Proposal for a COUNCIL DECISION laying down the measures necessary for the implementation of Protocol No 37 on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel, annexed to the Treaty on European Union and to the Treaty for the Functioning of the European Union
Date: 2025-12-10
Institutions: Directorate-General for Research and Innovation, European Commission
Subjects: ECSC, ECSC Treaty, EU programme, EU research policy, coal, fund (EU), liquidation, research and development, research programme, steel

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   EUROPEAN COMMISSION  Brussels, 10.12.2025  COM(2025) 759 final 2025/0390 (APP)  Proposal for a COUNCIL DECISION laying down the measures necessary for the implementation of Protocol No 37 on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel, annexed to the Treaty on European Union and to the Treaty for the Functioning of the European Union {SWD(2025) 407 final} - {SWD(2025) 408 final}  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  purpose  of  this  proposal  is  to  amend  the  existing  legislation  of  the  Research  Fund  for 
Coal and Steel, referred to as ‘RFCS’. This Council decision intends to replace and repeal the 
provisions  of  Council  Decision  2003/76/EC1  that  was  amended  by  Council  Decision 
2018/5992 and Council Decision 2021/12083. It will establish the measures necessary for the 
implementation of the Protocol No 374, annexed to the Treaty of the European Union and the 
Treaty  on  the  Functioning  of  the  European  Union.  The  proposal  takes  into  account  the 
observations from the ex-ante evaluation that accompanies this proposal, as well as the advice 
of the Coal and Steel Advisory Groups and of the Member States represented in the Coal and 
Steel Committee. 

The  proposal  aims  to  simplify  and  accelerate  investments  under  the  RFCS,  including  by 
increasing  its  attractiveness  and  continuing  to  use  the  part  of  the  European  Coal  and  Steel 
Community  (ECSC)  in  liquidation  and,  on  completion  of  the  liquidation,  the  assets  of  the 
Research Fund for Coal and Steel (the “assets”), for funding two biannual calls for reaserch 
and innovation projects from 2027 until 2030 to enhance impact.  

To achieve this, a reform of the RFCS is necessary as the provisions outlined in the amending 
Council  Decision  2021/1208,  which  allows  the  use  of  part  of  the  assets  for  dedicated  calls, 
will expire at the end of 2027. 

• 

Consistency with existing policy provisions in the policy area 

The proposal is part of a legal package revising the RFCS and its Research Programme. It will 
be  divided  into  two  new  proposals  for  Council  Decisions:  one  establishing  the  measures 
necessary for the implementation of the Protocol No 37, and one laying down the multiannual 
financial and technical guidelines for managing the assets.  

Consistency with other Union policies 

• 
The EU Competitiveness Compass5, presented by the Commission in January 2025, sets out a 
new  roadmap  of  measures  for  the  next  years  to  boost  Europe’s  dynamism  and  economic 
growth  with  industrial  competitiveness  and  decarbonisation  amongst  the  transformational 
imperatives as identified in the Draghi report. Together with the need to close the innovation 

1 

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5 

Fund 

Council  Decision  2003/76/EC  of  1  February  2003  establishing  the  measures  necessary  for  the 
implementation  of  the  Protocol,  annexed  to  the  Treaty  establishing  the  European  Community,  on  the 
financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel 
(OJ L 29, 5.2.2003, p. 22, ELI: http://data.europa.eu/eli/dec/2003/76(1)/oj). 
Council  Decision  (EU)  2018/599  of  16  April  2018  amending  Decision  2003/76/EC  establishing  the 
measures  necessary  for  the  implementation  of  the  Protocol,  annexed  to  the  Treaty  establishing  the 
European  Community,  on  the  financial  consequences  of  the  expiry  of  the  ECSC  Treaty  and  on  the 
Research 
1, 
ELI: http://data.europa.eu/eli/dec/2018/599/oj) 
Council  Decision  (EU)  2021/1208  of  19  July  2021  amending  Decision  2003/76/EC  establishing  the 
measures  necessary  for  the  implementation  of  the  Protocol,  annexed  to  the  Treaty  establishing  the 
European  Community,  on  the  financial  consequences  of  the  expiry  of  the  ECSC  Treaty  and  on  the 
Research 
54, 
for 
ELI: http://data.europa.eu/eli/dec/2021/1208/oj) 
Protocol (No 37) on the financial consequences of the expiry of the ECSC Treaty and on the Research 
Fund for Coal and Steel (OJ C 115, 9.5.2008, p. 327–328). 
COM(2025) 30 final 

22.7.2021, 

20.4.2018, 

Fund 

Steel 

Steel 

Coal 

Coal 

101, 

261, 

and 

(OJ 

(OJ 

and 

for 

p. 

p. 

L 

L 

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gap and reducing excessive dependencies and increasing security, decarbonisation is seen as a 
powerful  driver  of  growth,  which  needs  to  be  integrated  with  industrial,  competition, 
economic and trade policies.  

On  26  February  2025,  the  Commission  followed  up  by  presenting  a  joint  roadmap  for 
decarbonisation  and  competitiveness  with  its  Clean  Industrial  Deal6.  It  aims  at  transitioning 
Europe to a decarbonised economy by 2050 and providing a framework supporting European 
industry  with  a  stronger  business  case  for  climate  neutral  investments  in  energy-intensive 
industries, circularity and clean tech. The Clean Industrial Deal sets out concrete measures for 
this purpose and mentions steel among industrial products for which demand can be shaped 
significantly through private procurement. It also makes references to the implementation of 
the  2024  Net  Zero  Industry  Act7,  which  aims  at  reinforcing  manufacturing  capacity  of  net 
zero  technologies  in  Europe,  and  the  European  Green  Deal8,  which  committed  to  support 
clean steel breakthrough technologies leading to a zero-carbon steel making process by 2030. 
It was also accompanied by an Action Plan for Affordable Energy9 to strengthen the Energy 
Union  and  proposing  actions  to  secure  affordable,  efficient  and  clean  energy  for  all 
Europeans.  
Additionally,  the  European  Steel  and  Metals  Action  Plan10,  published  by  the  European 
Commission  on  19  March  2025,  aims  at  supporting  a  sustainable  and  competitive  steel 
production for the European Union. As part of its focus on de-risking decarbonisation projects 
through lead markets and public support, the plan highlights the role of the RFCS to provide 
important funding for the steel sector at the innovation stage to support the transition to clean 
steel. It further announced already an ‘overall reform of the Research Fund for Coal and Steel, 
to  simplify  and  accelerate  investments  in  steel  research,  including  research  on  defence 
applications’.  
Finally,  the  Methane  Regulation11,  adopted  in  2024,  aims  at  reducing  methane  emissions in 
the  energy  sector,  and  introduces  requirements  for  reporting  and  mitigating  methane 
emissions from coal mines.   

The  Competitiveness  Compass  highlighted  the  need  for  measures  on  decarbonisation,  to  be 
further complemented by action on horizontal enablers, such as by simplifying the regulatory 
environment, reducing burden and favouring speed and flexibility. This also links to the wider 
discussion  on  simplifying  the  complex  landscape  of  Union  funding  programmes  to  make 
Union funding more effective and impactful. In the context of the Commission’s proposal of 
16  July  2025  for  an  ambitious  and  dynamic  Multiannual  Financial  Framework,  emphasis  is 
placed  on  providing  for  more  flexibility,  for  simpler,  more  streamlined  and  harmonised 
financial programmes, and for a competitiveness boost. 

The  recent  policy  developments  outlined  above  are  consistent  with  the  RFCS  Research 
Programme  objectives  of  supporting  the  coal  and  steel  sectors  in  their  transition.  It  is 

6 
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and 

Regulation 

COM(2025) 85 
Regulation  (EU)  2024/1735  of  the  European  Parliament  and  of  the  Council  of  13  June  2024  on 
establishing  a  framework  of  measures  for  strengthening  Europe’s  net-zero  technology  manufacturing 
ecosystem 
2024/1735, 
(EU) 
amending 
28.6.2024).ELI: http://data.europa.eu/eli/reg/2024/1735/oj 
COM(2019) 640 final 
COM/2025/79 final 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions  ‘A  European  Steel  and  Metals 
Action Plan’, COM(2025) 125 final 
Regulation  (EU)  2024/1787  of  the  European  Parliament  and  of  the  Council  of  13  June  2024  on  the 
reduction of methane emissions in the energy sector and amending Regulation (EU) 2019/942 (OJ L, 
2024/1787, 15.7.2024, ELI: http://data.europa.eu/eli/reg/2024/1787/oj). 

2018/1724, 

OJ 

L, 

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necessary  to  ensure  that  the  RFCS  Research  Programme  is  adapted  accordingly,  and  that  it 
allows the necessary investments to accelerate the decarbonisation for both sectors.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis is Article 2, paragraph 1, of Protocol No 37 on the financial consequences of 
the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel, annexed to the 
Treaty on European Union and to the Treaty on the Functioning of the European Union.  

• 

Subsidiarity (for non-exclusive competence)  

The proposed changes to the RFCS can only be made at EU level, through the revision of the 
existing legislation.  

• 

Proportionality 

The proposal is necessary for establishing the measures necessary for the implementation of 
the Protocol No 37. 

