Financial Issues

This page summarises the available financial information about each partnership type.

Co-programmed Partnerships

The financial rules between Commission and partners are now fixed, and open calls are implemented through the Horizon Europe work programmes.

Principles

A Contractual Arrangement / Memoranda of Understandings was signed in which the objectives, key performance and impact indicators, and outputs to be delivered, as well as the related commitments for financial and/or in-kind contributions are agreed. Activities have to be agreed on an annual basis in the Annual Work Plan/Activity Plan to ensure that they are in the scope of the partnership. 

Commitments and Contributions

The European Union budget is implemented in the Horizon Europe Work Programme. With over €8 billion from Horizon Europe, the co-programmed partnerships will run from 2021 to 2030, allowing them to provide input into the last calls of Horizon Europe and wrap up their final activities afterwards.

The activities from participating states in co-programmed partnerships are implemented under the responsibility of each country. Participating states report on the implementation of activities with simplified reporting on the costs of implementation. The value of commitments and contributions are estimates.

Co-funded European Partnerships

The Horizon Europe grant agreement is based on a General Model Grant Agreement, including only some specific rules for Co-funded Partnerships.

Principles

In the Programme Co-fund grant agreement between the Commission and the consortium of beneficiaries all rules are fixed. Activities are described in the description of activities and further detailed per year in the Annual Work Plan/activity plan. The overall budget of the co-fund action and the Union contribution are defined in the grant agreement for the full duration of the partnership. Beneficiaries to the Grant Agreement carry out activities and report their costs and the Union contribution reimburses part of these costs. The reimbursement rate (usally 30%) is defined in the grant agreement and applies to all activities and partners. The consortium manages the Union contribution and decides (in their Consortium Agreement) on the allocation to activities and partners. Thus, the consortium decides internally on the allocation of Union funding - this is not defined by the Commission.

Financial contributions stemming from Cohesion Policy funds, EMFF and EAFRD might be considered as a contribution of the participating Member State.

Commitments and Contributions

Member States design a common programme to be implemented under their responsibility. This programme pools national funding/resources with co-funding from the European Union. The European Union contribution is based on the eligible costs reported based on the Horizon Europe Grant Agreement. The non-reimbursed eligible costs are the contributions from the participating states.

3 models might be used:

  • Research and Innovation activities addressed by calls for proposals
  • Research and Innovation activities directly implemented by the beneficiaries in the Grant Agreement
  • In exceptional cases: Hybrid approach, involving research funders and governmental (research) organisations as core partners of the partnership

Institutionalised Partnerships based on Article 185/7

The financial rules are not fixed now. The following is a summary of current discussion:

Principles

The activities in Institutionalised European Partnerships based on Article 185/7 are managed by dedicated implementation structure (Article 185) or Joint Undertakings (Article 187). The Activities are defined in the Decision of the European Parliament and Council (Article 185) or in the Council regulation (Article 187), and are further detailed per year in the Annual Work Plan. Implementation of activities and costs are reported to the European Commission. Rules for Participation of Horizon Europe apply by default, any (well justified) derogation has to be identified in the basic act.

Commitments and Contributions

Financial and/or in-kind contributions from partners other than the Union is compulsory and will at least be equal to 50% with the possibility to reach up to 75% of the aggregated European Partnership budgetary commitments.

The financial contribution will be centrally managed (except in duly justified cases) and the Horizon Europe rules for participation will apply by default.

Related Files

Draft Factsheet Financial Management for co-funded European Partnerships

Supporting document on the financial management with concrete examples for the calculation.

Last Change: 16/09/2020
Publisher: ERA-LEARN

Category: Manual

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