The focus is on tackling climate change, energy projects, food security, health and Europe's ageing population. Grants will be awarded to about 16,000 research bodies and businesses. EU-funded research currently accounts for about 5% of the total public funding for research in the EU. The investment includes more than EUR 600m for health research, about EUR 206m of which will go into clinical trials for new drugs.

Nanotechnologies will get EUR 270m, while about EUR 600m is earmarked for advanced computer technologies. Another EUR 400m is to be spent on computer applications that address the challenges of building a low-carbon economy and managing ageing populations.

The enriched EU budget will have to accommodate a EUR 1.4bn shortfall in building funds for the ITER fusion reactor based in France. The European Commission has announced plans to 'redeploy' EUR 100m in 2012 and EUR 360m in 2013 from its 7th Framework Programme for Research. It will also transfer unused funds of EUR 400m from other EU budgets to ITER.