Every seven years, the European Commission sets its Multiannual Financial Framework, a long-term plan that goes well beyond budgeting to define Europe’s strategic priorities. For the 2021 to 2027 period, the EU has committed €1,824.3 billion, combining the Multiannual Financial Framework (€1,074.3 billion) with the Next Generation EU recovery instrument (€750 billion). The objective is clear: to build a stronger, greener and more digital Europe.

EU funding is delivered through three mechanisms: centralised, decentralised and hybrid funds. While decentralised schemes are managed locally, centralised funds are administered directly by the European Commission and focus on challenges that extend beyond national borders. Their role is to foster collaboration, accelerate innovation and strengthen Europe’s global competitiveness.

Why centralised funds matter

Unlike local schemes, centralised programmes require cross-border partnerships and strong alignment with EU priorities. This is not simply a procedural requirement, but a deliberate policy tool designed to avoid fragmentation and amplify impact. By pooling expertise and resources across Member States, centralised funds create economies of scale and drive systemic change in key areas such as climate action, digital transformation and health resilience.

Key programmes shaping Europe’s future

  • Horizon Europe (€100 billion), the EU’s flagship research and innovation programme, supporting breakthroughs across health, climate and technology.
  • Digital Europe, which invests in artificial intelligence, cybersecurity, supercomputing and advanced digital skills to strengthen Europe’s technological capability.
  • Erasmus+ (€30 billion), enhancing education, training and mobility to develop a skilled and connected workforce.
  • Creative Europe (€1.85 billion), which supports cultural diversity and the creative sectors.
  • EU4Health (€9.4 billion) and LIFE (€5.45 billion), which reinforce health resilience and environmental sustainability.

Centralised funds are more than financial instruments; they are strategic levers that shape Europe’s innovation ecosystem. For businesses, public bodies and research institutions, these programmes provide opportunities to scale initiatives internationally, access cutting-edge technologies and participate in shaping EU policy directions. Most programmes require a consortium of diverse organisations from several Member States, although certain actions within the Digital Europe Programme allow all consortium members to be based in Malta.

Applying for centralised EU funds can enable organisations to scale innovation and expand internationally, particularly as these programmes address cross-border challenges and align with Europe’s long term strategic goals. Participation provides access to substantial multiannual budgets, encourages collaboration with high-calibre partners and opens doors to emerging technologies in fields such as artificial intelligence, sustainability and health. Centralised funds are also excluded from De Minimis rules, which means consortia may benefit from funding beyond the usual €300,000 threshold over three years.

Eligible costs vary by programme, but often include salary costs, tangible and intangible investments such as software, marketing and communication expenses, third-party experts, project management costs and other project-related expenditure. These are typically co-financed at different rates depending on the programme’s objectives.

ProgrammeEU Contribution RateNotes
Horizon EuropeUp to 100% for research actions; 70% for innovation actions (except non-profits, which can get 100%)Covers direct costs plus 25% flat-rate for indirect costs.
Digital Europe ProgrammeAround 50% – 75%, depending on the actionFocus on digital infrastructure, skills, and deployment.
LIFE Programme (Environment & Climate)60% for most projects; up to 75% for priority habitats/speciesSupports environmental innovation.
Cohesion Policy Funds (ERDF, ESF+, CF)40% – 85%, depending on the region’s development levelLess-developed regions can receive higher rates (up to 85%).
Creative EuropeTypically 50% – 60%Higher rates are possible for cross-border cooperation.
Erasmus+Generally, 100% of the eligible mobility costsFocused on education, training, youth, and sport.

By joining international consortia, organisations not only distribute costs and risks, but also gain visibility, credibility and influence in shaping Europe’s policy landscape. For entities aiming to innovate and expand beyond national borders, centralised EU funds have become an essential strategic tool. They offer a pathway to growth, collaboration and long-term competitiveness in an increasingly interconnected world.

If you are planning to invest in a project that requires coordination with local or international partners, our team can guide you in identifying the most suitable programme and navigating the funding process to maximise the support available.

Article written by Theodora Debono, Consultant and Sabrina Sacco, Intern - Finance & Deals