Europe has reached a critical turning point. The Draghi report on European Competitiveness has exposed a troubling truth: the continent’s productivity gains have plateaued, its innovation divide with major global powers like the US and China is expanding, and Europe faces a gradual, permanent erosion of its economic influence. Simultaneously, both the Competitiveness Compass and the EU’s strategic blueprints emphasise that research, development, and innovation (R&D&I) must be the core pillars of Europe’s recovery plan. We, the co-signing 86 European coalitions representing major R&D&I sectors, wholeheartedly back this analysis and strongly urge EU bodies to demonstrate matching determination when structuring and financing the upcoming Framework Programme for Research and Innovation (FP10).
The critical role of FP10
According to the Draghi report, an extra €800 billion annually is required to bridge the continent’s competitiveness deficit, highlighting R&D&I as the primary engine for sustainable efficiency gains. Growth fueled by innovation is more than just a financial necessity—it represents the only viable method to fund the EU’s ecological and digital overhauls, safeguard its strategic independence, and protect its social framework. FP10 serves as the primary tool for driving this shift. With a proven history of stimulating private capital, advancing technological readiness, and fostering transnational collaborative networks that single nations cannot build on their own, the programme is uniquely positioned to deliver the velocity and volume that Europe currently demands.
The risk of underfunding innovation
Nonetheless, existing EU allocations for R&D&I fall remarkably short of what is needed. Europe allocates a much smaller portion of its GDP to research and development compared to its global rivals. Yet, as proven by the comprehensive review of Horizon 2020, the multiplier effect of the Framework Programme ensures that every single euro of public funding attracts several times that amount in private and domestic co-financing. Restricting or freezing the FP10 budget would be an ill-advised savings strategy; it would directly jeopardise the public-private alliances, the tech advancement pathways, and the expert communities that are vital to reviving European economic performance.
Consequently, we urge EU decision-makers to:
- Provide a significantly expanded budget for FP10, in line with the high standards outlined in both the Draghi report and the Competitiveness Compass for the 2028–2034 financial framework;
- Bolster cooperative, industry-focused R&D&I through an enhanced Pillar II, guaranteeing that public-private alliances continue to de-risk investments, speed up commercial readiness, and turn high-level research into market-viable products that increase efficiency;
- Guarantee that FP10, alongside the ECF, champions the entire innovation lifecycle—ranging from foundational science to market commercialization and scaling—in harmony with the EU’s overarching priorities and specific industrial goals, such as the green and digital shifts, as well as European security and endurance. Maintaining a robust ECF and FP10, both financially and structurally, while maximizing cooperation between them, is vital to fuel the full innovation path, fortify the European industrial landscape, and fulfill the Union’s economic targets.
A narrow window of action
The timeframe for action is brief. The choices made over the next few months regarding the upcoming budget cycle will dictate whether Europe possesses the necessary R&D&I capabilities to compete on the global stage and preserve its wealth. The signing organisations remain fully prepared to collaborate with EU bodies to shape an FP10 that is courageous, appropriately funded, and capable of fostering the innovation-led economic growth that Europe crucially requires.
