strengthening  the  local  space  ecosystems  bringing  together  different  actors  to 
promote  space  innovation,  provide  support,  facilities  and  services  to  citizens  and 
companies to foster entrepreneurship, notably through technology transfer, business 
incubation business acceleration services, matchmaking and investor networking and 
by enabling improved market access and international business networks;  

schemes  to  accelerate  commercial  growth  through  the  use  of  anchor  customer 
contracts  and  schemes  to  onboard  customers  on  both  private  and  public  sector 
markets,  involving  space  components  and  infrastructures  as  well  as  products  using 
space data and services. 

any  additional  action  necessary  to  support  the  Union’s  space  economy  and  the 
establishment of a Single Market for space. 

Article 67 

Technological sovereignty, research and innovation 

The technological  sovereignty and innovation  component shall enable the Union to 
build a competitive, autonomous, and innovative space industrial ecosystem, aiming 
to  enhance  the  Union’s  technological  sovereignty,  non-dependence,  and  self-
sufficiency in the space sector. It shall foster the development and uptake of cutting-
edge space solutions. It shall prioritize the reduction of critical dependencies on non-
Union  technologies  and  focus  on  dual-use  technologies  that  can  benefit  both  civil 
and defence applications.  

2. 

The component shall include the following eligible activities: 

EN 

87 

  EN 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

1. 

2. 

3. 

related 

to  Union’s 

activities 
research, 
development,  and  uptake  of  critical  space  technologies,  including  those  directly 
responding 
the  EU  Observatory  of  Critical  Technologies,  (OTC)  and 
implementation  of  related  OCT  roadmaps  that  reduce  Union  dependencies  and 
enhance competitiveness of the Union space ecosystem;  

technological  sovereignty,  such  as 

to 

activities  aiming  at  improving  the  timely  availability  of  critical  raw  and  advanced 
materials,  components  and  technologies  for  the  sector,  including  through  the 
reduction  of  their  delivery  lead  time,  reservation  of  manufacturing  slots  or 
stockpiling of products, intermediate products or raw materials; 

the research and development of new Union Space capabilities and related enabling 
technologies fostering a new in-space economy, specifically through the maturation, 
demonstration  and  operationalisation  of  In-Space  Operations  and  Services,  and 
quantum sensing technologies; 

boosting  Union  industrial  competitiveness  in  global  commercial  markets,  including 
through demonstrator missions advancing  the degree of digitalisation of end-to-end 
space systems;  

exploring  and  leveraging  synergies  with  complementary  domains  such  as  defence 
and  other  relevant  sectors  for  key  areas  such  as  Artificial  Intelligence  and 
cybersecurity;  

supporting  standardisation  and  certification  activities  relevant  for  the  Union  space 
sector; 

facilitating availability and access to testing and data processing facilities. 

promotion  of  Copernicus  user  uptake  for  Copernicus  core  users  with,  market 
development  and  capacity  building,  including  promotion  of  Copernicus  data  and 
services,  downstream  applications  and  their  development  at  all  levels  to  maximise 
socio-economic benefits, as well as the collection and analysis of Copernicus users’ 
needs. 

Article 68 

Access to services  

Third  countries  and  international  organisations  may  have  access  to  Secure 
Connectivity  services  and  EOGS  subject  to  an  agreement  concluded  in  accordance 
with  Article 218  TFEU  and  pursuant  to  Article  11(3),  laying  down  the  terms  and 
conditions  for access  to  those services, and on the condition  that they  comply with 
Article 78.  

Third  countries  and  international  organisations  not  having  their  headquarters  in  the 
Member  States  may  have  access  to  secure  sensitive  SST  services  subject  to  an 
agreement concluded, provided that they conclude an agreement, in accordance with 
Article 218 TFEU, laying down the terms and conditions for access to those services 
and comply with the security requirements referred to in Article 77. 

The access of third countries and international organisations to the Public Regulated 
Service  (PRS)  provided  by  Galileo  shall  be  governed  by  Article 3(5)  of  Decision 
No 1104/2011/EU of the European Parliament and of the Council.   

EN 

88 

  EN 

4. 

By  derogation  to  paragraph  2,  no  agreement  concluded  in  accordance  with  Article 
218  TFEU  shall  be  required  to  access  SST  services  relating  to  collision  avoidance 
and re-entry.  

Eligibility and participation conditions for the preservation of the security, integrity and 

resilience of operational space systems of the Union  

Article 69 

1. 

2. 

3. 

(a) 

(b) 

(c) 

4. 

5. 

(a) 

(b) 

(c) 

The  Commission  shall  apply  the  eligibility  and  participation  conditions  set  out  in 
paragraph 2 to the procurement, grants or prizes under this Title if it deems that this 
is  necessary  and appropriate to  preserve the security, integrity and resilience of the 
operational Union systems, taking into account the objective to promote the Union's 
strategic autonomy, in particular in terms of technology across key technologies and 
value chains, while preserving an open economy. 

Before  applying  the  eligibility  and  participation  conditions  in  accordance  with 
paragraph  1  the  Commission  shall  inform  the  Committee  referred  to  in  Article  83, 
paragraph 1, point (g) and shall take utmost account of the Member States’ views on 
the scope of application of and the justification for those eligibility and participation 
conditions. 

The eligibility and participation conditions shall be as follows: 

the  eligible  legal  entity  is  established  in  a  Member  State  and  its  executive 
management structures are established in that Member State; 

the  eligible  legal  entity  commits  to  carry  out  all  relevant  activities  in  one  or  more 
Member States; and 

the eligible legal entity is not to be subject to control by a third country or by a third 
country entity. 

The  Commission  may  set  out,  by  means  of  implementing  acts,  the  criteria 
determining  which  ability  to  exercise  a  decisive  influence  over  a  legal  entity, 
directly,  or  indirectly  through  one  or  more  intermediate  legal  entities  may  have  an 
impact on the security, integrity and resilience of the security, integrity and resilience 
of  the  operational  Union  systems,  taking  into  account  the  objective  to  promote  the 
Union's  strategic  autonomy,  in  particular  in  terms  of  technology  across  key 
technologies and value chains. 

The Commission may waive the conditions of  paragraph 3, points (a) and (b) for a 
particular legal entity upon evaluation based on the following cumulative criteria: 

for  specific  technologies,  goods  or  services  needed  for  the  activities  referred  to  in 
paragraph 1 no substitutes are readily available in the Member States; 

the legal entity is established in a country which is a member of the EEA or EFTA 
and which has concluded an international agreement with the Union as referred to in 
Article  11,  its  executive  management  structures  are  established  in  that  country  and 
the activities linked to the procurement, grant or prize are carried out in that country 
or in one or more such countries; and 

sufficient measures are implemented to ensure the protection of EUCI under Article 
78  and  the  integrity,  security  and  resilience  of  the  Programme’s  components,  their 
operation and their services. 

EN 

89 

  EN 

6. 

7. 

(a) 

(b) 

(c) 

8. 

9. 

(a) 

(b) 

(c) 

10. 

11. 

12. 

13. 

By way of derogation from point (b) of the first subparagraph of this paragraph, the 
Commission  may  waive  the  conditions  under  points  (a)  or  (b)  of  the  first 
subparagraph of paragraph 2 for a legal entity established in a third country which is 
not a member of the EEA or EFTA  

The Commission may waive the condition under point (c) of paragraph 3 if the legal 
entity established in a Member State provides the following guarantees: 

control over the legal entity is not exercised in a manner that restrains or restricts its 
ability to: 

(1) 

carry out the procurement, grant or prize; and 

(2)  deliver results, in particular through reporting obligations; 

the  controlling  third  country  or  third  country  entity  commits  to  refrain  from 
exercising any controlling rights over or imposing reporting obligations on the legal 
entity in relation to the procurement, grant or prize; and 

the legal entity complies with Article 69. 

The  competent  authorities  of  the  Member  State  in  which  the  legal  entity  is 
established shall assess whether the legal entity complies with the criteria set out in 
point  (c)  of  paragraph  5  for  waivers  relative  to  condition  (3)(b)  and  guarantees 
referred to in paragraph 7. The Commission shall comply with that assessment. 

The Commission shall provide the following to the Programme committee referred to 
in Article 83, paragraph 1, point g: 

the  scope  of  application  of  eligibility  and  participation  conditions  referred  to  in 
paragraph 1 of this Article; 

details and justifications on the waivers granted in accordance with this Article; and; 

the  evaluation  that  formed  the  basis  for  a  waiver,  subject  to  paragraphs  3  and  4  of 
this Article, without divulging commercially sensitive information. 

The  conditions  set  out  in  paragraph  3,  the  criteria  set  out  in  paragraphs  4,  5  and  6  
and the guarantees set out in paragraph 7 shall be included in the documents relating 
to  the  procurement,  grant  or  prize,  as  applicable,  and,  in  the  case  of  procurement, 
they shall apply to the full life cycle of the resulting contract. 

This  Article  is  without  prejudice  to  Decision  No  1104/2011/EU  and  Commission 
Delegated  Decision  of  15.9.2015  (43),  Regulation  (EU)  2019/452,  Decision 
2013/488/EU  and  Decision  (EU,  Euratom)  2015/444  and  to  the  security  vetting 
carried  out  by  Member  States  with  regard  to  legal  entities  involved  in  activities 
requiring access to EUCI subject to the applicable national laws and regulations. 

If contracts resulting from the application of this Article are classified, eligibility and 
participation conditions applied by the Commission in accordance with paragraph 1 
shall be without prejudice to the competence of national security authorities. 

This  Article  shall  not  interfere  with,  amend  or  contradict  any  existing  Facility 
Security  Clearance  and  Personnel  Security  Clearance  procedure  within  a  Member 
State. 

EN 

90 

  EN 

1. 

2. 

(a) 

(b) 

(c) 

3. 

4. 

5. 

(a) 

(b) 

1. 

Article 70 

Ownership of Union space assets and access to results 

Except as provided under paragraph 2, the Union shall be the owner of all tangible 
and  intangible  assets  created,  developed  or  purchased  under  direct  or  indirect 
management in the implementation of activities supported under this section. To that 
effect,  the  Commission  shall  ensure  that  relevant  contracts,  agreements  and  other 
arrangements  relating  to  the  activities  which  may  result  in  the  creation  or 
development of such assets contain provisions ensuring the Union’s ownership. 

Paragraph 1 shall not apply to the tangible and intangible assets created or developed 
under direct or indirect management in the implementation of the activities supported 
under this section: 

where  Union  support  is  provided  in  the  form  of  grants,  prizes  or  pre-commercial 
procurement, or  

the activities are not fully financed by the Union, except as otherwise specified and 
with the exclusion of IRIS², or  

the activities relate to PRS receivers developed by Member States. 

In  the  conditions  set  in  paragraph  2,  Union  institutions,  bodies,  offices  or  agencies 
shall not acquire ownership but enjoy royalty-free access rights to results for own use 
and the right to grant, or to require the recipients to grant, non-exclusive licences to 
third  parties  to  exploit  the  results  under  fair  and  reasonable  conditions  without  any 
right to sublicense.  