• 

Choice of the instrument 

Having regard to the first paragraph of Article 2 of the Protocol No 37, this Council Decision 
is to be adopted, in accordance with a special legislative procedure, by the Council acting by 
qualified majority on a proposal from the Commission and with the consent of the European 
Parliament.   

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The  proposal  is  based  on  results  of  the  ex-ante  evaluation,  which  carries  out  a  monitoring 
exercise  of  the  RFCS  Research  Programme  for  the  period  2021-2024  and  reports  from  the 
Technical Groups for the years 2022 and 2023. 

• 

Stakeholder consultations 

The  RFCS  stakeholders  have  been  involved  in  several  ad-hoc  meetings,  specific  Advisory 
Group meetings (of the Coal Advisory Group and Steel Advisory Group), such as in the joint 
meetings  on  19  September  2025  and  12  May  2025,  and  the  Coal  and  Steel  Committee 
(COSCO),  last  on  23  September  2025.  A  dedicated,  public  consultation  event  was  also 
carrried out on 19 June 2025.  

• 

Collection and use of expertise 

The monitoring of RFCS Research Programme programming period 2021-2024 in the ex-ante 
evaluation,  carried  out  in  cooperation  with  the  Research  Executive  Agency,  together  with 
consultations of stakeholders, provided the necessary expertise.  

• 

Impact assessment 

An impact assessment is not necessary for the proposed revision. 

This Council Decision concerns an amendment to an already existing legislation based on the 
Protocol  No  37  and  only  leads  to  a  small  impact.  In  such  cases,  the  Better  Regulation 

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toolbox12 clarifies that no  impact  assessment is  required.  Moreover, the  European Steel and 
Metals Action Plan of 19 March 2025 announced a proposal for a reform of the RFCS for the 
same year and already determined, based on the analysis conducted for the Action Plan, the 
main policy orientation of the reform: “to simplify and further accelerate investments in steel 
research, including research on defence applications.” However, the proposed revision is still 
supported  by  the  analysis  of  an  ex-ante  evaluation,  as  required  by  the  Article  34  of  the 
Regulation (EU, Euratom) 2024/2509.  

• 

Regulatory fitness and simplification 

The  proposal  is  based  on  the  results  of  the  ex-ante  analysis  exercise  that  accompanies  the 
proposal. This includes considerations of how to simplify and accelerate the support offered 
by  the  RFCS  Research  Programme,  including  ways  to  increase  flexibility  and  predictability 
for potential applicants. 

• 

Fundamental rights 

The proposal is in line with the protection of fundamental rights.  

4. 

BUDGETARY IMPLICATIONS 

The proposal does not create any new liabilities to be charged to the General Budget under the 
current MFF. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

A monitoring and assessment of the implementation of the RFCS  Research Programme will 
be carried out at the end of 2027. 

• 

Explanatory documents (for directives) 

Not applicable. 

• 

Detailed explanation of the specific provisions of the proposal 

This  Council  Decision  will  establish  the  measures  necessary  for  the  implementation  of  the 
Protocol No 37.  

This  Council  Decision  will  establish  the  measures  necessary  to  use  the  remaining  non-
allocated assets of the ECSC in liquidation, estimated currently at EUR 647 million at the end 
of 202613 plus any remaining uncommitted funds from previous RFCS Research Programme 
calls, through four annual calls for research and innovation projects foreseen in biannual work 
programmes  for  2027-2028  and  2029-2030.  This  decision  extends  the  financial  envelope  of 
the Research Programme to EUR 200 million per year to accelerate R&I investment in sectors 
concerned and extend the range of actors involved. The increased budget allows also for an 
upward alignment of the funding rates with the EU research funding programmes, through the 
parallel Council Decision establishing multiannual financial and technical guidelines allowing 
for  greater  participation  of  public  and  academic  entities.  This  will  better  support  industrial 
research investment and outputs. 

The distribution of funding between coal-related and steel-related research foreseen in Article 
4(2)  of  Council  Decision  2003/76/EC  will  continue  to  be  used  by  the  Commission  in  the 

12 
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See Tool #7 of the European Commission’s Better Regulation toolbox. 
Estimation based on a market value as of 31 August 2025. 

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implementation  of  the  RFCS  Research  Programme.  It  can  nonetheless  be  altered  in  the  last 
year  of  implementation  of  the  work  programme,  if  necessary  to  enable  the  full  use  of  the 
assets.  

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2025/0390 (APP) 

Proposal for a 

COUNCIL DECISION 

laying down the measures necessary for the implementation of Protocol No 37 on the 
financial consequences of the expiry of the ECSC Treaty and on the Research Fund for 
Coal and Steel, annexed to the Treaty on European Union and to the Treaty for the 
Functioning of the European Union 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  Protocol  No  37  on  the  financial  consequences  of  the  expiry  of  the  ECSC 
Treaty  and  on  the  Research  Fund  for  Coal  and  Steel,  annexed  to  the  Treaty  on  European 
Union  and  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 2, first paragraph, thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments,  
Having regard to the consent of the European Parliament1,  

Acting in accordance with a special legislative procedure,  

Whereas: 

(1) 

(2) 

(3) 

(4) 

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2 

The Treaty establishing the European Coal  and Steel Community expired on 23 July 
2002  in  accordance  with  Article  97  of  that  Treaty.  All  assets  and  liabilities  of  the 
European  Coal  and  Steel  Community  (ECSC)  were  transferred  to  the  European 
Community on 24 July 2002. 

In accordance with Protocol No 37 on the financial consequences of the expiry of the 
ECSC Treaty and on the Research Fund for Coal and Steel, annexed to the Treaty on 
European  Union  and  to  the  Treaty  on  the  Functioning  of  the  European  Union  (‘the 
Protocol’),  the  net  worth  of  the  assets  and  liabilities,  as  they  appear  in  the  balance 
sheet  of  the  ECSC,  is  to  be  considered  as  assets  intended  for  research  in  the  sectors 
related  to  the  coal  and  steel  industry  (‘the  assets’),  referred  to  as  the  ‘ECSC  in 
liquidation’, and, on completion of the liquidation, as the ‘assets of the Research Fund 
for Coal and Steel’. 

The  Protocol  also  provides  that  the  revenue  from  those  assets,  referred  to  as  the 
‘Research  Fund  for  Coal  and  Steel’  Steel’  (RFCS),  is  to  be  used  exclusively  for 
research, outside the research framework programme, in the sectors related to the coal 
and  steel  industry  in  accordance  with  the  provisions  of  the  Protocol  and  of  acts 
adopted on the basis thereof. 
On 1 February 2003 the Council adopted Decision 2003/76/EC2, which laid down the 
rules for implementing the Protocol. 

OJ C , , p. . 
Council  Decision  2003/76/EC  of  1  February  2003  establishing  the  measures  necessary  for  the 
implementation  of  the  Protocol,  annexed  to  the  Treaty  establishing  the  European  Community,  on  the 

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(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

Already  for  some  years  due  to  the  low  interest  rates,  the  value  of  the  produced 
revenues  assigned  for  the  funding  of  research  projects  for  coal  and  steel  is  rapidly 
decreasing  and  the  assets  are  not  generating  enough  revenues  to  fund  the  current 
annual  RFCS  allocation  of  EUR  111  million  to  calls,  established  by  Decision 
2003/76/EC. In consequence, in 2024 and in 2025 calls were entirely financed by the 
sale of assets, given that there were losses for 2022 and 2023. For 2026, and possibly 
subsequent years, the realised profit will cover a part of the annual allocation, but it is 
not expected to be sufficient to allow for a meaningful work programme.    

As part of its  efforts  to  strengthen the competitiveness  of the Union steel  sector  and 
safeguard the industry's future, the Commission committed in the European Steel and 
Metals Action Plan, published on 19 March 20253, to simplify and further accelerate 
investments in steel research. 

The  energy  transition  away  from  fossil  energy  sources,  especially  coal,  currently 
represents a challenge, also with regard to the need to ensure a just transition, notably 
for  industries  and  workers  in  coal  dependent  regions.  Further  challenges  include 
mitigating methane emissions from coal mines and contributing to the implementation 
of Regulation (EU) 2024/1787 of the European Parliament and of the Council4. 

From August 2027 onwards, it is expected that the ECSC in liquidation will have no 
liabilities nor receivables, meaning the completion of the liquidation.   

The sale of part of the ECSC in liquidation and, on completion of the liquidation, the 
assets of the Research Fund for Coal and Steel to finance research projects in the coal 
and steel sectors is possible in view of the absence of liabilities of the Fund. 

In  light  of  the  combined  financial  changes  and  policy  considerations,  the  size  of  the 
Research Programme should be set in such a way to ensure that the assets of the Fund 
can  be  used  and  correctly  implemented  in  accordance  with  the  objectives  of  the 
Protocol  and  the  principles  of  sound  financial  management.  The  need  to  ensure  a 
critical mass for the size of the Research Programme cannot be achieved by using only 
revenues or a limited part of the remaining assets of the Fund. The amounts needed for 
the Research Programme will require the use of all the assets of the RFCS. Therefore, 
it should be possible to  use the remaining assets of the RFCS to provide meaningful 
support  for  worthwhile  collaborative  research  projects  that  have  the  critical  mass  to 
create  Union  added  value,  specifically  in  the  sectors  of  coal  and  steel  outside  the 
framework programme for research of the Union. 

