Deadline looms for R&D funding

Date: 21/03/1996

By Michael Mann

THERE now seems no chance of EU governments agreeing to free up the 700-million-ecu reserve the European Commission wants to use for research funding before the 30 June deadline.

The time limit could, however, be extended if there was a genuine desire to help the Commission honour its pledge to give an extra boost to five priority research and development (R&D) areas.

“As long as there was a firm indication by 30 June that member states wanted to make extra money available, the deadline could still be extended,” stressed a member state official.

But he added that such unequivocal support was very unlikely.

In the wake of the refusal by Germany, France, the UK, the Netherlands, Sweden and Austria to consider redirecting unspent money from the agricultural budget to research and transport projects, few believe that Research Commissioner Edith Cresson will get her way.

The results of last week's meeting of finance ministers have been greeted with frustration by both the Commission and MEPs, who are determined that research should be a concrete example of the drive to create jobs.

EU research ministers will discuss the plan to concentrate extra funding on the aeronautical industry, educational software, the car of the future, intermodal transport and the environment at their meeting on 25 March. They will, however, fall well short of reaching a common position at such an early stage. Member state officials stress that until there is clarity about how much finance - if any - is available, ministers will merely talk around the houses.

Having kissed goodbye to the idea of raising the global budget ceiling, the Commission continues to concentrate its efforts on convincing member states to shift money from the agricultural budget to R&D. But even this looks likely to fail.

“There has consistently been a powerful blocking minority against increasing the budget heading for internal policies,” said one diplomat.

There is also a possibility that about 200 million ecu could be left over within the EU's internal policies budget which could be reallocated, although it will be a while before it is clear exactly how much leeway there will be.

But member state officials are still unwilling to commit themselves to the Commission's priorities. “It's hard to give a firm view until we know how much money we will have. A project which is worth pursuing with several hundred million ecu might not be so attractive if funding is cut, and the money might be better used elsewhere,” commented one.

All seem to agree that the idea of pursuing specialist task forces is an interesting approach, which might find greater resonance in the Fifth Framework Programme on Research and Development, on which initial discussions are under way.

Despite evident disappointment at the way the debate is developing, the European Parliament has pledged to continue its detailed consideration of the priority projects, although MEPs admit that it would not be physically possible to respect the June deadline, even if member states were willing. German Socialist Rolf Linkohr is completing his report, but it is unlikely to be voted on in a plenary session until April or May. Under the co-decision procedure, the proposals must receive two readings in the Parliament.

Research committee vice-chairman Eryl McNally questions whether the priorities were well chosen, considering the criteria the Commission set itself, particularly the goals of job creation and cohesion. She is challenging the member states not to be short-sighted, saying: “They all claim to see research and development as one of the keys to job creation. They should either make some money available or admit they're not really interested in it. We certainly haven't given up hope yet.”

Initial discussions in committee have led some MEPs to suggest that it would be better for the EU to concentrate on areas where there is less intensive competition from the US and Far East, and that the projects singled out may be biased in favour of certain countries, notably France and the UK. But a spokesman for Cresson defended her ideas. “These are not narrow sectoral priorities. We have targeted those projects which will have positive knock-on effects for thousands of SMEs all over the Union,” he said.

The 700-million-ecu reserve Cresson wants to use was set aside in December 1994 when research ministers approved the 12.3 billion ecu budget for the Fourth Framework Programme.

Cresson, who took over the reins a month later, is determined to put R&D firmly on the EU map. She has repeatedly pointed out that Europe puts only 2&percent; of its GDP into research, compared to 2.7&percent; in the US and 2.8&percent; in Japan. In the EU, public spending on R&D is 77 ecu per citizen. In Japan, the figure is 88 ecu and in the US, 131 ecu.