Skip to content
EU Parl Watch

opinion parliamentary committee, 5 May 2026

On the proposal for a regulation of the European Parliament and of the Council on establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities, repealing Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/697, (EU) 2021/783, and amending Regulations (EU) 2021/696, (EU) 2023/588, (EU) [EDIP]

Document ECON-AD-784470 · (COM(2025)0555 – C100165/2025 – 2025/0555(COD))

Committee on Economic and Monetary Affairs · Rapporteur: Danuše Nerudová

On Parliament’s site PDF Word

AI:In short

The Committee on Economic and Monetary Affairs proposes amendments to the proposed regulation establishing the European Competitiveness Fund (ECF), including its defence research and innovation programme. It adds an SME chapter and SME-specific objectives, and requires at least 20% of each policy window's allocation to be reserved for SMEs. It renames the digital window 'Digital Leadership and Skills', adds a new objective on balanced distribution of opportunities across the Union, and requires the Commission to support first-time and less experienced applicants. It sets a minimum financial envelope for 2028-2034 and a minimum distribution across objectives, with a new allocation for SME support of at least 25% of each policy window's envelope, 20% of which goes to start-ups. It raises the maximum budgetary guarantee under the EU Compartment of the ECF InvestEU Instrument to EUR 120 000 000 000, provisioned at 50%, and the minimum Union support delivered through that instrument to EUR 69 000 000 000. It creates a Competitiveness Coordination Tool, a Strategic Stakeholders Board, an Investment Committee and an Advisory Board, and requires the Commission to report annually to Parliament on the ECF's implementation. It adds rules on transparency of the Competitiveness Seal, on prioritising repayable instruments and budgetary guarantees, and on access to funding through a single online portal and cascade funding for SMEs.

Position. The Committee on Economic and Monetary Affairs proposes amendments to the Commission proposal, adding an SME chapter and SME-specific objectives, raising the budgetary guarantee and minimum Union support, creating new governance bodies, and strengthening rules on transparency, repayable instruments and access to funding for SMEs.

Key points

  1. Adds an SME chapter under each policy window, including start-ups, contributing to new specific objectives on SME and start-up competitiveness and scaling up.
  2. Requires at least 20% of each policy window's total financial allocation to be reserved exclusively for SMEs, with targeted calls if the share falls below 20% over two years.
  3. Sets the minimum financial envelope for the ECF for 1 January 2028 to 31 December 2034 at an amount from the MFF interim report, and a minimum distribution across objectives.
  4. Allocates at least 25% of each policy window's financial envelope to SME support via the ECF InvestEU Instrument, with 20% of that amount for start-ups.
  5. Raises the maximum budgetary guarantee under the EU Compartment of the ECF InvestEU Instrument to EUR 120 000 000 000, provisioned at 50%, and the minimum Union support through that instrument to EUR 69 000 000 000.
  6. Requires 75% of the budgetary guarantee under the EU Compartment to be granted to the EIB Group, while allowing other pillar-assessed entities and private-law bodies to implement instruments.
  7. Establishes a Competitiveness Coordination Tool with an Executive Director, twelve Vice Directors, Member State observers and seven Members of the European Parliament as observers.
  8. Creates a Strategic Stakeholders Board, an independent Investment Committee with five configurations, an Advisory Board, and a Scoreboard for assessing guarantee requests.
  9. Requires the Commission to inform Parliament regularly and to provide an annual report on ECF implementation, including disbursements and supported projects.
  10. Requires the Commission to support first-time and less experienced applicants, monitor geographical distribution of funding, and set minimum indicative thresholds for start-ups and first-time applicants.
  11. Requires the Competitiveness Seal to be awarded on objective, transparent and predefined criteria, with publication of awarded actions and criteria, and to help reduce regional innovation gaps.
  12. Prioritises repayable instruments and budgetary guarantees over non-repayable grants to maximise private capital leverage, and requires a single online portal and cascade funding for SMEs.

Who is affected

  • SMEs, start-ups and scale-ups: get reserved funding, simplified procedures, technical assistance and a single online portal.
  • First-time and less experienced applicants: receive administrative support and minimum indicative funding thresholds.
  • The EIB Group: must receive 75% of the budgetary guarantee under the EU Compartment.
  • Member States and regional authorities: may make additional contributions and must ensure implementing partners are reachable by companies.
  • The Commission: must report annually to Parliament, monitor geographical distribution and adopt delegated acts on Investment Guidelines.

Figures and deadlines

  • EUR 120 000 000 000: maximum budgetary guarantee under the EU Compartment of the ECF InvestEU Instrument.
  • 50%: provisioning rate for the budgetary guarantee.
  • EUR 69 000 000 000: minimum Union support delivered through the ECF InvestEU Instrument.
  • At least 25% of each policy window's financial envelope for SME support, 20% of which for start-ups.
  • At least 20% of each policy window's total financial allocation reserved exclusively for SMEs.
  • 30% of the budget allocated to the SME policy window for start-ups and first-time applicants.
  • 75% of the budgetary guarantee under the EU Compartment to be granted to the EIB Group.
  • Up to 15%: how far the Commission may depart from the amounts in Article 4(2) for each objective.

Written by AI from the full text · every figure comes from the text · ¶ opens the paragraph · 25 Sept 2026 · Report a problem

Full text

Jump to an amendment (174)
Text 698 paragraphs

AMENDMENTS

The Committee on Economic and Monetary Affairs submits the following to the Committee on Industry, Research and Energy, as the committee responsible:

Amendment 1

Proposal for a regulation

Recital 2

Text proposed by the CommissionAmendment
(2) The Union is facing a defining period for its future, from a political, economic, social, environmental, climate and security perspective, including increased risks of conventional military threats. The Draghi report on the future of European Competitiveness3 presented a new vision to reignite sustainable growth in Europe. The Letta report4 outlined that Europe must leverage its Single Market to achieve a leadership position in the global competition. The Commission communication on the Competitiveness Compass5 provided a roadmap for boosting competitiveness, building on the recommendations of these reports. The Commission communication on the Clean Industrial Deal6 outlined the need to accelerate decarbonisation, reindustrialisation and innovation, bringing together climate action and competitiveness under one overarching growth. Sectorial Industrial Action Plans, such as Automotive, Steel and Metals and Chemicals aim to ensure the long-term competitiveness, sustainability, and resilience of the European industry. The State of the Digital decade 20257 highlights the urgent need to foster cooperation and increase public and private investments for strengthening Union’s digital leadership, sovereignty and inclusiveness. The Joint White Paper on European Defence Readiness8 underlines the need to massively and rapidly reinvest in defence in support of Europe’s freedom of action. Moreover, the priorities of the Economic Security Strategy further underline the crucial need to secure the Union’s technological edge and de-risk economic relations including by enhancing the resilience of supply chains and thereby reducing dependencies on others. The European Ocean Pact outlines the need to enhance competitiveness and accelerate the strategic transition across the blue economy sectors, focussing especially on decarbonisation and scaling up innovation. As outlined in the Commission Communication on the Road to the next MFF,9 the next Union long-term budget needs to be more focused, simpler, more flexible, and predictable and better deliver on the Union priorities, including bolstering the Union competitiveness.(2) The Union is facing a defining period for its future, from a political, economic, social, environmental, climate and security perspective, including increased risks of conventional military threats. The Draghi report on the future of European Competitiveness3 presented a new vision to reignite sustainable growth in Europe, particularly through closing the innovation gap, supporting a joint decarbonisation plan, reducing Union dependencies, and ramping up private investment in the EU. The Letta report4 outlined that Europe must leverage its Single Market to achieve a leadership position in the global competition. The Commission communication on the Competitiveness Compass5 provided a roadmap for boosting decarbonasation and competitiveness, building on the recommendations of these reports. The Commission communication on the Clean Industrial Deal6 outlined the need to accelerate decarbonisation, reindustrialisation and innovation, bringing together climate action and competitiveness under one overarching growth. Sectorial Industrial Action Plans, such as Automotive, Steel and Metals and Chemicals aim to ensure the long-term competitiveness, sustainability, and resilience of the European industry. The State of the Digital decade 20257 highlights the urgent need to foster cooperation and increase public and private investments for strengthening Union’s digital leadership, sovereignty and inclusiveness. The Joint White Paper on European Defence Readiness8 underlines the need to massively and rapidly reinvest in defence in support of Europe’s freedom of action. Moreover, the priorities of the Economic Security Strategy further underline the crucial need to secure the Union’s technological edge and de-risk economic relations including by enhancing the resilience of supply chains and thereby reducing dependencies on others. The European Ocean Pact outlines the need to enhance competitiveness and accelerate the strategic transition across the blue economy sectors, focussing especially on decarbonisation and scaling up innovation. As outlined in the Commission Communication on the Road to the next MFF,9 the next Union long-term budget needs to be more focused, simpler, more flexible, and predictable and better deliver on the Union priorities, including bolstering the Union competitiveness.
3 The future of European competitiveness: Report by Mario Draghi, September 2024, https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en3 The future of European competitiveness: Report by Mario Draghi, September 2024, https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en
4 Enrico Letta's Report on the Future of the Single Market, April 2024, https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-letta.pdf.4 Enrico Letta's Report on the Future of the Single Market, April 2024, https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-letta.pdf.
5 Competitiveness compass - European Commission5 Competitiveness compass - European Commission
6 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation, COM(2025) 85 final, 26.2.2025.6 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation, COM(2025) 85 final, 26.2.2025.
7 COM(2025) 290 final State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future.7 COM(2025) 290 final State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future.
8 Joint Communication to the European Parliament, the European Council and the Council on ‘European Economic Security Strategy’, JOIN(2023) 20 final, 20.6.2023.8 Joint Communication to the European Parliament, the European Council and the Council on ‘European Economic Security Strategy’, JOIN(2023) 20 final, 20.6.2023.
9 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The road to the next multiannual financial framework, COM(2025) 46 final, 11.2.2025.9 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The road to the next multiannual financial framework, COM(2025) 46 final, 11.2.2025.

Amendment 2

Proposal for a regulation

Recital 3

Text proposed by the CommissionAmendment
(3) To regain and reinforce its competitive edge, it is essential that the Union revives the innovation cycle by developing its disruptive innovation capacity and investing in emerging, cutting-edge and strategic technologies with significant economic potential. To ensure its autonomy in the global economy, the Union should guarantee its technological and industrial leadership in strategic sectors, starting with critical raw materials supply chains, to develop and manufacture strategic technologies in Europe, as well as mitigate risks affecting its security and resilience emanating from critical external dependencies. This can be done by addressing market failures and suboptimal investment situations, in a proportionate manner and without crowding out private funding, considering the high investment needs for delivering on Union priorities, including for decarbonisation and the digital transition. Greater emphasis should be put on leveraging private sector participation by improving the use of risk-sharing mechanisms between Union funds and private investors, to ensure an efficient use of public funding. This will build upon and further amplify the impact of the progress achieved on the Savings and Investment Union, which will provide the necessary regulatory landscape for private investments to thrive. The use of any additional national resources is without prejudice to the application of Articles 107 and 108 TFEU.(3) To regain and reinforce its competitive edge, it is essential that the Union revives the innovation cycle by developing its disruptive innovation capacity and investing in emerging, cutting-edge and strategic technologies with significant economic potential. To ensure its autonomy in the global economy, the Union should guarantee its technological and industrial leadership in strategic sectors, starting with critical raw materials supply chains, to develop and manufacture strategic technologies in Europe, as well as mitigate risks affecting its security and resilience emanating from critical external dependencies. This can be done by addressing market failures and suboptimal investment situations, in a proportionate manner and without crowding out private funding, considering the high investment needs for delivering on Union priorities, including for decarbonisation and the digital transition. Greater emphasis should be put on leveraging private sector participation by improving the use of risk-sharing mechanisms between Union funds and private investors, which would ensure an efficient use of public funding in de-risking strategic projects and crowding in private capital. This will build upon and further amplify the impact of the progress achieved on the Savings and Investment Union, which will provide the necessary regulatory landscape for private investments to thrive. The use of any additional national resources is without prejudice to the application of Articles 107 and 108 TFEU.

Amendment 3

Proposal for a regulation

Read the rest (686 paragraphs)

Recital 4

Text proposed by the CommissionAmendment
(4) This requires that Union funding offers support to businesses and projects along the entire investment journey. This journey encompasses all stages of developing and manufacturing strategic technologies, products and services in Europe, from applied research, through all forms of innovation, scale-up, industrial deployment, to manufacturing and market deployment, including the necessary investment and operational costs support, infrastructure and skills. The investment journey is not linear as all stages feed each other, and ideas for new products or services might arise at any stage. European funding needs to cater for this non-linear reality with increased flexibility of providing support preserving predictability for funding.(4) This requires that Union funding offers support to businesses and projects along the entire investment journey. This journey encompasses all stages of developing and manufacturing strategic technologies, products and services in Europe, from applied research, through all forms of innovation, scale-up, industrial deployment, to manufacturing and market deployment, including the necessary investment and operational costs support, infrastructure and skills. The investment journey is not linear as all stages feed each other, and ideas for new products or services might arise at any stage. European funding needs to cater for this non-linear reality with increased flexibility of providing support preserving predictability for funding. It is important to highlight that Union funding should go beyond financial support and include technical assistance, in the form of expertise, know-how, or guidance to facilitate access to Union funding, navigate the application process for Union funds, and support scaling up.

Amendment 4

Proposal for a regulation

Recital 7

Text proposed by the CommissionAmendment
(7) Therefore, the purpose of the ECF is to establish an investment capacity to support European competitiveness in strategic technologies, infrastructures, products and services and sectors, providing for a more seamless investment journey. It will promote the creation, collaboration, and expansion of innovation, private finance and industrial ecosystems.(7) Therefore, the purpose of the ECF is to establish an investment capacity to support European competitiveness in strategic technologies, infrastructures, products and services and sectors, providing for a more seamless investment journey. In this context, the acceleration of the sustainability transformation is essential to safeguard long-term competitiveness and reduce structural dependencies on critical resources. It will promote the creation, collaboration, and expansion of innovation, private finance and industrial ecosystems.

Amendment 5

Proposal for a regulation

Recital 7 a (new)

Text proposed by the CommissionAmendment
(7a) The main goal of the ECF is to strengthen the ability of European companies - in particular SMEs, start-ups, scale-ups and small mid-caps from all Member States - to compete successfully in global markets, while safeguarding undistorted competition and level playing field in the single market. The ECF shall promote private investment by contributing to the Savings and Investments Union, facilitating cross-border investments while fully respecting open competition and the integrity of the Single Market.

Amendment 6

Proposal for a regulation

Recital 11

Text proposed by the CommissionAmendment
(11) In order to foster synergies between actions under the ECF and the Innovation Fund, the work programmes of the ECF should ensure coherence with the priorities and types of actions that could be funded under the Innovation Fund. Together, the ECF, Horizon Europe, and the Innovation Fund will provide coherent support to the Union competitiveness.(11) In order to foster synergies between actions under the ECF and the Innovation Fund, the work programmes of the ECF should ensure coherence with the priorities and types of actions that could be funded under the Innovation Fund. Together, the ECF, Horizon Europe, and the Innovation Fund must provide sufficient scale to support to the Union competitiveness.

Amendment 7

Proposal for a regulation

Recital 12

Text proposed by the CommissionAmendment
(12) Moreover, to foresee a strong connection with the Competitiveness Coordination Tool, the work programme of the ECF should ensure coherence with the selected projects and competitiveness priorities identified under the Tool.(12) Moreover, to foresee a strong connection with the Competitiveness Coordination Tool, the work programme of the ECF should ensure coherence between financial instruments and be aligned with the selected projects and competitiveness priorities identified under the Tool. The European Parliament shall be closely involved in the functioning of the Competitiveness Coordination Tool.

Amendment 8

Proposal for a regulation

Recital 15

Text proposed by the CommissionAmendment
(15) The Draghi report calls for more investment support to close the investment gap and recognises InvestEU as the key risk-sharing instrument to use. The ECF InvestEU Instrument should set up a single budgetary guarantee and deliver financial instruments to support EU competitiveness.(15) The Draghi report calls for more scale in Union funding instruments, emphasising the need to mobilise private investment to close the investment gap and recognises InvestEU as the key risk-sharing instrument to use. The ECF InvestEU Instrument should set up a single budgetary guarantee and deliver financial instruments to support Union competitiveness. It is essential to strengthen the use of budgetary guarantees, in line with the recommendations of the Draghi report, in close cooperation with the EIB. Guarantees mobilise private investment with a greater leverage effect to catalyse private investments and a lower budgetary impact, and should be preferred over non-repayable grants, which have a limited effect on spending efficiency.

Amendment 9

Proposal for a regulation

Recital 18

Text proposed by the CommissionAmendment
(18) The ECF should operate through four policy windows that mirror Union’s key policy priorities: Clean Transition and Industrial Decarbonisation; Digital Leadership; Health, Biotech, Agriculture and Bioeconomy;Resilience and Security, Defence industry and Space.(18) The ECF should operate through four policy windows that mirror Union’s key policy priorities: Clean Transition and Industrial Decarbonisation; Digital Leadership and Skills; Health, Biotech, Agriculture and Bioeconomy; Resilience and Security, Defence industry and Space.