The Union shall be entitled to conclude the relevant agreements in order to acquire 
ownership of assets developed by third parties where such assets are necessary to the 
fulfilment of the objectives laid down in Article 3. 

The Commission shall ensure that the Union has the following rights: 

the  right  of  use  of  the  frequencies  required  for  the  transmission  of  the  signals 
generated by the governmental infrastructure of IRIS², the PNT components and the 
EO  components  in  accordance  with  the  applicable  laws  and  regulations  and  the 
relevant  licensing  agreements,  enabled  by  the  relevant  filings  for  the  frequencies 
provided  by  the  Member  States,  which  remain  under  the  responsibility  of  the 
Member States; 

the  right  to  prioritise  the  provision  of  the  IRIS²  governmental  services  over 
commercial services, in accordance with the terms and conditions to be established in 
the contracts referred to in Article  61 and by taking into consideration the needs of 
government-authorised users. 

Article 71 

Warranty and liability 

Except  if  otherwise  specified  the  services,  data  and  information  provided  by  the 
components and activities under this section shall be without any express or implied 
warranty  as  regards  their  quality,  accuracy,  availability,  reliability,  speed  and 
suitability  for  any  purpose.  The  Union,  including  the  Commission  and  the  Agency 
(EUSPA), shall not be liable.  

EN 

91 

  EN 

2. 

1. 

2. 

1. 

2. 

3. 

4. 

1. 

For  SST,  Member  States  participating  in  the  SST  sub-component  shall  not  be  held 
liable for: damage resulting from the lack of or interruption in the provision of SST 
services,  delay  in  the  provision  of  SST  services;  inaccuracy  of  the  information 
provided through the SST services or action undertaken in response to the provision 
of SST services. 

Article 72 

Complementary procurement rules  

While  protecting  the  Union’s  autonomy,  the  contracting  authority  may  request  that 
the  tenderer  subcontracts  part  of  the  contract  by  competitive  tendering  at  the 
appropriate levels of subcontracting  to  companies other than those which belong to 
the tenderer’s group. For contracts above EUR 10 million, the contracting authority 
shall aim to ensure that at least 30 % of the value of the contract is subcontracted by 
competitive  tendering  at  various  levels  of  subcontracting  to  companies  outside  the 
group  of  the  prime  tenderer,  in  particular  in  order  to  enable  the  cross-border 
participation of SMEs in the space ecosystem. The tenderer shall provide reasons for 
not  fulfilling  a  request  made  to  sub-contract  or  for  deviating  from  the  30%  target. 
The contracting authority may include specific requirements in the award procedure 
documentation  to  ensure  that  prime  contractors  follow  the  principles  of  the 
procurement  set  in  this  regulation  during  the  execution  of  the  contract,  notably  as 
regards  the  involvement  of  SMEs  and  new  entrants,  competition,  constant 
benchmarking with the best market conditions. 

The  procurements  relating  to  governmental  services,  service  continuity  or  the 
fulfilment of the objectives referred to in Article 3(2), point (d).3, notably as regards 
security,  shall  be  deemed  to  satisfy  the  condition  of  urgency  established  in  point 
11.1.c) of Annex I of the Financial Regulation. 

Article 73 

Complementary grant rules 

The Union may cover up to 100 % of the eligible costs, without prejudice to the co-
financing principle.  

By way of derogation from Article 184(6) of the Financial Regulation when applying 
flat rates, the authorising officer responsible may authorise or impose funding of the 
beneficiary’s indirect costs up to a maximum of 25 % of total eligible direct costs for 
the action.  

By  way  of  derogation  from  Article  207  of  the  Financial  Regulation,  the  maximum 
amount of financial  support that can be paid  to  a third party shall not  exceed EUR 
200 000.  

The  SST  partnership  shall  be  considered  as  the  predefined  beneficiary  of  the  SST 
grant.  

Article 74 

Complementary indirect management rules 

A tripartite agreement in accordance with Article 131 of Regulation (EU, Euratom) 
2024/2509 shall be concluded with both the Agency established in accordance with 

EN 

92 

  EN 

Regulation  (EU)  [XXX]  [future  EUSPA  founding  Regulation]  and  the  European 
Space Agency, subject to which [EUSPA] and the European Space Agency may be 
entrusted with budget implementation tasks.  

Whenever  a  Tender  Evaluation  Board  is  established  by  the  Agency  or  ESA  for  a 
procurement performed under the tripartite agreement, experts from the Commission 
and,  where  relevant,  from  the  other  entrusted  entity  can  reserve  the  right  to 
participate as members in the Tender Evaluation Board meetings, have access to all 
deliverables  and  attend  review  meetings.  Such  participation  shall  not  affect  the 
technical independence of the Tender Evaluation Board 

By way of derogation from Article 62(1) of the Financial Regulation and subject to 
the  Commission’s  assessment  of  the  protection  of  the  Union’s  interests,  tasks 
entrusted under indirect management to the Agency, or its successors, may be further 
entrusted  by  the  Agency  to  bodies  referred  to  in  Article  62(1),  point  (c),  of 
Regulation  (EU,  Euratom)  2024/2509  under  the  conditions  of  indirect  management 
applying to the Commission. 

Whenever procurement or grant activities are implemented via indirect management 
by  entrusted  entities,  communications  activities,  dissemination  activities  and  any 
infrastructure,  equipment,  vehicles,  supplies  or  major  result  funded  by  the 
procurement or grant must acknowledge the Union support and display the European 
flag  (emblem)  and  funding  statement  (translated  into  local  languages,  where 
appropriate) in accordance with the Commission’ standard communication rules. 

Article 75 

Roles 

The  Member  States  shall  take  all  the  necessary  measures  to  ensure  the  smooth 
functioning of the actions supported under this section and may contribute with their 
technical competence, know-how and assistance, in particular in the field of safety, 
security, and frequency allocation. This contribution shall include, but not be limited 
to,  making  available  to  the  Union  data,  information,  services  and  infrastructure  in 
their  possession  or  located  on  their  territory,  that  are  necessary  to  the  good 
functioning of the actions. The Member States shall be responsible, at local level, for 
the  accreditation  of  the  security  of  sites  that  are  located  within  their  territory  and 
form  part  of  the  security  accreditation  area  for  the  components,  notably  Member 
States participating in the SST Partnership shall perform security accreditation on the 
basis of the general security requirements referred to in Article 77. 

The  Commission  shall  have  overall  responsibility  for  the  implementation  of  the 
components  referred  to  in  this  Section,  including  in  the  field  of  security,  without 
prejudice  to  Member  States’  prerogatives  in  the  area  of  national  security  and 
supervise  their  implementation.  The  Commission  shall  manage  any  of  the 
components or subcomponents not entrusted to another entity; 

determine  the  priorities  and  long-term  evolution  of  those  components,  in  line  with 
the user requirements, and shall supervise their implementation.  

determine  and  coordinate  the  international  dimension  of  the  components,  to  ensure 
coherence  with  the  Union  policies  for  external  action  and  a  consistent  approach 
thereof. 

2. 

3. 

4. 

1. 

(a) 

(b) 

(c) 

EN 

93 

  EN 

(d) 

(e) 

2. 

3. 

(a) 

(b) 

(c) 

(d) 

4. 

5. 

Where necessary to further define and specify the governance, security and provision 
of services under this chapter, the Commission may, by means of implementing acts, 
complement the catalogue of services provided and shall determine the technical and 
operational  requirements  needed  for  the  implementation  of  and  evolution  of  the 
components  under  this  chapter  and  of  the  services  they  provide  after  having 
consulted  users  and  other  stakeholders.  When  determining  those  technical  and 
operational requirements, the Commission shall avoid reducing the general security 
level and shall meet backwards compatibility requirements. Those implementing acts 
shall be adopted in accordance with Article 83, paragraph 2.  

Where  necessary,  the  Commission  shall,  by  means  of  implementing  acts,  adopt 
measures  required  to  determine  the  location  of  the  ground-based  infrastructure 
following  an  open  and  transparent  process,  ensuring  sound  financial  management 
and the protection of security and public order of the Union and its Member States. 
Those  implementing  acts  shall  be  adopted  in  accordance  with  Article  83, 
paragraph 2. 

The Agency shall have its own tasks and may be entrusted by the Commission with 
other tasks in accordance with Regulation (EU) [XXX] [ EUSPA founding Reg].  

Provided that the interests of the Union are protected, ESA may be entrusted with the 
following tasks:  

as regards PNT: major systems evolution and design and development of parts of the 
ground segment, and of satellites, including testing and validation; 

as  regards  Copernicus:  i)  coordination  and  implementation  of  the  space  component 
and its evolution; ii) design, development and construction of the Copernicus space 
infrastructure, including the operations of that infrastructure and related procurement, 
except  when  those  operations  are  done  by  other  entities;  iii)  where  appropriate, 
provision of access to third-party data; 

as regards EOGS: design and development of new Earth-observation space missions 
and parts of associated ground segment; 

as regards : (i) IRIS²: the supervision of the development, of the validation and of the 
related  deployment  activities  relating  to  the  definition,  design,  development, 
validation  and  deployment  phases  for  the  governmental  services  and  of  the 
development  and  evolution  necessary  for  the  provision  of  governmental  services, 
ensuring  coordination  between  the  tasks  and  budget  entrusted  to  ESA  and  possible 
contribution  by  ESA,  excluding  pooling  and  sharing  related  actions  referred  to  in 
Article 47, paragraph 2, point a; (ii) the provision of its technical expertise, including 
during the implementation of the components; 

On the basis of an assessment by the Commission, ESA may be entrusted with other 
tasks based on the needs of the activities under this section, provided that those tasks 
do not duplicate activities performed by another entrusted entity and that they aim to 
improve the efficiency of the implementation of the space window’s activities. 

Provided  that  the  interests  of  the  Union  are  protected,  the  Commission  may  also 
entrust,  in  full  or  in  part,  tasks  to  implement  the  components  supported  under  this 
section to relevant entities, such as the European Organisation for the Exploitation of 
Meteorological  Satellites, the European Environment Agency, the European Border 
and  Coast  Guard  Agency,  the  European  Maritime  Safety  Agency,  the  European 

EN 

94 

  EN 

 
Union Satellite Centre, the European Centre for Medium-Range Weather Forecasts, 
and [Mercator International Centre for the Ocean]. 

Article 76 

Competent authorities 

Where necessary for security sensitive components, such as  Positioning Navigation 
and  Timing,  Earth  Observation,  and  Secure  Connectivity,  each  participant  to  that 
component appointed to supervise the access to services shall designate a competent 
authority for each component. The competent authority shall ensure that:  

the  use  of  the  relevant  services  is  in  compliance  with  the  general  security 
requirements referred to in Article 77;  

the access rights to the relevant services are determined and managed;  

user  equipment  necessary  for  the  use  of  the  relevant  services  and  associated 
electronic  communication  connections  and  information  are  used  and  managed  in 
accordance with the general security requirements referred to in Article 77;  

a  central  point  of  contact  is  established  to  assist  as  necessary  in  the  reporting  of 
security  risks  and  threats,  in  particular  the  detection  of  potentially  harmful 
electromagnetic interference affecting the services developed under the space policy 
window.  

