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1. The financial envelope for the implementation of the Programme for the period from 1 January 2021 to 31 December 2027 shall be EUR 86 123 000 000 in current prices for the specific programme referred to in point (a) of Article 1(2) and for the EIT and EUR 9 453 000 000 in current prices for the specific programme referred to in point (c) of Article 1(2).

2. The indicative distribution of the amount referred to in paragraph 1 for the specific programme referred to in point (a) of Article 1(2) and for the EIT shall be:

(a) EUR 23 546 000 000 for Pillar I 'Excellent Science' for the period 2021 to 2027, of which:

(i) EUR 15 027 000 000 for the ERC;

(ii) EUR 6 333 000 000 for MSCA;

(iii) EUR 2 186 000 000 for research infrastructures;

(b) EUR 47 428 000 000 for Pillar II 'Global Challenges and European Industrial Competitiveness' for the period 2021 to 2027, of which:

(i) EUR 6 893 000 000 for cluster 'Health';

(ii) EUR 1 386 000 000 for cluster 'Culture, Creativity and Inclusive Society';

(iii) EUR 1 303 000 000 for cluster 'Civil Security for Society';

(iv) EUR 13 462 000 000 for cluster 'Digital, Industry and Space';

(v) EUR 13 462 000 000 for cluster 'Climate, Energy and Mobility';

(vi) EUR 8 952 000 000 for cluster 'Food, Bioeconomy, Natural Resources, Agriculture and Environment';

(vii) EUR 1 970 000 000 for the non-nuclear direct actions of the JRC;

(c) EUR 11 937 000 000 for Pillar III 'Innovative Europe' for the period 2021 to 2027, of which:

(i) EUR 8 752 000 000 for the EIC;

(ii) EUR 459 000 000 for European innovation ecosystems;

(iii) EUR 2 726 000 000 for the EIT;

(d) EUR 3 212 000 000 for Part 'Widening Participation and Strengthening the ERA' for the period 2021 to 2027, of which:

(i) EUR 2 842 000 000 for 'widening participation and spreading excellence';

(ii) EUR 370 000 000 for 'reforming and enhancing the European R&I System'.

3. As a result of the Programme specific adjustment provided for in Article 5 of Regulation (EU, Euratom) 2020/2093 the amount referred to in the paragraph 1 for the specific programme referred to in point (a) of Article 1(2) of this Regulation and for the EIT shall be increased by an additional allocation of EUR 3 000 000 000 in constant 2018 prices as specified in Annex II to Regulation (EU, Euratom) 2020/2093.

4. The indicative distribution of the amount referred to in paragraph 3 shall be as follows:

(a) EUR 1 286 000 000 in constant 2018 prices for Pillar I 'Excellent Science', of which:

(i) EUR 857 000 000 in constant 2018 prices for the ERC;

(ii) EUR 236 000 000 in constant 2018 prices for MSCA;

(iii) EUR 193 000 000 in constant 2018 prices for research infrastructures;

(b) EUR 1 286 000 000 in constant 2018 prices for Pillar II 'Global Challenges and European Industrial Competitiveness', of which:

(i) EUR 686 000 000 in constant 2018 prices for cluster 'Culture, Creativity and Inclusive Society';

(ii) EUR 257 000 000 in constant 2018 prices for cluster 'Civil Security for Society';

(iii) EUR 171 000 000 in constant 2018 prices for cluster 'Digital, and Industry and Space';

(iv) EUR 171 000 000 in constant 2018 prices for cluster 'Climate, Energy and Mobility';

(c) EUR 270 000 000 in constant 2018 prices for Pillar III 'Innovative Europe', of which:

(i) EUR 60 000 000 in constant 2018 prices for European innovation ecosystems;

(ii) EUR 210 000 000 in constant 2018 prices for the EIT;

(d) EUR 159 000 000 in constant 2018 prices for Part 'Widening Participation and Strengthening the ERA', of which:

(i) EUR 99 000 000 in constant 2018 prices for 'widening participation and spreading sharing excellence';

(ii) EUR 60 000 000 in constant 2018 prices for 'reforming and enhancing the European R&I System'.

5. In order to respond to unforeseen situations or to new developments and needs, the Commission may, within the annual budgetary procedure, deviate from the amounts referred to in paragraph 2 up to a maximum of 10 %. There shall be no such deviation in respect of the amounts referred to in point (b)(vii) of paragraph 2 and the total amount set out for Part 'Widening Participation and Strengthening the ERA' of paragraph 2.

6. The amount referred to in paragraphs 1 and 3 of this Article for the specific programme referred to in point (a) of Article 1(2) and for the EIT, may also cover expenses for preparation, monitoring, control, audit, evaluation and other activities and expenditures necessary for managing and implementing the Programme, including all administrative expenditure, as well as evaluating the achievement of its objectives. The administrative expenses related to indirect actions shall not exceed 5 % of the total amount of indirect actions of the specific programme referred to in point (a) of Article 1(2) and of the EIT. Moreover, the amount referred to in paragraphs 1 and 3 of this Article for the specific programme referred to in point (a) of Article 1(2) and for the EIT may also cover:

(a) in so far as they are related to the objectives of the Programme: expenses relating to studies, to meetings of experts, information and communication actions;

(b) expenses linked to information technology networks focusing on information processing and exchange, including corporate information technology tools and other technical and administrative assistance needed in connection with the management of the Programme.

7. If necessary to enable the management of actions not completed by 31 December 2027, appropriations may be entered in the Union budget beyond 2027 to cover the expenses provided for in paragraph 6.

8. Budgetary commitments for actions extending over more than one financial year may be broken down into annual instalments over several years.

9. In accordance with point (a) of the second subparagraph of Article 193(2) of the Financial Regulation, in duly justified cases specified in the financing decision and for a limited period, activities supported under this Regulation and the underlying costs may be considered eligible as of 1 January 2021, even if they were implemented and incurred before the grant application was submitted.