As Europe prepares for its next long-term budget beginning in 2028, aviation stakeholders face a critical juncture. The European Commission’s Directorate-General for Research and Innovation (DG RTD) will play a pivotal role in shaping funding priorities that could determine the industry’s competitiveness for years to come. With public consultations underway and preparation for the next Multiannual Financial Framework (MFF) gaining momentum, awareness of the evolving landscape of EU research funding becomes essential.
The Role of DG RTD
The Directorate-General for Research and Innovation develops and implements the Commission’s policies on research and innovation. It oversees Horizon Europe and EU Missions while supporting the Commission’s 2024-2029 priorities by funding breakthrough innovation and driving green and digital transformations. Further, DG RTD is focused on developing an EU start-up and scale-up strategy while expanding the European Research Area and enhancing European Research Infrastructure capacity.
Budgetary Context
In the current MFF 2021-2027, Horizon Europe represents a cornerstone investment with a total budget of approximately €95.5 billion (including €5.4 billion from NextGenerationEU), constituting about 8.9% of the total MFF allocation of €1.07 trillion. The February 2024 MFF revision channeled additional funding to strategic sectors through the Strategic Technologies for Europe Platform (STEP), though Horizon Europe faced reductions only partially offset by reusing research commitments from the previous framework.
On 12 February 2025, the Commission presented a Communication outlining the trajectory for the next MFF, which will commence in 2028 and span at least five years. The Commission advocates for an ambitious budget structured around five core principles: more focused, simpler, greater impact, more flexible, and delivering on EU priorities.
The New Commissioner for Startups, Research and Innovation
In September 2024, Commission President Ursula von der Leyen appointed Ekaterina Zaharieva as Commissioner for Startups, Research and Innovation. Her mandate explicitly positions “research and innovation, science and technology at the centre of our economy” as catalysts for European competitiveness in the clean and digital economy transformation.
Commissioner Zaharieva’s portfolio focuses on creating an ecosystem where researchers and innovators can thrive, emphasising groundbreaking research and disruptive innovation in strategic fields while strengthening both the European Innovation Council and European Research Council as key funding instruments.
SESAR and the Future of European ATM
A critical concern for the aviation sector is securing the future of the Single European Sky ATM Research (SESAR) initiative. For over two decades, SESAR has been instrumental in modernising Europe’s air traffic management (ATM) infrastructure, delivering measurable improvements in efficiency and environmental performance.
The successor to Horizon Europe must allocate substantial resources to SESAR or a successor programme to ensure continued progress. Without adequate representation in the next MFF, this critical sector could face significant funding shortfalls precisely when the stakeholders are still in the midst of transformation regarding automation, AI integration, cybersecurity challenges, massive expansion of space operations, new dimension of military drones, and advanced air mobility (AAM) solutions integration. In parallel, the forecasts predict continuous traffic growth.
Competing Priorities in a Complex Landscape
Forthcoming discussions on funding priorities will intensify against the backdrop of ambitious EU policy goals and a challenging economic environment. The Commission’s ‘Competitive Compass’ will evaluate all budget requests against defined strategic priorities, potentially challenging aviation’s position despite its critical infrastructure status and ambitious decarbonisation requirements.
The new Commission structure introduces additional complexity, with a dedicated Commissioner for Defence and Space (DG DEFIS), DG MOVE with responsibility for aviation and airspace management, while research funding responsibility resides with DG RTD through Horizon Europe. Aviation stakeholders need to advocate their case with all DGs and need to act urgently as the policy priorities are shaped right now.
Timeline and Strategic Considerations
The MFF development timeline is progressing rapidly:
- May 2025: Public consultation concludes
- July 2025: Commission presents formal MFF proposal
- 2025-2027: Negotiation between Commission, Parliament and Council
- January 2028: Implementation commences
Following consultations, Budget Commissioner Piotr Serafin will conduct a “Tour d’Europe” before finalising the proposal, creating a critical window for aviation stakeholders to influence the direction and priorities of the framework.
The next MFF represents both challenge and opportunity for European aviation. The sector constitutes pivotal economic drivers and critical infrastructure with significant civil-military dimensions. To secure necessary investments, stakeholders must articulate their alignment with Europe’s strategic objectives in competitiveness, sustainability, and technological sovereignty.
Stakeholders must act now
Experience shows that the MFF development demands stakeholders’ engagement throughout the entire process, or budgets get allocated elsewhere. Immediate action is critical to shaping the Commission’s proposal expected in July 2025 and stakeholders need to be prepared for the two-year negotiation period with the Commission, Parliament and Council:
- Member State Engagement: Aviation authorities, research institutions and industry leaders must engage directly with national government representatives to ensure priorities are reflected in national positions during Council negotiations.
- MEP Advocacy: Conduct targeted briefings for Members of the European Parliament, particularly those on TRAN and ITRE committees who will shape the Parliament’s position on research priorities.
- Brussels Association Coordination: Industry associations must synchronise lobbying efforts, highlighting:
- The strategic necessity of SESAR funding in the post-Horizon Europe landscape
- Aviation technologies’ dual-use potential aligned with Europe’s strategic autonomy agenda
- Aviation’s pivotal role in achieving climate objectives through sustainable aviation fuels and next-generation aircraft
- Compelling Storytelling: Develop strategic narratives that frame aviation as integral to Europe’s defense capabilities, green transformation, and technological sovereignty. Position the sector as critical infrastructure that simultaneously enables economic connectivity while developing dual-use technologies with defense applications. Showcase how targeted aviation innovations directly strengthen Europe’s competitive position globally, making continued public investment essential rather than optional for maintaining European leadership in this strategically vital domain.
The Airspace World conference in Lisbon this May presents a timely opportunity for stakeholders to collectively address these funding challenges and reinforce the sector’s position as a technology leader, innovation driver and strategically vital sector for Europe.