By derogation to paragraph 1, the actions, tasks and functioning of PRS Competent 
Authorities are referred to in Article 5 of Decision No 1104/2011/EU. 

Article 77 

Principles of governance and security 

The  principles  of  governance  for  the  specific  activities  and  components  under  this 
section shall be based on the following: 

clear  distribution  of  tasks  and  responsibilities  between  the  entities  involved  in  the 
implementation, building on their respective competences and avoiding any overlaps 
or duplications in tasks and responsibilities and thus ensuring clear accountability; 

relevance  of  the  governance  structure  to  the  specific  needs  of  each  component  and 
measure as appropriate; 

strong  control  of  the  activities  and  components,  including  strict  adherence  to  cost, 
schedule and performance by all the entities, within their respective role and tasks; 

transparent and cost-efficient management; 

service continuity and necessary infrastructure continuity, including protection from 
relevant threats; 

systematic and structured consideration of the needs of users of the data, information 
and  services  provided  by  the  [components],  as  well  as  of  related  scientific  and 
technological evolutions; 

constant efforts to control and reduce risks. 

The principles of security or the specific activities and components under this section 
shall be based on the following: 

1. 

(a) 

(b) 

(c) 

(d) 

2. 

1. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

2. 

EN 

95 

  EN 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

3. 

4. 

1. 

2. 

to  take account  of the experience of the Member States in  the field  of  security and 
draw inspiration from their best practices; 

to ensure the protection of the ground infrastructures which form an integral part of 
the space policy window and which are located on their territory the Member States 
shall take measures which are at least equivalent to those necessary for the protection 
of  European  critical  infrastructures  within  the  meaning  of  Council  Directive 
2008/114/EC; 

to use the security rules of the Council and of the Commission, which provide, inter 
alia,  for  a  separation  between  operational  functions  and  those  associated  with 
accreditation; 

to  consider  the  Commission  as  Originator  of  all  classified  information  created  by 
entrusted entities as referred to in Article 68, paragraph 1;  

to  ensure  that  the  Security  Accreditation  Board  established  by  Regulation  (EU) 
[XXX]  [EUSPA  founding  Reg]  performs  its  tasks  without  prejudice  to  the 
responsibilities  of  the  Commission  or  to  those  entrusted  entities,  and  without 
prejudice to the competences of the Member States as regards security accreditation;  

The security accreditation decisions, as well as the residual risks identified, shall be 
communicated by the Commission to the Council for information. The Commission 
may adopt any adequate measures in accordance with this Regulation; 

to establish a structure to coordinate the operations of the governmental services of 
the different components with designated national competent authorities or national 
entities for relevant component  

The  Commission  shall  ensure  that  a  risk  and  threat  analysis  is  performed  for  each 
new component and maintained for the existing components. Based on that analysis, 
it shall determine, by means of implementing acts, for each component, the general 
security requirements. Those implementing acts shall be adopted in accordance with 
the examination procedure referred to in Article 83, paragraph 3. 

Whenever  the  security  of  the  Union  or  its  Member  States  may  be  affected  by  the 
operation of the systems, the procedures set out in Decision (CFSP) 2021/698 shall 
apply where relevant.  

Article 78 

Complementary rules on the protection of classified information  

The  exchange  of  classified  information  related  to  the  components  supported  under 
this  sections  hall  be subject  to  the  existence  of  an  international  agreement  between 
the  Union  and  a  third  country  or  international  organisation  on  the  exchange  of 
classified  information  or,  where  applicable,  an  arrangement  entered  into  by  the 
competent Union institution or body and the relevant authorities of a third country or 
international  organisation  on  the  exchange  of  classified  information,  and  to  the 
conditions laid down therein.  

Natural persons resident in and legal persons established in third countries may deal 
with EUCI regarding the space policy window’s only where they are subject, in those 
third  countries,  to  security  regulations  ensuring  a  degree  of  protection  at  least 
equivalent to that provided by the Commission’s rules on security set out in Decision 
(EU,  Euratom)  2015/444  and  by  the  security  rules  of  the  Council  set  out  in  the 

EN 

96 

  EN 

Annexes  to  Decision  2013/488/EU.  The  equivalence  of  the  security  regulations 
applied in a third country or international organisation shall be defined in a security 
of  information  agreement,  including,  if  relevant,  industrial  security  matters, 
concluded between the Union and that third country or international organisation in 
accordance  with  the  procedure  provided  for  in  Article  218  TFEU  and  taking  into 
account Article 13 of Decision 2013/488/EU.  

Without prejudice to Article 13 of Decision 2013/488/EU and to the rules governing 
the  field  of  industrial  security  as  set  out  in  Decision  (EU,  Euratom)  2015/444,  a 
natural  person  or  legal  person,  third  country  or  international  organisation  may  be 
given access to EUCI where deemed necessary on a case-by-case basis, according to 
the  nature  and  content  of  such  information,  the  recipient’s  need-to-know  and  the 
degree of advantage to the Union. 

SECTION 4 

SUPPORT FOR SECURITY INDUSTRY POLICY 

Article 79 

Specific provisions for support to civil security industry policy  

Actions supported under this section shall contribute to the general objectives set out 
in Article 3(1) and the specific objectives set out in Article 3(2), point (f). 

Support  for  actions  under  this  section  shall  be  financed  from  the  budget  set  out  in 
Article 4(2), point (e), and any additional contributions assigned in accordance with 
Article 6.  

Actions  shall  be  implemented  in  accordance  with  the  general  provisions  set  out  in 
Chapter I and any additional rules set out in this section.  

Article 80 

Specific activities to support civil security industry policy 

Support  for  civil  security  industry  policy  shall  address  in  particular  the  following 
application areas: 

Security  and  resilience  of  critical  civil  infrastructures,  in  particular  against  hybrid 
threats; 

Technologies, capabilities and solutions relevant for the prevention of and response 
to  crime, in  particular terrorism  and violent  extremism,  organised crime and cyber-
enabled crime 

Technologies,  capabilities  and  solutions  for  the  control  of  goods  and  persons  at 
borders,  the  protection  of  borders  and  logistical  hubs,  maritime  security  and 
surveillance and customs security; 

Civil  preparedness  against  security  threats,  whether  natural  or  human-made, 
accidental or intentional. 

Support for civil security industrial policy shall be implemented in particular through 
the following activities:  

3. 

1. 

2. 

3. 

1. 

(a) 

(b) 

(c) 

(d) 

2. 

EN 

97 

  EN 

(a) 

(b) 

(c) 

(d) 

3. 

4. 

1. 

2. 

3. 

1. 

2. 

Research  and 
manufacturing actions;  

innovation,  scale-up,  SME  support,  skills  development,  and 

Testing and validation of technologies and solutions;  

Deployment  and  market  uptake  of  technologies  and  solutions,  in  particular  by 
security practitioners;  

Support  actions  for  the  development,  implementation,  monitoring  and  enforcement 
of relevant Union legislation and policy 

Support  provided  through  the  activities  referred  to  in  paragraphs  1  and  2,  may  be 
provided  in  any  form,  including  through  collaborative  research  and  innovation 
activities  set  out  in  Regulation  (EU)  [XXX][Framework  Programme  for  Research 
and Innovation] and identified in a specific dedicated part of the Work Programme. 

Work programmes adopted in accordance with the rules of this Regulation under this 
section  shall  integrate  in  a  specific  dedicated  part  and  ensure  coherence  with 
Competitiveness and Society activities supported under the Regulation (EU) [XXX] 
[Horizon Europe Framework programme for Research and Innovation.  

Article 81 

Ownership of results 

Where Union support is provided in the form of procurement, results shall be owned 
by the Union.  

Where Union support is provided in the form of a grant, Union institutions, bodies, 
offices  or agencies shall enjoy  upon request  royalty-free access  rights  to  results  for 
the purpose of developing, implementing and monitoring existing Union policies or 
programmes in  the fields  of its competence and the right to  grant,  or to  require the 
recipients to grant, non-exclusive licenses to third parties to exploit the results under 
fair  and  reasonable  conditions  without  any  right  to  sublicense  unless  otherwise 
specified in the grant agreement.  

Any transfer of ownership of results, or the granting of exclusive licences for results, 
generated with support to legal entities established in non-associated third countries 
or  to  non-associated  third-country  entities  shall  be  subject  to  prior  notification  and 
approval  by  the  Commission  or  the  relevant  Member  State  or  associated  country 
authorities,  which  takes  place  within  3  years  after  the  final  payment  of  the  action, 
under conditions ensuring the protection of the Union’s security interests.  

Article 82 

Complementary grant rules 

For  activities  supporting  Coordination  and  Support  Actions  in  the  area  of  civil 
security  industry,  the  Union  may  cover  up  to  100  %  of  the  eligible  costs,  without 
prejudice to the co-financing principle.  

By way of derogation from Article 184(6) of the Financial Regulation when applying 
flat rates, the authorising officer responsible may authorise or impose funding of the 
beneficiary’s indirect costs up to a maximum of 25 % of total eligible direct costs for 
the action.  

EN 

98 

  EN 

Chapter VIII 

Final Provisions 

Article 83 

Committee procedure 

1. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

2. 

3. 

4. 

5. 

6. 

The  Commission  shall  be  assisted  by  a  committee,  which  shall  be  the  committee 
within  the  meaning  of  Regulation  (EU)  No  182/2011,  and  may  convene  in  the 
following configurations: 

ECF  General  Committee,  for  matters  concerning  the  general  objectives  or  matters 
concerning more than one of the specific objectives set out in Article 3(2);  

Clean  Transition  Committee  for  matters  concerning  specific  objectives  set  out  in 
Article 3(2), point (a);  

Health,  Biotech,  Agriculture  and  Bioeconomy  Committee  for  matters  concerning 
specific objectives set out in Article 3(2), point (b); 

Digital Committee for matters concerning specific objectives set out in Article 3(2), 
point (c);  

Defence  Industry  Committee  for  matters  concerning  specific  objectives  set  out  in 
Article 3(2), point (d) 

Resilience Committee for matters concerning specific objectives set out in Article 3 
(2), point (d) ; 

Space Committee for matters concerning specific objectives set  out  in  Article 3(2), 
point (d), In accordance with its rules of procedure, the Space Committee may set up 
sub-committees  and  working  groups,  such  as  the  ‘User  Forum’,  to  advise  on  user 
requirements aspects, evolution of the services and user uptake. 

Security  Industry  Committee  for  matters  concerning  specific  objectives  set  out  in 
Article 3(2), point (d).4. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 
182/2011 shall apply and the opinion shall be requested from the configuration of the 
committee most concerned. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011 shall apply and the opinion shall be requested from the configuration of the 
committee most concerned. 

