and how bridging the innovation gap can help tackle the European Union’s global challenges with a healthier and longer-lasting strategy
The challanges of next Multiannual Financial Framework
The European Commission presented its proposal for its next seven-year budget in July 2025. The next Multiannual Financial Framework amounts to almost 2 trillion euros for the period 2028-2034, and its motto „Investing in people, Member States and regions” aims to put the emphasis on European cohesion.
At the heart of the next MFF proposal stands the brand new European Competitiveness Fund. The proposed ECF weighs a considerable 21% of the total EU budget. Within the ECF, funding of EU’s flagship R&I programme, Horizon Europe has a doubled to EUR 175bn. Both files are currently in front of the European Parliament’s ITRE Committee and tough legislative negotiations about the details are expected to last throughout 2026.
Problem areas of current innovation funding that the European Commission aims to target include the complexity of the funding streams; high barriers to entry for new applicants; delay in access to funding; lack of strategic steer and coordination; gaps in funding for different maturity levels of projects, amongst others. The new MFF promises to streamline funding while providing greater flexibility in order to enhance European innovation performance and improve the EU’s global competitiveness.
But the challenges of Europe’s global competitiveness according to former ECB President Mario Draghi, lay deeper than just streamlining a few funding instruments. “Although Europe is a world leader in innovation, it is squandering early-stage advantages owing to the weaknesses in its innovation ecosystem.” – spelles out the Draghi Report that is the guiding star of the next seven-year budget – “The innovation potential of the EU remains underused, as researchers and innovators do not fully exploit economies of scale and cooperate with other partners across the EU.”
Why strategic partnership with Türkiye and the Turkic States is essential
The innovation cooperation of the European Union, Hungary, and Türkiye has in recent years become an increasingly prominent strategic dimension. In today’s global technological competition, it is no longer merely capital and markets that determine the room for maneuver of states, but knowledge, research and development, and technological sovereignty.
The central instrument of the European Union’s innovation policy is the Horizon Europe programme, which is also open to associated countries. Türkiye is an active participant in EU research framework programmes, meaning that EU–Turkish scientific cooperation takes place within institutionalized frameworks. This provides opportunities for Hungarian research institutes, universities, and businesses to participate in joint consortia in strategically significant projects from energy and digitalization to the health industry.
The perspective of cooperation is further broadened by the growing economic and technological potential of the Turkic world. The Organization of Turkic States, whose members include Azerbaijan, Kazakhstan, Uzbekistan, and Kyrgyzstan brings together a dynamically developing region of more than 170 million people.
Kazakhstan and Uzbekistan possess significant natural resource reserves, including rare earth elements and strategic minerals that are essential for electromobility, battery technology, and the renewable energy sector. For the European Union, diversifying supply chains is a strategic interest, and Hungary can act as both an intermediary and an industrial partner in this process.
The energy potential of the Caspian region is also decisive for European energy security. Energy cooperation is increasingly complemented by green energy development, hydrogen projects, and grid modernization.
The populations of Central Asian countries are young, rapidly urbanizing, and digitally open. Uzbekistan and Kazakhstan in particular place strong emphasis on developing the IT sector, fintech, and e-government. This dynamism can be further strengthened through European technological partnerships.
The Middle Corridor trade route between China and Europe runs through the Turkic region. Innovation in this context is not only technological but also logistical and infrastructural: significant opportunities for cooperation are emerging in digital customs systems, smart logistics, and railway development.
Hungary’s observer status in the Organization of Turkic States creates a distinctive position: the country is simultaneously an EU member state and an active partner toward the Turkic region. This enables Hungarian innovation and industrial actors to serve as a bridge between EU programmes and Central Asian development initiatives.
The Hungarian–Turkish–Turkic innovation axis is therefore not an alternative to EU cooperation but rather its complement and expansion. A multidirectional network is taking shape in which the EU provides financing and regulatory frameworks, Türkiye’s industrial and technological dynamism plays a driving role, the Turkic states offer growth opportunities through their resources, demographics, and market potential, and Hungary can become a node of connection and coordination.
Innovation, therefore, is not merely a laboratory issue but also a geopolitical and economic-strategic instrument. EU-Hungarian-Turkish-Turkic cooperation can contribute to building a strong, diversified, and competitive system of technological partnerships toward the east that simultaneously serves sovereignty, growth, and long-term stability.
The experts discuss on 25 February
These topics will be discussed on 25 February in Brussels at the event titled Unlocking Europe’s Innovation Potential to be held at the Union of Chambers and Commodity Exchanges of Türkiye Brussels Representative Office. Organised by the Hungarian Development Promotion Office and the Turkish Ministry of Foreign Affairs, the event aims to explore the importance of closing the innovation gap within and beyond EU’s border and in the broader research and innovation landscape, highlighting the implications for Europe’s competitiveness in an increasingly complex geopolitical environment.
Discussions will explore how emerging innovation ecosystems can be more effectively connected to European priorities, how collaborative research frameworks can be strengthened, and how cross-regional partnerships can support sustainable growth. Particular attention will be given to the role of innovation in bridging economic disparities and reinforcing Europe’s strategic positioning in a rapidly changing global landscape.
By bringing together policymakers, industry leaders, and international partners, the conference aims to identify practical pathways for deepening cooperation and to outline how Hungarian–Turkish partnership can serve as a catalyst for a broader, more interconnected innovation space linking Europe with its eastern neighbourhood.
Participation interest may be expressed by sending a message to elina.heredi@mfoi.org.
Original article on Euractiv website: Why cohesion policy matters more than ever for European competitiveness | Euractiv
