Ensuring EU Budget Delivers on Europe’s Strategic Priorities: Business View on Driving Investment into a Competitive, Decarbonised and Resilient EU

28 April 2026 – In a position paper on the next Multiannual Financial Framework (MFF), CLG Europe calls for an EU budget aligned with Europe’s industrial transformation

Read the full position here

Europe is entering a defining decade. Rising geopolitical tensions, intensifying global competition and continued dependence on imported fossil fuels are reshaping the conditions for growth. For businesses, this translates directly into higher energy costs, supply chain risks and uncertainty around long-term investment decisions.

Reducing exposure to fossil fuels is a core economic and security priority. The next EU budget (2028–2034) will be a decisive tool in determining whether Europe can respond at the speed and scale required. It will shape investment in clean industry, infrastructure and innovation, and determine whether Europe can reduce structural vulnerabilities, strengthen resilience and compete globally.

What the EU budget must deliver

The scale of investment needed is unprecedented, and while private capital will deliver most of it, public finance will determine the direction, pace and credibility of Europe’s transition.

  • A modern definition of competitiveness: Competitiveness must reflect long-term resilience, not just cost. It should be grounded in productivity, innovation, energy security and the ability to withstand climate and geopolitical shocks.
  • Public finance as a strategic lever: Public funding must crowd in private capital, not substitute it. It should reduce risk, improve investment conditions and mobilise finance at the scale required for the transition.
  • Industrial transformation at the core: Investment must prioritise electrification, clean technologies and infrastructure. This is essential to reduce structural costs, support first movers and strengthen Europe’s industrial base.
  • Climate and nature as economic priorities: Climate and biodiversity must remain visible and credible in the budget. Targets must be robust, measurable and not diluted, with dedicated attention to nature.
  • A European Competitiveness Fund that delivers: The ECF must translate priorities into strategic investment decisions. Clear governance, transparency and alignment with decarbonisation are critical to avoid fragmentation and weak impact.
  • Credible safeguards and transition alignment: Public support should go to activities that are clean or transitioning with measurable progress. This requires clear criteria, credible transition plans and strong safeguards such as DNSH.
  • Strategic use of ETS revenues: ETS revenues must consistently support industrial decarbonisation as intended. They should prioritise electrification, infrastructure and breakthrough technologies, not be diluted across uses.
  • Scaling what works: Proven instruments like InvestEU should be expanded. Guarantees and blended finance are key to mobilising private capital quickly and effectively.
  • Governance and accountability: Stronger links between EU funding, national plans and outcomes are essential. Better coordination and transparency are needed to ensure impact and avoid fragmentation.

Europe cannot build competitiveness on short-term cost advantages or fragmented support. A more strategic EU budget can reduce dependence on fossil fuels, mobilise private capital and deliver industrial transformation at scale, strengthening Europe’s long-term resilience and economic security.