(11)  The Clean Industrial Deal Communication5 and the European Steel and Metals Action 
Plan  support  the  business  case  for  large  investments  to  happen  in  the  Union  in  the 
coming  years,  including  for  the  steel  industry.  Following  this  political  incentive,  the 
Research Fund for Coal and Steel should contribute to a rapid transition by financing 
the part of necessary large research efforts.  

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financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel 
(OJ L 29, 5.2.2003, p. 22, ELI: http://data.europa.eu/eli/dec/2003/76(1)/oj). 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions  ‘A  European  Steel  and  Metals 
Action Plan’, COM(2025) 125 final. 
Regulation  (EU)  2024/1787  of  the  European  Parliament  and  of  the  Council  of  13  June  2024  on  the 
reduction of methane emissions in the  energy sector and amending Regulation (EU) 2019/942 (OJ L, 
2024/1787, 15.7.2024, ELI: http://data.europa.eu/eli/reg/2024/1787/oj). 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic and Social Committee and the Committee of the Regions ‘The Clean Industrial Deal: A joint 
roadmap for competitiveness and decarbonisation’, COM(2025) 85 final. 

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(12)  Calls in 2027, 2028 and 2029 of EUR 200 million annually, and in 2030 of an amount 
equivalent  to  the  available  remaining  unallocated  assets  are  expected  to  leverage 
private investment to enhance competitiveness and accelerate industrial transformation 
of the coal and steel sectors towards green transition and decarbonisation. Appropriate 
annual allocations should therefore be established to enable such calls. 

(13) 

In  order  to  fully  assign  the  net  revenue  from  the  investments  and  to  facilitate  the 
increase  of  the  allocation  for  2027  from  EUR  111  million  to  EUR  200  million,  it  is 
appropriate to shorten the delay in allocating it, by making the allocation in year n+1 
covered by the balance sheet of the assets for year n for closed balance sheets for the 
years  2026,  2027,  2028  and  2029,  while  maintaining  the  annual  allocations  already 
established by Decision 2003/76/EC. 

(14)  The current repartition of budget allocations between coal and steel research, of 27.2% 
and  72.8%  respectively,  is  supported  by  both  sectors  and  remains  appropriate 
considering their respective needs and absorption capacities. 

(15) 

In order to be able to adapt to the possible research funding needs of the coal or steel 
sector in case of insufficient absorption of the other sector, the power to adopt acts in 
accordance with Article 290 of the Treaty on the Functioning of the European Union 
should  be  delegated  to  the  Commission  to  amend  this  Decision  to  change  the 
percentage of funding allocated to coal-related research and to steel-related research in 
2030,  if  necessary,  to  enable  the  full  use  of  the  assets.  It  is  of  particular  importance 
that the Commission carries out appropriate consultations during its preparatory work, 
including at expert level, and that those consultations be conducted in accordance with 
the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better 
Law-Making6.  In  particular,  to  ensure  equal  participation  in  the  preparation  of 
delegated acts, the European Parliament and the Council shall receive all documents at 
the same time as  Member States'  experts, and their experts  shall  systematically have 
access  to  meetings  of  Commission  expert  groups  dealing  with  the  preparation  of 
delegated acts. 

(16)  Decision 2003/76/EC  should  therefore be  replaced.  However, until  the liquidation  of 
the ECSC is completed, it is appropriate to maintain the application of Article 1 of that 
Decision  until  the  completion  of  the  the  financial  operations  of  the  ECSC  in 
liquidation. 

HAS ADOPTED THIS DECISION:  

Article 1 

The  Commission  is  entrusted  with  laying  down  the  measures  necessary  for  implementing 
Protocol No 37  on the financial consequences of the expiry of the ECSC Treaty  and on the 
Research Fund for Coal and Steel, annexed to the Treaty on European Union and to the Treaty 
on the Functioning of the European Union.   

The  Commission  is  entrusted  with  managing  the  financial  operations  of  the  ECSC  in 
liquidation and, on completion of the liquidation, of the assets of the Research Fund for Coal 
and Steel(‘the assets’).   

6 

OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj. 

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Article 2 

1. The Commission shall manage the assets in such a manner as to keep an annual allocation 
of  EUR  200  million  for  the  years  2027,  2028  and  2029  to  finance  research  in  the  sectors 
related  to  the  coal  and  steel  industry.  Remaining  unallocated  assets  shall  be  part  of  an 
allocation  for  the  year  2030  equal  to  the  market  value  of  these  assets  at  the  moment  of  the 
transfer to the Research Fund for Coal and Steel, taking into account the market conditions. 
This  allocation  shall  be  used  to  finance  research  in  the  sectors  related  to  the  coal  and  steel 
industry in this and the following years.  

2. Research activities shall focus on technologies leading to near-zero-carbon steelmaking and 
research  projects  for  managing  the  just  transition  of  formerly  operating  coal  mines  or  coal 
mines in the process of closure and related infrastructure, including the regions in which they 
are located, in accordance with related infrastructure, including the regions in which they are 
located,  in  accordance    with  Regulations  (EU)  2021/5237,  (EU)  2021/10568  and    (EU) 
2021/12299  of  the  European  Parliament  and  of  the  Council  and  in  compliance  with  Article 
4(2) of this Decision.  

3. The annual allocation of the amount set out in paragraph 1 shall be constituted of the net 
revenue  from  the  investments,  and  the  cash  amount  to  be  generated  by  selling  part  of  the 
assets. 

Article 3 

1. Each year a profit-and-loss account, balance sheet and financial report shall be drawn up to 
show, separately from the other financial operations of the Union, the investment transactions 
and asset management operations under Article 2.   

Those  financial  statements  shall  be  annexed  to  the  financial  statements  drawn  up  by  the 
Commission  annually  under  Article  318  of  the  Treaty  on  the  Functioning  of  the  European 
Union (TFEU) and Article 247 of Regulation (EU, Euratom) 2024/2509.  

2. The powers of the European Parliament, the Council and the Court of Auditors concerning 
control  and  discharge  as  set  out  in  the  TFEU  and  in  Regulation  (EU,  Euratom)  2024/2509 
shall apply to the transactions and operations referred to in paragraph 1 of this Article.  

Article 4  

1. Net revenue from the investments provided for under Article 2 and the cash amounts to be 
generated  by  selling  part  of  the  assets  shall  constitute  revenue  in  the  general  budget  of  the 
Union.  Those  revenue  and  cash  amounts  shall  be  earmarked  for  the  specific  purpose  of 
financing research projects in the sectors related to the coal and steel industry not covered by 
the Research Framework Programmes. It shall form the Research Fund for Coal and Steel and 
shall be managed by the Commission. 

7 

8 

9 

Regulation  (EU)  2021/523  of  the  European  Parliament  and  of  the  Council  of  24  March  2021 
establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, 
p. 30, ELI: http://data.europa.eu/eli/reg/2021/523/oj). 
Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing 
the Just Transition Fund, (OJ L 231, 30.6.2021, p. 1 ELI: http://data.europa.eu/eli/reg/2021/1056/oj). 
Regulation  (EU)  2021/1229  of  the  European  Parliament  and  of  the  Council  of  14  July  2021  on  the 
public  sector  loan  facility  under  the  Just  Transition  Mechanism,  (OJ  L  274,  30.7.2021,  p.  1,  ELI: 
http://data.europa.eu/eli/reg/2021/1229/oj). 

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2.  The  revenue  and  cash  amounts  referred  to  in  paragraph  1  shall  be  distributed  in  work 
programmes,  with  27,2%  allocated  to  coal-related  research  and  72,8%  allocated  to  steel-
related research.  

The  Commission  is  empowered  to  adopt  delegated  acts  in  accordance  with  Article  7 
amending this Decision to change the percentage of funding allocated to coal-related research 
and to steel-related research laid down in the first subparagraph in 2030 where necessary  to 
enable full use of the assets.    

3.  The  revenue  and  cash  amounts  earmarked  under  paragraph  1  and  still  available  on  31 
December  in  any  given  year,  as  well  as  amounts  recovered,  shall  be  carried  over 
automatically to the following year. 
4.  Budgetary  appropriations  corresponding 
to  cancellations  of  commitments  shall 
automatically lapse at the end of each financial year. Provisions for commitments released as 
a result of the cancellations shall be made available to the Research Fund for Coal and Steel.  

Article 5 

The  revenue  and  cash  amounts  available  to  finance  research  projects  for  year  n+1  shall  be 
recorded in the balance sheet of the ECSC in liquidation of year n and, on completion of the 
liquidation, in the balance sheet of the assets of the Research Fund for Coal and Steel of year 
n, until the allocation of the remaining assets in 2029 for 2030. 

Article 6 

investment  and  management 
Administrative  expenditure  resulting  from 
operations  referred  to  in  this  Decision,  shall  be  met  by  the  Commission  from  the  general 
budget of the Union. 

liquidation, 

Article 7 

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions 
laid down in this Article. 

2. The power to adopt delegated acts referred to in Article 4(2), second subparagraph, shall be 
conferred on the Commission  for a period of four years from the date of entry into force of 
this Decision. 

