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Text · Opinion parliamentary committee

On the proposal for a regulation of the European Parliament and of the Council on establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities, repealing Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/697, (EU) 2021/783, and amending Regulations (EU) 2021/696, (EU) 2023/588, (EU) [EDIP]

Full title

On the proposal for a regulation of the European Parliament and of the Council on establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities, repealing Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/697, (EU) 2021/783, and amending Regulations (EU) 2021/696, (EU) 2023/588, (EU) [EDIP]

Document EMPL-AD-785132 · COM(2025)0555 – C100165/2025 – 2025/0555(COD)

Kind
Opinion parliamentary committee EMPL-AD-785132
Date
28 May 2026
Committee
Committee on Employment and Social Affairs
Rapporteur
Grégory Allione
Dossier
2025-0555
More facts (3)
Subject matter
INDU, RDT
Reference
COM(2025)0555 – C100165/2025 – 2025/0555(COD)
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In short

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The Committee on Employment and Social Affairs proposes amendments to the proposed regulation establishing the European Competitiveness Fund, including its defence research and innovation programme. The amendments add social and employment conditions throughout: competitiveness must complement the European Pillar of Social Rights, and funding must support quality jobs, skills development and a just transition. They require at least 7% of each policy window's dedicated financial envelope to go to skills development and workforce adaptation linked to the supported strategic sectors. They add social enterprises, social infrastructure including housing, and less developed regions as beneficiaries, and require work programmes to include a dedicated skills part. They also add temporary resilience measures for major economic shocks or geopolitical disruptions that threaten strategic industrial capacity or value chains.

Position. The Committee on Employment and Social Affairs proposes amendments to the lead committee to add social, employment and skills conditions throughout the proposed regulation, including a 7% skills allocation, support for social enterprises and social infrastructure, and just transition measures.

Key points

  1. Adds that strengthening competitiveness must complement the Union's social acquis and the European Pillar of Social Rights, with high social standards and no one left behind.
  2. Adds skills development of the workforce, a just transition supporting quality employment, and workforce transformation to the regulation's aims.
  3. Adds that the Fund should reduce competitiveness disparities between member states and regions by supporting quality jobs, skills and industrial capabilities, including capacity-building and simplified access to funding.
  4. Adds that industrial transformation should be territorially anchored to maintain productive capacity, prevent abrupt deindustrialisation and support quality employment and regional cohesion.
  5. Requires work programmes to include a dedicated part on skills development coherent with the Union of Skills, and adds a preference for products manufactured in the EU or EFTA States where necessary.
  6. Extends the ECF InvestEU Instrument to quality employment, a just transition, social infrastructure including housing, microfinance, social enterprise finance and education and training.
  7. Adds that the Fund may support temporary resilience measures in response to major economic shocks or geopolitical disruptions threatening strategic industrial capacity or value chains.
  8. Adds that at least 7% of each policy window's dedicated financial envelope shall be allocated to skills development and workforce adaptation linked to the supported strategic sectors.
  9. Adds a definition of 'quality employment' covering stable employment, adequate wages, decent working conditions, skills development and the right to negotiate collective agreements.
  10. Adds a definition of 'social enterprise' and includes social enterprises among the beneficiaries of the Fund's SME and scale-up support.
  11. Requires the ECF InvestEU Instrument to support housing and social investments using funds from the EU Facility under the National and Regional Partnership Plans regulation.
  12. Requires the Commission to publish the assessment methodology for the Competitiveness Seal and allows award conditions to include contributing to skills development.

Who is affected

  • Workers and jobseekers in strategic sectors, who would gain access to upskilling, reskilling and just transition measures.
  • Small and medium-sized enterprises, start-ups, scale-ups and social enterprises, which would get easier access to finance and advisory services.
  • Less developed regions and cohesion countries, which would receive support to reduce competitiveness disparities and build skills.
  • Social partners, education and training providers, and regional and local authorities, which would be involved in the ECF Strategic Stakeholder Board and consultations.
  • Companies receiving ECF funding, which would face participation, performance and transfer restrictions and possible recovery of funds.

Figures and deadlines

  • 7% of each policy window's dedicated financial envelope for skills development and workforce adaptation.
  • At least 7% of the indicative amounts distributed pursuant to points (b), (c), (d) and (e) for skills development.
  • Transfer restrictions apply during or within 5 calendar years after the end of an action.
  • Members of the ECF Strategic Stakeholders Board serve a term limited to four years, renewable once.

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AMENDMENTS

The Committee on Employment and Social Affairs submits the following to the Committee on Industry, Research and Energy, as the committee responsible:

Amendment 1

Proposal for a regulation

Recital 2

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(2) The Union is facing a defining period for its future, from a political, economic, social, environmental, climate and security perspective, including increased risks of conventional military threats. The Draghi report on the future of European Competitiveness3 presented a new vision to reignite sustainable growth in Europe. The Letta report4 outlined that Europe must leverage its Single Market to achieve a leadership position in the global competition. The Commission communication on the Competitiveness Compass5 provided a roadmap for boosting competitiveness, building on the recommendations of these reports. The Commission communication on the Clean Industrial Deal6 outlined the need to accelerate decarbonisation, reindustrialisation and innovation, bringing together climate action and competitiveness under one overarching growth. Sectorial Industrial Action Plans, such as Automotive, Steel and Metals and Chemicals aim to ensure the long-term competitiveness, sustainability, and resilience of the European industry. The State of the Digital decade 20257 highlights the urgent need to foster cooperation and increase public and private investments for strengthening Union’s digital leadership, sovereignty and inclusiveness. The Joint White Paper on European Defence Readiness8 underlines the need to massively and rapidly reinvest in defence in support of Europe’s freedom of action. Moreover, the priorities of the Economic Security Strategy further underline the crucial need to secure the Union’s technological edge and de-risk economic relations including by enhancing the resilience of supply chains and thereby reducing dependencies on others. The European Ocean Pact outlines the need to enhance competitiveness and accelerate the strategic transition across the blue economy sectors, focussing especially on decarbonisation and scaling up innovation. As outlined in the Commission Communication on the Road to the next MFF,9 the next Union long-term budget needs to be more focused, simpler, more flexible, and predictable and better deliver on the Union priorities, including bolstering the Union competitiveness.(2) The Union is facing a defining period for its future, from a political, economic, social, environmental, climate and security perspective, including increased risks of conventional military threats. In this context, strengthening the Union’s competitiveness must complement the Union's social acquis and the European Pillar of Social Rights, maintaining and strengthening high social standards and ensuring that the pursuit of competitiveness translates into tangible benefits for all citizens and no one is left behind. The Draghi report on the future of European Competitiveness3 presented a new vision to reignite sustainable growth in Europe. The Letta report4 outlined that Europe must leverage its Single Market to achieve a leadership position in the global competition. The Commission communication on the Competitiveness Compass5 provided a roadmap for boosting competitiveness, building on the recommendations of these reports. The Commission communication on the Clean Industrial Deal6 outlined the need to accelerate decarbonisation, reindustrialisation and innovation, bringing together climate action and competitiveness under one overarching growth agenda. Sectorial Industrial Action Plans, such as Automotive, Steel and Metals and Chemicals aim to ensure the long-term competitiveness, sustainability, and resilience of the European industry. The State of the Digital decade 20257 highlights the urgent need to foster cooperation and increase public and private investments for strengthening Union’s digital leadership, sovereignty, inclusiveness and to close the digital gap. The Joint White Paper on European Defence Readiness8 underlines the need to massively and rapidly reinvest in defence in support of Europe’s freedom of action. Moreover, the priorities of the Economic Security Strategy further underline the crucial need to secure the Union’s technological edge and de-risk economic relations including by enhancing the resilience of supply chains and thereby reducing dependencies on others. The European Ocean Pact outlines the need to enhance competitiveness and accelerate the strategic transition across the blue economy sectors, focussing especially on decarbonisation and scaling up innovation. The European Competitiveness Fund aims at deploying a strong European industrial policy oriented towards specific and decisive goals for the future of European competitiveness, investing in the transition to climate neutrality, as well as limiting dependencies on non-EU countries in critical sectors. As outlined in the Commission Communication on the Road to the next MFF,9 the next Union long-term budget needs to be more focused, simpler, more flexible, and predictable and better deliver on the Union priorities, including bolstering the Union competitiveness while also strengthening social and territorial cohesion.
3 The future of European competitiveness: Report by Mario Draghi, September 2024, https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en3 The future of European competitiveness: Report by Mario Draghi, September 2024, https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en
4 Enrico Letta's Report on the Future of the Single Market, April 2024, https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-letta.pdf.4 Enrico Letta's Report on the Future of the Single Market, April 2024, https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-letta.pdf.
5 Competitiveness compass - European Commission5 Competitiveness compass - European Commission
6 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation, COM(2025) 85 final, 26.2.2025.6 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation, COM(2025) 85 final, 26.2.2025.
7 COM(2025) 290 final State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future.7 COM(2025) 290 final State of the Digital Decade 2025: Keep building the EU's sovereignty and digital future.
8 Joint Communication to the European Parliament, the European Council and the Council on ‘European Economic Security Strategy’, JOIN(2023) 20 final, 20.6.2023.8 Joint Communication to the European Parliament, the European Council and the Council on ‘European Economic Security Strategy’, JOIN(2023) 20 final, 20.6.2023.
9 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The road to the next multiannual financial framework, COM(2025) 46 final, 11.2.2025.9 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The road to the next multiannual financial framework, COM(2025) 46 final, 11.2.2025.

Amendment 2

Proposal for a regulation

Recital 3

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(3) To regain and reinforce its competitive edge, it is essential that the Union revives the innovation cycle by developing its disruptive innovation capacity and investing in emerging, cutting-edge and strategic technologies with significant economic potential. To ensure its autonomy in the global economy, the Union should guarantee its technological and industrial leadership in strategic sectors, starting with critical raw materials supply chains, to develop and manufacture strategic technologies in Europe, as well as mitigate risks affecting its security and resilience emanating from critical external dependencies. This can be done by addressing market failures and suboptimal investment situations, in a proportionate manner and without crowding out private funding, considering the high investment needs for delivering on Union priorities, including for decarbonisation and the digital transition. Greater emphasis should be put on leveraging private sector participation by improving the use of risk-sharing mechanisms between Union funds and private investors, to ensure an efficient use of public funding. This will build upon and further amplify the impact of the progress achieved on the Savings and Investment Union, which will provide the necessary regulatory landscape for private investments to thrive. The use of any additional national resources is without prejudice to the application of Articles 107 and 108 TFEU.(3) To regain and reinforce its competitive edge, it is essential that the Union revives the innovation cycle by developing its disruptive innovation capacity and investing in emerging, cutting-edge and strategic technologies with significant economic, technological, social and environmental potential as well as in related skills development of the workforce and accompanying enabling measures. To ensure its autonomy in the global economy, the Union should guarantee its technological and industrial leadership in strategic sectors, starting with critical raw materials supply chains, to develop and manufacture strategic technologies in Europe, as well as mitigate risks affecting its security and resilience emanating from critical external dependencies. This can be done by addressing market failures and suboptimal investment situations, in a proportionate manner and without crowding out private funding, considering the high investment needs for delivering on Union priorities, including for decarbonisation, digital leadership and the need to ensure a just transition supporting quality employment and workforce transformation. Greater emphasis should be put on leveraging private sector participation by improving the use of risk-sharing mechanisms between Union funds and private investors, to ensure an efficient use of public funding. This will build upon and further amplify the impact of the progress achieved on the Savings and Investment Union, which will provide the necessary regulatory landscape for private investments to thrive. The use of any additional national resources is without prejudice to the application of Articles 107 and 108 TFEU.

Amendment 3

Proposal for a regulation

Recital 4

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(4) This requires that Union funding offers support to businesses and projects along the entire investment journey. This journey encompasses all stages of developing and manufacturing strategic technologies, products and services in Europe, from applied research, through all forms of innovation, scale-up, industrial deployment, to manufacturing and market deployment, including the necessary investment and operational costs support, infrastructure and skills. The investment journey is not linear as all stages feed each other, and ideas for new products or services might arise at any stage. European funding needs to cater for this non-linear reality with increased flexibility of providing support preserving predictability for funding.(4) This requires that Union funding offers support to businesses and projects along the entire investment journey in order to strengthen competitiveness, build long-term capacity and contribute to quality employment. This journey encompasses all stages of developing and manufacturing strategic technologies, products and services in Europe, from applied research, through all forms of innovation, scale-up, industrial deployment, to manufacturing and market deployment, including the necessary investment and operational costs support, particularly for infrastructure and skills development. The investment journey is not linear as all stages feed each other, and ideas for new products or services might arise at any stage. European funding needs to cater for this non-linear reality with increased flexibility of providing support preserving predictability for funding.

Amendment 4

Proposal for a regulation

Recital 5

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(5) This also requires that Union funding facilitates the creation and expansion of innovative and industrial ecosystems, where different actors interact in a synergetic way. Successful ecosystems feature intensive and agile interactions and collaboration between small and large companies, universities research institutions, infrastructure providers, investors as well as public authorities. Without such collaborations within and between individual innovation and industrial ecosystems, innovation potential stays unexploited.(5) This also requires that Union funding facilitates the creation and expansion of innovative and industrial ecosystems, where different actors interact in a synergetic way. Successful ecosystems feature intensive and agile interactions and collaboration between small and large companies, universities research institutions, infrastructure providers, investors as well as public authorities including local and regional authorities, education and training providers including higher and vocational education and training (VET), with the involvement of the social partners and social enterprises where relevant. Without such collaborations within and between individual innovation and industrial ecosystems, innovation potential stays unexploited.

Amendment 5

Proposal for a regulation

Recital 6

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(6) Digital connectivity is crucial to foster collaboration within the ecosystem, accelerating innovation, enabling seamless and secure access to critical digital capacities and solutions across the Union, facilitating cross-border public-private partnerships, and fostering interoperability and cost-effectiveness.(6) Digital connectivity is crucial to foster collaboration within the ecosystem, accelerating innovation, enabling seamless and secure access to critical digital capacities and solutions across the Union, facilitating cross-border public-private partnerships, increasing digital skills and literacy for all and fostering interoperability and cost-effectiveness.