Amendment 10

Proposal for a regulation

Recital 21

Text proposed by the CommissionAmendment
(21) The competitive strength of the Union lies in its people. The Competitiveness Compass identifies promoting skills and quality jobs as a horizontal enabler. The European Council Conclusions highlight that “following the Commission communication of 5 March 2025 on a Union of Skills, further efforts should be made to enhance the acquisition, recognition and retention of skills across the EU, from the building of basic skills to engaging in life-long learning, reskilling and upskilling, in line with the European Pillar of Social Rights and its Action Plan”. A strong dialogue is part of this. Human capital is key to the prosperity of the Union, its economic resilience and unique social market economy. It is essential to foster prosperity, including high quality jobs, by boosting productivity growth, making Union industries more competitive and innovative, attracting additional investments, and supporting a dynamic single market and enhanced economic security. The ECF should contribute to the Union of Skills12 by supporting the development of a skilled workforce equipped with the specific skills needed in the strategic investment areas of the Fund, through life-long learning, education, training projects and apprenticeships, and the creation of attractive quality jobs accessible to all and by accompanying ECF investments with skills investment to alleviate skills shortages in the given strategic sector of the ECF and indicate when it is included. This includes a Skills Guarantee that should enable workers in sectors undergoing restructuring to upskill and reskill, in line with relevant national, regional and/or sectoral transition strategies. The ECF should support skills intelligence, upskilling and reskilling, and foster public-private partnerships between universities, VET providers, businesses, in particular SMEs, social partners and applied research institutes. The ECF could also support activities of University Alliances, also in cooperation with employers, to improve their delivery on innovation and the development of skills and talent.(21) The competitive strength of the Union lies in its people. The Competitiveness Compass identifies promoting skills and quality jobs as a horizontal enabler. The European Council Conclusions highlight that “following the Commission communication of 5 March 2025 on a Union of Skills, further efforts should be made to enhance the acquisition, recognition and retention of skills across the EU, from the building of basic skills to engaging in life-long learning, reskilling and upskilling, in line with the European Pillar of Social Rights and its Action Plan”. A strong dialogue is part of this. Human capital is key to the prosperity of the Union, its economic resilience and unique social market economy. It is essential to foster prosperity, including high quality jobs, by boosting productivity growth, making Union industries more competitive and innovative, attracting additional investments, and supporting a dynamic single market and enhanced economic security. The ECF should contribute to the Union of Skills12 and the Commission’s financial literacy strategy12a by supporting the development of a skilled workforce equipped with the specific skills needed in the strategic investment areas of the Fund, through life-long learning, education, training projects and apprenticeships, and the creation of attractive quality jobs accessible to all and by accompanying ECF investments with skills investment to alleviate skills shortages in the given strategic sector of the ECF and indicate when it is included. This includes a Skills Guarantee that should enable workers in sectors undergoing restructuring to upskill and reskill, in line with relevant national, regional and/or sectoral transition strategies. The ECF should support skills intelligence, upskilling and reskilling, and foster public-private partnerships between universities, VET providers, businesses, in particular SMEs, social partners and applied research institutes. The ECF could also support activities of University Alliances, also in cooperation with employers, to improve their delivery on innovation and the development of skills and talent.
12 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The Union of Skills, COM(2025) 90 final, 5.3.2025.12 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The Union of Skills, COM(2025) 90 final, 5.3.2025.
12a Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on a financial literacy strategy for the EU, COM(2025) 681 final, 30.9.2025

Amendment 11

Proposal for a regulation

Recital 22

Text proposed by the CommissionAmendment
(22) The ECF should contribute to the objectives of decarbonising the European industry by promoting the development and deployment of clean technologies. The ECF will support the implementation of the Clean Industrial Deal, turning the clean transition and decarbonisation into a driver of growth and competitiveness for European industries. To this end, the ECF will support decarbonisation with a technology neutral approach, while recognising a contribution of different technologies to grid balancing and sector coupling, to align in particular with the investment needs of energy intensive sectors. Furthermore, it should advance the implementation of the Affordable Energy Action plan, ensuring secure, affordable, efficient and clean energy for all Europeans. The ECF will contribute to the shift towards a decarbonised, circular, resource-efficient, climate-neutral, water resilient and bio-based economy. It will also support sustainable, nature-positive and resilient industrial production in energy-intensive industries in the Union, in line with the objectives of the forthcoming proposal for the Industrial Decarbonisation Accelerator Act. It should also support the objectives of the Regulation (EU) 2024/172413 of the European Parliament and of the Council (Net-Zero Industry Act), boosting the manufacturing capacity of net-zero technologies and the ramp up of production capacities and investing in related infrastructure. To decarbonise the transport sector, amongst others the ECF will also invest in sustainable fuels, the related infrastructure and mobile assets as well as in the modernisation and digitisation of transport.(22) The ECF should contribute to the objectives of decarbonising the European industry by promoting the development and deployment of clean technologies. The ECF will support the implementation of the Clean Industrial Deal, turning the clean transition and decarbonisation into a driver of growth and competitiveness for European industries. To this end, the ECF will support decarbonisation with a technology neutral approach, while recognising a contribution of different technologies to grid balancing and sector coupling, to align in particular with the investment needs of energy intensive sectors. Furthermore, it should advance the implementation of the Affordable Energy Action plan, ensuring secure, affordable, efficient and clean energy for all Europeans. The ECF will contribute to the shift towards a decarbonised, circular, resource-efficient, climate-neutral, water resilient and bio-based economy. It will also support sustainable, nature-positive and resilient industrial production in energy-intensive industries in the Union, in line with the objectives of the forthcoming proposal for the Industrial Decarbonisation Accelerator Act. It should also support the objectives of the Regulation (EU) 2024/172413 of the European Parliament and of the Council (Net-Zero Industry Act), boosting the manufacturing capacity of net-zero technologies and the ramp up of production capacities and investing in related infrastructure. To decarbonise the transport sector, amongst others the ECF will also invest in sustainable fuels, the related infrastructure and mobile assets as well as in the modernisation and digitisation of transport. Competitiveness and decarbonisation are linked and achieving clean transition has potential to lead to new economic opportunities and independence of the EU’s energy supply and raw materials.
13 Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724 (OJ L, 2024/1735, 28.6.2024, ELI: http://data.europa.eu/eli/reg/2024/1735/oj).13 Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724 (OJ L, 2024/1735, 28.6.2024, ELI: http://data.europa.eu/eli/reg/2024/1735/oj).

Amendment 12

Proposal for a regulation

Recital 23

Text proposed by the CommissionAmendment
(23) The ECF will also contribute to protect, restore and improve the quality of the environment, including water, coast, sea and soil, to reduce pollution, to halt and reverse biodiversity loss and tackle the degradation of terrestrial and marine ecosystems, while enhancing climate and water resilience. The ECF Clean Transition and Decarbonisation window should finance projects that contribute to these objectives.(23) The ECF contributes that its investments and initiative will protect, restore and improve the quality of the environment, including water, coast, sea and soil, to reduce pollution, to halt and reverse biodiversity loss and tackle the degradation of terrestrial and marine ecosystems, while enhancing climate and water resilience. The ECF Clean Transition and Decarbonisation window should finance projects that contribute to these objectives.

Amendment 13

Proposal for a regulation

Recital 24

Text proposed by the CommissionAmendment
(24) Projects and activities under the Clean Transition and Industrial Decarbonisation window shall promote energy efficiency, integrated renewable energy, new energies, energy renovations, and innovative heating and cooling solutions.(24) Projects and activities under the Clean Transition and Industrial Decarbonisation window shall promote energy efficiency, integrated zero- and low-carbon energy, renewable energy, new energies, energy renovations, and innovative heating and cooling solutions. As outlined in Commission’s 2040 climate target impact assessment, all zero- and low-carbon energy solutions are needed to decarbonise the energy system. Projections show that zero- and low-carbon energy sources will generate over 90% of electricity in the Union in 2040, primarily from renewables, complemented by nuclear energy.

Amendment 14

Proposal for a regulation

Recital 28

Text proposed by the CommissionAmendment
(28) While Europe’s digital transformation is accelerating, the many critical dependencies on non-Union suppliers (from raw materials, advanced semiconductors, and AI chips to systems, infrastructures and services) require European alternatives that anchor the digital transformation in Europe’s economy, with our shared values as the essential differentiator, including by leveraging the power of open-source technologies. Support for digital leadership is driven by regulatory and non-regulatory Union policy initiatives in the digital area such as the AI Act, AI Continent and AI Action Plan, the Apply AI Strategy, the Cloud and AI Development Act, the Data Union Strategy, the Digital Networks Act, the EU Quantum Strategy and the Quantum Act, the Cyber-Solidarity Act, the Cyber-Resilience Act and the Cybersecurity Act, the White Paper for European Defence-Readiness 2030, and the revision of the EU Chips Act, and by future policy initiatives. The digital areas to invest in include a number of critical frontier technologies such as Artificial Intelligence (AI) and AI-powered digital twins, robotics, semiconductors, autonomous or quantum technologies. They also include key infrastructures such as digital identity, cloud, high performance and quantum computing, communication, advanced underwater observation infrastructure, and sensing infrastructures, digital connectivity networks, including submarine cables, as well as cybersecurity, defence or space capacities. Fostering their uptake across private and public sectors makes our entire economy more competitive, secure, sovereign, and sustainable, fortifying societal resilience and preparedness. Moreover, interoperable digital technologies are driving the modernisation of the public sector, serving for the integration of the single market, which is our most valuable stepping stone for European digital start-ups to become globally competitive. Technological progress and innovation in every economic sector, and thus their productivity and competitiveness, are essentially driven by the integration of sector-specific digital developments and use of digital solutions that should be supported across the ECF.(28) While Europe’s digital transformation is accelerating, the many critical dependencies on non-Union suppliers (from raw materials, advanced semiconductors, and AI chips to systems, infrastructures and services) require European alternatives that anchor the digital transformation in Europe’s economy, with our shared values as the essential differentiator, including by leveraging the power of open-source technologies. Support for digital leadership and skills is driven by regulatory and non-regulatory Union policy initiatives in the digital area such as the AI Act, AI Continent and AI Action Plan, the Apply AI Strategy, the Cloud and AI Development Act, the Data Union Strategy, the Digital Networks Act, the EU Quantum Strategy and the Quantum Act, the Cyber-Solidarity Act, the Cyber-Resilience Act and the Cybersecurity Act, the White Paper for European Defence-Readiness 2030, and the revision of the EU Chips Act, and by future policy initiatives. The digital areas to invest in include a number of critical frontier technologies such as Artificial Intelligence (AI) and AI-powered digital twins, robotics, semiconductors, autonomous or quantum technologies. They also include key infrastructures such as digital identity, cloud, high performance and quantum computing, communication, advanced underwater observation infrastructure, and sensing infrastructures, digital connectivity networks, including submarine cables, as well as cybersecurity, defence or space capacities. Fostering their uptake across private and public sectors makes our entire economy more competitive, secure, sovereign, and sustainable, fortifying societal resilience and preparedness. Moreover, interoperable digital technologies are driving the modernisation of the public sector, serving for the integration of the single market, which is our most valuable stepping stone for European digital start-ups to become globally competitive. Technological progress and innovation in every economic sector, and thus their productivity and competitiveness, are essentially driven by the integration of sector-specific digital developments and use of digital solutions that should be supported across the ECF.

Amendment 15

Proposal for a regulation

Recital 35

Text proposed by the CommissionAmendment
(35) Fostering the resilience of the European industry is essential for the Union to remain competitive even in times of crisis and is essential for Union’s security. To ensure its resilience, the ECF should support actions aimed to reduce dependencies and diversify supply in strategic sectors such as the raw materials sector, thus reinforcing the Union capacities for a secure supply of sustainable critical raw materials along the whole value chain in line with the objectives of the Regulation (EU) 2024/1252 of the European Parliament and of the Council (Critical Raw Materials Act)15 and the chemicals industry, underpinning almost all industry sectors. Pursuing an ambitious and mutually beneficial trade agenda is essential for the Union’s ability to diversify its supply chains and effectively reduce dependencies.(35) Fostering the resilience of the European industry is essential for the Union to remain competitive even in times of crisis and is essential for Union’s security. To ensure its resilience, the ECF should support actions aimed to reduce dependencies and diversify supply in strategic sectors such as the raw materials sector, thus reinforcing the Union capacities for a secure supply of sustainable critical raw materials along the whole value chain in line with the objectives of the Regulation (EU) 2024/1252 of the European Parliament and of the Council (Critical Raw Materials Act)15 and the chemicals industry, underpinning almost all industry sectors. Pursuing an ambitious and mutually beneficial trade agenda is essential for the Union’s ability to diversify its supply chains and effectively reduce dependencies. Stresses that ensuring the availability of critical minerals is essential for the green transition and the long-term competitiveness and autonomy of the European Union;
15 Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020 (Text with EEA relevance), OJ L, 2024/1252, 3.5.2024, ELI: http://data.europa.eu/eli/reg/2024/1252/oj15 Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020 (Text with EEA relevance), OJ L, 2024/1252, 3.5.2024, ELI: http://data.europa.eu/eli/reg/2024/1252/oj

Amendment 16

Proposal for a regulation

Recital 40 a (new)

Text proposed by the CommissionAmendment
(40a) In order to ensure that the benefits of increased competitiveness are shared across the Union, the ECF should also pursues the specific objectives of reducing economic, social and territorial disparities and fostering convergence between less developed, transition and more developed regions. That support should address persistent innovation and digital divides and ensure the effective diffusion of innovation and the widespread uptake of advanced technologies across all regions of the Union. This should be achieved through targeted technical assistance and resources, robust monitoring of geographical distribution across regions, and the use of incentives in relevant calls with a view of ensuring that a wide range of sectors and regions are covered and excessive sectoral or geographical concentration is avoided. The main objective should be to open ECF funding to as much beneficiaries as possible across EU.

Amendment 17

Proposal for a regulation

Recital 40 b (new)

Text proposed by the CommissionAmendment
(40b) This Regulation establishes new categories of first-time applicants and less experienced applicants, which should receive particular attention and targeted support, as such entities often face difficulties in successfully competing for funding under centrally managed Union programmes. Persistent disparities in participation and success rates contribute to competitiveness and research gaps in many regions and Member States across the Union. In this context, experience from Horizon Europe demonstrates a significant geographical concentration of funding, with five Member States each having secured more Union funding for innovation projects since 2021 than the fifteen Widening countries combined.

Amendment 18

Proposal for a regulation

Recital 45

Text proposed by the CommissionAmendment
(45) To promote the resilience of the Union economy, notably by reducing strategic dependencies, the ECF should enable Union preference for support to manufacturing and developing strategic technologies and sectors located in the Union, notably for actions related to Union strategic assets, interests, autonomy or security, in line with Union law and its international commitments. It is essential that European funding contributes to the uptake of strategic technologies developed in the Union and funded through European funding. To support the development and manufacturing in the Union of strategic technologies funded by the Union, the ECF should allow to condition its support through control restrictions, asset transfers restrictions and supply restrictions to the use of specific products and technologies.(45) To strengthen the resilience of the Union economy, and implement the Savings and Investments Union objectives, notably by reducing strategic dependencies and supporting Union companies in scaling up, the ECF should enable Union preference for support to manufacturing and developing strategic technologies and sectors located in the Union, notably for actions related to Union strategic assets, interests, autonomy or security, in line with Union law and its international commitments. It is essential that European funding contributes to the uptake of strategic technologies developed in the Union and funded through European funding. To support the development and manufacturing in the Union of strategic technologies funded by the Union, the ECF should allow to condition its support through control restrictions, asset transfers restrictions and supply restrictions to the use of specific products and technologies.

Amendment 19

Proposal for a regulation

Recital 47

Text proposed by the CommissionAmendment
(47) The ECF should be open and facilitate synergies with other Union activities that support policy areas closely linked with competitiveness, the including the Framework Programme for Research and Innovation, external policies and programmes in shared management with Member States. This should allow for the combination and cumulation of funding for actions supporting the objectives of more than one Union policy area. Cooperation between the Commission and Member States should be established to ensure consistency and complementarities between the ECF and the Regulation (EU) [XXX] [National and Regional partnership plans] Moreover, support from the Regulation (EU) [XXX] [National and Regional Partnership Plans ] and from the ECF to projects that have been awarded the Competitiveness Seal should be facilitated, taking advantage of the assessment conducted prior to the attribution of the Seal and without prejudice to the State aid rules. The criteria for awarding the Competitiveness Seal should be designed in a manner that can enable to seal to also act as a quality guarantee providing assurances to institutional investors that the project has been appropriately vetted. The Competitiveness Seal should be awarded to high quality projects contributing to the objectives of the ECF. The ECF may be implemented jointly with other Union programmes or other co-donors or co-investors, and those partners should be able to participate in evaluation committees for jointly funded award procedures. The implementation of all those synergy activities should be simple. Reporting and record-keeping requirements for recipients should be reduced, where possible to a single contractual reporting and payment stream with a single set of rules for all support provided.(47) The ECF should be open and facilitate synergies with other Union activities that support policy areas closely linked with competitiveness, the including the Framework Programme for Research and Innovation, external policies and programmes in shared management with Member States. This should allow for the combination and cumulation of funding for actions supporting the objectives of more than one Union policy area. Cooperation between the Commission and Member States should be established to ensure consistency and complementarities between the ECF and the Regulation (EU) [XXX] [National and Regional partnership plans] Moreover, support from the Regulation (EU) [XXX] [National and Regional Partnership Plans ] and from the ECF to projects that have been awarded the Competitiveness Seal should be facilitated, taking advantage of the assessment conducted prior to the attribution of the Seal and without prejudice to the State aid rules. The criteria for awarding the Competitiveness Seal should be designed in a manner that can enable to seal to also act as a quality guarantee providing assurances to institutional investors that the project has been appropriately vetted. The Competitiveness Seal should be awarded to high quality projects contributing to the objectives of the ECF, including to strategic projects under CRMA, NZIA, Chips Act, and CMA, projects of digital technology as well as other strategic projects identified in Union legislation. The ECF may be implemented jointly with other Union programmes or other co-donors or co-investors, and those partners should be able to participate in evaluation committees for jointly funded award procedures. The implementation of all those synergy activities should be simple. Reporting and record-keeping requirements for recipients should be reduced, where possible to a single contractual reporting and payment stream with a single set of rules for all support provided.

Amendment 20

Proposal for a regulation

Recital 48

Text proposed by the CommissionAmendment
(48) Union support should focus on the achievement of policy objectives. In all cases, ECF funding should be provided in the form best able to achieve its objectives, while limiting administrative burden for recipients to the absolute minimum. When implementing the budget, the ECF should provide the full toolbox of Union support and ensure synergies between its supported policies, in particular by allowing for simplified common award procedures to pursue objectives of more than one policy. As such, the elimination of burdensome financial reporting through the widest possible use of financing not linked to cost should be pursued as a major simplification measure.(48) Union support should focus on the achievement of policy objectives. In all cases, ECF funding should be provided in the form best able to achieve its objectives, while limiting administrative burden for recipients to the absolute minimum, especially for SMEs. When implementing the budget, the ECF should provide the full toolbox of Union support and ensure synergies between its supported policies, in particular by allowing for simplified common award procedures to pursue objectives of more than one policy. As such, the elimination of burdensome financial reporting through the widest possible use of financing not linked to cost should be pursued as a major simplification measure.

Amendment 21

Proposal for a regulation

Recital 50

Text proposed by the CommissionAmendment
(50) The ECF should be implemented through work programmes as set out in this Regulation. Work programmes could be adopted under an annual or multi-annual format. The latter could in particular be considered for the purposes of Union support provided for budgetary guarantees and financial instruments, with a view to provide predictability to implementing partners. The designated mode of implementation reflects the identified needs for directionality, flexibility, predictability and efficiency, required to meet the objectives of the Regulation. In accordance with Regulation (EU Euratom) 2024/2059, the work programmes and the call documents will set out more technical implementation details for the budget across the set of policies supported by the ECF, including specific eligibility and award criteria depending on the instrument of budget implementation, be it grant, or procurement, and the specific policy objectives pursued. In accordance with Article 136 of the Financial Regulation, eligibility restrictions should apply to high-risk suppliers, for security reasons. Work programmes are also the appropriate place to allocate budget in accordance with evolving policy priorities, and they should set out contributions, specific conditions and expected results.(50) The ECF should be implemented through work programmes as set out in this Regulation. Work programmes have a multi-annual format. This is in particular important for the purposes of Union support provided for budgetary guarantees and financial instruments, with a view to provide predictability to implementing partners. In accordance with Regulation (EU Euratom) 2024/2059, the work programmes and the call documents will set out more technical implementation details for the budget across the set of policies supported by the ECF, including specific eligibility and award criteria depending on the instrument of budget implementation, be it grant, or procurement, and the specific policy objectives pursued. Work programmes are also the appropriate place to allocate budget in accordance with evolving policy priorities, and they should set out contributions, specific conditions and expected results.

Amendment 22

Proposal for a regulation

Recital 51

Text proposed by the CommissionAmendment
(51) For financial instruments and the budgetary guarantee to effectively crowd in private money, implementing partners need to be closely associated. This ensures policy steer and alignment, as well as project pipeline generation. The experience and lessons learnt with the implementation of the InvestEU Programme emphasise the importance of investment guidelines in creating this buy-in and providing the necessary predictability and visibility to the implementing partners and investors, in order for them to set up their organisational capacity and originate the pipeline of investments, while allowing the necessary flexibility to ensure an adequate policy steer during implementation. Investment guidelines should include detailed description of the policy areas of intervention and investment focus with a view to ensuring additionality and incentivise crowding in private and public investment in support of the Union’s policy objectives and strategic projects. The investment guidelines should be prepared in consultation with implementing partners to benefit from their market knowledge, and enable them to invest in Union priority areas and incentivise them for more risk taking. To cater for evolving needs and developments, the investment guidelines may be reviewed in the context of the MFF mid-term review.(51) For financial instruments and the budgetary guarantee to effectively crowd in private money, implementing partners need to be closely associated and easily identifiable by companies in their countries. This ensures policy steer and alignment, as well as project pipeline generation. The experience and lessons learnt with the implementation of the InvestEU Programme emphasise the importance of investment guidelines in creating this buy-in and providing the necessary predictability and visibility to the implementing partners and investors, in order for them to set up their organisational capacity and originate the pipeline of investments, while allowing the necessary flexibility to ensure an adequate policy steer during implementation. Investment guidelines should include detailed description of the policy areas of intervention and investment focus with a view to ensuring additionality and incentivise crowding in private and public investment in support of the Union’s policy objectives and strategic projects. The investment guidelines should be prepared in consultation with implementing partners to benefit from their market knowledge, and enable them to invest in Union priority areas and incentivise them for more risk taking. To cater for evolving needs and developments, the investment guidelines may be reviewed in the context of the MFF mid-term review.

