The Cypriot Presidency of the Council of the EU has published a proposal regarding member states’ position on the EU’s next long-term budget, including the next Horizon Europe and Erasmus+ programmes.

The figures included in this proposal, or ‘negotiating box’, are well below what is needed to meet Europe’s ambitions in research, innovation, education and skills. This proposal notably mirrors a broader context of increasing budgetary pressure on the higher education and R&I sector in several European countries.

In light of this proposal, and ahead of the meeting of heads of state and government on 18-19 June, the European University Association reiterates its call for a budget of €200 billion for Horizon Europe and €60 billion for Erasmus+. This is the level of investment needed to support Europe’s competitiveness, scientific excellence, skills and innovation capacity.

What does the proposal include?

For the next Horizon Europe programme, or the tenth EU R&I framework programme (FP10), the Cypriot Presidency proposes a budget of €167 billion under the next multiannual financial framework (2028-2034). This is below both the European Commission’s proposal of €175 billion and the European Parliament’s position calling for a budget of €200 billion.

In the case of Erasmus+, the negotiating box foresees €39.1 billion over seven years, below both the Commission’s proposal of €40.8 billion and the Parliament’s proposed budget of approximately €48 billion.

What would these budget reductions mean for European R&I and higher education?

For Horizon Europe, the proposed reduction is significant in a context where Europe is placing increasing expectations on research and innovation to strengthen competitiveness, resilience and technological capacity. It should also be recalled that, due to inflation and significantly higher research costs across Europe in recent years, even the €175 billion budget initially proposed by the Commission would not have translated into a proportional increase in research activity in practice.

A lower FP10 budget would inevitably affect the programme’s capacity to support highly competitive and successful instruments such as collaborative research grants, the European Research Council, Marie Skłodowska-Curie Actions and early-stage innovation supports, all of which are central to Europe’s long-term scientific and technological leadership.

The impactful, flagship Erasmus+ programme would also be diminished if this proposal comes to fruition.

Indeed, Erasmus+ funding would fall behind present levels under the 2021-2027 programme. This would result in less funding for student and staff mobility and cooperation between higher education institutions, and some actions may be discontinued.

This would significantly impact the European Education Area, notably in terms of mobility numbers. However, it would also hinder wider EU goals to boost economic competitiveness, which is also dependent on ambitious skills, education and training initiatives.

What are the next steps?

Following the publication of the negotiating box, member states will hold a first discussion on 18-19 June in Brussels, with the aim of reaching an agreement in the coming months.

Negotiations are expected to be difficult, as several member states have already signalled their intention to reduce the overall size of the 2028–2034 MFF compared to the Commission’s proposal. This could result in further reductions to the initially proposed budgets for Horizon Europe and Erasmus+.

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