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News

EIT Manufacturing files for liquidation
EU-funded innovation body, EIT Manufacturing, headquartered in Paris-Saclay, filed for liquidation on March 25, 2026, following a massive fraud investigation. The collapse stems from ‘serious irregularities’ in project selection and financial reporting identified by the European Anti-Fraud Office (OLAF) between 2020 and 2022.

The fallout from this is expected to be significant - with over 200 beneficiaries, including startups and universities, being left with €15 million in unpaid claims. Many startups are facing bankruptcy after spending their own capital on the promise of EU grants that were frozen by the EIT (European Institute of Innovation and Technology) as far back as June 2024. While EIT leadership is exploring a ‘reformed’ legal entity to continue operations, the crisis has triggered a broader debate over the stability and accountability of the KIC (Knowledge and Innovation Community) model within the EU’s innovation system.

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