The European Commission launced a proposal for simplifying contracts and grants procedures on 12 October 2005.

The goal of the new proposal is, according to the Commission, to ’simplify significantly the administrative burden for companies, SMEs and beneficiaries of EU grants while maintaining a high level of protection of the community funds’. As part of this initiative particular attention will be paid to small organisations and projects.

The background for the proposal is that many SMEs, organisations and NGOs are frequently discouraged by the large amount of paper work required when applying for EU funding. The new proposalaims not only to lead to less paper work for beneficiaries of EU grants but also to easier and faster administration on the part of the EU insitutions.

Whilst simplification is the key issue in the proposals measures will be made to ensure the highest standards against fraud. If everything goes according to plan the new rules will be in place by 2007.

Last modified on October 28 2005.