DAILY NEWS
Brussels, 04 December 2025
Commission and European Investment Bank Group team up to support AI Gigafactories
The European Commission and the European Investment Bank Group (EIB Group) joined forces today to make Europe a leading AI Continent: Executive Vice-President for Tech Sovereignty, Security and Democracy Henna Virkkunen, the President of the European Investment Bank Group Nadia Calvino and the Deputy Chief Executive of the European Investment Fund, Merete Clausen signed a memorandum of understanding to support the development and deployment of AI Gigafactories across the European Union. The agreement establishes a framework to accelerate the financing and development of the AI Gigafactories that will anchor Europe's future AI infrastructure. The EIB Group will provide tailored advisory support to consortia that responded to the Commission's informal Call for Expression of Interest. This guidance will help turn ambitious concepts into bankable projects that can be submitted in the formal call for the establishment of AI Gigafactories planned for early 2026, paving the way for potential EIB co-financing.
Today's memorandum of understanding will advance the InvestAI initiative, announced by President Ursula von der Leyen at the AI Action Summit in Paris in February 2025. InvestAI mobilises a €20 billion facility to support up to five AI Gigafactories—large-scale computing facilities dedicated to the development and training of next-generation AI models.
Beyond unlocking investment, this partnership aims to translate Europe's AI vision into concrete, large‑scale facilities that can power innovation, strengthen technological sovereignty, and position the EU as a global leader in Artificial Intelligence.
More information can be found in the memorandum of understanding between the Commission and the EIB.
(For more information: Thomas Regnier — Tel. + 32 2 299 10 99; Nika Blazevic — Tel. + 32 2 299 27 17)
European Commission updates list of high-risk countries to strengthen international fight against financial crime
Today, the European Commission has updated its list of high-risk jurisdictions presenting strategic deficiencies in their national anti-money laundering and countering the financing of terrorism (AML/CFT) regimes. This update follows the decisions taken at the Financial Action Task Force (FATF) and its list of ‘Jurisdictions under Increased Monitoring' (‘grey list'), following the Plenaries of June and October 2025.
EU entities covered by the AML framework are required to apply enhanced vigilance in transactions involving the listed countries. This is important to protect the integrity of the EU financial system.
The EU has added new third-country jurisdictions to the list (Bolivia and the British Virgin Islands) and delisted a number of others (Burkina Faso, Mali, Mozambique, Nigeria, South Africa and Tanzania).
As a founding member of the FATF, the Commission is closely involved in monitoring the progress of the listed jurisdictions, helping them to fully implement their respective action plans agreed with the FAFT. Alignment with the FATF is important for upholding the EU´s commitment to promoting and implementing global standards.
Article 9 of the fourth Anti-money Laundering Directive requires the Commission to regularly update the list of high-risk third-country jurisdictions. The update of the list takes the legal form of a delegated regulation, which will enter into force after scrutiny and non-objection of the European Parliament and the Council within a period of one month (which can be prolonged for another month).
(For more information: Olof Gill – Tel.: +32 2 296 59 66; Saul Louis Goulding - Tel.: +32 2 296 47 35)
Commission approves Bosnia and Herzegovina's Reform Agenda
The European Commission has positively approved Bosnia and Herzegovina's Reform Agenda - a key step toward releasing up to €976.6 million under the EU's Reform and Growth Facility.
The Commission concluded that the Reform Agenda, submitted on 30 September 2025, meets the objectives of the Growth Facility Regulation. It sets out priority reforms to accelerate the green and digital transitions, boost private-sector development, retain talent, and strengthen fundamental rights and the rule of law. It is now for Bosnia and Herzegovina to swiftly sign and ratify both the Facility Agreement and Loan Agreement. The allocation of funding to Bosnia and Herzegovina, including pre-financing, can only start once these agreements enter into force and all conditions are fulfilled.
The Western Balkans Growth Plan offers a roadmap to bring the economies of the Western Balkans closer to the European Union. The Growth Plan is €6 billion for the region in investments, and the principle is both investments and reforms. It also provides the preparatory work to join the Single Market, allowing citizens in Western Balkans to reap some early benefits of the EU integration. The release of funds will be conditional upon the successful implementation of Reform Agenda, covering both reforms in the fundamentals area and socioeconomic reforms, in close cooperation with the European Commission.
