EU’s New Competitiveness Fund Worries Researchers About Horizon’s Future

The European Commission is planning to launch a Competitiveness Fund to boost Europe’s economy by investing in key technologies like artificial intelligence, green energy, space, and defence. While the idea is to make the EU more competitive on a global scale, researchers and universities are raising red flags.

In a recent open letter, 12 major European research and university groups, including the European University Association and the Coimbra Group, warned that this new fund must not take priority over Horizon Europe’s successor programme - called Framework Programme 10 (FP10), set to start in 2028.

They say that FP10 must stay independent and focused on long-term, curiosity-driven science, not just short-term business goals.

What Is the Competitiveness Fund?

Historically, the EU's flagship research and innovation programs, such as Horizon Europe, have maintained a clear distinction: they primarily funded civilian applications, fostering scientific excellence for societal well-being and economic growth. Defence research was typically supported through separate, dedicated mechanisms, like the European Defence Fund (EDF).

However, this long-standing separation is now being challenged. The European Commission is proposing to amend Horizon Europe regulations to allow its European Innovation Council (EIC) to fund "dual-use and defence-related innovations" – technologies like AI and cybersecurity that have both civilian and military applications. 

Adding to the complexity is the concept of a new, broader "European Competitiveness Fund" (ECF). The ECF aims to strengthen Europe's overall industrial competitiveness and facilitate the deployment and commercialization of strategic technologies, including those with defence implications Additionally, the new fund is meant to simplify and combine several EU innovation schemes into one place, acting as a “one-stop shop” to support tech projects from the early research stage to market scale. It will likely support large industry-led projects in areas like semiconductors and hydrogen, similar to past Important Projects of Common European Interest (IPCEIs).

European Commission President Ursula von der Leyen has said it will help create a “seamless flow” from lab research to real products. However, she has also promised that FP10 will remain a “self-standing” programme with its own budget, separate from the Competitiveness Fund.

Why Are Universities Concerned?

• Focus on industry over science: University leaders say the new fund might prioritise quick results and industrial growth over fundamental research, which takes time and doesn’t always lead directly to profit.
• Loss of predictability: Researchers argue that without a clearly defined FP10, long-term planning and collaboration will become harder. They fear that science funding will be tied too closely to political agendas.
• Less space for smaller fields: Applied science and deep-tech may get most of the attention, while areas like social sciences and the humanities could be left behind.
• Global impact: Some experts worry that shifting EU research toward industrial goals may make the programme less attractive to international partners like the UK and Switzerland, who value its excellence-based approach.
• Budgetary Redirection: Concerns are mounting that the Horizon Europe budget, originally earmarked for a broad spectrum of civilian research, could be "raided" to fund politically prioritized areas, including defence. Integrating FP10's budget too closely with a broader ECF could dilute its focus and make it easier to divert funds from essential civilian research areas.

What Happens Next?

The final decision will come as part of the EU’s next long-term budget talks (2028–2034). The European Parliament and many national governments have already expressed support for keeping FP10 independent and science-led, with calls to increase funding compared to Horizon Europe.

As budget pressures mount and attention turns to economic security, researchers fear fundamental science will be sidelined.