Latest news with #ECF
Euronews
3 days ago
- Business
- Euronews
Commission nearly doubles research, innovation fund in next budget
The European Commission has earmarked some €175.3 billion of its long-term 2028-2034 budget for Horizon Europe, its research and innovation program, up from €93.5 billion in the previous period (2021-2027). Horizon Europe, which finances projects on green and digital transitions as well as research leading to scientific breakthroughs, will now be part of the newly created European Competitiveness Fund (ECF), with a total budget of €410 billion, that aims to improve the bloc's competitiveness in technologies and strategic sectors critical to the EU. Until now, the variety of EU programmes supporting innovation and deployment of research has been seen as 'complex and difficult to navigate' for the targeted beneficiaries, the Commission's document said. The new ECF is pooling resources from eleven programmes. Of the €410 billion fund, some €54.8 billion is earmarked for the 'digital transition'. 'This investment impulse should benefit the entire Single Market – from AI to space, from clean tech to biotech. The Fund will be structured into four vertically integrated sectoral windows: clean transition and decarbonisation; resilience, defence industry and space; digital leadership; health and bio-economy,' the Commission's document said. On Wednesday the Commission presented its much-anticipated proposal for the new long-term EU budget, worth €2 trillion between 2028 and 2034, a sizable increase compared to the €1.21 trillion in the previous period. In a reaction to the funding, tech lobby group Digital Europe said an 'additional investment of between €157 billion and €227 billion per year on average' is needed to close Europe's investment gap with other regions of the world. 'Digital technologies are crucial to cut emissions, protect critical infrastructure and super-charge productivity – they need to drive action across all the EU's strategic priorities,' its statement said. In February, Commission President Ursula von der Leyen said the EU executive would invest some €20 billion in AI gigafactories, needed to allow for 'collaborative development' for the most complex AI models. In comparison, French President Emmanuel Macron previously committed to invest €109 billion in AI projects in France in the coming years. On Monday, the US government committed to €92 billion for cutting-edge AI and energy initiatives. The budget will now need to be discussed by the member states and needs the consent of the European Parliament.
Euractiv
4 days ago
- Business
- Euractiv
Green groups see EU budget bill as death knell for environment funding
While the European Commission has proposed a substantial increase in the size of the bloc's central budget from 2028, green groups have accused the EU executive of lowering the priority of environmental action and warn civil society voices could be excluded from the policy making process. As expected, the European Commission has proposed axing the LIFE Programme, the EU's only stand-alone funding mechanism for environmental action. The 2028-34 budget bill also squeezes broader funding for climate and biodiversity policy goals. But the EU executive put a positive spin on its move to streamline green funding with the massively increased €2 trillion budget. 'We will have a climate and biodiversity spending target, so mainstreaming, of 35% for the new MFF," European Commission President Ursula von der Leyen told reporters on Wednesday, referring to the EU's next multiannual financial framework. "This amounts to around €700 billion.' This substantial sum of money would have to be spent in ways that are compatible with the EU goal of reaching net-zero emissions by mid-century, and reversing biodiversity loss. Nevertheless, it is lower than the combined €658 billion ring-fenced for climate and €113 billion for biodiversity in the current budget. From 2028, central budget funding for climate and environment purposes will be split in two separate pillars: the 'clean transition and industrial decarbonisation' envelope of the €410 billion European Competitiveness Fund (ECF), and some €1 trillion spread across different priorities such as economy, agriculture, rural prosperity and security. 'Our proposal for the next MFF shows that we remain strongly committed to environmental priorities," Environment Commissioner Jessika Roswall said. "Water, circularity, nature and bioeconomy are prominent parts of the new competitiveness fund and the national plans." Less money for nature However some fear this new approach risks decreasing overall funding for nature and biodiversity. 'The loss of LIFE as we know it in the new MFF is not simplification – it's sabotage," said Patrick ten Brink, secretary general of the European Environmental Bureau (EEB), an NGO umbrella group. "The LIFE Programme exists for a reason. It delivers targeted, cost-effective results for nature, climate and public health.' Ester Asin, director of the WWF European Policy Office warned the 35% global target could become little more than a PR exercise. "By grouping all environmental spending under a single target, there is a real danger that biodiversity will be sidelined in favour of industrial priorities that may be presented as green investments," she said. Others warned the proposed budget reform could actually widen a gap in funding for nature restoration that is currently estimated to be €19 billion annually. 'We are deeply concerned by the lack of dedicated biodiversity funding, as the LIFE funding is now suggested to be merged with other programmes," said Andras Krolopp, biodiversity policy lead at The Nature Conservancy. The concerns of civil society groups were also echoed by progressive voices in the European Parliament. 'It is irresponsible and short-sighted for this proposal to end the LIFE programme and leave out funding for biodiversity,' said Green MEP Rasmus Nordqvist, one of the negotiators of the MFF in the Parliament's budget committee. The cancellation of the LIFE Programme also represents an existential threat to numerous environmental NGOs who currently share €15 million in direct grants to cover part of their operational expenses. The Commission says such support could in future be disbursed via national programmes, but it is unclear for now how the funds would be allocated, and whether campaign groups will be able to meet unspecified criteria related to competitiveness or national policy objectives. '[By] repealing LIFE, core funding for environmental NGOs could disappear, leaving civil society under-resourced to support necessary implementation, enforcement, and public engagement," the EEB warned. 'The MFF needs to enable civil society actors to participate effectively in EU-level policymaking," MEP Nordqvist said. "It is essential to safeguard the right of everyone to meaningful participation in decision-making processes and the full cycle of implementation of the EU budget." (rh, aw)
