We continue the analysis of the Brexit process begun in a previous post with an interesting and timely insight: what, operationally, will be the effects of Brexit on European projects?
The main distinction in answering the question is between an exit without an agreement between the UK and the EU (“no deal”) and an exit governed by an agreement (at the moment, we consider the most recent version of the October 2019 agreement).
The case of Brexit with “no deal”
It is most likely that British organizations will be treated as “third country” organizations as early as the projects currently underway or being submitted.
A UK lead entity therefore risks becoming ineligible for funding and grants under community programs, creating potential problems for the entire partnership.
Similar problems could exist for partnerships that include a British entity, particularly where program rules limit participation to EU member states or require a minimum number of member state organizations to participate. In this sense, the rules could change depending on the programs and individual calls.
However, to deal with this eventuality and for projects already underway, the British government has established a guarantee fund to cover European funding that would be lost with Brexit in the event of a “no deal.”
Aspecial page lists the government departments responsible for continuity of funding for various community programs and the contacts (or portals) for beneficiaries. Specific pages are devoted to the registration of those potentially interested in this guarantee fund: for Horizon2020, for the Cooperation programs with third countries, for other Community Programs, for Territorial Cooperation Programs, for Structural Funds(ESF and ERDF) and for funding in the agricultural sector.
We also recommend a page devoted to the possible effects of Brexit on Horizon2020 projects: useful (in addition to those interested in this program) as a practical example of the criteria that could be applied to any funding line.
The case of “regulated” Brexit
Referring to the most recent version of the agreement, the answer is simpler: in principle, British organizations will be able to continue to participate normally in projects in the current programming period (2014-2020), while they will have the status of “third country organizations” for projects in the next programming period(2021-2027).
We cite, in this regard, the following articles of the said agreement:
- Article 137 “[…] Union programs and actions committed under the Multiannual Financial Framework for the period 2014-2020 (“MFF 2014-2020″) or the previous Financial Perspective, shall be executed in 2019 and 2020 as far as the United Kingdom is concerned under the applicable Union law.”
- Article 132 “[…] the United Kingdom shall be considered a third country for the purpose of the implementation of Union activities and programs committed under the multiannual financial framework that applies from 2021.”
It is likely that the general provisions of the next programming period, as well as those specific to the relevant programs and calls, will contain clearer guidance regarding the eligibility of British organizations.
Specific collaboration arrangements could then be made with the UK, similar to those that allow participation in some European Programs by EFTA, EEA and pre-accession countries.
In any case, as things stand, the European Commission’s guidance confirms that no discrimination is made in the evaluation of proposals on the basis of the (British) nationality of the proponents and Brexit-related considerations.
Certainly all of this complicates the work of those who work and develop projects with UK organizations… but we hope this explanation will be reassuring and helpful in overcoming the initial hurdles!
Guide to Europlanning will keep you up to date on upcoming Brexit developments in the context of participating in calls for EU projects!
