The European Commission has earmarked some €175.3 billion of its long-term 2028-2034 budget for Horizon Europe, its research and innovation program, up from €93.5 billion in the previous period (2021-2027).
Horizon Europe, which finances projects on green and digital transitions as well as research leading to scientific breakthroughs, will now be part of the newly created European Competitiveness Fund (ECF), with a total budget of €410 billion, that aims to improve the bloc’s competitiveness in technologies and strategic sectors critical to the EU.
Until now, the variety of EU programmes supporting innovation and deployment of research has been seen as “complex and difficult to navigate” for the targeted beneficiaries, the Commission’s document said.
The new ECF is pooling resources from eleven programmes. Of the €410 billion fund, some €54.8 billion is earmarked for the 'digital transition'.
“This investment impulse should benefit the entire Single Market – from AI to space, from clean tech to biotech. The Fund will be structured into four vertically integrated sectoral windows: clean transition and decarbonisation; resilience, defence industry and space; digital leadership; health and bio-economy,” the Commission’s document said.
On Wednesday the Commission presented its much-anticipated proposal for the new long-term EU budget, worth €2 trillion between 2028 and 2034, a sizable increase compared to the €1.21 trillion in the previous period.
In a reaction to the funding, tech lobby group Digital Europe said an “additional investment of between €157 billion and €227 billion per year on average” is needed to close Europe’s investment gap with other regions of the world.
“Digital technologies are crucial to cut emissions, protect critical infrastructure and super-charge productivity – they need to drive action across all the EU’s strategic priorities,” its statement said.
In February, Commission President Ursula von der Leyen said the EU executive would invest some €20 billion in AI gigafactories, needed to allow for “collaborative development” for the most complex AI models.
In comparison, French President Emmanuel Macron previously committed to invest €109 billion in AI projects in France in the coming years. On Monday, the US government committed to €92 billion for cutting-edge AI and energy initiatives.
The budget will now need to be discussed by the member states and needs the consent of the European Parliament.
