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POLICY ANSWERS aims to update its Policy Brief “The Western Balkans on the Road to Framework Programme 10” and invites all readers to share your ideas via email or volunteer for an interview via policy-answers@westernbalkans-infohub.eu.
Check out the previous edition of the policy brief: https://westernbalkans-infohub.eu/documents/policy-answers-policy-brief-the-western-balkans-on-the-road-to-framework-programme-10/ and consider sending us your thoughts and input e.g. on the following questions:
- How should the EU budget be structured to ensure competitiveness and resilience and active participation also of the Western Balkans?
- What are the efficiency and accountability reforms, including simplification and improved strategic targeting, that can ensure a more impactful multi-annual financial framework (MFF) / FP10?
- What approaches can ensure that EU budget allocations are consistently aligned with EU values, rule of law and horizontal principles including academic freedom?
- How should be Horizon Europe (FP10) linked or distinguished from the Competitiveness Fund?
- What strategies should be implemented to widen participation and support R&I ecosystems including the Western Balkans?
- How best can future framework programmes improve evaluation processes and criteria?
- Which priorities should be set and addressed?
- How can digitalisation, SME support and structural modernisation be integrated into research and innovation funding maintaining a distinct profile compared to the European Competitiveness Fund?
Background
What is the “Multiannual Financial Framework (MFF)”?
The Multiannual Financial Framework (MFF) is the European Union’s long-term budget plan, typically covering a seven-year period, which sets the maximum annual amounts (ceilings) the EU can spend in different categories of policy areas and guides the direction of EU spending. The MFF provides a financial roadmap for flagship programmes like Horizon Europe, Erasmus+, and for priorities such as climate policy, regional cohesion, enlargement, migration, defence, etc. The European Commission drafts a proposal for a new MFF, which then undergoes negotiation with member state governments and the European Parliament. The most recent proposed MFF (2028–2034) is expected to reach nearly €2 trillion, reflecting ambitions for larger investments in competitiveness, innovation, security, energy transition, and flexibility for rapid response.
What is planned in support for Research and Innovation (Horizon Europe) and European Competitiveness in the next MFF?
In the next MFF (2028–2034), the European Commission has proposed a major expansion of the Framework Programme on Research and Innovation, known as Horizon Europe (officially FP10 in the upcoming cycle). The budget is set to double compared to the previous cycle, reaching a proposed €175 billion. The final budget and programme details are subject to negotiation between the European Commission, the Council (Member States) and the European Parliament. The new programme will remain a standalone instrument, not subsumed within the broader European Competitiveness Fund. According to the proposal of the EC, the programme shall be organised into four pillars:
- Excellent Science (including a major boost for the European Research Council and Marie Skłodowska-Curie Actions)
- Competitiveness and Society (focusing on collaborative research on societal challenges and issues such as green transition or digital transformation)
- Innovation (expanding support for the European Innovation Council, industry innovation and disruptive projects)
- European Research Area (strengthening research infrastructure and widening participation).
The European Competitiveness Fund (ECF) is a new flagship financial instrument proposed for the next MFF (planned budget around €409–450 billion). It is designed to enhance the EU’s strategic autonomy, support industrial capacities and boost investment in key sectors and technologies, particularly those vital for the green and digital transitions, industrial decarbonisation, health, biotechnology, defence and space. It is complementary to Horizon Europe as it will invest in projects at later stages of development and market deployment, supporting high technology readiness level (TRL) innovation that is closer to market, while Horizon Europe continues to focus on research and early innovation. It will work through National and Regional Partnership Plans, ensuring investments serve both EU-wide strategic objectives and local needs.
Governance and division of work between the ECF, Horizon Europe and other instruments (such as the Connecting Europe Facility, etc.) remain under negotiation, but the overall aim is system integration and efficiency.