Horizon Europe 2025: EU invests over €52 billion in research, innovation and competitiveness

The European Commission’s annual report highlights strong demand for EU funding and the growing importance of research and innovation for Europe’s competitiveness. For universities, research institutions, businesses and innovative SMEs, the report makes it clear: Horizon Europe remains the European Union’s key instrument for promoting excellent research and strengthening Europe’s innovative capacity.

The European Commission has published its annual report on the European Union’s activities in the field of research and innovation (R&I) and on the implementation of Horizon Europe. The report highlights the central role of the EU Framework Programme in strengthening competitiveness, technological sovereignty and sustainable growth in Europe.

More than €52 billion for research and innovation projects

By the end of 2025, around €52.8 billion had been approved under Horizon Europe for a total of 19,456 funded projects. Demand for EU funding remains undiminished: between 2021 and 2025, almost 149,000 eligible project applications were received. The success rate stood at just 14 per cent, which illustrates the high level of competition within the programme.

Particularly high demand was seen for the funding lines of the European Research Council (ERC), the Marie Skłodowska-Curie Actions (MSCA) and the clusters on health, digitalisation, climate, energy and mobility.

Research as a driver of Europe’s competitiveness

In 2025, research and innovation were at the heart of numerous European strategies. These included the “Choose Europe” initiative to attract top international researchers, the EU strategy for start-ups and scale-ups, and new initiatives in the fields of artificial intelligence, quantum technologies, biotechnology and defence innovation.

The green transition was also significantly supported by research and innovation measures. The European Commission highlights contributions to decarbonisation, the circular economy, water resilience, biodiversity, and climate-friendly energy and mobility solutions.

Simplifications for applicants

A key focus in 2025 was on simplifying Horizon Europe. This includes the increased use of lump-sum grants, shorter call texts, simplified application procedures and two-stage evaluation processes. The aim is to make it easier for SMEs, start-ups and newcomers in particular to access EU funding.

International cooperation continues to grow

The international dimension of Horizon Europe was also expanded. In 2025, the programme had 22 associated countries. New additions included Switzerland and Egypt, whilst the Republic of Korea joined the second programme pillar. In total, operational contributions from the associated countries amounted to 3.3 billion euros.

Outlook: New innovation initiatives from 2026

The European Commission has announced further measures for 2026 to strengthen the European Research and Innovation Area. Plans include a European Innovation Act, a European Research Area Act, a multi-billion-euro Scaleup Europe Fund, and new initiatives in the fields of artificial intelligence, battery technologies, health, climate and biodiversity.