As of 1 January 2013, EU funding for businesses, cities, municipalities, researchers and students will be more easily accessible under the new Financial Regulation, thanks to simplified procedures. The new Financial Regulation (following formal adoption on 25 October 2012 and publication in the Official Journal of the European Union, it enters into force on 27 December 2012) contains improvements for recipients of EU funding. According to the European Commission, smaller amounts will soon be easier to settle on a flat-rate basis, meaning that the same information will no longer have to be entered anew with every application. Online applications and many other innovations will also be introduced, which will reduce administrative work along the way. The period between the call for proposals and the conclusion of the grant agreement will be shortened, as will payment deadlines. From 2013, recipients of EU funding will no longer be required to open separate interest-bearing bank accounts. Where interest is generated, it will not have to be paid back into the EU budget and will not count as project income. This resolves a key concern raised by grant recipients, particularly representatives from the research community and NGOs. The options for financial corrections in the event of irregularities by recipients identified during audits have also been expanded: as a deterrent, the Commission will in future publish sanction decisions for the misuse of EU funds.
Frequently asked questions
Frequently asked questions
When does the new EU Financial Regulation enter into force?
The new EU Financial Regulation was formally adopted on 25 October 2012 and enters into force on 27 December 2012, following its publication in the Official Journal of the EU. The practical improvements for recipients of EU funds will apply from 1 January 2013.
What simplifications apply from 2013 onwards when applying for EU funding?
Smaller amounts can now be settled on a lump-sum basis, so the same information no longer has to be entered with every application. In addition, online applications are being introduced, administrative work is reduced, and the time between the call for proposals, conclusion of the grant agreement, and payment is shortened.
Do recipients of EU funds still have to maintain interest-bearing bank accounts?
No. Starting in 2013, the obligation to open dedicated interest-bearing bank accounts no longer applies. Interest earned no longer has to be returned to the EU budget and does not count as project income. This implements a long-standing demand, particularly from the research sector and NGOs.
Who benefits from the simplified EU funding procedures starting in 2013?
Companies, cities and municipalities, researchers, and students will benefit. They gain easier access to EU funds through less bureaucracy, shorter processing times, and simplified accounting procedures.
What are the consequences of misuse of EU funds?
The options for financial corrections in cases of identified irregularities have been expanded. As a deterrent, the European Commission will in future publicly disclose decisions imposing sanctions for the misuse of EU funds.