3. The delegation of power referred to in Article 4(2), second subparagraph, may be revoked 
at any time by the European Parliament or by the Council. A decision to revoke shall put an 
end  to  the  delegation  of  the  power  specified  in  that  decision.  It  shall  take  effect  the  day 
following the publication of the decision in the Official Journal of the European Union or at a 
later  date  specified  therein.  It  shall  not  affect  the  validity  of  any  delegated  acts  already  in 
force. 

4. Before adopting a delegated act, the Commission shall consult experts designated by each 
Member State in accordance with the principles laid down in the Interinstitutional Agreement 
of 13 April 2016 on Better Law-Making. 

5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the 
European Parliament and to the Council. 

6.  A  delegated  act  adopted  pursuant  to  Article  4(2),  second  subparagraph,  shall  enter  into 
force  only  if  no  objection  has  been  expressed  either  by  the  European  Parliament  or  by  the 
Council within a period of two months of notification of that act to the European Parliament 
and  the  Council  or  if,  before  the  expiry  of  that  period,  the  European  Parliament  and  the 

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Council  have  both  informed  the  Commission  that  they  will  not  object.  That  period  shall  be 
extended by one month at the initiative of the European Parliament or of the Council. 

Decision 2003/76/EC is repealed.  

Article 8 

However, Article 1 of Decision 2003/76/EC shall continue to apply to the financial operations 
of the ECSC in liquidation until the completion of the liquidation of the ECSC in liquidation. 

This  Decision  shall  enter  into  force  on  the  twentieth  day  following  its  publication  in 
the Official Journal of the European Union. 

Article 9 

Done at Brussels, 

For the Council 
The President 

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LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT 

1. 

1.1. 

1.2. 

1.3. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 3 

Title of the proposal/initiative ...................................................................................... 3 

Policy area(s) concerned .............................................................................................. 3 

Objective(s) .................................................................................................................. 3 

1.3.1.  General objective(s) ..................................................................................................... 3 

1.3.2.  Specific objective(s) ..................................................................................................... 3 

1.3.3.  Expected result(s) and impact ...................................................................................... 3 

1.3.4. 

Indicators of performance ............................................................................................ 3 

1.4. 

1.5. 

The proposal/initiative relates to: ................................................................................. 4 

Grounds for the proposal/initiative .............................................................................. 4 

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative ............................................................ 4 

1.5.2.  Added value of EU involvement (it may result from different factors, e.g. 

coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this section 'added value of EU involvement' is the value resulting 
from EU action, that is additional to the value that would have been otherwise 
created by Member States alone. ................................................................................. 4 

1.5.3.  Lessons learned from similar experiences in the past .................................................. 4 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 
other appropriate instruments ....................................................................................... 5 

1.5.5.  Assessment of the different available financing options, including scope for 

redeployment ................................................................................................................ 5 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.2.1. 

2.2.2. 

Duration of the proposal/initiative and of its financial impact .................................... 6 

Method(s) of budget implementation planned ............................................................. 6 

MANAGEMENT MEASURES................................................................................... 8 

Monitoring and reporting rules .................................................................................... 8 

Management and control system(s) ............................................................................. 8 

Justification of the budget implementation method(s), the funding implementation 
mechanism(s), the payment modalities and the control strategy proposed .................. 8 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them............................................................................................................ 8 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio between 

the control costs  and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure) ........................................... 8 

2.3. 

3. 

3.1. 

Measures to prevent fraud and irregularities ................................................................ 9 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE ............ 10 

Heading(s) of the multiannual financial framework and expenditure budget line(s) 
affected ....................................................................................................................... 10 

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3.2. 

Estimated financial impact of the proposal on appropriations ................................... 12 

3.2.1.  Summary of estimated impact on operational appropriations.................................... 12 

3.2.1.1.  Appropriations from voted budget ............................................................................. 12 

3.2.1.2.  Appropriations from external assigned revenues ....................................................... 17 

3.2.2.  Estimated output funded from operational appropriations......................................... 22 

3.2.3.  Summary of estimated impact on administrative appropriations ............................... 24 

3.2.3.1. Appropriations from voted budget .............................................................................. 24 

3.2.3.2.  Appropriations from external assigned revenues ....................................................... 24 

3.2.3.3.  Total appropriations ................................................................................................... 24 

3.2.4.  Estimated requirements of human resources.............................................................. 25 

3.2.4.1.  Financed from voted budget....................................................................................... 25 

3.2.4.2.  Financed from external assigned revenues ................................................................ 26 

3.2.4.3.  Total requirements of human resources ..................................................................... 26 

3.2.5.  Overview of estimated impact on digital technology-related investments ................ 28 

3.2.6.  Compatibility with the current multiannual financial framework.............................. 28 

3.2.7.  Third-party contributions ........................................................................................... 28 

3.3. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

Estimated impact on revenue ..................................................................................... 29 

DIGITAL DIMENSIONS .......................................................................................... 29 

Requirements of digital relevance .............................................................................. 30 

Data ............................................................................................................................ 30 

Digital solutions ......................................................................................................... 31 

Interoperability assessment ........................................................................................ 31 

Measures to support digital implementation .............................................................. 32 

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1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Proposal  for  a  Council  Decision  laying  down  the  measures  necessary  for  the 
implementation of Protocol No 37 on the financial consequences of the expiry of the 
ECSC Treaty and on the Research Fund for Coal and Steel, annexed to the Treaty on 
European  Union  and  to  the  Treaty  for  the  Functioning  of  the  European  Union  and 
repealing Decision 2003/76/EC 

1.2. 

Policy area(s) concerned  

Research and Innovation  

1.3. 

Objective(s) 

1.3.1.  General objective(s) 

The  Research  Fund  for  Coal  and  Steel  (RFCS)  is  a  EU  funding  programme 
supporting  research  projects  in  the  coal  and  steel.  It  co-finances  through  grants 
research and innovation projects in the areas of coal and steel. 

In the current legal base, the fund supports projects at universities, research centres, 
and private companies. Research activities of the RFCS shall focus on technologies 
leading to near-zero-carbon steelmaking and research projects for managing the just 
transition  of  formerly  operating  coal  mines  or  coal  mines  in  the  process  of  closure 
and related infrastructure. 

Objectives of the reform  

The proposed reform aims to simplify and improve the RFCS functioning, making it 
more accessible and attractive to industry, including for SMEs, research centers and 
academia. Revised call conditions will help reduce investment risks for industry. The 
joint decarbonisation and competitiveness objectives set out in the Competitiveness 
Compass and the Clean Industrial  Deal  (together with  the specific targeted sectoral 
implementation  outlined  in  the  Steel  and  Metals  Action  Plan),  as  well  as  other 
relevant support initiatives targeting the transition of coal and steel sectors, can only 
be achieved if private capital is supported by a coherent and coordinated framework 
of public funding. 

1.3.2. 

Specific objective(s) 

Under the proposed reform of the RFCS, the Research Programme has the objective 
to support collaborative research in the coal and steel sectors, including research on 
dual use aspects. The Research Programme shall also provide support for clean steel 
breakthrough  technologies,  contributing  to  the  objectives  of  climate  neutrality  in 
Europe,  and  reinforcing  EU  strategic  autonomy  across  the  steel  value  chain.  In 
addition,  the  Research  Programme  shall  provide  support  for  research  projects  for 
managing  the  just  transition  of  formerly  operating  coal  mines  or  coal  mines  in  the 
process  of  closure  and  related  infrastructure  and  the  regions  in  which  they  are 
located.  The  Research  Programme  also  aims  at  promoting  the  valorisation  of 
research outcomes to enhance their market relevance and support their potential for 
scalable  deployment.  The  Research  Programme  aims  to  be  consistent  with  the 
political, scientific, and technological objectives of the Union, and shall complement 
the activities carried out in the Member States.  

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1.3.3.  Expected result(s) and impact 

The expected impacts of the reform are the following: 

-  The  increase  of  the  annual  assignments  would allow  for  more  ambitious  research 
projects,  which  could  help  reaching  climate  targets  by  2050  while  maintaining 
competitiveness.   

-  The  reform  would  also  allow  to  implement  the  revised  funding  rates  that  would 
address  stakeholders’  recommendations,  namely 
that  of  private  companies, 
universities  and  research  centres,  and  contribute  to  attract  more  investments  and  a 
wider participation to the RFCS programme.   

- The streamlining of research objectives, more adapted to current realities faced by 
the steel and coal sectors, would help to maximise the impact of the programme. The 
proposed  reform  also  introduces  a  requirement  to  conduct  deployment  and 
commercialisation  activities  in  Europe,  to  ensure  the  best  impact  of  research  and 
innovation projects for EU competitiveness. 

1.3.4. 

