The Commission has presented an amended proposal for a Regulation of the European Parliament and of the Council establishing the Framework Programme for Research and Innovation ‘Horizon Europe’ for the period 2021-2027 to support the recovery from the COVID-19 pandemic.
BACKGROUND: in order to contain the ‘COVID-19’ outbreak, Member States and third countries have adopted an unprecedented set of measures. These measures have significantly disrupted economic activities.
A sharp contraction of growth in the Union is now forecast for 2020 and is likely to continue into 2021. Recovery risks being very uneven in the different Member States, increasing the divergence between national economies. The different fiscal ability of Member States to provide financial support where it is needed most for recovery and the divergence of national measures endangers the single market.
This exceptional situation calls for a coherent and unified approach at the level of the Union to prevent further deterioration of the economy and to boost a balanced recovery of the economic activity, ensuring continuity and increase in investments for the green and digital transition.
A comprehensive set of measures for economic recovery are needed, requiring substantial amounts of public and private investment to energise the economy, create high-quality jobs and invest in repairing the immediate damage brought by the COVID-19 pandemic.
Targeted changes to the Framework Programme for Research and Innovation and its implementing Specific Programme Horizon Europe, – the Neighbourhood, Development and International Cooperation Instrument (NDICI) – the European Agricultural Fund for Rural Development (EAFRD) interventions under the CAP strategic plans are proposed by the Commission as part of the revised proposal for the Multiannual Financial Framework (MFF) for the period 2021-2027, which includes the EU Recovery Instrument.
This new instrument shall make it possible to finance these programmes for a limited period above the ceilings for commitment and payment appropriations set by the MFF, as external assigned revenue.
CONTENT: the main amendments to the Regulation establishing the framework programme for research and innovation ‘Horizon Europe’ are intended to:
- enable the implementation of the measures laid down in the proposal for a Regulation establishing an EU Recovery Instrument through the mechanisms for implementing the framework programme for research and innovation;
- enable financing from the EU Recovery Instrument as external assigned revenues in accordance with Article 21(5) of the Financial Regulation.
The EU Instrument for Recovery shall reinforce the support, via Horizon Europe, to health and climate related research and innovation activities. This will contribute to strengthened preparedness to effectively and rapidly respond to emergencies and investment in science-driven solutions as well as ensuring consistency with the European Green Deal goals.
Budgetary implications
The Commission proposes to make a total of EUR 14 647 million available for the research and innovation framework programme ‘Horizon Europe’. The additional funding shall be made available through the European Instrument for Recovery on the basis of the empowerment provided for in the new Own Resources Decision.
As a general rule, the financial support and the relevant actions carried out by the Commission should be frontloaded by the end of 2024 and, as regards the non-repayable financial support, for at least 60 % of the total, be undertaken by the end of 2022.
The remaining years after 2024 until the end of the MFF should therefore be used by the Commission to foster the implementation of the relevant actions on the ground and to achieve the expected recovery in the relevant economic and social sectors and promoting resilience and convergence.