The European Parliament is gearing up for challenging negotiations with EU member states regarding the European Union's budget for 2024, which includes a proposed €12.8 billion allocation for the Horizon Europe research program.
However, member states are pushing for a €166 million reduction in the Horizon Europe budget to ensure full expenditure. They argue that approximately 5% of funds allocated to research in framework programs go unspent every year. This typically occurs because projects may experience delays or do not progress as swiftly as initially projected. Unspent funds do not automatically return to the budget.
The European Parliament, having voted in favor of its stance on Wednesday, aims to reverse the proposed €166 million cut and provide an additional €140 million to support fundamental research, health initiatives, and climate research within Horizon Europe next year.
Both the Parliament and member states must reach a final agreement by November 13 to approve the budget for the upcoming year.
During the closing debate in Parliament, rapporteur Siegfried Mureşan emphasized the significance of prioritizing research and innovation: "We must invest more in Horizon Europe, in research and innovation. Here, we have tangible benefits for the people of Europe, including medical research. We have tangible benefits for our businesses, ensuring their innovation, strength, and competitiveness."
MEP Christian Ehler, a prominent advocate for research, criticized the proposed budget cut, describing it as "irrational" and suggesting that "the Council has lost its rationality."
"The Council is cutting €20 million from the European Research Council, which has produced Nobel Prize winners, and they are doing so publicly," Ehler exclaimed. "We must reclaim our budget," he urged the member states.
Johannes Hahn, the EU budget commissioner, welcomed the Parliament's move to reverse the cuts, noting that these cuts lacked sufficient justification and failed to align with the Council's priorities.
The research community also supports the Parliament's stance, as the cuts risk undermining the EU's ambitious green and digital objectives.
Escalating Costs
These budget negotiations are an annual tradition: member states seek to reduce the budget, while the Parliament strives to increase it. However, this year's negotiations may be particularly challenging as member states are growing increasingly concerned about rising expenses related to repaying EU pandemic recovery loans, inflation, and the various crises the EU faces, from Russia's war in Ukraine to the escalating conflict in the Middle East.
Esperanza Samblás, speaking on behalf of the EU Council's Spanish presidency, explained, "The Council has aimed to adhere to its budget to ensure that the European Union acts responsibly and is capable of addressing unforeseen emergencies."
Adding to the complexity, the European Parliament has linked next year's budget to the proposed review of the seven-year EU budget, which member states want to negotiate separately. The mid-term review, introduced in June, calls on member states to allocate more funds to EU budget priorities, including support for Ukraine and investments to enhance the EU's technological autonomy.
However, it remains uncertain whether member states will commit to the mid-term review proposal. This issue is slated for discussion at the European Council meeting of EU heads of state next week, which may present a significant hurdle since the Parliament's call for increased funding surpasses the available resources, assuming that member states will agree to provide additional funds.
Commissioner Hahn cautiously welcomed the Parliament's proposed budget increases, highlighting that negotiators must await clear guidance from heads of state before proceeding with discussions.
Regarding the revision, Samblás again cautioned MEPs that the EU must act within its financial means: "The Council cannot accept an increase from the European Parliament based on an increased EU budget."
This year's negotiations are expected to be challenging, but history suggests that the final budget figure will likely remain close to the Commission's initial proposal. Last year, member states aimed to reduce the EU research budget by €663 million, while the Parliament sought a €311 million increase. The final outcome was a modest €10 million increment in the €12.3 billion budget.
The 21-day negotiation period begins next week, on October 24. The Parliament and the Council of member states will have 21 days to reach an agreement on the EU budget for the upcoming year.
