The European Commission has published a proposal for the next long-term EU budget, the ‘Multiannual Financial Framework’ (MFF 2028–2034), which comprises the tenth Framework Programme for Research and Innovation (FP10). FP10 will, like its predecessor, be named ‘Horizon Europe’ and will continue to be a key instrument for delivering the Commission’s policy ambitions in the area of research and innovation (R&I).
The proposal comes at a crucial time for Europe, as European competitiveness and the Union’s strategic autonomy have become central to the bloc’s policy agenda. There is recognition that European R&I must serve as an engine for growth and competitiveness; although the document confirms that Horizon Europe will remain a self-standing programme (which the R&I community strongly lobbied for in policy position statements), it will strongly align with the new European Competitiveness Fund (ECF) and deliver on the Commissions’ mission to drive innovation through to commercialisation.
The proposed MFF is subject to the EU legislative process, with the final shape and budget of FP10 to be agreed by the European Parliament and Council, likely by end 2027.
Budget and Funding
The European Commission has proposed nearly doubling the Horizon Europe budget to €175 billion under the next MFF.
The proposal provides incentives to Member States, the non-profit sector and the private sector to increase investments and join efforts to reach the target of investing 3% of the Union’s GDP on research and development.
Proposed Structure
The European Commission’s proposal details a new four-pillar structure:
- Excellent Science – supporting the European Research Council (ERC) and Marie Sklodowska Curie Actions (MSCA)
- Competitiveness and Society – supporting four main ‘Competitive’ research themes:
- Clean transition and industrial decarbonisation
- Health and bioeconomy, and biotechnology policy
- Digital leadership policy
- Resilience, defence industry and space policy
And including three main ‘Society’ areas:
- Global societal challenges
- New European Bauhaus Facility
- EU Missions
- Innovation – supporting the European Innovation Council (EIC) and Innovation Ecosystems
- European Research Area – supporting ERA Policy, Research and Innovation Infrastructures and Widening Participation and Spreading Excellence
In the first pillar, the ERC will be expanded with a continued focus on funding excellent researchers and their teams. The MSCA will continue to support research training and career development.
The second pillar will support collaborative research and will be tightly connected to the ECF through mirroring the priority theme areas termed ‘policy windows’, ensuring coherent support throughout the investment journey. In addition, a policy window will address bottom-up research in the areas of global societal challenges such as migration, democracy and disinformation. European Partnerships will remain a key instrument in FP10; they will be radically simplified and streamlined in their operations and work synergistically with the ECF.
Under the third pillar, the EIC will continue to support innovative start-ups and SMEs, with a strong focus on disruptive innovation and entrepreneurship. It will expand its use of ‘ARPA-style’ approaches, funding high-risk projects in stages based on expert assessments. Stronger links will be built with ERC and collaborative research projects to speed up the commercialisation and scaling of breakthrough technologies. The EIC will also offer new opportunities to support high-tech dual-use and defence start-ups, especially those critical to EU strategic interests.
The newly created fourth pillar will support the development of a more integrated European Research Area. Research infrastructures, previously part of Pillar 1, will be funded separately under this new pillar, with the EU contributing up to 20% towards the construction of key facilities. The Widening scheme will continue to support less R&D-intensive Member States, with a new category introduced for “Transition countries” whose performance has improved. Both groups will receive targeted support for networking, valorisation, and countering brain drain, with additional capacity-building measures for Widening countries.
Simplification and accessibility
The proposal promises there will be simplified funding rules, faster grant processes, and reduced administrative burdens. Access to EU funding will be improved through faster, user-centric, and harmonised procedures to broaden participation and accelerate results.
Building on the experience gained with lump sum pilots under Horizon 2020 and their broader application in Horizon Europe, lump sum funding will become the default form of Union contribution, unless otherwise provided. Other simplified forms of cost, including personnel unit costs, will be used.
Summary
The FP10 proposal aims to maintain the EU’s position as a global leader in research and innovation, while addressing key societal and environmental challenges and advancing policy priorities such as decarbonization, digitalisation, security, resilience, and social cohesion.
Its close alignment with the ECF is intended to ensure that breakthrough discoveries and innovations are supported through the entire research pipeline, from fundamental science to high TRL applications.
The emphasis on world-class, bottom-up science, through the continuation and strengthening of excellence-based instruments such as the ERC and MSCA, is likely to be welcomed by the UK sector. These elements remain essential to fostering frontier research and attracting top talent.
Equally important is the inclusion of explicit provisions for third-country association in the Commission’s proposal, which reflects the value of international collaboration and the significant contribution it has made to the strength of Horizon programmes.
Maintaining a framework that is open, excellence-driven, and globally relevant will be crucial for ensuring that the next programme supports the broadest possible research base, including strong engagement from international partners.
Next steps
The proposed MFF will undergo the standard EU legislative process, during which both the European Parliament and the Council will provide their input. As a result, neither the overall budget figures nor the allocation for Horizon Europe are final, as they will be subject to negotiations between the Parliament and member states. A final agreement is expected by the end of 2027.
The UK is digesting the detail and will be particularly looking at how the proposal aligns with the principles of excellence, openness and good value for the UK research community and taxpayer, which were set out in the UK Position Paper on the EU’s Research and Innovation Framework Programme last year.