STATEMENT | EUROPEAN POLICY | EU BUDGET
Securing Europe’s Competitiveness The next multiannual financial framework must prioritise investment
10 October 2025 ▪
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The need to step up private and public investment in the EU has drastically increased on account of the war in Ukraine and the realignment of US policy. Although investment volumes in defence and, in part, infrastructure have increased considerably, investment in the fields of technology, climate protection and resilience remains far too low. The scaling up of investment remains insufficient to meet requirements. As presented in the European Commission’s Competitiveness Compass, Member States need to considerably strengthen their national public investment, conditions for private investment, joint initiatives through IPCEIs and national and European promotional banks to bring the targets of the EU within reach. The multiannual financial framework must make a tangible contribution to closing this gap from 2028 onwards at the latest. The European Union needs to make investment in competitiveness, resilience and decarbonisation a clear priority in its multiannual financial framework starting 2028. The European Commission’s proposal sets the correct course in many key aspects but does not go far enough to meet the new requirements. The proposal continues structural realignment but falls short of the mark. Forwardlooking investment in competitiveness, defence, research and infrastructure are bolstered in the proposal, but a considerable part of the budget remains allocated to conventional areas of expenditure. The proportion of the financial framework earmarked to scale up investment is still too small. Setting competitiveness as an overarching objective and pooling central programmes in a new European Competitiveness Fund is designed to achieve the necessary streamlining and facilitate the implementation of measures. Does the draft MFF align with the Draghi Report? Not entirely. The budget proposal does follow the central recommendations of the Draghi Report, contributing to closing the investment gap by significantly increasing funds for competitiveness, resilience, defence and investment in strategic technologies. The proposal also supports governance, the reduction of bureaucracy and the increase of cross-border investment. Some challenges are not addressed with security for investment not guaranteed in all areas, particularly not in energy and infrastructure, leaving the balance between flexibility and predictability open.