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Document 52011PC0817
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EC) No 294/2008establishing the European Institute of Innovation and Technology
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EC) No 294/2008establishing the European Institute of Innovation and Technology
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EC) No 294/2008establishing the European Institute of Innovation and Technology
/* COM/2011/0817 final - 2011/0384 (COD) */
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EC) No 294/2008establishing the European Institute of Innovation and Technology /* COM/2011/0817 final - 2011/0384 (COD) */
EXPLANATORY MEMORANDUM 1. CONTEXT OF THE PROPOSAL The European Institute of Innovation and
Technology (EIT) has been set up by Regulation (EC) 294/2008 with the objective
to contribute to sustainable economic growth and competitiveness by reinforcing
the innovation capacity of the EU and its Member States. During the period
2014-2020 the EIT will contribute to the general objective of "Horizon2020
- The Framework Programme for
Research and Innovation" (hereinafter referred to
as 'Horizon 2020')[1], by integrating the
knowledge triangle of higher education, research and innovation. This
integration takes place primarily via the Knowledge and Innovation Communities
(KICs), which bring together organisations on a long-term basis around societal
challenges. The financial contribution from Horizon
2020 to the EIT will be implemented in accordance with the Regulation of the
European Parliament and of the Council laying down the rules for the
participation and dissemination in "Horizon 2020"[2]. The EIT funding to the KICs
will cover "KIC added value activities", however the KICs or
their partner organisations may apply to other schemes under Horizon 2020 or European
Union programmes in accordance with their respective rules and on equal footing
with other applications. The proposed amendments are based on several sources: lessons learnt
during the initial period, the proposal for the EIT Strategic Innovation
Agenda, which builds on the proposal of the EIT Governing Board, the
recommendations of the external evaluation report and Commission opinion on the
evaluation, as well as the results of broad consultations with EIT
stakeholders. 2. RESULTS OF CONSULTATIONS WITH THE
INTERESTED PARTIES AND IMPACT ASSESSMENTS The preparation of the proposal took
account of the responses to the open consultations on the EIT[3]. Views were expressed by the
Member States and a wide range of stakeholders from industry, academia and
civil society. It showed a strong support to the mission of the EIT to drive
more and better cooperation between the worlds of academia, entrepreneurship,
research and innovation. According to respondents, the EIT should play a
distinctive role in 'Horizon 2020', the future EU Programme for Research and
Innovation, and forge closer links with other European and national efforts. A
majority of respondents praised the way in which the EIT ensures the
participation of businesses in its work and urged the Institute to step up its
outreach activities. Moreover, respondents considered business involvement as
highly relevant for the future success of the EIT. Flexibility, clarity on
rules and clear returns on investment is therefore fundamental in order to
attract private sector participation. The proposal also relies on the external
evaluation report in which the concept of integrating the knowledge triangle is
regarded as highly relevant and the themes around which the EIT is structured
are well-received. There is much support for the model which has been developed
by the EIT, based around integrated networks of co-location centres.
Respondents were also positive, and consistent, in their perspective that the
value of the KICs was in acting as a catalyst to secure additional value from
the activities which individual members already undertook. 3. LEGAL ELEMENTS OF THE PROPOSAL The proposal is
based on the Article 173 TFEU and will be implemented as centralised
indirect management 4. BUDGETARY IMPLICATION During the period 2014-2020 a financial contribution of 3.182.230 million Euro (current prices) for
the EIT will be provided from Horizon
2020, the Framework Programme for Research and Innovation (2014-2020). The
legislative financial statement attached to this proposal sets out the
budgetary, human and administrative resource implications. 2011/0384 (COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL amending Regulation (EC) No 294/2008
establishing the European Institute of Innovation and Technology (Text with EEA relevance) THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 173(3) thereof, Having regard to the proposal from the
European Commission, After transmission of the draft legislative
act to the national Parliaments, Having regard to the opinion of the
European Economic and Social Committee[4], Having regard to the opinion of the
Committee of the Regions[5], Acting in accordance with the ordinary
legislative procedure, Whereas: (1)
The Europe 2020 strategy for smart, sustainable
and inclusive growth assigns a prominent role to the European Institute of
Innovation and Technology (hereinafter referred to as the EIT) which
contributes to a number of flagship initiatives. (2)
During the period 2014-2020
the EIT should contribute to "Horizon2020 - The Framework Programme for Research and
Innovation" established by Regulation No XX/XXXX of the European
Parliament and of the Council (hereinafter referred to
as 'Horizon 2020')[6] objectives by integrating the knowledge triangle of research,
innovation and education. (3)
In order to ensure a coherent framework for
participants in Horizon 2020, the Regulation No XX/XXXX of the European
Parliament and of the Council laying down the rules for the participation and
dissemination in 'Horizon 2020' – the Framework Programme for Research and
Innovation (2014-2020) (hereinafter referred to as 'Rules for Participation') should
apply to the EIT. (4)
The rules concerning the management of
intellectual property rights are defined in the Rules for Participation. (5)
The rules concerning participating states and
third countries are defined in Horizon 2020 Regulation. (6)
The EIT should directly engage with national and
regional representatives and other stakeholders from across the innovation
chain, generating beneficial effects on both sides. In order to render such
dialogue and exchange more systematic, an EIT Stakeholder Forum should be organised,
bringing together the wider community of stakeholders around cross-cutting
issues. (7)
The scope of the EIT contribution to the Knowledge
and Innovation Communities (hereinafter referred to as KICs) should be defined
and the origins of KICs' financial resources clarified. (8)
The composition of the EIT bodies should be
simplified. The functioning of the EIT Governing Board should be streamlined
and the respective roles and tasks of the Governing Board and the Director
should be further clarified. (9)
New KICs, including their priority fields and
the organisation and timing of the selection process, should be launched on the
basis of modalities defined in the Strategic Innovation Agenda. (10)
The KICs should broaden their educational
activities, by providing professional training courses. (11)
Cooperation on the organisation the monitoring
and evaluations of the KICs between the Commission and the EIT is required to
ensure coherence with overall EU level monitoring and evaluation system. (12)
The KICs should seek synergies with relevant European
Union initiatives. (13)
In order to assure broader participation of
organizations from different Members States in the KICs, the partner
organizations should be established in at least three different Member States. (14)
The criteria and procedures for the financing,
monitoring and evaluation of the activities of the KICs should be adopted by
the EIT prior to launching the KIC selection process. (15)
The EIT Triennial Work Programme should take
into account the Commission's opinion concerning the EIT's
specific objectives, as defined in Horizon 2020, and its complementarities with
European Union policies and instruments. (16)
The EIT, being under Horizon 2020, will be part
of the mainstreaming of climate change expenditures as defined in Horizon 2020. (17)
The evaluation of the EIT should provide timely
input to the evaluation of Horizon 2020 in 2017 and 2023. (18)
The Commission should strengthen its role in monitoring
the implementation of specific aspects of EIT activities. (19)
This Regulation lays down, for the period 2014
to 2020, a financial envelope constituting
the prime reference, within the meaning of point [17] of the Inter-institutional
Agreement of XX/YY/201Z between the European Parliament, the Council and the
Commission on cooperation in budgetary matters and on sound financial
management, for the budgetary authority during the annual budgetary procedure.
