Europe has a long standing tradition of excellence in research and innovation, and European teams continue to lead progress in many fields of science and technology. In the past, collaborative actions have been initiated at European and Community level, but now is the time to bring our endeavours together and to build a research and innovation equivalent of the "common market" for goods and services. That structure is called the European Research Area and is regrouping all Community supports for the better coordination of research activities and the convergence of research and innovation policies, at national and EU levels.
(extracted from http://europa.eu.int/comm/research/era/index_en.html)

The Sixth Framework Programme is a key instrument of ERA. For that reason it has an innovative edge and more resources than its predecessor. The Sixth Framework Programme (FP6) is at present the Union’s main instrument for the funding of research in Europe. Proposed by the Commission and adopted by the Council and Parliament in co-decision, it is open to all public and private entities, large or small.

The overall budget covering the four-year period 2003 - 2006 is €17.5 billion, representing an increase of 17% from the Fifth Framework Programme and making up 3.9% of the Union’s total budget (2001), and 6% of the Union’s public (civilian) research budget. There are no national quotas for FP6 funds.

Seven key areas for the advancement of knowledge and technological progress within FP6 have been chosen: genomics and biotechnology for health; information society technologies; nanotechnologies and nanosciences; aeronautics and space; food safety; sustainable development; and economic and social sciences. With a view towards achieving the biggest possible impact, over €12 billion is being allocated to them.
(extracted from http://europa.eu.int/comm/research/fp6/pdf/facts_en.pdf)