Here’s how the Council presidency’s proposed cuts to the next Horizon Europe budget play out taking inflation into account
Photo credits: weyo / BigStock
Last week, the Cypriot presidency of the EU Council revealed its negotiating figures for bloc’s next long-term budget. These include a cut to the Horizon Europe allocation, from €175 billion in the European Commission proposal to €167.9 billion.
The Council presidency’s number will form the basis for discussions when EU leaders meet on June 18-19]. It may increase or decrease, depending on how the negotiations go.
But these figures refer to current prices, the cash amounts that will be spent. They look impressive in public announcements, but they can be deceptive, since they include projected inflation over the seven-year cycle.
When negotiating, policymakers use figures adjusted to 2025 prices, which reflect the purchasing power of the money. This allows them to compare current and future budgets more directly, setting aside the effect of…
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