Where  reference  is  made  to  this  paragraph,  Article  8  of  Regulation  (EU)  No 
182/2011, in conjunction with Article 5 thereof, shall apply. 

Where  the  opinion  of  the  committee  is  to  be  obtained  by  written  procedure,  that 
procedure shall be terminated without result when, within the time-limit for delivery 
of  the  opinion,  the  chair  of  the  committee  so  decides  or  a  simple  majority  of 
committee members so request. 

The  Committees  in  points  b)  through  h)  of  paragraph  1  may  convene  in  different 
configurations or sub-committees aligned with the specific components of the policy 
windows. 

EN 

99 

  EN 

7. 

8. 

1. 

2. 

3. 

4. 

5. 

6. 

In accordance with international agreements concluded by the Union, representatives 
of  third  countries,  international  organisations  or  other  European  Union  institutions, 
bodies  and  agencies  may  be  invited  as  observers  in  the  meetings  of  the  committee 
configurations under the conditions laid down in their rules of procedure, taking into 
account  security  and  public  order  interests  of  the  Union.  Representatives  of  third 
countries  or  international  organisations  shall  not  be  present  in  deliberations  on 
matters  related  to  eligibility,  including  deliberations  related  to  Articles  9  and  10  of 
this Regulation. 

The EDA shall be invited to provide its views and expertise to the defence industry 
committee as an observer. The EEAS shall also be invited to assist in the work of the 
defence industry committee.  

Article 84 

Exercise of the delegation  

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article.  

The power to adopt delegated acts referred to in this Regulation shall be conferred on 
the  Commission  for  the  period  from  the  date  of  enter  into  force  of  this  Regulation 
until 31 December 2035.  

The delegation of power referred to in this Regulation may be revoked at any time by 
the European Parliament or by the Council. A decision to revoke shall put an end to 
the  delegation  of  power  specified  in  that  decision.  It  shall  take  effect  the  day 
following  the  publication  of  the  decision  in  the  Official  Journal  of  the  European 
Union  or  at  a  later  date  specified  therein.  It  shall  not  affect  the  validity  of  any 
delegated acts already in force. 

Before adopting a delegated act, the Commission shall consult experts designated by 
each  Member  State 
the 
in  accordance  with 
Interinstitutional Agreement of 13 April 2016 on Better Law-Making. 

the  principles 

laid  down 

in 

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council. 

A delegated act adopted pursuant to this Regulation shall enter into force only if no 
objection  has  been  expressed  either  by  the  European  Parliament  or  by  the  Council 
within a period of two months of notification of that act to the European Parliament 
and the Council or if, before the expiry of that period, the European Parliament and 
the  Council  have  both  informed  the  Commission  that  they  will  not  object.  That 
period shall be extended by two months at the initiative of the European Parliament 
or of the Council.  

Article 85 

Repeal  

1. 

(a) 

The  following  regulations  or  part  of  them  are  repealed  with  effect  from  1  January 
2028: 

Regulation  (EU)  2021/522  of  the  European  Parliament  and  of  the  Council  of  24 
March 2021 establishing a Programme  for the Union’s action in  the field of health 

EN 

100 

  EN 

(‘EU4Health Programme’) for the period 2021-2027, and repealing Regulation (EU) 
No 282/2014;  

Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 
2021  establishing  the  Digital  Europe  Programme  and  repealing  Decision  (EU) 
2015/2240; 

Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April 
2021  establishing  the  European  Defence  Fund  and  repealing  Regulation  (EU) 
2018/1092; 

Regulation (EU) 2021/783 of the European Parliament and of the Council of 29 April 
2021 establishing a Programme for the Environment and Climate Action (LIFE), and 
repealing  Regulation  (EU)  No  1293/2013;Regulation  (EU)  […]  establishing  the 
European Defence Industry Programme and a framework of measures to ensure the 
timely  availability  and  supply  of  defence  products  (‘EDIP’),  with  the  exception  of 
Articles 20 and 21, as well as Chapters III and IV which shall continue to apply;  

Titles I, II and III, Articles 26, 27, 28, 30, 31, 32, 33, [34], 43, Titles VI, VII, VIII 
and X of Regulation (EU) 2021/696 of the European Parliament and of the Council 
of 28 April 2021 establishing the Union Space Programme and the European Union 
Agency for the Space Programme and repealing Regulations (Union) No 912/2010, 
(EU) No 1285/2013 and (EU) No 377/2014 and Decision No 541/2014/EU; 

Chapters I, II, III, IV, Articles 24, 25, 26, 28, and 29, Titles VII, VIII, IX and X of 
Regulation  (EU)  2023/588  of  the  European  Parliament  and  of  the  Council  of  15 
March  2023  establishing  the  Union  Secure  Connectivity  Programme  for  the  period 
2023-2027.  

Article 86 

Transitional provisions 

This Regulation shall not affect the continuation or modification of actions initiated 
pursuant to the basic acts referred to in Article 85, which shall continue to apply to 
those actions until their closure. 

This  Regulation  shall  not  affect  the  implementing  acts  adopted  under  the  Space 
Programme  Regulation  (EU)  No.  2021/696  and  IRIS²  Regulation  (EU)  2023/588. 
These  acts  shall  remain  in  force,  if  relevant,  until  modified  on  the  basis  of  this 
Regulation,  and  with  the  exception  of  decisions  taken  pursuant  to  Article  36(4)  of 
Regulation (EU) 2023/588. 

The  financial  envelope  referred  to  in  paragraph  1  of  Article  4  may  also  cover  the 
technical  and  administrative  assistance  expenses  necessary  to  ensure  the  transition 
between the ECF and the measures adopted pursuant to the basic acts referred to in 
the first paragraph. 

Article 87 

Entry into force 

This Regulation shall enter into force on the day following that of its publication in 
the Official Journal of the European Union. 

It shall apply from 1 January 2028.  

(b) 

(c) 

(d) 

(e) 

(f) 

1. 

2. 

3. 

1. 

2. 

EN 

101 

  EN 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

102 

  EN 

LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT 

1. 

1.1. 

1.2. 

1.3. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 3 

Title of the proposal/initiative ...................................................................................... 3 

Policy area(s) concerned .............................................................................................. 3 

Objective(s) .................................................................................................................. 3 

1.3.1.  General objective(s) ..................................................................................................... 3 

1.3.2.  Specific objective(s) ..................................................................................................... 3 

1.3.3.  Expected result(s) and impact ...................................................................................... 3 

1.3.4. 

Indicators of performance ............................................................................................ 3 

1.4. 

1.5. 

The proposal/initiative relates to: ................................................................................. 4 

Grounds for the proposal/initiative .............................................................................. 4 

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative ............................................................ 4 

1.5.2.  Added value of EU involvement (it may result from different factors, e.g. 

coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this section 'added value of EU involvement' is the value resulting 
from EU action, that is additional to the value that would have been otherwise 
created by Member States alone. ................................................................................. 4 

1.5.3.  Lessons learned from similar experiences in the past .................................................. 4 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 
other appropriate instruments ....................................................................................... 5 

1.5.5.  Assessment of the different available financing options, including scope for 

redeployment ................................................................................................................ 5 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.2.1. 

2.2.2. 

Duration of the proposal/initiative and of its financial impact .................................... 6 

Method(s) of budget implementation planned ............................................................. 6 

MANAGEMENT MEASURES................................................................................... 8 

Monitoring and reporting rules .................................................................................... 8 

Management and control system(s) ............................................................................. 8 

Justification of the budget implementation method(s), the funding implementation 
mechanism(s), the payment modalities and the control strategy proposed .................. 8 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them............................................................................................................ 8 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio between 
the control costs and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure) ........................................... 8 

2.3. 

3. 

3.1. 

Measures to prevent fraud and irregularities ................................................................ 9 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE ............ 10 

Heading(s) of the multiannual financial framework and expenditure budget line(s) 
affected ....................................................................................................................... 10 

EN 

1 

  EN 

3.2. 

Estimated financial impact of the proposal on appropriations ................................... 12 

3.2.1.  Summary of estimated impact on operational appropriations.................................... 12 

3.2.1.1.  Appropriations from voted budget ............................................................................. 12 

3.2.1.2.  Appropriations from external assigned revenues ....................................................... 17 

3.2.2.  Estimated output funded from operational appropriations......................................... 22 

3.2.3.  Summary of estimated impact on administrative appropriations ............................... 24 

3.2.3.1. Appropriations from voted budget .............................................................................. 24 

3.2.3.2.  Appropriations from external assigned revenues ....................................................... 24 

3.2.3.3.  Total appropriations ................................................................................................... 24 

3.2.4.  Estimated requirements of human resources.............................................................. 25 

3.2.4.1.  Financed from voted budget....................................................................................... 25 

3.2.4.2.  Financed from external assigned revenues ................................................................ 26 

3.2.4.3.  Total requirements of human resources ..................................................................... 26 

3.2.5.  Overview of estimated impact on digital technology-related investments ................ 28 

3.2.6.  Compatibility with the current multiannual financial framework.............................. 28 

3.2.7.  Third-party contributions ........................................................................................... 28 

3.3. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

Estimated impact on revenue ..................................................................................... 29 

DIGITAL DIMENSIONS .......................................................................................... 29 

Requirements of digital relevance .............................................................................. 30 

Data ............................................................................................................................ 30 

Digital solutions ......................................................................................................... 31 

Interoperability assessment ........................................................................................ 31 

Measures to support digital implementation .............................................................. 32 

EN 

2 

  EN 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Proposal for a   

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL   

the  European  Competitiveness  Fund  ('ECF)', 

establishing 
including  specific 
programme on defence research and innovation  referred to  in  Article 182(3) TFEU 
specific programme  

1.2. 

Policy area(s) concerned  

European competitiveness 

Clean Transition and Industrial Decarbonisation  

Health, Biotech and Bioeconomy  

Digital Leadership 

Resilience and Security, Defence Industry and Space 

1.3. 

Objective(s) 

1.3.1.  General objective(s) 

General  Objective  1  -  Establish  an  investment  capacity  to  support  European 
innovation, 
competitiveness 
decarbonisation,  and  resilience,  through  a  more  seamless  investment  journey  from 
fundamental research, applied research to deployment and manufacturing. 

technologies  and  sectors, 

in  strategic 

including 

General Objective 2 - Leverage the funding tools of the EU Budget to unlock private, 
institutional and national investment in support of strategic technologies and sectors, 
including for research and innovation, in the EU.   

1.3.2. 