With this approval, all six Western Balkan partners now have Reform Agendas in place and can benefit from the Facility as they advance toward EU membership.
(For more information: Guillaume Mercier – Tel. +32 2 298 05 64; Yuliya Matsyk – Tel. +32 2 296 27 16)
Greece, Bulgaria and Romania strengthen cooperation on transport infrastructure
South-East Europe has taken a significant step towards deeper regional integration and enhanced connectivity. Last night, Greece, Bulgaria and Romania signed a Memorandum of Understanding to boost cross-border cooperation on transport infrastructure.
The Memorandum of Understanding signals a shared determination to accelerate the modernisation and interoperability of strategic rail, road and inland waterway links. This deepening cooperation will support mobility, trade flows, economic cohesion and security across the region. The agreement established a Black Sea–Aegean Sea Corridor Platform (BACP), bringing together the three member states' Ministers of Transport to provide strategic guidance and political coordination for its implementation. This work will be supported by the European Coordinators and EU institutions, and will be conducted at a technical level.
Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikostas said: “This commitment by Greece, Bulgaria and Romania marks a decisive step in strengthening the most strategic North-South corridor in South-East Europe. By deepening cooperation, we are strengthening connectivity for citizens and businesses and reinforcing Europe's security, competitiveness and resilience across the Aegean, the Black Sea and the Danube. The European Commission will stand with them at every step.”
Commissioner Tzitzikostas hosted the signing ceremony in Brussels. The European Investment Bank also attended the ceremony.
More information is available online.
(For more information: Anna-Kaisa Itkonen – Tel.: +32 2 295 75 01; Anni Juusola - Tel.: +32 2 296 09 86)
Commission launches a targeted consultation to prepare for the 2026 Rule of Law Report
The European Commission has launched a targeted consultation to gather input on developments related to the rule of law, both at national and EU level, as part of the preparation for the 2026 Rule of Law Report. The consultation is open judicial associations, civil society, NGOs, international organisations, EU agencies and other interested parties. It is also addressed to business stakeholders, in view of the single market dimension, which has been given particular emphasis since the 2025 Report.
The information received will help the Commission assess rule of law developments and track progress since the publication of the last Rule of Law Report in July 2025.
The Rule of Law Report is at the centre of the EU's annual rule of law cycle. It is based on a preventive and dialogue-based approach to strengthen the rule of law at both European and national level. For previous editions of the Rule of Law Report, the targeted stakeholder consultations provided valuable insights, both horizontal and country-specific.
The consultation is available online and open until 23 January 2026.
(For more information: Markus Lammert – Tel.: +32 2 296 75 33; Cristina Torres Castillo — Tel.: + 32 2 299 06 79)
Grenoble Alpes Métropole and Aalborg win European Capital of Innovation Awards 2026
Today, the European Commission announced Grenoble Alpes Métropole (France) and Aalborg (Denmark) as the winners of the 2026 European Capital of Innovation Awards (iCapital). Supported by Horizon Europe, this year's prestigious awards mark the eleventh year of celebrating cities that excel in adopting innovative solutions to enhance the lives of their residents.
Ekaterina Zaharieva, Commissioner for Startups, Research and Innovation, said: "Congratulations to Grenoble Alpes Métropole and Aalborg for winning the 2026 European Capital of Innovation Awards. These cities show that innovation is not only about technology, but also about creating inclusive communities and improving everyday life for everyone. They are becoming global examples of how cities can grow and transform in smart and sustainable ways, supporting the goals of the EU Start-up and Scale-up Strategy and the Competitiveness Compass."
Grenoble Alpes Métropole has been awarded the title of European Capital of Innovation, receiving a €1 million prize. The city secured the top spot through its forward-thinking approach to sustainable urban development, emphasising renewable energy solutions, smart infrastructure, and community-driven innovation to tackle environmental and social challenges.
