Introduction

The European Commission has just proposed its boldest long-term budget yet: the EU Multiannual Financial Framework (MFF) for 2028–2034, worth nearly €2 trillion. Designed around the theme of a “Stronger Europe,” this new financial strategy will reshape how funding flows across sectors—especially for innovation, green tech, defence, and digitalisation.

But what does this mean for startups, SMEs, and research-driven businesses? In this article, we’ll break down how EU funding is set to evolve and where you should look to secure your share in the next funding cycle.

What’s Changing in EU Funding Post-2028?

1. New Funding Pillars Will Replace Old Programmes

The EU is simplifying its budget architecture by grouping dozens of programmes into three core pillars:

• European Competitiveness Fund: The main driver of innovation, digital transition, and industrial leadership.

• National & Regional Partnership Plans: Successor to cohesion and structural funds, focused on local growth, energy transition, and resilience.

• Global Europe/External Action: EU investments outside the bloc.

What it means for you:
Expect fewer standalone programmes like Horizon Europe or Digital Europe in their current form—they may be integrated into the new Competitiveness Fund. This shift means grant seekers will need to monitor thematic calls, not just named programmes.

2. More Flexibility, Less Pre-Allocation

The new MFF reduces rigid allocations and reserves more unassigned funds to adapt to evolving challenges (e.g., pandemics, war, AI disruption).

What it means for you:
Agility will be rewarded. Startups aligned with EU political priorities—like AI, green tech, defence, and supply chain autonomy—are likely to benefit from ad hoc instruments or emergency calls.

3. Defence, Dual-Use Tech & Industrial Sovereignty Will Rise

For the first time, defence and strategic autonomy are front and center in the EU budget. The Competitiveness Fund includes funding for dual-use technologies (e.g., AI, space, cybersecurity) that can serve both civilian and defence needs.

What it means for you:
If you're in deep-tech, semiconductors, AI, or robotics, expect new funding channels beyond Horizon—potentially under the umbrella of industrial strategy or security frameworks.

4. Cohesion Policy Will Be Modernised

€865 billion is earmarked for “National and Regional Partnership Plans” that will promote green energy, innovation hubs, and tech upskilling—particularly in less-developed EU regions.

What it means for you:
If your startup is based in Central or Eastern Europe, or in a non-capital region, you could access regionally managed EU funds with more autonomy and less red tape.

5. EU Funding Will Be Linked to Performance and Policy Alignment

With rising political pressure to show results, the EU plans to tie funding more directly to policy outcomes—such as emissions reduction, digitalisation metrics, or technology adoption rates.

What it means for you:
You’ll need to demonstrate measurable impact more than ever. AI tools like Cogrant can help translate your project vision into policy-aligned language to boost proposal scores.

Where to Look for Funding in 2028–2034

While programme names may evolve, here’s where to focus your radar:

• European Competitiveness Fund – the go-to place for innovation, deep tech, AI, and clean energy.

• Regional Partnership Plans – especially for local pilot projects, demo sites, or startup hubs.

• European Defence Fund (likely merged) – if your tech has a national security angle.

• Crisis Instruments & Flex Funds – for fast-track grants in emerging fields like quantum, biosecurity, or climate resilience.

• Public-Private Partnerships (PPPs) – likely to grow, especially in industrial decarbonisation and digital infrastructure.

Tip: Use Cogrant’s Grant Search Tool to stay ahead of evolving call structures and new funding sources.

Final Thoughts: How to Prepare

The 2028–2034 EU budget will prioritise strategic autonomy, innovation leadership, and regional resilience. Navigating it will require agility, insight, and alignment with EU priorities.

Here’s how to stay prepared:

• Track EU policy agendas (e.g., AI Act, Green Deal, Strategic Technologies for Europe Platform).

• Start building consortiums in key thematic areas.

• Leverage AI tools like Cogrant to adapt quickly to new funding formats and evaluation trends.

Need help? Book a free consultation with Cogrant’s experts to align your project with future EU calls.

FAQ

Q: When will the new EU budget be approved?
A: The Commission proposal was released in July 2025. Final negotiations with Member States and Parliament are expected through 2026–2027, with implementation from 2028.

Q: Will Horizon Europe still exist after 2027?
A: It may continue in some form, but it's likely to be merged or rebranded into a broader pillar like the European Competitiveness Fund.

Q: How can I track new EU funding calls during the transition?
A: Use platforms like Cogrant Search to receive curated, real-time updates based on your project domain and readiness level.