EUROPEAN COMMISSION

Brussels, 11.7.2019

COM(2019) 331 final

2019/0151(COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the European Institute of Innovation and Technology (recast)

(Text with EEA relevance)

{SEC(2019) 275 final} - {SWD(2019) 330 final} - {SWD(2019) 331 final}

EXPLANATORY MEMORANDUM

CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

The Regulation of the European Parliament and of the Council establishing the European Institute of Innovation and Technology (EIT Regulation 1 ), adopted in 2008, sets out its mission and tasks and the framework for its functioning. The Regulation was amended in 2013 2 in order, inter alia, to align it with Horizon 2020 3 .

For the period 2021-2027, Horizon Europe will be the Union programme funding the EIT. The EIT is therefore an integral part of the Commission proposal establishing Horizon Europe and one of the three components of its "Innovative Europe" pillar. The Horizon Europe proposal sets out the budget for the EIT for the next MFF as well as its rationale, added value, areas of intervention and broad lines of activity. However, the Horizon Europe proposal itself does not provide the legal basis for continuing the EIT operations as from 2021. The legal base of the EIT remains the EIT Regulation.

•Consistency with existing policy provisions in the policy area

For the period 2014-2020, the EIT's objectives, rationale, EU added value, budget, broad lines of activity and performance indicators are defined in the Horizon 2020 Regulation. The EIT Regulation sets out, in parallel, the mission and tasks for the EIT along with the framework for its functioning. The strategic, long-term priority fields and financial needs of the EIT for each seven-year period are laid down in the SIA 5 .

•Consistency with other Union policies

As described above, the Commission proposal for a recast EIT Regulation emphasises the SIA’s role to foster synergies not only with the Union framework programme supporting research and innovation but also with other relevant Union programmes of the respective MFF. Most importantly, it is for the SIA to create appropriate synergies and complementarities between the EIT activities and other Union initiatives, policies and instruments. The EIT will have targeted activities to that regard. Furthermore, the proposal reinforces the role of the Member States’ Representatives Group, which will help ensure synergies and complementarities of EIT and KIC activities with national programmes and initiatives.

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

The EU has a shared competence in industry policy based on Article 173 TFEU (Title XVII). According to Article 173(1), the Union and the Member States shall ensure that conditions necessary for the competitiveness of the Union's industry exist. For that purpose, in accordance with a system of open and competitive markets, their action shall be aimed also at fostering better exploitation of the industrial potential of policies of innovation, research and technological development. Article 173(3) foresees that the European Parliament and the Council, acting in accordance with the ordinary legislative procedure referred to in Article 294, may decide on specific measures in support of action taken in the Member States to achieve the mentioned objective, excluding any harmonisation of the laws and regulations of the Member States. This provision is the legal basis of the current EIT Regulation and of the SIA 2014-2020.

The proposed reinforcement of the activities of the EIT, including in the areas of education and regional dimension, is innovation-driven and aims to fulfil the objective set out in Article 173 TFEU.

•Subsidiarity and proportionality

The proposal for a recast EIT Regulation respects the principles of subsidiarity and proportionality. It does not go beyond what is required for achieving the Union's objectives and provides a clear EU addedvalue in terms of economies of scale, scope and speed of investments in research and innovation areas, compared to national and regional initiatives and solutions. Moreover, EU action would not interfere with purely domestic scenarios or require harmonisation of the laws and regulations of the Member States.

The EIT has a unique way of building EU-wide innovation ecosystems of education, research, business and other stakeholders 6 . Cooperation activities supported by the EIT lead to an increased quality of action, innovation and internationalisation of KIC partners and organisations, the creation of cross-border, multidisciplinary networks, more cross-sectoral cooperation and geographical outreach.

The EIT is also the sole instrument within Horizon Europe with a distinct focus on education as a key driver of innovation, growth and competitiveness.

RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

External evaluation

The proposal builds on the external evaluation of the EIT carried out in 2017 which confirmed that the rationale behind the establishment of the EIT is valid and that its model of innovation-driven knowledge triangle integration remains relevant. The EIT model targets structural weaknesses of the innovation capacities in the EU (in key thematic areas), such as the limited entrepreneurial culture, low level of cooperation between academia and industry and insufficient development of human potential, and aims to contribute to closing the innovation gap between the EU and its key competitors.

