On 6 April, the European Commission adopted the Seventh Research Framework Programme (FP7), set to run 2007–2013 (http://europa.eu.int/rapid/pressReleasesAction.do). After a significant consultation exercise last year, the thematic priorities of the previous framework programme remain largely unchanged. Although there is a continued emphasis on support for research that is relevant to industry and for trans-European cooperation, two changes stand out. First, the European Research Council (ERC) has finally been given the go-ahead as an autonomous institution, with the stated aim of enhancing the quality of basic research. Second, there is an explicit emphasis on scientific excellence achieved through competition and peer review. However, this apparent shift to a more merit-based awards policy is dampened by the fact that of the overall budget of almost €68 billion, only one-fifth (€10.5 billion) is earmarked for distribution by the ERC, compared with €39.2 billion for cooperative research initiatives. Whereas the total budget has doubled, the actual rise is not as pronounced, because the money is spread over seven years, rather than four, as previously. Nevertheless, this extended funding period provides much needed continuity for large multinational research programmes.

Of course, the proposal is yet to be debated by the council of member states and the European Parliament. Although the proposal is likely to pass at parliament level, a concern is that several council members, particularly those facing federal deficits, will erode the budget — either directly, or by reducing domestic research spending. The proposed European research budget represents less than 10% of R&D spending within the European Union (or 0.1% of EU GDP) and it would be lamentable if this programme, which is clearly heading in the right direction on several fronts, had the wind taken out of its sails. To ensure the long-term viability of Europe as a knowledge-based economy, spending on basic research must continue to grow in real terms.