In Horizon Europe, the Project Coordinator is the cornerstone of a consortium, acting as the legal representative and the main contact with the European Commission (EC).

In rare occasions, the EC may reject a nominated Coordinator during the Grant Agreement (GA) negotiation process or even once the grant is signed and ongoing, putting the entire consortium at risk.

Why a Project Coordinator May Be Rejected

Rejection may occur due to failure to meet eligibility criteria, legal or ethical issues, insufficient resources or issues of financial capacity.

Knowing how to handle such a situation is key to keeping the project on track.

Financial capacity assessments are a critical part of the GA preparation. The EC needs assurance that the Coordinator can properly manage EU funds, cover costs until pre-financing is received, and meet reporting obligations. Sometimes, a small organization or a novel SME may be flagged because its liquidity, turnover, or overall financial stability is not sufficient for coordination responsibilities.

Eligibility issues can also arise if the organization does not meet legal, operational, or technical requirements, or if there are conflicts of interest or insufficient staff to coordinate the project effectively.

Options to Overcome the Problem

So, what can a consortium do if their proposed coordinator is rejected? There are several paths:

• Provide additional documentation or guarantees

In some cases, the original Coordinator can provide additional documentation, such as bank guarantees or letters of support, to prove financial stability. This can help convince the EC that the original Coordinator can manage the project.

• Change the Project Coordinator

The consortium can nominate a new Coordinator from among the existing partners. This new Coordinator takes over all legal and administrative responsibilities, however and most important, the EC must approve the change. In some cases, the consortium may even bring in a completely new partner solely to serve as Coordinator. This approach can solve not only the financial or eligibility issue but can also strengthen the consortium with additional expertise and resources.

Practical Example

In a digital manufacturing Horizon Europe project, the initially proposed Coordinator was a small SME whose financial capacity was flagged by the EC during the GA preparation. The consortium first attempted to resolve the issue with additional explanations and an auditor’s note, but this proved insufficient. Eventually, a larger partner within the consortium agreed to take over as Coordinator. The EC approved the change, the GA was signed, and the project started on schedule without any funding delays.

Conclusions

The main lesson is that setbacks with a Project Coordinator don’t have to derail a project. With proactive planning, clear communication with the EC, and flexibility within the consortium, projects can stay on track.

Being prepared for financial and eligibility requirements upfront can make all the difference when the unexpected happens.

Facing a similar situation? Or do you want to be sure that you meet all legal and financial requirements as Coordinator? We can help you check and ensure everything is in order. Contact us at [email protected]