Specific objective(s) 

Specific Objective 1 - Promote public and private investments throughout the whole 
investment journey, notably R&I, and better leverage the de-risking potential of the 
EU budget to maximise its EU added value 

Specific  Objective  2  -  Facilitate  access  to  funding  from  EU  programmes  through 
user-centric,  faster,  simplified  and  harmonised  procedures  and  improve  coherence 
among EU instruments and with Member States investments  

Specific Objective 3 - Steer and focus investments towards EU strategic sectors and 
technologies,  including  underlying  value  chains,  critical  infrastructures,  capabilities 
and  skills,  and  in  support  of  decarbonisation,  health,  biotech,  agriculture  and 
bioeconomy as well as digital, security and resilience, defence industry and space. 

1.3.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

Economic Impacts 

–  Macro-Economic  Return:  Expected  to  contribute  to  GDP  growth  via 

accelerated investment spending and process simplification. 

EN 

3 

  EN 

– 

– 

– 

Efficiency  and  Productivity:  Expected  to  reduce  administrative  costs  and 
integrate  access  points,  streamlining  processes  for  high-growth  industries  and 
start-ups. 

Simplified  Funding  Environment:  Lower  costs,  reduction  in  search  time, 
proposal preparation time, time-to-inform and time-to-grant proposals facilitate 
easier fund access, potentially boosting success rates. 

SME  Support:  The  consolidation  into  a  single  fund  would  likely  be 
advantageous  for  SMEs  as  they  typically  lack  the  resources  to  navigate 
complex,  fragmented  systems.  Moreover,  the  strategic  focus  on  disruptive 
innovation could offer SMEs new opportunities in high-growth areas. 

–  Market  Competitiveness:  The  fund  aims  to  boost  the  competitiveness  of 
European companies, including SMEs and start-ups, by making funding more 
accessible and strategically aligned. This initiative supports European strategic 
autonomy  by  decreasing  reliance  on  foreign  supply  chains  and  reducing 
dependencies  on  external  actors,  thus  enhancing  EU  companies'  market 
position both domestically and globally. Additionally, it seeks to better connect 
research with market development and align research priorities with industrial 
needs, all while maintaining a bottom-up approach for fundamental research. 

– 

Research and innovation: Predictability would remain for R&I funding, same 
as today, in line with Treaty obligations. At the same time, consolidation into 
one  Fund  covering  the  whole  investment  journey  can  facilitate  the  market 
uptake of research results and better articulate applied research with industrial 
priorities. 

Social Impacts 

– 

– 

– 

Employment  and  Skills:  Larger  investment  volumes  are  expected  to  boost 
employment.  The  fund  will  integrate  skills,  education,  and  training  initiatives 
into a unified framework, aligning with industry needs in strategic sectors like 
clean  tech  and  AI.  This  approach  will  promote  targeted  investments  in 
reskilling and upskilling, enhancing synergies among education, research, and 
business, and enabling rapid adaptation to emerging trends. 

Regional  Development:  Strategic  regions  might  see  substantial  growth, 
attracting investment and entrepreneurship. 

Health Sector Improvements: Streamlined mechanisms would aim to reduce 
administrative burdens and speed crisis response. 

Environmental Impacts 

– 

– 

Decarbonisation  Priority:  Focus  on  decarbonisation  and  clean  tech  aligns 
with  EU's  climate  neutrality  target  for  2050,  potentially  enhancing  climate 
positive impacts. 

Investment Uncertainty: High uncertainty in clean tech investment calls for a 
careful  balance  between  predictability  and  flexibility  to  achieve  positive 
environmental outcomes. 

1.3.4. 

Indicators of performance 

Specify the indicators for monitoring progress and achievements. 

EN 

4 

  EN 

This  initiative will  be monitored through the performance framework for the 2028-
2034  MFF,  which  is  covered  in  a  separate  proposal.  This  proposal  establishes  the 
rules  for  the  performance  framework  for  the  budget,  including  rules  for  the 
evaluation of the programmes. 

1.4. 

The proposal/initiative relates to:  

 a new action  
 a new action following a pilot project / preparatory action44  

 the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

The EU is facing a competitiveness gap with other global players. Not only US and 
China are leading in critical sectors and key innovation clusters, but these economies 
also leverage significantly greater financial support for R&I, deployment,  and scale 
up. For this reason, the response to regain competitiveness needs to be coordinated at 
EU level to be truly effective, underscoring the urgent need to establish a dedicated 
fund  to  address  this  imbalance  and  ensure  the  EU's  long-term  economic  resilience 
and growth.  

1.5.2.  Added  value  of  EU  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the  purposes  of  this  section  'added  value  of  EU  involvement'  is  the  value  resulting 
from  EU  action,  that  is  additional  to  the  value  that  would  have  been  otherwise 
created by Member States alone. 

Reasons for action at EU level (ex-ante)  

Pooling  resources  at  the  EU  level  can  maximise  the  impact  and  added  value  of 
investment  on the ground, and lead to  economies of scale in  investment  initiatives, 
making them more cost effective than if each Member State acted independently. 

Underinvestment  by  the  private  sector  remains  a  persistent  challenge  in  the  EU, 
affecting a broad spectrum of investment types—including infrastructure, innovation, 
green  and  digital  transitions,  and  industrial  capacity.  This  underinvestment  is 
exacerbated by fragmented capital  markets,  which hinder the  efficient  allocation of 
savings to productive investment opportunities across borders. The fragmentation of 
financial markets limits cross-border capital flows, reduces scale, and increases risk 
for investors, particularly affecting SMEs and strategic sectors. 

As  the  Draghi  report  points  out,  the  EU  is  currently  lagging  in  various  areas, 
including  technological  development,  research  and  innovation  performance,  market 
dynamism, and industrial capacity. EU-level action is necessary to support the type 
and  scale  of  projects  that  would  otherwise  not  be  possible  if  Member  States  acted 
alone.  

44 

As referred to in Article 58(2), point (a) or (b) of the Financial Regulation. 

EN 

5 

  EN 

 
EU support creates critical mass for large projects and partnerships to produce more 
impact  and  deliver  on  pan-European  societal  needs,  whilst  leveraging  more  private 
and  public  investment.  Lastly,  collaboration  -  fostering  knowledge  spillovers  and 
risk-sharing  opportunities  -  is  an  important  element  in  advancing  competitiveness. 
An  EU-wide  solution  would  foster  economies  of  scale  and  cooperation  across 
stakeholders,  which  are  vital  to  enhance  knowledge  valorisation  and  improve 
organisational and technical capacities. 

EU funding fosters extensive collaboration across stakeholders and borders, reducing 
fragmentation  of  resources  and  efforts  and  facilitating  knowledge  transfer  between 
stakeholders  and  sectors,  from  fundamental  research  to  businesses.  EU  funding 
breaks  down  national  barriers  and  forms  networks  creating  critical  mass  to  address 
challenges like climate neutrality, biodiversity loss, pollution, digital transformation, 
security, or preparedness that single Member States cannot tackle alone. 

EU funding addresses market failures and suboptimal investment conditions, such as 
green-premium  investments  and  large  infrastructure  projects  where  social  returns 
incentivising 
outweigh  private  returns.  By  mitigating 
stakeholder engagement, EU funding supports economically  beneficial projects that 
might  not  succeed  otherwise.  It  enhances  economic  resilience,  leverages  private 
funds,  attracts  capital,  and  boosts  productivity  across  the  EU,  driving  GDP  growth 
and fostering long-term stability. 

investment  risks  and 

Coordinated  funding  ensures  that  resources  address  shared  challenges  and  helps  in 
fostering  partnerships  with  the  private  sector,  aligning  political  and  industrial 
priorities.  This  collective  approach  supports  breakthrough  innovations  and  strategic 
goals, overcoming coordination limitations among Member States. 

Expected generated EU added value (ex-post)  

The  ECF  will  offer  a  comprehensive  set  of  policy  measures  to  overcome  current 
deficiencies  in  the  EU's  funding  landscape  related  to  competitiveness.  It  would 
establish a unified investment capacity to support strategic sectors and technologies, 
facilitating a seamless investment journey from research to deployment on EU-level 
and strengthen EU’s investment capacity and leverage tool. The ECF would simplify 
and harmonize application rules and requirements, introducing a unified rulebook for 
applicants.  This  would reduce complexity, eliminate overlaps,  and  allow the EU to 
fully  harness  its  potential  to  mobilize  private  capital  and  increase  budgetary 
flexibility.  The  new  fund  would  also  strengthen  connections  between  research, 
innovation  manufacturing  and  deployment,  ensuring  a  dynamic  economic  structure 
within the EU - with the objective to promote Europe's resilience and leadership in 
the era of global innovation. 

1.5.3.  Lessons learned from similar experiences in the past 

The  consolidation  of  multiple  financial  instruments  into  the  single  InvestEU 
framework in 2020 provided valuable lessons that will be leveraged in designing the 
new  fund.  The  experience  showed  that  fragmentation  and  the  multiplicity  of  rules 
and  procedures  under  previous  MFFs  created  inefficiencies  and  overlaps,  both  in 
policy objectives and financial operations. The move to a single programme with a 
strong  identity,  a  single  authorising  officer,  and  a  unified  set  of  coherent 
requirements for eligibility, monitoring, and reporting helped streamline governance 
and  implementation.  These  lessons  underline  the  benefits  of  a  harmonised  and 

EN 

6 

  EN 

 
simplified framework, which will guide the development of the new fund to ensure 
greater efficiency, transparency, and impact across the financing chain.  

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 

other appropriate instruments 

The  ECF  aims  to  simplify  and  improve  EU  funding  by  consolidating  12  existing 
programmes  into  one  fund,  while  ensuring  tight  connection  wiht  the  Framework 
Programme  for  Research  and  Innovation  and  coherence  with  the  Innovation  Fund. 
Thanks  to  this  consolidation,  there  will  be  a  limited  number  of  EU  programmes  to 
synergize  with.  The  Competitiveness  Coordination  tool  will  ensure  synergies  with 
nationally  and  regionally  pre-allocated  envelopes.  Synergies  are  expected  with  the 
Global Europe Fund on aspects concerning the competitiveness of EU industries and 
companies  in  third  countries  (i.e.  accession  countries,  emerging  markets  and 
developing economies.) 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

When  implementing  the  budget,  the  ECF  should  provide  the  full  toolbox  of  Union 
funding  and  ensure  synergies  between  its  supported  policies,  in  particular  by 
allowing for simplified common award procedures to  pursue its objectives of more 
than one policy. Funding  should focus on the achievement of policy objectives. As 
such, the elimination of burdensome financial reporting through the widest possible 
use  of  financing  not  linked  to  cost  should  be  pursued  as  a  major  simplification 
measure. 

EN 

7 

  EN 

1.6. 

