The article says this: "A paper by Odersky states that the EU funding will mainly be provided for the definition of domain-specific languages (DSLs) in libraries." and refers to this blog post: http://www.scala-lang.org/node/8579
I do believe so as the technique that Scala seeks to utilize to tackle parallel programming "is to use "language virtualization", combining polymorphic embeddings with domain-specific optimizations in a staged compilation process.".
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This thread's article has:
"Over the next five years the group of developers working at Switzerland's EPFL (École polytechnique fédérale de Lausanne) will be receiving €2.3 million from the European Research Council."
The LMTU thread links to the blog post you mention above which contains:
"The Scala research group at EPFL is excited to announce that they have won a 5 year European Research Grant of over 2.3 million Euros to tackle the "Popular Parallel Programming" challenge. This means that the Scala team will nearly double in size to pursue a truly promising way for industry to harness the parallel processing power of the ever increasing number of cores available on each chip."
I hope the money does not come with too many strings attached in terms of reporting requirements and so on.
2.3 million euros is pocket change for the EU but for Odersky and his team it is a very large sum of money to be able to use to expand their team and to put more power behind the scala effort.