The financial contribution for the EIT should be provided from Horizon 2020. (20)
Although initially foreseen, the EIT Foundation
will not receive a direct contribution from the EU budget, the EU discharge
procedure should not apply to it. (21)
For reasons of clarity the Annex to Regulation
(EC) No 294/2008 should be replaced by a new Annex. (22)
Regulation (EC) No 294/2008 should therefore be
amended accordingly. HAVE ADOPTED THIS REGULATION: Article 1 Regulation (EC) No 294/2008 is amended as
follows: (1)
Article 2 is amended as follows: (a)
Paragraphs 3 and 4 are deleted. (b)
Paragraph 7 is replaced by the following: "higher education institution" means
an institution within the meaning of Article 2 of Decision (EC) No XXX/20XX of
the European Parliament and of the Council establishing "Erasmus for
all". (c)
the following paragraph 10 is added: "10. 'Stakeholder Forum' means a meeting
open to representatives of national and regional authorities, organized
interests and individual entities from business, higher education, and
research, cluster organisations, as well as other interested parties from
across the knowledge triangle". (d)
the following paragraph 11 is added: 11. "KIC added value activities"
means activities carried out by partner organisations contributing to the
integration of the knowledge triangle of research, innovation and higher
education, including establishment, administrative and coordination activities
of the KICs. (2)
Article 3 is replaced by the following: "Article
3 Mission and Objectives The EIT’s mission is to contribute to
sustainable European economic growth and competitiveness by reinforcing the
innovation capacity of the Member States and the Union. It shall do this by
promoting and integrating higher education, research and innovation of the
highest standards The EIT' General Objectives, Specific
Objectives and result indicators for the period 2014-2020 are defined in
Horizon 2020". (3)
In Article 4(1) point (b) is deleted: (4)
In Article 5(1) is amended as follows: (a)
point (a) is deleted. (b)
The following point (j) is inserted "(j) convene, at least once a year, the
Stakeholders Forum to inform about the activities of the EIT, its experiences,
good practices and contribution to Union innovation, research and education
policies and objectives. Stakeholders shall be invited to express their views." (5)
In Article 6(1), point (c) is replaced by the
following: "(c) education and training activities at
masters and doctoral level, as well as professional training courses, in
disciplines with the potential to meet future European socio-economic needs and
which promote the development of innovation-related skills, the improvement of
managerial and entrepreneurial skills and the mobility of researchers and
students;". (6)
Article 7 is amended as follows: (a)
paragraph 1a is inserted: "1a. The EIT shall launch the selection
and designation of KICs according to the priority fields and time schedule
defined in the SIA." (b)
in paragraph 2, the following point (h) is
added: "(h) readiness to establish synergies with
other European Union initiatives," (c)
paragraph 3, is replaced by the following: "3. The minimum condition to form a KIC is
the participation of at least three partner organisations, established in at
least three different Member States. All these partner organisations must be
independent of each other, within the meaning of Article 7 of Rules for
Participation". (d)
paragraph 4 is replaced by the following: "4. The majority of the partner
organisations forming a KIC shall be established in the Member States. At least
one higher education institution and one private company shall be part of each
KIC. " (e)
the following paragraph 5 is added: "5. The EIT shall adopt criteria and
procedures for the financing, monitoring and evaluating of the activities of
the KICs prior to the launching of the selection procedure for new KICs." (7)
The following Article 7a is inserted: "Article
7a Principles
for the evaluation and monitoring of KICs The EIT, shall on the basis of key
performance indicators and in cooperation with the Commission, organise
continuous monitoring and periodic external evaluations of the outputs, results
and impact of each KIC." (8)
The following Article 7b is inserted: "Article
7b Duration,
continuation and termination of a KIC 1.
Subject to the outcomes of periodic evaluations
and to the specificities of particular fields, a KIC shall normally have a
time-frame of seven to fifteen years. 2.
The Governing Board may decide to extend the
operation of a KIC beyond the period initially set if this is the most
appropriate way to achieve the objectives of the EIT. 3.
In the event that evaluations of a KIC show
inadequate results, the Governing Board shall take appropriate measures
including reduction, modification or withdrawal of its financial support or
termination of the agreement." (9)
Article 10 is deleted. (10)
Article 14 paragraph 2 is replaced by the
following: "2. The KICs shall be financed, in
particular, from the following sources: (a)
contributions from partner organizations,
forming a substantial source of funding; (b)
statutory or voluntary contributions from Member
States, third countries or public authorities within them; (c)
contributions from international bodies or
institutions; (d)
revenue generated by the KICs’ own activities
and royalties from intellectual property rights; (e)
capital endowments, including those managed by
the EIT Foundation; (f)
bequests, donations and contributions from
individuals, institutions, foundations or any other national bodies; (g)
contribution from the EIT; (h)
financial instruments, including those funded
from the general budget of the European Union". Contributions may include
contributions in kind." (11)
Article 14 (4) is replaced by the following: "4. The EIT contribution may cover, up to
100% of total eligible costs of KIC added value activities". (12)
Article 15 is replaced by the following: "Article
15 Programming
and reporting The EIT shall adopt: (a)
a rolling triennial work programme, based on the
SIA, once it is adopted, containing a statement of the major priorities and
planned initiatives of the EIT and the KICs, including an estimate of financing
needs and sources. It shall also contain appropriate indicators for monitoring
the KICs and EIT activities. The preliminary rolling triennial work programme
shall be submitted by the EIT to the Commission by 31 December each N-2. The
Commission shall deliver an opinion within three months with regard to EIT
specific objectives as defined in Horizon 2020 and its complementarities with
Union policies and instruments. The EIT shall take a due account of the
Commission opinion, and in case of disagreement justify its position. The final
work programme shall be transmitted by the EIT to the European Parliament, the
Council, the Commission, the European Economic and Social Committee and the
Committee of the Regions for information; (b)
an annual report by 30 June each year. The report
shall outline the activities conducted by the EIT and the KICs during the
preceding calendar year and assess the results with respect to the objectives,
indicators and timetable set, the risks associated with the activities carried
out, the use of resources and the general operation of the EIT." (13)
Article 16 is amended as follows: (a)
in paragraph 2, the word "five" is
replaced by the word "three"; (b)
the following paragraph 2a is inserted: "2a. The
Commission may carry out further evaluations on themes or topics of strategic
relevance, with the assistance of independent experts, to examine the progress
made by the EIT towards the objectives set, identify the factors contributing
to the implementation of the activities and identify good practices." (14)
In Article 17, the following paragraph 2a is
inserted: "2a. The
SIA shall include an analysis of potential synergies and complementarities
between EIT activities and other Union initiatives, instruments and programmes." (15)
Article 19 is replaced by the following: "Article
19 Budgetary
commitments The financial envelope from Horizon
2020 for the implementation of this Regulation during the period from 1 January
2014 to 31 December 2020 is set at EUR 3.182,230 million The annual
appropriations shall be authorised by the budgetary authority within the limits
of the financial framework. The EIT financial contribution to the KICs shall be
provided under this financial envelope." (16)
In Article 20, paragraph 5 is replaced by the
following: "5. The Governing Board shall adopt the draft estimate,
accompanied by a draft establishment plan and the preliminary rolling triennial
work programme and forward them by 31 December N-2 to the Commission." (17)
In Article 20, paragraph 6 is replaced by the
following: "6. On the basis of the estimate, the Commission shall enter in
the draft general budget of the European Union the estimates it deems necessary
for the amount of the subsidy to be charged to the general budget." (18)
Article 21 is amended as follows (a)
the following paragraph 1a is inserted: "1a. The
financial contribution to the EIT, shall be implemented in accordance with the Regulation
of the European Parliament and of the Council establishing Horizon 2020 and
with the Regulation of the European Parliament and of the Council laying down
the rules for the participation and dissemination in Horizon 2020". (b)
paragraph 4 is replaced by the following: "4. Upon a
recommendation from the Council, the European Parliament shall, before 30 April
of the year n + 2, give a discharge for the year n to the Director in respect
of the implementation of the EIT budget." (19)
Article 22(4) is deleted (20)
The following Article 22a is inserted: "Article
22a Winding
up of the EIT In the event of winding up of the EIT,
its liquidation shall intervene under the supervision of the Commission in
conformity with the laws applicable. The agreements with the KICs and the act
establishing the EIT Foundation shall lay down the appropriate provisions in
such situation." Article 2 The Annex to Regulation (EC) No
294/2008 shall be replaced by the Annex to this Regulation. Article 3 This Regulation shall enter into force on 1 January 2014. This Regulation shall be binding in its
entirety and directly applicable in all Member States. Done at Brussels, For the European Parliament For
the Council The
President The President ANNEX Statutes
of the European Institute of Innovation and Technology Section
1 Composition
of the Governing Board 1.
The Governing Board shall consist both of appointed
and representative members. 2.
There shall be 12 appointed members, appointed by
the Commission, providing a balance between those with experience in business,
higher education and research. They shall have a four-year non-renewable term
of office. Whenever necessary, the Governing Board shall
submit to the Commission a proposal for appointment of a new member(s). The
candidate(s) shall be chosen based on the outcome of a transparent and open
procedure, involving consultation with stakeholders. The Commission shall have regard to the balance
between higher education, research, innovation and business experience as well
as to gender balance and an appreciation of the higher education, research and
innovation environments across the Union. The Commission shall appoint the member(s) and
inform the European Parliament and the Council about the selection process and
the final appointment of those members of the Governing Board. In the event that an appointed member is unable to
complete his/her term of office, a substitute member shall be appointed by the
same procedure as the incapacitated member in order to complete the latter’s term
of office. A substitute member, who has served for a period of less then two
years, may be re-appointed by the Commission for a period of additional four
years upon request of the Governing Board. During a transitional period, the Board members
initially appointed for a six year period shall complete their mandate. Until
that time there shall be 18 appointed members. Within six months after entry
into force of this regulation, one third of twelve members appointed in 2012
shall be chosen by the Governing Board with the Commission approval to serve
for a two year period, one third for a four year period and one third for a six
year period. 3.
There shall be three representative members elected
by the KICs from among their partner organizations. They shall have a two-year
term of office, renewable once. Their term of office shall cease if they leave
the KIC. The conditions and modalities for election and
replacement of the representative members shall be adopted by the Governing
Board on the basis of a proposal from the Director. This mechanism shall ensure
an appropriate representation of the diversity and shall take into account the
evolution of the KICs. During a transitional period, the representative
members initially elected for a three year period shall complete their mandate.
Until that time there shall be four representative members. 4.
The Governing Board members shall act in the
interests of the EIT, safeguarding its goals and mission, identity and
coherence, in an independent way. Section
2 Responsibilities
of the Governing Board 1.