Aalborg has been named the European Rising Innovative City, receiving a €500,000 prize. Aalborg distinguished itself by effectively integrating technology into urban planning, fostering a vibrant innovation ecosystem that values collaboration across diverse sectors, including education, healthcare, and clean energy. The runner-up cities recognised for their outstanding contributions to European innovation are Liverpool (United Kingdom) and Nicosia (Cyprus).
More information about the winners can be found in the press release.
€5.2 billion of EU Emissions Trading revenues earmarked for clean transition technologies under the Innovation Fund
The European Commission has announced the opening of three new funding opportunities under the Innovation Fund with a total budget of €5.2 billion in EU Emissions Trading System (EU ETS) revenues. The 2025 Net-Zero Technologies call with a budget of €2.9 billion, the third auction for hydrogen production under the European Hydrogen Bank with €1.3 billion, and the first-ever auction for decarbonisation of industrial process heat under the Industrial Decarbonisation Bank with a €1 billion budget.
Together, these opportunities mark a major step forward in achieving the EU's climate and energy objectives by 2030 and climate neutrality by 2050. They will also significantly contribute to progress on the clean transition and deliver the Clean Industrial Deal, boosting the competitiveness and resilience of European industry.
The Net-Zero Technologies call is open for applications until 23 April 2026, 17:00 (CET) and bidders will have to apply to the hydrogen and industrial heat decarbonisation auctions until 19 February 2026, 17:00 (CET) via the EU Funding & Tenders Portal.
More information is available in the press release online.
(For more information: Anna-Kaisa Itkonen – Tel.: +32 2 295 75 01; Ana Crespo Parrondo – Tel.: +32 2 298 13 25)
Commission presents new EU Drugs Strategy and Action Plan against drug trafficking to protect citizens and disrupt criminal networks
Today, the Commission is presenting a new EU Drugs Strategy and an Action Plan against drug trafficking, as well as updated rules for monitoring and controlling drug precursors. Announced by President von der Leyen in the political guidelines and a key deliverable under the European Internal Security Strategy, ProtectEU, they set out a comprehensive EU response to the security, health, social and environmental challenges linked to the trafficking and use of illicit drugs.
Drug trafficking constitutes a global criminal business and a major threat to Europeans' wellbeing as well as Europe's security as a whole. Illicit drugs such as cocaine and synthetic drugs continue to drive violence, corruption, and the exploitation of the legal economy. Drug traffickers have developed new methods with constantly shifting trafficking routes, operating across the globe and increasingly online. At the same time, drug abuse poses a serious threat to public health, as new substances further increase the risks of poisoning and overdoses. Children and young people are particularly affected. In addition, the production of drugs causes significant environmental damage, including through toxic waste. These evolving dynamics demand a stronger, coordinated response across the EU.
The EU Drugs Strategy takes a multi-dimensional and whole-of-society approach, focused on 5 key areas:
The EU Action Plan against drug trafficking complements the EU Drugs Strategy, with 19 key operational actions across six priority areas to:
Monitoring and controlling drugs precursors
The Commission is also proposing today new rules to make the monitoring and controlling of drug precursors and designer precursors clearer, simpler, and more digital. Drug precursors are often diverted and trafficked by criminals, to produce synthetic drugs and new psychoactive substances, posing a significant threat to public safety.
The proposal includes new measures such as real-time reporting of significant seizures of drug precursors, an urgency procedure for faster controlling of substances, as well as a ban on designer precursors, significantly curbing these precursors' availability for illegal drug manufacturing. At the same time, the initiative will simplify and digitalise processes for legitimate trade, ensuring industries can thrive without excessive regulatory burdens.
Background
The EU Drugs Strategy sets out a way forward which safeguards citizens' well-being, public health, and security, and which strengthens the EU's preparedness and response to current and future drug-related challenges. The Action Plan complements the Strategy, with 19 priority actions focused on strengthening security, disrupting routes and business models of drug smugglers. At the same time, they will also support efforts to reduce drug-related harms and to reinforce international cooperation and partnerships. The updated rules for drug precursors aim to prevent that precursors are used for drug production while modernizing and simplifying controls for legitimate businesses.