Amendment 6

Proposal for a regulation

Recital 8 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(8a) The ECF aims to unlock the productive, innovative and human potential of all its regions ensuring competitiveness across Europe, contributing to upward social convergence. Less developed regions and cohesion countries represent a significant and underutilised reservoir of industrial capacity, skills, and human capital that are essential for strengthening the Union’s strategic autonomy and long-term competitiveness. The Fund should contribute to reducing competitiveness disparities between Member States and regions by supporting the development of quality jobs, skills, and industrial capabilities. This should include capacity-building measures, improved access to training and skills development and simplified access to funding.

Amendment 7

Proposal for a regulation

Recital 8 b (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(8b) Industrial transformation supported by the Fund should be territorially anchored in order to maintain productive capacity, prevent abrupt deindustrialisation and strengthen regional innovation ecosystems. Investment in strategic technologies should contribute to the long-term viability of industrial sites and their integration into European value chains, thereby supporting quality employment, regional cohesion and responsible industrial ecosystems across the Union.

Amendment 8

Proposal for a regulation

Recital 10

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(10) The Commission should ensure tight coordination and synergies between all Union founding sources in the MFF. For this purpose, the Framework Programme for Research and Innovation will be tightly linked to the ECF: to ensure that the European industry leverages research results funded by the Union to further innovate and produce in Europe. In order to foster synergies, the work programmes adopted under this Regulation should integrate in a specific and dedicated part and ensure coherence with the ‘Competitiveness’ component, Part II ‘Competitiveness and Society’ of the Regulation (EU) [XXX]10 of the European Parliament and of the Council [Horizon Europe Framework programme for Research and Innovation]11 in accordance with the committee procedure set out in this Regulation. Besides, the ECF shall ensure coherence with the types of actions planned to be implemented under the Innovation Fund, notably when developing work programmes.(10) The Commission should ensure tight coordination and synergies between all Union funding sources in the MFF. For this purpose, the Framework Programme for Research and Innovation will be tightly linked to the ECF: to ensure that the European industry leverages research results funded by the Union to further innovate and produce in Europe. In order to foster synergies, the work programmes adopted under this Regulation should integrate in a specific and dedicated part and ensure coherence with the ‘Competitiveness’ component, Part II ‘Competitiveness and Society’ of the Regulation (EU) [XXX]10 of the European Parliament and of the Council [Horizon Europe Framework programme for Research and Innovation]11 in accordance with the committee procedure set out in this Regulation. Further, the work programmes adopted under this Regulation should integrate, in a specific dedicated part, skills development and related investment activities and ensure coherence with the Union of Skills in order to contribute to quality employment and the reduction of skills shortages in strategic sectors, taking into account the advice of the ECF Strategic Stakeholder Board. Besides, the ECF shall ensure coherence with the types of actions planned to be implemented under the Innovation Fund, notably when developing work programmes.
10 OJ L.., p10 OJ L.., p
11 COM(2025) 54311 COM(2025) 543

Amendment 9

Proposal for a regulation

Recital 10 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(10a) In the case of measures concerning strategic products or services, award criteria may include a preference for products and services manufactured in the European Union or EFTA States, where necessary to strengthen European value chains and reduce strategic dependencies, consistent with the objectives of the proposed Industrial Accelerator Act to reinforce European industrial capacity and strategic autonomy.

Amendment 10

Proposal for a regulation

Recital 11

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(11) In order to foster synergies between actions under the ECF and the Innovation Fund, the work programmes of the ECF should ensure coherence with the priorities and types of actions that could be funded under the Innovation Fund. Together, the ECF, Horizon Europe, and the Innovation Fund will provide coherent support to the Union competitiveness.(11) In order to foster synergies between actions under the ECF and the Innovation Fund, the work programmes of the ECF should ensure coherence with the priorities and types of actions that could be funded under the Innovation Fund. Together, the ECF, Horizon Europe, Union of Skills and the Innovation Fund will provide coherent support to the Union competitiveness.

Amendment 11

Proposal for a regulation

Recital 15

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(15) The Draghi report calls for more investment support to close the investment gap and recognises InvestEU as the key risk-sharing instrument to use. The ECF InvestEU Instrument should set up a single budgetary guarantee and deliver financial instruments to support EU competitiveness.(15) The Draghi report calls for more investment support to close the investment gap and recognises InvestEU as the key risk-sharing instrument to use. The ECF InvestEU Instrument should set up a single budgetary guarantee and deliver financial instruments to support EU competitiveness, quality employment and a just transition including support for social infrastructure particularly housing, social investment including microfinance and social enterprise finance and education, training and skills development which can act as strategic enablers to strengthen labour market participation, support workforce availability, enhance human capital, and contribute to social cohesion, sustainable growth and the resilience of the Union economy.

Amendment 12

Proposal for a regulation

Recital 17

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(17) The ECF should facilitate access to funding from Union programmes through user-centric, fast, simpler and harmonised procedures and improve coherence among Union instruments and with Member States investments. The ECF should put beneficiaries of Union funding, and notably industry, SMEs, start-ups and scale-ups, including those established under the upcoming 28th regime, at the centre of the design of Union funding instruments.(17) The ECF should facilitate access to funding from Union programmes through user-centric, fast, simpler and harmonised procedures and improve coherence among Union instruments and with Member States investments. The ECF should put beneficiaries of Union funding, and notably industry, SMEs, start-ups and scale-ups and social enterprises including those established under the upcoming 28th regime, at the centre of the design of Union funding instruments ensuring that smaller beneficiaries are not excluded by administrative or co-financing requirements.

Amendment 13

Proposal for a regulation

Recital 18 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(18a) Where major economic shocks or geopolitical disruptions threaten strategic industrial capacity, the Fund may support temporary resilience measures aimed at preserving productive capacity, safeguarding quality employment and maintaining strategic value chains within the Union. Such measures should contribute to the long-term transformation and competitiveness of supported sectors.

Amendment 14

Proposal for a regulation

Recital 19

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(19) Infrastructure is an essential enabler for European competitiveness. Investments in infrastructure are a necessary condition for the proper functioning of the EU's single market, the green and digital transition and for increasing the Union’s resilience and security. For example, the trans-European transport network fosters sustainable forms of transport, promotes improved multimodal and interoperable digital and transport solutions, thereby contributing to a smooth functioning of the internal market. The trans-European networks for energy are key for a genuine Energy Union to enable the Union’s energy and climate objectives by connecting Union countries’ electricity and clean energy networks to ensure our energy independence and competitiveness. For this, the development of cross-border interconnectors, domestic transmission and distribution grids is essential. The ECF support will work in coherence and complementarity with the Connecting Europe Facility (CEF). It is essential for Europe’s competitiveness to provide for synergies between the development of trans-European networks in energy and transport with strong cross-border impact supported by CEF, and investment support for the decarbonisation, modernisation and expansion of transport, energy and digital infrastructure under ECF.(19) Infrastructure is an essential enabler for European competitiveness. Investments in infrastructure are a necessary condition for the proper functioning of the EU's single market, the green and digital transition and for increasing the Union’s and its citizens’ resilience and security. Infrastructure concerning energy, water, transport, digital connectivity, and social infrastructure such as housing, early childhood education and care, health and long-term care and inclusive education and training including VET play a key role in enabling economic activity, upskilling and reskilling at scale, labour market participation and territorial cohesion and act as strategic enablers of the Union’s competitiveness and resilience. For example, the trans-European transport network fosters sustainable forms of transport, promotes improved multimodal and interoperable digital and transport solutions, thereby contributing to a smooth functioning of the internal market. The trans-European networks for energy are key for a genuine Energy Union to enable the Union’s energy and climate objectives by connecting Union countries’ electricity and clean energy networks to ensure our energy independence and competitiveness. For this, the development of cross-border interconnectors, domestic transmission and distribution grids is essential. The ECF support will work in coherence and complementarity with the Connecting Europe Facility (CEF). It is essential for Europe’s competitiveness to provide for synergies between the development of trans-European networks in energy and transport with strong cross-border impact supported by CEF, and investment support for the decarbonisation, modernisation and expansion of transport, energy and digital infrastructure under ECF.

Amendment 15

Proposal for a regulation

Recital 19 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(19a) Union investment in strategic technologies and industrial capacity can only deliver its full impact where companies and regions have access to the skills required to deploy, operate and scale new technologies. The clean and digital transitions will involve profound changes in production processes, industrial value chains and occupational profiles. Ensuring the availability of a suitably trained workforce and creating quality jobs are key drivers to EU competitiveness and growth through increasing the Union’s productivity and resilience potential and strengthening specialisation in high value-added sectors. Where skills shortages persist, industrial deployment may slow, innovation diffusion may be constrained, and investment may shift to locations where the necessary capabilities are available. Support for skills under the Fund should be targeted to the needs of the strategic sectors, technologies and value chains supported by the Fund, including those undergoing substantial industrial transformation, with a view to facilitating industrial deployment, reducing bottlenecks in production and scale-up and increasing the effectiveness of Union investment.

Amendment 16

Proposal for a regulation

Recital 19 b (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(19b) whereas the Action Plan for the Social Economy adopted by the Commission on 9 December 2021 recognises the key role played by the social economy and social enterprises in strengthening local and regional economies, fostering inclusive growth and supporting territorial cohesion across the Union;

Amendment 17

Proposal for a regulation

Recital 20 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(20a) The Union faces persistent skills shortages in strategic sectors and increasing global competition for highly qualified talent, which affect its capacity to innovate, scale up businesses and develop strategic sectors constituting a barrier to productivity growth and innovation. The 2026 Annual Single Market and Competitiveness Report further highlights that cumbersome recognition procedures for skills and professional qualifications create barriers to entry and reduce labour market mobility, thereby contributing to skills mismatches and labour shortages at both national and Union level. In this context, fair mobility is an important driver of Europe’s economy, and the European Competitiveness Fund should therefore be implemented in coherence with the Union of Skills and efforts to remove barriers to labour mobility in strategic sectors, including through cross-border apprenticeships and enhanced cooperation between Member States, in order to help attract investors, business partners and skilled professionals needed for the Union’s competitiveness and innovation capacity.

Amendment 18

Proposal for a regulation

Recital 21

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(21) The competitive strength of the Union lies in its people. The Competitiveness Compass identifies promoting skills and quality jobs as a horizontal enabler. The European Council Conclusions highlight that “following the Commission communication of 5 March 2025 on a Union of Skills, further efforts should be made to enhance the acquisition, recognition and retention of skills across the EU, from the building of basic skills to engaging in life-long learning, reskilling and upskilling, in line with the European Pillar of Social Rights and its Action Plan”. A strong dialogue is part of this. Human capital is key to the prosperity of the Union, its economic resilience and unique social market economy. It is essential to foster prosperity, including high quality jobs, by boosting productivity growth, making Union industries more competitive and innovative, attracting additional investments, and supporting a dynamic single market and enhanced economic security. The ECF should contribute to the Union of Skills12 by supporting the development of a skilled workforce equipped with the specific skills needed in the strategic investment areas of the Fund, through life-long learning, education, training projects and apprenticeships, and the creation of attractive quality jobs accessible to all and by accompanying ECF investments with skills investment to alleviate skills shortages in the given strategic sector of the ECF and indicate when it is included. This includes a Skills Guarantee that should enable workers in sectors undergoing restructuring to upskill and reskill, in line with relevant national, regional and/or sectoral transition strategies. The ECF should support skills intelligence, upskilling and reskilling, and foster public-private partnerships between universities, VET providers, businesses, in particular SMEs, social partners and applied research institutes. The ECF could also support activities of University Alliances, also in cooperation with employers, to improve their delivery on innovation and the development of skills and talent.(21) The competitive strength of the Union lies in its people. The Draghi and Letta reports and the Competitiveness Compass identify promoting skills and quality jobs as an essential horizontal enabler. The European Council Conclusions highlight that “following the Commission communication of 5 March 2025 on a Union of Skills, further efforts should be made to enhance the acquisition, recognition and retention of skills across the EU, from the building of basic skills to engaging in life-long learning, reskilling and upskilling, in line with the European Pillar of Social Rights and its Action Plan”. A strong dialogue and partnerships between higher education and VET providers, social partners and industry are a part of this. Human capital is key to the prosperity of the Union, its economic resilience and unique social market economy. Investing in large-scale upskilling, reskilling and training of the workforce combined with accompanying enabling measures such as advisory services and outreach, mentoring or training, mobility and care allowances are essential to foster prosperity, including high quality jobs, by boosting productivity growth, making Union industries more competitive and innovative, attracting additional investments, and supporting a dynamic single market and enhanced economic security . The ECF should contribute to the Union of Skills12 by supporting the development of a skilled workforce equipped with the specific skills needed in the strategic investment areas of the Fund, through accessible and quality life-long learning, education, training projects and apprenticeships, formal recognition of skills gained via non-formal and informal learning and the creation of attractive quality jobs accessible to all and by accompanying ECF investments with skills investment to alleviate skills shortages in the given strategic sector of the ECF to ensure that skills needs are addressed systematically. This includes a Skills Guarantee that should enable workers in sectors undergoing restructuring to upskill and reskill, in line with relevant national, regional and/or sectoral transition strategies. The ECF should support skills intelligence, upskilling and reskilling, and foster public-private partnerships between universities, VET providers, businesses, in particular SMEs, social partners, social enterprises and applied research institutes. Monitoring labour market developments, employment outcomes and skills needs linked to sectors supported by the Fund should build, where appropriate, on the work of the European Fair Transition Observatory. The ECF could also support activities of University Alliances, also in cooperation with employers, to improve their delivery on innovation and the development of particularly digital and green skills and talent.
12 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The Union of Skills, COM(2025) 90 final, 5.3.2025.12 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The Union of Skills, COM(2025) 90 final, 5.3.2025.