The Governing Board shall take necessary strategic
decisions, in particular: (a)
adopt the EIT draft Strategic Innovation Agenda
(SIA), the triennial rolling work programme, its budget, its annual accounts
and balance sheet and its annual activity report, on the basis of a proposal
from the Director; (b)
adopt criteria and procedures for the financing,
monitoring and evaluating of the activities of the KICs, on the basis of a
proposal from the Director; (c)
adopt the selection procedure of the KICs; (d)
select and designate a partnership as a KIC or
withdraw the designation if necessary; (e)
ensure continuing evaluation of the activities of
KICs; (f)
adopt its rules of procedure, those for the
Executive Committee, as well as the specific financial rules of the EIT; (g)
define, with the Commission’s agreement,
appropriate honoraria for members of the Governing Board and of the Executive
Committee; these honoraria shall be benchmarked against similar provision in
the Member States; (h)
adopt a procedure for selecting the Executive
Committee and the Director; (i)
appoint and if necessary dismiss the Director, and
exercise disciplinary authority over him/her; (j)
appoint the Accounting Officer and the members of
the Executive Committee; (k)
adopt a code of good conduct regarding conflicts of
interest; (l)
establish where appropriate advisory groups which
may have a defined duration; (m)
set up an Internal Auditing Function in accordance
with Commission Regulation (EC, Euratom) No 2343/2002; (n)
be empowered to establish a Foundation (hereinafter
referred to as the EIT Foundation) with the specific objective of promoting and
supporting the activities of the EIT; (o)
decide on EIT’s language regime, taking into
account the existing principles on multilingualism and the practical
requirements of its operations; (p)
promote the EIT globally, so as to raise its
attractiveness and make it a world-class body for excellence in higher education,
research and innovation. Section
3 Functioning
of the Governing Board 1.
The Governing Board shall elect its Chairperson
from among the appointed members. The term of office of the Chairperson shall
be two years, renewable once. 2.
Without prejudice to paragraph 3, the Governing
Board shall adopt decisions by simple majority of members having a right to
vote. However, decisions under Section 2(2) (a), (b),
(c), (i) and (o), and Section 3(1) shall require a majority of two thirds of
all its members. 3.
The representative members may not vote on
decisions under Section 2(2)(b), (c), (d), (e), (f), (g), (i), (j), (k), (o)
and (p) 4.
The Governing Board shall meet in ordinary session
at least three times a year and in extraordinary session when convened by its
Chairperson or on request of at least one third of its members. 5.
The Governing Board shall be assisted by the
Executive Committee. The Executive Committee shall consist of three persons
including the Chairperson of the Governing Board who will also chair the
Executive Committee. The two members other than the Chairperson shall be chosen
by the Governing Board from among the Governing Board’s appointed members. The
Governing Board may delegate specific tasks to the Executive Committee. Section
4 The
Director 1.
The Director shall be a person with expertise and
high reputation in the areas where the EIT operates. The Director shall be appointed
by the Governing Board for a term of office of four years. The Governing Board
may extend that term of office once by four years when it considers that the
interests of the EIT are best served by so doing. 2.
The Director shall be responsible for operations
and for the day-to-day management of the EIT and be its legal representative.
The Director shall be accountable to the Governing Board and report to it on an
ongoing basis on the development of the EIT activities. 3.
The Director shall in particular: (a)
organize and manage the activities of the EIT; (b)
support the Governing Board and the Executive
Committee in their work, provide the secretariat for their meetings and with
all information necessary for the performance of their functions; (c)
prepare a draft SIA, a preliminary rolling
triennial work programme, the draft annual report and the draft annual budget
for submission to the Governing Board; (d)
prepare and administer the selection process for
KICs and ensure that the various stages of that process are carried out in a
transparent and objective manner; (e)
organise and manage the activities of the EIT; (f)
prepare, negotiate and conclude contractual
agreements with the KICs; (g)
organize the Stakeholders Forum; (h)
ensure the implementation of effective monitoring
and evaluation procedures relating to the performance of the EIT in accordance
with Article 16 of the Regulation; (i)
be responsible for administrative and financial
matters, including the implementation of the EIT budget. In this the Director
shall take due account of advice received from the Internal Auditing Function; (j)
be responsible for all staff matters; (k)
submit the draft annual accounts and balance sheet
to the Internal Auditing Function, and subsequently to the Governing Board,
through the Executive Committee; (l)
ensure that the obligations of the EIT with regard
to the contracts and agreements it concludes are met; Section
5 Staff
of the EIT 1.
The staff of the EIT shall consist of personnel
employed directly by the EIT under fixed term contracts. The conditions of
employment of other servants of the European Union shall apply to the Director
and the Staff of the EIT. 2.
Experts may be seconded to the EIT for a limited
duration by participating States or other employers. The Governing Board shall adopt provisions
enabling seconded experts from participating States or other employers to work
at the EIT and defining their rights and responsibilities. 3.
The EIT shall exercise, with regard to its staff,
the powers which are devolved to the authority authorized to conclude the
contracts with the staff members. 4.
A member of staff may be required to make good, in
whole or in part, any damage suffered by the EIT as a result of serious
misconduct on his/her part in the course of or in connection with the
performance of his/her duties. LEGISLATIVE FINANCIAL STATEMENT
FOR PROPOSALS
1.
FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1.
Title of the
proposal/initiative
1.2.
Policy area(s)
concerned in the ABM/ABB structure
1.3.
Nature of the
proposal/initiative
1.4.
Objective(s)
1.5.
Grounds for the
proposal/initiative
1.6.
Duration and financial
impact
1.7.
Management method(s)
envisaged
2.
MANAGEMENT MEASURES
2.1.
Monitoring and
reporting rules
2.2.
Management and
control system
2.3. Measures
to prevent fraud and irregularities
3.
ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1.
Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected
3.2.
Estimated impact on
expenditure
3.2.1.
Summary of estimated impact on expenditure
3.2.2.
Estimated impact on EIT's appropriations
3.2.3.
Estimated impact on EIT's human resources of an
administrative nature
3.2.4.
Compatibility with the current multiannual
financial framework
3.2.5.
Third-party participation in financing
3.3. Estimated impact on revenue LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 1. FRAMEWORK OF THE PROPOSAL/INITIATIVE 1.1. Title of the
proposal/initiative Amendment of the Regulation of the European Parliament and the
Council establishing the European Institute of Innovation and Technology (EIT) 1.2. Policy area(s) concerned
in the ABM/ABB structure[7] Horizon 2020 – The Framework Programme for Research and Innovation (2014-2020) 15. Education and Culture 1.3. Nature of the
proposal/initiative ¨ The
proposal/initiative relates to a new action ¨ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[8] X The proposal/initiative relates to the extension of
an existing action ¨ The
proposal/initiative relates to an action redirected towards a new action 1.4. Objectives 1.4.1. The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative The main general mission for the EIT for the period 2014-2020 is to
contribute to sustainable European economic growth and competitiveness by
reinforcing the innovation capacity of the Member States and the Union. It
shall do this by promoting and integrating higher education, research and
innovation of the highest standards. After an initial period, the long-term strategy
of the EIT is to be set up in the Strategic Innovation Agenda (SIA), to be adopted
by the European Parliament and the Council, on the basis of a Commission
proposal. The SIA builds on the version submitted to the Commission by the EIT
Governing Board in June 2011.The SIA is a policy document outlining the
priority fields of the EIT for future, including an overview of the planned
activities for a period of seven years, in particular, the priority fields for
the EIT Knowledge and Innovation Communities (KICs) and their selection and
designation. For the period 2014-2020 the EIT will become a key player of Horizon
2020, the Framework Programme for Research and Innovation, from which it will
receive a financial contribution of 3,182.230 billion Euros (current prices) as
established under Art.6.3 of Regulation No XX/XXXX of the European
Parliament and of the Council establishing Horizon 2020, the Framework Programme
for Research and Innovation. Horizon 2020 is built around the following three
complementary and interlinked pillars: Excellence in science; Tackling
societal challenges; Creating industrial leadership and Competitive frameworks.