Duration of the proposal/initiative and of its financial impact 

  limited duration  

–  in effect from 01/01/2028 to 31/12/2034  

–    financial impact  from  2028 to  2034 for commitment  appropriations and from 

2028 to 2040 for payment appropriations.  

  unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Method(s) of budget implementation planned  

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–   by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated 

–   international organisations and their agencies (to be specified) 

–   the European Investment Bank and the European Investment Fund 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation 

–   public law bodies 

–   bodies governed by private law with a public service mission to the extent that 

they are provided with adequate financial guarantees 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  are  provided  with 
adequate financial guarantees 

–   bodies or persons entrusted with the implementation of specific actions in the 
common  foreign  and  security  policy  pursuant  to  Title  V  of  the  Treaty  on 
European Union, and identified in the relevant basic act 

–  bodies established in a Member State, governed by the private law of a Member 
State or Union law and eligible to be entrusted, in accordance with sector-specific 
rules,  with  the  implementation  of  Union  funds  or  budgetary  guarantees,  to  the 
extent that such bodies are controlled by public law bodies or by bodies governed 
by  private  law  with  a  public  service  mission,  and  are  provided  with  adequate 
financial  guarantees  in  the  form  of  joint  and  several  liability  by  the  controlling 
bodies  or  equivalent  financial  guarantees  and  which  may  be,  for  each  action, 
limited to the maximum amount of the Union support. 

Comments  

The ECF should be implemented in direct and indirect management. The designated mode of 
implementation should reflect the identified needs for directionality, flexibility and efficiency, 
required to meet the objectives of the ECF. 

EN 

8 

  EN 

In all cases, ECF funding should be provided in the form best fitted to achieve its objectives, 
while limiting administrative burden for recipients to the absolute minimum. 

EN 

9 

  EN 

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

The  impact  of  the  ECF  overall  will  be  assessed  through  its  evaluation.  An 
implementation report will be published by the Commission no later than four years 
after  the  start  of  the  programme’s  implementation,  in  order  to  assess  the  progress 
made towards the achievement of their objectives. A retrospective evaluation will be 
carried  out  by  the  Commission  at  the  latest  three  years  after  the  end  of  the 
programming  period  of  the  programme  with  a  view  to  assessing  the  effectiveness, 
efficiency, relevance, coherence and Union added value of the programme. 
The ECF entrusted entities shall report to the Commission on a regular basis in line 
with this regulation, the Performance Framework and the Financial Regulation. 

The Commission will monitor the performance of the ECF implementation, both in 
direct and indirect management. For direct management, the Commission will apply 
the rules and procedures set out in Chapter 3 of the Financial Regulation. For indirect 
management,  entrusted  entities  shall  apply  their  rules  and  procedures,  which  have 
been assessed in accordance with Article 157 of the Financial Regulation to meet the 
requirements laid down therein.  

2.2.  Management and control system(s)  

2.2.1. 

Justification  of  the  budget  implementation  method(s),  the  funding  implementation 
mechanism(s), the payment modalities and the control strategy proposed 

To  support  competitiveness  both  direct  and  indirect  management  actions  are 
necessary.  The  Fund’s  comprehensive  architecture  will  allow  it  to  accompany 
European  projects  along  the  entire  investment  journey,  from  research  and 
development,  to  demonstration,  and  market  uptake  of  technologies,  services  and 
solutions. It will be able to flexibly mobilise the entire financial toolbox provided by 
the Financial Regulation, including grants, financial instruments and procurement.  

The Fund is  also providing simplified rules accelerating time to grant  and reducing 
administrative burden.  

The  ECF  will  be  implemented  in  direct  management  through  grants  to  European 
projects  and  directly  or  indirectly  through  the  ECF  InvestEU  Instrument.  The  ECF 
Project  Advisory  and  cross-cutting  SME  support  activities  will  be  implemented 
through indirect or direct management depending on the nature of the assistance.  

The ECF InvestEU Instrument will be mostly implemented in indirect management 
through  entrusted  entities,  which  as  a  rule  also  contribute  to  the  support  to  be 
provided  to  final  recipients.  Direct  managment  modes  will  also  be  considered, 
depending on the needs to achieve policy objectives. 

The  Commission  shall  conclude  the  guarantee  agreements  and/or  contribution 
agreeemnets with the entrusted entities. If a guarantee agreement was already signed 
with  an  implementing  partner  under  InvestEU  Regulation,  the  Commission  may 
decide to amend such agreement to include the additional EU contribution from ECF.  

The  entrusted  entities  will  consist  of  the  EIB  Group,  international  financial 
institutions,  national  promotional  banks  and  institutions  and  other  financial 
intermediaries  which  are  Union  bodies,  regulated  and/or  under  banking  sector 

EN 

10 

  EN 

 
supervision.  Support  funded  by  the  Union  will  be  carried  out  by  the  entrusted 
entities, in accordance with their rules and procedures.  

The entrusted entities shall provide annual audited financial statements, management 
declarations and summaries of audits and controls to the Commission, in accordance 
with Article 158 the Financial Regulation.  

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

The main risks of the ECF are: 

Reputational risk for the Commission, in case of fraud, criminal or illegal activities; 

Risk  of  inefficient  use  of  EU  funds,  in  case  of  European  projects  with  no  or  very 
limited EU added value; 

Financial  risk,  in  case  of  amounts  unduly  paid  by  the  Commission  to  grant 
beneficiaries, entrusted entities or amounts due to the Commission, to be recovered 
to the EU budget.. 

The internal control framework to address these risks is built on the implementation 
of the Commission's Internal Control Principles and more specfically on: 

the ex ante pillar assessments of entrusted entities; moreover, since entrusted entities 
as a rule bear part of the risk, the interest of the Union and of the entrusted entity are 
accordingly aligned which mitigates the risk to the budget; 

the  financing  and  investment  operations  in  the  context  of  the  ECF  InvestEU 
Instrument are carried out according to the entrusted entities’ own rules of procedure 
and  sound  banking  practice.  The  selected  entrusted  entities  and  the  Commission 
enter into a guarantee or contribution agreement laying down the detailed provisions 
and procedures relating to the implementation. 

the procedures for the selection of projects supported with the EU funds, directly by 
the Commission or indirectly by entrusted entities; 

a  specific  governance  structure  will  be  put  in  place  to  grant  the  use  of  the  EU 
guarantee (i.e. Investment Committee). 

the  reporting  and  monitoring  carried  out  by  entrusted  entities,  including  audited 
financial statements, management declarations and summaries of audits and controls; 

ex post audits by external auditors, the Internal Audit Service or the European Court 
of Auditors and controls carried out by the Commission, including through reporting 
and monitoring; and 

the  ECF  evaluations  including  the  mid-term  implementation  report  and  the  ex  post 
evaluation. 

2.2.3.  Estimation  and  justification  of  the  cost-effectiveness  of  the  controls  (ratio  between 
the control costs and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure)  

A  cost-effective  internal  control  system  will  be  ensured  by  the  responsible 
authorising  officer  with  the  aim  to  maintain  the  expected  levels  of  risk  of  error  (at 
payment and at closure) below the materiality threshold of 2%. 

Ex-post audits and controls put in place by the Commission as well as, for indirect 
management,  reporting,  summary  of  audits  and  controls  and  management 

EN 

11 

  EN 

declarations  submitted  by  entrusted  entities,  will  provide  a  fair  and  reliable 
representation  of  the  risk  of  error  and  at  effectively  and  efficiently  examining 
indications of fraud.  

Furthermore, for grants, the ex-ante checks of proposals before the signature of the 
grant  agreements  and  clarification  of  eligibility  rules  should  also  contribute  to 
mitigating risks and to the cost-effectiveness of controls.  

For  financing  and  investment  operations  and  advisory  assignments,  the  ex-ante 
checks  conducted  by  the  Commission  and  the  entrusted  entities  together  with  the 
clarification of eligibility rules should also  contribute to  mitigating risks and to  the 
cost-effectiveness of controls.  

Costs in relation to the controls carried out will arise for the EU budget in relation to 
the  Commission’s  internal  controls.  In  addition,  costs  may  also  arise  through 
management fees due to the entrusted entities in relation to their internal controls.  

2.3.  Measures to prevent fraud and irregularities  

For  both  direct  and  indirect  management,  the  Commission  shall  take  appropriate 
measures ensuring that the financial interests of the European Union are protected by 
the application of preventive measures against fraud, corruption and any other illegal 
activities,  by  effective  checks  and,  if  irregularities  are  detected,  by  the  recovery  of 
the  amounts  wrongly  paid  and,  where  appropriate,  by  effective,  proportional  and 
deterrent penalties.  
The  Commission  or  its  representatives  and  the  Court  of  Auditors  shall  have  the 
power  of  audit,  on  the  basis  of  documents  and  on-the-spot,  over  all  grant 
beneficiaries,  entrusted  entities,  financial  intermediaries  and  final  recipients,  who 
have received Union support.  
OLAF  shall  be  authorised  to  carry  out  on-the-spot  checks  and  inspections  on 
economic operators concerned directly or indirectly by such financial support. 
In this context, the Commission will implement several measures such as: 
- decisions, agreements and contracts regarding the implementation of the ECF will 
expressly  entitle  the  Commission,  including  OLAF,  and  the  Court  of  Auditors  to 
conduct audits, on-the-spot checks and inspections; 
- applicants, tenderers as well as financial intermediaries and final recipients will be 
checked  against  the  published  exclusion  criteria  and  the  Early  Detection  and 
Exclusion System (EDES); and 
-  the  rules  governing  the  eligibility  of  costs  and  of  financial  support  will  be 
monitored. 

EN 

12 

  EN 

3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Heading of multiannual financial framework 

Number  

Budget line 

Type 
of 
expen
diture 

Diff./
Non-
diff. 

from 
EFT
A 
coun
tries 

2 

2 

2 

2 

2 

2 

2 

04.01.01 
expenditure 
Competitiveness Fund 

- 
Support 
for  European 

Non
-
diff. 

04.02.01  -  Clean  transition 
and industrial decarbonisation 

04.02.02 – Health, Biotech 
Agriculture and Bioeconomy 

04.02.03 - Digital Leadership 

04.02.04 – Resilience and 
Security, Defence Industry 
and Space 

04.02.05 –Project Advisory 
and Cross-cutting Actions 

04.02.06 – Contribution to 
ECF InvestEU Instrument 

Diff.
. 

Diff.
. 

Diff.
. 

Diff.
. 

Diff.
. 

Diff.
. 

