Simplification, putting SMEs at the centre, providing a clear definition of what is meant by competitiveness for the purposes of this proposal, adopting place-based and market-driven approaches are crucial for Europe’s competitiveness. These were the main points raised by Pehr Granfalk, the European Committee of the Regions (CoR) rapporteur on the European Competitiveness Fund (ECF), during the event “Fuelling Europe’s SMEs: Debate on the European Competitiveness Fund” held at the European Parliament.
Granfalk stressed that local and regional authorities are not just potential beneficiaries, but also enablers, coordinators, and real testbeds for innovative ecosystems — and must therefore be recognised as central actors in the design of the Fund. “At the local level, we have universities, research centres, and creative ecosystems — in many ways, this is where SMEs actually operate and innovate. Without these ecosystems, SMEs will struggle to access and benefit from these opportunities.”
He further underlined that SMEs often lack the capacity, time, and administrative resources to access EU funding, as current structures tend to favour larger companies with greater institutional support. Ensuring real accessibility for SMEs is therefore essential if the Fund is to deliver on its objectives.
Granfalk also pointed to the need for balance in the design of the Fund, particularly when it comes to flexibility, warning that flexibility must not come at the expense of long-term predictability — especially for strategic investments and innovation projects that require sustained support over time.
These priorities are reflected in the CoR opinion on the European Competitiveness Fund, adopted during the last plenary session, which places SMEs, territorial ecosystems, and balanced competitiveness at the heart of the EU’s future economic strategy.
Christian Ehler MEP, Co-rapporteur on the European Competitiveness Fund, stressed the importance of clearly defining competitiveness within the framework of the Fund. He underlined that competitiveness should not be treated as a vague political concept, but understood in concrete economic terms. In this context, he emphasised that competitiveness is essentially about the productivity of companies and their ability to perform and compete in international markets. Ensuring that this understanding is reflected in the design of the Fund will be key to delivering real economic impact. He recalled that flexibility is a price-driver but it should also act to de-risk, and therefore called for a clarifying of the intentions and methodologies with the European Commission, with a view to arriving towards a sharper, targeted focus of this ECF, part of the next Mult-annual Financial Framework proposal.
Marion Walsmann MEP, Vice-President of SME Europe and former CoR member, highlighted the central role of SMEs and mid-cap companies in Europe’s economy: “Companies and SMEs are the driving force of our economy. SMEs in particular play a crucial role in scaling innovation in Europe.” She also pointed to the increasingly challenging environment in which they operate, with rising costs, regulatory pressures, and growing expectations to deliver on both the digital and green transitions — often with limited resources. "Competitiveness in Europe is no longer just about innovation, it is about the ability to scale, to invest, and to remain competitive under real economic constraints. This is precisely the context in which the European competitiveness fund must prove its value."
Background
The European Competitiveness Fund (ECF) aims to boost innovation, growth, and competitiveness across Europe, with a strong focus on empowering SMEs as the backbone of the European economy. The debate brought together policy makers representatives of four EU Institutions to discuss how the Fund can support SMEs, drive industrial innovation, and strengthen Europe’s Single Market.
The event was moderated by Horst Heitz, Secretary General of SME Europe of the EPP.