The EIT will contribute primarily to the pillar "Tackling societal
challenge" through its innovation activities and knowledge triangle
integration. However, given its integrated, cross–cutting nature, synergies
will also be sought with other pillars, in particular the "competitiveness"
pillar. A first allocation of EUR 1.493 million shall be provided to the
European Institute of Innovation and Technology for activities under Title XVII
of the Treaty on the Functioning of the European Union. A second allocation of
up to EUR 1.689 million shall be provided, subject to the review set out in
Article 26 (1) of the Regulation of the European Parliament and of the Council
establishing Horizon 2020. This additional amount shall be provided on a
pro-rata basis, as indicated in Annex II, from the amount for the specific
objective "Leadership in enabling and industrial technologies" within
the priority on industrial leadership set out in paragraph 2(b) and from the
amount for the priority on societal challenges set out in 2(c). This funding in two multiannual allocations will cover: – in the first allocation, the ongoing developments of the
current Knowledge and Innovation Communities (hereinafter KICs) and seed money
for the launch of the second wave of three new KICs – in the second allocation, the ongoing developments of the
KICs already launched and the seed money for the launch of the third wave of
three new KICs The EIT financial contribution is based on a necessary expenditure
for consolidation of the existing three KICs (around 1.691 million € – 53.15%
of the total EIT budget), gradual development towards new KICs in 2014 (1.012
million €– 31.81% of the total EIT budget) and 2018 (259,75 millions € – 8.16%
of the total EIT budget), dissemination and outreach activities (141,762
millions €v– 4,45% of the total EIT budget) and administrative expenditure (77
millions € – 2.42% of the total EIT budget), The projected EIT budget for the KICs during the period 2014-2020,
corresponding to 25% of the KICs budget (KIC added value activities), is equals
to 2.963,506 million euro (93.13% of the EIT total budget for the period
2014/2020). The KICs are expected will thereby mobilise a further 8,890 billion
euro of other public and private sources (leverage effect). The contribution from KIC partners is not a classic grant
"co-financing" requirement but as a pre-requisite for a minimum level
of involvement of existing organisations and their financial commitment to the
KIC. This bottom-up approach: (a)guaranteesstrong commitment from KIC partners
(b) incentivizes investment and (c) stimulates structural and organizational
change among KIC partners and beyond. 1.4.2. Specific objective(s) and
ABM/ABB activity(ies) concerned Specific objectives As defined under Regulation XXX of the European Parliament and of
the Council establishing Horizon 2020, the Framework Programme for Research and
Innovation, the EIT objective is to overcome fragmentation in the European
innovation landscape and to enhance Europe's attractiveness as a location of
choice for top level talent and entrepreneurs. This objective will be implemented through the following specific
objectives and outputs: – Consolidate the three existing KICs fostering their growth,
impact and sustainability; – Gradually develop towards new KICs; – Enhance EIT's impact via knowledge sharing, dissemination,
outreach and international exposure. In this context, the EIT will contribute to their achievement through
the following operational objectives: – To integrate the knowledge triangle (of research, innovation
and education) to create economic and social value and to enhance the returns
from greater levels of collaboration and co-operation. – To enhance the attractiveness and commercial relevance of
post-graduate education opportunities to attract, develop and retain
appropriate skills across the EU. – To exploit the underutilised potential of the EU’s research
strengths to deliver greater returns in the product and labour markets. – To develop effective collaborative linkages between centres
of excellence to create a critical mass for advanced innovation and education. – To promote the development of innovative products and
processes where market failures lead to a sub-optimal provision. – To strengthen the capacity for entrepreneurship across the
EU to create new business activity and increased realisation of the potential
value of research and educational outputs. – To strengthen existing and potential centres of research,
innovation and educational excellence in the EU to produce globally competitive
centres of activity with global reputations for excellence. – To address disparities in innovation capacity across the EU
by developing and sharing the knowledge of the returns to the new models of
innovation practices and governance. ABM/ABB activity(ies) concerned 15 - Education and Culture - European Institute of Innovation and
Technology 1.4.3. Expected result(s) and
impact Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted. The proposal is conducive to increase level of innovation
and research. It will improve the overall efficiency of the innovation efforts,
by addressing fragmentation and achieving critical mass. In addition, it will
generate value by capitalizing on existing research and boosting its market relevance
as well as by providing supply-side improvements in the innovation process. A
strong element of the activity of the EIT is to encourage changes to higher
education provision in the EU, in particular though an EIT quality label for
post-graduate courses. This will positively affect cross-border educational
provisions and improve access to relevant courses. Owing to the multi- and cross-disciplinary approach
adopted in the KICs, the sectors of EIT priority fields will potentially engage
with the EIT. The territorial impacts of the EIT are likely to be significant.
Regions which are the site for co-location centres will have opportunities to
gain positive benefits through economies of agglomeration and the reaping of
positive externalities. These opportunities will be fostered if a close
cooperation is established between the KIC partners in the regions and the
authorities and organisations involved in designing and delivering the Regional
Innovation Strategies. The Commission Staff Working Paper on the impact
assessment of EIT (IA) accompanying this legislative proposal contains more
detailed information. 1.4.4. Indicators of results and
impact Specify the
indicators for monitoring implementation of the proposal/initiative. To measure achievement of the EIT's specific
objectives, a set of indicators are set out in the Regulation XXX of the
European Parliament and of the Council establishing Horizon 2020. To complement
this set of indicators, the achievement of the operational objectives of the
EIT will be measure by the following set of indicators: To integrate the knowledge triangle (of research, innovation and education) to create economic and social value and to enhance the returns from greater levels of collaboration and co-operation. To strengthen existing and potential centres of research, innovation and educational excellence in the EU to produce globally competitive centres of activity with global reputations for excellence To exploit the underutilised potential of the EU’s research strengths to deliver greater returns in the product and labour markets. || – 540 organisations from universities, business and research closely cooperating within integrated KICs; – 80 additional organisations joining already designated KICs; – 9 agreements concerning management and use of intellectual property within the KICs. – 8.890 billion billion Euros from other than EIT financial sources mobilised, corresponding to 75% funding of the total KICs budget (leverage effect of public and private sources); To enhance the attractiveness and commercial relevance of post-graduate education opportunities to attract, develop and retain appropriate skills across the EU. || – 25 entrepreneurial curricula developed; – 85 education and training modules organised, including EIT labelled degrees To develop effective collaborative linkages between centres of excellence to create a critical mass for advanced innovation and education. || – 3 KICs in the "cruising speed", 3 in the "development" and 3 in the "start up/development" phase. – 45 KIC's co-location centres established providing for face-to-face cooperation; To promote the development of innovative products and processes where market failures lead to a sub-optimal provision. || – 600 start-ups and spin-offs created by KICs students/researchers/professors; – 6000 innovations in existing businesses developed by KIC students/researchers/professors; – 3000 licences and consultancy services. To strengthen the capacity for entrepreneurship across the EU to create new business activity and increased realisation of the potential value of research and educational outputs. || – 10.000 students in EIT Master degrees courses; – 10.000 students in EIT PhDs degrees courses; – 20.000 students and teachers trained on non-degree entrepreneurial courses; – 100% of degree students have performed geographical mobility and mobility between academia and business; – 25% of the teachers have completed international mobility or mobility between academia and business; – at least 25% students and teachers should be recruited internationally. To address disparities in innovation capacity across the EU by developing and sharing the knowledge of the returns to the new models of innovation practices and governance || – 600 organisations, not participating in the KICs, benefiting from EIT dissemination and outreach activities; – 40 best practices events organised by the EIT/KICs; – 2.500 individuals benefiting from KICs best practices through the fellowship schemes. 1.5. Grounds for the
proposal/initiative 1.5.1. Requirement(s) to be met in
the short or long term –
Consolidate the three existing KICs[9] fostering their growth, impact and sustainability, –
Gradually develop towards new KICs securing their selection and delivery. It is foreseen to expand the
number of KICs by three new KICs in 2014 and another three in 2018. –
Enhance EIT's impact via knowledge sharing,
dissemination, outreach and international exposure.