Indicators of performance 

The implementation of the RFCS programme is currently monitored by the European 
Research  Executive  Agency  (REA),  which  is  responsible  for  executing  the 
programme,  in  collaboration  with  the  Commission’s  Directorate-General  for 
Research  &  Innovation  (DG  RTD),  and  reporting  to  the  Commission  on  its 
implementation  status. Without  prejudging  the  upcoming  Cost-Benefit-Analysis  for 
the delegation of implementation tasks to Executive Agencies, under the future MFF, 
DG  RTD  envisages  to  delegate  this  task  to  an  Executive  Agency.  This  work  will 
require  regular  coordination  meetings  and  annual  reporting,  which  provides 
structured  feedback  on  how  funded  projects  contribute  to  broader  EU  policy 
objectives. Reporting will also inform about the attractiveness of the programme, by 
providing data on the evolution of number of proposals. Regular discussion with the 
advisory  committee  and  the  Coal  and  Steel  Committee  (COSCO)  will  also  help  to 
assess how the RFCS reform is addressing R&I needs, and recommendations made 
by stakeholders.  

The  technical  progress  of  specific  project  portfolios  under  the  RFCS  will  also 
continue  to  be  monitored  by  the  Coal  and  Steel  Technical  Groups  (‘the  Technical 
Groups’ or TGs), comprising one group for coal and five for steel. These groups are 
composed  of  recognised  high-level  experts  with  substantial  experience  in  their 
respective  sub-sectors.  Information  about  the  Technical  Groups  –  including  their 
membership, meeting agendas, and other details  – is made publicly available in the 
Register  of  Commission  Expert  Groups.  Management  of  the  TGs  is  currently 
entrusted  to  REA,  as  established  in  the  Memorandum  of  Understanding  between 
REA and DG RTD. 

The  Technical  Groups  provide  a  comprehensive  overview  of  technological 
developments within their specific domains. This assessment is based on information 
collected from  RFCS-funded projects,  primarily  through dedicated annual  meetings 
between the Technical Groups and project coordinators, currently organised by REA. 

Additionally, the Technical Groups are expected to produce the necessary content for 
REA  to  provide  the  annual  reports  offering  a  broader  portfolio  analysis  that  also 
considers  developments  in  related  areas  and  parallel  European  programmes.  This 

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ensures  a  more  integrated  understanding  of  progress  and  impact  across  the 
innovation ecosystem. 

1.4. 

The proposal/initiative relates to:  

 a new action  
 a new action following a pilot project / preparatory action23  

☒ the extension of an existing action  

☒ a merger or redirection of one or more actions towards another/a new action 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

The  challenges  that  the  coal  and  steel  sectors  are  facing  and  the  political 
prioritisation to jointly support decarbonisation and competitiveness, combined with 
the challenges of the financial regime of the RFCS, the limited effectiveness of the 
2021 reform and the recent feedback from stakeholders point to the need to revise the 
legal  base  of  the  RFCS  in  order  to  enhance  its  attractiveness  and  maximise  its 
impact. 

Not  only  the  call  conditions  require  a  revision,  especially  in  term  of  funding  rates, 
but  also  a  further  selling  of  the  fund’s  assets  is  necessary  in  order  to  continue 
providing  adequate  R&I  support  during 
to 
decarbonisation.  RFCS  is  an  industry-oriented  programme  that  has  supported 
research, development and innovation activities among the two communities of coal 
and  steel  since  2003.  It  is  important  that  the  fund  is  also  continuing  to  support  the 
industry now and in the short term to guarantee a rapid transition. 

transition  phase 

the  difficult 

Thus,  halting  the  current  regime  of  using  part  of  the  ECSC  assets  in  liquidation  to 
fund the programme (set to expire at the end of  2027) is unsustainable and will not 
allow for a meaningful programme if only funded by revenues and not assets.  

In this regard, there is a timely opportunity to revise the legal base of the programme 
and strengthen the role of research and innovation in effectively supporting the coal 
and  steel  sectors  during  their  transition.  The  current  call  conditions,  research 
objectives, and available budget are not leveraging enough R&I investment from the 
industry  and  do  not  offer  attractive  call  conditions  for  the  academia  nor  for  the 
industry. 

1.5.2.  Added  value  of  EU  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the  purposes  of  this  section  'added  value  of  EU  involvement'  is  the  value  resulting 
from  EU  action,  that  is  additional  to  the  value  that  would  have  been  otherwise 
created by Member States alone. 

As  the  RFCS  legal  basis  is  based  on  Protocol  37  annexed  to  the  Treaties,  it  falls 
under  the  competence  of  the  EU.  The  measures  implementing  the  Protocol  are 
established  in  a  Council  Decision  and  the  revision  of  which  belongs  to  the 
Commission’s exclusive right of initiative for legislative proposals. 

23 

As referred to in Article 58(2), point (a) or (b) of the Financial Regulation. 

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Over  the  years,  the  RFCS  Programme  has  provided  significant  advancements  for 
both sectors. These advancements are compiled in the recent reports from the RFCS 
technical  groups  for  coal  and  steel  and  are  based  on  strong  collaboration  between 
entities  from  different  Member  States  of  the  EU  and  from  different  organisation 
types.  For  steel  companies  and  universities  participating  in  research  projects,  the 
benefits ranged from cost reduction (resulting from savings in energy use and/or raw 
materials),  increased  productivity,  improved  sustainability  and  or  gaining  new 
market  share  through  the  development  of  innovative  steel  products.  For  the  coal 
sector, the RFCS contributed to improving health and safety in mines and minimising 
the impact of post-mining activities on the environment. 

The  RFCS  has  been  designed  to  be  an  industrial  research  programme,  which  is 
specifically  tailored  to  support  cross-border  collaboration,  and  at  the  same  time  it 
allows industry-academia collaboration with the aim to support dedicated industrial 
research.  

The proposed reform would strongly contribute to EU’s long-term policy objectives 
and  address  stakeholder  needs.  The  frontloading  of  investment  would  allow  for 
ambitious research projects, which could help reaching climate targets by 2050 while 
maintaining competitiveness. It would also allow to finance the revised funding rates 
that  would  address  stakeholders’  recommendations  and  contribute  to  attract  more 
investments and a wider participation to the RFCS programme. The streamlining of 
research objectives, more adapted to current realities faced by the sectors, would help 
to  maximise  the  impact  of  the  programme.  The  proposed  reform  also  introduces  a 
requirement  to  conduct  deployment  and  commercialisation  activities  in  Europe,  to 
ensure the best impact of R&I projects for EU competitiveness. 

Regarding  the  timing,  the  reform  would  ideally  take  effect  in  January  2027.  While 
this timing has not specifically been requested by stakeholders, it would offer more 
attractive call conditions earlier. It would correlate with a series of measures aiming 
at supporting energy intensive industries (for instance the Industrial Decarbonisation 
Accelerator  Act),  as  described  in  the  introduction.  Indeed,  this  reform  is  to  be 
understood  in  a  broader  policy  context  in  which  energy-intensive  sectors  are 
considered  key  actors  for  the  EU  industrial  competitiveness  and  decarbonisation 
strategy.   

1.5.3.  Lessons learned from similar experiences in the past 

The  findings  of  the  internal  evaluation  conducted  for  the  period  2021-2024 
highlighted  that  the  RFCS  has  proven  its  efficiency  via  the  yearly  annual  call  in 
supporting  coal  and  steel  sectors  through  excellent  collaborative  research  and 
involvement of the private sector. However, it showed that it has also failed to meet 
the expectations of the 2021 reform with respect to the Big Ticket calls, reflected by 
the  underspending  of  the  programme  The  programme  and  in  particular  the  Big 
Tickets calls in the present conditions are not attractive enough to yield large private 
investment necessary to meet current industrial decarbonisation objectives. 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 

other appropriate instruments 

The RFCS programme is subject to Protocol 37 of the Treaty on European Union, on 
the  financial  consequences  of  the  expiry  of  the  ECSC  treaty  and  on  the  Research 
fund for Coal and Steel. The Protocol explicitly says that the revenues of the assets 

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of  the  ECSC  in  liquidation  shall  be  used  exclusively  for  research,  outside  the 
research framework programme, in the sectors related to the coal and steel industry. 
However, synergies with the next Horizon Europe and the Competitiveness Fund can 
be established. The Research  Fund for Coal  and  Steel  can address  full spectrum of 
research challenges in the coal and steel sectors, as well as leverage additional public 
and private investments in R&I. Thus, it can contribute to further strengthening the 
European  research  and  innovation  landscape  and  accelerate  the  commercialisation 
and diffusion of innovation. 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

Funding will consist exclusively from the remaining assets of the European Coal and 
Steel Community in liquidation, as well as generated revenues from these assets. The 
ECSC was financed by (i) levies that most coal and steel producers had to pay based 
on their production and (ii) the contributions of the countries that joined the EU later 
on. These resources constitute the major part of the assets generated. The fund will 
continue to exist as such until the depletion of the assets. 

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1.6. 

