European Parliament Pushes Horizon Europe Budget to €200 Billion for 2028-2034 Cycle, Eyeing Research Sovereignty
The European Parliament is pushing for the next Horizon Europe research and innovation programme to be funded at €200 billion for the 2028-2034 cycle — significantly above the Commission’s proposed €175 billion. The negotiating position, debated during the May 2026 plenary, frames research funding as central to European economic and strategic sovereignty in a global context dominated by US tariff pressure and aggressive Chinese state subsidies.
The €200 billion ambition
The €200 billion proposal represents a 33% increase over the current Horizon Europe envelope (€95.5 billion for 2021-2027) when adjusted for the longer cycle. Parliament rapporteurs argue that doubling the budget is the only credible response to the Draghi report on European competitiveness and to the growing innovation gap with the United States and China. The Commission’s €175 billion figure already represented an increase but stops short of what MEPs consider necessary.
Strategic priorities
The proposed allocation prioritises deeptech, artificial intelligence, space, biotechnology and clean energy. New ring-fenced envelopes are foreseen for: a European Defence and Dual-Use Innovation Fund (€15 billion), a Strategic Critical Materials Programme (€8 billion) and a Sovereign Cloud Initiative (€10 billion). The European Innovation Council (EIC) would see its budget tripled to €25 billion, with a clear mandate to back European unicorns competing with US and Chinese hyperscalers.
Regional balance
A politically central feature of the Parliament position is the regional research plan: more attention toward local ecosystems, funding access in widening countries (Eastern and Southern member states), and stronger university-industry ties outside the dominant innovation hubs of Paris, Munich, Amsterdam and Stockholm. The aim is to prevent Horizon Europe from continuing to concentrate funding flows in the same five member states that currently absorb roughly 70% of competitive grants.
The Council resistance
The Council of the EU remains divided. Frugal member states — led by the Netherlands, Sweden, Denmark and Austria — argue that the Commission’s €175 billion is already a stretch and that any increase must be matched by reductions elsewhere in the Multiannual Financial Framework (MFF). France, Italy, Spain, Portugal and Greece broadly support the Parliament’s higher figure. Germany, traditionally cautious, has signalled openness given the Merz coalition’s emphasis on industrial sovereignty. Final compromise will land somewhere between €180 and €195 billion.
What founders should watch
For startup founders and SMEs, the Horizon Europe negotiation matters far beyond Brussels: it determines where grants go, which sectors get attention, how universities and startups cooperate, and which ventures can still afford to build in Europe. Funding follows political intent long before founders notice the paperwork. The May 2026 signals are unusually clear: deeptech, regional growth, green and digital projects, and strategic sectors like space are where public money will concentrate.