Built on the experience of excellent KICs, the EIT - through targeted
dissemination and knowledge sharing measures will ensure that these experiences
are being shared beyond the KICs and thereby promote a fruitful process of
mutual learning and faster uptake of new innovation models across the whole
Union and all its Member States. 1.5.2. Added value of EU
involvement The EIT
explicitly links the full innovation cycle from education and knowledge
creation to innovative approaches in new and existing companies. Its approach
represents a number of elements by which it brings true added value at EU
level: ·
Overcoming fragmentation via long-term integrated partnerships and achieving critical mass
through its European dimension. Building on existing cooperation initiatives,
the EIT brings the selected partnerships in the KICs to a more permanent and
strategic level. KICs allow world-class partners to unite in new
configurations, optimize existing resources, access new business opportunities
via new value chains addressing higher risk, larger scale challenges. Moreover,
while there are a significant number of centres of excellence across EU Member
States, they often do not attain the critical mass for global competition
individually. The KICs' co-location centres offer strong local actors the
opportunity to closely connect to other excellent partners within the overall
strategic framework offered by the KIC as a whole, thereby allowing them to act
and be recognized globally. ·
Enhancing the impact of investments on
education, research and innovation and testing new ways for innovation
governance: The EIT acts as a catalyst, adding
value to the existing research base, by accelerating the take-up and
exploitation of technologies and research outcomes. Innovation activities
contribute in turn to align and leverage research investments and to make
education and training activities responsive more to business needs. On this
basis, a virtuous, highly interactive process can be generated. To this end,
the EIT has been equipped with a substantial degree of flexibility to test out
new innovation models, allowing for true differentiation in the KICs'
governance and funding KICs' models and quick adaptation to better cope with
emerging opportunities in the respective fields. ·
Nurturing talent across borders and fostering
entrepreneurship through knowledge triangle integration: The EIT nurtures people-driven innovation and puts students,
researchers, and entrepreneurs at the heart of its efforts. The EIT provides
new career paths between academia and the private sector and innovative schemes
for professional development. The EIT label attached to innovative KICs'
Masters and PhD programmes will contribute to creating an internationally
recognized brand of excellence helping to attract talent from Europe and
abroad. Entrepreneurship is fostered through a new generation of world-class
students, equipped with the knowledge and attitudes to turn ideas into new
business opportunities, thereby contributing to an effective exploitation of
knowledge and appropriation of the returns on investments by firms. 1.5.3. Lessons learned from
similar experiences in the past The EIT has
successfully completed its initial phase, which was dedicated to setting up the
EIT decision making and executive functions – Governing Board and Headquarters
– as well as the operational arm, the Knowledge and Innovation Communities
(KICs). For more
information, please read the "Proposal for a Decision of the European
Parliament and of the Council on the Strategic Innovation Agenda for the
EIT". From a
financial view point, the main learnt aspects from the initial set up of KICs
are the following: ·
The EIT funding mode which builds on joint
strengths and resources of existing excellent organizations with the EIT
funding acting as a catalyst to leverage and pool together supplementary
financial resources from a wide range of public and private partners seems
appropriate. Consequently, the EIT funding is foreseen only for "KIC added
value activities", in particular education, entrepreneurship and business
creation projects of the KICs, which top up investment in well-established
activities (eg. existing research projects). ·
The KICs go through various development phases
with different characteristics as to the value of their total budgets. Their
need for funding and the absorption capacity is relatively limited at the very
beginning, during the set-up phase, but develops substantially over the
following years. The fifteen-year life timeframe of the KIC covers the
following phases: –
"setting-up" phase of 2 years: it is a
time for a KIC to get organised, set up necessary financial and legal
structures as well as recruit crucial staff. During this period the EIT
contribution will assure on average 35% of individual KIC's budget
corresponding to 28 million euro. –
"development" phase of 3 years: it is
assumed that the KIC has been already established and begun implementing its
core activities, however still dynamically expanding in terms of the scope of
activities and the number of partners. During this period the EIT contribution
will assure around 26% of individual KIC's budget corresponding to 154,7
million euro. –
"cruising speed" phase of 6 years: a
KIC has a stable structure with clearly defined scope of activities. During
this period the EIT contribution will assure on average 25% of individual KIC's
budget corresponding to 475,5 million euro. –
"achieving sustainability" phase of 4
years: the activities of KIC are similar to cruising speed phase while the EIT
contribution will gradually decrease requiring a KIC to assure other sources of
revenues. During this period the EIT contribution will assure on average 22% of individual KIC's budget
corresponding to 258 million euro. 1.5.4. Coherence and possible
synergy with other relevant instruments The inter-relationships between
research, innovation and education are increasingly being recognised within EU
initiatives and programmes. There is great potential for mutually reinforcing
actions, and the strategic framework provided by Horizon 2020 will
further ensure these synergies are better exploited. The EIT will strongly contribute to
the objectives set out in Horizon 2020, in particular by addressing societal
challenges in a complementary way to other initiatives in these areas. The EIT
will thereby significantly contribute to promoting the framework conditions
that are needed to realise the innovative potential of EU research and to promote
the completion of the European Research Area (ERA). Moreover, the EIT brings a fully
fledged education dimension to the EU's research and innovation policy. Via
innovative, entrepreneurial education it plays an important bridging role
between the research and Innovation Framework and education policies and
programmes and provides the continuity and longer term institutional commitment
needed to deliver sustainable changes in higher education. Moreover, there are opportunities for
mutually reinforcing interaction with the Union's Cohesion Policy by
addressing the linkages between the local and global aspects of innovation.
Co-location centres provide for cross-border collaboration within and outside
of the KIC networks and are well positioned to capitalise and benefit from
various funding schemes from their respective regions. While opportunities for synergies
differ depending on the thematic area of a KIC, a number of initiatives and
programmes at EU level seem particularly prone to offering benefits from
cooperation and coordination. Joint Programming Initiatives, a key instrument for addressing fragmentation in research, should
provide the nucleus of the pan-European KIC research base. In turn, KICs can
speed up and foster the exploitation of excellent public research pooled
together by the JPIs, thereby addressing fragmentation in innovation. The Joint
Technology Initiatives (JTIs) and the newly established Public and Private
Partnerships provide platforms for promotion of large-scale industry-driven
research and enhance the development of major technologies. KICs can help
catalysing these major research investments to boost technology transfer and
commercialisation and to develop new ventures within existing business via
entrepreneurial top talent. Through its knowledge triangle approach, the EIT
will complement ERC investment on world-class frontier research by addressing
the whole innovation chain from ideas to application and exploitation and
provide additional opportunities in innovation and exposure to entrepreneurship
to Marie Curie researchers and Erasmus for all students. The upcoming European Innovation
Partnerships will provide overarching frameworks to facilitate alignment
and synergies among existing supply and demand-driven research and innovation
instruments and policies. For interactions with the EIPs, the
distributed nature of the KICs provides a structured network of practitioners
well placed to identify framework conditions and best practise on policy,
regulatory or standardisation issues having an impact in a given sector or
challenge. 1.6. Duration and financial
impact Proposal/initiative of limited duration –
X Proposal/initiative in effect from 01/01/2014
to 31/12/2020 –
Financial impact from 01/01/2014 to
31/12/2022 –
¨ Proposal/initiative of unlimited duration –
¨ Financial impact from [DD/MM]YYYY to [DD/MM]YYYY 1.7. Management mode(s)
envisaged[10] Centralised direct management by the Commission X Centralised indirect management
with the delegation of implementation tasks to: –
¨ executive agencies –
X bodies set up by the European Union[11] –
¨ national public-sector bodies/bodies with public-service mission –
¨ persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation ¨ Shared management with the Member States ¨ Decentralised management with third countries ¨ Joint management with international organisations (to be specified) 2. MANAGEMENT MEASURES Simplification and flexibility are deemed
critical for the success of the EIT and involvement of the business community.
After the initial period, there is still room for the EIT to exploit its
flexibility to a full, in order to push simplification further. Simplification, implemented in a
responsible and accountable manner, is a must for the EIT to achieve effective
results and promote innovation breakthroughs. The EIT considers simplification
as dynamic process, embedded in the EIT operation and an integral part of its
supporting function towards the KICs. To this end, the EIT will strive to
adapt, improve and streamline its internal processes and constantly seek for
simplified approaches that can help the KICs to cope with new, emerging needs
and foster their impact. Operational simplification: Through KICs' experimentation and
experience, the EIT will deliver a simplification agenda in key areas, including
benchmarks to assess progress, and report to the Commission on its
implementation progress through the Triennial Work Programme. The Commission will monitor closely the