Amendment 23

Proposal for a regulation

Recital 56

Text proposed by the CommissionAmendment
(56) A horizontal, cross-cutting funding toolbox should be set at the service of all policy windows, offering every form of support allowed by Regulation (EU, Euratom) 2024/2059, such as financial instruments, including support provided in the form of equity. The choice of the specific funding instrument and in particular whether support will be repayable or not, shall depend on the nature of the actions to be funded (for example underlying market failures, the specific need, the nature of the industry, the stage of development or type of the beneficiary). Union support should derisk projects to the degree necessary for the private sector to invest and for the project to be successfully delivered. Co-financing rates should be as low as possible and as high as needed to realise the supported project. A mix of funding tools could be used, including blending operations and combination of funding. The ECF should also provide each policy area with advice on the most appropriate funding tool to be used for its specific actions, depending on, inter alia, the development stage, the specific industry needs and underlying market failures.(56) A horizontal, cross-cutting funding toolbox should be set at the service of all policy windows, offering every form of support allowed by Regulation (EU, Euratom) 2024/2059, such as financial instruments, including support provided in the form of equity. The choice of the specific funding instrument and in particular whether support will be repayable or not, shall depend on the nature of the actions to be funded (for example underlying market failures, the specific need, the nature of the industry, the stage of development or type of the beneficiary). Union support should derisk projects to the degree necessary for the private sector to invest and for the project to be successfully delivered, while ensuring that repayable instruments and budgetary guarantees are prioritised to maximise leverage of private capital and minimise distortions to competition. Co-financing rates should be as low as possible and as high as needed to realise the supported project. A mix of funding tools could be used, including blending operations and combination of funding. The ECF should also provide each policy area with advice on the most appropriate funding tool to be used for its specific actions, depending on, inter alia, the development stage, the specific industry needs and underlying market failures, with a strong emphasis on market-based, repayable tools to safeguard competitive neutrality and the integrity of the single market.

Amendment 24

Proposal for a regulation

Recital 66

Text proposed by the CommissionAmendment
(66) Where necessary and duly justified, the ECF should also simplify and accelerate the implementation of Union support for certain important projects.(66) Where necessary and duly justified, the ECF should also simplify and accelerate the implementation of Union support for certain important projects. It should support greater risk-taking capacity for strategic and first-of-a-kind projects, while ensuring that as many projects as possible can ultimately be supported.

Amendment 25

Proposal for a regulation

Recital 70

Text proposed by the CommissionAmendment
(70) To provide implementing partners with broader access to the ECF InvestEU Instrument, the Commission should be able to conclude agreements in indirect management with all the categories of entities listed under Article 62(1), point (c), Regulation (EU, Euratom) 2024/2059. To unlock private capital, bodies established in a Member State, governed by the private law of a Member State or Union law should also be eligible to be exceptionally entrusted, following a positive pillar assessment, with the implementation of financial instruments or budgetary guarantees, including when combined with grants or with other forms of non-repayable support in blending operations, to the extent that such bodies are provided with adequate financial guarantees. Such bodies should be selected taking due account of the nature of the financial instrument or budgetary guarantee to be implemented, the experience and the financial and operational capacity of those bodies, and their rules and procedures for verifying the economic viability of projects of final recipients. The selection should be transparent, justified on objective grounds and should not give rise to a conflict of interests.(70) To provide implementing partners with broader access to the ECF InvestEU Instrument, the Commission should be able to conclude agreements in indirect management with all the categories of entities listed under Article 62(1), point (c), Regulation (EU, Euratom) 2024/2059. To unlock private capital and increase risk-taking capacities, bodies established in a Member State, governed by the private law of a Member State or Union law should also be eligible to be exceptionally entrusted, following a positive pillar assessment, with the implementation of financial instruments or budgetary guarantees, including when combined with grants or with other forms of non-repayable support in blending operations, to the extent that such bodies are provided with adequate financial guarantees. Such bodies should be selected taking due account of the nature of the financial instrument or budgetary guarantee to be implemented, the experience and the financial and operational capacity of those bodies, and their rules and procedures for verifying the economic viability of projects of final recipients. The selection should be transparent, justified on objective grounds and should not give rise to a conflict of interests.

Amendment 26

Proposal for a regulation

Recital 76

Text proposed by the CommissionAmendment
(76) Whereas European innovative start-ups and scale-ups are essential engines of growth and competitiveness, and acknowledging that they face persistent barriers to access necessary financing in the Union, the ECF InvestEU Instrument should provide targeted financial support to growing and scaling up companies in the Union at all stages — from inception and start-up to scale-up and industrial manufacturing. The ECF InvestEU Instrument should provide direct and indirect funding for European companies with a view to attract private investors — thereby unlocking the full potential of European entrepreneurship and investment. This will empower start-ups and scale-ups and reinforce the Union’s global leadership in technology and industry, while bridging Europe’s innovation and investment gaps and delivering on the ambition of the Savings and Investment Union. The ECF InvestEU Instrument would include a facility aiming to ensure that high-growth enterprises developing or deploying innovative technologies, including in areas important for the Union’s strategic interests and economic security, can access adequate capital to scale up their businesses. It will mobilise investments from Europe’s capital markets, in line with Union’s policy priorities.(76) Whereas European innovative start-ups and scale-ups are essential engines of growth and competitiveness, and acknowledging that they face persistent barriers to access necessary financing in the Union, the ECF InvestEU Instrument should provide targeted financial support to growing and scaling up companies in the Union at all stages — from inception and start-up to scale-up and industrial manufacturing. The ECF InvestEU Instrument should build upon the achievements and best practices of the InvestEU Fund as the only debt and guarantee instrument designed to leverage public and private investment and to de-risk projects with a high Union added value. Simultaneously, it should be designed with an enhanced risk-bearing capacity, enabling it to address investment gaps that exceed the mandate or risk appetite of other public financial institutions, and thereby operate as a genuinely additional and catalytic Union-level instrument, unlocking its full potential in supporting both the competitiveness and the strategic objectives of the Union. The ECF InvestEU Instrument should provide direct and indirect funding for European companies with a view to attract private investors — thereby unlocking the full potential of European entrepreneurship and investment. This will empower start-ups and scale-ups and reinforce the Union’s global leadership in technology and industry, while bridging Europe’s innovation and investment gaps and delivering on the ambition of the Savings and Investment Union. The ECF InvestEU Instrument would include a facility aiming to ensure that high-growth enterprises developing or deploying innovative technologies, including in areas important for the Union’s strategic interests and economic security, can access adequate capital to scale up their businesses. It will mobilise investments from Europe’s capital markets, in line with Union’s policy priorities.

Amendment 27

Proposal for a regulation

Recital 80 a (new)

Text proposed by the CommissionAmendment
(80a) In order to ensure that SMEs can effectively benefit from support under the ECF, access to funding should be simple, transparent and easily accessible. Information on available financial support should be clearly presented through a single, easily navigable online portal, enabling SMEs to identify and request relevant financial resources without undue administrative burden. Procedures for accessing such support should be efficient and timely, ensuring that funding can be mobilised rapidly.

Amendment 28

Proposal for a regulation

Recital 81 a (new)

Text proposed by the CommissionAmendment
(81a) In order to maximise SME participation and reduce administrative burden, the ECF should encourage the use of cascade funding mechanisms under the ECF InvestEU Instrument, allowing simplified and unbureaucratic open calls accessible to SMEs through consortia and trusted intermediary structures.

Amendment 29

Proposal for a regulation

Recital 83

Text proposed by the CommissionAmendment
(83) The ECF is to be implemented in accordance with Regulation (EU) [XXX]23 of the European Parliament and of the Council [Performance Regulation] which establishes the rules for the expenditure tracking and the performance framework for the Union budget, including rules for ensuring a uniform application of the principles of ‘do no significant harm’ and gender equality referred to in Article 33(2), points (d) and (f), of Regulation (EU, Euratom) 2024/2509 respectively, rules for monitoring and reporting on the performance of Union programmes and activities, rules for establishing a Union support portal, rules for the evaluation of the programmes, as well as other horizontal provisions applicable to all Union programmes such as those on information, communication and visibility.deleted
23 OJ L.., p

Amendment 30

Proposal for a regulation

Recital 87

Text proposed by the CommissionAmendment
(87) Although work programmes and other acts implementing this Regulation concern specific budget implementation tasks which do not require a conferral of implementing powers and which should not normally fall within the scope of implementing acts referred to in Regulation (EU) No 182/2011, the advisory procedure should be used for the adoption of certain acts as defined in this Regulation, including work programmes implementing activities for clean transition, health, biotech, agriculture and bioeconomy, and digital leadership, resilience and security, defence industry and space, given that those acts should be fully supported and create synergies with national and shared management activities conducted by the Member States. Due the sensitivity and particular importance of synergies and full coordination with Member States in the area of resilience and security, defence industry support and space, the examination procedure should be used for the adoption of work programmes in these areas.(87) Although work programmes and other acts implementing this Regulation concern specific budget implementation tasks which do not require a conferral of implementing powers and which should not normally fall within the scope of implementing acts referred to in Regulation (EU) No 182/2011, the advisory procedure should be used for the adoption of certain acts as defined in this Regulation, including work programmes implementing activities for clean transition, health, biotech, agriculture and bioeconomy, and digital leadership and skills, resilience and security, defence industry and space, given that those acts should be fully supported and create synergies with national and shared management activities conducted by the Member States. Due the sensitivity and particular importance of synergies and full coordination with Member States in the area of resilience and security, defence industry support and space, the examination procedure should be used for the adoption of work programmes in these areas.

Amendment 31

Proposal for a regulation

Recital 88 a (new)

Text proposed by the CommissionAmendment
(88a) The Commission shall regularly inform the European Parliament about the setup, outlay, and implementation of the ECF and project funding.

Amendment 32

Proposal for a regulation

Recital 88 b (new)

Text proposed by the CommissionAmendment
(88b) Strengthening the Union’s competitiveness cannot be achieved solely through financial support under the European Competitiveness Fund. It also requires the completion of the Single Market, including well-functioning capital markets, the removal of remaining barriers at Union and national level, and the simplification of applicable rules. In this context, the European Competitiveness Fund should be complemented by measures facilitating long-term investment, including by pension funds and the development of a 28th regime to enable companies to operate, scale and expand more easily across the internal market.

Amendment 33

Proposal for a regulation

Article 1 – paragraph 2 – point c

Text proposed by the CommissionAmendment
(c) A ‘Digital Leadership’ window – implemented through the activities set out in Chapter II and Chapter VI, and contributing to the specific objectives set out in Article 3(2), point (c);(c) A ‘Digital Leadership and skills’ window – implemented through the activities set out in Chapter II and Chapter VI, and contributing to the specific objectives set out in Article 3(2), point (c);

Amendment 34

Proposal for a regulation

Article 1 – paragraph 2 – point d a (new)

Text proposed by the CommissionAmendment
(da) An SME chapter under each window, including also start-ups – implemented through the activities set out in Chapter II and Chapter III, and contributing in addition to the specific objectives set out in Article 3(2), point (a -1);

Amendment 35

Proposal for a regulation

Article 2 – paragraph 1 – point 10 a (new)

Text proposed by the CommissionAmendment
(10a) ‘Investment Guidelines’ means a delegated act supplementing this legislative act, including specifying eligibility of investments, eligible counterparts, financial products, sustainability and other relevant aspects;

Amendment 36

Proposal for a regulation

Article 2 – paragraph 1 – point 11

Text proposed by the CommissionAmendment
(11) ‘Investment journey’ means the continuum of public and private financial support and policy support mechanisms provided to recipients across its entire development chain, including a comprehensive series of activities involved in the allocation of financial resources and provision of support to foster innovation and economic growth. This journey includes, but is not limited to, the initiation from fundamental and applied research phases, progressing through stages of scaling up, industrial deployment, and advancing to the culmination in full-scale manufacturing and industrial maturity and internationalisation;(11) ‘Investment journey’ means the continuum of public and private financial support and policy support mechanisms provided to recipients across its entire development chain, including a comprehensive series of activities involved in the allocation of financial resources and provision of support to foster innovation and economic growth. This journey includes, but is not limited to, the initiation from fundamental and applied research phases, progressing through stages of scaling up, industrial deployment, and advancing to the culmination in full-scale manufacturing and industrial maturity, commercialisation for end-consumers, including SMEs, social economy actors, and households, and internationalisation;

Amendment 37

Proposal for a regulation

Article 2 – paragraph 1 – point 20

Text proposed by the CommissionAmendment
(20) ‘Stakeholders' means individuals, groups, or organizations that are affected by and can be involved in the programme implementation;(20) ‘Stakeholders' means individuals, groups, or organizations that are affected by and can be involved in the programme implementation, including relevant private and public stakeholders;

Amendment 38

Proposal for a regulation

Article 2 – paragraph 1 – point 21 a (new)

Text proposed by the CommissionAmendment
(21a) ‘start-up’ is an enterprise which fulfils all of the following criteria: (a) it is an autonomous enterprise within the meaning of point 5.1. of the Annex to Commission Recommendation C(2026) 1800 final; (b) it employs fewer than 100 persons and its annual turnover or annual balance sheet total, or both, does not exceed EUR 10 million; (c) it has been operating for less than 10 years following its registration;

Amendment 39

Proposal for a regulation

Article 2 – paragraph 1 – point 21 b (new)

Text proposed by the CommissionAmendment
(21b) ‘scale-up’ is an enterprise which fulfils all of the following criteria: (a) it is an autonomous enterprise within the meaning of point 5.1 of the Annex to Commission Recommendation C(2026) 1800 final; (b) its annual turnover or balance sheet total, or both, exceeds EUR 10 million; (c) its average annualised increase in the number of employees or in revenue exceeds 20% over the two preceding years; (d) it fulfils at least one of the two following criteria: (i) it employs fewer than 750 persons; (ii) it is not publicly listed;

Amendment 40

Proposal for a regulation

Article 2 – paragraph 1 – point 21 c (new)

Text proposed by the CommissionAmendment
(21c) 'less experienced applicants' means SMEs, including start-ups, which, during the five years preceding the call deadline have submitted eligible proposals without being awarded funding under a centrally managed Union programme, despite reaching the minimum pass threshold for the ‘Quality’ award criterion in the relevant calls;

Amendment 41

Proposal for a regulation

Article 2 – paragraph 1 – point 21 d (new)

Text proposed by the CommissionAmendment
(21d) 'first-time applicants' means SMEs, including start-ups, that, prior to the call deadline, have never submitted a proposal under a centrally managed Union programme.

Amendment 42

Proposal for a regulation

Article 3 – paragraph 1 – introductory part

Text proposed by the CommissionAmendment
1. The general objective of the ECF is to increase European competitiveness, notably in strategic sectors and technologies along the investment journey by:1. The general objective of the ECF is to increase European competitiveness and resilience, notably in strategic, innovative sectors and technologies along the investment journey by:

Amendment 43

Proposal for a regulation

Article 3 – paragraph 1 – point c

Text proposed by the CommissionAmendment
(c) addressing market failures and suboptimal investment situations, including by crowding in private capital and institutional investors as well as public funding in a proportionate manner, while avoiding duplication and without crowding out private investors; serving as an integrated platform for delivering targeted financial support to companies across all development phases start-ups, scale-ups, and strategic companies, including those actively pursuing manufacturing, industrial and market deployment;(c) addressing market failures and suboptimal investment situations across EU, including by crowding in private capital and institutional investors as well as public funding in a proportionate manner, while avoiding duplication and without crowding out private investors; empowering regional entities to support a local, clean, industrial transition; serving as an integrated platform for delivering targeted financial support to companies across all development phases start-ups, scale-ups, and strategic companies, including those actively pursuing manufacturing, industrial and market deployment; prioritising projects that deliver scalable, commercially viable solutions and that ultimately supports innovation and increases productivity growth;

Amendment 44

Proposal for a regulation

Article 3 – paragraph 1 – point d

Text proposed by the CommissionAmendment
(d) furthering the integration of Union capital markets in alignment with the objective of delivering Savings and Investment Union, including solutions to address the fragmentation of Union capital markets, eliminate barriers and create incentives for private investments and diversify and reinforce the sources of financing for Union enterprises in all the Member States, including those with less developed capital markets;(d) furthering the integration of Union capital markets in alignment with the objective of delivering on the Savings and Investments Union, including solutions to address lack of private funding for innovative Union companies, which makes it less attractive for them to scale up within the Union rather than in other regions, the fragmentation of Union capital markets, eliminate barriers for cross-border investments, and create incentives for private investments and diversify and reinforce the sources of financing for Union enterprises in all the Member States, especially those with less developed capital markets by strengthening existing strategic European value chains and enabling cross- border industrial cooperation within the Single Market;

Amendment 45

Proposal for a regulation

Article 3 – paragraph 1 – point e

Text proposed by the CommissionAmendment
(e) aligning research, innovation and industrial policy support to translate Union’s research excellence into Union industrial strength on global markets and securing the future of manufacturing in Europe;(e) aligning research, innovation and industrial policy support to translate Union’s research excellence into Union industrial strength on global markets and securing the future of manufacturing in Europe; pursuing predominantly horizontal interventions improving framework conditions for research excellence, innovation capacity-building and the global competitiveness of all European companies;

Amendment 46

Proposal for a regulation

Article 3 – paragraph 1 – point g

Text proposed by the CommissionAmendment
(g) strengthening the competitiveness of SMEs and small mid-cap companies established in the Union and their ability to grow and scale up, in particular by improving their access to finance, including private investment, micro-finance and support to social enterprises as facilitating access to Union funding, through faster, simplified and harmonised procedures; reducing and ensuring a proportionate reporting burden;deleted

Amendment 47

Proposal for a regulation

Article 3 – paragraph 1 – point h

Text proposed by the CommissionAmendment
(h) addressing shortages of skills critical to all kinds of quality jobs in strategic sectors for EU competitiveness, through both horizontal and specific skills investment, contributing to the availability of skills in future emerging technologies, and by pursuing to accompany investments with skills investment and indicate when it is included;(h) addressing shortages of skills critical to all kinds of quality jobs in strategic sectors for Union competitiveness, including the lack of financial literacy, which is key for starting and growing a business and making informed investment choices, through both horizontal and specific skills investment, contributing to the availability of skills in future emerging technologies, and by pursuing to accompany investments with skills investment and indicate when it is included;

Amendment 48

Proposal for a regulation

Article 3 – paragraph 1 – point i

Text proposed by the CommissionAmendment
(i) ensuring the integration of the Single Market, including by supporting initiatives at any stage of the investment journey with positive spill-over effects for the Single Market and resilience of its value chains;(i) ensuring the integration and level playing field of the Single Market, including by supporting initiatives at any stage of the investment journey with positive spill-over effects for the Single Market and resilience of its value chains;

Amendment 49

Proposal for a regulation

Article 3 – paragraph 1 – point k

Text proposed by the CommissionAmendment
(k) ensuring a just transition to a sustainable, decarbonised and digital economy that is fair and supporting workers and communities.(k) ensuring a just transition to a sustainable, decarbonised and digital economy that is fair and supporting workers, social economy actors, households and communities, including in sectors requiring enhanced transition efforts, in particular in the energy-intensive industries.