The new Strategy and Action plan build on the previous EU Drugs Strategy and Action Plan for 2021-2025, and their evaluation, as well as close cooperation with Member States and consultations with civil society (in particular the Civil Society Forum Drugs), and EU agencies. The measures proposed complement the objectives of the Preparedness Union Strategy, the European Health Union, and the EU health security framework.
For more information
Questions and answers
Factsheet
EU Drugs Strategy - Migration and Home Affairs - European Commission
EU Action Plan against drug trafficking - Migration and Home Affairs
Proposal on monitoring and controlling drug precursors
Quote(s)
Disrupting drug trafficking is a matter of safety, security, and public health in our society. With young people particularly affected, with a very present online component and the global nature of this criminal business, we need to step up our response. We are therefore coming forward with an ambitious and multidisciplinary Strategy and an operational Action Plan, strengthening cross-border and international cooperation, working with platforms, investing in prevention, and ensuring people have access to the support they need. It is about building safer communities and giving every citizen the chance to thrive.
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy
The EU will not tolerate criminal networks flooding our streets with cheap drugs, fuelling violent crime, and undermining health and security in Europe. Under the EU Drugs Strategy and Action Plan on Drugs Trafficking, we are teaming up with partners worldwide to stop the traffic of narcotics into the EU. We are tightening security measures to restrict supply. And we are working to provide better access to treatment to fight the devastating effects on health. Faced with growing, sophisticated and violent drug markets, this integrated European response focused on readiness and prevention aims to deliver sustainable solutions crucial to protect our social fabric and set global standards for our partners.
Magnus Brunner, Commissioner for Internal Affairs and Migration
We remain firmly committed to controlling drug precursors, stopping criminals in their tracks before they can gain momentum. As traffickers evolve their tactics, we stand ready to tackle emerging challenges with stronger controls for customs and other competent authorities. By ensuring robust measures against designer precursors and simplifying procedures for legal trade, we are reducing opportunities for illegal drug manufacturing and protecting both our communities and legitimate businesses.
Maroš Šefčovič, Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency
Commission welcomes provisional agreement on new genomic techniques for plants
The European Commission welcomes the provisional political agreement reached today by the European Parliament and the Council of the EU on new EU rules for plants obtained by using new genomic techniques (NGTs). The agreed measures will enable more innovative plant breeding in the EU, helping farmers to grow plants that are more resilient to climate change and making them more sustainable as producers will require less resources, fertilisers and pesticides to fight pests. This will allow breeders and farmers to be more competitive by levelling the international playing field with other producers. The news measures will significantly reduce the administrative burden too, while ensuring high safety standards for NGT plants and products.
New genomic techniques are innovative tools that can boost our agricultural and bioeconomy sectors through enabling faster, more targeted and more precise changes to plant varieties than conventional breeding techniques. Thanks to them, improved plant varieties can be developed, such as those that are climate resilient, pest resistant, or provide higher yields.
Once adopted and fully implemented, the measures agreed today will create two distinct pathways for NGT plants to be placed on the market:
Next steps
The agreed Regulation must be formally adopted by the Council and the European Parliament. It will be published in the Official Journal in the course of 2026 and will start applying two years later.
The implementation of the Regulation will be supported by a robust monitoring programme of economic, environmental and social impacts of NGT products that will focus, inter alia, on aspects of sustainability and safety.
New techniques in biotechnology
Factsheet: EU's rules New Genomic Techniques
Today’s agreement is a milestone for the use of innovation in agriculture. The new rules enable use of key tools for Europe’s plant breeding, farming and food sectors to compete globally. They will also allow the EU to tackle growing challenges, such as those resulting from new plant pests and diseases. With these new rules, the EU adapts its legislation to scientific progress. This will enable market access for SMEs and for NGT applications tailored to specific European needs while upholding the high European safety standards.
