Simplified routes to EU grant funding for civil society organisations and social enterprises
31 October 2012
The European Parliament has approved the European Financial Regulation, after a campaign initiated by Euclid Network in 2008. It will have a huge impact on civil society organisations and social enterprises as it increases European Institutions effectiveness, improves transparency, cuts red tape and introduces innovative financial mechanisms.
After more than 10 months of discussion between the European Institutions, involving six parliamentary committees and more than 500 amendments, the Parliament has given the green light to the following changes:
• Recognition of VAT as an eligible cost
• Simplification of administrative procedures for low value grants (the threshold has increased from 10000€ to 60000€)
• Allowing contribution in kind and volunteering as co-financing for low value grants
• Allowing surplus as reserves for certain grants
• Setting time limits for the funding process
• Facilitating the pooling of EU resources with private funds via the creation of “public-private partnerships”, notably in the research field
• Using incentive prizes, which are intended to provide a potentially high leverage effect with light administrative procedures (especially in the research area)
Euclid Network, together with the Civil Society Working Group on EU financial support within the Structured Dialogue Group (hosted by DG Communication), worked with more than 70 umbrella groups from across Europe in order to achieve these changes and others, which are in the new Financial Regulation. The European Parliament and the European Commission have been in the discussion since the beginning, enabling an effective dialogue among the various parties in order to find joint solutions.
The new text of the regulation will come into force in January 2013.
More information is available on the Network for Europe website.