This Communication presents measures and options for simplifying EU research funding, for assuring that EU research funding promotes the highest quality research.

Further simplification can only be achieved with the full commitment and political support of the other EU institutions, in particular the Council and European Parliament. Difficult compromises for reaching a better balance between trust and control and between risk taking and risk avoidance have to be made, while ensuring sound financial management. The debate on a research specific Tolerable Risk of Error (TRE) offers an opportunity in this respect.

Under all circumstances the Commission in its role of steward of EU taxpayer's money will maintain proper conditions to ensure sound financial management, including appropriate fraud prevention measures, based on a thorough risk analysis and strategy taking into account each strand. Simplification and TRE shall not compromise this prerequisite.

The Commission calls on the other EU institutions to contribute to the debate and give feedback on the options outlined in this Communication, in view of the future shaping of EU research funding.

The results of this debate will be introduced in the Commission proposals for the "Innovation Union" flagship initiative under the Europe 2020 strategy and into the shaping of the next framework programmes. Depending on consensus obtained in response to this Communication regarding specific measures the Commission may present amendments still for FP7, following its interim evaluation.