Open Public Consultation

The proposal takes into account the results of the Open Public Consultation (OPC) that was run as a component of the European Commission’s Impact assessment to support its proposals for the revision of the EIT Regulation and for a new Strategic Innovation Agenda of the EIT for 2021-2027. The purpose of the OPC was to gather information, opinions and views from a wide range of stakeholders on 1) the challenges and opportunities in the European research and innovation area, 2) the policy objectives of the EIT, and 3) the policy options to tackle the challenges.

This proposal is supported by an Impact Assessment covering both the proposals for an amendment to the EIT Regulation (recast) and for an EIT’s SIA for the period 2021 – 2027.

That impact assessment builds on the Impact Assessment carried out for Horizon Europe. The positive opinion of the Regulatory Scrutiny Board was received on April 5th 2019.

The impact assessment accompanying this proposal identified the following policy options: a baseline option and two different options addressing the problems and technical issues highlighted in the impact assessment.

The baseline option 1 represents the continuation of EIT’s activities as they are today with only the adjustments necessary to align it with the proposal for Horizon Europe. Option 2 builds on the baseline. In addition, it contains the adoption of a number of technical measures to enhance the functioning of the EIT, and proposes a new action to foster entrepreneurial education across Europe. Option 3 differs from option 2 in that it would set up an EIT Hub in each Member State in order to increase the impact of the EIT activities all across Europe.

Option 2 was identified as the preferred option as it strikes the best balance in achieving the objectives of the initiative while considering the resources available and offering the highest economic and societal impacts. It will also entail significant improvements of the EIT in the next programming period.

•Fundamental rights

The Commission proposal respects the fundamental rights and observes the principles of the EU Charter of Fundamental Rights.

BUDGETARY IMPLICATIONS

The budgetary implications of the proposal as well as the human and administrative resources required are described in detail in the legislative financial statement 7 .

OTHER ELEMENTS

•Implementation plans and monitoring, evaluation and reporting arrangements

Monitoring and evaluation are fundamental tools in measuring the impact of the EIT and will be further strengthened and continuously improved over the next programming period. Given the nature of the knowledge triangle integration model, it will be important to apply a monitoring framework that allows flexibility at all relevant levels and ensures coherence with the general objectives of Horizon Europe and impacts sought.

All inputs, outputs, results and impacts identified in the impact assessment accompanying this proposal will be monitored through indicators. Such indicators already exist and are used by the EIT. Whenever they do not exist, new indicators will be developed in order to enable the EIT to monitor the achievement of its objectives.

In parallel and in full compliance with existing monitoring tools, close alignment will be sought between the EIT monitoring provisions and those that are put in place for Horizon Europe. For example, the EIT will align its monitoring tools with the Impact Pathways of Horizon Europe that seek to address the need for scientific, economic and societal impacts indicators more comprehensively. It will be a responsibility of the EIT to regularly monitor the operational performance of the KICs and to adapt its monitoring and reporting systems continuously. The results of such monitoring will feed into the business planning processes of the KICs and into the EIT decision-making on the allocation of the budget and preparation of the framework partnership agreements with the KICs as beneficiaries. The monitoring results should feed continuously into the policy-making process.

The evaluation of the performance of the EIT will be carried out by the Commission in line with the requirements of the amended EIT Regulation and will feed into the overall Horizon Europe programme evaluation that will be carried out mid-term and ex-post. This will include an assessment of the synergies of the EIT with the other instruments of the programme.

With regard to the KICs, a specific indicator framework will be used to assess the performance of the KICs during the next programming period (detailed in the proposal for a new SIA). That framework draws from current and previous indicators and fills gaps and deficiencies identified in the existing performance measurement system. It is also aligned with the Horizon Europe indicator framework.

•Explanation of the key changes in the specific provisions of the proposal

Article 5 EIT bodies - the proposal reinforces the role of the Executive Committee as a specific EIT body, underlines the accountability of the Director to the Governing Board and strengthens the independence of the Internal Auditing Function.

Article 6 Tasks - the proposal contains several precisions of the existing EIT tasks and emphasizes the importance of the EIT’s task to ensure an appropriate level of coordination and facilitate communication and thematic cooperation between the KICs. It introduces a new EIT task to design and coordinate support actions undertaken by the KICs for the development of entrepreneurial and innovation capacity of Higher Education Institutions and their integration in innovation ecosystems.

