Meeûs – a self-help resource for the FP7 user community

I have just started my first FP7 contract negotiation. The Commission project officer is being very tough, and has told me I have to reduce costs overall by almost 20%. My view is that the project will then not be viable, but he doesn’t accept that. When I ask him why he wants to cut the different costs, he just says ‘you and your partners are too expensive”. But we are all charging our usual costs and there is nothing in the Evaluation Summary Form about expensive partners. Are Project Officers allowed to do this sort of thing? Can anybody give me some practical advice about what to do? But quickly because the next negotiation meeting is very soon!