Duration of the proposal/initiative and of its financial impact 

☒ limited duration  

–  ☒ in effect from 1 January 2027  

–  ☒ financial impact from 2027 to 2030 at the latest for commitment appropriations 

and from 2027 to 2034 for payment appropriations.  

 unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Method(s) of budget implementation planned  

☒ Direct management by the Commission 

–  ☒ by its departments, including by its staff in the Union delegations;  

–  ☒ by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated 

–   international organisations and their agencies (to be specified) 

–   the European Investment Bank and the European Investment Fund 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation 

–   public law bodies 

–   bodies governed by private law with a public service mission to the extent that 

they are provided with adequate financial guarantees 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  are  provided  with 
adequate financial guarantees 

–   bodies or persons entrusted with the implementation of specific actions in the 
common  foreign  and  security  policy  pursuant  to  Title  V  of  the  Treaty  on 
European Union, and identified in the relevant basic act 

–  bodies  established  in  a  Member  State,  governed  by  the  private  law  of  a 
Member  State  or  Union  law  and  eligible  to  be  entrusted,  in  accordance  with 
sector-specific  rules,  with  the  implementation  of  Union  funds  or  budgetary 
guarantees,  to  the extent that such bodies are controlled by public law bodies or 
by bodies governed by private law with a public service mission, and are provided 
with adequate financial guarantees in the form of joint and several liability by the 
controlling bodies or equivalent financial guarantees and which may be, for each 
action, limited to the maximum amount of the Union support. 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

The monitoring and reporting rules for this programme will follow the requirements 
laid down in the Financial Regulation and its Implementing Rules.  

The progress of the programme towards its objectives will be measured through the 
monitoring  conducted  by  the  European  Executive  Agency,  currently,  the  European 
Research Executive Agency (REA) with the support of the RFCS Technical Groups 
(5 for steel and 2 for coal).  

All data on the programme management processes (applications, success rates, time 
to grant, type of beneficiaries, etc.) will be collected and stored in the e-Grants Data 
Warehouse. 

2.2.  Management and control system(s)  

2.2.1. 

Justification  of  the  budget  implementation  method(s),  the  funding  implementation 
mechanism(s), the payment modalities and the control strategy proposed 

The  Research  Programme  of  the  Research  Fund  for  Coal  and  Steel  will  be 
implemented through direct  management  entrusted to  the bodies referred  in  Article 
62(1),  point  (a  )  of  Regulation  (EU,  Euratom)  EU,  Euratom)  2024/2509.  More 
specifically, the Commission will continue to rely to a large extent on the European 
Research  Executive  Agency  (REA),  established  in  accordance  with  the  Council 
Regulation 58/2003. The delegation of activities to this Executive Agency is subject 
to  a  mandatory  independent  ex-ante  Cost-Benefit  Analysis  and  the  Agency 
undergoes regular evaluations performed by external  experts. The above-mentioned 
Cost-Benefit Analysis will also consider the costs of control and supervision. Interim 
evaluations  conducted  in  2012  and  in  2015  confirm  the  high  efficiency  and  added 
value  of  the  Executive  Agencies  in  programme  implementation.  The  assets  of  the 
ECSC in liquidation and, on completion of the liquidation, the assets of the Research 
Fund  for  Coal  and  Steel  shall  be  managed  to  provide  annual  payments  within  the 
limits of the allocation in order to finance collaborative research in the sectors related 
to  the  coal  and  steel  industry.  The  annual  payments  shall  be  financed  by  the  net 
revenue  from  the  investments  and  by  the  proceeds  generated  by  selling  part  of  the 
assets of the ECSC in liquidation and, on completion of the liquidation, the assets of 
the Research Fund for Coal and Steel, up to the annual amount of payment credits set 
out by the designated service of the Commission. The financial guidelines have been 
reviewed or supplemented, if appropriate. To this end, the Commission shall reassess 
the  operation  and  effectiveness  of  the  financial  guidelines  and  shall  propose  any 
appropriate  amendments.  The  control  strategy  of  the  Research  Programme  of  the 
Research  Fund  for  Coal  and  Steel  will  be  aligned  with  the  one  for  Framework 
Programme  for  Research  &  Innovation.  It  will  therefore  benefit  from  all  the 
simplification  measures  introduced  under  Horizon  Europe.  Simplification  measures 
have  been  introduced  to  facilitate  the  implementation  of  the  Research  Programme 
Funding will be provided in the form of grants in accordance with Regulation (EU, 
Euratom)  2024/2509.  The  proposed  changes  in  the  funding  modalities  (lump  sum) 
will  ensure  alignment  with  those  of  the  EU  research  programme  and  contribute  to 
minimising the vulnerability to financial errors. The proposal will be implementing a 
single funding rate per action for all activities it funds. The maximum rate per action 
would be fixed in the call conditions. In the proposed reform, up to 100 % of total 

EN 

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eligible costs of an action under the Research Programme may be reimbursed, except 
for  for-profit  legal  entities  where  up  to  70%  of  the  total  eligible  costs  may  be 
reimbursed. By way of exception, SMEs shall be eligible for a funding rate of up to 
100% of the total eligible costs. The proposed reform foresees to establish the way 
indirect costs may be declared in the call conditions, which should indicate whether 
unit costs or lump sums can be applied. The main driver to adopt lump sum funding 
will not be reduction of the error rate, but the achievement of all the objectives of the 
programme. The programme will benefit from cost effective services provided in the 
framework  of  the  implementation  of  programmes  under  direct  management 
(centralised  evaluation  expert  management,  ex  post  audit,  IT,  etc).  The  control 
strategy  is  based  on  procedures  for  selecting  the  best  projects  and  translating  them 
into legal instruments: 

 - project and contract management throughout the lifetime of every project; ex-ante 
checks on 100 % of cost claims, 

- certificates  on the financial statements  above a certain  threshold, and certification 
on methodologies to calculate unit costs or ex-ante assessment on a voluntary basis;  

- ex post audits (random and risk-based) on a sample of paid claims for grants under 
actual costs;  

- regular project reviews on the technical implementation and results for all grants; 

- ex-post technical reviews on a sample of grants. 

This control strategy and approach has demonstrated its financial efficiency since the 
delegation of the programme to REA, as reported in the Agency’s triannual external 
evaluation.  Also, the  results from  the ex-post  controls  demonstrate that this  control 
strategy allows for maintaining a legality/regularity risk below the 2% threshold. 

The detected rate of error for the last two years of RFCS is 2.03 %, with a 'residual' 
error rate of 1.70 %, after taking account of all recoveries and corrections that have 
been or will be implemented. With the introduction of the lump sums and the SCOs, 
it is expected to maintain a detected error rate below 2%. 

Currently,  the  European  Research  Executive  Agency  (REA)  is  implementing  the 
RFCS. Without prejudging the upcoming Cost-Benefit-Analysis for the delegation of 
implementation  tasks  to  Executive  Agencies,  under  the  future  MFF,  DG  RTD 
envisages to delegate this task to an Executive Agency. 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

The implementation of RFCS calls will be managed under conditions and following 
business  processes  similar  to  the  management  of  the  Framework  Programme  for 
Research and  Innovation (FP). As  a result, risks  are similar to  the FP  and relate in 
particular to  achievements of the objective set in the positively evaluated proposals 
and ensuring legality/regularity in the disbursed grants for reimbursement of incurred 
costs.  

In so far as possible, REA will apply similar ex ante and ex post control strategies to 
ensure  legality/regularity  of  operations.  This  includes  a  financial  circuit  with 
counterweight where the central finance unit verifies all spending operations and an 
ex  post  control  strategy  agreed  with  RTD  and  implemented  in  close  collaboration 

EN 

10 

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with DG RTD’s ex post control unit. Error rates found through prior years’ ex post 
controls have demonstrated to be contained within the tolerable rate of error of 2%. 

2.2.3.  Estimation  and  justification  of  the  cost-effectiveness  of  the  controls  (ratio  between 
the control costs  and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure)  

The  narrower  estimate  of  the  costs  of  the  control  system  (evaluation,  selection, 
project  management,  ex-ante  and  ex-post  control)  are  in  the  range  of  2-4  %  across 
the Commission services responsible for the implementation of the Horizon Europe 
Framework Research Programme. It is estimated that the Research Programme of the 
Research Fund for Coal and Steel is in the same range of 2-4%. This is considered to 
be  a  reasonable  cost  in  the  light  of  the  efforts  needed  to  ensure  that  objectives  are 
achieved  and  the  number  of  transactions  involved.  The  expected  risk  of  error  at 
payment  for  grants  with  a  funding  model  based on  the  reimbursement  of  ineligible 
costs  is  2.0-3.0  %.  The  risk  of  error  at  closure  (after  the  effect  of  controls  and 
corrections) is below 2% for the Research Programme of the Research Fund for Coal 
and Steel. The expected risk of error for grants with a funding model based on lump 
sum funding is close to 0% (at payment and at closure). The overall expectation for 
error  rates  will  depend  on  the  balance  between  the  two  methods  of  funding 
(reimbursement of eligible costs and lump sums). The Commission aims to apply the 
lump sum funding model where appropriate. However, the main driver to adopt lump 
sum  funding  will  not  be  reduction  of  the  error  rate,  but  the  achievement  of  all  the 
objectives of the programme. 

2.3.  Measures to prevent fraud and irregularities  

Robust ex-ante controls applied to the entire expenditure and sample- and risk-based 
ex-post controls both contribute to detect and correct errors. 