Amendment 19

Proposal for a regulation

Recital 21 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(21a) Universities play a central role at the intersection of education, research, innovation and industry, and are essential for developing the workforce’s advanced skills and talent required for Europe’s long-term competitiveness. Strengthening transnational alliances of universities can enhance excellence, scale and global attractiveness of the European academic system while supporting the development of strategic technologies and industrial ecosystems. Supporting the structured development of these alliances would help Europe compete with leading global universities and reinforce the Union’s innovation and skilling capacity. In this context, the establishment of a European legal status for alliances of higher education institutions could facilitate deeper cross-border integration and enable them to operate more effectively at European scale thereby contributing to skills development.

Amendment 20

Proposal for a regulation

Recital 21 b (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(21b) European businesses and employers increasingly face shortages of relevant skills, while workers are confronted with rapid changes in the organisation of work and in the skills required in the labour market. At the same time, fragmented systems for the recognition of skills and qualifications continue to limit labour mobility and hinder the efficient matching of skills with labour market demand. An effective culture of lifelong learning is therefore essential to ensure that everyone has the knowledge, skills and competences needed to thrive in society, in the labour market and in their personal lives. In this context, micro-credentials can support more flexible learning pathways by enabling the recognition of short, targeted learning experiences delivered by higher education institutions, vocational education and training providers, adult learning organisations and employers, thereby facilitating upskilling, reskilling and facilitating the cross-border mobility of workers in strategic sectors. The Commission is encouraged to include micro-credentials as part of the skills development activities of the Fund’s work programmes in line with Council Recommendation of 16 June 2022 on a European approach to micro-credentials.

Amendment 21

Proposal for a regulation

Recital 24

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(24) Projects and activities under the Clean Transition and Industrial Decarbonisation window shall promote energy efficiency, integrated renewable energy, new energies, energy renovations, and innovative heating and cooling solutions.(24) Projects and activities under the Clean Transition and Industrial Decarbonisation window shall promote energy efficiency, integrated renewable energy, new energies, energy renovations, and innovative heating and cooling solutions contributing to addressing labour shortages, reducing energy poverty for vulnerable households, improving provision of social and affordable housing, supporting quality employment and strengthening the workforce needed for the clean transition.

Amendment 22

Proposal for a regulation

Recital 24 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(24a) While the twin transitions will be crucial to strengthen Union resilience and competitiveness, they will impact jobs and working conditions as well as regions, sectors and workers unevenly, risking wider inequalities and territorial disparities. The Fund should therefore be implemented in a manner that delivers a just and inclusive transition, supports the anticipation and management of change and ensures that no one is left behind by supporting quality jobs and working conditions and effective access to skills, training, upskilling and reskilling, alongside, where relevant, accompanying enabling measures. Particular attention should be paid to workers who may face increased barriers to access to training, re-employment and career transitions in the context of industrial and technological transformation.

Amendment 23

Proposal for a regulation

Recital 26

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(26) The Union can become a global leader in digital technologies, such as artificial intelligence, digital identity, semiconductors, robotics, quantum technologies, space technologies and others by harnessing the untapped potential of our researchers and industries. The ECF should promote the development and deployment of digital solutions and infrastructures and capacities across the Union for the benefit of the European society and economy.(26) The Union can become a global leader in digital technologies, such as artificial intelligence, digital identity, semiconductors, robotics, quantum technologies, space technologies and others by harnessing the untapped potential of our researchers and industries. The ECF should promote the development and deployment of digital solutions and infrastructures and capacities and skills across the Union for the benefit of the European society and economy.

Amendment 24

Proposal for a regulation

Recital 27

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(27) Chronic underinvestment in the European tech sector is one of the main reasons for the lack of competitiveness of the Union, as compared to our global competitors. Moreover, European sovereignty in digital technologies and infrastructures has become key for our resilience, security and for democracy, as highlighted in the 2025 State of the Digital decade report which also underlined the remaining significant gaps to reach Union’s 2030 goals, notably for the development of Artificial Intelligence (AI) and space technologies, semiconductors, 5G and digital skills.(27) Chronic underinvestment in the European tech sector is one of the main reasons for the lack of competitiveness of the Union, as compared to our global competitors. Moreover, European sovereignty in digital technologies and infrastructures has become key for our resilience, security and for democracy, as highlighted in the 2025 State of the Digital decade report which also underlined the remaining significant gaps to reach Union’s 2030 goals, notably for the development of Artificial Intelligence (AI) and space technologies, semiconductors, 5G, and digital skills development.

Amendment 25

Proposal for a regulation

Recital 31

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(31) A successful deployment of interoperability across borders and sectors has a substantial, untapped potential, especially for the competitiveness of European businesses. Therefore, it is imperative to invest in the development of pan-European digital public infrastructures encompassing interoperable, secure and sovereign digital networks, solutions and services to address the fragmented interoperability landscape across the Union, notably to transform the Member States’ public sector into an interconnected, frictionless, and agile digital ecosystem. The implementation of interoperability by European public administrations at all levels is a precondition for a resilient and innovation-driven public sector which contributes to the Union’s goals of competitiveness, technological sovereignty and security.(31) A successful deployment of interoperability across borders and sectors has a substantial, untapped potential, especially for the competitiveness of European businesses. Therefore, it is imperative to invest in the development of pan-European digital public infrastructures encompassing interoperable, secure and sovereign digital networks, solutions and services to address the fragmented interoperability landscape across the Union, notably to transform the Member States’ public sector into an interconnected, frictionless, and agile digital ecosystem. The implementation of interoperability by European public administrations at all levels is a precondition for a resilient and innovation-driven public sector which contributes to the Union’s goals of social progress, a just transition, competitiveness, technological sovereignty and security.

Amendment 26

Proposal for a regulation

Recital 32

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(32) To improve public health and strengthen the competitiveness of the Union, it is crucial to tackle the rise of communicable and non-communicable diseases through targeted health promotion and disease prevention strategies and continued investments, including into the pharmaceutical and medical devices sectors. Such action, coupled with fostering effective, accessible, and resilient health systems, can significantly boost workforce productivity by improving population health and alleviating labour shortages, while also supporting health systems that drive innovation. Leveraging health data is essential in those efforts, enabling informed decision-making. Moreover, fostering innovation by solidifying the evidence-based path from medical breakthroughs to marketable solutions is key to enhancing Union competitiveness and also beneficial to reinforcing supply security.(32) To improve public health and strengthen the competitiveness of the Union, it is crucial to tackle the rise of communicable and non-communicable diseases through targeted health promotion and disease prevention strategies and continued investments, including into the pharmaceutical and medical devices sectors. Such action, coupled with fostering effective, accessible, and resilient health systems and strengthened occupational health and safety, can significantly boost workforce productivity by improving population health and alleviating labour shortages, while also supporting health systems that drive innovation. Leveraging health data is essential in those efforts, enabling informed decision-making. Moreover, fostering innovation by solidifying the evidence-based path from medical breakthroughs to marketable solutions is key to enhancing Union competitiveness and also beneficial to reinforcing supply security.

Amendment 27

Proposal for a regulation

Recital 39

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(39) The ECF should also support the policy goals of a safer, more secure Europe that is better prepared against security threats, in particular by enhancing European industry competitiveness and strategic autonomy, including maritime and customs security, critical energy and transport infrastructure and civil preparedness. To address increasing security and hybrid threats like terrorism, organised crime, cybercrime, climate disasters and attacks on critical infrastructure, the ECF should support Europe’s efforts to increase its threat awareness, build resilience and boost security investments, and promote preparedness by design across relevant sectors.(39) The ECF should also support the policy goals of a safer, more secure Europe that is better prepared against security threats, in particular by enhancing European industry competitiveness and strategic autonomy, including maritime and customs security, critical energy and transport infrastructure and civil preparedness. To address increasing security and hybrid threats like terrorism, organised crime, cybercrime, climate disasters and attacks on critical infrastructure, the ECF should support Europe’s efforts to increase threat awareness and prevention, build resilience and boost security and civil protection investments, and promote mitigation, adaptation and preparedness by design across relevant sectors.

Amendment 28

Proposal for a regulation

Recital 41 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(41a) As a key horizontal enabling condition, 7% of each policy window’s dedicated financial envelope shall be allocated to actions supporting skills development and workforce adaptation linked to the strategic sectors supported under this Regulation in accordance with Article 30.

Amendment 29

Proposal for a regulation

Recital 44

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(44) To promote the Union’s competitiveness, in addition to its budget, wherever possible the ECF should attract and generate additional assigned external revenues. In this respect, the ECF should be open and facilitate synergies and cooperation for any financial or non-financial contributions that can support the competitiveness objectives, including from Member States, third countries and international organisations.(44) To promote the Union’s competitiveness, in addition to its budget, wherever possible the ECF should attract and generate additional assigned external revenues. In this respect, the ECF should be open and facilitate synergies and cooperation for any financial or non-financial contributions that can support the competitiveness, social progress and just transition objectives, including from Member States, third countries and international organisations.

Amendment 30

Proposal for a regulation

Recital 45

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(45) To promote the resilience of the Union economy, notably by reducing strategic dependencies, the ECF should enable Union preference for support to manufacturing and developing strategic technologies and sectors located in the Union, notably for actions related to Union strategic assets, interests, autonomy or security, in line with Union law and its international commitments. It is essential that European funding contributes to the uptake of strategic technologies developed in the Union and funded through European funding. To support the development and manufacturing in the Union of strategic technologies funded by the Union, the ECF should allow to condition its support through control restrictions, asset transfers restrictions and supply restrictions to the use of specific products and technologies.(45) To promote the resilience of the Union economy, notably by reducing strategic dependencies, the ECF should enable Union preference for support to manufacturing and developing strategic technologies and sectors located in the Union, notably for actions related to Union strategic assets, interests, autonomy or security, in line with Union law and its international commitments. It is essential that European funding contributes to the uptake of strategic technologies developed in the Union and funded through European funding and quality employment.. To support the development and manufacturing in the Union of strategic technologies funded by the Union, the ECF should allow to condition its support through control and participation and performance restrictions, asset transfers restrictions and supply restrictions to the use of specific products and technologies.

Amendment 31

Proposal for a regulation

Recital 47

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(47) The ECF should be open and facilitate synergies with other Union activities that support policy areas closely linked with competitiveness, the including the Framework Programme for Research and Innovation, external policies and programmes in shared management with Member States. This should allow for the combination and cumulation of funding for actions supporting the objectives of more than one Union policy area. Cooperation between the Commission and Member States should be established to ensure consistency and complementarities between the ECF and the Regulation (EU) [XXX] [National and Regional partnership plans] Moreover, support from the Regulation (EU) [XXX] [National and Regional Partnership Plans ] and from the ECF to projects that have been awarded the Competitiveness Seal should be facilitated, taking advantage of the assessment conducted prior to the attribution of the Seal and without prejudice to the State aid rules. The criteria for awarding the Competitiveness Seal should be designed in a manner that can enable to seal to also act as a quality guarantee providing assurances to institutional investors that the project has been appropriately vetted. The Competitiveness Seal should be awarded to high quality projects contributing to the objectives of the ECF. The ECF may be implemented jointly with other Union programmes or other co-donors or co-investors, and those partners should be able to participate in evaluation committees for jointly funded award procedures. The implementation of all those synergy activities should be simple. Reporting and record-keeping requirements for recipients should be reduced, where possible to a single contractual reporting and payment stream with a single set of rules for all support provided.(47) The ECF should be open and facilitate synergies with other Union activities that support policy areas closely linked with competitiveness, the including the Framework Programme for Research and Innovation, external policies and programmes in shared management with Member States. This should allow for the combination and cumulation of funding for actions supporting the objectives of more than one Union policy area. Cooperation between the Commission and Member States should be established to ensure consistency and complementarities between the ECF and the Regulation (EU) [XXX] [National and Regional partnership plans] Moreover, support from the Regulation (EU) [XXX] [National and Regional Partnership Plans ] and from the ECF to projects that have been awarded the Competitiveness Seal should be facilitated, taking advantage of the assessment conducted prior to the attribution of the Seal and without prejudice to the State aid rules. The criteria for awarding the Competitiveness Seal should be designed in a manner that can enable to seal to also act as a quality guarantee providing assurances to institutional investors that the project has been appropriately vetted. The Competitiveness Seal should be awarded to high quality projects contributing to the objectives of the ECF. The ECF may be implemented jointly with other Union programmes or other co-donors or co-investors, and those partners should be able to participate in evaluation committees for jointly funded award procedures. The implementation of all those synergy activities should be simple. Reporting and record-keeping requirements for recipients should be reduced, where possible to a single contractual reporting and payment stream with a single set of rules for all support provided. Where relevant, projects that include a significant component dedicated to skills development, vocational education and training, lifelong learning workforce reskilling and upskilling linked to strategic sectors may be recognised through a specific designation under the Competitiveness Seal, signalling their contribution to strengthening the Union’s skills base.

Amendment 32

Proposal for a regulation

Recital 48

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(48) Union support should focus on the achievement of policy objectives. In all cases, ECF funding should be provided in the form best able to achieve its objectives, while limiting administrative burden for recipients to the absolute minimum. When implementing the budget, the ECF should provide the full toolbox of Union support and ensure synergies between its supported policies, in particular by allowing for simplified common award procedures to pursue objectives of more than one policy. As such, the elimination of burdensome financial reporting through the widest possible use of financing not linked to cost should be pursued as a major simplification measure.(48) Union support should focus on the achievement of policy objectives. In all cases, ECF funding should be provided in the form best able to achieve its objectives, while limiting administrative burden for recipients, especially SMEs, to the absolute minimum. When implementing the budget, the ECF should provide the full toolbox of Union support and ensure synergies between its supported policies, in particular by allowing for simplified common award procedures to pursue objectives of more than one policy. As such, the elimination of burdensome financial reporting through the widest possible use of financing not linked to cost should be pursued as a major simplification measure.

