Report on European Synergies of Funds 04^th March 2025

Summary of the Report

Introduction

The Research & Innovation and Cohesion Managing Authorities Network (RIMA) report analyzes synergies between Cohesion Policy Funds and Horizon Europe (HE) to enhance European research, innovation, and competitiveness. Initiated in 2023, RIMA aims to facilitate coordination between DG REGIO, DG RTD, and Member States, focusing on fostering synergy implementation in national and regional innovation policies. The report highlights past efforts (2014-2020 and 2020-2027 programming periods), successes, challenges, and recommendations for improvement.

Objectives of RIMA

RIMA is an ERA Forum subgroup designed to strengthen dialogue between European institutions and Member States. It aims to enhance cooperation between research and innovation (R&I) bodies and cohesion policy authorities, address challenges in aligning funding mechanisms, promote synergies that boost scientific and innovation excellence in Europe, and support national R&I authorities in leveraging European funding programs.

Key Findings from the Report

1. European Legal Framework & Knowledge on Synergies

Various EU policies and legal frameworks emphasize synergy creation. Reports from the European Court of Auditors and Council Conclusions stress the importance of better integrating Horizon Europe with cohesion policy funds. There is a need for regulatory alignment to maximize synergy potential.

2. Survey on Synergies (Findings from 16 Member States)

Fourteen out of sixteen Member States implement synergies, though mostly at the national level. Funding sources include Cohesion Policy Funds (ERDF, ESF+), the Recovery and Resilience Facility (RRF), national and regional funds, and private sector contributions. Seal of Excellence projects receive funding in most participating countries. However, the adoption of Transfers remains low, with only two Member States using this tool. Limited data-sharing practices and hesitancy in using cumulative funding mechanisms also present challenges.

Challenges in Implementing Synergies

1. Structural and Governance Issues

Fragmentation of funding mechanisms makes it difficult to coordinate between national and EU programs. Many managing authorities lack awareness about synergy opportunities, and there is limited strategic planning to integrate synergies into national policies.

2. Administrative & Regulatory Barriers

Differences in rules between Horizon Europe and cohesion funds create operational inefficiencies. The complexity of reporting and project monitoring further complicates implementation. State aid regulations add constraints to funding flexibility, while delays in data sharing reduce efficiency in identifying potential synergies.

3. Financial and Capacity Constraints

Limited financial resources restrict the scale at which synergies can be implemented. Many authorities lack trained personnel to manage and execute synergy projects. Additionally, uncertainty in long-term funding discourages innovative projects.

Examples of Good Practices in Synergy Implementation

1. Seal of Excellence (SoE) Support

Bulgaria provides ERDF funding for SoE projects under Horizon Europe. Cyprus finances MSCA SoE projects under Thalia 2021-2027, while France supports MSCA-PF SoE projects through national funding programs.

2. Cumulative Funding

Bulgaria uses combined funding for European Digital Innovation Hubs, and Portugal implements Teaming projects with cohesion and national funds.

3. European Partnerships

Estonia funds national contributions to Horizon Europe partnerships using ERDF, and Germany integrates ERDF into national R&I funding structures.

4. Transfer Mechanisms

Lithuania and Malta are pioneering the transfer of funds for research projects.

Key Recommendations

1. Governance Improvements

Member States should establish formal national and regional coordination platforms for synergy implementation. Integrating synergies into long-term national innovation strategies can enhance efficiency and policy alignment.

2. Enhancing Communication

Increasing awareness campaigns on the benefits of synergies is essential. Promoting data-sharing platforms can help improve coordination among EU bodies. Enhanced collaboration between DG REGIO, DG RTD, and Member States can ensure better alignment of funding mechanisms.

3. Capacity Building

National and regional authorities should receive training in synergy management and implementation. Horizon Europe National Contact Points (NCPs) would benefit from dedicated training. Investing in data analytics and monitoring can help track the impact of synergies.

4. Long-Term Planning & Legislative Adjustments

Aligning Horizon Europe and ERDF regulatory frameworks will facilitate smoother collaboration. Member States should plan synergy budgets in advance, while simplifying State Aid rules for synergy-funded projects can reduce administrative burdens. Developing simplified reporting mechanisms would help ease project management.

5. Implementation Rules & Financial Adjustments

Financial rules for European Partnerships should be unified to encourage broader participation. Simplified cost-sharing mechanisms between Horizon Europe and Cohesion Policy Funds would improve efficiency. Clearer guidance on the General Block Exemption Regulation (GBER) modifications can help managing authorities navigate financial adjustments more effectively.

Conclusion

The RIMA report underscores the importance of strengthening synergies between Cohesion Policy Funds and Horizon Europe to enhance European innovation capacity. While progress has been made, several challenges remain, including regulatory complexity, administrative inefficiencies, and financial constraints.

The report highlights successful practices across Member States and provides concrete recommendations to enhance synergy implementation. Moving forward, a stronger governance structure, increased awareness, streamlined regulations, and long-term financial planning are essential for maximizing the impact of EU funding programs.

By implementing the recommendations outlined in this report, Europe can achieve better alignment between research, innovation, and regional development, ensuring a more competitive and inclusive European Research Area (ERA).

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