The European Union and Australia signed an agreement in Brussels on Thursday paving the way for Australian researchers and organisations to join and lead projects under Horizon Europe, the EU’s flagship research and innovation programme. The agreement was signed by Commissioner for Startups, Research and Innovation Ekaterina Zaharieva and Australia’s Minister for Industry and Innovation and Minister for Science, Tim Ayres. Australia becomes the 24th country associated with Horizon Europe, and its association covers Pillar II, the collaborative research pillar covering health, climate, energy, digital technologies and space.
The practical change is about money and leadership. Australian organisations can currently join many Horizon Europe projects but generally must finance their own participation. From January 1, 2027, transitional arrangements will allow Australian entities to apply to Pillar II calls, be evaluated as prospective beneficiaries, receive funding when successful and coordinate and lead international consortia. The association process is expected to be formally completed by mid 2027, following parliamentary scrutiny in Australia. Negotiations on the association were concluded in June 2026.
The programme is the largest pooled research scheme of its kind, with a total budget of about 95.5 billion euros for 2021 to 2027, of which Pillar II accounts for more than 53 billion euros across six clusters: health; culture, creativity and inclusive society; civil security; digital, industry and space; climate, energy and mobility; and food, bioeconomy, natural resources, agriculture and environment. Australia’s association contribution is expected to be approximately 40 million Australian dollars for 2027, and the Group of Eight universities have committed to contribute up to half of it, capped at 20 million dollars, as a one off co investment that buys no preferential access to the competitive funding.
The signing lands inside a wider EU Australia negotiation that is not moving as smoothly. The association was announced in Canberra during Commission President Ursula von der Leyen’s visit and sits alongside a defence partnership agreed in March and a free trade agreement that remains stalled in the Australian Senate, where the Nationals oppose its climate provisions. Ayres used the Brussels trip to press the Coalition to drop that opposition. For the research sector, the 2027 participation year is a bridge: the current Horizon framework ends in late 2027, and a strong first year positions Australia for the successor framework that begins in 2028.