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EU Governments Want to Cut the Next Horizon Europe by €16.8bn: What the Budget Fight Means for EIC Funding

TL;DR: what did EU governments propose for research funding?

On 10 October 2026, the Irish presidency of the EU Council put forward its plan for the EU's 2028–2034 budget. It would cut the next Horizon Europe programme by €16.8 billion, or 9.6%, compared with the Commission's proposal, to about €158 billion, and the European Competitiveness Fund by about 11%. Parliament's negotiators, universities and research groups call the cuts unacceptable and want at least €200 billion. EU leaders discuss the budget on 15–16 October. Today's EIC and Horizon calls aren't affected, but the money available to startups from 2028 depends on this fight.
The EU's next seven-year budget decides how much grant money European startups can apply for from 2028 onwards: the European Innovation Council, Horizon Europe's collaborative calls and the new Competitiveness Fund. This month, EU governments made their first concrete proposal, and it's smaller than what the Commission promised.

What happened

On Saturday 10 October, Ireland, which holds the presidency of the EU Council until December, circulated its "negotiating box" for the 2028–2034 budget (the multiannual financial framework, or MFF). According to the Irish government, it totals €1.62 trillion in 2025 prices, 8% (€141 billion) less than the Commission proposed. In current prices, that's about €1.83 trillion.
For research and innovation, the box would give the next Horizon Europe programme €158.2 billion in current prices, Science|Business reported: €16.8 billion, or 9.6%, less than the Commission's €175 billion, and also less than the €167.9 billion in Cyprus's earlier draft in June. The European Competitiveness Fund, the new umbrella for industrial and innovation funding, would be cut by about 11%.

What it means for the EIC

The European Innovation Council, the part of Horizon Europe that funds startups directly through Pathfinder, Transition and the Accelerator, sits in the programme's "Innovation" pillar. When the Commission proposed the next budget in July 2025, it planned to raise that pillar to €38.8 billion and said it would mainly fund the EIC, which has about €10 billion in the current programme, according to Science|Business.
In the Irish box, the pillar would get €31.0 billion in 2025 prices, according to the ERA Portal Austria. That's not directly comparable with the Commission's figure, which was in current prices, but every pillar is smaller than the Commission planned:
Horizon Europe pillarIrish presidency box (2025 prices)What it funds
Excellent Science€35.3bnEuropean Research Council, Marie Skłodowska-Curie Actions
Competitiveness and Society€60.7bnCollaborative research on industrial and societal challenges
Innovation€31.0bnMainly the European Innovation Council
European Research Area€13.0bnIncluding €4.3bn for widening participation
Total€140.0bn€158.2bn in current prices
No source has published a separate line for the EIC in the box yet. Even with the cut, the next programme would be much bigger than today's Horizon Europe, which is €93.5 billion after its mid-term review.

The reactions

  • The European Parliament's Horizon Europe rapporteurs, Christian Ehler and René Repasi, called the cuts unacceptable and repeated their demand for at least €200 billion.
  • Parliament's lead budget negotiators, Siegfried Mureșan and Carla Tavares, said the box "cannot be the starting point" for talks.
  • The European University Association says the box is €41.8 billion short of its €200 billion target and €9.7 billion below the Cyprus draft, according to EUA.
  • The Guild of research universities called the cut unacceptable, pointing out that 75% of high-quality Horizon proposals already go unfunded.
  • On the other side, German Chancellor Friedrich Merz said the EU budget must be affordable.

What happens next

  1. 15–16 October 2026: EU leaders meet in Brussels with the budget on the agenda. European Council President António Costa wants the elements of a deal by the end of 2026.
  2. 10 November 2026: the Parliament's research committee (ITRE) votes on the Horizon Europe regulation, with a plenary vote expected by mid-November. Negotiations with the Council would start in January 2027 at the earliest.
  3. The final budget needs unanimity among the 27 governments and the consent of an absolute majority of MEPs, so the Parliament has real leverage.
  4. If a deal comes by the end of 2026, the legal acts can be adopted in 2027 and money can flow from January 2028.

What this means for you

  1. Today's calls are safe. EIC and Horizon Europe calls for 2026–2027 are funded under the current budget. See the last EIC deadlines of 2026 and the new Horizon Europe calls worth €487 million.
  2. Apply while the money is there. If you're planning an EIC Accelerator application, the 2027 cut-offs fall under the current programme. Start with our EIC Accelerator guide.
  3. Don't rely on one funding source. National programmes and loans keep running whatever happens in Brussels; see European funding beyond grants and startup funding alternatives.
  4. Follow the money, not the headlines. The numbers will change several times before 2028. We'll report when the EIC's own budget line becomes clear.
Context matters too: EU funding bodies have had a rough year, from the EIT Manufacturing scandal to payment delays. For an overview of every programme, see our EU funding programmes encyclopedia. There is better news too: Hungary’s universities are back in Horizon Europe and Erasmus+ after the Council lifted its 2022 funding measures.
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FAQ: the EU budget and Horizon Europe

How much would the next Horizon Europe get under the Council's plan?

About €158.2 billion for 2028–2034 in current prices (€140 billion in 2025 prices), €16.8 billion or 9.6% less than the Commission's proposal of €175 billion.

Does the budget cut affect current EIC calls?

No. EIC and Horizon Europe calls for 2026–2027 are funded under the current programme. The proposed cuts concern the next programme, from 2028.

How much does the EIC get in the next programme?

No final figure exists yet. The Commission planned to raise Horizon Europe's Innovation pillar, which mainly funds the EIC, to €38.8 billion; the Irish box gives the pillar €31.0 billion in 2025 prices.

What is the European Competitiveness Fund?

A new EU fund proposed for 2028–2034 that groups industrial, digital, clean-tech, health and defence funding; Horizon Europe is linked to it. The Irish box would cut it by about 11%.

When will the EU budget be decided?

EU leaders aim to agree on the main elements by the end of 2026. The budget then needs unanimity among governments and the European Parliament's consent, with the new programmes starting in January 2028.

How big is Horizon Europe now?

The current Horizon Europe (2021–2027) has €93.5 billion after its mid-term review.
2026-10-13 22:39 Funding news