Amendment 50

Proposal for a regulation

Article 3 – paragraph 1 – point k a (new)

Text proposed by the CommissionAmendment
(ka) safeguarding a balanced distribution of opportunities across the Union, unlocking the full high-value potential of all market operators and regions, fostering cooperation, and promoting integration into sustainable, inclusive and resilient Union value chains;

Amendment 51

Proposal for a regulation

Article 3 – paragraph 2 – point -a (new)

Text proposed by the CommissionAmendment
(-a) For support to SMEs, the specific objectives of:
(1) supporting the competitiveness of SMEs and start-ups established in the Union and their ability to engage in cross-border activity, grow and scale up, in particular by improving their access to finance, including private investment, micro-finance, by supporting social enterprises, by facilitating access to Union funding, through technical support, in the form of expertise, know-how, or guidance to navigate the application process and through faster, simplified and harmonised procedures and by reducing disproportionate burden.
(2) strengthening the competitiveness of start-ups established in the Union and their ability to grow and scale up within the Union’s internal market;

Amendment 52

Proposal for a regulation

Article 3 – paragraph 2 – point a

Text proposed by the CommissionAmendment
(a) For support to Clean Transition and Industrial Decarbonisation, the specific objectives of support to decarbonisation of European industry, including SMEs and energy intensive industries, clean tech manufacturing and its supply chains, and contributing to the shift towards a sustainable, circular, energy-, water- and resource-efficient, climate-neutral and resilient economy. This includes the uptake by industries of decarbonisation technologies and other solutions for their industrial processes and activities, as well as the decarbonisation of energy supply, promotion of energy efficiency, the uptake of renewable and clean energy solutions, the development of energy system flexibility, the uptake of lead markets for clean products , the development, resilience, integration and digitalisation of the energy and transport infrastructures and systems, boosting smart mobility and sustainable alternative fuels, as well as boosting the sustainable blue economy, the development of innovative nature-based business models and demand side solutions for clean and decarbonised buildings, transport and industry, and production ramp up contributing to Europe’s strategic autonomy.(a) For support to Clean Transition and Industrial Decarbonisation, the specific objectives of support to decarbonisation of European industry, including SMEs; energy communities and energy intensive industries, clean tech manufacturing and its supply chains, including cross-sector deployment, and contributing to the shift towards a sustainable, circular, energy-, water- and resource-efficient, climate-neutral and resilient economy. This includes the uptake by industries, businesses and households of decarbonisation technologies and other solutions for their industrial processes and other demand-side activities, as well as the decarbonisation of energy supply, promotion of energy efficiency, the uptake of zero and low carbon, renewable and clean energy solutions, the development of energy system flexibility, the uptake of lead markets for clean products , the development, resilience, integration and digitalisation of the energy and transport infrastructures and systems, boosting demand for clean technologies through collective solutions such as energy communities, boosting smart mobility and sustainable alternative fuels, as well as boosting the sustainable blue economy, the development of innovative nature-based business models and demand side solutions for clean and decarbonised buildings, transport and industry, and production ramp up contributing to Europe’s strategic autonomy.

Amendment 53

Proposal for a regulation

Article 3 – paragraph 2 – point b – point 4

Text proposed by the CommissionAmendment
(4) For support to the agriculture and food security, the specific objective of fostering the competitiveness, sustainability, and resilience of the agriculture, fisheries and aquaculture, forestry and rural and coastal areas and their role in the transition to a climate-neutral climate-resilient, water-smart, nature-positive economy and the protection of natural resources biodiversity while contributing to long term food security in the Union.(4) For support to the agriculture and food security, the specific objective of fostering the competitiveness, sustainability, and resilience of the agriculture, fisheries and aquaculture, forestry and rural and coastal areas and their role in the transition to a climate-neutral climate-resilient, water-smart, nature-positive economy and the protection of natural resources biodiversity and to contribute to long term food security in the Union.

Amendment 54

Proposal for a regulation

Article 3 – paragraph 2 – point c

Text proposed by the CommissionAmendment
(c) For support to Digital Leadership policy, the specific objectives of fostering innovation and competitiveness of digital sector for a competitive and secure Union and bringing its benefits to citizens and society, public administrations and businesses across the Union. This shall include, but not be limited to, supporting the entire digital value- and supply-chains and activities including support to start-ups, scale-ups and SMEs, in particular along the following dimensions: Achieving leadership in digital and AI technologies, including through technology transfer and innovation, and through cutting-edge infrastructures such as AI-powered digital twins; Achieving technological sovereignty by building resilient digital ecosystems and ensuring a high-level of cybersecurity in the Union; Enabling the power of digital for businesses and citizens by deploying advanced digital applications and services, infrastructures, capacities and capabilities and by reinforcing interoperability across the Union, Including support to digitalisation of companies, including SMEs, small mid-cap companies, start-ups and scale-ups; Supporting the digital transformation and interoperability of public and private sectors through the rapid uptake of AI, the wallet technologies, such as EU Digital Identity Wallets and trust services established pursuant to Regulation (EU) No 910/2014 and the forthcoming European Business Wallets and other digital innovative solutions. Support to cultural and creative industries, complementing the AgoraEU programme.(c) For support to Digital Leadership and Skills policy, the specific objectives of fostering innovation and competitiveness of digital sector for a competitive and secure Union and bringing its benefits to citizens and society, public administrations and businesses across the Union, while contributes to the twin transition. This shall include, but not be limited to, supporting the entire digital value- and supply-chains and activities including support to start-ups, scale-ups and SMEs, as well as cooperation with education, training and research organisations, in particular along the following dimensions: Achieving leadership in digital and AI technologies, including through technology transfer and innovation, and through cutting-edge infrastructures such as AI-powered digital twins; Achieving technological sovereignty by building resilient digital ecosystems and ensuring a high-level of cybersecurity in the Union; Enabling the power of digital for businesses and citizens by deploying advanced digital applications and services, infrastructures, capacities and capabilities and by reinforcing interoperability across the Union, Including support to digitalisation of companies, including SMEs, small mid-cap companies, start-ups and scale-ups; Supporting the digital transformation and interoperability of public and private sectors through the rapid uptake of AI, the wallet technologies, such as EU Digital Identity Wallets and trust services established pursuant to Regulation (EU) No 910/2014 and the forthcoming European Business Wallets and other digital innovative solutions. Actions supported under this window may be implemented in synergy with other Union programmes, in particular those supporting education, training, skills and talent development. Support to cultural and creative industries, complementing the AgoraEU programme.

Amendment 55

Proposal for a regulation

Article 4 – paragraph 1

Text proposed by the CommissionAmendment
1. The indicative financial envelope for the implementation of the ECF for the period from 1 January 2028 to 31 December 2034 shall be EUR 234 300 000 000 in current prices.1. The minimum financial envelope for the implementation of the ECF for the period from 1 January 2028 to 31 December 2034 shall be EUR [amount from the MFF interim report] in current prices.

Amendment 56

Proposal for a regulation

Article 4 – paragraph 2 – introductory part

Text proposed by the CommissionAmendment
2. The indicative distribution of the amount referred to in paragraph 1 shall be as follows:2. The minimum distribution of the amount referred to in paragraph 1 shall be as follows:

Amendment 57

Proposal for a regulation

Article 4 – paragraph 2 – point a

Text proposed by the CommissionAmendment
(a) EUR 11 000 000 000 for activities contributing to the general objectives referred to Article 3, as implemented in particular through cross-cutting activities such as non-thematic support of the ECF InvestEU Instrument, referred to in Chapter II, Section 2; Project Advisory, SME Collaboration, skills development and Access to Funding, referred to in Chapter III;(a) EUR 12 410 800 000 for activities contributing to the general objectives referred to Article 3(1), as implemented in particular through cross-cutting activities such as non-thematic support of the ECF InvestEU Instrument, referred to in Chapter II, Section 2;

Amendment 58

Proposal for a regulation

Article 4 – paragraph 2 – point a a (new)

Text proposed by the CommissionAmendment
(aa) EUR [25% of the total budget for ECF set in the MFF interim report minus the amount set aside for Article (4)2(a)] for the specific objectives referred to in Article 3(2), point (a -1), as contribution of at least 25% of the financial envelope of each policy windows, to be implemented via the ECF InvestEU Instrument; 20% of this amount should be devote to start-ups;

Amendment 59

Proposal for a regulation

Article 4 – paragraph 2 – point b

Text proposed by the CommissionAmendment
(b) EUR 26 210 000 000 for the specific objectives referred to in Article 3(2), point (a);(b) [proportion of the total budget for ECF set in the MFF interim report, minus the amount set aside for Article (4)2(a), in line with the proportion of the Commission proposal] for the specific objectives referred to in Article 3(2), point (a);

Amendment 60

Proposal for a regulation

Article 4 – paragraph 2 – point c

Text proposed by the CommissionAmendment
(c) EUR 20 393 000 000 for the specific objectives referred to in Article 3(2), point (b);(c) EUR [proportion of the total budget for ECF set in the MFF interim report, minus the amount set aside for Article (4)2(a), in line with the proportion of the Commission proposal] for the specific objectives referred to in Article 3(2), point (b);

Amendment 61

Proposal for a regulation

Article 4 – paragraph 2 – point d

Text proposed by the CommissionAmendment
(d) EUR 51 493 000 000 for the specific objectives referred to in Article 3(2), point (c);(d) [proportion of the total budget for ECF set in the MFF interim report, minus the amount set aside for Article (4)2(a), in line with the proportion of the Commission proposal] for the specific objectives referred to in Article 3(2), point (c);

Amendment 62

Proposal for a regulation

Article 4 – paragraph 2 – point e

Text proposed by the CommissionAmendment
(e) EUR 125 204 000 000 for the specific objectives referred to in Article 3(2), point (d);(e) EUR [proportion of the total budget for ECF set in the MFF interim report, minus the amount set aside for Article (4)2(a), in line with the proportion of the Commission proposal] for the specific objectives referred to in Article 3(2), point (d);

Amendment 63

Proposal for a regulation

Article 4 – paragraph 2 a (new)

Text proposed by the CommissionAmendment
2a. Where appropriate, the Commission may depart from the amounts referred to in paragraph 2 by up to 15 % for each objective referred to in points (a -1) to (d) of Article 3(2). The Commission shall inform the European Parliament and the Council of any such departure.

Amendment 64

Proposal for a regulation

Article 4 – paragraph 5

Text proposed by the CommissionAmendment
5. The financial envelope referred to in paragraph 1 of this Article and the additional resources referred to in Article 5 may also be used for technical and administrative assistance for the implementation of the ECF, such as preparatory, monitoring, control, audit and evaluation activities, corporate information technology systems and platforms, information and communication activities, including corporate communication on the political priorities of the Union, and all other technical and administrative assistance or staff-related expenses incurred by the Commission for the management of the ECF.5. The financial envelope referred to in paragraph 1 of this Article and the additional resources referred to in Article 5 may also be used for technical and administrative assistance for the implementation of the ECF, such as preparatory, monitoring, control, audit and evaluation activities, corporate information technology systems and platforms, information and communication activities, including corporate communication on the political priorities of the Union, and all other technical and administrative assistance or staff-related expenses incurred by the Commission and implementing partners for the management of the ECF.

Amendment 65

Proposal for a regulation

Article 5 – paragraph 1

Text proposed by the CommissionAmendment
1. Member States, Union institutions, bodies and agencies, third countries, international organisations, international financial institutions, or other third parties, may make additional financial or non-financial contributions available to the ECF, or any of its specific activities or objectives referred to in Article 3(2), including specific contributions to the ECF InvestEU Instrument budgetary guarantee and financial instruments as referred to in Article 21. Additional financial contributions shall constitute external assigned revenue within the meaning of Article 21(2), points (a), (d), or (e) or Article 21(5) of Regulation (EU, Euratom) 2024/2509.1. Member States, Union institutions, regional and local authorities, bodies and agencies, third countries, international organisations, international financial institutions, or other third parties, may make additional financial or non-financial contributions available to the ECF, or any of its specific activities or objectives referred to in Article 3(2), including specific contributions to the ECF InvestEU Instrument budgetary guarantee and financial instruments as referred to in Article 21 or to the Project Advisory referred to in Article 25a. Additional financial contributions shall constitute external assigned revenue within the meaning of Article 21(2), points (a), (d), or (e) or Article 21(5) of Regulation (EU, Euratom) 2024/2509.

Amendment 66

Proposal for a regulation

Article 5 – paragraph 2

Text proposed by the CommissionAmendment
2. Resources allocated to Member States under shared management may, at their request, in accordance Article X of Regulation (EU) [XXX][NRPF regulation], be made available to the ECF. The Commission shall implement those resources directly or indirectly in accordance with Article 62(1), point (a) or (c) of Regulation, (EU, Euratom) 2024/2509. They shall be additional to the amount referred to in Article 4. Those resources shall be used for the benefit of the Member State concerned. Where the Commission has not entered into a legal commitment under direct or indirect management for additional amounts thus made available to the ECF, the corresponding uncommitted amounts may, at the request of the Member State concerned, be transferred back to one or more respective chapters of the Plan or their successors.2. Resources allocated to Member States under shared management may, at their request, in accordance Article [X] of Regulation (EU) [XXX][NRPF regulation], be made available to the ECF. The Commission shall implement those resources directly or indirectly in accordance with Article 62(1), point (a) or (c) of Regulation, (EU, Euratom) 2024/2509. They shall be additional to the amount referred to in Article 4 and respect the Rule of Law conditionality, the conditionality of the Charter of Fundamental Rights of the European Union and state aid rules. Those resources shall be used for the benefit of the Member State concerned. Where the Commission has not entered into a legal commitment under direct or indirect management for additional amounts thus made available to the ECF, the corresponding uncommitted amounts may, at the request of the Member State concerned, be transferred back to one or more respective chapters of the Plan or their successors.

Amendment 67

Proposal for a regulation

Article 5 – paragraph 4

Text proposed by the CommissionAmendment
4. [From 1 January 2028 / programme start date], by way of derogation from the first, second and fourth subparagraphs of Article 212(3) of Regulation (EU, Euratom) 2024/2509, revenue, repayments and recoveries from financial instruments funded from this Regulation, its predecessor, and those referred to in Annex IV of Regulation (EU) 2021/523 shall be used to provide Union support under the ECF. By way of derogation from point (f) of Article 21(3) and in accordance with Article 21(5) of Regulation (EU, Euratom) 2024/2509, these resources shall constitute external assigned revenue to the ECF.4. [From 1 January 2028 / programme start date], by way of derogation from the first, second and fourth subparagraphs of Article 212(3) of Regulation (EU, Euratom) 2024/2509, revenue, repayments and recoveries from financial instruments funded from this Regulation, its predecessor, and those referred to in Annex IV of Regulation (EU) 2021/523 shall be used to provide Union support under the ECF InvestEU Instrument. By way of derogation from point (f) of Article 21(3) and in accordance with Article 21(5) of Regulation (EU, Euratom) 2024/2509, these resources shall constitute external assigned revenue to the ECF InvestEU Instrument.

Amendment 68

Proposal for a regulation

Article 5 – paragraph 5

Text proposed by the CommissionAmendment
5. [From 1 January 2028 / programme start date], by way of derogation from point (a) of Article 216(4) of Regulation (EU, Euratom) 2024/2509, any surplus of provisions for the budgetary guarantees established by Regulations (EU) 2015/1017[2] and (EU) 2021/523[3] may be used to provide Union support under the ECF. These resources shall constitute external assigned revenue within the meaning of Article 21(5) of Regulation 2024/2509 to the ECF.5. [From 1 January 2028 / programme start date], by way of derogation from point (a) of Article 216(4) of Regulation (EU, Euratom) 2024/2509, any surplus of provisions for the budgetary guarantees established by Regulations (EU) 2015/1017[2] and (EU) 2021/523[3] shall be used to provide Union support under the ECF InvestEU Instrument. These resources shall constitute external assigned revenue within the meaning of Article 21(5) of Regulation 2024/2509 to the ECF InvestEU Instrument.

Amendment 69

Proposal for a regulation

Article 5 – paragraph 5 a (new)

Text proposed by the CommissionAmendment
5a. Funds from the EU Facility established under Regulation [XXXX/XXXX] (NRPPs) may be committed to the ECF to be spent on support to actions under Article 21c “Housing and Social Investments” through the ECF InvestEU Instrument. The budget provided for in Article 4 of this Regulation shall not be used to finance or support these actions.

Amendment 70

Proposal for a regulation

Article 5 a (new)

Text proposed by the CommissionAmendment
Article 5a
Competitiveness across Europe
1. The Commission shall ensure supportive measures, including administrative support, for first-time applicants and less experienced applicants.
2. The Commission shall develop robust monitoring systems, for example, to track the geographical distribution of funding across regions, including the creation of a European Competitiveness Scoreboard and an ECF Dashboard identifying innovation and competitiveness performance across regions and Member states.
3. Where applicable, award criteria shall be laid down in the work programmes referred to in Article 15, taking into account, to the extent possible, the following elements:
(a) an assessment of the expected results of the proposals and their impact on achieving the objectives set out in Article 3, with particular attention to SMEs, start-ups and to regions lagging behind in competitiveness and innovation performance;
(b) the ability of the proposals to support specific activities under Chapters III, IV, V, VI and VII, Sections 1, 3 and 4, taking into account the nature of the activities, ensuring pan-Union coverage and the participation of partners from peripheral regions of the Union, in particular from less developed, transition, insular and outermost regions;
(c) in the case of collaborative actions and consortia, the participation of partners from less developed and transition regions, including peripheral Member States, insular and outermost regions, and the establishment of research or production activities in those regions, with a view to promoting Union value chains and ensuring a balanced territorial impact of the ECF;
(d) the ability of the proposal to disseminate technology and knowledge across Member States.
4. The work programme shall lay down rules for dealing with proposals of equal merit (ex aequo), including weighting factors relating to geographical diversity and the participation of partners from less developed innovation and competitiveness regions as tie-breaking elements.
5. Complementary measures shall be put in place by the Commission:
(a) Targeted technical assistance for first-time and less experienced applicants to which access should be facilitated by the contact points referred to in article 25a, paragraph 7.
(b) support the integration of entities from different Member States into Single Market value chains, as referred to in Article 16, including by promoting the multinational composition of consortia and participation across the value chain.
6. The measures referred to in paragraph 3 and 6 may be financed by the ECF.
7. During the mid term review, where significant concentration is identified, the Commission shall trigger appropriate supportive measures.

Amendment 71

Proposal for a regulation

Article 7 – paragraph 1

Text proposed by the CommissionAmendment
1. The Commission shall ensure the consistent implementation of the European Competitiveness Fund, the Framework Programme for Research and Innovation and the Innovation Fund.1. The Commission and Competitiveness Coordination Tool established under Article 13 b shall ensure the consistent implementation of the European Competitiveness Fund, the Framework Programme for Research and Innovation and the Innovation Fund.

Amendment 72

Proposal for a regulation

Article 7 – paragraph 2

Text proposed by the CommissionAmendment
2. The Commission and Member States shall, in a manner commensurate to their respective responsibilities, facilitate coordination and coherence between European Competitiveness Fund and national and regional partnership plans on common competitiveness priorities in selected key areas and projects deemed of strategic importance and of common European interest.2. The Commission and Member States shall, in a manner commensurate to their respective responsibilities, facilitate coordination and coherence between European Competitiveness Fund and national and regional partnership plans on common competitiveness priorities in selected key areas and projects deemed of strategic importance and of common European interest. Coordination with the national and regional partnership plans should also be implemented via contributions to the ECF InvestEU Member State compartment to develop Union financial instruments that bridge the financing gaps in the investment journey of national strategic technologies and projects, and to facilitate access to Union finance to SMEs and households for the uptake of strategic technologies and solutions to deliver the Union policy objectives.

