Some call topics (e.g. in Cluster3 & 4) have additional Article 22.5 eligibility requirements. These rules establish ownership and control restrictions designed to protect the strategic interests of the European Union. This infosheet provides a comprehensive overview of what you need to know as an applicant.

What is Article 22.5?

Article 22.5 of the Horizon Europe Programme establishes specific eligibility criteria for entities participating in certain EU-funded projects. These restrictions are designed to ensure that projects involving sensitive technologies, such as AI and robotics, remain under appropriate control and don't pose risks to EU strategic interests.

Which Countries Are Eligible?

Legal Entities from the following countries are generally eligible to participate:

• EU Member States: All 27 European Union member states
• Associated Countries: Countries that have formal association agreements with Horizon Europe (Iceland, Norway)
• Additional Eligible Countries: Canada, Israel, Republic of Korea, New Zealand, Switzerland, and the UK
• OECD Countries: In some specific calls (check individual requirements), entities from OECD countries may also be eligible

Ownership and Control Assessment

The key requirement under Article 22.5 is that entities must not be controlled by non-eligible countries or their entities. Here's what you need to know:

What Does "Control" Mean?

Control is assessed based on several factors:

• Ownership of more than 50% of shares or voting rights
• Ability to exercise decisive influence over strategic decisions
• Appointment rights for key management positions
• Special rights that allow blocking of important decisions

When Is the Assessment Done?

The ownership and control assessment occurs at the following moments:

• Proposal Submission: You must complete an Ownership and Control Assessment (OCA) template when submitting your proposal
• Grant Agreement Preparation: The assessment is verified again before the grant agreement is signed
• During Project Implementation: If ownership or control changes during the project, you must notify the European Commission immediately

The Assessment Process

Step 1: Complete the OCA Template

At the proposal stage, beneficiaries must fill in the Ownership and Control Assessment template, providing detailed information about:

• Legal entity structure
• Shareholders and their ownership percentages
• Country of origin of controlling entities
• Special rights or veto powers held by any shareholders

Step 2: Central Validation Services Review

The European Commission's Central Validation Services (CVS) receives and reviews your OCA template. They may request additional information or clarification as needed.

Step 3: Operational Unit Assessment

The operational unit responsible for your call reviews the CVS conclusions and makes a determination about eligibility.

Step 4: Member State Consultation

For Horizon Europe projects, the Commission also consults with contact points in eligible member states and associated countries to obtain their assessment.

What If Your Entity Is Controlled by a Non-Eligible Country?

If your entity is found to be controlled by a non-eligible country or entity, it doesn't automatically mean you're excluded. You have the option to participate exceptionally if you can provide sufficient guarantees that your participation does not pose risks to EU strategic interests.

Providing Sufficient Guarantees

To demonstrate sufficient guarantees, you'll need to complete additional templates showing:

• Measures in place to protect sensitive information
• Governance structures that prevent undue influence
• Commitments to comply with EU security requirements
• Other relevant safeguards specific to your project

The Commission will assess whether these guarantees adequately protect EU strategic interests on a case-by-case basis.

Changes in Ownership During the Project

It's crucial to understand that ownership and control can change after a proposal is submitted or even after a grant agreement is signed. If this happens:

• You must immediately notify the European Commission
• A new assessment will be conducted
• If the new ownership structure violates Article 22.5 requirements and sufficient guarantees cannot be provided, it may affect your participation

Practical Tips for Applicants

• Check call-specific requirements: Each call may have additional or modified eligibility criteria beyond the standard Article 22.5 rules
• Prepare documentation early: Gathering ownership and control information can take time, especially for complex corporate structures
• Be transparent: Provide complete and accurate information in your OCA template to avoid delays or complications
• Consider consortium composition: If you anticipate control issues, consider the role your entity will play in the consortium
• Monitor ownership changes: Stay alert to any potential changes in ownership or control throughout the application and project period

Confidentiality of Information

The European Commission understands that ownership and control information can be commercially sensitive. All information provided in the OCA process remains confidential within the Commission and is not shared externally.

Special Requirements for Financial Support to Third Parties (FSTP)

If you're applying for a project that will provide Financial Support to Third Parties (FSTP), there are additional considerations regarding Article 22.5 compliance:

Responsibility of FSTP Managers

As an FSTP manager (the consortium managing the FSTP cascade funding), you are responsible for implementing EC rules and ensuring that FSTP recipients meet eligibility requirements, including Article 22.5 restrictions where applicable.

Simplified Rules for FSTP Recipients

Recognizing the administrative burden of applying full Article 22.5 checks to potentially hundreds of FSTP recipients, the Commission has introduced simplified rules for the 2026 work programme:

• FSTP recipients will have lighter ownership and control verification requirements compared to direct beneficiaries
• The exact procedures will be specified in the relevant call documentation
• FSTP managers should consult with NCPs and the Commission if questions arise about specific FSTP recipient eligibility

Monitoring Changes for FSTP Recipients

Even with simplified rules, FSTP managers should establish processes to monitor significant ownership changes among FSTP recipients during the project period, as these could affect eligibility and compliance with grant conditions.

Resources and Guidance

The Commission has developed specific guidance documents for FSTP implementation, including how to apply Article 22.5 requirements. Make sure that you contact your Project Officer so that you get the relevant documents. Of course, also check any call-specific guidance documents carefully, and then establish clear eligibility criteria in your FSTP open calls and develop appropriate templates and processes for FSTP recipient assessment.

For questions specific to FSTP implementation and Article 22.5 requirements, FSTP managers are encouraged to contact the relevant Commission operational unit for clarification. Ask help to your NCPs if you don't know how to reach them.