YE
S 

YE
S 

YE
S 

YE
S 

YE
S 

YE
S 

YE
S 

Contribution  

from 
candi
date 
count
ries 
and 
poten
tial 
candi
dates 

YES 

YES 

YES 

YES 

YES 

YES 

YES 

from 
other 
third 
coun
tries 

other 
assigned 
revenue  

YE
S 

YE
S 

YE
S 

YE
S 

YE
S 

YE
S 

YE
S 

YES/ 

YES 

YES 

YES 

YES 

YES 

YES 

EN 

13 

  EN 

 
 
3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations  

 

The proposal/initiative does not require the use of operational appropriations  

 The proposal/initiative requires the use of operational appropriations, as explained below 

3.2.1.1.  Appropriations from voted budget 

Heading of multiannual financial framework   

Number   2  

DG 

Operational appropriations   

Year   Year   Year   Year   Year   Year  

2028   2029   2030   2031  

2032   2033  

Year  

2034  

TOTAL MFF 2028-2034  

- 
04.02.01 
Commitments  (1a)  
Clean  transition 
and 
Industrial 
decarbonisation 

Payments  

(2a)  

Commitments  (1b)  

2,954   3,516  3,586 

3,919 

3,997 

4,077 

4,159 

26,210 

pm   

pm   

pm    pm   

pm    pm   

pm   

pm  

2,318   2,702   2,764  3,049 

3,117  3,186 

3,256 

20,393 

Payments  

(2b)  

pm   

pm   

pm    pm   

pm    pm   

pm   

pm  

04.02.02 
– 
Health,  Biotech 
Agriculture  and 
Bioeconomy 

04.02.03 - Digital 
Leadership  

Commitments  (1b)  

5,833   6,857  7,004  7,701 

Payments  

(2b)  

pm   

pm   

pm    pm   

7,865 

pm   

Commitments  (1b)  
– 
04.02.04 
and 
Resilience 
Security, Defence 
and 
Industry 

Payments  

(2b)  

14,162  16,713  17,063 18,723 

19,114 

pm   

pm   

pm    pm   

pm   

8,032 

pm   

19,513 

pm   

8,202  51,493 

pm    pm0  

19,920 125,204 

pm    pm 

EN 

14 

EN 

 
 
 
 
 
 
 
 
Space 

04.02.05  –Project 
Advisory 
and 
Cross-cutting 
Actions 

Commitments  (1b)  

143  

143  

142   143  

Payments  

(2b)  

pm   

pm   

pm    pm   

143  

pm   

04.02.06 
Contribution 
ECF 
Instrument 

– 
Commitments  (1b)  
to 
InvestEU 

Payments  

(2b)  

1,000   1,500  1,500  1,500 

1,500 

pm   

pm   

pm    pm   

pm   

Appropriations of an administrative nature financed from the envelope of specific programmes   

143  

pm   

1,500 

pm   

143   1,000  

pm    pm0  

1,500  10,000  

pm    pm 

- 

04.01.01 
Support 
expenditure 
European 
Competitiveness 
Fundc 

for 

(3)  

pm   

pm   

pm    pm   

pm   

pm   

pm    pm  

TOTAL 
appropriations  

Commitments  =1a+1b+3  26,410 31,431 32,059 35,035 

35,736 

36,451 

37,180 234,300 

for DG 

Payments  

=2a+2b+3  pm  

pm  

pm  

pm  

pm  

pm  

pm  

pm  

Optional: if more than one DG is involved in the proposal, please fill in the below tables; if not, please delete them. 

DG: <…….> 

Operational appropriations  

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

Year 

2033 

Year 

2034 

TOTAL 
MFF 
2028-2034 

EN 

15 

EN 

 
 
   
 
 
Budget line 

Budget line 

Commitmen
ts 

Payments 

Commitmen
ts 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmesions of an administrative nature financed from the envelope of 
specific programmes45 
Budget line 

-3 

TOTAL appropriations 

for DG <…….> 

Commitmen
ts 
Payments 

=1a+1b+3 

=2a+2b+3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 
0 

0 

TOTAL 
appropriations 

operational 

Commitments 

Payments 

TOTAL 
an 
appropriations 
administrative  nature  financed  from  the 
envelope for specific programmes  

of 

-4 

-5 

-6 

TOTAL 
appropriations 
under HEADING 
<….> 

Commitments 

10 

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

Year 

2033 

Year 

2034 

TOTAL 
MFF 2028-
2034 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

45 

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

16 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
of the multiannual 
financial framework 

Payments 

11 

0 

0 

0 

0 

0 

0 

0 

0 

==================================================================================================== 

Heading of multiannual financial framework  

4 

‘Administrative 
expenditure’46 

DG: <…….> 

 Human resources  
 Other administrative expenditure  

TOTAL DG 
<…….> 

Appropriations  

Year 

Year 

2028 

2029 

0 

0 

0 

0 

0 

0 

Year 

2030 

Year  Year  Year  Year  TOTAL 
MFF 
2028-
2034 

2031  2032  2033  2034 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

TOTAL appropriations under HEADING 4 of the 
multiannual financial framework  

(Total 
commitments = 
Total payments) 

0 

0 

0 

0 

0 

0 

0 

0 

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

Year 

2033 

Year 

2034 

TOTAL 
MFF 2028-
2034 

EUR million (to three decimal places) 

46 

EN 

17 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL 
appropriations under 
HEADINGS 1 to 4 
of the multiannual 
financial framework  

Commitments 

Payments 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

================================================================================================= 

Optional: if the proposal is partly or fully financed from external assigned revenues, fill in the table in Section 3.2.1.2.  If not, please delete the 
whole section. 

3.2.1.2.  Appropriations from external assigned revenues 

Heading of multiannual financial framework  

Number 

EUR million (to three decimal places) 

DG: <…….> 

Operational appropriations  

Budget line 

Budget line 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

Y
e
a
r 

2
0
2
8 

Year 

Year 

Yea
r 

Yea
r 

Yea
r 

Yea
r 

2029 

2030 

203
1 

203
2 

203
3 

203
4 

TO
TA
L 
MF
F 
2028
-
2034 

0 

0 

0 

0 

EN 

18 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Appropriations of an administrative nature financed from the envelope of specific programmesions of an administrative nature financed from the envelope of 
specific programmes47 
Budget line 

-3 

TOTAL appropriations 
for DG <…….> 

Commitments 

=1a+1b+3 

Payments 

=2a+2b+3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 
0 

0 

================================================================================================ 

Mandatory table: 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

TOTAL operational appropriations 

TOTAL 
an 
appropriations 
administrative  nature  financed  from  the 
envelope for specific programmes  

of 

Commitments 
Payments 

-6 

TOTAL appropriations under 
HEADING <….> 

Commitments 

of the multiannual financial framework 

Payments 

-4 

-5 

10 

11 

0 
0 

0 

0 

0 

0 
0 

0 

0 

0 

0 
0 

0 

0 

0 

0 
0 

0 

0 

0 

TOTAL 
MFF 2028-
2034 

0  0  0 
0  0  0 

0  0  0 

0  0  0 

0  0  0 

0 
0 

0 

0 

0 

==================================================================================================== 

Mandatory table 

TOTAL 
appropriations 

operational 

Commitments 
Payments 

-4 

-5 

0 
0 

0 
0 

0 
0 

0 
0 

0 
0 

0 
0 

0 
0 

0 
0 

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

Year 

2033 

Year 

2034 

TOTAL 
MFF 2028-
2034 

47 

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

19 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL 
an 
appropriations 
administrative  nature  financed  from  the 
envelope for specific programmes  

of 

TOTAL 
appropriations 
under HEADING 
<….> 
of the multiannual 
financial framework 

Commitments 

Payments 

(all 

TOTAL 

Commitments 

• 
operational 
appropriations 
operational 
headings) 
•  TOTAL  appropriations  of  an 
administrative  nature  financed  from 
the  envelope  for  specific  programmes 
(all operational headings) 

Payments 

TOTAL 
appropriations 
under Headings 1 
to 3 
of the multiannual 
financial framework 
(Reference amount) 

Commitments 

Payments 

-6 

10 

11 

-4 

-5 

-6 

10 

11 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

Year 

2033 

Year 

2034 

TOTAL 
MFF 
2028-2034 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

EN 

20 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial framework  

4 

‘Administrative expenditure’48 

European Competitiveness Fund 

 Human resources  
 Other administrative expenditure  

EUR million (to three decimal places) 

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

Year 

2033 

Year 

2034 

164,911 

164,911 

164,911 

164,911 

164,911 

164,911 

164,911 

TOTAL 
MFF 
2028-2034 
1154,377 

11,00  

11,00  

11,00  

11,00  

11,00  

11,00  

11,00  

77,00  

TOTAL  

Appropriations 

175,911 

175,911 

175,911 

175,911 

175,911 

175,911 

175,911 

1231,377 

TOTAL appropriations under HEADING 4 of 
the multiannual financial framework  

(Total 
commitments = 
Total payments) 

175,911 

175,911 

175,911 

175,911 

175,911 

175,911 

175,911 

1231,377 

TOTAL 
appropriations under 
HEADINGS 1 to 4 
of the multiannual 
financial framework  

Commitments 

Payments 

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

Year 

2033 

Year 

2034 

TOTAL 
MFF 2028-
2034 

EUR million (to three decimal places) 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

48 

The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage. 

EN 

21 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated output funded from operational appropriations (not to be completed for decentralised agencies) 

Year  
2028 

Year  
2029 

Year  
2030 

Year  
2031 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

Enter as many years as necessary to show the 
duration of the impact (see Section1.6) 

TOTAL 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost 

o
N

Cost 

Total 
No 

Total 
cost 

Indicate 
objectives and 
outputs  

 

Type
49 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 150… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

49 
50 

Outputs are products and services to be supplied (e.g. number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.3.2. ‘Specific objective(s)’  

EN 

22 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3. 

Summary of estimated impact on administrative appropriations  

The proposal/initiative does not require the use of appropriations of an administrative 

 
nature  

   The proposal/initiative requires the use of appropriations of an administrative nature, 
as explained below 

3.2.3.1. Appropriations from voted budget 

VOTED APPROPRIATIONS 

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

Year 

2033 

Year 

2034 

TOTAL 
2028 - 
2034 

HEADING 4 

Human resources  

164,911 

164,911 

164,911 

164,911 

164,911 

164,911 

164,911 

1154,377 

Other administrative expenditure  

11,000 

11,000 

11,000 

11,000 

11,000 

11,000 

11,000 

77,000 

Subtotal HEADING 4 

175,911 

175,911 

175,911 

175,911 

175,911 

175,911 

175,911 

1231,377 

Outside HEADING 4 

Human resources  

Other expenditure of an administrative 
nature 

Subtotal outside HEADING 4 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

TOTAL 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

3.2.3.2.  Appropriations from external assigned revenues 

EXTERNAL ASSIGNED 
REVENUES 

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

HEADING 4 

Human resources  

0.000 

0.000 

0.000 

0.000 

0.000 

Other administrative expenditure  

0.000 

0.000 

0.000 

0.000 

0.000 

Subtotal HEADING 4 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2033 

0.000 

0.000 

0.000 

Year 

2034 

0.000 

0.000 

0.000 

Outside HEADING 4 

Human resources  

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Other expenditure of an administrative 
nature 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Subtotal outside HEADING 4 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 
2028 - 
2034 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

3.2.3.3.  Total appropriations 

TOTAL VOTED 
APPROPRIATIONS + 
EXTERNAL ASSIGNED 
REVENUES 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

TOTAL 
2028 - 
2034 

HEADING 4 

Human resources  

164,911 

164,911 

164,911 

164,911 

164,911 

164,911 

164,911 

1154,377 

Other administrative expenditure  

11,000 

11,000 

11,000 

11,000 

11,000 

11,000 

11,000 

77,000 

Subtotal HEADING 4 

175,911 

175,911 

175,911 

175,911 

175,911 

175,911 

175,911 

1231,377 

Human resources  

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Outside HEADING 4 

EN 

23 

  EN 

 
 