Amendment 73

Proposal for a regulation

Article 7 – paragraph 3

Text proposed by the CommissionAmendment
3. The ECF will be implemented in synergy with other Union funds, including the Global Europe Fund, in particular to support global competitiveness, ensure diversified supply sources, and strengthen export potential and opportunities of European companies.3. The ECF shall be implemented in synergy with other Union funds, including the Global Europe Fund and the Connecting Europe Facility, in particular to support global competitiveness, sustainable value chains, ensure diversified supply sources, and strengthen export potential and opportunities of European companies.

Amendment 74

Proposal for a regulation

Article 8 – paragraph 1 a (new)

Text proposed by the CommissionAmendment
1a. The award of the Competitiveness Seal shall be based on objective, transparent and predefined criteria, including the project’s demonstrable contribution to European added value and fair competition.

Amendment 75

Proposal for a regulation

Article 8 – paragraph 4

Text proposed by the CommissionAmendment
4. Strategic projects under CRMA, NZIA, CMA and other strategic projects identified in Union legislation that fulfil the conditions in paragraph 1, will be directly granted the Competitiveness Seal.4. Strategic projects under CRMA, NZIA, CMA, Chips Act and IPCEIs or other strategic projects identified in Union legislation that fulfil the conditions in paragraph 1, points (a) and (b), shall be will be directly granted the Competitiveness Seal.

Amendment 76

Proposal for a regulation

Article 8 – paragraph 4 a (new)

Text proposed by the CommissionAmendment
4a. The Commission shall ensure transparency of the award of the Competitiveness Seal, including publication of the list of awarded actions and the applicable assessment criteria.

Amendment 77

Proposal for a regulation

Article 8 – paragraph 4 b (new)

Text proposed by the CommissionAmendment
4b. The Competitiveness Seal should contribute to reducing innovation and investment gaps between regions, including by facilitating access to funding for SMEs and projects located in island, less-developed or transition regions.

Amendment 78

Proposal for a regulation

Article 10 – paragraph 1

Text proposed by the CommissionAmendment
1. The ECF support shall target development manufacturing and exploitation in the Union of strategic technologies and sectors, in line with Union law and international commitments. The award procedures may apply any of the conditions set out in paragraph 2 to protect Union’s strategic and economic security interests, as well as security and critical assets and the services they provide.1. The ECF support shall target development manufacturing and exploitation in the Union of strategic technologies and sectors, in line with Union law and international commitments. The award procedures may apply any of the conditions set out in paragraph 2, in line with the Strategic Priorities Framework pursuant to Article 13b, to protect Union’s strategic and economic security interests, as well as security and critical assets and the services they provide.

Amendment 79

Proposal for a regulation

Article 10 – paragraph 2 – introductory part

Text proposed by the CommissionAmendment
2. The work programme, the investment guidelines or the documents related to the award procedure may set out eligibility conditions to ensure the competitiveness of the Union, including protection of economic interests and autonomy of the Union where necessary and appropriate, including through preferential conditions such as restrictions or incentives for Union entities, while limiting distortion of the single market. Those eligibility conditions may take the form of:2. The work programme, the investment guidelines or the documents related to the award procedure shall set out eligibility conditions to ensure the competitiveness of the Union, including protection of economic interests and autonomy of the Union where necessary and appropriate, including through preferential conditions such as restrictions or incentives for Union entities, while limiting distortion of the single market. Those eligibility conditions may take the form of:

Amendment 80

Proposal for a regulation

Article 10 – paragraph 2 – point a

Text proposed by the CommissionAmendment
(a) participation and performance restrictions requiring participating entities to be established, use facilities, or perform activities in the Member States, and where appropriate other eligible countries. The work programme or the documents related to the award procedure may set out further details on the application of these participation and performance restrictions;(a) participation and performance restrictions requiring participating entities to be established, use facilities, or perform activities in the Member States, and where appropriate other eligible countries. The work programme or the documents related to the award procedure may set out further details on the application of these participation and performance restrictions. Where feasible, application shall build on existing provisions in Union legislation

Amendment 81

Proposal for a regulation

Article 12 – paragraph 1

Text proposed by the CommissionAmendment
1. The ECF is to be implemented through work programmes in accordance with Article 110 of Regulation (EU, Euratom) 2024/2509.deleted

Amendment 82

Proposal for a regulation

Article 12 – paragraph 2

Text proposed by the CommissionAmendment
2. The ECF shall be implemented in accordance with Regulation (EU, Euratom) 2024/2509, under direct management or under indirect management with entities referred to in Article 62(1), point (c) of that Regulation.2. The ECF shall be implemented in accordance with Regulation (EU, Euratom) 2024/2509, under direct management or under indirect management with pillar-assessed entities referred to in Article 62(1), point (c) of that Regulation, in a manner that ensure simplification of procedures, in particular reporting requirements and application processes for calls, in order to enhance accessibility for all beneficiaries and end recipients, including smaller actors and less experienced applicants.

Amendment 83

Proposal for a regulation

Article 12 – paragraph 4 a (new)

Text proposed by the CommissionAmendment
4a. The Commission shall implement the ECF, including equity and venture capital instruments, on basis of a regular analysis of programme implementation, participation trends and access barriers, including relevant programme management data and network analytics. On that basis, the Commission shall re-assess and take measures to ensure broad geographical and sectorial participation.
To that effect, the Commission shall in particular:
(a) establish minimum indicative thresholds, based on objective and transparent criteria, for the allocation of funding to start-ups and first-time applicants under certain calls or instruments of the ECF;
(b) support the integration of entities from different Member States into Single Market value chains, as referred in Article 16, including through promoting multinational composition of consortia or in the value chain;
(c) create a geographical scoreboard for projects funded by ECF, which should be duly updated every year.
The Commission shall regularly involve Member States and the European Parliament in the design and monitoring of those measures.

Amendment 84

Proposal for a regulation

Article 12 – paragraph 9

Text proposed by the CommissionAmendment
9. In accordance with Article 153(3) of Regulation (EU, Euratom) 2024/2509, for actions implementing research and innovation activities, the evaluation committee may be composed partially or fully of independent external experts.9. In accordance with Article 153(3) of Regulation (EU, Euratom) 2024/2509, for actions implementing research and innovation activities, the evaluation committee shall be composed of independent external experts.

Amendment 85

Proposal for a regulation

Article 12 – paragraph 11 a (new)

Text proposed by the CommissionAmendment
11a. Where necessary to achieve the objectives set out in Article 3, parts of the ECF may be implemented through Multi-Country Projects, including those established in accordance with Decision (EU) 2022/2481.

Amendment 86

Proposal for a regulation

Chapter I – Section 2 a (new)

Text proposed by the CommissionAmendment
Section 2a
Governance

Amendment 87

Proposal for a regulation

Article 13 a (new)

Text proposed by the CommissionAmendment
Article 13a
Governance
1. The governance structure established by the ECF shall be designed in the most effective manner, avoiding overly burdensome structures, to ensure that Union funds are only used to the extent that is strictly necessary, minimizing administrative burden for both Union companies and Union institutions and ensuring that the majority of funds are directed to financing companies and projects. It should feature transparent selection procedures and ensure a diversified membership, balanced across sectors, organisation types and in terms of size, expertise, gender, age, and geographical distribution.
2. A permanent dialogue mechanism is established between the European Parliament relevant committees, the Commission, the Strategic Stakeholders Board established under Article 14 and the Investment Committee established under Article 14a.

Amendment 88

Proposal for a regulation

Article 13 b (new)

Text proposed by the CommissionAmendment
Article 13b
Competitiveness Coordination Tool
1. To ensure coordination in an effective, efficient and timely manner, a Competitiveness Coordination Tool is established.
2. The Competitiveness Coordination Tool shall serve as a steering mechanism for the ECF and shall be composed of:
(a) an Executive Director;
(b) twelve full-time members appointed as Vice Directors;
(c) one representative appointed by each Member State as an observer;
(d) seven Members of the European Parliament appointed as observers.
3. The Executive Director and the Vice Directors of the Competitiveness Coordination Tool shall be appointed by the Commission in an open, transparent and merit-based selection procedure and approved by the European Parliament. Their term shall be non-renewable and limited to three and a half years. The Executive Directors and the Vice Directors shall be selected from among eminent experts of different nationalities with recognised experience in the field of industrial policy and economics. The selection procedure shall ensure a high level of competence and independence and shall respect the principle of gender balance, experience and qualifications.
4. The Commission shall nominate European programme architects (‘architects’) for each policy intervention field as defined by the Competitiveness Coordination Tool in paragraph 6, point (e), who shall set out actions pursuant to Article 15(1) on the basis of the ‘Strategic Priorities Framework’ referred to in paragraph 6, point (e). The architects shall coordinate closely with the EIC programme managers as set out in Article 16 of Regulation (EU) XXX [Horizon Europe] to ensure synergies and scalability of programmes.
5. Architects shall be supported by a CCT Technical Advisory, which is a Commission technical support that can help develop intervention fields and measures. The CCT Technical Advisory shall offer comprehensive analysis and monitoring of the effectiveness of measures and shall evaluate and rank measures according to objective criteria. It shall help continuously improve programmes by offering internal and external academic analysis. The CCT Technical Advisory shall also consult the Stakeholders Board and Advisory Board referred to in Article 14.
6. The Competitiveness Coordination Tool shall serve as a structured governance and coordination mechanism to:
(a) identify and prioritise common Union competitiveness challenges and strategic dependencies on the basis of the European Semester for economic and fiscal policy coordination within the Union;
(b) align Union-level funding, national reforms, and investment efforts around shared competitiveness objectives identified through transparent and evidence-based methodology;
(c) support the design, implementation, and monitoring of the coordinated reform and investment pathways linked to the ECF;
(d) identify possible synergies with National and Regional Partnership Plans;
(e) adopt and regularly update a ‘Strategic Priorities Framework’ setting out the overall strategic orientation and priorities of the interventions supported by the ECF, including by identifying areas where Union-level funding can deliver European added value, including by enabling cross-border and multi-country projects of common European interest, with a view to support innovation, industrialisation, deployment and resilience. The Strategic Priorities Framework shall be presented to the European Parliament and the European Council and shall be made public as soon as it is adopted or updated.
7. The Competitiveness Coordination Tool shall operate through a regular coordination cycle, including strategic dialogues, analytical assessments, and implementation reviews, involving the Commission, the Member States, and relevant Union bodies.
8. The European Parliament shall be closely involved in the functioning of the Competitiveness Coordination Tool. To this end:
(a) the European Parliament’s resolutions shall constitute a reference framework for the definition and periodic revision of the strategic priorities adopted under the Competitiveness Coordination Tool;
(b) the Commission shall regularly inform the European Parliament of the priorities, activities, and outcomes of the Competitiveness Coordination Tool, including through structured dialogues with the competent parliamentary committees;
(c) the Commission shall transmit in a timely manner to the European Parliament analytical reports, implementation assessments, and any strategic guidance produced under the Competitiveness Coordination Tool.
9. The Commission shall ensure coherence between the implementation of the Competitiveness Coordination Tool and the positions, priorities, and requests expressed by the European Parliament pursuant to paragraph 8, point (a). Where the Commission decides not to follow, in whole or in part, such positions, priorities, or requests, it shall duly justify its decision in writing, including an explanation of the legal, economic, or operational reasons for the divergence. Such justification shall be presented to the European Parliament in the context of the structured dialogues referred to in paragraph 8, point (b), and shall be reflected in the annual report referred to in paragraph 10.
10. The Commission shall report annually to the European Parliament and the Council on the functioning of the Competitiveness Coordination Tool, including its contribution to policy coherence, investment effectiveness, and the achievement of Union competitiveness objectives, and on how the European Parliament’s positions have been taken into account.
11. The detailed modalities for the organisation and operation of the Competitiveness Coordination Tool, including stakeholder involvement and transparency arrangements, shall be laid down by the Commission in accordance with this Regulation. The CCT shall hold regular dialogues, analytical assessments and implementation reviews, involving relevant Commission services, Member States, the European Parliament, Union bodies and industry, expert and civil society organisations.
12. A Competitiveness across Europe Coordination Committee shall be established for matters concerning the specific objectives set out in Article 3(1), point (ka), and Article 5a. This Committee shall bring together representatives of the European Parliament, the Council and the European Commission and shall regularly assess whether the objectives and measures laid down in Article 3(1), point (ka), and Article 5a are being fulfilled.

Amendment 89

Proposal for a regulation

Article 13 c (new)

Text proposed by the CommissionAmendment
Article 13c
Transparency and European Competitiveness Dialogue
1. The Commission shall ensure full, timely and transparent implementation of this Regulation. To that end, any information, documents or report relating to the ECF, including those transmitted to the Council or any of its preparatory bodies, shall be transmitted simultaneously and on equal terms to the European Parliament. The Commission shall also make those documents publicly available without undue delay in accordance with applicable confidentiality rules and the protection of Union interests.
2. The Commission shall provide the European Parliament and the Council with an annual report on the implementation of the ECF. That report shall include, in particular:
(a) progress made in the establishment, allocation and implementation of the ECF;
(b) detailed information on disbursements, including the number of supported projects and, where appropriate, information on individual projects financed;
(c) an overview of the Commission’s preliminary assessment of the implementation of the Strategic Priorities Framework and progress towards the general and specific objectives set out in Article 3.
3. The Commission shall regularly, proactively and in a timely manner inform the European Parliament on all aspects of the implementation of the ECF. This shall include, in particular, information on new disbursements, project selection, the use and provisioning of the budgetary guarantee, and the financing and performance of financial instruments.
4. In order to enhance transparency, accountability and structured interinstitutional engagement, an European Competitiveness Dialogue between the European Parliament and the Commission shall be established. The European Parliament shall invite the Commission at least twice per year to discuss:
(a) the state of implementation of the ECF, including the ECF InvestEU instrument, and progress towards the achievement of strategic objectives and performance indicators;
(b) work programmes, implementation arrangements, including, where applicable, Member State compartments and compliance with eligibility, award criteria and applicable quotas;
(c) financial execution, risk assessments, budgetary impacts and the leverage effect achieved;
(d) the identification and assessment of market failures or sub-optimal investment situations addressed, including evidence of financing gaps and risk profiles justifying Union intervention;
(e) compliance with the principle of additionality, including the extent to which operations supported mobilise private capital and would not have been carried out, or would not have been carried out to the same extent or under the same conditions, without Union support;
(f) the main findings of monitoring, evaluation, audit and review reports related to the implementation of the ECF;
(g) any other relevant information relating to the implementation of the ECF.
5. The European Parliament may express its views on the matters referred to in paragraph 4, including through resolutions. The Commission shall duly take into account those views and shall provide reasoned feedback on how they have been followed up.
6. The European Competitiveness Dialogue shall be without prejudice to the European Parliament’s powers of scrutiny and budgetary control as laid down in the Treaties.

Amendment 90

Proposal for a regulation

Article 14 – title

Text proposed by the CommissionAmendment
Governance and Advisory BoardsStrategic Stakeholders Board

Amendment 91

Proposal for a regulation

Article 14 – paragraph 2

Text proposed by the CommissionAmendment
2. The members of the ECF Strategic Stakeholders Board shall be appointed by the Commission, following an open call for nominations or for expressions of interest, or both, whichever the Commission finds more appropriate, and taking into account the need for balance in sector, organisation type, including private investors, and size, expertise, gender, age and geographical distribution. The term of members the Board shall be limited to four years, renewable once. Members of the Board should act with integrity and probity.2. The EIB Group shall have two permanent representatives in the ECF Strategic Stakeholders Board. The other members of the ECF Strategic Stakeholders Board shall be appointed by the Commission, following a transparent process and an open call for nominations or for expressions of interest, or both, whichever the Commission finds more appropriate, and taking into account the need for balance in sector, organisation type, including academics, civil society, private investors, social economy actors, and size, expertise, gender, age and geographical distribution. At least one member permanently represents SMEs at Union level. The term of members the ECF Strategic Stakeholders Board shall be limited to four years, renewable once. Members of the ECF Strategic Stakeholders Board shall act with integrity and probity, perform their duties impartially and in the sole interest of the ECF and they shall not seek or take instructions from any public or private body. They shall be remunerated by the Union.

Amendment 92

Proposal for a regulation

Article 14 – paragraph 2 a (new)

Text proposed by the CommissionAmendment
2a. The ECF Strategic Stakeholders Board shall elect a chairperson from among its members and it shall be assisted by a secretariat, administratively located in the Commission.

Amendment 93

Proposal for a regulation

Article 14 – paragraph 3

Text proposed by the CommissionAmendment
3. The Commission shall establish the detailed rules on selection and composition, remuneration, rules of procedure, conflicts of interest and confidentiality for the ECF Stakeholder Board. Members of the Board shall be bound by these terms.3. The Commission shall establish the detailed rules on selection and composition, remuneration, rules of procedure, conflicts of interest and confidentiality for the ECF Strategic Stakeholders Board. Members of the ECF Strategic Stakeholders Board shall be bound by these terms. Those rules shall include robust provisions on transparency, including the publication of members' declarations of interests.

Amendment 94

Proposal for a regulation

Article 14 – paragraph 4

Text proposed by the CommissionAmendment
4. The ECF Strategic Stakeholder Board, informed by an observatory on emerging technologies, shall advise on the overall direction for the ECF, advise on long-term competitiveness trends, advise on areas of market failures and suboptimal investment situations that could be addressed in the implementation of the ECF, and advise on the identification of strategic portfolios of projects within and across activities of the ECF, for which it may be composed in different policy-oriented configurations.4. The ECF Strategic Stakeholders Board, informed by an observatory on emerging technologies, and market developments, shall advise on the overall direction for the ECF, advise on long-term competitiveness trends, advise on areas of market failures and suboptimal investment situations that could be addressed in the implementation of the ECF, and advise on the identification of strategic portfolios of projects, critical technologies and industrial priorities ensuring balanced representation of industry, including SMEs and financial market actors.

Amendment 95

Proposal for a regulation

Article 14 – paragraph 4 a (new)

Text proposed by the CommissionAmendment
4a. The European Parliament shall be regularly informed by the Commission of the activities of the ECF Strategic Stakeholders Board and shall receive all advice prepared by the ECF Strategic Stakeholders Board in a timely manner.

Amendment 96

Proposal for a regulation

Article 14 – paragraph 5

Text proposed by the CommissionAmendment
5. An independent Investment Committee shall be established under the ECF InvestEU Instrument (the ‘Investment Committee’).deleted

Amendment 97

Proposal for a regulation

Article 14 – paragraph 6

Text proposed by the CommissionAmendment
6. The composition of the Investment Committee shall ensure that it has a wide knowledge of the sectors covered by the ECF and a wide knowledge of the geographic markets in the Union, and shall ensure that the Investment Committee as a whole is gender-balanced.deleted

Amendment 98

Proposal for a regulation

Article 14 – paragraph 7

Text proposed by the CommissionAmendment
7. The Investment Committee shall examine the proposals for financing and investment operations submitted by implementing partners for coverage under the Union guarantee and verify the compliance with the applicable rules of the proposals for financing under the ECF InvestEU Instrument.deleted

Amendment 99

Proposal for a regulation

Article 14 – paragraph 8

Text proposed by the CommissionAmendment
8. The Advisory Board on ECF InvestEU Instrument shall be composed of one representative of each implementing partner and one representative of each Member State. the Advisory Board on ECF InvestEU Instrument shall, provide advice on the design of financial products and on the strategic and operational direction in its area of competence. It shall also provide advice on the coordination with the EIC to ensure complementarity with other Union funding or private investments. The Advisory Board shall be chaired by a representative of the Commission.deleted

Amendment 100

Proposal for a regulation

Article 14 – paragraph 9

Text proposed by the CommissionAmendment
9. The Commission shall establish the detailed rules on selection and composition, remuneration, rules of procedure, conflicts of interest and confidentiality for the Investment Committee and the Advisory Board on ECF InvestEU Instrument.deleted

Amendment 101

Proposal for a regulation

Article 14 – paragraph 10

Text proposed by the CommissionAmendment
10. The Commission and Implementing partners shall establish regular Policy Review Dialogues to discuss progress with the implementation of the financial products and engage on relevant policy developments.deleted

Amendment 102

Proposal for a regulation

Article 14 – paragraph 11

Text proposed by the CommissionAmendment
11. The Commission shall ensure that stakeholders are consulted in the development of the work programmes, with the creation of one or several thematic platforms per window.deleted

Amendment 103

Proposal for a regulation

Article 14 a (new)

Text proposed by the CommissionAmendment
Article 14a
Investment Committee
1. A fully independent Investment Committee shall be established under the ECF InvestEU Instrument (the ‘Investment Committee’).
2. The Investment Committee shall meet in five different configurations, corresponding to the four policy windows and the SME chapter referred to in Article 1(2).
3. Each configuration of the Investment Committee shall be composed of six remunerated external experts. The experts shall be selected following an open call for nominations or for expressions of interest, or both, whichever the Commission finds more appropriate, and shall be appointed by the Commission. The experts shall be appointed for a term of up to four years, renewable once. Members of the Investment Committee shall act with integrity and probity, perform their duties impartially and in the sole interest of the ECF and they shall not seek or take instructions from any public or private body. They shall be remunerated by the Union.
4. The composition of the Investment Committee shall ensure that it has wide knowledge of the policy windows referred to in Article 1(2), point (c), including market experience in project structuring and financing, or financing of SMEs or corporates, and wide knowledge of the geographic markets in the Union, and shall ensure that the Investment Committee as a whole is gender-balanced.
5. Four members of the Investment Committee shall be permanent members in each of the four configurations of the Investment Committee. The Investment Committee shall elect a chairperson from among its permanent members, and it shall be assisted by a secretariat, administratively located in the Commission.
6. The Investment Committee shall examine the proposals for financing and investment operations submitted by implementing partners for coverage under the Union guarantee and verify the compliance with the applicable rules of the proposals for financing under the ECF InvestEU Instrument.
7. Conclusions of the Investment Committee shall be adopted by simple majority of all members, provided that such simple majority includes at least one of the non-permanent members of the configuration relating to the policy window under which the proposal is made. In the event of a draw, the chair of the Investment Committee shall have the casting vote.
8. The Commission shall establish detailed rules on the selection and composition, remuneration, rules of procedure, conflicts of interest and confidentiality of the Investment Committee. Members of the Committee shall be bound by these rules.
9. The European Parliament shall be regularly informed by the Commission of the activities of the Investment Committee and shall receive all conclusions prepared by the Investment Committee in a timely manner.

Amendment 104

Proposal for a regulation

Article 14 b (new)

Text proposed by the CommissionAmendment
Article 14b
Advisory Board on the ECF InvestEU Instrument
1. The Commission and the Competitiveness Coordination Tool established pursuant to Article 13a shall be advised by an advisory board (the ‘Advisory Board’).
2. The Advisory Board on the ECF InvestEU Instrument shall strive to ensure gender balance and shall be composed of:
(a) one representative of each implementing partner;
(b) one non-voting representative of each Member State;
(c) one non-voting expert appointed by the European Parliament;
(d) one non-voting expert appointed by the European Economic and Social Committee;
(e) one non-voting expert appointed by the Committee of the Regions.
3. The experts shall be appointed for a term of up to four years, renewable once, perform their duties impartially and with full independence and in the sole interest of the ECF and they shall not seek or take instructions from any public or private body. They shall be remunerated by the Union.
4. The Advisory Board shall be chaired by a representative of the Commission. The representative of the EIB Group shall be the vice-chair.
5. The Advisory Board shall meet regularly at least twice a year at the request of the Chairperson. It shall be assisted by a secretariat, administratively located in the Commission.
6. The Advisory Board on the ECF InvestEU Instrument shall:
(a) provide advice to the Commission and the Competitiveness Coordination Tool on the design of financial products and on other strategic and operational matters concerning the implementation of the ECF InvestEU Instrument, including by adopting the risk methodological framework to be developed by the Commission in cooperation with the EIB and other implementing partners and the rules applicable to the operations of investment platforms. The adoption of the risk methodological framework and all other decisions concerning the design of financial products and other strategic and operational matters concerning the implementation of the ECF InvestEU Instrument shall be subject to the vote of a Steering Committee of the Advisory Board, consisting of one representative of the Commission, one representative of the EIB and two representatives of the implementing partners other than EIB;
(b) provide advice to the Commission and the Competitiveness Coordination Tool on market developments, market conditions, market failures, suboptimal investment situations and best practices;
(c) oversee the implementation of the ECF;
(d) provide advice to the Commission and the Competitiveness Coordination Tool on the coordination with the EIC to ensure complementarity with other Union funding or private investments;
(e) be consulted on the shortlist of candidates for the Investment Committee before their selection in accordance with Article 14a, reflecting the views of all its member;
(f) consult and exchange views with the Thematic Platforms and duly take into account the views of the Thematic Platforms in forming its advice with respect to points (a) and (b).
7. The Advisory Board on the ECF InvestEU Instrument shall use a consensual approach in its discussions, therefore taking the utmost possible account of the positions of all its members. If the members cannot converge in their positions, decisions of the Advisory Board on the ECF InvestEU Instrument are taken by qualified majority of its voting members, consisting of at least seven votes. Detailed minutes of the meetings of the Advisory Board shall be made public as soon as possible after they have been approved by the Advisory Board.
8. The Commission shall establish detailed rules on the remuneration of experts, procedure, conflicts of interest and confidentiality of the Advisory Board on the ECF InvestEU Instrument. Members of the Board shall be bound by these rules.
9. The European Parliament shall be regularly informed by the Commission of the activities of the Advisory Board and shall receive all advice prepared by the Advisory Board in a timely manner.
10. The Commission and the implementing partners shall establish regular Policy Review Dialogues to discuss progress in the implementation of the financial products and engage on relevant policy developments.
11. The implementing partners and institutions represented in the Advisory Board shall select from among themselves the representatives of the implementing partners other than the EIB Group in the Strategic Stakeholders Board established pursuant to Article 14, with the aim of ensuring a balanced representation in terms of size and geographical location. The representatives selected shall represent the agreed common position of all implementing partners other than the EIB Group.

Amendment 105

Proposal for a regulation

Article 14 c (new)

Text proposed by the CommissionAmendment
Article 14c
Scoreboard
1. A scoreboard of indicators (the ‘Scoreboard’) shall be established to ensure that the Investment Committee is able to carry out an independent, transparent and harmonised assessment of requests for the use of the Union guarantee for financing and investment operations proposed by the implementing partners.
2. The implementing partners shall fill out the Scoreboard for their proposals for financing and investment operations.
3. The Scoreboard shall cover the following elements:
(a) a description of the proposed financing or investment operation;
(b) how the proposed financing or investment operation contributes to Union policy objectives;
(c) a description of additionality;
(d) a description of the market failure or suboptimal investment situation;
(e) the financial and technical contribution by the implementing partner;
(f) the impact of the investment;
(g) the financial profile of the financing or investment operation;
(h) complementary indicators.
4. The Commission is empowered to adopt delegated acts in accordance with Article 84 in order to supplement this Regulation by establishing additional elements of the Scoreboard, including detailed rules for the Scoreboard to be used by the implementing partners.

Amendment 106

Proposal for a regulation

Article 14 d (new)

Text proposed by the CommissionAmendment
Article 14d
Policy check
1. The Commission shall verify that the financing and investment operations proposed by the implementing partners other than the EIB comply with Union law and policies.
2. EIB financing and investment operations that fall within the scope of this Regulation shall not be covered by the Union guarantee where the Commission delivers an unfavourable opinion in accordance with Article 19 of the EIB Statute.

Amendment 107

Proposal for a regulation

Article 14 e (new)

Text proposed by the CommissionAmendment
Article 14e
Window thematic platforms
1. The Commission shall ensure that stakeholders are consulted in the development of the work programmes, with the creation of one or several thematic platforms per window.
2. In each thematic platform established under the policy windows referred to in Article 3(2) at least one representative of SMEs shall participate as a full member.

Amendment 108

Proposal for a regulation

Article 15 – paragraph 1 – subparagraph -1 (new)

Text proposed by the CommissionAmendment
The ECF shall be implemented through multiannual work programmes in accordance with Article 110 of Regulation (EU, Euratom) 2024/2509.

Amendment 109

Proposal for a regulation

Article 15 – paragraph 1 – introductory part

Text proposed by the CommissionAmendment
1. The work programmes may set out:1. The multiannual work programmes shall set out:

Amendment 110

Proposal for a regulation

Article 15 – paragraph 1 – point a

Text proposed by the CommissionAmendment
(a) actions and associated budget from ECF as well as actions set out in the specific dedicated part of the work programmes indicated in paragraph 2;(a) actions and associated budget from ECF, including funding allocated to the ECF InvestEU Instrument, as well as actions set out in the specific dedicated part of the work programmes indicated in paragraph 2, following a transparent, evidence-based, and priorly defined methodology grounded in assessments of competitiveness and strategic importance, investment gaps across the value chain of strategic technologies, from innovation, to production, and deployment, to identify and prioritise actions and budget needs;

Amendment 111

Proposal for a regulation

Article 15 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) instruments and form of funding;(b) instruments and form of funding guaranteeing financial efficiency;

Amendment 112

Proposal for a regulation

Article 15 – paragraph 1 – point h

Text proposed by the CommissionAmendment
(h) actions which benefit from the mechanisms set out in Article 20;(h) actions which benefit from the mechanisms set out in Article 20 in order to foster flexibility, responsiveness and the optimization of Europe's potential in addressing emerging needs and opportunities;

Amendment 113

Proposal for a regulation

Article 15 – paragraph 1 – point h a (new)

Text proposed by the CommissionAmendment
(ha) cross-border projects that bring European added value;

Amendment 114

Proposal for a regulation

Article 15 – paragraph 1 a (new)

Text proposed by the CommissionAmendment
1a. Each work programme shall include a dedicated chapter to describe how the work programme supports SMEs, including start-ups, and specify any dedicated SME actions or calls, such as bonus systems encouraging SME participation, and how they will be implemented.

Amendment 115

Proposal for a regulation

Article 15 – paragraph 3

Text proposed by the CommissionAmendment
3. The Commission shall, by means of implementing acts, adopt the work programmes implementing the specific objectives referred to in Article 3(2), points (a), (b), (c) and (d) and for the horizontal activities in Chapter III. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 83(2).3. The Commission shall adopt the work programmes by means of delegated acts. Those delegated acts shall be adopted in accordance with the procedure referred to in Article 84. The work programmes shall be drawn up jointly with the thematic platforms and in line with the results of the Competitiveness Coordination Tool.

Amendment 116

Proposal for a regulation

Article 15 – paragraph 4

Text proposed by the CommissionAmendment
4. The Commission shall, by means of implementing acts, adopt the work programmes implementing the specific objectives referred to in Article 3(2), point (d) (2), (3) and (4). Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 83(3).deleted

Amendment 117

Proposal for a regulation

Article 16 – paragraph 1

Text proposed by the CommissionAmendment
1. In order to foster resilient Union value chains, the work programmes may include dedicated value-chains scale up calls which shall support both project preparation and crowding in of additional public and private capital to integrate suppliers, manufacturers, and innovators from different Member States and diversify sources of supply.1. In order to foster resilient Union value chains, the work programmes may include dedicated value-chains scale up calls which shall support both project preparation and crowding in of additional public and private capital to integrate suppliers, manufacturers, end-users and innovators from different Member States and diversify sources of supply and demand.

Amendment 118

Proposal for a regulation

Article 17 – paragraph 1

Text proposed by the CommissionAmendment
1. The work programmes may include dedicated two-stage bottom-up award procedures to identify and support Union Tech frontrunners through industry-driven consortia leveraging on their role as innovation and export drivers to strengthen their global competitive position along with their European SME suppliers through investments in new solutions and identification of relevant partners. Project preparation as well as crowding in of additional public and private capital may be supported.1. The work programmes may include dedicated two-stage bottom-up award procedures to identify and support Union Tech frontrunners through industry-driven consortia leveraging on their role as innovation and export drivers to strengthen their global competitive position along with their European SME suppliers through investments in new solutions and identification of relevant partners. SMEs with high potential shall be actively promoted into partnerships to unlock their full potential and enhance the EU’s competitive added value. Project preparation as well as crowding in of additional public and private capital may be supported.

Amendment 119

Proposal for a regulation

Article 19 – paragraph 1 – introductory part

Text proposed by the CommissionAmendment
1. The ECF may support:1. Under all policy windows, the ECF may support:

Amendment 120

Proposal for a regulation

Article 19 – paragraph 1 – point b a (new)

Text proposed by the CommissionAmendment
(ba) participation of SMEs and start-ups in an IPCEI.

Amendment 121

Proposal for a regulation

Article 20 – paragraph 3

Text proposed by the CommissionAmendment
3. In accordance with paragraph 1, for actions which require the planning, construction and operation of facilities funded under award procedures the work programme may determine that, depending on the nature of the action, it is of public interest and may be of imperative reason of overriding public interest within the meaning of Article 6(4) and Article 16(1), point (c), of Council Directive 92/43/EEC and Article 4(7) of Directive 2000/60/EC of the European Parliament and of the Council , in the interest of defence within the meaning of Article 2(3) of Regulation (EC) No 1907/2006 of the European Parliament and of the Council , and in the interests of public health and safety within the meaning of Article 9(1), point (a) of Directive 2009/147/EC of the European Parliament and of the Council, in accordance with and under the conditions set out in applicable legislation such as the Net Zero Industry Act Regulation 2024/1735, RED III (Directive 2023/2413), or the Defence Readiness Omnibus (COM(2022)349) provided that the remaining other conditions set out in these provisions are fulfilled.3. In accordance with paragraph 1, for actions which require the planning, construction and operation of facilities funded under award procedures the work programme may determine that, depending on the nature of the action, it is of public interest and may be of imperative reason of overriding public interest within the meaning of Article 6(4) and Article 16(1), point (c), of Council Directive 92/43/EEC and Article 4(7) of Directive 2000/60/EC of the European Parliament and of the Council , in the interest of defence within the meaning of Article 2(3) of Regulation (EC) No 1907/2006 of the European Parliament and of the Council , and in the interests of public health and safety within the meaning of Article 9(1), point (a) of Directive 2009/147/EC of the European Parliament and of the Council, in accordance with and under the conditions set out in applicable legislation such as the Net Zero Industry Act Regulation 2024/1735, Chips Act Regulation (EU) 2023/1781, RED III (Directive 2023/2413), or the Defence Readiness Omnibus (COM(2022)349) provided that the remaining other conditions set out in these provisions are fulfilled.

Amendment 122

Proposal for a regulation

Article 21 – paragraph 3

Text proposed by the CommissionAmendment
3. The maximum amount of the budgetary guarantee under the EU Compartment of the ECF InvestEU Instrument shall be EUR 70 000 000 000 in current prices. It shall be provisioned at the rate of 50 %.3. The maximum amount of the budgetary guarantee under the EU Compartment of the ECF InvestEU Instrument shall be EUR 120 000 000 000 in current prices. It shall be provisioned at the rate of 50 %.

Amendment 123

Proposal for a regulation

Article 21 – paragraph 4

Text proposed by the CommissionAmendment
4. The minimum amount of the Union support from ECF delivered through ECF InvestEU Instrument shall be EUR 17 000 000 000, to be used in support of the general and specific objectives set out in Article 3. This minimum amount shall be increased by the contributions from the work programmes set out in Article 15. The contributions shall be a favoured means of implementation under the ECF and used for provisioning of the budgetary guarantee or financing of the financial instruments.4. The minimum amount of the Union support from ECF delivered through ECF InvestEU Instrument shall be EUR 69 000 000 000, to be used in support of the general objectives and the specific activities set out in each policy windows. This minimum amount shall be increased by the contributions from the work programmes set out in Article 15. The contributions shall be a favoured means of implementation under the ECF spent on implementing the specific activities of the policy window or section concerned, and used for provisioning of the budgetary guarantee or financing of the financial instruments.

Amendment 124

Proposal for a regulation

Article 21 – paragraph 5

Text proposed by the CommissionAmendment
5. The investment guidelines set out by the Commission shall define in more detail the scope of intervention in support of the general and specific objectives set out in Article 3. The investment guidelines shall be prepared in close dialogue with the potential implementing partners.5. The Commission is empowered to adopt delegated acts in accordance with Article 84 in order to supplement this Regulation by defining the Investment Guidelines for each of the policy windows. The Investment Guidelines shall define in more detail the scope of intervention implementing the specific activities set out in each policy windows. The investment guidelines shall be prepared in line with the priorities of the Competitiveness Coordination Tool and in close dialogue with the EIB Group and other potential implementing partners, taking into account the advice of the Strategic Stakeholders Board, the Investment Committee and the Advisory Board on ECF InvestEU Instrument. The Commission shall make the information on the application and interpretation of the Investment Guidelines available to the implementing partners, the Strategic Stakeholders Board, the Investment Committee and the Advisory Board on ECF InvestEU Instrument.

Amendment 125

Proposal for a regulation

Article 21 – paragraph 7 a (new)

Text proposed by the CommissionAmendment
7a. Article 212 (2) (c) of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union does not apply to the ECF InvestEU Instrument

Amendment 126

Proposal for a regulation

Article 21 a (new)

Text proposed by the CommissionAmendment
Article 21a
Combination of portfolios
Support from the budgetary guarantee and financial instruments under this Regulation, Union support provided through the financial instruments established by the programmes in the programming period 2021-2027 and Union support from the Union guarantee established by Regulation (EU) 2021/523 may be combined in financial products to be implemented by implementing partners under this Regulation.

Amendment 127

Proposal for a regulation

Article 21 b (new)

Text proposed by the CommissionAmendment
Article 21b
Eligible financing and investment operations
The ECF InvestEU Instrument shall only support financing and investment operations that comply with the conditions set out in points (a) to (e) of Article 212(2) of the Financial Regulation, in particular regarding market failures, suboptimal investment situations and additionality as set out in points (a) and (b) of Article 212(2) of the Financial Regulation and in Annex I to this Regulation and, where appropriate, maximising private investment in accordance with point(d) of Article 212(2) of the Financial Regulation.

Amendment 128

Proposal for a regulation

Article 21 c (new)

Text proposed by the CommissionAmendment
Article 21c
Housing and Social Investments
The ECF InvestEU instrument may support the following activities using funds from the EU Facility established under Regulation [XXXX/XXXX] (NRPPs): Support to social investments, which comprises microfinance, social enterprise finance, social economy and measures to promote gender equality, skills, education, training and related services, social infrastructure, including health and educational infrastructure and social and student housing, social innovation, health and long-term care, inclusion and accessibility, cultural and creative activities with a social goal, and the integration of vulnerable people, including third country nationals.

Amendment 129

Proposal for a regulation

Article 22

Text proposed by the CommissionAmendment
Article 22deleted
Support to scaleups and startups
1. The ECF InvestEU Instrument shall serve as the Union’s integrated platform for delivering targeted financial support to companies across all development phases start-ups, scale-ups, including those actively pursuing manufacturing, industrial and market deployment. It shall ensure that high-potential European companies developing or deploying innovative solutions can access the capital and resources to grow in the Union, thus strengthening the integration of the Single market and the Savings and Investment Union.
2. The Commission shall in particular develop a Scale-up facility in cooperation with the EIB Group, other international financial institutions and National Promotional Banks. The facility shall provide in a coordinated and consistent manner, a comprehensive set of financing tools tailored to the unique needs of scale-ups, including indirect and direct equity and quasi-equity, venture debt, loans, guarantees and blended finance, with a view to attract private investors in supporting scale up financing and facilitate exit options. The facility shall target SMEs and small mid-cap companies and Mid-cap companies.
3. The facility shall intervene where market investors cannot provide sufficient financing for European high-growth, innovative and strategic companies, including if needed to protect the Union's strategic assets, interests, autonomy or economic security.
4. It will leverage public investment to catalyse substantial private and institutional capital flows, such as from private equity funds, corporates, pension funds, insurance companies, and other long-term investors, thus deepening Europe’s capital markets and fostering sustainable growth of scale-up companies.

Amendment 130

Proposal for a regulation

Article 23 – title

Text proposed by the CommissionAmendment
Exclusivity clauseExclusivity clause and privileged option

Amendment 131

Proposal for a regulation

Article 23 – paragraph 2 a (new)

Text proposed by the CommissionAmendment
2a. With a view to maximising the leverage effect and the economical additionality of Union public funding and increasing the impact of the European Competitiveness Fund, support under the European Competitiveness Fund shall, wherever appropriate, prioritise the ECF InvestEU Instrument in order to mobilise private financing. The Commission shall report annually to the European Parliament on the use of the implementation of this option.

Amendment 132

Proposal for a regulation

Article 24 – paragraph 1 a (new)

Text proposed by the CommissionAmendment
1a. In line with the results of the Competitiveness Coordination Tool, those compartments shall be mobilised as follows:
(a) the EU compartment shall address any of the following situations:
(i) market failures or suboptimal investment situations related to Union policy priorities;
(ii) Union-wide or Member State specific market failures or suboptimal investment situations; or
(iii) market failures or suboptimal investment situations, which require the development of innovative financial solutions and market structures, in particular new or complex market failures or suboptimal investment situations;
(b) the Member State compartment shall address specific market failures or suboptimal investment situations in one or several regions or Member States to deliver the policy objectives of the additional amount provided by a Member State under Article 5(1) and (2), in particular to strengthen economic, social and territorial cohesion in the Union by addressing imbalances between its regions.

Amendment 133

Proposal for a regulation

Article 24 – paragraph 1 b (new)

Text proposed by the CommissionAmendment
1b. Where appropriate, the compartments referred to in paragraph 1 shall be used in a complementary manner to support a given financing or investment operation, including by combining support from both compartments.

Amendment 134

Proposal for a regulation

Article 25 – paragraph 1

Text proposed by the CommissionAmendment
1. The ECF InvestEU Instrument will be implemented by partners in an open architecture model, including the European Investment Bank (EIB) Group, international financial institutions, the national promotional banks and institutions.1. The ECF InvestEU Instrument will be implemented by partners in an open architecture model, international financial institutions, the national promotional banks and institutions, while acknowledging the existing special role of the EIB Group and allowing for participation of new partners to broaden geographic coverage and SME access to funding.

Amendment 135

Proposal for a regulation

Article 25 – paragraph 2

Text proposed by the CommissionAmendment
2. By way of derogation from Article 211(5) of Regulation (EU, Euratom) 2024/2509, and subject to Article 12 of this Regulation, the implementation of a budgetary guarantee or financial instrument, including when combined with non-repayable support in a blending operation, may be entrusted to any entity referred to in Article 62(1), first subparagraph, point (c), of Regulation (EU, Euratom) 2024/2509.2. By way of derogation from Article 211(5) of Regulation (EU, Euratom) 2024/2509, and subject to Article 12 of this Regulation, the implementation of a budgetary guarantee or financial instrument, including when combined with non-repayable support in a blending operation, may be entrusted to any pillar-assessed entity referred to in Article 62(1), first subparagraph, point (c), of Regulation (EU, Euratom) 2024/2509, where 75 % of the budgetary guarantee under the EU Compartment of the ECF InvestEU Instrument referred to in Article 21 of this Regulation shall be granted to the EIB Group.

Amendment 136

Proposal for a regulation

Article 25 – paragraph 2 a (new)

Text proposed by the CommissionAmendment
2a. Best efforts shall be made to ensure that, at the end of the investment period, a wide range of sectors and regions are covered and excessive sectoral or geographical concentration is avoided. Those efforts shall include incentives for smaller or less sophisticated national promotional banks and institutions that have a comparative advantage due to their local presence, knowledge and investment competencies. The Commission shall develop a coherent approach to support those efforts.

Amendment 137

Proposal for a regulation

Article 25 – paragraph 3

Text proposed by the CommissionAmendment
3. In addition to entities referred to in Article 62(1), first subparagraph, point (c), and Article 211(5) of Regulation (EU Euratom) 2024/2029, bodies established in a Member State, governed by the private law of a Member State or Union law may also be exceptionally entrusted, following a positive pillar assessment, with the implementation of a budgetary guarantee or financial instrument, including when combined with non-repayable support in a blending operation, to the extent that such bodies are provided with adequate financial guarantees which may be, for each action, limited to the maximum amount of the Union support. Those bodies governed by private law shall be selected with due account to the nature of the financial instrument or budgetary guarantee to be implemented, the experience and the financial and operational capacity, and their rules and procedures for verifying the economic viability of projects of final recipients. The selection shall be transparent, justified on objective grounds and shall not give rise to a conflict of interests.3. In addition to entities referred to in Article 62(1), first subparagraph, point (c), and Article 211(5) of Regulation (EU Euratom) 2024/2029, bodies established in a Member State, governed by the private law of a Member State or Union law may in exceptional cases and, provided they fulfil a positive pillar assessment, be able to implement budgetary guarantee or financial instrument, including when combined with non-repayable support in a blending operation, to the extent that such bodies’ investments are fully aligned with the Union’s economic, social, environmental, and innovation objectives and to the extent that those bodies are provided with adequate financial guarantees which may be, for each action, limited to the maximum amount of the Union support. Those bodies governed by private law shall be selected with due account to the nature of the financial instrument or budgetary guarantee to be implemented, the experience and the financial and operational capacity, and their rules and procedures for verifying the economic viability of projects of final recipients. The selection shall be transparent, justified on objective grounds and shall not give rise to a conflict of interests.

Amendment 138

Proposal for a regulation

Article 25 – paragraph 3 a (new)

Text proposed by the CommissionAmendment
3a. Implementing partners under EU Regulation (EU) 2021/523 shall not be required to enter into a new guarantee agreement under the ECF InvestEU Instrument, but may implement the ECF InvestEU Instrument based on the guarantee agreements under EU Regulation (EU) 2021/523, which may be amended to extend their application under this Regulation.

Amendment 139

Proposal for a regulation

Article 25 – paragraph 3 b (new)

Text proposed by the CommissionAmendment
3b. Without prejudice to the timely selection for new implementing partners, the Commission may rely on and reuse in full or in part the agreements with implementing partners concluded under Regulation (EU) 2021/523, and on assessments made by itself or other entities in the context of agreements under that Regulation.

Amendment 140

Proposal for a regulation

Article 25 – paragraph 3 c (new)

Text proposed by the CommissionAmendment
3c. Member States shall ensure that implementing partners are easily identifiable and reachable by companies, particularly SMEs.

Amendment 141

Proposal for a regulation

Chapter II – Section 2 a (new)

Text proposed by the CommissionAmendment
Section 2a
Project Advisory

Amendment 142

Proposal for a regulation

Article 25 a (new)

Text proposed by the CommissionAmendment
Article 25a
Project Advisory
1. The Project Advisory shall be made available for repayable and non-repayable instruments. Actions and activities supported under this chapter shall contribute to the general objectives set out in Article 3(1) and shall support and complement, where relevant, activities under the other chapters.
2. A centralised access to advisory and business acceleration services shall be provided, which may include:
(a) investment advisory services, including market development activities and advisory support for the identification, preparation, development, structuring, procuring and implementation of investment projects, and for enhancing the capacity of project promoters and financial intermediaries to implement financing and investment operations and improve the understanding and use of financial instruments to exploit their full potential. Such support may cover any stage of the life cycle of a project or financing of a supported entity;
(b) business coaching and acceleration services targeting potential ECF beneficiaries and other project promoters, including SMEs and mid-cap companies, start-ups and scale-ups, supporting and facilitating their access to ECF funding and financing, and facilitating matchmaking with private investors and promoting financial literacy of entrepreneurs, including understanding of the opportunities offered by capital market based financing.
3. Project advisory shall, among others, support the generation of project pipelines and the development of potential investment projects under the ECF InvestEU Instrument and contribute to their further development. Project advisory shall also cooperate with industrial alliances and European clusters. Project advisory shall be available under each policy window referred, covering sectors under that window. In addition, advisory support may cover cross-cutting actions.
4. The Commission shall conclude an advisory agreement with the EIB Group for 75% of the budget allocated to the Project Advisory and it may conclude advisory agreements with advisory partners and service providers in line with the needs of each policy windows. The Commission and the advisory partners shall cooperate closely with a view to ensuring efficiency, synergies and effective geographic coverage across the Union, while taking account of existing structures and work.
5. Irrespective of the instrument of budget implementation for the acquisition or provision of advisory services, providers and recipients of the services shall be selected in accordance with the principles of transparency and equal treatment, avoidance of conflict of interest, including conflicting professional interests.
6. When implementing the Project Advisory, the Commission, its advisory partners and other service providers shall, when appropriate, collaborate with other Union or national public or private advisory and support service providers, including the EU for Business Network.
7. Each Member State shall appoint at least one national contact point to facilitate access to Project Advisory, in particular for start-ups and first time applicants. Member States may decide to establish also one or more sub-national contact points. When implementing the Project Advisory, the Commission, its advisory partners and other service providers shall collaborate with the national and subnational contact points established by each Member State, ensuring the timely and effective sharing of relevant information.
8. 30% of the budget allocated to the Project Advisory should be used to implement actions targeted to start-ups and first time applicants.

Amendment 143

Proposal for a regulation

Chapter II – Section 2 b (new)

Text proposed by the CommissionAmendment
Section 2b
Beneficiary service desk

Amendment 144

Proposal for a regulation

Article 25 b (new)

Text proposed by the CommissionAmendment
Article 25b
Access to Union funding
1. In accordance with Article 150 of Regulation (EU, Euratom) 2024/2509, the ECF shall contribute to the maintenance and extension of the single electronic data interchange area for participants to ensure simplified access to Union funding. That contribution shall be irrespective of the mode or instrument of budget implementation and including advisory and business acceleration services and support to a single gateway for access to Union support.
2. The ECF may support any additional activities to facilitate and accelerate access to Union funding, and other funding, financing and investments, as well as to ensure valorisation and uptake of results through tools and instruments such as proof of concept, deployment grants, advisory and business support services, and any dedicated platform.
3. Member States or implementing partners may develop a user-friendly interface to provide technical support in navigating the application process for Union funds and offer knowledge-building courses.

Amendment 145

Proposal for a regulation

Chapter III – title

Text proposed by the CommissionAmendment
Project Advisory, SME Collaboration, skills development and Access to FundingSME Collaboration and skills development

Amendment 146

Proposal for a regulation

Article 25 c (new)

Text proposed by the CommissionAmendment
Article 25c
Subject matter
1. Actions supported under this chapter shall contribute to the general objectives set out in Article 3(1) and the specific objectives set out in Article 3(2), point (a -1).
2. Support for actions under this chapter shall be financed from the budget set out in Article 4 and any additional contributions assigned in accordance with Article 5.
3. 30% of the budget allocated to this policy windows should be used to implement actions in support of start-ups and first time applicants.

Amendment 147

Proposal for a regulation

Chapter III – Section 1 – title

Text proposed by the CommissionAmendment
Project AdvisorySupport to scale-ups and startups

Amendment 148

Proposal for a regulation

Article 25 d (new)

Text proposed by the CommissionAmendment
Article 25d
Support to scale-ups and startups
1. The ECF InvestEU Instrument shall serve as the Union’s integrated platform for delivering targeted financial support to companies across all development phases start-ups, scale-ups, including those actively pursuing manufacturing, industrial and market deployment. It shall ensure that high-potential European companies developing or deploying innovative solutions can access technical support to navigate the application process for funding, and to obtain capital and resources to grow in the Union, thus strengthening the integration of the Single market and the Savings and Investment Union.
2. The Commission shall in particular develop a Scale-up facility in cooperation with the EIB Group, other international financial institutions and National Promotional Banks. The facility shall provide in a coordinated and consistent manner, a comprehensive set of financing tools tailored to the unique needs of start ups and scale-ups, including indirect and direct equity and quasi-equity, venture debt, loans, guarantees and blended finance, with a view to attract private investors in supporting scale up financing and facilitate exit options. The facility shall target SMEs and start-up.
3. The facility shall intervene where market investors do not provide sufficient financing for European high-growth, innovative and strategic companies, including if needed to protect the Union's strategic assets, interests, autonomy or economic security.
4. It will leverage public investment to catalyse substantial private and institutional capital flows, such as from private equity funds, corporates, pension funds, insurance companies, and other long-term investors, thus deepening Europe’s capital markets and fostering sustainable growth of start-up and scale-up companies.
5. The ECF shall work in coordination with, and where possible build on, other similar national and European initiatives, such as the European Tech Champions Initiative and the Scaleup Europe Fund.
6. The ECF InvestEU Project Advisory shall pool also resources to advise and help scale-ups managing their scale-up and exit strategies in Europe.

Amendment 149

Proposal for a regulation

Article 26

Text proposed by the CommissionAmendment
1. The Project Advisory shall be made available for repayable and non-repayable instruments. Actions and activities supported under this chapter shall contribute to the general objectives set out in Article 3(1) and shall support and complement, where relevant, activities under the other chapters.deleted
2. A centralised access to advisory and business acceleration services shall be provided, which may include:
(a) investment advisory services, including market development activities and advisory support for the identification, preparation, development, structuring, procuring and implementation of investment projects, and for enhancing the capacity of project promoters and financial intermediaries to implement financing and investment operations and improve the understanding and use of financial instruments to exploit their full potential. Such support may cover any stage of the life cycle of a project or financing of a supported entity;
(b) business coaching and acceleration services targeting potential ECF beneficiaries and other project promoters, including SMEs and mid-cap companies, start-ups and scale-ups, supporting and facilitating their access to ECF funding and financing, and facilitating matchmaking with private investors and promoting financial literacy of entrepreneurs, including understanding of the opportunities offered by capital market based financing;
(c) project advisory shall, among others, support the generation of project pipelines and the development of potential investment projects under the ECF InvestEU Instrument and contribute to their further development. Project advisory shall also cooperate with industrial alliances and European clusters. Project advisory shall be available under each policy window referred, covering sectors under that window. In addition, advisory support may cover general objectives and cross-cutting actions;
3. pProject advisory shall, among others, support the generation of project pipelines and the development of potential investment projects under the ECF InvestEU Instrument and contribute to their further development. Project advisory shall also cooperate with industrial alliances and European clusters. Project advisory shall be available under each policy window referred, covering sectors under that window. In addition, advisory support may cover cross-cutting actions.
4. The Commission may conclude advisory agreements with advisory partners and service providers in line with the needs of each policy windows. The Commission and the advisory partners, including the EIB Group, shall cooperate closely with a view to ensuring efficiency, synergies and effective geographic coverage across the Union, while taking account of existing structures and work.
5. Irrespective of the instrument of budget implementation for the acquisition or provision of advisory services, providers and recipients of the services shall be selected in accordance with the principles of transparency and equal treatment, avoidance of conflict of interest, including conflicting professional interests.
6. When implementing the Project Advisory, the Commission, its advisory partners and other service providers shall, when appropriate, collaborate with other Union or national public or private advisory and support service providers, including the EU for Business Network.

Amendment 150

Proposal for a regulation

Chapter III – Section 2 – title

Text proposed by the CommissionAmendment
SME collaborationSME collaboration and Skills

Amendment 151

Proposal for a regulation

Article 27 – paragraph 1

Text proposed by the CommissionAmendment
1. “EU for Business” Network shall be established to help Union businesses become more competitive and innovate, grow and scale in the Single Market and beyond, with a particular emphasis on SMEs, startups, scaleups and small mid-cap companies. The network shall have a Union-wide and geographically balanced coverage, taking into account the specificities of all types of regions in the Union, including the less developed regions and the Union outermost regions.1. The “EU for Business” Network shall build upon and optimise the existing Enterprise Europe Network (EEN), ensuring continuity, simplification and the establishment of a single, coherent one-stop-shop for SMEs, startups, scale-ups, small mid-cap and mid-cap companies across the Union. The network shall avoid duplication of existing advisory structures and shall prioritise the strengthening and streamlining of existing EEN capacities. The Commission shall ensure that the EU for Business Network operates as a single-entry point for SMEs seeking advisory support, access to Union funding, and market intelligence.

Amendment 152

Proposal for a regulation

Article 28 – paragraph 1 – introductory part

Text proposed by the CommissionAmendment
1. The ECF shall conduct cross-cutting activities focused on strengthening the competitiveness of the SMEs and achieve additionality at Union level, including through the following measures:1. The ECF shall conduct cross-cutting activities focused on strengthening the competitiveness of the SMEs across Europe and achieve additionality at Union level, including through the following measures:

Amendment 153

Proposal for a regulation

Article 28 – paragraph 1 – point c

Text proposed by the CommissionAmendment
(c) support and assistance for access to technologies, technology infrastructure and facilities, support market uptake of innovation and support business organisations, SMEs and small mid-cap companies, including startups and scaleups, to participate in collaborative platforms and sectors;(c) support and assistance for access to technologies, technology infrastructure and facilities, support market uptake of innovation and support business organisations, SMEs, including startups and scaleups, to participate in collaborative platforms and sectors;

Amendment 154

Proposal for a regulation

Article 28 – paragraph 1 – point e

Text proposed by the CommissionAmendment
(e) increasing the access and the availability of finance for SMEs including micro-finance and support to social enterprises, and for small mid-cap companies;(e) increasing the access and the availability of finance for SMEs including micro-finance and support to social enterprises, including by empowering small and medium retail banks to provide financial instruments to SMEs and social enterprises;

Amendment 155

Proposal for a regulation

Article 28 – paragraph 1 – point f

Text proposed by the CommissionAmendment
(f) facilitation access to markets including through support to the internationalisation of SMEs and provision of market intelligence, including in less developed regions and outermost regions;(f) facilitation access to markets including through support to the internationalisation of SMEs and provision of market intelligence, including in less developed regions, transition regions, insular and outermost Member States and regions;

Amendment 156

Proposal for a regulation

Article 29 – paragraph 1

Text proposed by the CommissionAmendment
1. Each window shall support dedicated, sector-specific actions targeting start-ups, SMEs and small mid-cap companies or calls for SMEs in strategic sectors with a view to fostering innovation, business acceleration, commercialisation and scaling-up.1. Each window shall support dedicated, sector-specific actions targeting start-ups, SMEs or calls for SMEs in strategic sectors with a view to fostering innovation, business acceleration, commercialisation and scaling-up.

Amendment 157

Proposal for a regulation

Article 29 – paragraph 1 a (new)

Text proposed by the CommissionAmendment
1a. At least 20% of the total financial allocation under each policy window shall be dedicated to actions reserved exclusively for SMEs as defined in Commission Recommendation 2003/361/EC. Where the share of funding awarded to SMEs, including start-ups under a given policy window falls below 20% in a given two-years period, the Commission shall launch targeted SME-specific calls under that window to ensure the achievement of this minimum participation threshold.

Amendment 158

Proposal for a regulation

Article 29 – paragraph 1 b (new)

Text proposed by the CommissionAmendment
1b. SMEs (including start-ups) reserved calls shall be implemented through simplified, open and proportionate procedures, minimising administrative burden, enabling participation via consortia and ensuring accessibility for first-time applicants.

Amendment 159

Proposal for a regulation

Article 29 – paragraph 1 c (new)

Text proposed by the CommissionAmendment
1c. Support under the ECF for SMEs shall take the form of financial and non-financial support, particularly including technical assistance in the form of expertise, know-how, guidance, or knowledge-building courses. This support shall help SMEs develop the necessary skills to grow and succeed.

Amendment 160

Proposal for a regulation

Article 29 – paragraph 1 d (new)

Text proposed by the CommissionAmendment
1d. Eligibility criteria shall ensure that SME-reserved funding is not accessible to mid-cap undertakings.

Amendment 161

Proposal for a regulation

Article 29 – paragraph 1 e (new)

Text proposed by the CommissionAmendment
1e. The Commission shall set a publicly available dashboard tracking Union funded projects and reporting the number and nature of beneficiaries, as well as their geographical distribution.

Amendment 162

Proposal for a regulation

Article 30 – paragraph 1

Text proposed by the CommissionAmendment
1. The ECF shall finance activities in support of skills development, in particular in the strategic sectors, building strong links between higher education, vocational education and training providers, applied research and businesses for an agile, innovative and competitive economy. This shall include support for a European Skills Guarantee to support value chain transitions in favour of strategic growth sectors or occupations across the labour market through upskilling and reskilling of the workforce and Vocational Education and Training (VET) partnerships to strengthen cooperation between VET providers and businesses, especially SMEs and connecting them with regional industrial ecosystems.1. The ECF shall finance activities in support of skills development, in particular in the strategic sectors, building strong links between higher education, vocational education and training providers, applied research and businesses for an agile, innovative, sustainable and competitive economy. This shall include support for a European Skills Guarantee to support value chain transitions in favour of strategic growth sectors or occupations across the labour market through upskilling and reskilling of the workforce and Vocational Education and Training (VET) partnerships to strengthen cooperation between VET providers and businesses, especially SMEs and connecting them with regional industrial ecosystems, promoting balanced access and enhancing competitiveness across all Member States, regions and the Union as a whole.

Amendment 163

Proposal for a regulation

Chapter III – Section 3

Text proposed by the CommissionAmendment
Section 3deleted
Beneficiary service desk
Article 31
Access to Union funding
1. In accordance with Article 150 of Regulation (EU, Euratom) 2024/2509, the ECF shall contribute to the maintenance and extension of the single electronic data interchange area for participants to ensure simplified access to Union funding. That contribution shall be irrespective of the mode or instrument of budget implementation and including advisory and business acceleration services and support to a single gateway for access to Union support in accordance with Regulation (EU) [XXX] [Performance Regulation].
2. The ECF may support any additional activities to facilitate and accelerate access to Union funding, and other funding, financing and investments, as well as to ensure valorisation and uptake of results through tools and instruments such as proof of concept, deployment grants, advisory and business support services, and any dedicated platform.

Amendment 164

Proposal for a regulation

Chapter VI – title

Text proposed by the CommissionAmendment
SUPPORT FOR DIGITAL LEADERSHIPSUPPORT FOR DIGITAL LEADERSHIP AND SKILLS

Amendment 165

Proposal for a regulation

Article 33 – paragraph 1 – point a a (new)

Text proposed by the CommissionAmendment
(aa) "Just transition activities": to help regions and communities that are most affected by the transition to a climate-neutral economy in the EU, especially those regions heavily dependent on fossil fuels or carbon-intensive industries so they are not left behind in the green transition.

Amendment 166

Proposal for a regulation

Article 33 – paragraph 1 – point b a (new)

Text proposed by the CommissionAmendment
(ba) the role of zero and low carbon energy sources.

Amendment 167

Proposal for a regulation

Article 38 – title

Text proposed by the CommissionAmendment
Specific provisions for support to digital leadership policySpecific provisions for support to digital leadership and skills policy

Amendment 168

Proposal for a regulation

Article 39 – title

Text proposed by the CommissionAmendment
Specific activities to support digital leadership policySpecific activities to support digital leadership and skills policy

Amendment 169

Proposal for a regulation

Article 39 – paragraph 1

Text proposed by the CommissionAmendment
1. Support for digital leadership shall address, in a comprehensive and coherent manner, the entire scope of the digital sector, such as Artificial Intelligence, (including AI Factories and Gigafactories), high performance computing, quantum technologies, semiconductors and photonics, robotics, large data technologies, telco-edge and cloud technologies, 6G and other wireless technologies, communication networks, advanced connectivity, including 6G and other wireless technologies, sensing technologies, cybersecurity and network resilience, software engineering, augmented reality and virtual worlds, digital twins, Union digital identity and business wallets, trust technologies, new and emerging digital technologies as well as cross-sectoral digital technologies and applications, including those with dual-use potential, support for data technologies and data spaces.1. Support for digital leadership and skills shall address, in a comprehensive and coherent manner, the entire scope of the digital sector, such as Artificial Intelligence, (including AI Factories and Gigafactories), high performance computing, quantum technologies, semiconductors and photonics, robotics, large data technologies, telco-edge and cloud technologies, 6G and other wireless technologies, communication networks, advanced connectivity, including 6G and other wireless technologies, sensing technologies, cybersecurity and network resilience, software engineering, augmented reality and virtual worlds, digital twins, Union digital identity and business wallets, trust technologies, new and emerging digital technologies as well as cross-sectoral digital technologies and applications, including those with dual-use potential, support for data technologies and data spaces.

Amendment 170

Proposal for a regulation

Article 39 – paragraph 2 – introductory part

Text proposed by the CommissionAmendment
2. Support for digital leadership shall be implemented in particular through the following activities:2. Support for digital leadership and skills shall be implemented in particular through the following activities:

Amendment 171

Proposal for a regulation

Article 53 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) The objectives, priorities and the expected results set for the relevant action, in particular trough the evaluation of one or more of the following criteria as specified in the work programmes: (i) contribution to excellence in the defence domain, (ii) innovation capacities, (iii) cross-border cooperation, in particular with SMEs and mid-caps that bring substantial added-value to the action, (iv) competitiveness, (v) increase in production capacities and availability, (vi) reduction of lead production time, (v) increase in interoperability, (vii) increase in interchangeability and (viii) security of supply throughout the Union in response to identified risks, including in particular high exposure to the risk of materialisation of conventional military threats.(b) The objectives, priorities and the expected results set for the relevant action, in particular trough the evaluation of one or more of the following criteria as specified in the work programmes: (i) contribution to excellence in the defence domain, (ii) innovation capacities, (iii) cross-border cooperation, in particular with SMEs that bring substantial added-value to the action, (iv) competitiveness, (v) increase in production capacities and availability, (vi) reduction of lead production time, (v) increase in interoperability, (vii) increase in interchangeability and (viii) security of supply throughout the Union in response to identified risks, including in particular high exposure to the risk of materialisation of conventional military threats.

Amendment 172

Proposal for a regulation

Article 60 – paragraph 2

Text proposed by the CommissionAmendment
2. Copernicus shall also support the formulation, implementation and monitoring of the Union’s and its Member States’ policies in particular in the fields of environment, climate change, marine, maritime, atmosphere, agriculture and rural development, preservation of cultural heritage, civil protection, infrastructure monitoring, safety and security, as well as digital economy, under the Digital Leadership window, which shall be aligned with the objective of Copernicus.2. Copernicus shall also support the formulation, implementation and monitoring of the Union’s and its Member States’ policies in particular in the fields of environment, climate change, marine, maritime, atmosphere, agriculture and rural development, preservation of cultural heritage, civil protection, infrastructure monitoring, safety and security, as well as digital economy, under the Digital Leadership and Skills window, which shall be aligned with the objective of Copernicus.

Amendment 173

Proposal for a regulation

Article 83 – paragraph 1 – point a a (new)

Text proposed by the CommissionAmendment
(aa) SME Committee for matters concerning specific objectives set out in Article 3(2), point (a -1);

Amendment 174

Proposal for a regulation

Annex I (new)

Text proposed by the CommissionAmendment
ANNEX I
MARKET FAILURES, SUBOPTIMAL INVESTMENT SITUATIONS, ADDITIONALITY AND EXCLUDED ACTIVITIES
A. Market failures, suboptimal investment situations and additionality
In accordance with Article 212 of the Financial Regulation, the Union guarantee shall address market failures or suboptimal investment situations (point (a) of Article 212(2) of the Financial Regulation) and shall achieve additionality by preventing the replacement of potential support and investment from other public or private sources (point (b) of Article 212(2) of the Financial Regulation). In order to comply with points (a) and (b) of Article 212(2) of the Financial Regulation, the financing and investment operations benefitting from the Union guarantee shall fulfil the following requirements laid down in points 1 and 2:
1. Market failures and suboptimal investment situations
To address market failures or suboptimal investment situations as referred to in point (a) of Article 212(2) of the Financial Regulation, the investments targeted by the financing and investment operations shall include one of following features:
(a) Have the nature of a public good for which the operator or company cannot capture sufficient financial benefits (such as education and skills, healthcare and accessibility, security and defence, and infrastructure available at no or negligible cost).
(b) Externalities which the operator or company generally fails to internalise, such as R&D investment, energy efficiency, climate or environmental protection.
(c) Information asymmetries, in particular in the case of SMEs and small mid-cap companies, including higher risk levels related to early-stage firms, firms with mainly intangible assets or insufficient collateral, or firms focusing on higher risk activities.
(d) Cross-border infrastructure projects and related services or funds that invest on a cross-border basis to address the fragmentation of the internal market and to enhance coordination within the internal market.
(e) Exposure to higher levels of risks in certain sectors, countries or regions beyond levels that private financial actors are able or willing to accept, including where the investment would not have been undertaken or would not have been undertaken to the same extent because of its novelty or because of risks associated with innovation or unproven technology.
(f) New or complex market failures or suboptimal investment situations in accordance with point (a)(iii) of Article 9(1) of this Regulation.
2. Additionality
Financing and investment operations shall fulfil both aspects of additionality as referred to in point (b) of Article 212(2) of the Financial Regulation. That means that the operations would not have been carried out or would not have been carried out to the same extent by other public or private sources without support from the InvestEU Fund. For the purposes of this Regulation, those operations shall be understood as financing and investment operations having to meet the following two criteria:
(1) to be considered additional to the private sources referred to in point (b) of Article 212(2) of the Financial Regulation, the InvestEU Fund shall support the financing and investment operations of the implementing partners by targeting investments which, due to their characteristics (public good nature, externalities, information asymmetries, socio-economic cohesion considerations or other), are unable to generate sufficient market-level financial returns or are perceived to be too risky (compared to the risk levels that the relevant private entities are willing to accept). Because of those characteristics, such financing and investment operations cannot access market financing at reasonable conditions in terms of pricing, collateral requirements, the type of finance, the tenor of financing provided or other conditions, and would not be undertaken in the Union at all or to the same extent without public support;
2) to be considered additional to existing support from other public sources referred to in point (b) of Article 212(2) of the Financial Regulation the InvestEU Fund shall only support financing and investment operations for which the following conditions apply:
(a) the financing and investment operations would not have been carried out or would not have been carried out to the same extent by the implementing partner without support from the InvestEU Fund; and
(b) the financing and investment operations would not have been carried out or would not have been carried out to the same extent in the Union under other existing public instruments, such as shared management financial instruments that operate at regional or national level, although the complementary use of InvestEU Fund and other public sources has to be possible, in particular where Union added value can be achieved and where the use of public sources to achieve policy objectives in an efficient manner can be optimised. To demonstrate that the financing and investment operations benefitting from the Union guarantee are additional to the existing market and to existing other public support, the implementing partners shall provide information that demonstrates the presence of at least one of the following features: (a) support through subordinated positions in relation to other public or private lenders or within the funding structure; (b) support through equity and quasi-equity or through debt with long tenors, pricing, collateral requirements or other conditions not sufficiently available on the market or from other public sources;
(c) support to operations that carry a higher risk profile than the risk generally accepted by the implementing partner’s own standard activities or support to implementing partners in exceeding own capacity to support such operations;
(d) participation in risk-sharing mechanisms targeting policy areas that exposes the implementing partner to higher risk levels compared to the levels generally accepted by the implementing partner or that private financial actors are able or willing to accept;
(e) support that catalyses or crowds in additional private or public financing and is complementary to other private and commercial sources, in particular from traditionally risk-averse investor classes or institutional investors, as a result of the signalling effect of the support from the InvestEU Fund;
(f) support through financial products not available or not offered to a sufficient level in the targeted countries or regions due to missing, underdeveloped or incomplete markets. For intermediated financing and investment operations, in particular for SME support, additionality shall be verified at the level of the intermediary rather than at the level of the final recipient.
Additionality shall be deemed to exist when InvestEU Fund supports a financial intermediary in setting up a new portfolio with a higher level of risk or increasing the volume of activities that are already highly risky as compared with the risk levels that private and public financial actors are currently able or willing to accept in the targeted countries or regions. The Union guarantee shall not be granted for supporting refinancing operations (such as replacing existing loan agreements or other forms of financial support for projects which have already partially or fully materialised), except in specific exceptional and well justified circumstances in which it is demonstrated that the operation under the Union guarantee will enable a new investment in an eligible area for financing and investment operations additional to customary volume of activity by the implementing partner or financial intermediary, at least equivalent to the amount of the operation that fulfils the eligibility criteria set out in this Regulation. Such refinancing operations shall respect the requirements set out in Section A of this Annex regarding market failure, suboptimal investment situations and additionality.
B. Excluded activities
The InvestEU Fund shall not support:
(1) activities which limit individual rights and freedoms or that violate human rights;
(2) in the area of defence activities, the use, development, or production of products and technologies that are prohibited by applicable international law;
(3) tobacco-related products and activities (production, distribution, processing and trade);
(4) activities excluded from financing pursuant to the relevant provisions of the Horizon Europe Regulation: research on human cloning for reproductive purposes; activities intended to modify the genetic heritage of human beings which could make such changes heritable; and activities to create human embryos solely for the purpose of research or for the purpose of stem cell procurement, including by means of somatic cell nuclear transfer;
(5) gambling (production-, construction-, distribution-, processing-, trade- or software-related activities);
(6) sex trade and related infrastructure, services and media;
(7) activities involving live animals for experimental and scientific purposes insofar as compliance with the European Convention for the Protection of Vertebrate Animals used for Experimental and other Scientific Purposes (1) cannot be guaranteed;
(8) real estate development activity, such as an activity with a sole purpose of renovating and re-leasing or re-selling existing buildings as well as building new projects; however, activities in the real estate sector that are related to the specific objectives of the ECF as specified in Article 3(2) shall be eligible;
(9) financial activities such as purchasing or trading in financial instruments. In particular, interventions targeting buy-out intended for asset stripping or replacement capital intended for asset stripping shall be excluded;
(10) activities forbidden by applicable national legislation;
(11) investments related to mining or to the extraction, processing, distribution, storage or combustion of solid fossil fuels and oil, as well as investments related to the extraction of gas. This exclusion does not apply to: (a) projects where there is no viable alternative technology; (b) projects related to pollution prevention and control; (c) projects equipped with carbon capture and storage or carbon capture and utilisation installations; industrial or research projects that lead to substantial reductions of greenhouse gas emissions as compared with the applicable EU Emission Trading System benchmarks;
(12) investments in facilities for the disposal of waste in landfill. This exclusion does not apply to investments in: (a) on-site landfill facilities that are an ancillary element of an industrial or mining investment project and where it has been demonstrated that landfilling is the only viable option to treat the industrial or mining waste produced by the activity concerned itself; (b) existing landfill facilities to ensure the utilisation of landfill gas and to promote landfill mining and the reprocessing of mining waste;
(13) investments in mechanical biological treatment (MBT) plants. This exclusion does not apply to investments to retrofit existing MBT plants for waste-to-energy purposes or recycling operations of separated waste such as composting and anaerobic digestion;
(14) investments in incinerators for the treatment of waste. This exclusion does not apply to investments in: (a) plants exclusively dedicated to treating non-recyclable hazardous waste; (b) existing plants, where the investment is for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such investments do not result in an increase of the plants’ waste processing capacity.
The implementing partners shall remain responsible for ensuring compliance of financing and investment operations with the exclusion criteria set out in this Annex at signature of the relevant agreement, for monitoring such compliance during the implementation of the project and for undertaking appropriate remedial actions where relevant.
Annex: declaration of input 4 paragraphs

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that he included in his opinion input on matters pertaining to the subject of the file that he received, in the preparation of the draft opinion, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register
ECB
InnoEnergy
European Association of Guarantee Institutions
EDF
2. Representatives of public authorities of third countries, including their diplomatic missions and embassies
Czech permanent representation in Brussels

The list above is drawn up under the exclusive responsibility of the rapporteur for opinion.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that he has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

Procedure pages

How the committees handled the text, and how their members voted on it.

Procedure – committee asked for opinion 1 paragraph
TitleEstablishing the European Competitiveness Fund (’ECF’), including the specific programme for defence research and innovation activities
ReferencesCOM(2025)0555 – C10-0165/2025 – 2025/0555(COD)
Committee(s) responsible Date announced in plenaryITRE 23.10.2025
Opinion by Date announced in plenaryECON 23.10.2025
Rapporteur for opinion Date appointedDanuše Nerudová 3.12.2025
Discussed in committee18.3.2026
Date adopted5.5.2026
Result of final vote+: –: 0:31 10 18
Final vote by roll call by the committee asked for opinion 3 paragraphs

31 · For

ECR
Stephen Nikola Bartulica, Giovanni Crosetto, Rihards Kols, Denis Nesci, Gheorghe Piperea, Francesco Ventola
EPP
Georgios Aftias, Isabel Benjumea Benjumea, Stefan Berger, Sebastião Bugalho, Marco Falcone, Markus Ferber, Michalis Hadjipantela, Kinga Kollár, Fernando Navarrete Rojas, Danuše Nerudová, Luděk Niedermayer, Lídia Pereira, Sirpa Pietikäinen, Paulius Saudargas, Ralf Seekatz
Patriots
Klara Dostalova, Ondřej Knotek, Tomáš Kubín, Jaroslava Pokorná Jermanová
Renew
Grégory Allione, Valérie Devaux, Engin Eroglu, Morten Løkkegaard, Ľudovít Ódor, Anouk Van Brug

10 · Against

ESN
Siegbert Frank Droese, Mary Khan
No group
Fabio De Masi, Fernand Kartheiser, Friedrich Pürner
Patriots
Jorge Martín Frías, Auke Zijlstra
The Left
Martin Günther, Gaetano Pedulla', Pasquale Tridico

18 · Abstained

ECR
Bogdan Rzońca
EPP
Arba Kokalari
Patriots
Pierre Pimpie
S&D
Francisco Assis, Jonás Fernández, Niels Fuglsang, Eero Heinäluoma, César Luena, Idoia Mendia, Leire Pajín, Nikos Papandreou, René Repasi, Nacho Sánchez Amor, Irene Tinagli
The Left
Jussi Saramo
Greens
Rasmus Andresen, Kira Marie Peter-Hansen, Marie Toussaint