The Multiannual Financial Framework is out! Strategic Investments in Manufacturing, Innovation, and Horizon Europe

On 16 July 2025, the Commission put forward its proposal for the most ambitious Multiannual Financial Framework (MFF) to date, covering the years 2028–2034. Setting a budget of almost EUR 2 trillion. The proposal outlines the EU’s financial strategy for the next programming period, with a strong emphasis on competitiveness, industrial resilience, and technological leadership.

The framework is designed to support Europe’s strategic objectives in the face of ongoing global shifts, focusing on innovation, clean technologies, supply chain security, and long-term economic stability.

Horizon Europe

The Commission proposes a continued commitment to the Horizon Europe framework programme, with an allocation of EUR 175 billion. Horizon Europe will remain a central tool for supporting research and innovation across key sectors, including advanced manufacturing, clean technologies, and digital transformation. The programme will aim to further streamline funding processes and reduce administrative burden.

European Competitiveness Fund

A significant new instrument in the proposed budget is the European Competitiveness Fund, intended to accelerate strategic industrial investment. This fund will focus on four priority areas:

• Clean energy and decarbonisation,

• Digital and industrial technologies,

• Health, biotechnology, agriculture and bioeconomy,

• Defence and space.

The fund will be designed to work alongside Horizon Europe, covering the full project lifecycle from early-stage development to scale-up and deployment. It will also provide simplified and more coordinated access to EU support instruments.

National and Regional Partnership Plans

The MFF introduces a restructured approach to cohesion policy through National and Regional Partnership Plans, which will align EU investment more closely with local needs and development strategies. Manufacturing regions and industrial clusters will be able to engage directly in shaping and implementing investment priorities at national and regional levels.

Financing and Governance

The Commission also proposes new own resources to finance EU priorities and repay borrowing from previous instruments such as NextGenerationEU. These include revenues from the EU Emissions Trading System, a carbon border adjustment mechanism, a levy on non-collected e-waste, and a corporate contribution for large companies operating in the Single Market.

Simplification of funding instruments, improved transparency, and enhanced flexibility mechanisms are also proposed to allow the EU to respond more effectively to future crises and policy shifts.

The MFF 2028–2034 recognises the strategic importance of Europe’s industrial base and the role of innovation in ensuring long-term competitiveness. It presents new opportunities for stakeholders in manufacturing and advanced production to engage in EU programmes that support industrial research, deployment, and regional investment.

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