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Europe Daily Bulletin No. 13874
INSTITUTIONAL / Budget

MFF 2028-2034 - “criteria of excellence” for companies in future Competitiveness Fund meet with reluctance

In addition to cohesion and funding options, another divisive issue arose over the next Multiannual Financial Framework (MFF) on Tuesday 26 May at the meeting of the EU ‘General Affairs’ Council (GAC). 

A number of countries from the east and south of the European Union have expressed concern about the consequences of the “criteria of excellence” that are to determine the allocation of funds from the Competitiveness Fund in the 2028-2034 budget, according to the Commission’s initial proposal. In their view, these funds could unduly benefit companies from the most advanced economies, in the west and north of the European Union, to the detriment of others. 

We must also ensure that this pillar of excellence is not used in such a way as to accentuate disparities within the EU”, summed up the Romanian Minister for Foreign Affairs, Oana-Silvia Țoiu.

Portugal and Croatia echoed this view, with the Croatian Secretary of State, Andreja Metelko-Zgombić, arguing that the EU should avoid creating “islands of excellence”. These countries are therefore defending a minimum of geographical balance in the allocation of this financing to companies.

It’s a skilful way of negotiating for these countries, which are pushing at the same time for greater cohesion”, said one diplomat. “Yet the very purpose of this competitiveness fund is to encourage innovation in order to compete with China or the United States”.

On the French side, Minister Benjamin Haddad defended this “principle of excellence” in order to contribute to the success of “European champions”. (Original version in French by Clément Solal)

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INSTITUTIONAL
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FUNDAMENTAL RIGHTS - SOCIETAL ISSUES
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