Amendment 33

Proposal for a regulation

Recital 49

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(49) The ECF should support a diverse set of policies contributing to competitiveness, while providing a harmonised baseline set of eligibility criteria to provide policy steer and ensuring a sufficient level of protection of economic and security interests by focusing Union support on recipients in the Member States, including Overseas Countries and Territories. Where necessary, the ECF should establish specific eligibility conditions for strategic sectors and technologies, including underlying value chains, critical Union infrastructures and specific capabilities.(49) The ECF should support a diverse set of policies contributing to competitiveness, while providing a harmonised baseline set of eligibility criteria to provide policy steer and ensuring a sufficient level of protection of economic, social and security interests by focusing Union support on recipients in the Member States, including Overseas Countries and Territories. Where necessary, the ECF should establish specific eligibility conditions for strategic sectors and technologies, including underlying value chains, critical Union infrastructures and specific capabilities.

Amendment 34

Proposal for a regulation

Recital 51

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(51) For financial instruments and the budgetary guarantee to effectively crowd in private money, implementing partners need to be closely associated. This ensures policy steer and alignment, as well as project pipeline generation. The experience and lessons learnt with the implementation of the InvestEU Programme emphasise the importance of investment guidelines in creating this buy-in and providing the necessary predictability and visibility to the implementing partners and investors, in order for them to set up their organisational capacity and originate the pipeline of investments, while allowing the necessary flexibility to ensure an adequate policy steer during implementation. Investment guidelines should include detailed description of the policy areas of intervention and investment focus with a view to ensuring additionality and incentivise crowding in private and public investment in support of the Union’s policy objectives and strategic projects. The investment guidelines should be prepared in consultation with implementing partners to benefit from their market knowledge, and enable them to invest in Union priority areas and incentivise them for more risk taking. To cater for evolving needs and developments, the investment guidelines may be reviewed in the context of the MFF mid-term review.(51) For financial instruments and the budgetary guarantee to effectively crowd in private money, implementing partners need to be closely associated. This ensures policy steer and alignment, as well as project pipeline generation. The experience and lessons learnt with the implementation of the InvestEU Programme emphasise the importance of investment guidelines in creating this buy-in and providing the necessary predictability and visibility to the implementing partners and investors, in order for them to set up their organisational capacity and originate the pipeline of investments, while allowing the necessary flexibility to ensure an adequate policy steer during implementation. Investment guidelines should include detailed description of the policy areas of intervention and investment focus with a view to ensuring additionality and incentivise crowding in private and public investment in support of the Union’s policy objectives and strategic projects. The investment guidelines should be prepared in consultation with the investment committee and implementing partners to benefit from their market knowledge, and enable them to invest in Union priority areas and incentivise them for more risk taking. To cater for evolving needs and developments, the investment guidelines may be reviewed in the context of the MFF mid-term review.

Amendment 35

Proposal for a regulation

Recital 53 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(53a) The ECF work programmes will include skills development and related investment activities in a specific dedicated part.

Amendment 36

Proposal for a regulation

Recital 57

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(57) Multistakeholder consultations, including those of researchers and industry, the social partners, as well as investors, end-users and civil society, from SME, small to large organisations, should contribute to the priorities of the ECF. Those consultations should be structured via advisory boards including the ECF Stakeholder Board whose task should be to provide insights and advise the Commission on policy trends, on investment needs, and on the implementation of the ECF from the perspective of project promoters, with the aim to ensure that feedback from stakeholder communities is reflected in the design of work programmes.(57) Multistakeholder consultations, including those of researchers and industry, the social partners at cross-industry and sectoral level, as well as investors, end-users and civil society, from SME, small to large organisations, should contribute to the priorities of the ECF. Those consultations should be structured via balanced advisory boards including the ECF Strategic Stakeholder Board whose task should be to provide insights and advise the Commission on policy trends, on investment needs, and on the implementation of the ECF from the perspective of project promoters, with the aim to ensure that feedback from stakeholder communities is reflected in the design of work programmes.

Amendment 37

Proposal for a regulation

Recital 58

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(58) Important Projects of Common European Interest (IPCEIs) are a state aid instrument and industrial policy tool assessed by the Commission pursuant to Article 107(3), point (b), TFEU22 . They contribute significantly to economic growth, job creation, the green and digital transition and competitiveness and resilience of the Union industry and economy. IPCEIs make it possible to bring together knowledge, expertise, financial resources, and economic actors throughout the Union and create positive spillover effects for the entire Union. IPCEIs also allow to crowd-in private investments in high-risk projects that are essential to bring breakthrough innovation closer to industrial deployment and infrastructures projects of great importance to the Union with open and non-discriminatory access. Given the commonalities of objectives pursued, the ECF will foster synergies between Union funding and IPCEIs by supporting specific projects integrated within IPCEIs, based on their contribution to Union strategic priorities, such as the resilience of the Union, and on the ability of ECF financing to broaden participation, notably of SMEs, or broaden Member State coverage, as well as increase Union added value.(58) Important Projects of Common European Interest (IPCEIs) are a state aid instrument and industrial policy tool assessed by the Commission pursuant to Article 107(3), point (b), TFEU22. They contribute significantly to economic growth, job creation, the green and digital transition and competitiveness and resilience of the Union industry and economy. IPCEIs make it possible to bring together knowledge, expertise, financial resources, and economic actors throughout the Union and create positive spillover effects for the entire Union. IPCEIs also allow to crowd-in private investments in high-risk projects that are essential to bring breakthrough innovation closer to industrial deployment and infrastructures projects of great importance to the Union with open and non-discriminatory access. Given the commonalities of objectives pursued, the ECF will foster synergies between Union funding and IPCEIs by supporting specific projects integrated within IPCEIs, based on their contribution to Union strategic priorities, such as the resilience of the Union, civil resilience and preparedness and skills development of the workforce and on the ability of ECF financing to broaden participation, notably of SMEs, or broaden Member State coverage, as well as increase Union added value.
22 Communication from the Commission, Criteria for the analysis of the compatibility with the internal market of State aid to promote the execution of important projects of common European interest C/2021/8481 (OJ C 528, 30.12.2021, p. 10).22 Communication from the Commission, Criteria for the analysis of the compatibility with the internal market of State aid to promote the execution of important projects of common European interest C/2021/8481 (OJ C 528, 30.12.2021, p. 10).

Amendment 38

Proposal for a regulation

Recital 63

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(63) Where necessary and duly justified, the ECF should also be able to provide an ‘accelerated intervention’ mechanism to accelerate the provision of Union support to address urgent funding needs to enable the successful implementation of important business ideas in the single market where such funding is not available, at a sufficient level, on the market. For this purpose, due to the urgency, certain checks should be conducted only after the provision of funding, facilitating and limiting administrative burden for recipients and providing financial certainty in the fastest possible manner while accepting a reasonable level of financial risk to the Union commensurate with the objectives pursued.(63) Where necessary and duly justified, the ECF should also be able to provide an ‘accelerated intervention’ mechanism to accelerate the provision of Union support to address urgent funding needs to enable the successful implementation of important strategic projects contributing to the objectives of this Regulation, where such funding is not available, at a sufficient level, on the market. For this purpose, due to the urgency, certain checks should be conducted only after the provision of funding, facilitating and limiting administrative burden for recipients and providing financial certainty in the fastest possible manner while accepting a reasonable level of financial risk to the Union commensurate with the objectives pursued.

Amendment 39

Proposal for a regulation

Recital 65

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(65) Where necessary and duly justified, the ECF should allow for a more flexible and accessible way of identifying, selecting and supporting innovative projects and ideas, including by providing for instrument-neutral award procedures that will allow researchers, entrepreneurs, companies and other citizens to propose their innovation solution without the initial artificial narrowing or limitation of Union support to a grant, procurement or other form of Union support. Ideas should be assessed and selected based on their merit in addressing the respective challenge or Union policy priority, and the most appropriate and effective instrument of budget implementation to support these ideas, whether grant, procurement or others, should be selected only afterwards based on the requirements and merits of the individual project.(65) Where necessary and duly justified, the ECF should allow for a more flexible and accessible way of identifying, selecting and supporting innovative projects and ideas, including by providing for instrument-neutral award procedures that will allow researchers, entrepreneurs, workers, trade unions, companies and other citizens to propose their innovation solution without the initial artificial narrowing or limitation of Union support to a grant, procurement or other form of Union support. Ideas should be assessed and selected based on their merit in addressing the respective challenge or Union policy priority, and the most appropriate and effective instrument of budget implementation to support these ideas, whether grant, procurement or others, should be selected only afterwards based on the requirements and merits of the individual project.

Amendment 40

Proposal for a regulation

Recital 76

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(76) Whereas European innovative start-ups and scale-ups are essential engines of growth and competitiveness, and acknowledging that they face persistent barriers to access necessary financing in the Union, the ECF InvestEU Instrument should provide targeted financial support to growing and scaling up companies in the Union at all stages — from inception and start-up to scale-up and industrial manufacturing. The ECF InvestEU Instrument should provide direct and indirect funding for European companies with a view to attract private investors — thereby unlocking the full potential of European entrepreneurship and investment. This will empower start-ups and scale-ups and reinforce the Union’s global leadership in technology and industry, while bridging Europe’s innovation and investment gaps and delivering on the ambition of the Savings and Investment Union. The ECF InvestEU Instrument would include a facility aiming to ensure that high-growth enterprises developing or deploying innovative technologies, including in areas important for the Union’s strategic interests and economic security, can access adequate capital to scale up their businesses. It will mobilise investments from Europe’s capital markets, in line with Union’s policy priorities.(76) Whereas European innovative start-ups and scale-ups are essential engines of growth and competitiveness, and acknowledging that they face persistent barriers to access necessary financing in the Union, the ECF InvestEU Instrument should provide targeted financial support to growing and scaling up companies in the Union at all stages — from inception and start-up to scale-up and industrial manufacturing while taking into account the need for geographical balance and support to less-developed regions in building skills and innovation that will help regions to tackle challenges such as innovation and investment gaps and brain drain. The ECF InvestEU Instrument should provide direct and indirect funding for European companies with a view to attract private investors — thereby unlocking the full potential of European entrepreneurship and investment. This will empower start-ups and scale-ups and reinforce the Union’s global leadership in technology and industry, while bridging Europe’s innovation and investment gaps and delivering on the ambition of the Savings and Investment Union. The ECF InvestEU Instrument should facilitate the access to finance and address the specific needs of social enterprise actors, fostering their growth, innovation, and contribution to local development across sectors. The ECF InvestEU Instrument would include a facility aiming to ensure that high-growth enterprises developing or deploying innovative technologies, including in areas important for the Union’s strategic interests and economic security, can access adequate capital to scale up their businesses. It will mobilise investments from Europe’s capital markets, in line with Union’s policy priorities.

Amendment 41

Proposal for a regulation

Recital 79

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(79) However, access to finance is an important barrier for SMEs, especially for start-ups and scale-ups, as they often rely on external financing to support their growth plans. SMEs face further barriers to innovation and growth that do not affect larger firms to the same extent, for example the lack of entrepreneurial skills, lack of access technology infrastructure, difficulties in protecting intellectual property or accessing export markets and value chains in order to develop their internationalisation activities.(79) However, access to finance is an important barrier for SMEs and social enterprises, especially for start-ups and scale-ups, as they often rely on external financing to support their growth plans. SMEs and social enterprises, face further barriers to innovation and growth that do not affect larger firms to the same extent, for example the lack of entrepreneurial skills, lack of capacity for the provision of workforce skills development, lack of access technology infrastructure, difficulties in protecting intellectual property or accessing export markets and value chains in order to develop their internationalisation activities.

Amendment 42

Proposal for a regulation

Recital 80

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(80) Evidence shows that direct financial support to SMEs is not enough on its own to support their scaling-up and that they need and benefit from dedicated advice at Union level. Providing advice on Single Market rules, innovation and access to finance contributes to Union competitiveness. Moreover, business support at local, regional and national level is diverse and should also connect less developed and outermost regions. Existing Union initiatives such as the Enterprise Europe Network, European Cluster Collaboration Platform and European Digital Innovation Hubs have helped bridge this gap. Accordingly, an ‘EU for Business Network’ shall be established, building on the Enterprise Europe Network (EEN), the European Cluster Collaboration Platform (ECCP) and other networks, to simplify and streamline advisory and partnership services.(80) Evidence shows that direct financial support to SMEs and social enterprises is not enough on its own to support their scaling-up and that they need and benefit from dedicated advice at Union level. Providing advice on Single Market rules, innovation and access to finance contributes to Union competitiveness. Moreover, business support at local, regional and national level is diverse and should also connect less developed and outermost regions. Existing Union initiatives such as the Enterprise Europe Network, European Cluster Collaboration Platform and European Digital Innovation Hubs have helped bridge this gap. Accordingly, an ‘EU for Business Network’ shall be established, building on the Enterprise Europe Network (EEN), the European Cluster Collaboration Platform (ECCP), SME Envoy Network and other networks, to simplify and streamline advisory and partnership services.

Amendment 43

Proposal for a regulation

Recital 81

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(81) The ECF will support SME’s access to finance and strengthen the competitiveness of the Union SMEs via two main avenues: First, in addition to the EU for Business Network, the ECF will also conduct additional cross-cutting activities focused on strengthening the competitiveness of SMEs. Second, the ECF policy windows should include dedicated SME actions targeting SMEs in strategic sectors, such as bonus systems to encourage SME participation, with a view to fostering SME innovation, growth and scaling-up. Special support may be granted for access to and the availability of finance for SMEs and small mid-cap companies across all sectors of the economy, including micro-finance, support for social enterprises. Furthermore, a flexible financial toolbox under the ECF should ensure that SMEs could receive the type of support that best fits their needs along their investment journey.(81) The ECF will support SME’s and social enterprises’ access to finance and strengthen the competitiveness of the Union SMEs and social enterprises, via two main avenues: First, in addition to the EU for Business Network, the ECF will also conduct additional cross-cutting activities focused on strengthening the competitiveness of SMEs. Second, the ECF policy windows should include dedicated SME actions targeting SMEs in strategic sectors, such as bonus systems to encourage SME participation, with a view to fostering SME innovation, growth and scaling-up. Special support may be granted for access to and the availability of finance for SMEs, small mid-cap companies and social enterprises across all sectors of the economy, including micro-finance and support for social enterprises. Furthermore, a flexible financial toolbox under the ECF should ensure that SMEs could receive the type of support that best fits their needs along their investment journey.