EIT's ability to deliver the simplest possible agreements and principles for
the funding and management of KICs activities, based on the EIT's own
simplification agenda. Financial simplification: Since one of the objectives of the EIT is
to facilitate private sector participation, the EIT Financial Rules[12], which are based on the
Framework Financial Regulation with specific derogations granted by the
Commission, need to reflect its objectives and the need for sufficient
operational flexibility to be attractive to its business and research/academic
partners. On the another hand, as provided under
Article 1 of the Regulation laying down the rules for participation and
dissemination under Horizon 2020, rules which depart from those laid down in
this Regulation, or under Regulation (EU No XX/2012 (the Financial Regulation)
will be requested, if needed, taking into account the provisions of the EIT
Regulation and the specific needs of the EIT. (i.e. call for designation and
selection of the new waves of KICs instead of call for proposals). In order to reach the objective of
simplification, a number of measures will be implemented in the grant
management process, in line with the simplification of funding rules proposed
under Horizon 2020. This will be provided through: ·
Simplified reimbursement of real direct costs,
with a broader acceptance of KICs’ usual accounting, including the eligibility
of certain taxes and charges; ·
The possibility of using unit personnel costs
(average personnel costs) for KICs for which this is their usual accounting
method, and for SME owners without a salary; ·
Simplification of time-recording by providing a
clear and simple set of minimum conditions, in particular abolition of
time-recording obligations for staff working full time/more than half time on
the EU project; ·
One single reimbursement rate for all KICs; ·
One single flat rate covering indirect costs as
a general rule; ·
System of unit costs and flat rates for scholarships; ·
A control strategy, as described in section
2.2.2, achieving a balance between trust and control will further reduce the
administrative burden for KICs. ·
In accordance with the Rules for Participation
proposed under Horizon 2020, the value of contributions in kind provided to the
KICs by third parties may be eligible, which constitutes a major change
compared to the current cost eligibility rules. 2.1. Monitoring and reporting
rules Specify frequency
and conditions. Rules for monitoring and reporting
will be established in view of efficiency and cost effectiveness, based on the
experience gained. It will be based on a comprehensive, well-timed and
harmonised strategy, with a strong focus on outputs, results and impacts (see section
1.4.4 of this document). MONITORING The Commission has reinforced its
efforts in supporting the EIT in establishing a sound and solid
results-oriented monitoring system. The monitoring system should acknowledge the
independence of the EIT and the autonomy of the KIC and their contractual
relations. At the same time, the monitoring system should ensure full
accountability of the EIT and full flexibility of KIC in pursuing their
business plans. The Commission will cooperate with the EIT in order to measure
the progress achieved. The EIT monitoring will be set up in
line with the following four layers: 1. Monitoring of a KIC on the
basis of its individual targets and Key Performance Indicators (KPIs)
stipulated in the KIC business plans. A substantial degree of leeway to the KICs
will be given (bottom-up approach) to define their internal strategies and
organisation as well as to define their activities and mobilise the resources
needed. 2. The EIT monitoring of all KICs,
which will focus on a series of EIT’s strategic objectives, as identified in
the EIT Scoreboard, covering a common set of indicators across all KICs. The
Scoreboard will focus on achievements, outputs and generation of both economic
and societal impact of all KICs. The EIT Scoreboard will measure the KICs performance
against particular objectives Moreover, as proposed in the revision of the
legal basis, prior to launching the new calls, the EIT will publish the
criteria and procedures for the financing, monitoring and evaluating of the
activities of the KICs. 3. The monitoring of the EIT's own
activities, which will combine quantitative and qualitative indicators in a
medium-term perspective. It will measure for instance the EIT's performance in
providing support to the KICs, the intensity and coverage of outreach (the
number of best practice events), dissemination and international activities and
the impact of the EIT in the wider European policy innovation, research and
education agendas (for example % adoption of EIT tested models by other
initiatives). 4. Monitoring and Evaluation of
the EIT as an EU innovation institute under Horizon 2020, which will be
done be the Commission in accordance with the provisions of the EIT Regulation and
as also described under Articles 25 and 26 of the
Regulation XXX of the European Parliament and of the Council on Horizon 2020 of
XXX. The evaluations are foreseen for 2016 (only the
EIT), 2017 (EIT interim Evaluation as part of Horizon 2020) and 2023 (EIT
ex-post Evaluation as part of Horizon 2020). Moreover, it is proposed that the
Commission, at any time, may carry out further evaluations on themes or topics
of strategic relevance. The synergies of EIT planned activities with other EU
programmes should be assured via the assessment by the Commission of the EIT
Triennial Work Programme. REPORTING As the EIT is a Union body receiving
a subsidy from the European Union budget, from the financial management and
control perspective, the EIT will be treated as other bodies set up under the
Treaty and generally referred to as Union agencies. This means that point [17]
of the Inter-institutional Agreement of XX/YY/201Z between the European
Parliament, the Council and the Commission on cooperation in budgetary matters
and on sound financial management, for the budgetary authority during the
annual budgetary procedure applies to the EIT. As regards the reporting on the implementation
of the monitoring system: ·
The Triennial Work Program (TWP) of the EIT will
identify relevant priorities and targets within the strategic objectives of the
EIT for the following year (n+1). KICs should be consulted on priorities and
targets before the final adoption of the TWP in order to be able to fully
integrate them in their relevant annual Business Plans. ·
The Annual Activity Report for the previous year
(n-1) will include the results of the monitoring process for n-1 and describe
how and to what extent objectives have been achieved. The Annual Activity
Report should take account of the Cost and Performance Reports of the KIC for
the previous year (n-1) of their operations. The KICs reporting conditions
have been established in the framework of the Framework Partnerships Agreement
and Annual Grant Agreements (performance and cost reporting). On the other
hand, in order to increase the efficiency and cost-effectiveness and based on
the experience gained by the EIT during the implementation of the annual grant
agreements by the KICs, a number of simplifications measures will be
implemented in the grant management process, which will have as major goals to
reduce the administrative workload for KICs and to increase the quality of data
gathered. On the other hand, as explained above, a common set of indicators
across all KICs through the Scoreboard will be implemented, with focus on
achievements, outputs and generation of both economic and societal impact of
all KICs. 2.2. Management and control
system 2.2.1. Risk(s) identified Taking into account the clear need to
manage the European budget in a efficient and effective manner, and to prevent
fraud and waste, the EIT when implementing the budget, will establish an
internal control system that will give reasonable assurance that the error over
the course of the multiannual expenditure period, is within a range of 2-5%,
and ideally around 3.5%, as proposed under the Regulation laying down the rules
for participation and dissemination under Horizon 2020, under which basis the
internal control system and the audit strategy will be built on. The EIT internal control framework will
also built on: the Commission Internal Control Standards, EIT own procedures,
ex-ante checks of 100% of KICs' declared expenditures financed by the EIT,
audit certificates, ex-ante certification of cost declaration methodologies,
ex-post audits on a sample of claims, projects results and external evaluation. According with Article 38(4) of the
Financial Rules of the EIT, the authorising officer has put in place, in
compliance with the standards adopted by the Governing Board on the basis of
equivalent standards laid down by the Commission, and having due regard to the
risks associated with the management environment and the nature of the action
financed, the organisational structure and the internal management and control
systems and procedures suited to the performance of the EIT duties. The Risk Management Exercise is done on
a yearly basis in order to mitigate any risks linked with the implementation of
the whole EIT activities. In this context, the EIT should take into account,
when establishing the internal control framework, the risks of the activities
implemented, the specific characteristics of the population and recurrence of
beneficiaries (actually 3 KICs), the frequency of the grants awarded (annual)
and the size of transactions (see point 1.5.3 on the fifteen
life time frame of the KIC and the different phases of development) and avoiding
any overlap of funding. Taking into account that the first
annual grants to KICs were awarded on 2010, the EIT has not yet results of
error rates. However, during the implementation of the current grant agreements,
the following categories of risks have been identified: –
errors derived from the complexity of rules; –
errors derived from the interpretation of rules; –
respect of eligibility rules; –
supporting documents available; –
wrong calculation of indirect costs. The simplification measures described
above will also contribute to the improvement and reduction of error rates. 2.2.2. Control method(s) envisaged As described under Article 23 of the Regulation XXX of the European Parliament and of the Council on
Horizon 2020 of XXX, the control system set up by the EIT shall provide
reasonable assurance of achieving adequate management of the risks relating to
the effectiveness and efficiency of the operations, assuring the legality and
regularity of the underlying transactions and achieving a balance between trust
and control. It will further reduce the administrative burden for KICs As part of the control system that
will be implemented by the EIT, the audit strategy shall be based on the
financial audit of a representative sample of expenditure across the whole EIT
budget, notably through the annual grants awarded to KICs in a yearly basis.
