On 16 July, the European Commission presented its 2028–2034 Multiannual Financial Framework (MFF) proposal, the EU’s provisional budget for the next seven years, which notably includes the creation of a new €409 billion European Competitiveness Fund. Designed to bolster public and private investment in strategic technologies, the fund will focus on four key areas: the clean transition and decarbonisation; the digital transition; health, biotech, agriculture and the bioeconomy; and defence and space.

Of this €409 billion, €175 billion is attributed to the EU’s research and innovation (R&I) framework programme, Horizon Europe, which will remain self-standing and independent, as demanded by the research community. This proposed budget is significantly higher than the €95.5 billion allocated for 2021–2027, though it still falls short of the €200 billion advocated by many R&I stakeholders. Under the new proposal, Horizon Europe will be structured around four pillars, compared with three in the previous period: Pillar 1 – Excellent Science, Pillar 2 – Competitiveness and Society, Pillar 3 – Innovation, and Pillar 4 – European Research Area.

Pillar 1, comprising the European Research Council (ERC) and Marie Skłodowska-Curie Actions (MSCA), will receive €44 billion, a 76% increase compared with 2021–2027. Pillar 2, “Competitiveness and Society”, will focus on collaborative R&I activities, with €68.2 billion for the Competitiveness chapters and €7.6 billion for Society chapters, totalling €75.87 billion—an increase of 42% compared with 2021–2027. While this represents the smallest percentage increase, Pillar 2 will remain the largest in absolute terms.

Within Pillar 2, the “Competitiveness” funding will be distributed across four priorities aligned with the European Competitiveness Fund: Clean Transition and Industrial Decarbonisation; Health, Biotech, Agriculture and Bioeconomy; Digital Leadership; and Resilience and Security, Defence Industry and Space. The Clean Transition chapter will receive the largest allocation, €25.33 billion, representing slightly more than a third of the pillar’s budget.

The “Society” chapters will comprise EU Missions, initiatives addressing global societal challenges, and the New European Bauhaus Facility. The European Commission has yet to specify funding for each of these activities. Similarly, while new “moonshot projects” in areas such as quantum computing, clean aviation, and fusion energy were announced, their budgets and placement within the pillars remain unspecified.

Pillar 3 will largely consist of an expanded European Innovation Council (EIC), supporting start-ups in defence and dual-use sectors, while Pillar 4 will focus on widening participation and research infrastructure. Both pillars will see substantial increases—185% and 378% respectively—with budgets reaching €38.78 billion and €16.26 billion.

All figures remain provisional, as extensive negotiations between the co-legislators are expected, with the aim of reaching an agreement by the end of 2027. During the 2021–2027 budget negotiations, the European Parliament and EU Member States ultimately reduced the Framework Programme’s budget by €25 billion compared with the Commission’s proposal, followed by a further €2 billion cut during the mid-term review. Additionally, no details have yet been provided on how Horizon Europe and the European Competitiveness Fund will interact in defining priorities.