The past month has been a very busy time in the development of the EU’s post-2027 research and innovation system. While formal negotiations are still at an early stage, October has seen more political focus on how FP10, the European Competitiveness Fund (ECF), the European Innovation Act and the upcoming European Research Area (ERA) Act will fit together and what role each will play in Europe’s future research, innovation and competitiveness approach.

Key Takeaways

  • FP10 confirmed as a standalone programme for 2028-2034
  • European Competitiveness Fund discussions continue
  • European Innovation Act enters Council and Parliament scrutiny
  • ERA Act expected later in 2026
  • Irish Presidency advancing negotiations on the next EU budget

The new Horizon: FP10 continues its development

Work continues on the EU’s Tenth Framework Programme for Research and Innovation (FP10) for 2028-2034. As discussed in previous updates, FP10 will remain a stand-alone programme ending several years of uncertainty over whether research funding would be absorbed into a broader competitiveness instrument.

The conversation in Brussels has changed and rather than debating whether FP10 will exist as a stand-alone programme, we now are concerned with how it will operate in practice. Stakeholders are also examining how the new FP10 four-pillar structure, comprising Excellent Science, Competitiveness and Society, Innovation, and European Research Area, will interact with other instruments within the next Multiannual Financial Framework.

Horizon Europe 2028-2034

FP10 will remain the EU’s main vehicle for funding research. Meanwhile, the European Competitiveness Fund is being designed to support deployment, industrial scale-up and commercialisation. As such, both will have different objectives and governance arrangements.

However, Policymakers are still debating some key areas:

  • The boundaries between research and deployment funding
  • The role that members states, the EU Commission and external expert panels will play in FP10 and other governance issues
  • How collaborative projects will transition from FP10 into scale-up support under the ECF; and
  • How to avoid duplication across programmes

European Innovation Act enters the political arena

The biggest legislative development of the past month has been the transition of the European Innovation Act from Commission proposal to active political debate. Following its formal adoption by the Commission on the 9th September, the proposal is now undergoing scrutiny by both the Council and Parliament.

At its core, the Act aims to tackle Europe’s challenge of turning excellent research into successful businesses and industrial growth.

Attention in Brussels is acutely focused on two key flagship measures of the Act:

  • the creation of a harmonised EU framework for research and development procurement
  • an EU-wide framework for intellectual property valuation and commercialisation

The latter has generated significant interest within member states because it aims to unlock new sources of finance for innovative companies through IP-backed lending and investment models, particularly in deep-tech sectors. Rather than introducing another funding programme, the Innovation Act focuses on the very real regulatory and market barriers that many European scale-ups continue to face. However, such a consolidated approach is not without its critics with some member states arguing that the proposed powers should stay within national competencies.

European Research Area Act details are being finalised

The forthcoming European Research Area (ERA) Act is expected to be formally proposed later in 2026. Although the legislative text has not yet been published, leaks, consultations and preparatory work have intensified in recent weeks. The Commission has outlined ambitions to strengthen coordination between national and European research systems, improve research careers and mobility, reinforce scientific freedom and encourage greater alignment around the long-standing target of investing 3% of GDP in research and development. Unlike FP10, which focuses on funding research, the ERA Act is intended to shape the environment in which research is carried out. Discussions in Brussels are now focusing on how legally binding future provisions should become and what obligations member states might accept.

Role of the Irish Presidency

Taoiseach Micheál Martin and EU Commission President Ursula von der Leyen. Photo: Getty.

The Irish Presidency of the Council of the European Union continues to place competitiveness at the centre of its programme, with FP10, the Multiannual Financial Framework (MFF) and innovation policy among its highest-profile dossiers. Ireland has repeatedly emphasised that agreement on the 2028-2034 budget architecture will be critical to Europe’s future competitiveness, productivity and technological sovereignty.

While major legislative breakthroughs are unlikely before the end of the Presidency, Irish officials have been focused on establishing negotiating positions, identifying areas of consensus and preparing the ground for more intensive legislative negotiations in 2027.

On the 10th October the Irish Presidency proposed a ‘negotiating box’ for the next MFF of roughly €1.62 trillion. While below the Commission and Parliament’s budgetary proposals, it is 30% higher than the last budget and would represent a significant increase in FP10. It is hoped that this compromise proposal will protect traditional spending pillars (such as Agriculture and EU Cohesion funding) while significantly strengthening R&I and competitiveness-related expenditure. This proposal is now with the European Council where its President, Antonio Costa, has called for efforts to continue to reach agreement by the end of 2026.

For further information contact kevin.flynn@enterprise-ireland.com and to find out more about Horizon Europe go to www.horizoneurope.ie