Parliament urges strong competitiveness focus in next multiannual EU budget

Members of the European Parliament have underlined the need for the next Multiannual Financial Framework (MFF) to prioritise policies that strengthen the European Union’s competitiveness. 

“Seven years is a long period of time. Of course, we need to be open to unexpected developments, but we need to give certainty to those who invest, to those who keep the economy going,” said Siegfried Mureşan of the European People’s Party (EPP) during a plenary debate on July 9 with Piotr Serafin, the commissioner responsible for the budget. “This is why the European Parliament starts this process with clear priorities: security, defence and competitiveness.”

Serafin emphasised the importance of a simplified and more flexible MFF, one capable of improving competitiveness, responding swiftly to emerging priorities and crises, and maintaining predictability for researchers and businesses that require long-term stability to plan investments.

Christian Ehler, also of the EPP and a key figure in the Parliament’ scrutiny of the EU research Framework Programmes, cautioned against a return to “outdated” centralised top-down approaches to industrial and innovation policy.

“What we need is flexibility, but we also need the courage of the Commission that innovation needs to be designed by stakeholders,” he said.

Serafin said that the MFF must respond to the global competitiveness race and help close the competitiveness gap with other leading economies. 

“For that purpose, we will propose the European Competitiveness Fund: a clear EU framework for investments throughout the entire innovation cycle, from applied research through manufacturing and deployment,” he said. 

He also confirming that on July 16 the Commission will present, alongside the MFF proposal, a comprehensive package of legislation, including plans for partnerships, the Competitiveness Fund, Global Europe instruments, and an “ambitious” own-resources package.

In recent months, the Parliament has called for bold investment in research and innovation beyond 2027, including an independent research Framework Programme with a budget of at least €200 billion to succeed Horizon Europe. 

A draft proposal leaked on July 7 confirmed that the next Framework Programme will remain a standalone initiative but with a revised structure and close alignment with the European Competitiveness Fund.

The debate also highlighted the role of defence in strengthening EU’s competitiveness. “We must also strengthen our hand on security and defence. Including ramping up our defence readiness,” said Marie Bjerre, Denmark's Minister for European Affairs, representing the EU presidency. “The world [as it was] before the Russian invasion of Ukraine no longer exists, and our next long-term budget must reflect the new reality.”