Euronews
5 days ago
- Business
- Euronews
EU's defence industry wants at least €100 billion under the next MFF
The €13 billion set aside for security and defence in the EU's current long-term budget (2021–2027) is a drop in the ocean when it comes to protecting Europe from serious threats, the bloc's defence, security, and space industry has warned. The next Multiannual Financial Framework (MFF) should feature dedicated investment envelopes that 'match the scale of the ambition and the urgency of the challenge,' according to a position paper by the Aerospace, Security and Defence Industries Association of Europe (ASD), released on the eve of the Commission's proposal. Industry leaders say that means allocating around €150 billion for both defence and security across the next seven-year budget cycle, starting in 2028. In recent months, the EU has urged member states to ramp up national defence efforts and has proposed an €800 billion plan to rearm. But so far, the pace of action has fallen short of expectations. 'Despite recent increases, Europe's current rate of defence investment and procurement is inadequate to address the most extreme military contingencies,' the ASD warned in the paper. With the US shifting focus to the Indo-Pacific and the threat of potential Russian aggression looming, industry figures argued that €100 billion for defence alone is 'the bare minimum' needed to begin rebuilding Europe's defence industrial base—especially after decades of underfunding that led to a €600 billion 'defence deficit' during the so-called peace dividend era. The precise breakdown of the EU's next budget remains under wraps until Wednesday. But according to leaked documents seen by Euronews, the Commission is expected to propose a massive industrial fund that merges up to 14 existing budget lines, spanning defence, space, and technology programs. This new instrument, the European Competitiveness Fund (ECF), is set to include the European Defence Fund, the Act in Support of Ammunition Production, IRIS², InvestEU, the European Defence Industry Programme, EU4Health, and LIFE, among others. The ECF will also feature a European preference clause to promote sovereignty in critical areas like digital technologies, space, biotech, security, and defence. In addition, the European Commission is weighing whether to merge its two largest budget items—the Common Agricultural Policy (CAP) and the cohesion policy—into a single programming framework. Under this umbrella, the ECF would be used to support the bloc's growing defence and security capabilities. The European industry has also called on EU policymakers to allocate another €40 to €60 billion for space-related projects and around €23.5 billion for civil aviation. Otherwise, chronic underinvestment in aerospace, defence and security could result in weakened capabilities, delayed critical transitions and increased dependencies, the ASD claimed. EU Commissioner for Defence and Space Andrius Kubilius told Euronews in a recent interview that the next long-term budget should include more funding for space initiatives to reduce reliance on the U.S. and strengthen the EU's strategic autonomy. While he didn't provide specific figures due to ongoing negotiations, Kubilius acknowledged that maintaining current space systems alone will cost more than the €17 billion currently allocated. 'If we do not allocate enough funding and fail to start developing these space projects, by 2035 we may find ourselves in a very unattractive situation,' he warned.
Zawya
10-07-2025
- Business
- Zawya
Cabo Verde: International Monetary Fund (IMF) Executive Board Concludes the Sixth Review Under the Extended Credit Facility Arrangement and Approves the Requests for Extension and Augmentation of the Arrangement, and the Extension and Rephasing Under the Resilience and Sustainability Facility Arrangement
The IMF Executive Board completed the sixth review under the Extended Credit Facility (ECF) arrangement and approved a fifteen-month extension and an augmentation equivalent to thirty percent of quota under the ECF arrangement. The Executive Board also approved a fifteen-month extension of the Resilience and Sustainability Facility (RSF) arrangement and the rephasing of availability dates under the RSF arrangement. The ECF arrangement aims to strengthen public finances, ensure debt sustainability, minimize fiscal risks from public enterprises, modernize monetary policy, and raise potential growth. The RSF arrangement aims to support the government's climate reforms and catalyze private climate finance. All end-December 2024 quantitative performance criteria (PCs), continuous PCs, and structural benchmarks (SBs) under the ECF arrangement were met. The indicative target (IT) on social spending at end-December 2024 was not met, albeit by a small margin. Implementation of reform measures (RMs) under the RSF arrangement has been slower than expected, reflecting the complexity and interconnectedness of the reforms and capacity constraints. The Executive Board of the IMF completed the sixth review under the ECF arrangement, which was approved on June 15, 2022, and approved a fifteen-month extension and augmentation under the arrangement. The augmentation of 30 percent of quota (SDR 7.11 million) brings access under the ECF arrangement to SDR 52.14 million. The completion of the sixth ECF review allows the disbursement of SDR 4.51 million (approximately US$6.18 million). The Executive Board also approved the authorities' request for a fifteen-month extension under the RSF arrangement, rephasing of the