The European Union is preparing a significant move to support its technology industry in a bid to compete with global powerhouses like the United States and China. According to Reuters, the European Commission has unveiled plans for the creation of a public-private fund worth at least €10 billion, aimed at helping tech companies scale up and compete more effectively on the international market.
The newly introduced strategy, titled “Choose Europe to Start and Scale”, was presented on Wednesday and aims to address the EU’s shortage of unicorns—startups valued at over $1 billion. As part of this initiative, the Commission plans to launch a “European Scale-Up Fund” in 2026, which will invest directly in high-potential companies. The fund will be managed by a private investor and is expected to play a key role in growing Europe’s tech startup ecosystem.
“We don’t want this to be just a drop in the ocean. We want it to make a tangible difference,” said a Commission official, underlining the ambition to have a measurable impact.
Additional measures under the strategy include simplification of regulatory frameworks for high-tech startups, reduced administrative burdens, increased access to public procurement, and new opportunities for non-EU founders to operate within the European market. The EU also aims to mobilize private capital through the Capital Markets Union, including the development of private pension schemes across the region.
The initiative reflects growing concern in Brussels over the EU’s lagging position in tech innovation and scale-up capacity, especially compared to Silicon Valley and China’s tech giants.