Article 10 Principles for the evaluation and monitoring of KICs – the proposal updates the reference to the Union framework programme supporting research and innovation as regards the indicators for the continuous monitoring and periodic external evaluations of the KICs.

Article 11 Duration, continuation and termination of a KIC - the proposal reinforces the comprehensive mid-term review of each KIC before the expiry of the initial framework partnership agreement and introduces the notion of a memorandum of cooperation, as a facultative means to ensure EIT-KICs relation following the end date of the framework partnership agreement.

Article 17 Financing of the KICs – the proposal moves the first paragraph of the current Article 14 on EIT’s financial resources in the amended first paragraph of Article 20 on EIT budget, accompanied by few modifications. In addition, it provides the principle for the revised EIT funding model in the sense that the EIT contribution to the KICs may cover up to 100 % of the total eligible costs of KIC added-value activities only in the initial stages of the KIC life. Such contribution shall gradually decrease over time in compliance with the co-funding rates defined in the SIA. It also emphasizes the importance of financial sustainability of KICs within the EIT’s competitive allocation mechanism.

Article 20 EIT budget – the proposal defines the funding of the EIT and the source of the EIT’s financial contribution to the KICs.

Annex I Statutes of the EIT – proposed amendments to the EIT Statutes with the aim to clarify the roles of the EIT Governing Board, Executive Committee and Director, strengthen the Governing Board’s role in the monitoring, supervision and steering of KICs and clarify the Commission’s role vis-à-vis the EIT to reflect its obligations in terms of monitoring and sound financial management. The proposal contains a new requirement for agreement by the Commission on a limited number of strategic issues decided by the Governing Board (e.g. monitoring and financial allocation principles). Finally, the proposal removes the reference to “fixed-term contracts” of EIT staff in order to ensure its professional continuity and development comparable to the regime applicable to EU agencies.

ê 294/2008 (adapted)

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2019/0151 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing Ö on Õ the European Institute of Innovation and Technology (recast)

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty Ö on the Functioning of the European Union Õ establishing the European Community, and in particular Article 157(3) Ö 173(3) Õ thereof,

Having regard to the proposal from the Ö European Õ Commission,

ð After transmission of the draft legislative act to the national parliaments, ï

Having regard to the opinion of the European Economic and Social Committee 8 ,

Having regard to the opinion of the Committee of the Regions 9 ,

Acting in accordance with the procedure laid down in Article 251 of the Treaty Ö ordinary legislative procedure Õ ,

Whereas:

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(1)Regulation (EC) No 294/2008 of the European Parliament and of the Council 10  has been substantially amended 11 . Since further amendments are to be made, that Regulation should be recast in the interests of clarity.

ê 294/2008 recital 1 (adapted)

The Lisbon Growth and Jobs Agenda underscores the need to develop conditions which are attractive to investment in knowledge and innovation in Europe in order to boost competitiveness, growth and jobs in the European Union.

ê 294/2008 recital 2 (adapted)

(2)Member States are primarily responsible for sustaining a strong European industrial, competitive and innovative base. However, the nature and scale of the innovation challenge in the European Union also require action to be taken at Community Ö Union Õ level.

ê 294/2008 recital 3 (adapted)

The Community should provide support to foster innovation, in particular through the Seventh Framework Programme for Research, Technological Development and Demonstration Activities, the Competitiveness and Innovation Framework Programme, the Lifelong Learning Programme and the Structural Funds.

ê 294/2008 recital 4 (adapted)

(3)A new initiative at Community level, tThe European Institute of Innovation and Technology (hereinafter referred to as the ‘EIT’) should be established to complement existing Community Ö Union Õ and national policies and initiatives by fostering the integration of the knowledge triangle — higher education, research and innovation — across the European Union.

ê 294/2008 recital 5 (adapted)

The European Council of 15 and 16 June 2006 invited the Commission to prepare a formal proposal for the establishment of the EIT to be presented in autumn 2006.

ê 294/2008 recital 6 (adapted)

The EIT should primarily have the objective of contributing to the development of the Community’s and the Member States’ innovation capacity, by involving higher education, research and innovation activities at the highest standards. In so doing, the EIT should facilitate and enhance networking and cooperation and create synergies between innovation communities in Europe.

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(4)The EIT, primarily through its Knowledge and Innovation Communities (‘KICs’), should aim at strengthening innovation ecosystems that tackle global challenges. It should primarily have the objective of contributing to the development of the Union’s and the Member States’ innovation capacity at the highest standards. In order to achieve this objective, the EIT should facilitate and enhance networking and cooperation and create synergies between different innovation communities in Europe.

