Interim and final payments are made subject to the achievements of the project. It is important to report on the progress of your project in accordance with the reporting schedule set out in the grant agreement. Grants are usually paid in several instalments over the life of the project. Once you have signed the grant agreement, you will receive pre-financing which can be followed by one or more interim payments. You will receive the balance after the completion of the project. If your proposal is accepted, you will be asked to sign a detailed contract called a “grant agreement”. signature of a grant agreement and the way in which payments are made. A grant is a direct financial contribution from the budget of the European Union to finance: – either an action intended to contribute to the achievement of an objective forming part of a European Union policy; – the functioning of a body pursuing an objective of general European interest or pursuing an objective which is part of a policy of the European Union. In other words, it is a non-commercial payment made by the European Commission, as contracting authority, to a given beneficiary for the implementation of an action intended to contribute to the achievement of an objective which is part of a European Union policy.
A body pursuing an objective of general European interest is a European body dealing with education, training, information, innovation or research and studies on European policies, all activities contributing to the promotion of European citizenship or human rights, or a European standardisation body; or a European network representing non-profit organisations operating in the Member States or candidate countries and promoting principles and policies compatible with the objectives of the Treaties. The body signing a grant contract is designated as a beneficiary and should not be confused with the final beneficiary of the project or the target group. A grant contract can be distinguished in several respects from a purchase contract: a beneficiary is awarded for a project proposed to the services of the European Commission by a potential beneficiary (an “applicant”) and which falls within the normal framework of the beneficiary`s activities. This contrasts with a purchase contract in which the contracting authority sets out the specifications for a project it wishes to implement. A contract should be considered as a purchase contract and not as a grant contract where its subject matter relates primarily or subsequently to the management functions of the European Commission. A beneficiary of the financial assistance is solely or jointly responsible for carrying out the operation and retains ownership of its results. On the other hand, in the context of a purchase contract, it is the European Commission that owns the results of the project and closely monitors its implementation. A beneficiary or contractor shall generally contribute to the financing of the action, except where full Community funding is essential for the implementation of the action.
However, in the case of purchase contracts, the contractor usually does not contribute financially. A grant can only be awarded for a project whose direct objective is not commercial. Under no circumstances shall the subsidy generate profits, with the exception of measures aimed at increasing the financial capacity of a beneficiary or generating income in the context of external measures. . . .