Important Projects of Common European Interest

September 2025

In the proposed EU budget for 2028–2034, the term 'Important Projects of Common European Interest' (IPCEIs) appears at various points. This is a good reason to take a closer look at these projects.

IPCEIs aim to strengthen Europe’s technological capabilities, accelerate the green and digital transitions, and reduce dependence on global competitors by facilitating cross-border collaboration on strategic projects. Although they are often only known to a few experts in the field, they could actually be of wider interest and be further strengthened in future.

At its core, an IPCEI is a policy instrument designed to permit the exceptional. Under the EU’s state aid rules, member states are usually prohibited from subsidising specific companies. However, IPCEIs are an exception, allowing governments to support cross-border industrial projects that address market failures and serve strategic European interests in sectors such as batteries, hydrogen, semiconductors and cloud services.

However, this is not a blank cheque. Projects labelled as IPCEIs must involve at least four member states (fewer only if the project’s nature justifies it), deliver benefits beyond national borders and combine public and private investments. They must push the boundaries, focusing on research, development, or the initial industrial deployment where market forces alone are insufficient.

In short, an IPCEI is a collaborative leap into strategic risk, designed to build EU capacity where it might otherwise not emerge.

The rationale behind IPCEIs

The idea of IPCEIs arose from the realisation that, although the EU has robust regulations, it is lagging behind in industrial innovation and technological sovereignty. In the face of substantial state-backed investment in the US and China, the EU required a means of responding without disregarding its own rules on competition and state aid.