availability dates for delayed reform measures (RMs), and the modification of one RM. Cabo Verde's economy continues to perform well, underpinned by tourism, robust export performance, and private consumption growth. Economic growth in 2024 was strong at 7.3 percent, with 5.2 percent growth expected in 2025. Inflation is projected to stay near 2 percent, and the current account is expected to return to a small deficit in 2025. Continued data-driven adjustments in monetary policy may be needed to protect the exchange rate peg and appropriate reserves buffers. The financial system is liquid, profitable, and well capitalized. The 2024 fiscal balance exceeded program targets, driven by lower primary expenditures and strong tax revenue growth. The public debt-to-GDP ratio continues to decline. Performance under the ECF arrangement continues to be strong. All end-December 2024 quantitative performance criteria (PCs), continuous PCs, and structural benchmarks (SB) for end-December 2024 were met. Implementation of RMs under the RSF has been weaker than expected despite efforts and ongoing CD support. Cabo Verde's medium-term economic outlook remains favorable. Growth is expected to gradually converge to 4.8 percent by 2028, with inflation remaining around 2 percent, broadly in line with euro area inflation. The current account is expected to remain in deficit in the medium term as temporary factors dissipate due to increased capital expenditure on climate and infrastructure, while tourism-related growth moderates. The 2025 budget is aligned with the program and a continued decline in the public debt-to-GDP ratio to 104.9 percent by end-2025, below pre-pandemic levels. The macroeconomic outlook remains favorable but is subject to downside risks. Risks stem from global uncertainty, uncertainties in global trade frameworks, and external financing challenges, while rising spending on climate and infrastructure, as well as slower tourism growth, could contribute further to imbalances. Delays in SOE reforms may impact fiscal stability. The high level of debt is a source of vulnerability, and concessional financing to limit debt servicing costs remains important. On the upside, continued strength in tourist arrivals could lift growth. Following the Executive Board discussion on Cabo Verde, Acting Chair and Deputy Managing Director Bo Li issued the following statement: Economic activity in Cabo Verde in 2024 was strong, growth in 2025 is projected to remain above potential, and the near-term outlook is favorable despite downside risks. Inflation has been low and is expected to remain at moderate levels in the medium term. Risks to the outlook include lower external demand in major tourism source countries; uncertainties related to global trade frameworks; and climate-related shocks. 'Program performance under the ECF was strong. All performance criteria were met. All program-supported structural reforms were also implemented. Progress under the RSF arrangement has been weaker than expected, reflecting the complexity and interconnectedness of the reforms and domestic capacity constraints. 'The fiscal position in 2024 exceeded program targets, and the debt-to-GDP ratio has continued to decline. The execution of public capital spending improved relative to 2023. Over the medium-term, domestic revenue mobilization and steadfast progress on fiscal structural reforms will continue while protecting social spending and prioritizing high-quality public investments. Steady progress on state-owned enterprise (SOE) reforms remains critical for limiting fiscal risks and improving services. 'The monetary policy framework is focused on safeguarding the peg. The BCV has continued to normalize monetary policy: interest differentials with the ECB have turned positive which will help protect external buffers. The financial sector remains stable, well-capitalized, profitable and liquid, although non-performing loans require continued monitoring. 'The authorities should continue implementing their ambitious structural reform agenda. This includes the implementation of the reform measures under the RSF arrangement to help catalyze broader financial and technical support for building climate resilience. To improve reform implementation capacity under the RSF, more resources need to be invested in planning and management. Other important actions include accelerating reforms to improve the business environment.' Distributed by APO Group on behalf of International Monetary Fund (IMF).
Euractiv
08-07-2025
- Business
- Euractiv
Von der Leyen moves to merge green, defence, space funds in new EU budget law
The European Commission is pushing to create a massive industrial policy fund by merging up to 14 existing budget lines in its next multiannual financial framework spending plan, draft legislation seen by Euractiv shows. The blueprint for a long-awaited European Competitiveness Fund (ECF) as part of the bloc's coming seven-year spending plan is the Commission's flagship reform to revamp Europe's productivity gap. The aim is to create a dedicated funding pot to help catch up with the US and China across the 2028-2034 budget. The draft regulation contains no numbers, but says the ECF will merge activities under up to 14 different budget lines listed in the current €1.2 trillion seven-year budget. Those include the Innovation Fund, Digital Europe Programme, and the €2 billion component of the Connecting Europe Facility (CEF) dealing with digital projects. It also covers the European Defence Fund, the Act in Support of Ammunition Production (ASAP), the European Defence Industry Reinforcement through Common Procurement Act (EDIRPA), the European Defence Industry Programme (EDIP), EU4Health and the European Space Programme, satellite programme IRIS², and InvestEU. The huge new cash pot will aim to plug some of Europe's investment gap by using public funds to free up larger amounts of private capital, according to the document. However, the biggest EU programmes remain outside the consolidation effort or are absorbed only in part. For example, Horizon Europe (€93 billion), a big part of the Innovation Fund (€40 billion) and the bulk of the Connecting Europe Facility (€20 billion) dealing with transport and energy projects, will remain mostly outside the ECF. (jp)