This representative sample may be complemented by a selection based on an
assessment of the risks related to expenditure during the ex-ante checks of
100% of claims and the experience obtained will be used in the assessment of
the control framework of risk assessment for grants implementation. Audits of
expenditure shall be carried out in a coherent manner in accordance with the principles
of economy, efficiency and effectiveness. As regards the internal control
Framework of the EIT, The EIT has developed and overall strategy, including a
supervisory structure, on the implementation of internal control processes that
support the entire expenditure life cycle. Senior management ensures that this
overall strategy as well as the Standardisation and Simplification Initiative
(SSI) and its implementation are formally accepted by the Governing Board. The Standardisation and Simplification
Initiative (SSI) implemented by the EIT, follows a threefold approach: –
Standardised EIT planning exercise and work
programme; –
Link with the Risk-Management exercise; –
Develop Standard Operating Procedures (SOP). The Standard Operating Procedures
(SOP) are detailed, written instructions to achieve uniformity of the
performance of a specific process; the instructions usually cover more than one
task or area within the EIT, Unit, Section or teams. In the framework of the
simplification with a focus on performance, and in order to increase the
efficiency, regularity and reduce any possible error rate of the activities
implemented by the EIT related with the KICs activities, the use of grants in
the form of lump sums, flat rates and scales of unit costs will be proposed in
line with the profile of the activities implemented by the KICs, as proposed in
the Regulation XXX of the European Parliament and of the Council on Horizon
2020 of XXX . As regards audit certificates on the financial statements to be
provided by the KICs and the different partners, by which independent auditors
to certify the legality and conformity of the amounts declared in the financial
reports, the threshold for such certificates will be established at the level
defined under Article 28 of the Regulation laying down the rules for
participation and dissemination under Horizon 2020. All other provisions
defined on this regulation will be also applied as regards the certificates on
the methodology and the certifying auditors. 2.3. Measures to prevent fraud
and irregularities 2.3.1 Specify existing or
envisaged prevention and protection measures. As described under Article 24 of the Regulation XXX of the European Parliament and of the Council on
Horizon 2020 of XXX, the EIT shall take appropriate measures ensuring that the
financial interest of the union are protected. The proposals for Horizon 2020
have been subject to fraud proofing and an assessment of their impact. Overall
the measures proposed should have a positive impact of the fight against fraud,
especially the greater emphasis on risk based audit and reinforce evaluation
and control. The EIT is determined to fight
against fraud at all stages of the grant management process and other
activities implemented. All decisions adopted and
contracts concluded by the EIT, provide explicitly that the European Antifraud
Office (OLAF) and the Court of Auditors may carry out on-the-spot inspections
of the documents of all contractors and sub-contractors which have received Union
funds, including at the premises of the final beneficiaries, in accordance with
the procedures laid down in Council Regulation (Euratom, EC) No 2185/96 of 11
November 1996 concerning on the spot check and inspections[13]. OLAF is entitled to carry out
internal investigation in the EIT, and the Governing Board has signed an
agreement on acceding to the inter-institutional Agreement of 25 May 1999
between "the European Parliament, the Council and
the Commission" concerning investigations by OLAF[14]. The EIT also has taken a decision concerning
the terms and conditions for internal investigations in relation to the
prevention of fraud, corruption and any illegal activity detrimental to the Union's
interests. 3. ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE 3.1. Heading(s) of the multiannual
financial framework and expenditure budget line(s) affected ·
Existing expenditure budget lines In order of multiannual financial framework
headings and budget lines. Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution Number 15.02.11 European Institute of Innovation and Technology (EIT) || DA/NDA ([15]) || from EFTA[16] countries || from candidate countries[17] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation 1 || 15 02 11 01 “Governing Structure” 2008/2013 || DNA || YES || NO || NO || NO 1 || 15 02 11 02 “Knowledge and Innovation Communities (KICs) and other operational activities" 2008/2013 || DA || YES || NO || NO || NO ·
New budget lines requested In order of multiannual financial framework
headings and budget lines. Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution || DA/NDA ([18]) || from EFTA[19] countries || from candidate countries[20] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation || 15 07 03 01 “Governing Structure” 2014/2020 || DNA || YES || NO || NO || NO || 15 07 03 02 “Knowledge and Innovation Communities (KICs) and other operational activities" 2014/2020 || DA || YES || NO || NO || NO 3.2. Estimated impact on
expenditure 3.2.1. Summary of estimated impact
on expenditure EUR million (to 3 decimal places) in current prices Heading of multiannual financial framework: || Number || 1 – Administrative and Operational Expenditure EIT The EIT || || || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year 2021 || Year 2022 || TOTAL 2014-2022 Title 1 - 15 07 03 01 “Governing Structure” 2014/2020 || Commitments || (1a) || 5,837 || 6,386 || 7,949 || 8,108 || 8,730 || 8,905 || 9,083 || || || 54,998 Payments || (2a) || 5,837 || 6,386 || 7,949 || 8,108 || 8,730 || 8,905 || 9,083 || || || 54,998 Title 2 - 15 07 03 01 “Governing Structure” 2014/2020 || Commitments || (1b) || 1,592 || 1,732 || 1,987 || 2,027 || 2,183 || 2,226 || 2,271 || || || 14,017 Payments || (2b) || 1,592 || 1,732 || 1,987 || 2,027 || 2,183 || 2,226 || 2,271 || || || 14,017 Title 3 - 15 07 03 02 “Knowledge and Innovation Communities (KICs) and other operational activities" 2014/2020 || Commitments || (1c) || 267,498 || 324,047 || 389,375 || 472,279 || 497,460 || 554,832 || 599,777 || || || 3105,268 Payments || (2c) || 232,723 || 281,921 || 338,756 || 410,883 || 432,790 || 482,704 || 521,806 || 299,888 || 103,796 || 3105,267 TOTAL appropriations for the EIT || Commitments || =1a+1b+1c || 274,926 || 332,165 || 399,312 || 482,414 || 508,373 || 565,963 || 611,130 || || || 3174,283 Payments || =2a+2b+2c || 240,151 || 290,039 || 348,693 || 421,018 || 443,703 || 493,835 || 533,159 || 299,888 || 103,796 || 3174,283 Heading of multiannual financial framework: || 1 || " Administrative expenditure DG EAC" EUR million (to 3 decimal places) in current prices || || || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 2014-2020 DG: EAC || Human resources – Establisment Plan - 15.01.05.01 || 0,472 || 0,481 || 0,491 || 0,501 || 0,511 || 0,521 || 0,531 || 3,507 Human resources – Establisment Plan - 15.01.05.02 || 0,145 || 0,148 || 0,151 || 0,154 || 0,157 || 0,161 || 0,164 || 1,081 Other administrative expenditure - 15.01.05.03 || 0,371 || 0,378 || 0,551 || 0,563 || 0,401 || 0,497 || 0,597 || 3,359 TOTAL DG EAC || || 0,988 || 1,008 || 1,194 || 1,217 || 1,069 || 1,179 || 1,292 || 7,947 TOTAL appropriations under HEADING 1 EAC of the multiannual financial framework || (Total commitments = Total payments) || 0,988 || 1,008 || 1,194 || 1,217 || 1,069 || 1,179 || 1,292 || 7,947 EUR million (to 3 decimal places) in current prices || || || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018* || Year 2019* || Year 2020* || Year 2021 || Year 2022 || TOTAL 2014-2022 TOTAL appropriations under HEADINGS 1 of the multiannual financial framework || Commitments || 275,914 || 333,173 || 400,505 || 483,632 || 509,442 || 567,142 || 612,422 || || || 3182,230 Payments || 241,139 || 291,047 || 349,887 || 422,236 || 444,772 || 495,014 || 534,451 || 299,888 || 103,796 || 3182,230 * An additional amount of EUR 1689,006
million shall be made available for the years 2018-2020 pro-rata from the
budgets of the Societal challenges and Leadership in enabling and industrial
technologies, on an indicative basis and subject to the review set out in
Article 26(1) of Regulation XX/XXX of Horizon 2020. 3.2.2. Estimated
impact on operational appropriations –
¨ The proposal/initiative does not require the use of operational
appropriations –
X The proposal/initiative requires the use of
operational appropriations, as explained below: Commitment appropriations in EUR million (to 3 decimal
places) in current prices Indicate objectives and outputs ò || || || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 2014 - 2020 OUTPUTS || Type of output[21] || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost || SPECIFIC OBJECTIVE No 1[22] Consolidation and fostering growth and impact of existing KICs || - Output || KICs || || 3 || 256.89 || 3 || 281.83 || 3 || 284.49 || 3 || 313.77 || 3 || 214.31 || 3 || 183.36 || 3 || 156.70 || 21 || 1 691,346 || Sub-total for specific objective N°1 || 3 || 256.89 || 3 || 281.83 || 3 || 284.49 || 3 || 313.77 || 3 || 214.31 || 3 || 183.36 || 3 || 156.70 || 21 || 1 691,346 || SPECIFIC OBJECTIVE No 2 – Gradual development towards new KICs || - Output || KICs || || || || 3 || 25.98 || 3 || 82.81 || 3 || 135.98 || 3 || 232.61 || 3 || 260.17 || 3 || 274.87 || 18 || 1 012,410 || - Output || KICs || || || || || || || || || || 3 || 27.57 || 3 || 87.87 || 3 || 144.31 || 9 || 259,750 || Sub-total for specific objective N°2 || || || 3 || 25.98 || 3 || 82.81 || 3 || 135.98 || 6 || 260.18 || 6 || 348.04 || 6 || 419.17 || 27 || 1 272,160 || SPECIFIC OBJECTIVE No 3 - Enhancing EITs impact via knowledge sharing, dissemination, outreach and international exposure || - Output || || || || 10.61 || || 16.24 || || 22.08 || || 22.52 || || 22.97 || || 23.43 || || 23.90 || || 141.762 || Sub-total for specific objective N°3 || || 10.61 || || 16.24 || || 22.08 || || 22.52 || || 22.97 || || 23.43 || || 23.90 || || 141.762 || TOTAL COST || || 267,50 || || 324,05 || || 389,38 || || 472,28 || || 497,465 || || 554,83 || || 599,78 || || 3 105,268 || 3.2.3. Estimated impact on
appropriations of on EIT human resources 3.2.3.1. Summary –
¨ The proposal/initiative does not require the use of administrative
appropriations –
X The proposal/initiative requires the use of