Olivér Várhelyi, Commissioner for Health and Animal Welfare
Commission opens antitrust investigation into Meta's new policy regarding AI providers' access to WhatsApp
The European Commission has opened a formal antitrust investigation to assess whether Meta's new policy on artificial intelligence (‘AI') providers' access to WhatsApp may breach EU competition rules.
Meta's new policy, announced in October 2025, prohibits AI providers from using a tool allowing businesses to communicate with customers via WhatsApp, the ‘WhatsApp Business Solution', when AI is the primary service offered. Businesses may still use AI tools for ancillary or support functions, such as automated customer support offered via WhatsApp. The Commission is concerned that such new policy may prevent third party AI providers from offering their services through WhatsApp in the European Economic Area (‘EEA').
Meta, headquartered in the US, is a technology company that provides a range of online communication and social networking services. Its main products include WhatsApp, a messaging service that enables users to exchange text messages, voice notes, photos, videos, documents and make voice and video calls.
WhatsApp also allows businesses to communicate with their customers through the platform. Indeed, several AI providers offer access to their AI assistants through WhatsApp, enabling users to interact with conversational AI directly within the app for tasks such as answering questions, generating content or accessing customer support.
The Commission understands that Meta will implement the new policy through an update to WhatsApp terms and conditions for business users, its ‘WhatsApp Business Application Programming Interface terms'. For AI providers already present on WhatsApp, the update will apply as of 15 January 2026, while for AI providers new to WhatsApp the update has already been applicable since 15 October 2025.
As a result of the new policy, competing AI providers may be blocked from reaching their customers through WhatsApp. On the other hand, Meta's own AI service ‘Meta AI' would remain accessible to users on the platform.
The formal investigation will cover the EEA except for Italy. This is to avoid an overlap with the Italian Competition Authority's ongoing proceedings for the possible imposition of interim measures concerning Meta's conduct.
If proven, the practices under investigation may breach EU competition rules that prohibit the abuse of a dominant position (Article 102 of the Treaty on the Functioning of the European Union (‘TFEU')) and Article 54 of the European Economic Area (‘EEA') Agreement).
This investigation is part of the Commission's ongoing monitoring of AI markets in the EEA, following the consultation launched in January 2024 and the publication of a Policy paper on 19 September 2024.
The Commission will now carry out its in-depth investigation as a matter of priority. The opening of a formal investigation does not prejudge its outcome.
Article 102 TFEU and Article 54 of the European Economic Area (‘EEA') Agreement prohibit the abuse of a dominant position that may affect trade and prevent or restrict competition within the Single Market. The implementation of Article 102 TFEU is defined in Regulation 1/2003.
Article 11(6) of Regulation 1/2003 provides that the opening of proceedings by the Commission relieves the competition authorities of the Member States of their competence to apply EU competition rules to the practices concerned. In this specific case, the formal investigation will cover the entire EEA, except for Italy.
Article 16(1) further provides that national courts must avoid adopting decisions which would conflict with a decision contemplated by the Commission in proceedings it has initiated.
There is no legal deadline for bringing an antitrust investigation to an end. The duration of an antitrust investigation depends on a number of factors, including the complexity of the case, the extent to which the companies concerned cooperate with the Commission and the parties' exercise of the rights of defense.
More information on the investigation will be available on the Commission's competition website, in the public case register under the case number AT.41034.
AI markets are booming in Europe and beyond. We must ensure European citizens and businesses can benefit fully from this technological revolution and act to prevent dominant digital incumbents from abusing their power to crowd out innovative competitors. This is why we are investigating if Meta’s new policy might be illegal under competition rules, and whether we should act quickly to prevent any possible irreparable harm to competition in the AI space.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition
Commission sets out roadmap for future-proof quality jobs in a competitive EU
Today, the European Commission presented the Quality Jobs Roadmap, a strong commitment to improving job quality and creating high-quality and future-proof jobs in Europe. The Commission also launched a first-stage consultation on the forthcoming Quality Jobs Act, a new legislative proposal to ensure workers' rights while keeping up with technological, economic and societal changes.
Adequate wages and quality jobs are essential to boost productivity, strengthen Europe's competitiveness, and protect against in-work poverty. While job quality in the EU is generally high, workers continue to feel the impact of global crises and rising living costs. At the same time, companies face labour and skills shortages while striving to remain competitive in a fast-changing global environment.
