Research and innovation are important items on the EU’s agenda. Therefore, LERU recommends that the budget for the next Framework Programme (FP) should be increased to match the demands of the knowledge society, since investing in researchers and career opportunities is crucial to maintain and develop Europe’s competitiveness. This paper makes recommendations for the development of the next FP for Research in four broad areas. Firstly, LERU emphasises the need to achieve a well-balanced division between funding directed, top-down, impact-driven and non-directed, bottom-up, science-driven research in FP8. Secondly, to ensure the competitiveness and impact of European research, excellence must remain the most crucial driving force for research funding in FP8. Thirdly, the financial regulations for research need to be simplified and adapted to the needs of the research community. Lastly, LERU is in favour of a high-trust and risk-tolerant approach to funding research.