Horizon’s indirect cost formula may worsen research inequalities

03 Jun 2025 | News

Reforming indirect cost calculations could be a lifeline for Widening countries and others with weaker research systems

Photo credits: Christian Lue / Unsplash

For many Widening countries and others with relatively weak national research systems, indirect costs from Horizon Europe projects are an important source of funding. 

Typically, they cover electricity, heating, rent and office supplies, but they can also be used for other expenses, such as the costs of drafting research proposals or paying membership fees for research associations.

“For us, indirect costs are extremely important,” said Anastas Mishev, professor of computer science and engineering at North Macedonia's Saints Cyril and Methodius University. “We mostly use these to cover things that should be covered by the state, [as] we don’t have a national funding agency.”

But in Horizon Europe, indirect costs are reimbursed at a flat rate of 25% of a project’s direct costs, which are mostly salaries. This means countries with lower salary levels, like…