European chemicals industry welcomes EU competitiveness fund

Brussels – The European chemicals industry has welcomed the EU Commission’s proposals for a new European Competitiveness Fund (ECF) and the next Horizon Europe research programme, set to begin in 2028.

In separate statements, the German chemical industry association VCI and Brussels-based European chemical industry council (Cefic) supported the increased funding for research and innovation but warned that the approach needed clearer priorities and better alignment with industrial needs.

The proposals, unveiled 17 July as part of the EU’s multiannual financial framework, aim to boost innovation, support key technologies, and improve the commercialisation of research.

The package, according to the European Commission, consolidates 14 current individual funding instruments in one framework to operate as “an investment capacity” to accelerate Europe’s industrial transformation.

In a 17 July statement, VCI said the plans provide a “tailwind for research and development” in the EU but stressed that industry-relevant key technologies are not sufficiently taken into account.

VCI's head of science Ulrike Zimmer said the proposal was in the right direction with “more budget for research, more strategic focus, less bureaucracy”,

However, she noted that technologies for "new chemical materials and processes" were still missing from the ECF and Horizon Europe, despite being central to green and digital goals.

The VCI also flagged confusion around how responsibilities will be divided between the two programmes.

“Without clear responsibilities, frictional losses are likely,” Zimmer said.

In its statement Cefic said the Commission’s plans are an “important step” toward strengthening Europe’s industrial base.

It welcomed the focus on competitiveness and the move to de-risk investments in strategic sectors.

“These aspects are critical to accelerate innovation and enable Europe’s industrial transformation,” it said.

Cefic also called for stronger coordination across member states and EU-wide support mechanisms.

“Only EU-level coordination and fit-for-purpose state aid rules can deliver the scale and impact needed,” it said.

Through the ECF, Cefic added, Europe can send a clear message that it is “serious about supporting [the industry’s] transformation and long-term competitiveness.”