The  services  charged  with  the  implementation  of  the  Research  Programme  budget 
are determined to fight against fraud at all stages of the grant management process. 
They  have  developed,  and  are  implementing,  common  and  sectorial  anti-fraud 
strategies,  including  an  enhanced  use  of  intelligence,  especially  using  advanced  IT 
tools, training and information for staff, and awareness-raising presentations towards 
grant beneficiaries and Technical groups. These efforts will continue and anti-fraud 
and  risk  assessment  activities  will  be  further  enhanced  thanks  to  the  current 
development  by  central  services  of  the  corporate  ARACHNE  risk-scoring  tool. 
Overall the measures proposed should continue to have a positive impact on the fight 
against  fraud,  that  will  continue  under  the  Research  Programme,  and  reinforced 
scientific  evaluation  and  control.  It  should  be  underlined  that  detected  fraud  has 
continuously  been  very  low  in  proportion  to  the  total  research  and  innovation 
expenditure,  nevertheless  the  services  charged  with  the  implementation  of  the 
Research  Programme  budget  remain  fully  committed  to  combat  it.  The  legislation 
will  ensure  that  audits,  reviews,  and  investigations  can  be  carried  out  by  the 
Commission services, including the European Anti-Fraud office (OLAF), as well as 
the European Public Prosecutor Office (EPPO), using the standard provisions already 
in use under the Research Programme. 

In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) 
No  883/2013  of  the  European  Parliament  and  of  the  Council  ,  Council  Regulation 
(Euratom, EC) No 2988/95 ,(Euratom, EC) No 2185/96  and  (EU) 2017/1939 , the 
financial interests of the Union are to be protected through proportionate measures, 
including the prevention, detection, correction and investigation of irregularities and 

EN 

11 

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fraud,  the  recovery  of  funds  lost,  wrongly  paid  or  incorrectly  used  and,  where 
appropriate,  the  imposition  of  administrative  sanctions.  In  particular,  in  accordance 
with  Regulation  (EU,  Euratom)  No  883/2013  and  (Euratom,  EC)  No  2185/96  the 
European Anti-Fraud Office (OLAF) may carry out investigations, including on-the-
spot  checks  and  inspections,  with  a  view  to  establishing  whether  there  has  been 
fraud,  corruption or any  other illegal  activity affecting the financial interests of the 
Union.  In  accordance  with  Regulation  (EU)  2017/1939,  the  European  Public 
Prosecutor's Office (EPPO) is competent to investigate and prosecute fraud and other 
criminal  offences  affecting  the  financial  interests  of  the  Union  as  provided  for  in 
Directive  (EU)  2017/1371  of  the  European  Parliament  and  of  the  Council.  In 
accordance  with  Regulation  (EU,  Euratom)  2024/2509,  any  person  or  entity 
receiving Union funds is to fully cooperate in the protection of the Union’s financial 
interests,  to  grant  the  necessary  rights  and  access  to  the  Commission,  OLAF,  the 
European Court of Auditors and, as appropriate, to the EPPO, and to ensure that any 
third parties involved in the implementation of Union funds grant equivalent rights. 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

•  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  

01 20 03 02 - Coal 

01 20 03 01 - Steel 

01 

01 

Diff./Non-
diff.24 

from 
EFTA 
countries
25 

from 
candidate 
countries 
and 
potential 
candidates
26 

From 
other 
third 
countries 

other assigned 
revenue 

Diff. 

Diff. 

NO 

NO 

NO 

YES 

NO 

NO 

NO 

YES 

•  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Heading of 
multiannual 
financial 
framework 

Number  

Diff./Non-
diff. 

from 
EFTA 
countries 

Contribution  

from 
candidate 
countries 
and 
potential 
candidates 

from 
other 
third 
countries 

other assigned 
revenue  

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

Diff./Non
-diff. 

Diff./Non
-diff. 

Diff./Non
-diff. 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

24 
25 
26 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

EN 

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3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–  ☒ The proposal/initiative requires the use of operational appropriations, as explained below 

3.2.1.1.  Appropriations from voted budget 

Heading of multiannual financial framework  

Number 

01 

EUR million (to three decimal places) 

DG: RTD 

Year 

2027 

Year 

2028 

Year 

2029 

Year 

2030 

Year 

2031 

Year 

2032 

Year 

2033 

Year 

2034 

TOTAL 
2028-2034 

GRAND 
TOTAL 

Operational appropriations  

Budget line 

Budget line 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes  
Budget line 

(3) 

TOTAL 
appropriations 
for DG RTD 

Commitments 

=1a+1b+3 

Payments 

=2a+2b+3 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 
0.000 

0.000 

0.000 
0.000 

0.000 

0.000 
0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 
0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 
0.000 

0.000 

EN 

14 

EN 

 
 
 
  
  
  
  
 
 
 
 
  
  
  
  
 
 
 
 
  
  
  
  
 
 
 
 
  
  
  
  
 
 
 
 
  
  
  
  
  
 
 
 
 
 
 
TOTAL 
operational 
appropriations  (including 
to 
contribution 
agency) 
decentralised 

Commitments 

Payments 

TOTAL 
an 
appropriations 
administrative  nature  financed  from  the 
envelope for specific programmes  

of 

(4) 

(5) 

(6) 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

2027 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

TOTAL 
MFF 
2028-
2034 

GRAND 
TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 
appropriations under 
HEADING 1 
of the multiannual 
financial framework 

Commitments 

=4+6 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Payments 

=5+6 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

0.000 

Year 

2027 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

0.000 

TOTAL 
MFF 
2028-
2034 

0.000 

0.000 

GRAND 
TOTAL 

Commitments 

operational 
(all 

TOTAL 
• 
appropriations 
operational headings) 
• 
an 
administrative  nature  financed  from  the 
envelope  for  specific  programmes  (all 
operational headings) 

appropriations 

TOTAL 

Payments 

of 

(4) 

(5) 

(6) 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL appropriations 
Under Heading 1 to 6 
of the multiannual financial 
framework 
(Reference amount) 

Commitments 

=4+6 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Payments 

=5+6 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Heading of multiannual financial  framework  

7 

Administrative expenditure 

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DG:RTD 

 Human resources  
 Other administrative expenditure  

TOTAL DG RTD 

Appropriations  

Year  Year  Year  Year 

Year 

Year 

Year 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

0.780  0.780  0.780  0.780 

0.050  0.050  0.050  0.050 

0.830  0.830  0.830  0.830 

0.101 

0.000 

0.101 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 
MFF 
2028-
2034 

3.221 

0.200 

3.421 

POST 
2034 

GRAND 
TOTAL 

0.000 

0.000 

3.221 

0.200 

3.421 

TOTAL appropriations under HEADING 7 of the 
multiannual financial framework  

(Total 
commitments 
= Total 
payments) 

0.830  0.830  0.830  0.830 

0.101 

0.000 

0.000 

3.421 

0.000 

3.421 

EUR million (to three decimal places) 

TOTAL appropriations under 
HEADINGS 1 to 7 

Commitments 

0.830  0.830  0.830  0.830  0.101  0.000  0.000 

3.421  0.000 

3.421 

of the multiannual financial framework   Payments 

0.830  0.830  0.830  0.830  0.101  0.000  0.000 

3.421  0.000 

3.421 

3.2.1.2.  Appropriations from external assigned revenues 

Heading of multiannual financial framework  

01 

Research and Innovation 

EUR million (to three decimal places) 

DG: RTD 

Year 

Year 

Year 

Year 

Year 

2027 

2028 

2029 

2030 

2031 

Year  Year  Year  TOTAL 
MFF  
2032 
2028-
2034 

2033 

2034 

TOTA
L MFF 
2021-
2027 

GRAN
D 
TOTA
L 

EN 

16 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operational appropriations  

Budget line : 01 20 03 01 and 01 20 
03 02 

Commitmen
ts 

(1a) 

200.000  

200.000  

200.000  

200.000  

Payments 

(2a) 

112.000  

227.000  

273.000  

216.000  

Budget line 

Commitmen
ts 

Payments 

(1b) 

(2b) 

Appropriations of an administrative nature financed from the envelope of specific programmes  
Budget line 

(3) 

196.00
0 

39.00
0 

40.00
0 

25.00
0 

600.000 

1.016.00
0 
0.000 

200.00
0 
112.00
0 
0.000 

0.000 

0.000 

0.000 

TOTAL appropriations 
for DG RTD 

Commitmen
ts 

Payments 

=1a+1b+
3 

=2a+2b+
3 

200.00
0 
112.00
0 

200.00
0 
227.00
0 

200.00
0 
273.00
0 

200.00
0 
216.00
0 

0.000 

0.000 

0.000 

0.000 

600.000 

196.00
0 

39.00
0 

40.00
0 

25.00
0 

1016.00
0 

200.00
0 
112.00
0 

800.000 

1128.00
0 

0.000 

0.000 

0.000 

80.000 

1128.00
0 

TOTAL operational 
appropriations 

Commitments 

Payments 

Total appropriations of an administrative 
nature  financed  from  the  envelope  for 
specific programmes 

(4) 

(5) 

(6) 

200.000  200.000  200.000  200.000 
112.000  227.000  273.000  216.000 

0.000 
196.000 

0.000 
39.000 

0.000 
40.000 

600.000 
0.000 
25.000  1016.000 

200.000 
800.000 
112.000  1128.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Commitments 

=4+6 

200.000  200.000  200.000  200.000 

0.000 

0.000 

0.000 

0.000 

600.000 

200.000 

800.000 

Payments 

=5+6 

112.000  227.000  273.000  216.000 

196.000 

39.000 

40.000 

25.000  1016.000 

112.000  1128.000 

TOTAL 
appropriations 
under HEADING 
1 of the 
multiannual 
financial 
framework 

