Luxembourg, 10/10/2012 (Agence Europe) - European research ministers arrived in Luxembourg on Wednesday 10 October 2012 prepared for a battle over eligibility rules for funding under the new EU programme for research and innovation, “Horizon 2020” (see EUROPE 10706). Public debate during the day revealed the extent of disagreement about reimbursement of indirect costs in the projects funded and the payment of researchers. As we went to press at 6.45pm, the ministers were still busy horsetrading, unable to reach agreement on a compromise so that partial guidelines could be published, as planned, on one of the main points of the futureHorizon 2020 scheme for 2014-2020.
Indirect costs. In order to simply the next framework programme as far as possible, the European Commission suggested setting a set rate for the reimbursement of indirect costs of 20% of direct costs. It felt this was easy and efficient for both beneficiaries of EU subsidies, who would no longer have to keep meticulous books (indirect costs are often difficult to determine - the wear and tear of infrastructure and tools, for example) and also for the Commission, which would no longer have to process receipts and other paperwork.
All the member states welcomed this general simplification, but did not all agree on the exact percentage (Article 24) and whether full reimbursement of all indirect costs should apply, as under the previous research programme. The stiffest resistance is over the second issue as set out in the European Commission's proposals and the Cypriot Presidency's most recent draft compromise. Germany, Belgium, the UK, Finland and Spain are the most determined countries wanting reimbursement of all indirect costs rather than just a portion of them.
In order to keep the countries calling for as much simplification as possible happy, along with the countries arguing for full reimbursement to ensure success, the Cypriot Presidency is now suggesting that 23% should be provided to cover indirect costs, which it suggested last week ahead of the ministers' meeting. In a last-ditch attempt at compromise, 25% was suggested. Most countries are willing to go along with 25%, apart from Germany, the United Kingdom and Austria, which want 23% together with an indirect real costs option (in other words full coverage of indirect costs).
Staff pay. The second area of division among the member states is the payment of researchers. Should reimbursement of staff costs differ according to the country? The answer is a resounding “no” from eleven member states, the most recent to join the EU, and for Croatia, which although not yet a member is covered by the research programme for 2014-2020 and is already attending Council meetings as an observer. Researchers are paid ten times more in some EU countries than others and therefore a flat-rate for staff pay is unacceptable, argue this first group of countries. France, Denmark, the Netherlands, the UK and Sweden argue that Horizon 2020 is not a cohesion fund and does not aim to deal with structural problems.
The Cypriot Presidency has unveiled a draft compromise adjusting Article 22a to introduce the option of a special bonus on top of the ordinary staff costs, a bonus of up to €5000 a year per researcher. A few countries back the idea, but 20 (a majority) expressed reservations that the amount is too low or that it is unnecessary.
A new compromise emerged that seems to satisfy the group of 12, basically for there to be no cap on the bonus and for it to be set in line with national legal systems. Hungary, Slovenia, Slovakia and Bulgaria, however, have asked for extra time to consider the impact of this, and Sweden and the UK have expressed reservations, arguing that there was too great a risk of corruption and the measure was too important to be decided upon without a detailed impact assessment covering the entire research programme.
The question of the total funding for Horizon 2020 will be discussed as part of the general EU budget negotiations for 2014-2020. The Commission has suggested €80 billion, €30 bn more than for the Seventh Framework Programme (FP7, 2007-2013). While many countries want the EU budget overall to be frozen or reduced against the backdrop of public spending cuts in the nation states and the gloomy economic prospects for the foreseeable future, the Commission's suggestion of a sharp increase seems to find favour among many governments. European sources say that the cost-benefit outcomes of research funded by the EU is encouraging countries to consider greater funding for Horizon 2020. (JK/transl.fl)