What's Happening?
A coalition of 86 European associations, including the Committee for European Construction Equipment (CECE), has issued a joint declaration urging the European Union (EU) to allocate more funding to the upcoming
Framework Programme for Research and Innovation (FP10). The associations argue that increased investment is crucial to enhance productivity, accelerate technology development, and strengthen industrial resilience across Europe. The call for action is based on concerns that Europe's productivity growth has stalled and its innovation gap with the United States and China is widening. The declaration references Mario Draghi's 2024 report on European competitiveness, which highlights the need for approximately €800 billion in additional annual investment to close the competitiveness gap. The associations emphasize that research and innovation are vital components of this agenda, advocating for a well-funded FP10 to drive innovation-led productivity growth.
Why It's Important?
The push for increased funding for FP10 is significant as it addresses the broader challenge of maintaining Europe's competitive edge in the global market. By investing in research and innovation, the EU aims to close the productivity and innovation gap with major global competitors like the United States and China. This initiative is expected to support the green and digital transitions, bolster Europe's strategic autonomy, and sustain its social model. The associations warn that underfunding FP10 could undermine public-private partnerships, technology maturation pipelines, and talent networks, ultimately affecting Europe's industrial base and long-term prosperity. The decision on FP10's budget will have far-reaching implications for Europe's ability to compete globally and sustain economic growth.
What's Next?
The EU institutions are expected to consider the coalition's recommendations as they finalize the 2028-2034 Multiannual Financial Framework (MFF). The associations are prepared to collaborate with EU institutions to design a robust FP10 that aligns with the ambitions outlined in the Draghi report and the Competitiveness Compass. The upcoming months will be critical as decisions on the MFF will determine whether Europe can equip itself with the necessary research, development, and innovation capabilities to compete globally. The outcome will influence Europe's industrial strategy and its ability to meet competitiveness objectives.