Heading of multiannual financial framework  

7 

‘Administrative expenditure’  

DG: RTD 

Year 

Year 

Year 

Year 

Year 

Year 

Year  

Year 
2034 

GRAND 
TOTAL 

EUR million (to three decimal places) 

EN 

17 

EN 

 
 
 
 
 
 
  
  
  
  
 
 
 
 
  
  
  
  
 
 
 
 
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
2027 

2028 

2029 

2030 

2031 

2032 

2033 

TOTAL 
MFF 
2028-
2034 

TOTAL 
MFF  
2021-
2027 

 Human resources  
 Other administrative expenditure  
TOTAL DG <…….> 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Appropriations  

0.000 

0.000 

0.000 

0.000 

TOTAL appropriations under HEADING 7 of 
the multiannual financial framework  

(Total 
commitments 
= Total 
payments) 

0.000 

0.000 

0.000  0.000 

0.000 

0.000 

0.000 

0.000 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

2027 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

EUR million (to three decimal places) 

TOTAL 
MFF 
2028-2034 

TOTAL 
MFF 
2021-
2027 

GRAND 
TOTAL 

TOTAL appropriations 
under HEADINGS 1 to 7 

of the multiannual financial 
framework  

Commitments  200.000  200.000 

0.000 

0.000 

0.00 

0.00 

0.00 

0.00 

600.000 

200.00 

800.000 

Payments 

112.000  227.000  273.000  216.000  196.000  39.000  40.000  25.000  1016.000  112.000  1128.000 

3.2.2.  Estimated output funded from operational appropriations (not to be completed for decentralised agencies) 

Indicate 
objectives and 
outputs  

Year  
2024 

Year  
2025 

Year  
2026 

Year  
2027 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

Enter as many years as necessary to show the 
duration of the impact (see Section1.6) 

TOTAL 

EN 

18 

EN 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost 

o
N

Cost 

Total 
No 

Total 
cost 

 

Type27 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 128… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

27 
28 

Outputs are products and services to be supplied (e.g. number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.3.2. ‘Specific objective(s)’  

EN 

19 

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3.2.3. 

Summary of estimated impact on administrative appropriations  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–  ☒ The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below 

3.2.3.1. Appropriations from voted budget 

VOTED 
APPROPRIATIONS 

HEADING 7 

Year  Year  Year  Year  Year  Year  Year  TOTAL 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

2028-
2034 

Post 
2024 

GRAND 
TOTAL 

Human resources  

0.780 

0.780 

0.780 

0.780 

0.101 

0.000 

0.000 

3.221 

0.000 

Other administrative expenditure  

0.050 

0.050 

0.050 

0.050 

0.000 

0.000 

0.000 

0.200 

0.000 

Subtotal HEADING 7 

0.830 

0.830 

0.830 

0.830 

0.101 

0.000 

0.000 

3.421 

0.000 

Outside HEADING 7 

Human resources  

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Other expenditure of an 
administrative nature 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL HEADING 7 and 
outside HEADING 7 

0.830 

0.830 

0.830 

0.830 

0.101 

0.000 

0.000 

3.421 

0.000 

3.2.4.  Estimated requirements of human resources  

3.221 

0.200 

3.421 

0.000 

0.000 

0.000 

3.421 

–    The proposal/initiative does not require the use of human resources  

–  ☒ The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below 

3.2.4.1.  Financed from voted budget 

Estimate to be expressed in full-time equivalent units (FTEs) 

VOTED APPROPRIATIONS 

Year  Year  Year  Year  Year  Year  Year  POST 

2028 

2029 

2030 

2031 

2032  2033  2034 

2034 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s 

Representation Offices) 

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

• External staff (in FTEs) 

20 02 01 (AC, END from the ‘global envelope’) 
20 02 03 (AC, AL, END and JPD in the EU 

Delegations) 
Admin. Support 
line 
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

01 01 01 02 (AC, END - Indirect research) 

 01 01 01 12 (AC, END - Direct research) 

Other budget lines (specify) - Heading 7 

2 

0 

0 

0 

0 

4 

0 

0 

0 

0 

0 

0 

2 

0 

0 

0 

0 

4 

0 

0 

0 

0 

0 

0 

20 

EN 

2 

0 

0 

0 

0 

4 

0 

0 

0 

0 

0 

0 

2 

0 

0 

0 

0 

4 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

  EN 

 
  
 
 
 
 
 
 
 
 
 
Other budget lines (specify) - Outside Heading 7 

TOTAL 

0 

6 

0 

6 

0 

6 

0 

6 

0 

1 

0 

0 

0 

0 

0 

0 

The  number  of  FTE  are  indicative  and  do  not  prejudge  the  outcome  of  the  ongoing 
negotiations  on  the  next  MFF.  Moreover,  the  additional  resources  for  the  Commission  are 
envisaged for delegation to an Executive Agency under the future MFF, without prejudging 
the upcoming Cost-Benefit Analysis for the delegation of implementation tasks to Executive 
Agencies.  

The staff required to implement the proposal (in FTEs):  

To be covered by 
current staff 
available in the 
Commission 
services  

Exceptional additional staff* 

Establishment 
plan posts 

External 
staff 
(CA, SNEs, INT) 

To be financed 
under Heading 7 
or Research 

To be financed 
from BA line 

To be financed 
from fees 

2 

4 

N/A 

N/A 

N/A 

N/A 

Description of tasks to be carried out by: 

Officials and temporary staff 

External staff 

Two  extra  FTE  will  be  needed  for  managing  the  political  implementation  of  the 
reform, and to execute the reform and oversee the increased financial and programme 
management  activities,  in  addition  to  the  4  officials  and  temporary  staff  currently 
allocated to RFCS. This reinforcement is temporary and can be reassigned after 2031. 

The  reform  of  the  RFCS  will  lead  to  an  80%  increase  in  annual  allocations  and  to 
revised  call  conditions  for  the  years  2027  until  2030  included.  These  will  result  in a 
higher workload for the RFCS unit in launching the calls and carrying out evaluations. 
The introduction of dual use in the programme will further increase the workload.  An 
additional 4 FTE as contract agents are needed for positions of programme managers 
and  project  officers,  in  addition  to  the  16  currently  allocated  to  RFCS.  The  total 
allocation  needed  will  progressively  diminish  after  2031  as  no  further  calls  are 
launched and projects reach completion. 

3.2.5.  Overview of estimated impact on digital technology-related investments 

Compulsory: the best estimate of the digital technology-related investments entailed 
by the proposal/initiative should be included in the table below.  

Exceptionally,  when  required  for  the  implementation  of  the  proposal/initiative,  the 
appropriations under Heading 7 should be presented in the designated line.  

The appropriations under Headings 1-6 should be reflected as “Policy IT expenditure 
on operational programmes”. This expenditure refers to the operational budget to be 

EN 

21 

  EN 

 
 
 
 
 
 
 
 
used to re-use/ buy/ develop IT platforms/ tools directly linked to the implementation 
of the initiative and their associated investments (e.g. licences, studies, data storage 
etc).  The  information  provided  in  this  table  should  be  consistent  with  details 
presented under Section 4 “Digital dimensions”. 

TOTAL Digital and IT appropriations 

Year 

Year 

Year 

Year 

Year 

Year 

Year 

2028 

2029 

2030 

2031 

2032 

2033 

2034 

TOTAL 
MFF 
2028-
2034 

IT expenditure (corporate)  

Subtotal HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Policy IT expenditure on operational 
programmes 

0.520 

0.531 

0.541 

0.552 

0.563 

0.574 

0.586 

3.867 

Subtotal outside HEADING 7 

0.520 

0.531 

0.541 

0.552 

0.563 

0.574 

0.586 

3.867 

TOTAL 

0.520 

0.531 

0.541 

0.552 

0.563 

0.574 

0.586 

3.867 

3.2.6.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

–  ☒ can be fully financed through redeployment within the relevant heading of the 

multiannual financial framework (MFF) 

–    requires use of the unallocated margin under the relevant heading of the MFF 

and/or use of the special instruments as defined in the MFF Regulation 

–    requires a revision of the MFF 

3.2.7.  Third-party contributions  

The proposal/initiative: 

–  ☒ does not provide for co-financing by third parties 

–    provides for the co-financing by third parties estimated below: 

3.3. 

Estimated impact on revenue  

–  ☒ The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

– 

– 

– 

 

 

on own resources  

on other revenue 

  please indicate, if the revenue is assigned to expenditure lines 

In  line  with  article  21.2(b)  of  the  Financial  Regulation,  the  appropriations  related  to  the 
revenue  generated  by  the  Research  Fund  for  Coal  and  Steel  should  be  considered  external 
assigned revenue. Budget lines 01 20 03 02 (Coal) and 01 20 03 01 (Steel) 

EN 

22 

  EN 

 
 
 
 
 
 
 
 
 
 
 
4. 

DIGITAL DIMENSIONS 

The  Research  Fund  for  Coal  and  Steel  uses  the  corporate  tools  described  in  the 
Legal, Financial and Digital Statement of Horizon Europe. 

EN 

23 

  EN