The Roadmap focuses on the areas where EU action can make the greatest difference:
The Roadmap has been developed based on extensive consultations with European and national trade unions and employer organisations (‘social partners'), mobilising around 200 organisations across the EU and engaging in more than 50 discussions in all Member States.
Towards a Quality Jobs Act
As announced by President von der Leyen in her 2025 state of the EU address and the Commission's 2026 work programme, the Commission will propose a Quality Jobs Act in 2026. The new law will update EU rules protecting workers while supporting productivity and competitiveness.
Today's first-stage consultation seeks social partners' views on the direction of EU action to improve job quality. The consultation highlights several areas that a future law could cover, including:
This new consultation will complement the right to disconnect and telework consultation finalised in October 2025.
Next Steps
The first-stage consultation of social partners on the future Quality Jobs Act will run until 29 January 2026.
President von der Leyen announced the Quality Jobs Roadmap in her 2024–2029 Political Guidelines to ensure competitiveness and prosperity in the EU.
The Quality Jobs Roadmap builds on several initiatives such as the Competitiveness Compass, the Union of Skills, the Clean Industrial Deal, all of which underline quality jobs as key to competitiveness, sustainable growth and a strong European social model. Its priorities are reflected in the proposed Multiannual Financial Framework, which allocates at least 14% of national and regional partnership funding to EU social objectives.
For More Information
Quality Jobs Roadmap: Communication
Questions & Answers
First-stage consultation on Quality Jobs Act
Webpage: Competitiveness
Every job in Europe must be a quality job. That is how we attract talent, reduce in-work poverty, and strengthen Europe’s competitiveness and social cohesion. Today’s Roadmap paves the way for a Quality Jobs Act to safeguard workers’ rights and support them as workplaces modernise.
Roxana Mînzatu, Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness
Commission launches major package to fully integrate EU financial markets
Today, the European Commission adopted a comprehensive package of measures designed to remove barriers and unlock the full potential of the EU single market for financial services. This package is a central component of the Savings and Investments Union (SIU) strategy, aiming to create a more integrated, efficient, and competitive financial system providing EU citizens better options for growing their wealth and supporting businesses in accessing funding.
More integrated capital markets are essential for fortifying the EU's economic strength and achieving strategic priorities such as competitiveness, digital and green transitions, defence and security. Deeper integration of financial markets is not an end, but a means to create a single market for financial services greater than the sum of its national parts. Simplified access to capital markets reduces costs and makes the markets more appealing for investors and companies across all Member States, irrespective of size.
Despite recent progress, EU financial markets remain significantly fragmented, small and lack competitiveness, missing out on potential economies of scale and efficiency gains. In 2024 the market capitalisation of stock exchanges amounted to 73% of EU GDP, compared to 270% in the US. Financial institutions still face varying requirements and practices across Member States, hindering cross-border operations and restricting opportunities for both citizens and businesses, negatively impacting the economy and the EU's competitiveness.
Today's package simplifies the EU regulatory and supervisory framework significantly, and comes just nine months after its announcement in the SIU strategy, underscoring the political importance and urgency of this issue.
Proposed measures
Removing obstacles to market integration and leveraging scale
The package aims to eliminate barriers to integration in trading, post-trading, and asset management. It seeks to enable market participants to operate more seamlessly across Member States, thus reducing cost differences between domestic and cross-border transactions. Proposed measures include enhancing passporting opportunities for Regulated Markets (RMs) and Central Securities Depositories (CSDs), introducing 'Pan-European Market Operator' (PEMO) status for operators of trading venues to streamline corporate structures and licenses into a single entity or single license format, and streamlining the cross-border distribution of investment funds (UCITS and AIFs) in the Union.
Facilitating innovation
The package focuses on removing regulatory barriers to innovation related to distributed ledger technology (DLT). It adapts the regulatory framework to support these technologies and amends the DLT Pilot Regulation (DLTPR) to relax limits, increase proportionality and flexibility, and provide legal certainty, thus encouraging the adoption of new technologies in the financial sector.
