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When it comes to
the period of 2014-2020, the following budget was prepared. In total, it makes nearly
80 billion1
euro being distributed into five categories to which three pillars and two
specific objectives belong. Before getting to particular categories, we will
explain two important terms in which the total budget can be expressed. On one
hand, there are current prices, on the other constant prices. Current prices
refer to the amount that will be effectively requested to the budgetary
authority each year (European Commission, 2013, s. 1). They include 2% inflation
effect set in the Multiannual Financial Framework (MFF). Calls, legal bases and
annual budgets are always expressed in current values, as this equals to the
money finally distributed to beneficiaries. Constant prices do not take an
inflation effect into consideration and and are fixed at 2011 values. (European
Commission, 2013, s. 1).

 

The negotiations about
the H2020 budget proceeded in the following way:

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„The  initial  proposal  of 
the  Commission  in  November  2011  set  the 
budget  for 
Horizon 2020 at €87.7 billion. The final decision in December 2013, after consideration 
under  the  ordinary  legislative  procedure, 
reduced  that  budget  to  €77 billion.  In 
June 2015, the adoption of the European Fund for Strategic Investments (EFSI) further 
lowered the amount to €74.8 billion. Between 4 and 5% of the programme’s budget 
will be used for its administrative management, leaving an operational budget for the 
programme of slightly under €70 billion. (Reillon,
2015, s. 6).”

 

Horizon 2020 is
divided into three pillars and two specific objectives in accordance to its
main priorities. The most money amounting to 38,53% of the total budget, which
makes 29,679 billion euro (in current prices), will be distributed to the third
pillar: Societal Challenges. The second, most supported pillar is
the first one, called Excellent Science. It
will be supported with 31,73% of the final budget, making up 24,441 billion
euro (in current prices). 22,09% will be given to the second pillar, called Industrial Leadership, which amounts in
17,016 billion euro (in current
prices). The more supported objective out of the two is Spreading excellence and widening participation, being granted
1,06% of the total budget. This equals to 816 million euro (in current prices). Lastly, 0,60% of the total
budget goes to Science with and for society,
amounting to 462 million euro (in current prices). The rest of 4,614 billion
euro will be divided between the European Institute of Innovation and
Technology (3,52%) and the Non-nuclear direct actions of the JRC (2,47%). The
total EU Regulation makes 77,028 billion euro the total EURATOM Regulation
2014-2020 1,603 billion euro.2

 

To conclude, we would like to present a table3
which demonstrates a development of European research
and innovation policies since 1984:

 

 

 

Framework programme

Period

Budget (billion €)

Legislative
procedure

 

 

 

 

FP1

1984-1987

3.3

Consultation procedure

 

 

 

 

FP2

1987-1991

5.4

Consultation procedure

 

 

 

 

FP3

1990-1994

6.6

Consultation procedure

 

 

 

 

FP4

1994-1998

13.2

Co-decision
procedure

 

 

 

 

FP5

1998-2002

14.9

Co-decision
procedure

 

 

 

 

FP6

2002-2006

19.3

Co-decision
procedure

 

 

 

 

FP7

2007-2013

50.5

Co-decision
procedure

 

 

 

 

Horizon 2020 (FP8)

2014-2020

74.8

Ordinary
Legislative Procedure

 

 

 

 

 

The difference between the Horizon 2020 programme and the previous
framework programmes is not only in its name, but also in the fact that it
includes previously separate programmes funding research and innovation (Competitiveness and Innovation Framework Programme-CIP and European
Institute of Innovation and Technology-EIT). This was made in order to reduce
the complexity of the EU programmes and to simplify the administrative processes
for participators. Finally, this table shows, that the research and innovation
policies became increasingly important since 1984.

1 The exact amount varies from document to document, depending also
on the year of issue and the current price–constant price difference explained
above. Here (European Commission, 2018) the total sum of 80
billion is stated. In (Reillon, 2015, p.4) the total amount of  74,8 billion is listed. Lastly, (European Commission,
2013, s. 4)
states the total budget is 78,6 billion euro in current prices.

2 For comparison see (European
Commission, 2013, s. 2-3) and 
(European Commission, 2018) under the section „Horizon 2020 structure and budget”.

3 see (Reillon, 2015, s. 4).

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