View from Brussels: R&D’s EU penny-pinching problem
Budget season has begun in Brussels as the European Commission this week proposed its draft plan for 2024’s finances. As things stand, the bloc’s coffers will be provided with €189.3bn to fund its various policies and programmes. Where research and development is concerned, the Commission has allocated €13.6bn for R&D, with €12.8bn of that due to fuel the flagship Horizon Europe scheme. It marks a €400m increase on 2023 but a couple of caveats undermine that rise in fortunes. Firstly, inflation means that any real-world increase is severely reduced with some in the European Parliament, which will propose its own financing plan, saying it is actually a cut masquerading as an increase. Secondly, interest rate hikes mean that the EU will have to allocate more cash for repayments on its …