The European Commission’s first outline of the post-2027 Multiannual Financial Framework (MFF) shows a clear shift in priorities – focusing more on boosting Europe’s competitiveness, resilience, and geopolitical readiness. Within this, there are two major funding streams that could bring real opportunities for the water sector.
First, there’s the proposed European Competitiveness Fund (ECF), which takes up 21% of the overall budget (€362 billion). This fund brings together 14 existing programmes under four broader policy areas, including the clean transition, industrial decarbonisation, and resilience. This is a real chance for water utilities to access funding to boost energy efficiency, cut emissions, and strengthen both physical and cyber resilience. The ECF’s emphasis on the bioeconomy is especially relevant, opening the door to projects like nutrient recovery, biogas production, and water reuse—key areas where the water sector can help drive Europe’s circular and green economy.
Second, the European Economic, Territorial, Social, Rural and Maritime Sustainable Prosperity and Security Fund will account for 44% of the budget (€772 billion). Despite a reduced share, this fund will remain essential for supporting investment in water infrastructure, especially in cohesion and rural development areas. But accessing it will depend heavily on the strength of each country’s National and Regional Partnership Plans (NRPPs)., so it is important for national governments to prioritise water infrastructure and services as these are critical for public health, economic sustainability, and regional cohesion.
We are, however, concerned about the decision to merge biodiversity into a broader “climate and environment” target. This risks downplaying the EU’s long-term commitment to halting biodiversity loss. Healthy ecosystems play a crucial role in regulating the water cycle, improving water quality, and increasing climate resilience – so biodiversity protection must remain a clear and separate priority.
Ultimately, the shape of the MFF, how the money is spent, and how effectively it’s implemented will be decisive. Without strong investment in water systems, nature protection, climate action, and pollution control, the EU risks falling short of the ambitions set out in the Water Resilience Strategy. Getting this right is essential for securing clean and affordable water for all Europeans and supporting a sustainable, competitive economy.