The latest draft report on ECF from the European Parliament’s rapporteurs proposes new instruments and suggests a clearer connection between the ECF and FP10.
On 20 April 2026, European Parliament rapporteurs MEP Christian Ehler (Germany, EPP) and MEP Dan Nica (Romania, S&D) published their draft report on the European Competitiveness Fund (ECF). The report sets out key orientations for future EU industrial, research and innovation policy, including its interaction with FP10. Once adopted, the report will be the negotiating position of the European Parliament for ECF.
A central point of the draft is a clearer connection between the ECF and Horizon Europe, aimed at creating pathways to translate research and innovation (R&I) into competitiveness. The Horizon Europe Pathway Actions are introduced as a concrete new instrument to link the ECF to FP10. These Pathway Actions address the persistent market failures that limit the translation of R&I results into European competitiveness. They are intended to bring support “to companies and research organisations in consortia, or exceptionally to single beneficiaries, in order to derisk or accelerate the deployment” of R&I into market assets. By clarifying the connection between the two programmes, the ECF would be able to integrate results from all pillars of Horizon Europe.
The report also proposes a broader range of EU policy priorities to be supported by the ECF, including energy and digital infrastructures, clean technologies, sustainable prosperity and critical raw materials. In particular, it also foresees the possibility of full or partial association of third countries also to parts of specific policy windows. As for governance, associated third countries would be granted observer status in deliberations on eligibility and award criteria for the parts of the ECF to which they are associated.
The importance of European resilience and security is further emphasised in the draft report by introducing three new defence research instruments. First, it presents the Vanguard Programme for Early Research in European Defence (VPERED), described as the European alternative to DARPA. It is an agile programme implemented by programme managers to support high-risk, high-reward technologies and knowledge with defence potential. Second, the Programme for Scaling High-Impact Innovation for European Leadership in Defence (SHIELD) is proposed to support European defence start-ups with financial instruments such as equity implemented through the EIC Fund. Third, the Programme for Defence-Oriented Breakthrough Research for Europe (DOBRE) is designed to reinforce collaborative applied research actions.
Another key point of the report is that it provides a clear definition of competitiveness, missing from the Commission’s proposal. The draft defines competitiveness as “the ability of European companies to compete successfully in global markets, which requires a level playing field for European industry compared to global competitors in terms of the cost of doing business […] and which requires a skilled workforce, which should lead to quality jobs and sustainable growth across the whole Union”. In this context, the introduction of a “Competitiveness Seal” as a quality label to facilitate access to alternative funding sources and support strategic alignment would help achieve these objectives. Finally, in terms of budget, the report proposes increasing the ECF budget to EUR 40 billion.
In parallel, the European Court of Auditors (ECA) issued opinions on FP10 and the ECF. For FP10, the ECA highlights that while alignment with EU‑wide policy priorities is announced, it is not sufficiently ensured, notably due to a lack of measurable data. It calls for more clarity on the application of the principle of excellence across all pillars and on support mechanisms for widening countries. Regarding the ECF, the ECA supports budget flexibility but stresses that it must be safeguarded by clear rules, transparency as well as financial management.
Negotiations on the ECF and FP10 will therefore remain an essential element in shaping the future of European competitiveness and R&I policy. The next steps include the presentation of the draft report by the rapporteurs in the ITRE Committee in May; further amendments and opinions can be submitted by other committees by 11 May 2026. Finally, in September 2026, the ITRE Committee will vote on and adopt the programme, followed by the vote and adoption in EP plenary in October 2026.