Amendment 44

Proposal for a regulation

Article 1 – paragraph 2 – introductory part

Amendment: Text proposed by the Commission and Unchanged text included in the compromise
Text proposed by the CommissionUnchanged text included in the compromise
2. This Regulation lays down:2. This Regulation lays down:

Amendment 45

Proposal for a regulation

Article 1 – paragraph 2 – point a

Amendment: Text proposed by the Commission and Unchanged text included in the compromise
Text proposed by the CommissionUnchanged text included in the compromise
(a) A ‘Clean Transition and Industrial Decarbonisation’ window – implemented through the activities set out in Chapter II and Chapter IV, and contributing to the specific objectives set out in Article 3(2), point (a);(a) A ‘Clean Transition and Industrial Decarbonisation’ window – implemented through the activities set out in Chapter II and Chapter IV, and contributing to the specific objectives set out in Article 3(2), point (a);

Amendment 46

Proposal for a regulation

Article 1 – paragraph 2 – point b

Amendment: Text proposed by the Commission and Unchanged text included in the compromise
Text proposed by the CommissionUnchanged text included in the compromise
(b) A ‘Health, Biotech, Agriculture and Bioeconomy’ window – implemented through the activities set out in Chapter II and Chapter V, and contributing to the specific objectives set out in Article 3(2), point (b);(b) A ‘Health, Biotech, Agriculture and Bioeconomy’ window – implemented through the activities set out in Chapter II and Chapter V, and contributing to the specific objectives set out in Article 3(2), point (b);

Amendment 47

Proposal for a regulation

Article 1 – paragraph 2 – point c

Amendment: Text proposed by the Commission and Unchanged text included in the compromise
Text proposed by the CommissionUnchanged text included in the compromise
(c) A ‘Digital Leadership’ window – implemented through the activities set out in Chapter II and Chapter VI, and contributing to the specific objectives set out in Article 3(2), point (c);(c) A ‘Digital Leadership’ window – implemented through the activities set out in Chapter II and Chapter VI, and contributing to the specific objectives set out in Article 3(2), point (c);

Amendment 48

Proposal for a regulation

Article 1 – paragraph 2 – point d

Amendment: Text proposed by the Commission and Unchanged text included in the compromise
Text proposed by the CommissionUnchanged text included in the compromise
(d) A ‘Resilience and Security, Defence Industry, and Space’ window – implemented through activities set out in Chapter II and Chapter VII, including the specific programme for defence research and innovation referred to in paragraph 1, and contributing to the specific objectives set out in Article 3(2), point (d).(d) A ‘Resilience and Security, Defence Industry, and Space’ window – implemented through activities set out in Chapter II and Chapter VII, including the specific programme for defence research and innovation referred to in paragraph 1, and contributing to the specific objectives set out in Article 3(2), point (d).

Amendment 49

Proposal for a regulation

Article 1 – paragraph 3

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
3. The Regulation also sets up a legal framework aiming at ensuring security of supply, removing investment obstacles and production bottlenecks and supporting the competitiveness of the Union’s industrial base.3. The Regulation also sets up a legal framework aiming at ensuring security of supply, removing investment obstacles and production bottlenecks and supporting the competitiveness of the Union’s industrial base, in accordance with the Union’s climate objectives and commitment to a clean and just transition.

Amendment 50

Proposal for a regulation

Article 2 – paragraph 1 – point 2 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(2a) ‘Competitiveness’ means the capacity of workers, undertakings and sectors for ideation, innovation, adaption, productivity and growth both within the internal market and globally in order to promote a sustainable, resilient and inclusive European economy, which strengthens the Union’s strategic autonomy thereby contributing to improved living conditions and the creation of quality employment;

Amendment 51

Proposal for a regulation

Article 2 – paragraph 1 – point 11

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(11) ‘Investment journey’ means the continuum of public and private financial support and policy support mechanisms provided to recipients across its entire development chain, including a comprehensive series of activities involved in the allocation of financial resources and provision of support to foster innovation and economic growth. This journey includes, but is not limited to, the initiation from fundamental and applied research phases, progressing through stages of scaling up, industrial deployment, and advancing to the culmination in full-scale manufacturing and industrial maturity and internationalisation;(11) ‘Investment journey’ means the continuum of public and private financial support and policy support mechanisms provided to recipients across its entire development chain, including a comprehensive series of activities involved in the allocation of financial resources and provision of support to foster innovation and sustainable economic growth. This journey includes, but is not limited to, the initiation from fundamental and applied research phases, progressing through stages of scaling up, industrial deployment, and advancing to the culmination in full-scale manufacturing and industrial maturity and internationalisation including necessary skills development and workforce transformation measures;

Amendment 52

Proposal for a regulation

Article 2 – paragraph 1 – point 19 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(19a) ‘social enterprise’ means an undertaking, regardless of its legal form, including social economy enterprises, or a natural person which:
(a) in accordance with its articles of association, statutes or with any other legal document that may result in liability under the rules of the Member State where a social enterprise is located, has the achievement of measurable, positive social impacts, which may include environmental impacts, as its primary social objective rather than the generation of profit for other purposes, and which provides services or goods that generate a social return or employs methods of production of goods or services that embody social objectives;
(b) uses its profits first and foremost to achieve its primary social objective, and has predefined procedures and rules that ensure that the distribution of profits does not undermine the primary social objective;
(c) is managed in an entrepreneurial, participatory, accountable and transparent manner, in particular by involving workers, customers and stakeholders on whom its business activities have an impact;

Amendment 53

Proposal for a regulation

Article 2 – paragraph 1 – point 20

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(20) ‘Stakeholders' means individuals, groups, or organizations that are affected by and can be involved in the programme implementation;(20) ‘Stakeholders' means individuals, groups, or organizations that are affected by and can be involved in the programme implementation including the social partners, relevant civil society organizations, local and regional authorities and industry, research and innovation experts;

Amendment 54

Proposal for a regulation

Article 2 – paragraph 1 – point 21

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(21) ‘Infrastructure’ means all physical and virtual elements necessary for the provision of services and economic activities, including networks, grids and assets, as well as mobile assets linked to infrastructure, fostering decarbonisation, resilience, efficiency, digitalisation, and interoperability;(21) ‘Infrastructure’ means all physical and virtual elements necessary for the provision of services, including essential services, and economic activities, including networks, grids and assets, as well as mobile assets linked to infrastructure, supporting the functioning of the economy, labour markets and territorial cohesion and fostering skills development, decarbonisation, resilience, efficiency, digitalisation, and interoperability;

Amendment 55

Proposal for a regulation

Article 2 – paragraph 1 – point 21 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(21a) “quality employment” means employment that is stable and offers adequate wages, decent working conditions including health and safety, and provides opportunities for skills development, up- and re- reskilling and respects the right to negotiate and conclude collective agreements in line with applicable Union and national law;

Amendment 56

Proposal for a regulation

Article 3 – paragraph 1 – introductory part

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
1. The general objective of the ECF is to increase European competitiveness, notably in strategic sectors and technologies along the investment journey by:1. The general objective of the ECF is to increase European competitiveness, in alignment with the principles of the European Pillar of Social Rights, notably in strategic sectors and technologies along the investment journey by:

Amendment 57

Proposal for a regulation

Article 3 – paragraph 1 – point a

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(a) delivering technological, economic and environmental impact from the Union's investments, including by developing disruptive and incremental innovation, and emerging, cutting-edge, dual-use, and strategic technologies with significant economic potential, including by developing and accelerating their manufacturing and industrial deployment;(a) delivering positive technological, economic, social, employment and environmental impact from the Union's investments, including by developing disruptive and incremental innovation, and emerging, cutting-edge, dual-use, and strategic technologies with significant economic potential, including by developing and accelerating their manufacturing and industrial deployment alongside the strengthening of industrial ecosystems, workforce skills and the creation of quality employment in supported sectors;

Amendment 58

Proposal for a regulation

Article 3 – paragraph 1 – point b

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(b) reducing or preventing the Union’s strategic dependencies, and reinforcing the Union’s resilience, and economic security, including through diversifying sources and markets, support to ramp up of European production of strategic technologies and creating, strengthening and protecting critical Union value chains and infrastructure;(b) reducing or preventing the Union’s strategic dependencies, and reinforcing the Union’s resilience, and economic security, including through diversifying sources and markets, strengthening cooperation with trusted partners, support to ramp up of European production of strategic technologies and creating, strengthening and protecting critical Union value chains and infrastructure;

Amendment 59

Proposal for a regulation

Article 3 – paragraph 1 – point e

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(e) aligning research, innovation and industrial policy support to translate Union’s research excellence into Union industrial strength on global markets and securing the future of manufacturing in Europe;(e) aligning research, innovation and industrial policy support to translate Union’s research excellence into Union industrial strength on global markets and securing the future of manufacturing and quality employment in Europe;

Amendment 60

Proposal for a regulation

Article 3 – paragraph 1 – point f

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(f) developing Union cross-border and critical infrastructure key to the Union’s competitiveness, and strategic independence in particular energy and transport, digital and security, defence and space infrastructure as well as social infrastructure and related data and services;(f) developing and reinforcing Union cross-border and critical infrastructure key to the Union’s competitiveness, and strategic independence, including EU eastern regions bordering Russia, Belarus and Ukraine, in particular energy and transport, digital and security, defence and space infrastructure and social infrastructure for example addressing social and affordable housing, early childhood education and care, health and long-term care, and inclusive education and training including VET, as well as related data and services;

Amendment 61

Proposal for a regulation

Article 3 – paragraph 1 – point g

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(g) strengthening the competitiveness of SMEs and small mid-cap companies established in the Union and their ability to grow and scale up, in particular by improving their access to finance, including private investment, micro-finance and support to social enterprises as facilitating access to Union funding, through faster, simplified and harmonised procedures; reducing and ensuring a proportionate reporting burden;(g) strengthening the competitiveness of SMEs, small mid-cap companies and social enterprises established in the Union and their innovation capacity and ability to grow and scale up, in particular by improving their access to finance, including private investment, micro-finance and support to social enterprises and facilitating access to Union funding, through faster, simplified and harmonised procedures; reducing and ensuring a proportionate reporting burden; supporting entrepreneurial and business skills and contributing to the resilience of local and regional value chains;

Amendment 62

Proposal for a regulation

Article 3 – paragraph 1 – point h

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(h) addressing shortages of skills critical to all kinds of quality jobs in strategic sectors for EU competitiveness, through both horizontal and specific skills investment, contributing to the availability of skills in future emerging technologies, and by pursuing to accompany investments with skills investment and indicate when it is included;(h) supporting human capital development and the maintenance and creation of quality employment by addressing shortages of skills critical to promoting quality jobs in particular in strategic sectors for EU competitiveness, through the provision of skills development and both horizontal and specific skills investment, including targeted upskilling, reskilling and vocational education and training of the workforce and measures supporting workers affected by industrial restructuring and technological transformation, contributing to the availability of skills in future emerging technologies, and by pursuing to accompany investments with skills investment with a view to long-term competitiveness and the effectiveness of the EU investment;

Amendment 63

Proposal for a regulation

Article 3 – paragraph 1 – point k

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(k) ensuring a just transition to a sustainable, decarbonised and digital economy that is fair and supporting workers and communities.(k) supporting measures to ensure a just transition to a sustainable, decarbonised and digital economy that is fair, inclusive and which contributes to quality employment and job creation thereby supporting workers, households and communities including in transition affected regions;

Amendment 64

Proposal for a regulation

Article 3 – paragraph 1 – point k a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(ka) supporting, where necessary and duly justified, temporary resilience measures in response to major economic shocks or geopolitical disruptions that threaten strategic industrial capacity or value chains in the Union, with a view to preserving productive capacity, safeguarding quality employment and maintaining strategic value chains, while ensuring that such measures contribute to long-term transformation and competitiveness of the supported sectors.

Amendment 65

Proposal for a regulation

Article 3 – paragraph 2 – point a

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(a) For support to Clean Transition and Industrial Decarbonisation, the specific objectives of support to decarbonisation of European industry, including SMEs and energy intensive industries, clean tech manufacturing and its supply chains, and contributing to the shift towards a sustainable, circular, energy-, water- and resource-efficient, climate-neutral and resilient economy. This includes the uptake by industries of decarbonisation technologies and other solutions for their industrial processes and activities, as well as the decarbonisation of energy supply, promotion of energy efficiency, the uptake of renewable and clean energy solutions, the development of energy system flexibility, the uptake of lead markets for clean products , the development, resilience, integration and digitalisation of the energy and transport infrastructures and systems, boosting smart mobility and sustainable alternative fuels, as well as boosting the sustainable blue economy, the development of innovative nature-based business models and demand side solutions for clean and decarbonised buildings, transport and industry, and production ramp up contributing to Europe’s strategic autonomy.(a) For support to Clean Transition and Industrial Decarbonisation, the specific objectives of support to decarbonisation of European industry, including SMEs and energy intensive industries, clean tech manufacturing and its supply chains, and contributing to the shift towards a sustainable, circular, energy-, water- and resource-efficient, climate-neutral and resilient economy. This includes the uptake by industries of decarbonisation technologies and other solutions for their industrial processes and activities, as well as the decarbonisation of energy supply, promotion of energy efficiency, the provision of skills development, particularly measures to support workers in the just transition, the uptake of renewable and clean energy solutions, the development of energy system flexibility, the uptake of lead markets for clean products , the development, resilience, integration and digitalisation of the energy and transport infrastructures and systems, boosting smart mobility and sustainable alternative fuels, as well as boosting the sustainable blue economy, the development of innovative nature-based business models and demand side solutions for clean and decarbonised buildings, transport and industry, and production ramp up contributing to Europe’s strategic autonomy.

