Some academics have been in touch expressing concern that the current economic turmoil and bail outs in Europe will affect the EC's research budget. I asked UKRO about this, and they confirmed that they will not affect the budget of FP7. This budget is set in stone and can’t be touched. In fact the amount of money set aside for FP7 Calls each year is increasing up until 2013, so not only is the budget protected, it is actually increasing each year up until that point.
This is an important message as a lot more people are now turning to FP7 for funding given the question marks over national sources of funding, even people that have sometimes been put off in the past.
However, after 2013, when it comes to FP8, then this is when there is no certainty. A whole new financial perspectives will have to be agreed and whilst we are still some way from that point it would be foolish to assume that Member States, most of whom will still be battling to cut deficits then, will be as keen to contribute as much as they did in the past.