New Horizon: €79 billion for R&D as Parliament approves EU budget for 2014-2020

20 Nov 2013 | News
The European Parliament agreed the EU’s budget for 2014-2020, as well as the final seal on the Horizon 2020 legislative deal

The overall EU budget for 2014 – 2020 has been voted through, securing a budget of €79 billion for Horizon 2020 and meaning the first calls can be launched as promised on December 11.

"The vote today by the European Parliament was a vote for a modern, future-oriented budget that puts more emphasis than ever on research and innovation,” said EU Commissioner for Research, Innovation and Science, Máire Geoghegan-Quinn.

The Commission says this is an increase of nearly 30 per cent over the current framework programme, FP7, but such figures disguise the inclusion in Horizon 2020’s budget of the EU’s contribution to the innovation related activities of the Competitiveness and Innovation Framework Programme (CIP) and to the European Institute of Innovation and Technology (EIT).

The total budget for Horizon 2020 is €70.2 billion in constant (2011) prices, and €79 billion including inflation. The original Commission proposal for Horizon 2020 was €80 billion in constant prices, while many MEPs wanted €100 billion. “The amounts available […] are far from perfect,” said Parliament President Martin Schulz. “The European Parliament would have preferred a much more ambitious [budget] targeted more towards the key challenges facing the EU today.”

The vote follows a deal reached by the Parliament and national governments on 12 November for the 2014 budget, which foresaw a budget of €9 billion for Horizon 2020 in the first year. This would be a decrease on the 2013 figure under FP7 of €9.9 billion. However a new flexibility measure in the overall budget could see up to €400 million for research, Erasmus and SMEs brought forward in 2014-2015. This would then be offset against the budget in later years.

Two days after the budget deal, MEPs voted to approve the overall Horizon 2020 legislative package, bringing all EU-level funding for research and innovation under one roof for the first time.


Other funding programmes that will compliment Horizon 2020 include the new COSME programme to support small and medium-sized enterprises (SMEs). The programme will receive €2.3 billion to facilitate SME access to markets inside and outside the EU and offer easier access to finance through loan guarantees and risk-capital.

The Connecting Europe Facility (CEF) will receive €1.1 billion for digital service infrastructures and broadband.

The best deal available

Interest groups in Brussels would all have preferred a much higher investment in R&D, but welcome the end to negotiations, “We are happy with the Parliament’s consent to the budget,” said Stefan Kuster, Head of Policy Affairs at Science Europe.

Lesley Wilson, Secretary General of the European University Association agrees, acknowledging that in light of other budget cuts and Europe's economic struggles, R&D did not fare so badly. "Overall more than €80 billion have been allocated in the MFF to the long-term programmes for research and innovation and education,” she said.

MEPs previously voted to reject the long-term budget in March, but convincing austerity-driven national government to up their spending was always going to be a difficult task.

MEPs were, however, successful in securing greater flexibility in the budget between years and budgetary lines. This will see the carrying-over of under-utilised funds from one year to the next under certain conditions, allowing for EU money to be spent when it is needed most.

The Parliament was also successful in introducing a revision clause, which will give the next Parliament and Commission, due to be voted in in 2014, a say on the budget. “Otherwise the new European Parliament and Commission would have been forced to stick with it until the end of their terms,” said Schulz.

Finally, on the revenue side or “own resources”, the European Parliament has insisted that work is stepped up and a High Level Group will report back by the end of 2014 with new proposals which ultimately could lead to a reduction in Member State contributions to the EU Budget.

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