ê 294/2008 recital 22 (adapted)

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(5)The strategic, long-term priority fields and financial needs for the EIT for a period of seven years ð , covering the respective Multiannual Financial Framework (‘MFF’), ï should be laid down in a Strategic Innovation Agenda (hereinafter referred to as ‘SIA’). ð The SIA should ensure alignment with the Union framework programme supporting research and innovation and foster synergies with other relevant Union programmes of the MFF as well as with other Union initiatives, policies and instruments, in particular with those supporting education and regional development. ï Given the importance of the SIA for the Community Ö Union Õ innovation policy and the resulting political significance of its socio-economic impact for the Community Ö Union, Õ the SIA should be adopted by the European Parliament and the Council on the basis of a Commission proposal prepared on the basis of a draft ð based on a contribution ï provided by the EIT.

ê 294/2008 recital 7

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(6)ð In line with the Union framework programme supporting research and innovation, ï the activities of the EIT should address strategic long-term challenges for innovation in Europe, particularly in trans- and/or inter-disciplinary areas including those already identified at European level. In so doing, the EIT should promote periodic dialogue with civil society.

ê 294/2008 recital 8

(7)The EIT should give priority to the transfer of its higher education, research and innovation activities to the business context and their commercial application, as well as to supporting the creation of start-ups, spin-offs and small and medium-sized enterprises (SMEs).

ê 294/2008 recital 9 (adapted)

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(8)The EIT should primarily operate through excellence-driven, Ö and Õ autonomous ð large-scale European ï Ppartnerships of higher education institutions, research organisations, companies and other stakeholders in the form of sustainable and long-term self-supporting strategic networks in the innovation process. Thoese partnerships should be selected by the Governing Board of the EIT on the basis of a transparent and excellence-based process ð , in accordance with the criteria of the Union framework programme supporting research and innovation for the selection of European Partnerships, ï and designated as Knowledge and Innovation Communities (hereinafter referred to as KICs).

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(9)Taking into account the specificity of KICs, it is necessary to provide for special minimum conditions to form a KIC, derogating from the rules for participation and dissemination of the Union framework programme supporting research and innovation. Similarly, specific rules on ownership, access rights, exploitation and dissemination may be necessary for KIC added-value activities. 

ê 294/2008 recital 9

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(10)The Governing Board should also steer the activities of the EIT ð and coordinate the reporting, monitoring and evaluation of ï and evaluate the activities of the KICs ð in line with the provisions of the Union framework programme supporting research and innovation ï . Membership of the Governing Board should balance experience from the business and the higher education and/or research worlds as well as from the innovation sector.

ê 294/2008 recital 10

(11)In order to contribute to the competitiveness and to reinforce the international attractiveness of the European economy and its innovation capacity, the EIT and the KICs should be able to attract partner organisations, researchers and students from all over the world, including by encouraging their mobility, as well as to cooperate with third-country organisations.

ê 294/2008 recital 11

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(12)Relations between the EIT and the KICs should be based on contractual ð framework partnership agreements and grant ï agreements, which will set out the KICs’ rights and obligations, ensure an adequate level of coordination and outline the mechanism for monitoring and evaluating KICs’ activities and outcomes. ð The framework partnership agreement should ensure continuity of the EIT financial contribution to a KIC beyond the respective MFF. By way of derogation from Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council 12 (the ‘Financial Regulation’), the EIT should be able to establish such framework partnership agreement for an initial period of seven years and extend it beyond that period for another period of a maximum of seven years.  ï

ê 294/2008 recital 12 (adapted)

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(13)There is a need to support higher education as an integral, but often missing, component of a comprehensive innovation strategy. The ð framework partnership agreements or grant ï agreement Ö agreements Õ between the EIT and KICs should provide that the degrees and diplomas awarded through the KICs should be awarded by participating higher education institutions, which should be encouraged to label them also as EIT degrees and diplomas. ð In addition, the EIT should strengthen and widen the scope of the EIT-labelled degrees and diplomas in order to increase their recognition outside the EIT Community. ï Through its activities and work, the EIT should help promote mobility ð for students, researchers and staff ï within the European Research Area and the Higher Education Area as well as encourage the transferability of grants awarded to researchers and students in the context of the KICs. All thoese activities should be carried out without prejudice to Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications 13 .

