A Szczecin-based association lost its legal battle Wednesday to retain a €135,000 research grant from the EU’s Horizon 2020 program.
EU Court Rejects Association’s Appeal
The EU Court dismissed the lawsuit filed by the “Education, Science, Culture” Association of Szczecin, which sought to keep the Horizon 2020 grant. The court sided with EU auditors who demanded the repayment of €135,000.
Grant Details and Purpose
The Szczecin-based NGO, focused on social development, received the grant for a research project under the Horizon 2020 program. The funding covered, among other things, the costs of researcher salaries, with a maximum grant amount of €630,000.
Audit Findings and Repayment Demand
Following an audit, the European Research Executive Agency determined that a portion of the funds were spent improperly and requested the €135,000 repayment. Auditors noted the association could not provide evidence of active research participation by the researchers whose work was funded by the grant.
Association’s Legal Challenge
The association appealed to the EU Court (a lower instance of the Court of Justice of the EU in Luxembourg) seeking to annul, invalidate, or render ineffective the repayment request. The Szczecin organization argued the EU agency failed to examine the legal relationships between the beneficiary and the scientists, or clearly identify which regulations were violated.
Court Ruling and Financial Implications
However, the EU Court on Wednesday dismissed the lawsuit and ordered the association to pay the agency €135,000 plus late payment interest. The association will also be responsible for covering the legal costs.
Principle of Actual Expenditure
The court’s ruling states that the European Union can only fund actually incurred expenses. Simply demonstrating project completion is insufficient justification for a grant; proof of declared expenditure is also required.