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Europe Daily Bulletin No. 11157
EUROPEAN PARLIAMENT PLENARY / (ae) research

EP and Commission reject Horizon 2020 budget for 2015

Brussels, 17/09/2014 (Agence Europe) - The Council proposal to reduce the 2015 budget for the research and innovation framework programme, Horizon 2020, by more than €1 billion, equivalent to an 11% drop from the initially planned budget, is unacceptable to the European Commission and the European Parliament. Their joint opposition to what they consider to be a disproportionate and dangerous cut was clearly stated on Tuesday 16 September.

The position adopted by the Council at the start of September on the EU budget for 2015 leaves no doubt: Horizon 2020 looks likely to be the programme most adversely affected by the economy measures. The member states are proposing cuts of €190 million in funding available for new contracts and €981 million to the payments budget for 2015.

Italian Secretary of State at the Economy and Finance Ministry Enrico Zanetti argued during the plenary session debate that it was a “balanced and fair” proposal and that the Horizon 2020 budget would still be 33% higher than in 2014. Neither the Commission nor the Parliament seemed persuaded by this argument, however. Horizon 2020, despite its first work programme having been adopted only in December 2013, is already facing a structural payments deficit, as Maire Geoghegan-Quinn, Commissioner for Research and Innovation, noted during the debate, making this reduction all the less defensible.

The Commission says that the current difficulties already affect some 600 collaborative projects, involving 7,000 participants, including 1,400 SMEs. “Drastic measures” have been put in place, such as reducing funding for pre-payment and delays in calls for offers, in order to address the structural deficit. For 2014, €230 million more is needed and this sum absolutely must be found before the end of the year, said Geoghegan-Quinn. She pointed out that, in 2014 and 2015, 60% of the payment appropriations will still relate to the previous framework programme (2007-2013). With the Council's current proposal, the Commission will not be able to keep up, as it is already walking a tightrope, she warned. She went on to suggest that, if the proposed 2015 reduction became a trend, Horizon 2020 would find itself with a 40% commitment appropriations deficit by 2020.

The reaction of MEPs was practically unanimous. Funding for this framework programme had to be saved as it is a long-term investment, and the cuts proposed by the Council are not acceptable, stated Krisjanis Karins (EPP, Latvia). The Social Democrats were of the same view. The Commission will not be able to meet its obligations, feared some, like Dan Nica (S&D, Romania). While Ashley Fox (UK), speaking for the ECR Group, railed against the Commission's poor budget management, he nonetheless gave the Commission his support, deeming the Council proposal to be disproportionate compared with cuts proposed elsewhere, to the common agricultural policy, for example, or cohesion funding. The Council is “disappointing” and the reductions “unacceptable”, echoed Nils Torvalds (ALDE, Finland) and Pablo Echenique (GUE/NGL, Spain). (JK)

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