Amendment 66

Proposal for a regulation

Article 3 – paragraph 2 – point b – point 1

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(1) For support to health, the specific objectives of fostering innovation and competitiveness of the health sector while ensuring supply security and the industrial capacity and capability to manage future serious cross-border threats to health; improving and protecting public and population health, by prioritising health promotion and disease prevention across the life span through a health-in-all and One Health policies approach, and by strengthening innovation and resilience of health systems.(1) For support to health, the specific objectives of fostering innovation, competitiveness and skills development of the health sector while ensuring supply security, and the industrial capacity and capability to manage future serious cross-border threats to health; improving and protecting public and population health, by prioritising health promotion and disease prevention across the life span through a health-in-all and One Health policies approach, and by strengthening innovation and resilience of health systems including through investment in the health workforce.

Amendment 67

Proposal for a regulation

Article 3 – paragraph 2 – point b – point 4

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(4) For support to the agriculture and food security, the specific objective of fostering the competitiveness, sustainability, and resilience of the agriculture, fisheries and aquaculture, forestry and rural and coastal areas and their role in the transition to a climate-neutral climate-resilient, water-smart, nature-positive economy and the protection of natural resources biodiversity while contributing to long term food security in the Union.(4) For support to the agriculture and food security, the specific objective of fostering the competitiveness, sustainability, skills and resilience of the agriculture, fisheries and aquaculture, forestry sectors and rural and coastal areas and their role in the transition to a climate-neutral climate-resilient, water-smart, nature-positive economy and the protection of natural resources biodiversity while contributing to long term food security in the Union.

Amendment 68

Proposal for a regulation

Article 3 – paragraph 2 – point c

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(c) For support to Digital Leadership policy, the specific objectives of fostering innovation and competitiveness of digital sector for a competitive and secure Union and bringing its benefits to citizens and society, public administrations and businesses across the Union. This shall include, but not be limited to, supporting the entire digital value- and supply-chains and activities including support to start-ups, scale-ups and SMEs, in particular along the following dimensions: Achieving leadership in digital and AI technologies, including through technology transfer and innovation, and through cutting-edge infrastructures such as AI-powered digital twins; Achieving technological sovereignty by building resilient digital ecosystems and ensuring a high-level of cybersecurity in the Union; Enabling the power of digital for businesses and citizens by deploying advanced digital applications and services, infrastructures, capacities and capabilities and by reinforcing interoperability across the Union, Including support to digitalisation of companies, including SMEs, small mid-cap companies, start-ups and scale-ups; Supporting the digital transformation and interoperability of public and private sectors through the rapid uptake of AI, the wallet technologies, such as EU Digital Identity Wallets and trust services established pursuant to Regulation (EU) No 910/2014 and the forthcoming European Business Wallets and other digital innovative solutions. Support to cultural and creative industries, complementing the AgoraEU programme.(c) For support to Digital Leadership policy, the specific objectives of fostering innovation and competitiveness of digital sector for a competitive and secure Union and bringing its benefits to citizens and society, public administrations, workers and businesses across the Union while contributing to the twin transition and ensuring environmental and social standards. This shall include, but not be limited to, supporting the entire digital value- and supply-chains and activities including support to start-ups, scale-ups and SMEs, in particular along the following dimensions: Achieving leadership in digital and AI technologies, including through technology transfer and innovation, and through cutting-edge infrastructures such as AI-powered digital twins; Achieving technological sovereignty by building resilient digital ecosystems and ensuring a high-level of cybersecurity in the Union; Enabling the power of digital for businesses, and citizens by deploying advanced digital applications and services, infrastructures, capacities and capabilities, and the provision of digital skills development and specialised ICT competences, including targeted upskilling and reskilling of the workforce and by reinforcing interoperability across the Union, Including support to digitalisation of companies, including SMEs, small mid-cap companies, start-ups and scale-ups; Supporting the digital transformation and interoperability of public and private sectors through the rapid uptake of AI, the wallet technologies, such as EU Digital Identity Wallets and trust services established pursuant to Regulation (EU) No 910/2014 and the forthcoming European Business Wallets and other digital innovative solutions. Support to cultural and creative industries, complementing the AgoraEU programme.

Amendment 69

Proposal for a regulation

Article 3 – paragraph 2 – point d – point 1

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(1) For support to resilience of supply chains, the specific objectives of reinforcing Europe’s resilience by strengthening the Union capacity in exploration, extraction, processing and recycling of raw materials and diversifying supply sources and markets, and improving the timely availability of such products, including through the reduction of their delivery lead time, reservation of manufacturing slots or stockpiling of products, intermediate products or raw materials.(1) For support to resilience of supply chains, the specific objectives of reinforcing Europe’s resilience by strengthening the Union capacity in exploration, extraction, processing and recycling of raw materials and diversifying supply sources and markets, and improving the timely availability of such products, including through the reduction of their delivery lead time, reservation of manufacturing slots or stockpiling of products, intermediate products or raw materials, including through measures aimed at developing specialised skills required for strategic value chains across Europe.

Amendment 70

Proposal for a regulation

Article 3 – paragraph 2 – point d – point 2

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(2) For support to EU defence industry. the specific objectives of promoting defence industrial readiness of the Union and its Member States through the strengthening of the competitiveness, responsiveness and ability of the European Defence Technological and Industrial Base (EDTIB), including support to start-ups, scale-ups and SMEs, fostering an innovative EU defence ecosystem; Collaborative research and development of defence products and technologies, including disruptive technologies for defence; Cooperation throughout the life-cycle of defence equipment, in particular in defence procurement and for the development of European defence projects of common interest; Adjustment of industry to structural changes.(2) For support to EU defence industry. the specific objectives of promoting defence industrial readiness of the Union and its Member States through the strengthening of the competitiveness, responsiveness, skills development and ability of the European Defence Technological and Industrial Base (EDTIB), including support to start-ups, scale-ups and SMEs, fostering an innovative EU defence ecosystem; Collaborative research and development of defence products and technologies, including disruptive technologies for defence; Cooperation throughout the life-cycle of defence equipment, in particular in defence procurement and for the development of European defence projects of common interest; Adjustment of industry to structural changes.

Amendment 71

Proposal for a regulation

Article 3 – paragraph 2 – point d – point 3

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(3) For the implementation of EU space systems and space policy, the specific objectives of developing, maintaining and operating space systems, providing cutting-edge space-based information, data and services supporting Union policies, notably in the area of security, defence, sustainable growth, environment protection and climate resilience, global engagement and strategic independence; Maximising the socio-economic benefits of space-based activities, in particular by fostering the development of an innovative and competitive Union space economy and supporting the development of a genuine Single Market for space activities, including collaborative research and innovation for space products and technologies and support to SMEs; Enhancing the safety, security and sustainability of all outer space activities; Promoting the role of the Union as a global actor in the space sector.(3) For the implementation of EU space systems and space policy, the specific objectives of developing, maintaining and operating space systems, providing cutting-edge space-based information, data and services supporting Union policies, notably in the area of security, defence, sustainable growth, environment protection and climate resilience, global engagement and strategic independence; Maximising the socio-economic benefits of space-based activities, in particular by fostering the development of an innovative and competitive Union space economy and supporting the development of a genuine Single Market for space activities, including collaborative research and innovation for space products, skills development and technologies and support to SMEs; Enhancing the safety, security and sustainability of all outer space activities; Promoting the role of the Union as a global actor in the space sector.

Amendment 72

Proposal for a regulation

Article 3 – paragraph 2 – point d – point 4

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(4) For support to civil industrial security, the specific objectives of strengthening the competitiveness and responsiveness of the European civil security industry, in the application areas of security, resilience of critical and dual-use infrastructures, technologies including critical energy infrastructure, and solutions for the control of goods and persons at borders, the protection of borders, maritime security, customs security and civil preparedness against security threats, as well as reinforcing the capabilities of the relevant end-users in the civil security sector.(4) For support to civil industrial security, the specific objectives of strengthening the competitiveness and responsiveness and skills development of the European civil security industry, in the application areas of security, resilience of critical and dual-use infrastructures, technologies including critical energy infrastructure, and solutions for the control of goods and persons at borders, the protection of borders, maritime security, customs security and civil preparedness against security threats, as well as reinforcing the capabilities of the relevant end-users in the civil security sector.

Amendment 73

Proposal for a regulation

Article 4 – paragraph 2 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
2a. At least 7% of the indicative amounts distributed pursuant to points (b), (c), (d) and (e) shall be allocated to actions supporting skills development linked to the strategic sectors supported under this Regulation in accordance with Article 30. The allocation distributed pursuant to the first subparagraph shall be directly connected to supported industrial investments and shall not include general education or unrelated labour market measures.

Amendment 74

Proposal for a regulation

Article 5 – paragraph 5 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
5a. Funds from the EU Facility established under Regulation [XXXX/XXXX] (NRPPs) may be committed to the ECF to be spent on support to actions under Article 22a “Housing and Social Investments” through the ECF InvestEU Instrument. The budget provided for in Article 4 of this Regulation shall not be used to finance or support those actions.

Amendment 75

Proposal for a regulation

Article 7 – paragraph 2

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
2. The Commission and Member States shall, in a manner commensurate to their respective responsibilities, facilitate coordination and coherence between European Competitiveness Fund and national and regional partnership plans on common competitiveness priorities in selected key areas and projects deemed of strategic importance and of common European interest.2. The Commission and Member States shall, in a manner commensurate to their respective responsibilities, facilitate coordination and coherence between European Competitiveness Fund and national and regional partnership plans on common competitiveness priorities in selected key areas and projects deemed of strategic importance and of common European interest, including the provision of skills development, in particular measures to support workers in the just transition.

Amendment 76

Proposal for a regulation

Article 8 – paragraph 1 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
1a. The award of the Competitiveness Seal shall be based on objective, transparent and predefined criteria. The Commission shall publish the assessment methodology.

Amendment 77

Proposal for a regulation

Article 8 – paragraph 2

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
2. The work programme or the documents related to the award procedure may set out additional conditions.2. The work programme or the documents related to the award procedure may set out additional conditions such as contributing to skills development necessary for the deployment of strategic technologies, industrial transformation or innovation ecosystems, including through training, vocational education and training or lifelong learning activities.

Amendment 78

Proposal for a regulation

Article 9 – paragraph 4 – point a

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(a) activities that are prohibited by Union law, applicable international law, or by national law in all Member States;(a) activities that are prohibited by Union law, applicable international law, or by national law or collective agreements in all Member States including activities that do not comply with applicable obligations in the fields of environmental, social and labour law;

Amendment 79

Proposal for a regulation

Article 10 – paragraph 1

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
1. The ECF support shall target development manufacturing and exploitation in the Union of strategic technologies and sectors, in line with Union law and international commitments. The award procedures may apply any of the conditions set out in paragraph 2 to protect Union’s strategic and economic security interests, as well as security and critical assets and the services they provide.1. The ECF support shall target development manufacturing and exploitation in the Union of strategic technologies and sectors, in line with Union law and international commitments. The award procedures may apply any of the conditions set out in paragraph 2 to protect Union’s strategic and economic security interests, as well as security and critical assets and the services they provide and to ensure high social standards, in line with the EPSR.

Amendment 80

Proposal for a regulation

Article 10 – paragraph 2 – introductory part

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
2. The work programme, the investment guidelines or the documents related to the award procedure may set out eligibility conditions to ensure the competitiveness of the Union, including protection of economic interests and autonomy of the Union where necessary and appropriate, including through preferential conditions such as restrictions or incentives for Union entities, while limiting distortion of the single market. Those eligibility conditions may take the form of:2. The work programme, the investment guidelines or the documents related to the award procedure shall set out eligibility conditions to ensure the competitiveness of the Union, including protection of economic interests, the resilience of Europe’s economy, the protection and creation of quality jobs and autonomy of the Union where necessary and appropriate, including through preferential conditions such as restrictions or incentives for Union entities, while limiting distortion of the single market. Those eligibility conditions may take the form of:

Amendment 81

Proposal for a regulation

Article 10 – paragraph 2 – point a

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(a) participation and performance restrictions requiring participating entities to be established, use facilities, or perform activities in the Member States, and where appropriate other eligible countries. The work programme or the documents related to the award procedure may set out further details on the application of these participation and performance restrictions;(a) participation and performance restrictions requiring participating entities to be established, use facilities, perform activities, provide quality employment, contribute to skills development or maintain supported activities or operations in the Member States, and where appropriate other eligible countries. The work programme or the documents related to the award procedure may set out further details on the application of these participation and performance restrictions;

Amendment 82

Proposal for a regulation

Article 10 – paragraph 2 – point b

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(b) transfer restrictions requiring recipients of ECF funding, during or within 5 calendar years after the end of an action, to not directly or indirectly transfer all or certain operations, results or related access and use rights, including granting of licences, from an eligible Member State or associated country to an ineligible third country. Otherwise, Union funding may be reduced and may be fully or partially recovered. The work programme or the documents related to the award procedure may set out further details on the application of these transfer restrictions;(b) transfer restrictions requiring recipients of ECF funding, during or within 5 calendar years after the end of an action, to not directly or indirectly transfer, relocate or offshore all or certain operations, results or related access and use rights, including granting of licences, from an eligible Member State or associated country to an ineligible third country. Otherwise, Union funding shall be reduced or shall be fully or partially recovered. The work programme or the documents related to the award procedure may set out further details on the application of these transfer restrictions;

Amendment 83

Proposal for a regulation

Article 11 – paragraph 1 – point d

Amendment: Text proposed by the Commission and Unchanged text included in the compromise
Text proposed by the CommissionUnchanged text included in the compromise
(d) other third countries.(d) other third countries.

Amendment 84

Proposal for a regulation

Article 11 – paragraph 2 – point e

Amendment: Text proposed by the Commission and Unchanged text included in the compromise
Text proposed by the CommissionUnchanged text included in the compromise
(e) ensure the protection of strategic, security, defence and public order interests of the Union and its Member States.(e) ensure the protection of strategic, security, defence and public order interests of the Union and its Member States.