 
 
 
 
Other expenditure of an administrative 
nature 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Subtotal outside HEADING 4 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

3.2.4.  Estimated requirements of human resources  

 

 

The proposal/initiative does not require the use of human resources  

The proposal/initiative requires the use of human resources, as explained below 

3.2.4.1.  Financed from voted budget 

Estimate to be expressed in full-time equivalent units (FTEs)51 

VOTED APPROPRIATIONS 

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

Year 

2033 

Year 

2034 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and 

Commission’s Representation 
Offices) 

20 01 02 03 (EU Delegations) 

04 01 01 11 (Indirect research) 

Direct research 

Other budget lines (specify) 

20 02 01 (AC, END from the 

‘global envelope’) 

20 02 03 (AC, AL, END and JPD 

in the EU Delegations) 

Admin. Support 
line 

- at 

Headquarters 

[XX.01.YY.YY] 

- in EU 
Delegations  
04 01 01 12 (AC, END - Indirect 

research) 

AC, END - Direct research 

Other budget lines (specify) - 

Heading 7 

Other budget lines (specify) - 

Outside Heading 7 

824 

824 

824 

824 

824 

824 

824 

0 

45 

0 

0 

99 

0 

0 

45 

0 

0 

0 

45 

0 

0 

• External staff (inFTEs) 

99 

0 

99 

0 

0 

45 

0 

0 

99 

0 

0 

45 

0 

0 

99 

0 

0 

45 

0 

0 

99 

0 

0 

45 

0 

0 

99 

0 

168 

168 

168 

168 

168 

168 

168 

0 

25 

0 

0 

0 

0 

25 

0 

0 

0 

0 

25 

0 

0 

0 

0 

25 

0 

0 

0 

0 

25 

0 

0 

0 

0 

25 

0 

0 

0 

0 

25 

0 

0 

0 

TOTAL 

1161 

1161 

1161 

1161 

1161 

1161 

1161 

3.2.4.2.  Financed from external assigned revenues 

EXTERNAL ASSIGNED REVENUES 

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

Year 

Year 

2033 

2034 

 Establishment plan posts (officials and temporary staff) 

51 

Please specify below the table how many FTEs within the number indicated are already assigned to the 
management of the action and/or can be redeployed within your DG and what are your net needs. 

EN 

24 

  EN 

 
 
 
 
20 01 02 01 (Headquarters and 

Commission’s Representation 
Offices) 

20 01 02 03 (EU Delegations) 

04 01 01 11 (Indirect research) 

Direct research 

Other budget lines (specify) 

20 02 01 (AC, END from the 

‘global envelope’) 

20 02 03 (AC, AL, END and 

JPD in the EU Delegations) 

Admin. Support 
line 

- at 

Headquarters 

[XX.01.YY.YY] 

- in EU 
Delegations  

04 01 01 12 (AC, END - 

Indirect research) 

AC, END - Direct research 

Other budget lines (specify) - 

Heading 7 

Other budget lines (specify) - 

Outside Heading 7 

TOTAL 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

• External staff (in full time equivalent units) 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

3.2.4.3.  Total requirements of human resources 

TOTAL VOTED 
APPROPRIATIONS + 
EXTERNAL ASSIGNED 
REVENUES 

20 01 02 01 (Headquarters and 

Commission’s Representation 
Offices) 

20 01 02 03 (EU Delegations) 

04 01 01 11 (Indirect research) 

Direct research 

Other budget lines (specify) 

20 02 01 (AC, END from the 

‘global envelope’) 

20 02 03 (AC, AL, END and JPD 

in the EU Delegations) 

Admin. Support 
line 

-At 

Headquarters 

[XX.01.YY.YY] 

-In 

Delegations 

04 01 01 12 (AC, END - Indirect 

research) 

AC, END - Direct research 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

 Establishment plan posts (officials and temporary staff) 

824 

824 

824 

824 

824 

824 

824 

0 

45 

0 

0 

99 

0 

0 

45 

0 

0 

0 

45 

0 

0 

• External staff (in FTEs) 

99 

0 

99 

0 

0 

45 

0 

0 

99 

0 

0 

45 

0 

0 

99 

0 

0 

45 

0 

0 

99 

0 

0 

45 

0 

0 

99 

0 

168 

168 

168 

168 

168 

168 

168 

0 

25 

0 

0 

25 

0 

0 

25 

0 

0 

25 

0 

0 

25 

0 

0 

25 

0 

0 

25 

0 

EN 

25 

  EN 

 
Other budget lines (specify) - 

Heading 7 

Other budget lines (specify) - 

Outside Heading 7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

TOTAL 

1161 

1161 

1161 

1161 

1161 

1161 

1161 

The staff required to implement the proposal (in FTEs):  

Additional staff 

To  be  covered  by 
staff 
current 
the 
available 
Commission 
services 

in 

Establishment 
plan posts 

739 

staff 
External 
(CA, SNEs, INT) 

247 

financed 
To  be 
under Heading 7 or 
Research 

130 

To  be 
from BA line 

financed 

To  be  financed 
from fees 

N/A 

10 

35 

Description of tasks to be carried out by: 

Officials and temporary staff 

Governance and internal and external coordination for the implementation 
of the ECF 

Implementation of budget under all the ECF policy windows 

Implementation of the ECF InvestEU Instrument  

Implementation of Project Advisory and Cross-cutting Actions 

External staff 

Governance and internal and external coordination for the implementation 
of the ECF 

Implementation of budget under all the ECF policy windows 

Implementation of the ECF InvestEU Instrument  

Implementation of Project Advisory and Cross-cutting Actions 

3.2.5.  Overview of estimated impact on digital technology-related investments 

Compulsory:  the  best  estimate  of  the  digital  technology-related  investments  entailed  by  the 
proposal/initiative should be included in the table below.  

Exceptionally,  when  required  for  the  implementation  of  the  proposal/initiative,  the 
appropriations under Heading 4 should be presented in the designated line.  

The  appropriations  under  Headings  1-4  should  be  reflected  as  “Policy  IT  expenditure  on 
operational programmes”. This expenditure refers to the operational budget to be used to re-
use/  buy/  develop  IT  platforms/  tools  directly  linked  to  the  implementation  of  the  initiative 
and  their  associated  investments  (e.g.  licences,  studies,  data  storage  etc).  The  information 
provided  in  this  table  should  be  consistent  with  details  presented  under  Section  4  “Digital 
dimensions”. 

EN 

26 

  EN 

 
 
 
 
 
 
Year 

Year 

Year 

Year 

Year 

Year 

Year 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

9520200 

9520200 

9520200 

9520200 

9520200 

9520200 

9520200 

9520200 

9520200 

9520200 

9520200 

9520200 

TOTAL 
MFF 
2028 - 
2034 

66641400 

66641400 

1447250 

1447250 

1447250 

1447250 

1447250 

1447250 

10130750 

TOTAL Digital 
and IT 
appropriations 

HEADING 4 

IT expenditure 
(corporate)  

Subtotal 
HEADING 4 

Outside HEADING 4 

Policy IT 
expenditure on 
operational 
programmes 

9520200 

9520200 

1447250 

Subtotal outside 
HEADING 4 

1447250 

1447250 

1447250 

1447250 

1447250 

1447250 

1447250 

10130750 

TOTAL 

10967450 

10967450 

10967450 

10967450 

10967450 

10967450 

10967450 

76772150 

3.2.6.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

can  be  fully  financed  through  redeployment  within  the  relevant  heading  of  the 

 
multiannual financial framework (MFF) 

requires use of the unallocated margin under the relevant heading of the MFF and/or 

 
use of the special instruments as defined in the MFF Regulation 

 

requires a revision of the MFF 

3.2.7.  Third-party contributions  

The proposal/initiative: 

 

 

does not provide for co-financing by third parties 

provides for the co-financing by third parties estimated below: 

Appropriations in EUR million (to three decimal places) 

Year  

Year  

2028 

Year  

2029 

Year  

2030 

Year  

2031 

Year  

2032 

Year  

2033 

Total 

2034 

Specify the co-
financing body  

TOTAL 
appropriations 
co-financed  

EN 

27 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.3. 

Estimated impact on revenue  

 

 

 

 

The proposal/initiative has no financial impact on revenue. 

The proposal/initiative has the following financial impact: 

on own resources  

on other revenue 

  please indicate, if the revenue is assigned to expenditure lines 

Appropriations 
available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

EUR million (to three decimal places) 

Impact of the proposal/initiative52 

Year 
2028 

Year 
2029 

Year 
2030 

Year 
2031 

Year 
2032 

Year 
2033 

Year 
2034 

For assigned revenue, specify the budget expenditure line(s) affected. 

[…] 

Other remarks (e.g. method/formula used for calculating the impact on revenue or any other 
information). 

[…] 

4. 

DIGITAL DIMENSIONS 

4.1. 

Requirements of digital relevance 

•  The proposal is assessed as having digital relevance since it will produce new 
data  series.  However,  it  will  build  on  the  digital  framework  of  the  InvestEU 
Programme  Regulation,  in  particular  regarding  the  InvestEU  Management 
Information  System,  which  will  be  adapted 
the  ECF 
implementation,  notably  on  the  exchange  of  data  with  entrusted  entities 
(implementing and advisory partners), with the Investment Committee members 
and with other Commission services.  

to  cater 

for 

4.2. 

Data 

•  The  exchange  of  data  between  the  Commission  and  entrusted  entities  will  be 
based  on  the  requirements  set  out  in  the  relevant  agreements.  It  will  include 
operational,  financial and risk data, which will be provided on  a  regular  basis 
(e.g.  periodical  reports)  as  well  as  on  ad  hoc  basis  (e.g.  for  the  submission  of 
operations by entrusted entities). 

•  The exchange of data with Investment  Committee members  will be limited to 

operations submitted by entrusted entities to the Investment Committee. 

52 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 20% for collection costs. 

EN 

28 

  EN 

 
 
 
 
 
 
 
 
 
 
4.3. 

Digital solutions 

•  The  existing  InvestEU  Management  Information  System  will  be  adapted  and 
the  Project  Advisory 

Instrument  and 

the  ECF 

InvestEU 

used 
for 
implementation. 

4.4. 

Interoperability assessment 

•  The  InvestEU Management  Information System will be used for the ECF and 
will  keep  its  interoperability  features,  in  particular  with  the  following 
Commission  IT  tools:  Secunda+,  Ares,  Decide  and  the  Corporate  Notification 
System.  

4.5.  Measures to support digital implementation 

•  The  IT  project  for  the  adaptation  of  the  InvestEU  Management  Information 
System for the ECF will be developed and implemented in the Commission and 
should  involve  the  key  users  of  the  system  (Commission  users,  implementing 
and advisory partner users as well as the Investment Committee members).  

EN 

29 

  EN