ê 294/2008 recital 13

The EIT should establish clear and transparent guidelines for the management of intellectual property, which should foster the use of intellectual property under appropriate conditions. These guidelines should provide that due account is taken of the contributions to be made by the various partner organisations of the KICs, irrespective of their size. In the event of the activities being funded under the Community Framework Programmes for Research and Technological Development, the rules of those programmes should apply.

ê 294/2008 recital 14 (adapted)

(14)Appropriate provisions should be made to guarantee the liability and transparency of the EIT. Appropriate rules governing Ö regulating Õ its Ö governance and Õ functioning should be laid down in the Statutes of the EIT.

ê 294/2008 recital 15 (adapted)

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(15)The EIT should possess legal personality and, in order to guarantee its functional autonomy and independence ð of national authorities and external pressures, ï it should administer its own budget whose revenue should include a contribution from the Ö Union Õ Community.

ê 294/2008 recital 16 (adapted)

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(16)The EIT should seek to raise an increasing financial contribution from the private sector and from income generated by its own activities. Therefore, Iit is expected that industry, the finance and service sectors will contribute significantly to the budget of the EIT and, in particular, to the budget of the KICs. The KICs should aim at maximising the share of contributions from the private sector ð and achieving financial sustainability ï . The KICs and their partner organisations should publicise the fact that their activities are undertaken in the context of the EIT and that they receive a financial contribution from the general budget of the European Union.

ê 294/2008 recital 17

The Community contribution to the EIT should finance the costs arising from the establishment, administrative and coordination activities of the EIT and the KICs. In order to avoid double funding, these activities should not benefit simultaneously from a contribution from other Community programmes, such as the Framework Programme for Research, Technological Development and Demonstration Activities, the Competitiveness and Innovation Framework Programme, the Lifelong Learning Programme, or from the Structural Funds. Furthermore, in the event that a KIC or its partner organisations apply directly for Community assistance from these programmes or funds, their applications should be treated without any preference over other applications.

ê 294/2008 recital 18 (adapted)

(17)The Community Ö Union Õ budgetary procedure should be applicable as far as the Community subsidy and any other grants Ö Union financial contribution Õ chargeable to the general budget of the European Union are Ö is Õ concerned. The auditing of accounts should be undertaken by the Court of Auditors in accordance with the Ö Financial Regulation Õ Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities 14 .

ê 294/2008 recital 19

This Regulation establishes a financial envelope for the period 2008 to 2013 which is to be the prime reference for the budgetary authority, within the meaning of point 37 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management 15 .

ê 294/2008 recital 20 (adapted)

(18)The EIT is a body set up by the Communities Ö Union Õ within the meaning of Article 70185(1) of Regulation (EC, Euratom) No 1605/2002 Ö the Financial Regulation Õ and should adopt its financial rules accordingly. Consequently Ö Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of the Financial Regulation 16 Õ Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 17 should apply to the EIT.

ê 294/2008 recital 21 (adapted)

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(19)The EIT should produce an ð consolidated ï annual Ö activity Õ report, outlining the activities conducted ð and results of the operations ï in the preceding calendar year and a rolling triennial work programme ð . The EIT should also produce a single programming document, ï outlining its planned initiatives ð in terms of annual and multiannual programming ï and allowing the EIT to respond to internal and external developments in the fields of science, technology, higher education, innovation and other relevant areas. These documents should be transmitted to the European Parliament, the Council, the Commission, the Court of Auditors, the European Economic and Social Committee and the Committee of the Regions for information. The European Parliament, the Council and the Commission should be entitled to present an opinion on the draft of the EIT’s first triennial work programme.

ê 294/2008 recital 23 (adapted)

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(20)It is appropriate that the Commission initiate an independent, external evaluation Ö evaluations Õ of the operation of the EIT, ð including the KICs ï , in particular with a view to preparing the SIA. ð Those evaluations should examine how the EIT fulfils its mission, cover all activities of the EIT and KICs and should assess their relevance, effectiveness, efficiency, European added value, and coherence. Those evaluations should feed into the Commission programme evaluations provided for in the Union framework programme supporting research and innovation. ï Where appropriate, the Commission should make proposals to amend this Regulation.