Streamlining and enhancing supervision
Improvements to the supervisory framework are closely linked to the removal of regulatory barriers. The package aims to address inconsistencies and complexities from fragmented national supervisory approaches, making supervision more effective and conducive to cross-border activities, while being responsive to emerging risks. This includes transferring direct supervisory competences over significant market infrastructures such as certain trading venues, Central Counterparties (CCPs), CSDs, and all Crypto-Asset Service Providers (CASPs) to the European Securities and Markets Authority (ESMA) and enhancing ESMA's coordination role for the asset management sector.
Simplification and burden reduction
As seen in previous SIU measures, the package will simplify the capital markets framework further by converting directives into regulations, streamlining level 2 empowerments, and reducing national options and discretions to prevent gold-plating.
Strengthening the EU's economy and bolstering its international position are central to the European Commission's mandate. The Competitiveness Compass outlines how to achieve these goals, with the Savings and Investments Union (SIU) Strategy acting as a key enabler of this plan. To improve EU competitiveness, the European Council emphasises the importance of creating unified and robust European capital markets that everyone in the EU can access. In March 2025, the Council asked the Commission to work on capital market oversight and reducing fragmentation. In September 2025, the Parliament supported the Commission's plan for new legislation to improve trading and post-trading systems, remove cross-border barriers, and update the framework for new technologies.
The proposals must now be negotiated and approved by the European Parliament and the Council. These components are interconnected and together form a cohesive set of reforms essential for establishing a genuine single market across the entire investment chain. Maintaining the unity of the package is crucial. The Commission is dedicated to collaborating closely with the European Parliament, Member States, and other stakeholders to ensure the swift and effective implementation of these measures.
Communication
For too long, Europe has tolerated a level of fragmentation that holds back our economy. Today we are making a deliberate choice to change course. By building a real Single Financial Market, we will give people better opportunities to grow their wealth, and we unlock stronger financing for Europe’s priorities. Market integration is not a technical exercise — it is a political imperative for Europe’s prosperity and global relevance.
Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments Union
Driving Europe's clean industrial transformation
The general call for net-zero technologies (IF25 NZT call) seeks to bridge investment gaps, attract public and private capital, and strengthen Europe's leadership in clean-technology manufacturing and deployment.
With an allocated budget of €2.9 billion, it supports decarbonisation projects that demonstrate highly innovative technologies and processes that are sufficiently mature and have a significant potential to reduce greenhouse gas (GHG) emissions. It involves projects of different scale, as well as those focusing on the manufacturing of components for renewable energy, energy storage, heat pumps and hydrogen production, including electric-vehicle batteries.
Projects that can apply to the call will be assessed based on their potential to reduce GHG emissions, degree of innovation, project maturity, replicability and cost efficiency. Recognising that small-scale innovations can play an important role in Europe's decarbonisation efforts, there will be a new dedicated bonus point for projects coordinated and implemented only by SMEs.
Supporting industrial transformation through hydrogen
Clean hydrogen is an important alternative to replace fossil fuels, and it is increasingly used for the decarbonisation of heavy industry and transport sectors. With €1.3 billion, the third auction under the European Hydrogen Bank (IF25 Hydrogen Auction) is designed to provide cost-efficient support for the production of renewable fuels of non-biological origin (RFNBO) hydrogen or electrolytic low-carbon hydrogen across three topics, including a new topic for producers of hydrogen with maritime or aviation off takers.
Projects selected under the auction will receive support in the form of a fixed premium payment upon verified and certified production of hydrogen for a maximum period of 10 years.
Tackling emissions with decarbonising industrial process heat
The first European-wide auction for decarbonising industrial process heat (IF25 Heat Auction) is a milestone in establishing the future Industrial Decarbonisation Bank to address one of the EU's biggest sources of GHG emissions. Up to €1 billion will be used to support electrified and direct-renewable heat production, which is currently responsible for three-quarters of industrial emissions. Support will be auctioned to projects which can deliver the most cost-effective CO2 abatement, closing the cost gap between sustainable solutions and fossil fuel-based alternatives for industrial process heat.
