On November 21, the European Commission approved its 2014–20 budget, including €78.6 billion ($103.4 billion = €0.76 = $1) in funding for Horizon 2020, the EU’s primary research program. Horizon 2020 replaces the 7th Research Framework Programme and incorporates funding for the European Institute of Innovation and Technology and parts of the Competitiveness and Innovation Framework Programme. When initially announced in 2011, the Horizon 2020 budget was set at €79.2 billion ($104.2 billion) (see IBO 12/15/11). In constant 2011 prices, the latest budget totals €70.2 billion ($92.4 billion).

Horizon 2020, just as when it was originally announced, is organized around three pillars: Excellent Science, which will receive €24.4 billion ($32.1 billion) in funding in current prices; Industrial Leadership, which will receive €17.0 billion ($22.4 billion); Societal Challenges, which will receive €29.7 billion ($39.1 billion). The table on page 7 shows the percentage breakdown of each Horizon 2020 budget component, as detailed by the Council for the EU.

Horizon 2020 is designed to simplify program participation. One set of rules will apply to all program funding. In addition, standard funding rates will be used for projects and indirect costs. Funding can amount to as much as 100% of the eligible costs for R&D projects and up to 70% of costs for innovation projects. Nonprofits may also receive 100% of funding. Indirect costs will be funded at 25% of direct costs. The success rate for grant applications is estimated to be one out of five. European Research Council (ERC) grants will have a lower success rate. Funding is open to researchers outside the EU, with some rights restricted depending on the country.

On December 11, Horizon 2020 issued the first calls for research proposals for the 2014–15 Work Program, with a total of around €15 billion ($20 billion) available over two years, including €7.8 billion ($10.3 billion) for 2014. Total EU research funding is estimated to be €9.3 billion ($12.2 billion) for 2014. The budgets for Excellent Science, Industrial Leadership and Societal Challenges are around €3 billion ($4 billion), €1.8 billion ($2.4 billion) and €2.8 billion ($3.7 billion), respectively. Highlights include €600 million ($789 million) for Health, Demographic Change and Wellbeing calls; €600 million ($789 million) for Secure, Clean and Efficient Energy calls; and €500 million ($658 million) for Advanced Materials, Biotechnology and Production calls.

Comprised of different projects, 12 focus areas will represent 15% of all 2014 calls. Among the focus areas are Personalized Health and Care, with a budget of €549 million ($722 million); Sustainable Food Security, with a budget of €138 million ($182 million); and Competitive Low-Carbon Energy, with a €359 million ($472 million) budget.

In 2014, the ERC will award €1,662 million ($2,187 million), including €485 million ($638 million) for Starting Grants, €713 million ($938 million) for Consolidator Grants and €450 million ($592 million) for Advanced Grants.