ê 294/2008 recital 24 (adapted)

It is appropriate to pursue a gradual, phased implementation of the EIT in view of its long-term development. An initial phase with a limited number of KICs is needed in order to evaluate properly the functioning of the EIT and the KICs and, where necessary, to introduce improvements. Within a period of 18 months from its creation, the Governing Board should select two or three KICs in areas that help the European Union to face current and future challenges, which could include such fields as climate change, renewable energy and the next generation of information and communication technologies. The selection and designation of further KICs should be enabled after the adoption of the first SIA, which, in order to address the long-term perspective, should also include detailed modalities on the operation of the EIT.

ê 294/2008 recital 25 (adapted)

(21)Since the objective Ö objectives Õ of Ö this Regulation Õ the action to be taken, namely to establish the EIT, cannot be sufficiently achieved by the Member States and Ö but Õ can Ö rather Õ therefore, for reasons of scale and transnationality, be better achieved at Community Ö Union Õ level, the Community Ö Union Õ may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty Ö on European Union Õ . In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve Ö those objectives Õ that objective,

ê 294/2008 (adapted)

HAVE ADOPTED THIS REGULATION:

Article 1

Subject matter

A European Institute of Innovation and Technology (hereinafter referred to as the ‘EIT’) is hereby established.

Article 2

Definitions

For the purpose of this Regulation, the following definitions shall apply:

ê 1292/2013 Art. 1.1(a)

(1)‘innovation’ means the process, including its outcome, by which new ideas respond to societal or economic needs and demand and generate new products, services or business and organisational models that are successfully introduced into an existing market or that are able to create new markets and that provide value to society;

ê 1292/2013 Art. 1.1(b)

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(2)‘Knowledge and Innovation Community’ (KIC) means an autonomous ð large-scale European ï partnership of higher education institutions, research organisations, companies and other stakeholders in the innovation process in the form of a strategic network, regardless of its precise legal form, based on joint mid- to long-term innovation planning to meet the EIT challenges and contribute to attaining the objectives established under Regulation (EU) No 1291/2013 of the European Parliament and of the Council 18  (‘Horizon 2020’) ð the Union framework programme supporting research and innovation ï ;

ê 1292/2013 Art. 1.1(c)

3.‘co-location centre’ means a geographical area where the main knowledge triangle partners are based and can easily interact, providing the focal point for the KICs’ activity in that area;

ê 1292/2013 Art. 1.1(e)

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(3)5.‘partner organisation’ means any organisation ð legal entity ï which is a member of a KIC and may include, in particular, higher education institutions, ð vocational education and training providers, ï research organisations, public or private companies, financial institutions, regional and local authorities, foundations and non-profit organisations;

ê 294/2008

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(4)6‘research organisation’ means any public or private legal entity which undertakes research or technological development as one of its main objectives;

(5)7‘higher education institution’ means a university or any type of higher education institution which, in accordance with national legislation or practice, offers degrees and diplomas ð in particular ï at masters or doctoral level, irrespective of its denomination in the national context;

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(6)‘EIT Community’ means the EIT and the active community of all individuals and legal entities which benefited or benefit from the EIT financial contribution and support;

ê 294/2008

8.‘degrees and diplomas’ means qualifications resulting in masters or doctorates awarded by participating higher education institutions in the context of higher education activities undertaken in a KIC;

ê 1292/2013 Art. 1.1(f)

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(7)9‘Strategic Innovation Agenda’ (‘SIA’) means a policy document outlining the priority fields and the long-term strategy of the EIT for  future initiatives, ð its capacity to generate the best innovation added-value, ï  including an overview of planned higher education, research and innovation activities over a period of seven years ð , covering the respective MFF ï ;

ê 1292/2013 Art. 1.1(g)

(8)9a‘Regional Innovation Scheme’ (‘RIS’) means an outreach scheme targeted at partnerships between higher education institutions, research organisations, companies and other stakeholders, in order to foster innovation across the Union;

ê 1292/2013 Art. 1.1(h)

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(9)10. ‘Stakeholder Forum’ means a platform open to representatives of ð  Union institutions, ï national, regional and local authorities, organised interests and individual entities from business, higher education, research, associations, civil society and cluster organisations, as well as other interested parties from across the knowledge triangle;

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(10) ‘KIC business plan’ means a document describing the objectives and the planned KIC added-value activities;

ê 1292/2013 Art. 1.1(h)

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(11). ’KIC added-value activities’ means activities carried out by ð KIC ï partner organisations or KIC legal entities, if applicable, ð in accordance with the KIC business plan, ï contributing to the integration of the knowledge triangle of higher education, research and innovation, including the establishment, administrative and coordination activities of the KICs, and contributing to the overall objectives of the EIT;.