Opened to different project sizes and across all industrial sectors, the auction will support the deployment of technologies such as heat pumps, electric boilers, resistance and induction heating, direct renewable heat solutions (solar thermal or geothermal) as well as hybrid projects that combine different technologies. Support is granted as an output-based fixed premium, linked to verified decarbonised heat production and paid for a maximum period of five years.
In addition, Member States have the possibility to leverage on the Innovation Fund's evaluation process and a streamlined state aid approval process. Via the 'Auctions-as-a-Service' scheme, they are able to dedicate national funds to support projects that have passed the evaluation award criteria but were not selected for Innovation Fund funding due to budgetary limitations. Germany and Spain have confirmed their participation in Auctions-as-a-Service in these auctions. Germany will dedicate a further €1.3 billion in national funds to support RFNBO hydrogen production projects nationally. Spain will also dedicate a total of €465 million in national funds, of which €415 million will support hydrogen projects and an additional €50 million to support industrial heat decarbonisation projects.
The IF25 NZT call is open for applications until 23 April 2026, 17:00 (CET), via the EU Funding & Tenders Portal. Applicants are strongly encouraged to attend the Info Day which will take place on 16 December. Successful applicants are expected to sign grant agreements by the first quarter of 2027.
For the IF25 Hydrogen Auction and IF25 Heat Auction, bidders have until 19 February 2026, 17:00 (CET) to apply via the EU Funding & Tenders Portal. Info Days for both auctions will take place on 10 December 2025. Successful bidders are expected to sign grant agreements within nine months after the call closure.
The Innovation Fund is one of the world's largest funding programmes for the demonstration and commercialisation of innovative low-carbon technologies, financed by revenues from the EU ETS. With an estimated budget of around €40 billion between 2020 and 2030), the Fund aims to create financial incentives for companies and public authorities to invest in cutting-edge low-carbon technologies and support Europe's transition to climate neutrality.
Counting all ongoing projects and those under grant agreement preparation, the Innovation Fund has currently awarded over €15.8 billion in support to more than 275 projects through its previous calls for proposals. Both Hydrogen and Heat auctions use a competitive, market-based approach and follow a pay-as-bid model. Bids are ranked by price within each topic and are awarded until the available budget is allocated. For the hydrogen auction, bids are ranked by price in euro per kilogram of hydrogen produced; for the heat auction, by price in euro per tonne of CO2 abated.
Under the auctions, Project Development Assistance (PDA) remains available for projects wanting to improve their maturity through high-quality technical and financial advisory support provided by the European Investment Bank. Furthermore, the Strategic Technologies for Europe Platform (STEP) Seal will be awarded to projects that meet all evaluation criteria, including both those that are selected for funding and those that are not due to budgetary limitations. The Seal aims to facilitate high-quality projects access to additional public and private funding.
Questions and answers on the IF25 NZT Call
Questions and answers on the IF25 Auctions
EU Funding and Tenders Portal
Innovation Fund projects dashboard
IF25 NZT Call
IF25 Heat Auction Call
IF25 Hydrogen Auction Call
IF25 NZT Call Info Day
IF25 Heat Auction Info Day
IF25 Hydrogen Auction Info Day
Innovation Fund
By channelling €5.2 billion of EU ETS revenues into net-zero technologies, hydrogen and industrial heat decarbonisation, Europe is not just setting the stage for a greener future and technological leadership but investing in its own future. The first ever pilot auction of the Decarbonisation Bank, is delivering on one of the key pillars of the Clean Industrial Deal, opening the way for the € 100 billion that is foreseen to be channelled into the decarbonisation of our industry. This will support EU industry in becoming the global innovation leaders of tomorrow.
Innovation is the driving force that will power Europe’s journey to net-zero. With this new €5.2 billion call, we are backing the net-zero technologies and industries that will secure Europe’s leadership in the global clean-tech race. These investments will help scale up solutions that cut emissions, strengthen our competitiveness, and create sustainable jobs across the continent.
Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth