The European Commission is considering a landmark €522 billion investment package to boost economic competitiveness between 2028 and 2034, according to Euractiv.
The proposal would represent the most ambitious EU budget framework to date, with over €300 billion potentially allocated to a new European Competitiveness Fund. The total seven-year budget framework under discussion stands at €1.717 trillion, equivalent to 1.23% of the bloc’s gross national income (GNI).
The €522 billion package consolidates existing and novel instruments: approximately €96 billion for expanded research programmes and up to €50 billion for smaller innovation initiatives. The remaining €376 billion is earmarked for the flagship Competitiveness Fund.
The proposal faced difficulties as the Commission typically proposes a higher figure, which is then cut by profligate EU countries over years of talks.
Notably, €200 billion of the €369 billion increase over the previous budget would service repayment obligations for the EU’s pandemic recovery fund loans, constraining available resources for new initiatives.
The Competitiveness Fund’s final scale will depend on protracted negotiations between fiscally conservative northern states and growth-focused southern and eastern nations.
If adopted, the package would signal a seismic shift toward economic sovereignty, countering subsidy races with the United States and China. The leaked document underscores Brussels’ urgency in closing innovation gaps, though its transformative potential hinges on overcoming member states’ traditional resistance to budgetary ambition.