Amendment 85

Proposal for a regulation

Article 11 – paragraph 2 – point e a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(ea) ensure respect for Union values and applicable obligations in the fields of social and labour law.
Where an Association Agreement for programme participation in the ECF infringes one or more of the conditions provided for in this paragraph, ECF support shall be withdrawn and any resources allocated shall be recovered.

Amendment 86

Proposal for a regulation

Article 14 – paragraph 2

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
2. The members of the ECF Strategic Stakeholders Board shall be appointed by the Commission, following an open call for nominations or for expressions of interest, or both, whichever the Commission finds more appropriate, and taking into account the need for balance in sector, organisation type, including private investors, and size, expertise, gender, age and geographical distribution. The term of members the Board shall be limited to four years, renewable once. Members of the Board should act with integrity and probity.2. The members of the ECF Strategic Stakeholders Board shall be appointed by the Commission, following an open and transparent call for nominations or for expressions of interest, or both, whichever the Commission finds more appropriate, and taking into account the need for balance in sector, organisation type, including representatives of the cross-industry and relevant sectoral social partners at Union level, representative SME and social enterprise organisations, education and training stakeholders, regional and local authorities and private investors, and size, expertise, gender, age and geographical distribution. The term of members the Board shall be limited to four years, renewable once. Members of the Board should act with integrity and probity.

Amendment 87

Proposal for a regulation

Article 14 – paragraph 3

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
3. The Commission shall establish the detailed rules on selection and composition, remuneration, rules of procedure, conflicts of interest and confidentiality for the ECF Stakeholder Board. Members of the Board shall be bound by these terms.3. The Commission shall establish the detailed rules on selection and composition, remuneration, rules of procedure, conflicts of interest in particular their declaration and transparency and confidentiality for the ECF Stakeholder Board. Members of the Board shall be bound by these terms.

Amendment 88

Proposal for a regulation

Article 14 – paragraph 4

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
4. The ECF Strategic Stakeholder Board, informed by an observatory on emerging technologies, shall advise on the overall direction for the ECF, advise on long-term competitiveness trends, advise on areas of market failures and suboptimal investment situations that could be addressed in the implementation of the ECF, and advise on the identification of strategic portfolios of projects within and across activities of the ECF, for which it may be composed in different policy-oriented configurations.4. The ECF Strategic Stakeholder Board, informed by an observatory on emerging technologies, shall advise on the overall direction for the ECF to best contribute to the long-term sustainable prosperity and resilience of the Union’s economy, and in particular advise on long-term competitiveness trends, on areas of market failures and suboptimal investment situations and on skills development particularly accompanying measures to support workers in new emerging sectors as well as the just transition that could be addressed in the implementation of the ECF, and advise on the identification of strategic portfolios of projects within and across activities of the ECF, for which it may be composed in different policy-oriented configurations.

Amendment 89

Proposal for a regulation

Article 14 – paragraph 5

Amendment: Text proposed by the Commission and Unchanged text included in the compromise
Text proposed by the CommissionUnchanged text included in the compromise
5. An independent Investment Committee shall be established under the ECF InvestEU Instrument (the ‘Investment Committee’).5. An independent Investment Committee shall be established under the ECF InvestEU Instrument (the ‘Investment Committee’).

Amendment 90

Proposal for a regulation

Article 14 – paragraph 6

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
6. The composition of the Investment Committee shall ensure that it has a wide knowledge of the sectors covered by the ECF and a wide knowledge of the geographic markets in the Union, and shall ensure that the Investment Committee as a whole is gender-balanced.6. The composition of the Investment Committee shall ensure that it has a wide knowledge of the sectors and financial instruments covered by the ECF in particular regarding social and skills investment affecting industrial deployment and competitiveness, microfinance and social enterprises and a wide knowledge of the geographic markets in the Union and shall ensure that the Investment Committee as a whole is gender-balanced.

Amendment 91

Proposal for a regulation

Article 14 – paragraph 11

Amendment: Text proposed by the Commission and Unchanged text included in the compromise
Text proposed by the CommissionUnchanged text included in the compromise
11. The Commission shall ensure that stakeholders are consulted in the development of the work programmes, with the creation of one or several thematic platforms per window.11. The Commission shall ensure that stakeholders are consulted in the development of the work programmes, with the creation of one or several thematic platforms per window.

Amendment 92

Proposal for a regulation

Article 15 – paragraph 1 – point a

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(a) actions and associated budget from ECF as well as actions set out in the specific dedicated part of the work programmes indicated in paragraph 2;(a) actions and associated budget from ECF as well as actions set out in the specific dedicated parts of the work programmes indicated in paragraphs 2 and 2a;

Amendment 93

Proposal for a regulation

Article 15 – paragraph 2 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
2a. The work programmes under this Regulation shall integrate, in a specific dedicated part, skills development and related investment activities supporting the objectives of this Regulation and their dedicated budget, ensuring coherence with the Union of Skills.

Amendment 94

Proposal for a regulation

Article 15 – paragraph 2 b (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
2b. To ensure the effective deployment of investments supported under the Fund, workforce adaptation and skills development should accompany industrial investment in strategic sectors and technologies. Insufficient workforce capacity may limit the absorption and scaling of innovation, create bottlenecks in industrial deployment and reduce the economic impact of Union support. Dedicated investment in skills linked to supported value chains therefore contributes directly to the effectiveness, resilience and long-term competitiveness of industrial projects financed by the Fund.

Amendment 95

Proposal for a regulation

Article 21 – paragraph 2

Amendment: Text proposed by the Commission and Unchanged text included in the compromise
Text proposed by the CommissionUnchanged text included in the compromise
2. The ECF InvestEU Instrument shall address market failures or suboptimal investment situations. The ECF InvestEU Instrument may in particular provide loans, guarantees, counter-guarantees, capital market instruments, any other form of funding or credit enhancement, including subordinated debt, or equity or quasi-equity investments, provided directly or indirectly through financial intermediaries, funds, investment platforms or other vehicles to be channelled to final recipients.2. The ECF InvestEU Instrument shall address market failures or suboptimal investment situations. The ECF InvestEU Instrument may in particular provide loans, guarantees, counter-guarantees, capital market instruments, any other form of funding or credit enhancement, including subordinated debt, or equity or quasi-equity investments, provided directly or indirectly through financial intermediaries, funds, investment platforms or other vehicles to be channelled to final recipients.

Amendment 96

Proposal for a regulation

Article 21 – paragraph 5

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
5. The investment guidelines set out by the Commission shall define in more detail the scope of intervention in support of the general and specific objectives set out in Article 3. The investment guidelines shall be prepared in close dialogue with the potential implementing partners.5. The investment guidelines set out by the Commission shall define in more detail the scope of intervention in support of the general and specific objectives set out in Article 3. The investment guidelines shall be prepared in close dialogue with the investment committee referred to in Article 14 and the potential implementing partners.

Amendment 97

Proposal for a regulation

Article 22 – title

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
Support to scaleups and startupsSupport for start-ups, scale-ups and social enterprises

Amendment 98

Proposal for a regulation

Article 22 – paragraph 1

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
1. The ECF InvestEU Instrument shall serve as the Union’s integrated platform for delivering targeted financial support to companies across all development phases start-ups, scale-ups, including those actively pursuing manufacturing, industrial and market deployment. It shall ensure that high-potential European companies developing or deploying innovative solutions can access the capital and resources to grow in the Union, thus strengthening the integration of the Single market and the Savings and Investment Union.1. The ECF InvestEU Instrument shall serve as the Union’s integrated platform for delivering targeted financial support to companies across all development phases, including start-ups, scale-ups and innovative social enterprises, including those actively pursuing manufacturing, industrial and market deployment. It shall ensure that high-potential European companies developing or deploying innovative solutions can access the capital and resources to grow in the Union, thus strengthening the integration of the Single market and the Savings and Investment Union. Special attention shall be given to businesses and organisations rooted in local and regional economic ecosystems, including social enterprises, which contribute to innovation, job creation and regional economic development.

Amendment 99

Proposal for a regulation

Article 22 – paragraph 2

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
2. The Commission shall in particular develop a Scale-up facility in cooperation with the EIB Group, other international financial institutions and National Promotional Banks. The facility shall provide in a coordinated and consistent manner, a comprehensive set of financing tools tailored to the unique needs of scale-ups, including indirect and direct equity and quasi-equity, venture debt, loans, guarantees and blended finance, with a view to attract private investors in supporting scale up financing and facilitate exit options. The facility shall target SMEs and small mid-cap companies and Mid-cap companies.2. The Commission shall in particular develop a Scale-up facility in cooperation with the EIB Group, other international financial institutions and National Promotional Banks. The facility shall provide in a coordinated and consistent manner, a comprehensive set of financing tools tailored to the unique needs of scale-ups and innovative social enterprises with high growth potential, including indirect and direct equity and quasi-equity, venture debt, loans, guarantees and blended finance, with a view to attract private investors in supporting scale up financing and facilitate exit options. The facility shall target SMEs and small mid-cap companies and Mid-cap companies.

Amendment 100

Proposal for a regulation

Article 22 – paragraph 4

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
4. It will leverage public investment to catalyse substantial private and institutional capital flows, such as from private equity funds, corporates, pension funds, insurance companies, and other long-term investors, thus deepening Europe’s capital markets and fostering sustainable growth of scale-up companies.4. It will leverage public investment to catalyse substantial private and institutional capital flows, such as from private equity funds, corporates, pension funds, insurance companies, and other long-term investors, thus deepening Europe’s capital markets and fostering sustainable growth of scale-up companies and innovative social economy enterprises that contribute to the resilience of regional value chains and inclusive economic growth.

Amendment 101

Proposal for a regulation

Article 22 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
Article 22a
Housing and Social Investments
The ECF InvestEU instrument may support the following activities using funds from the EU Facility established under Regulation [XXXX/XXXX] (NRPPs): Support to social investments, which comprises microfinance, social enterprise finance, social economy and measures to promote gender equality, skills, education, training and related services, social infrastructure, including health and educational infrastructure and social and student housing, social innovation, health and long-term care, inclusion and accessibility, cultural and creative activities with a social goal, and the integration of vulnerable people, including third country nationals.

Amendment 102

Proposal for a regulation

Article 26 – paragraph 2 – point b

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(b) business coaching and acceleration services targeting potential ECF beneficiaries and other project promoters, including SMEs and mid-cap companies, start-ups and scale-ups, supporting and facilitating their access to ECF funding and financing, and facilitating matchmaking with private investors and promoting financial literacy of entrepreneurs, including understanding of the opportunities offered by capital market based financing;(b) business coaching and acceleration services targeting potential ECF beneficiaries and other project promoters, including SMEs, small mid-cap and mid-cap companies, start-ups and scale-ups and social enterprises with the aim of supporting and facilitating their access to ECF funding and financing, and facilitating matchmaking with private investors and promoting financial literacy of entrepreneurs, including understanding of the opportunities offered by capital market based financing;

Amendment 103

Proposal for a regulation

Article 26 – paragraph 3

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
3. Project advisory shall, among others, support the generation of project pipelines and the development of potential investment projects under the ECF InvestEU Instrument and contribute to their further development. Project advisory shall also cooperate with industrial alliances and European clusters. Project advisory shall be available under each policy window referred, covering sectors under that window. In addition, advisory support may cover general objectives and cross-cutting actions.3. Project advisory shall, among others, support the generation of project pipelines and the development of potential investment projects under the ECF InvestEU Instrument and contribute to their further development. Project advisory shall also cooperate with industrial alliances and European clusters. Project advisory shall be available under each policy window referred, covering sectors under that window. In addition, advisory support may cover general objectives and cross-cutting actions in particular regarding skills investment and development including measures to support workers in the just transition.

Amendment 104

Proposal for a regulation

Article 27 – paragraph 1

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
1. “EU for Business” Network shall be established to help Union businesses become more competitive and innovate, grow and scale in the Single Market and beyond, with a particular emphasis on SMEs, startups, scaleups and small mid-cap companies. The network shall have a Union-wide and geographically balanced coverage, taking into account the specificities of all types of regions in the Union, including the less developed regions and the Union outermost regions.1. “EU for Business” Network shall be established to help Union businesses become more competitive and innovate, grow and scale in the Single Market and beyond, with a particular emphasis on SMEs, social enterprises, startups, scaleups and small mid-cap companies. The network shall have a Union-wide and geographically balanced coverage, taking into account the specificities of all types of regions in the Union, including the less developed regions and the Union outermost regions.

Amendment 105

Proposal for a regulation

Article 28 – paragraph 1 – point c

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(c) support and assistance for access to technologies, technology infrastructure and facilities, support market uptake of innovation and support business organisations, SMEs and small mid-cap companies, including startups and scaleups, to participate in collaborative platforms and sectors;(c) support and assistance for access to technologies, technology infrastructure and facilities, support market uptake of innovation and support business organisations, SMEs and small mid-cap companies, including startups and scaleups, as well as social enterprises, to participate in collaborative platforms and sectors;

Amendment 106

Proposal for a regulation

Article 28 – paragraph 1 – point e

Amendment: Text proposed by the Commission and Unchanged text included in the compromise
Text proposed by the CommissionUnchanged text included in the compromise
(e) increasing the access and the availability of finance for SMEs including micro-finance and support to social enterprises, and for small mid-cap companies;(e) increasing the access and the availability of finance for SMEs including micro-finance and support to social enterprises, and for small mid-cap companies;

Amendment 107

Proposal for a regulation

Article 28 – paragraph 1 – point f a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(fa) provision of advice and support to companies, particularly SMEs and small mid-cap companies, concerning skills development and investments in particular skills intelligence, just transition planning, targeted upskilling and reskilling and the use of public-private partnerships with inter alia VET and higher education providers;

Amendment 108

Proposal for a regulation

Article 28 – paragraph 1 – point g

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(g) improving the business environment for SMEs and promote new business opportunities for SMEs by supporting among others intellectual property valorisation, standard setting and public procurement;(g) fostering a favourable business environment for SMEs and social enterprises and promote new business opportunities for SMEs and social enterprises by supporting among others intellectual property valorisation, standard setting and public procurement;

Amendment 109

Proposal for a regulation

Article 28 – paragraph 1 – point h

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(h) promoting entrepreneurship, including women and youth entrepreneurship and the acquisition of entrepreneurial and business skills.(h) promoting entrepreneurship and entrepreneurial culture, including women and youth entrepreneurship and the acquisition of entrepreneurial and business skills.

