APPLiA's reaction to the 2028-2034 EU Multiannual Financial Framework Proposal

Photo Source: European Commission

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Last week, the European Commission presented its 2028-2034 Multiannual Financial Framework (MFF) budget. 

On the European Competitiveness Fund (ECF)

The proposal introduces the creation of a European Competitiveness Fund (ECF), aimed at merging existing funding instruments into a single, comprehensive industrial policy fund to enhance the competitiveness of key EU industrial sectors and address Europe’s investment gap. 

Paolo Falcioni, Director General of APPLiA, commented: "The Fund directly addresses one of the most persistent challenges voiced by industry for years, by tackling the fragmented and overly complex EU funding landscape. Through the consolidation of existing instruments and the introduction of a single rulebook, the ECF promises long-overdue simplification and a more coherent framework for accessing EU support. This must now result in a measurable reduction in administrative burden, faster decision-making, and more transparent processes. Just as essential is ensuring predictability, so that EU businesses can plan and invest with confidence, while also guaranteeing that new preference mechanisms do not inadvertently create barriers. APPLiA stands ready to collaborate closely with the Commission to ensure the ECF truly empowers our vibrant industrial ecosystem, to accelerate clean innovation, strengthen Europe’s manufacturing base, and compete globally."

On the Corporate Tax Proposal

The proposal also put forward a new tax on large EU businesses with revenues over €100 million. 

Falcioni added: "From the perspective of an industry that plays a key role in Europe’s economic fabric, this proposal is deeply concerning. On one hand, the Commission has placed competitiveness at the heart of its agenda. On the other, it’s proposing a levy that would directly impact the very companies it is supposed to help driving growth, innovation, and investment across Europe. What’s particularly striking is the inconsistency. The same budget proposal introduces a Competitiveness Fund to support EU industries, while simultaneously increasing their tax burden. At a time when European companies are already grappling with high energy costs and regulatory pressure, this measure risks sending the wrong signal to global investors and further undermining our economic resilience. We need coherent, forward-looking policies that create the conditions for growth, innovation, and long-term investment in Europe. This proposal points in the opposite direction. Europe is at a critical juncture. It’s essential that the next EU budget aligns with the strategic ambition to strengthen, and not weaken, our industrial and economic base."