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12/29/12

European R and D: A long, cold year ahead for EU R and D funding - by Richard L. Hudson

One of the quaint rituals of this company town – where the ‘company’ is the European Commission – is making your way around the holiday party circuit. It is at these parties, most hosted by companies and trade associations, that the real business of government happens: Exchanging gossip about who’s in, who’s out, and what the year ahead promises.

Alas, the gossip isn’t cheery for a major issue we have been following, the Commission’s €80 billion, Horizon 2020 proposal to expand its RandD budget for the rest of the decade. For the past year, the Commission, Council and Parliament have been tied together in a slow-motion, three-legged dance to decide the fate of this plan. If the party gossip is right, the dance is a long way from over – and that’s bad news for anyone counting on some EU money to keep their labs running from 2014.

To put it in perspective: EU funding in research and innovation comprises 5 to 7 per cent (depending on who’s counting) of total European government support for this activity. It will amount to roughly 8 per cent of the total EU budget through the rest of this decade – a distant third in programmatic spending, after the rich pork-barrel budgets of agriculture and regional development. This is, in short, a relatively modest line item. Yet you’d never guess that from all the noise here.

The biggest noise at present is over the total EU budget, with budget hawks in Britain, Germany, the Netherlands and a few other countries demanding an austerity-era cut. But there’s more than a little hypocrisy involved. The UK, for instance, is one of the three biggest recipients of EU RandD funding (with Germany and France.) So – surprise – it wants the EU cuts to come in farm, regional and administrative spending, not in R and D. Equally no surprise: Those countries in eastern and southern Europe that get relatively little RandD money put it lower down on their budget priorities, and dig in for support of regional development funds. This top-line budget fight is, according to the party chatter, going to take until at least February – and more likely May – to be One of the quaint rituals of this company town – where the ‘company’ is the European Commission – is making your way around the holiday party circuit. It is at these parties, most hosted by companies and trade associations, that the real business of government happens: Exchanging gossip about who’s in, who’s out, and what the year ahead promises.

Alas, the gossip isn’t cheery for a major issue we have been following, the Commission’s €80 billion, Horizon 2020 proposal to expand its RandD budget for the rest of the decade. For the past year, the Commission, Council and Parliament have been tied together in a slow-motion, three-legged dance to decide the fate of this plan. If the party gossip is right, the dance is a long way from over – and that’s bad news for anyone counting on some EU money to keep their labs running from 2014.

To put it in perspective: EU funding in research and innovation comprises 5 to 7 per cent (depending on who’s counting) of total European government support for this activity. It will amount to roughly 8 per cent of the total EU budget through the rest of this decade – a distant third in programmatic spending, after the rich pork-barrel budgets of agriculture and regional development. This is, in short, a relatively modest line item. Yet you’d never guess that from all the noise here.

The biggest noise at present is over the total EU budget, with budget hawks in Britain, Germany, the Netherlands and a few other countries demanding an austerity-era cut. But there’s more than a little hypocrisy involved. The UK, for instance, is one of the three biggest recipients of EU RandD funding (with Germany and France.) So – surprise – it wants the EU cuts to come in farm, regional and administrative spending, not in R and D. Equally no surprise: Those countries in eastern and southern Europe that get relatively little RandD money put it lower down on their budget priorities, and dig in for support of regional development funds. This top-line budget fight is, according to the party chatter, going to take until at least February – and more likely May – to be 
settled.
 
Read more: The party chatter: A long, cold year ahead for EU RandD  funding - Science|Business

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