Future EU budget: EU must put regions and cities at the heart of competitiveness and single market policies

Europe’s competitiveness can only be boosted if investment strategies are aligned with the strengths of all European territories, according to a draft opinion on the new European Competitiveness Fund adopted by the Commission for Economic Policy (ECON) on 27 January. ECON members also adopted a draft opinion on the Single Market and Customs Programme, highlighting the importance of effective multi-level governance and the role of local and regional authorities. Both draft opinions contribute to the Committee of the Regions’ ongoing work on the EU long-term budget 2028-34.  

Competitiveness Fund  

Adopting a draft opinion on the European Competitiveness Fund (ECF), which should be created in 2028 within the future EU long-term budget, ECON members welcomed the ambition to strengthen Europe’s competitiveness while calling for a strong place-based approach. They discussed the involvement of territories in the ECF value chain framework, emphasising that local and regional authorities play a crucial role not only as recipients of funding but also as catalysts, coordinators, and testing grounds for regional innovation ecosystems that connect universities, research centres, businesses, and civil society actors. They also underlined that the planned merging of 14 funding programmes should consider the lessons learnt from implementation at the local and regional level.  

Rapporteur Pehr Granfalk (SE/EPP), Member of the Solna Municipal Council: “For a European Competitiveness Fund to deliver real impact, it must be firmly anchored in local and regional realities. This is the single most important improvement we want to see to strengthen the Fund’s effectiveness and legitimacy.” 

The draft opinion is scheduled to be adopted during the CoR plenary session in March. 

Single Market and Customs Programme  

While welcoming the European Commission’s proposal for the Single Market and Customs Programme 2028-34, ECON members emphasised, when adopting a draft opinion, that a well-functioning single market requires the systematic involvement of local and regional authorities in its implementation and enforcement, particularly in border and peripheral regions. Additionally, members stressed that Cohesion Policy is not merely complementary but fundamental to the proper functioning of the single market. In the draft opinion, they also highlighted the need to strengthen the territorial dimension of the programme’s governance and monitoring, improve administrative capacity through training and digital tools, and ensure strong synergies with other EU funding instruments. 

Rapporteur Emma Blain (IE/EPP), member of Dublin City Council: “At a time of geopolitical fragility, the Single Market and Customs Programme is a strategic anchor for Europe’s economic strength and resilience. It underpins competitiveness and security, but it will only deliver if it works on the ground, in every region. Local and regional authorities must therefore be recognised as core partners in implementation and enforcement, with cohesion and territorial insight embedded at the heart of the programme so the single market delivers real benefits for citizens and businesses across the EU.” 

The draft opinion is scheduled to be adopted during the CoR plenary session in March.   

Also during the meeting  

ECON members adopted a draft opinion on the Evaluation of the Public Procurement Directives, prepared by Roberto Gualtieri (IT/PES), Mayor of Rome and former Italian Minister of Economy, stressing that the way EU public money is spent on the ground directly shapes Europe’s territories and societies. They called for simplification of public procurement rules and alignment of public spending with EU objectives, to promote strategic, sustainable, and innovation-driven procurement. To unlock the potential of public procurement as a strategic tool, they endorsed a set of general principles to reduce legal risks for local and regional authorities. They also stressed the importance of integrating sustainability criteria and - for very specific strategic sectors - 'Made in Europe' preferences without adding burdens for public authorities.   

In addition, ECON members adopted a draft opinion on the European Chemicals Industry Action Plan, drafted by Frederiek Vermeulen (BE/EPP), member of the Ichtegem Municipal Council, calling for a strong partnership between the European Commission and local and regional authorities to ensure a place-based approach that strengthens competitiveness, strategic autonomy, and sustainable industrial transformation across all chemical regions. ECON members also welcomed the establishment of the Critical Chemicals Alliance, underlining that the Alliance must promote cross-regional partnerships, develop robust monitoring and early-warning systems to safeguard critical chemical production, support innovation and investment and coordinate EU-wide industrial resilience. 

Both opinions are scheduled to be adopted during the CoR plenary session in March.  

ECON members held a first exchange of views on the following opinions:   

• Digital simplification and the Data Union Strategy, prepared by rapporteur Pehr Granfalk (SE/EPP), Member of the Solna Municipal Council; 

• European Business Wallets, drafted by rapporteur Branislav Zacharides (SK/ECR), Mayor of Vrútky. 

During the meeting, members of the ECON commission appointed Willy Borsus (BE/Renew E), municipal councillor of Marche-En-Famenne, as rapporteur on the Industrial Accelerator Act, and Zdeněk Hřib (CZ/Greens & Progressives), city councillor of Prague, as rapporteur on digital networks and the Cybersecurity Act 2. 

Background 

• The European Commission proposed the creation of a European Competitiveness Fund as part of the next Multiannual Financial Framework (MFF) 2028-34. It should lead to investment in strategic technologies to simplify and accelerate EU funding, and to catalyse private and public investment. 

• As part of the MFF proposal, the European Commission presented the Single Market and Customs Programme, to strengthen also tax cooperation and the fight against fraud.  

• The European Commission is currently evaluating the Public Procurement Directives and has announced it will publish a proposal to reform them in 2026.  

• In July, the European Commission presented the European Chemicals Industry Action Plan to support the chemical sector and their investments on modernisation. A key element of the Action Plan is the creation of the Critical Chemicals Alliance bringing together the Commission and stakeholders to tackle the main challenges affecting the sector. 

Contact:
Theresa Sostmann
Tel: +32475999415
Theresa.Sostmann@cor.europa.eu