Amendment 110

Proposal for a regulation

Article 29 – title

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
Dedicated SME Actions to increase SME participationDedicated SME and social enterprises actions to increase SME and social enterprises participation

Amendment 111

Proposal for a regulation

Article 29 – paragraph 1

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
1. Each window shall support dedicated, sector-specific actions targeting start-ups, SMEs and small mid-cap companies or calls for SMEs in strategic sectors with a view to fostering innovation, business acceleration, commercialisation and scaling-up.1. Each window shall support dedicated, sector-specific actions targeting start-ups, SMEs and small mid-cap companies to facilitate the opening up of supply chains to such companies and social enterprises to set up calls for SMEs in strategic sectors with a view to fostering innovation, business acceleration, commercialisation and scaling-up.

Amendment 112

Proposal for a regulation

Article 30 – paragraph 1

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
1. The ECF shall finance activities in support of skills development, in particular in the strategic sectors, building strong links between higher education, vocational education and training providers, applied research and businesses for an agile, innovative and competitive economy. This shall include support for a European Skills Guarantee to support value chain transitions in favour of strategic growth sectors or occupations across the labour market through upskilling and reskilling of the workforce and Vocational Education and Training (VET) partnerships to strengthen cooperation between VET providers and businesses, especially SMEs and connecting them with regional industrial ecosystems.1. The ECF shall finance activities and investments that strengthen the Union’s skills base, in particular in the strategic sectors, ensuring the availability of a highly skilled workforce capable of supporting the general and specific objectives established in Article 3 with a view to ensuring coherence with the Union of Skills, contributing to quality employment, sustainable and modernised industrial development and maintaining industrial activity, technological capabilities and productive capacity within the Union.

Amendment 113

Proposal for a regulation

Article 30 – paragraph 1 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
1a. Support for skills development shall include:
(a) building structured and sustained partnerships between higher education institutions in particular through University Alliances, vocational education and training (VET) providers, applied research organisations, workers’ representative organisations including trade unions and businesses especially SMEs, to integrate education, research, innovation and industrial cooperation across Member States and to identify and develop pathways for the provision of the skills, training and accompanying enabling measures, including skills mobility, required for an agile, innovative and competitive economy and connecting them with regional industrial ecosystems.
(b) measures for large-scale targeted upskilling and reskilling of the workforce, accessible high-quality training and accompanying enabling measures, in particular in strategic sectors, including support for a European Skills Guarantee to assist workers affected by value chain transitions with job-to-job transitions within value chains in strategic growth sectors or occupations across the labour market thereby contributing to a socially fair and inclusive transition and the creation and retention of quality employment.
(c) support the anticipation of skills needs and ensure training provision reflects actual and anticipated labour market demand through sector-specific skills intelligence systems, developed in cooperation with the relevant European sectoral social partners and the European Centre for the Development of Vocational Training (Cedefop);
(d) the development of common competence frameworks for key technical occupations in strategic sectors, aligned with the European Qualifications Framework (EQF) and building on existing sectoral reference frameworks developed under Horizon Europe and the Erasmus+ programme;

Amendment 114

Proposal for a regulation

Article 30 – paragraph 1 b (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
1b. The Commission and Member States shall ensure effective coordination, complementarity and synergies with actions supported under other Union instruments in the area of skills development, in particular those financed through cohesion policy avoiding duplication and ensuring additionality.

Amendment 115

Proposal for a regulation

Article 30 – paragraph 1 c (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
1c. Measures supported under this Article shall, where relevant, promote accessible and high-quality skills and training and take into account the specific barriers faced by vulnerable workers, workers in less-developed regions, as well as workers in sectors with significant exposure to industrial transition. Measures shall further ensure respect for social dialogue between social partners on the modalities of training opportunities that are aligned with labour market needs and that respect work-life balance. Support shall be streamlined to minimize administrative burdens for SMEs participating in apprenticeship and dual-education schemes.

Amendment 116

Proposal for a regulation

Article 32 – paragraph 2

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
2. Support for actions under this chapter shall be financed from the budget set out in Article 4 and any additional contributions assigned in accordance with Article 5.2. Support for actions under this chapter shall be financed from the budget set out in Article 4 (2), point (b), and any additional contributions assigned in accordance with Article 5.

Amendment 117

Proposal for a regulation

Article 33 – paragraph 1 – point b a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(ba) Support for skills development linked to the energy-efficient renovation and construction sector, including training, upskilling and reskilling of the workforce in areas such as energy efficiency, renewable energy integration and efficient heating and cooling systems. Actions should contribute to addressing labour shortages, reducing energy poverty for vulnerable households, improving provision of social and affordable housing, supporting quality employment and strengthening the workforce needed for the clean transition.

Amendment 118

Proposal for a regulation

Article 36 – paragraph 2

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
2. Support for actions under this chapter shall be financed from the budget set out in Article 4(2) , and any additional contributions assigned in accordance with Article 5.2. Support for actions under this chapter shall be financed from the budget set out in Article 4(2), point c, and any additional contributions assigned in accordance with Article 5.

Amendment 119

Proposal for a regulation

Article 37 – paragraph 1 – point a

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(a) Improving and protecting health, including cross-border health, by prioritising health promotion and disease prevention across the life course through a health-in-all and One Health policies approach, with a special emphasis on communicable and non-communicable diseases, including mental health, degenerative health, autism, cardiovascular diseases, cancer and other non-communicable diseases, including those related to pollution, sexual and reproductive health and enhancing international health initiatives and cooperation.(a) Improving and protecting health, including cross-border health, by prioritising health promotion and disease prevention across the life course through a health-in-all and One Health policies approach, with a special emphasis on communicable and non-communicable diseases, including mental health, occupational health and safety, including psychosocial health, disabilities, degenerative health, autism, cardiovascular diseases, cancer and other non-communicable diseases, including those related to pollution, sexual and reproductive health and enhancing international health initiatives and cooperation.

Amendment 120

Proposal for a regulation

Article 37 – paragraph 1 – point f

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(f) Fostering an innovative and competitive bioeconomy sector in the Union, including in the areas of health biotech, biobased materials and products, valorising farm and forest residues, carbon negative products, biomanufacturing and biochemicals, in particular by supporting the discovery, development, derisking, demonstration, piloting, and scaling-up of bioeconomy innovations; by accelerating the market introduction and market uptake of bio-based materials from agriculture and forestry and bioeconomy solutions; by strengthening emerging value chains; by building a skilled workforce, by providing access to finance and other support for SMEs, startups, scale ups and innovators.(f) Fostering an innovative and competitive bioeconomy sector in the Union, including in the areas of health biotech, biobased materials and products, valorising farm and forest residues, carbon negative products, biomanufacturing and biochemicals, in particular by supporting the discovery, development, derisking, demonstration, piloting, and scaling-up of bioeconomy innovations; by accelerating the market introduction and market uptake of bio-based materials from agriculture and forestry and bioeconomy solutions; by strengthening emerging value chains;

Amendment 121

Proposal for a regulation

Article 37 – paragraph 1 – point f a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(fa) building a skilled workforce to meet the evolving needs of the sectors concerned, by providing access to finance and other support for SMEs, startups, scale ups and innovators, facilitating knowledge sharing and exchange of best practices and promoting interdisciplinary skills and training programmes;

Amendment 122

Proposal for a regulation

Article 39 – paragraph 2 – point b

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(b) Achieving technological sovereignty by building resilient digital ecosystems, including advanced digital skills, and ensuring a high-level of cybersecurity in the Union. The implementation shall include, but not be limited to, creating an attractive ecosystem for disruptive innovative companies, SMEs, start-ups and scale-ups, as well as emerging industry leaders in the digital sector to remain, grow and thrive within the Union, supporting them in scaling up, expanding their markets, including through procurement, and contributing to the Union’s digital sovereignty, with a focus on addressing the complexity of the technological value chains, standardisation, the security of supply of advanced digital technologies, infrastructures, and services, needed capacities, including manufacturing, production capacity, and advanced digital skills both in the private and public sectors.(b) Achieving technological sovereignty by building resilient digital ecosystems, including advanced digital skills, and ensuring a high-level of cybersecurity in the Union. The implementation shall include, but not be limited to, creating an attractive ecosystem for disruptive innovative companies, SMEs, start-ups and scale-ups, as well as emerging industry leaders in the digital sector to remain, grow and thrive within the Union, supporting them in scaling up, expanding their markets, including through procurement, and contributing to the Union’s digital sovereignty, with a focus on addressing the complexity of the technological value chains, standardisation, the security of supply of advanced digital technologies, infrastructures, and services, needed capacities, including manufacturing, production capacity, and targeted upskilling, reskilling and advanced digital skills for workforces both in the private and public sectors with a view to supporting quality employment and digital inclusion.

Amendment 123

Proposal for a regulation

Article 39 – paragraph 2 – point e

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(e) Support actions for the development, implementation, monitoring and enforcement of relevant Union legislation and policy. This includes supporting the relevant institutions, the cooperation between national authorities and with stakeholders, studies, the development and deployment of tools and infrastructures, including IT infrastructure and tools.(e) Support actions for the development, implementation, monitoring and enforcement of relevant Union legislation and policy. This includes supporting the relevant institutions, the cooperation between national authorities and with stakeholders, particularly the social partners, studies, the development and deployment of tools and infrastructures, including IT infrastructure and tools.

Amendment 124

Proposal for a regulation

Article 80 – paragraph 2 – point a

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(a) Research and innovation, scale-up, SME support, skills development, and manufacturing actions;(a) Research and innovation, scale-up, SME support, skills development in particular in civil protection and preparedness, and manufacturing actions;

Back matter, 1

Parts that accompany the text rather than belong to it: explanatory statement, annexes, opinions appended by other committees. Collapsed.

Annex: declaration of input 4 blocks

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that he included in his opinion input on matters pertaining to the subject of the file that he received, in the preparation of the opinion, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

Table from the text: 1. Interest representatives falling within the scope of the
1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register
European Trade Union Confederation (ETUC)
SMEunited
European Commission
Bureau Sud – Aix-en-Provence

The list above is drawn up under the exclusive responsibility of the rapporteur for opinion.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that he has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

Procedure pages and committee votes

How the committees handled the text and how their members voted on it. Collapsed.

Procedure – committee asked for opinion 1 block
Table from the text: Title
TitleEstablishing the European Competitiveness Fund (’ECF’), including the specific programme for defence research and innovation activities
ReferencesCOM(2025)0555 – C10-0165/2025 – 2025/0555(COD)
Committee(s) responsible Date announced in plenaryITRE 23.10.2025
Opinion by Date announced in plenaryEMPL 23.10.2025
Rapporteur for opinion Date appointedGrégory Allione 18.12.2025
Discussed in committee17.3.2026
Date adopted6.5.2026
Result of final vote+: –: 0:26 10 19
Final vote by roll call by the committee asked for opinion 3 blocks

26 · For

EPP
Maravillas Abadía Jover, Andrzej Buła, David Casa, Salvatore De Meo, Loucas Fourlas, Niels Geuking, Sérgio Humberto, Martine Kemp, Miriam Lexmann, Jagna Marczułajtis-Walczak, Dennis Radtke, Liesbet Sommen, Romana Tomc, Axel Voss, Angelika Winzig
Renew
Grégory Allione, Valérie Devaux, Elisabetta Gualmini, Michael McNamara, Hristo Petrov
S&D
Birgit Sippel, Marianne Vind
Greens
Katrin Langensiepen, Maria Ohisalo, Nela Riehl, Benedetta Scuderi

10 · Against

ECR
Kosma Złotowski
No group
Jan-Peter Warnke
Patriots
Margarita de la Pisa Carrión, Pál Szekeres
S&D
Gabriele Bischoff
The Left
Li Andersson, Leila Chaibi, Per Clausen, Rudi Kennes, João Oliveira

19 · Abstained

ECR
Elena Donazzan, Chiara Gemma, Georgiana Teodorescu, Francesco Torselli, Mariateresa Vivaldini
ESN
Petar Volgin
EPP
Pascal Arimont
Patriots
Mélanie Disdier, Angéline Furet, Séverine Werbrouck
S&D
Vilija Blinkevičiūtė, Estelle Ceulemans, Johan Danielsson, Matthias Ecke, Isilda Gomes, Alicia Homs Ginel, Marit Maij, Idoia Mendia, Aodhán Ó Ríordáin

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Sources & citation

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Data source
Licensed CC BY 4.0.
Retrieved
25 September 2026

Cite as

European Parliament (2026). “OPINION on the proposal for a regulation of the European Parliament and of the Council on establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities, repealing Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/697, (EU) 2021/783, and amending Regulations (EU) 2021/696, (EU) 2023/588, (EU) [EDIP]”. Text, 28 May 2026. docId EMPL-AD-785132. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/EMPL-AD-785132 (retrieved 25 September 2026). Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/EMPL-AD-785132 (CC BY 4.0).
BibTeX
@misc{epw-text-empl-ad-785132,
  author = {{European Parliament}},
  title = {{OPINION on the proposal for a regulation of the European Parliament and of the Council on establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities, repealing Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/697, (EU) 2021/783, and amending Regulations (EU) 2021/696, (EU) 2023/588, (EU) [EDIP]}},
  year = {2026},
  date = {2026-05-28},
  howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/EMPL-AD-785132}},
  url = {https://news.eu-parl.st-solutions.dev/texts/EMPL-AD-785132},
  urldate = {2026-09-25},
  publisher = {EU Parl Watch Research},
  note = {Text. docId EMPL-AD-785132. Data: EP Open Data API: document record (CC BY 4.0)}
}