administrative appropriations, as explained below: EUR million (to 3
decimal places) in current prices || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 2014-2020 Officials (AD Grades) EAC Budget Line: 15 01 05 01 || 0,472 || 0,481 || 0,491 || 0,501 || 0,511 || 0,521 || 0,531 || 3,507 Officials (AST grades)EAC Budget Line: 15 01 05 01 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 Contractual agent EAC Budget Line: 15 01 05 02 || 0,068 || 0,069 || 0,071 || 0,072 || 0,074 || 0,075 || 0,076 || 0,505 Contractual agent EIT Budget Line: 15 07 03 01 || 1,358 || 1,386 || 1,413 || 1,441 || 1,470 || 1,500 || 1,530 || 10,098 Temporary agents EAC Budget Line: 15 01 05 01 || 5,121 || 5,224 || 5,469 || 5,864 || 6,419 || 6,547 || 6,678 || 41,322 Seconded National Experts EAC Budget Line: 15 01 05 02 || 0,077 || 0,079 || 0,081 || 0,082 || 0,084 || 0,086 || 0,087 || 0,576 Seconded National Experts EIT Budget Line: 15 07 03 01 || 0,387 || 0,395 || 0,484 || 0,493 || 0,503 || 0,513 || 0,523 || 3,299 Contribution Host Agreement[23] || -1,560 || -1,560 || 0 || 0 || 0 || 0 || 0 || -3,120 TOTAL || 5,924 || 6,074 || 8,007 || 8,454 || 9,060 || 9,241 || 9,426 || 56,187 3.2.3.2. Estimated requirements of
human resources –
¨ The proposal/initiative does not require the use of human
resources –
X The
proposal/initiative requires the use of human resources, as explained below: –
a) Human resources EIT and DG EAC Estimate to be expressed in full amounts (or at most
to one decimal place) || || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 Establishment plan posts (officials and temporary agents) || || XX 07 03 01 (Headquarters and Commission’s Representation Offices) || || || || || || || || || 15 07 03 01 (Delegations) EIT || 63 || 63 || 65 || 67 || 70 || 70 || 70 || || 15 01 05 01 (Indirect research) || 3,5 || 3,5 || 3,5 || 3,5 || 3,5 || 3,5 || 3,5 || || 10 01 05 01 (Direct research) || || || || || || || || || || || || || || || || || || External personnel (in Full Time Equivalent unit: FTE)[24] || || 15 07 03 01 (CA, INT, SNE from the "global envelope") || || || || || || || || || XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || || || || || || || || || XX 01 04 yy [25] || - at Headquarters[26] || || || || || || || || || - in delegations || || || || || || || || || 15 01 05 02 (CA, INT, SNE - Indirect research) || 2 || 2 || 2 || 2 || 2 || 2 || 2 || || 10 01 05 02 (CA, INT, SNE - Direct research) || || || || || || || || || Other budget lines (specify) || || || || || || || || || TOTAL || 68,5 || 68,5 || 70,5 || 72,5 || 75,5 || 75,5 || 75,5 || The human resources required will be met by
staff from the DG EAC who are already assigned to management of the action
and/or have been redeployed within the DG, together if necessary with any
additional allocation which may be granted to the managing DG under the annual
allocation procedure and in the light of budgetary constraints. Description of
tasks to be carried out: Officials and temporary agents DG EAC || - Tasks related to the adoption process of the EIT Budget, in particular: draft budget, transfers; - Preparation of the Commission opinion on the EIT Triennial Work Programme; - Preparation of the position of the Commission observer at the EIT Governing Board meetings; - Preparation of the Commission decision on appointing the members of the EIT Governing Board; - Coordination and alignment with other EU initiatives, in particular Horizon 2020; - Preparation of the Commission position at the EIT Stakeholders Platform; - Organisation of the annual meetings between the EIT-KICs and Commission services; - Preparation of calls for new KICs; - Monitoring and evaluation of the EIT; - Assurance of compliance of the EIT labelled degrees with actions undertaken in the context of Higher Education Area. External personnel DG EAC || - Contribution to the preparation of the Commission opinion on the EIT Triennial Work Programme; - Contribution to the coordination and alignment with other EU initiatives, in particular Horizon 2020; - Contribution of the Commission position at the EIT Stakeholders Platform; - Contribution to the organisation of the annual meetings between the EIT-KICs and Commission services; - Contribution to the preparation of calls for new KICs; - Contribution to the assurance of compliance of the EIT labelled degrees with actions undertaken in the context of Higher Education Area. –
B) Human resources of EIT || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 Establishment plan posts EIT Temporary staff || AD || 27 || 27 || 28 || 29 || 32 || 32 || 32 AST || 11 || 11 || 11 || 12 || 12 || 12 || 12 TOTAL establishment plan posts || 38 || 38 || 39 || 41 || 44 || 44 || 44 Other staff (in FTE) Contract agents (CA) || || 20 || 20 || 20 || 20 || 20 || 20 || 20 Seconded National Experts (SNE) || || 5 || 5 || 6 || 6 || 6 || 6 || 6 Total other staff || || || || || || || || TOTAL EIT STAFF || || 63 || 63 || 65 || 67 || 70 || 70 || 70 Description of
tasks to be carried out: Temporary Agents EIT || - Tasks process of the EIT Budget and with the Simplification Agenda; - Preparation of the new waves of designation and selection of KICs; - Coordination and alignment with other EU initiatives, in particular Horizon 2020; - EIT Stakeholders Platform; - Organisation of meetings and Hearings between the EIT and KICs; - Consolidation of existing KICs; - Monitoring and evaluation of the EIT; - EITs impact via knowledge sharing, dissemination, outreach and international exposure. External personnel EIT || - Contribution to the preparation of the new waves of designation and selection of new KICs; - Contribution to the Entrepreneurial and Education agenda of the EIT; - Contribution to the EIT Stakeholders Platform; - Contribution to the assurance of compliance of the EIT labelled degrees with actions undertaken in the context of Higher Education Area. In the light of the Establishment Plan
regarding the current Multiannual Financial Framework, for the EIT, as newly
created agency, it was foreseen a total staff of 61 TFEs covering the period
until 2013 (corresponding to 37 AT + 20 CA + 4 SNE). In this context, DG EAC as
parent DG, will closely follow-up the implementation by the EIT of the current
Establishment Plan. On the other hand, during the annual
preparation of the Budget, the parent DG will request to the Budgetary
Authority only the necessary staff in order to achieve the EIT objectives. It is also important to underline and
recognize the significant increase in workload and competences for the EIT in the
context of the revision of the actual EIT Regulation and the SIA, as well as
the importance of the new budget that the EIT will implement. 3.2.4. Compatibility with the
current multiannual financial framework –
X Proposal/initiative is compatible the current
multiannual financial framework. –
¨ Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework. Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts. –
¨ Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[27]. Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts. 3.2.5. Third-party contributions –
The proposal/initiative does not provide for
co-financing by third parties –
X The proposal/initiative provides for the
co-financing estimated below: Appropriations in
EUR million (to 3 decimal places) || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Total Host Agreement with the Hungarian Government* || 1.560 || 1.560 || 0 || 0 || 0 || 0 || 0 || 3.120 TOTAL appropriations funded || 1.560 || 1.560 || 0 || 0 || 0 || 0 || 0 || 3.120 * The Host Agreement foresee that the
Hungarian Government covers the rental fee of the EIT premises during 20 years
(2011-2030) and the wage costs of 20 employees during 5 years (2011-2015)
corresponding to a cash contribution of 1,560 million Euro by year. 3.3. Estimated impact on
revenue –
X Proposal/initiative has no financial impact
on revenue. –
¨ Proposal/initiative has the following financial impact: –
¨ on own resources –
¨ on miscellaneous revenue EUR million (to 3
decimal places) Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[28] Year N || Year N+1 || Year N+2 || Year N+3 || … insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6) Article …………. || || || || || || || || For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected. Specify the method for
calculating the impact on revenue. [1] OJ C. p. [2] OJ C. p. [3] http://ec.europa.eu/education/eit/eit-consultation_en.htm [4] OJ C , , p. . [5] OJ C , , p. . [6] OJ C. p. [7] ABM: Activity-Based Management – ABB: Activity-Based
Budgeting. [8] As referred to in Article 49(6)(a) or (b) of the
Financial Regulation. [9] In 2009 the EIT designated three KICs in following
areas: climate change adaptation and mitigation (Climate KIC), the future
information and communication society (EIT ICTLabs) and sustainable energy (KIC
InnoEnergy). [10] Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html [11] As referred to in Article 185 of the Financial
Regulation. [12] Commission Decision C(2009) 2661 of 3 March 2009
granting consent to the derogations requested by the European Institute of
Innovation and Technology from Regulation (EC, Euratom) No 2343/2002 on the
Framework Financial Regulation for the bodies referred to in Article 185 of
Council Regulation (EC, Euratom) No 1605/2002 [13] OJ L 292, 15.11.1996, p. 2 [14] Decision of the Governing Board of the EIT of 20
February 2009. [15] DA= Differentiated appropriations / DNA=
Non-Differentiated Appropriations [16] EFTA: European Free Trade Association. [17] Candidate countries and, where applicable, potential
candidate countries from the Western Balkans. [18] DA= Differentiated appropriations / DNA=
Non-Differentiated Appropriations [19] EFTA: European Free Trade Association. [20] Candidate countries and, where applicable, potential
candidate countries from the Western Balkans. [21] Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.). [22] As described in Section 1.4.2. "Specific
objective(s)…" [23] The Host Agreement foresee that the Hungarian
Government covers the wage costs of 20 Contractual Agents employees during 5
years (2011-2015) corresponding to a cash contribution of 1,560 million Euro by
year. [24] CA= Contract Agent; INT= agency staff ("Intérimaire");
JED= "Jeune Expert en Délégation" (Young Experts in
Delegations); LA= Local Agent; SNE= Seconded National Expert; [25] Under
the ceiling for external personnel from operational
appropriations (former "BA" lines). [26] Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF). [27] See points 19 and 24 of the Interinstitutional
Agreement. [28] As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25% for collection costs.