The Commission’s pivot toward fixed-rate indirect cost reimbursement was initially framed as a win for administrative efficiency. By replacing complex overhead accounting with a flat rate, officials hoped to lower the barrier to entry for research participants. However, the current application of this rule creates a catch-22 for organizations that also receive operating grants from programs like CERV. The Commission now treats these dual revenue streams as presumptive double funding, regardless of whether the costs being covered are factually distinct.
This policy shift is being applied retrospectively, blindsiding organizations mid-project and blowing holes in budgets that were calculated under previous financial assurances. For large universities, these fluctuations are manageable. For smaller civil society actors, they are existential threats. When the financial risk of participation outweighs the grant value, these entities are effectively forced to withdraw from the Horizon ecosystem.




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