On 15 July 2026, the Council of the European Union agreed its position on the draft EU Budget for 2027. The 2027 budget is particularly important because it will be the final annual budget under the current Multiannual Financial Framework 2021–2027.
At the same time, negotiations are progressing on the next EU Multiannual Financial Framework for 2028–2034, which is expected to introduce major changes to European research, innovation and business funding.
For research organisations, universities, start-ups and SMEs, the transition signals a stronger focus on competitiveness, strategic technologies, industrial capacity, scale-up and measurable impact.
The 2027 budget is therefore expected to act as a bridge between the current programming period and the new EU funding landscape beginning in 2028.
What Is the MFF 2028–2034?
The Multiannual Financial Framework, or MFF, is the EU’s seven-year long-term budget. The proposed MFF for 2028–2034 amounts to almost €2 trillion in current prices. It will define the EU’s main spending priorities and the structure of future European funding programmes. The framework is still under negotiation, and its final budget and programme structure may change before its expected launch on 1 January 2028.
Major Changes Under the MFF 2028–2034
1. A Simpler EU Funding Structure
The European Commission proposes a simpler and more flexible budget structure, with fewer fragmented programmes and more harmonised rules. For beneficiaries, this could result in easier access to funding and more consistent implementation procedures.
2. The European Competitiveness Fund
One of the most important proposed changes is the creation of the European Competitiveness Fund. The Fund would bring together several existing programmes and support four strategic areas:
- health, biotechnology and bioeconomy
- security, defence and space
- digital technologies
- clean transition and industrial decarbonisation
For SMEs, the Fund could provide more integrated access to grants, equity, loans, guarantees, pilot funding and scale-up finance.
3. Stronger Links with Horizon Europe
Horizon Europe is expected to remain a separate programme, but it will be more closely connected to the European Competitiveness Fund. The aim is to create a clearer funding pathway:
research → technology development → demonstration → scale-up → market deployment
Future proposals may therefore need to demonstrate not only scientific excellence, but also strong industrial partnerships, exploitation plans, market potential and measurable impact.
4. Greater Focus on Strategic Technologies
The future MFF is expected to prioritise technologies that strengthen Europe’s competitiveness and technological sovereignty, including:
- artificial intelligence
- semiconductors
- cybersecurity
- quantum technologies
- biotechnology
- advanced materials
- clean technologies
- energy systems
- space, security and defence
5. More Support for Scale-Up
The new framework aims to address the gap between successful research and commercial deployment. More emphasis is expected to be placed on pilot activities, industrial demonstration, manufacturing capacity, private investment and market readiness.
6. National and Regional Partnership Plans
The proposed MFF also introduces National and Regional Partnership Plans, bringing together funding currently managed through several separate programmes. These plans could influence future funding for:
- research infrastructures
- innovation clusters
- competence centres
- SME digitalisation
- technology transfer
- skills and regional innovation ecosystems
Early engagement with national and regional authorities will therefore be important.
7. Stronger Focus on Results
Future EU funding is expected to become more performance-oriented. The proposals under the new scheme may need to demonstrate clearer results, including:
- technology-readiness progress
- private investment attracted
- products and services launched
- jobs created
- environmental and societal impact
The overall direction of the future MFF is clear: EU funding will become more closely linked to competitiveness, strategic technologies, industrial capacity and market deployment.
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