(12) ‘memorandum of co-operation’ means an agreement between the EIT and a KIC aimed at keeping a KIC as an active member of the EIT Community after the end date of the framework partnership agreement, without any financial contribution from the EIT;

(13) ‘financial sustainability’ means a capacity of a KIC to fund its knowledge triangle activities independently after the end date of the framework partnership agreement.

ê 1292/2013 Art. 1.2 (adapted)

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Article 3

Mission and oObjectives

The EIT’s mission is to contribute to sustainable European Ö Union Õ economic growth and competitiveness by reinforcing the innovation capacity of the Member States and the Union in order to address major challenges faced by Ö the Õ European society. It shall do this by promoting synergies and cooperation among, and integrating, higher education, research and innovation of the highest standards, including by fostering entrepreneurship.

 The EIT’ General Objectives, Specific Objectives and result indicators for the period from 2014 to 2020 are defined in Horizon 2020.

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The EIT shall contribute to deliver on the general and specific objectives of the Union framework programme supporting research and innovation. 

ê 294/2008

Article 417

SIA

1.    By 30 June 2011 at the latest and every seven years thereafter, the EIT shall prepare a seven-year draft SIA and submit it to the Commission.

ê 1292/2013 Art. 1.14(a) (adapted)

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12.    The SIA shall define the priority fields and the long-term strategy for the EIT ð for the seven-year period concerned, taking into account the Union framework programme supporting research and innovation, ï and shall include an assessment of its socioeconomic impact and its capacity to generate the best innovation added-value. The SIA shall take into account the results of the monitoring and evaluation of the EIT as referred to in Article 1916.

ê 1292/2013 Art. 1.14(b)

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2a.    The SIA shall include an analisys of potential and ð be aligned with the objectives of the Union framework programme supporting research and innovation, the strategic multiannual planning, reporting, monitoring and evaluation and other requirements of that programme, and foster synergies with other relevant Union programmes of the respective MFF, in particular with those supporting education and regional development. It shall also establish  ï appropriate synergies and complementarities between the EIT activities and other Union initiatives ð , policies and ï instruments and programmes.

ê 294/2008 (adapted)

3.    The SIA shall include an estimate of financial needs and sources in view of the future operation, long-term development and funding of the EIT. It shall also contain an indicative financial plan covering the period of the financial framework Ö respective MFF Õ.

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4. The EIT shall submit its contribution to the Commission’s proposal for the SIA.

ê 1292/2013 Art. 1.14(c) (adapted)

54.    Acting on a Ö the Õ proposal from the Commission, the European Parliament and the Council shall adopt the SIA in accordance with Article 173(3) of the Treaty on the Functioning of the European Union.

ê 294/2008

Article 54

EIT bodies

1.    The bodies of the EIT shall be:

ê 1292/2013 Art. 1.3(a) (adapted)

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(a)a Governing Board composed of high-level members experienced in higher education, research, innovation and business. It shall be responsible for steering the activities of the EIT, for the selection, designation ð , monitoring ï and evaluation of the KICs, and for all other strategic decisions;.

 (b)It shall be assisted by an Executive Committee ð composed of selected members and the Chairperson of the Governing Board. ï Ö It shall assist the Governing Board in the performance of its tasks Õ ð and prepare the Governing Board meetings in cooperation with the Director ï;

ê 1292/2013 Art. 1.3(c) (adapted)

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(c)a Director, appointed by the Governing Board, who shall be responsible to the Governing Board for the administrative and financial management of the EIT and shall be the legal representative of the EIT Ö responsible for its operations and day-to-day management. Õ ð The Director shall be accountable to the Governing Board and report to it on an ongoing basis on the development of the EIT and all activities falling under his/her responsibility ï;

ê 294/2008

ð new

(d)an Internal Auditing Function ð , operating in complete independence and in compliance with the relevant international standards, ï which shall advise the Governing Board and the Director on financial and administrative management and control structures within the EIT, on the organisation of financial links with KICs and on any other subject requested by the Governing Board.

2.    The Commission may appoint observers to take part in the meetings of the Governing Board.

23.    The detailed provisions regarding the EIT bodies are set out in the Statutes of the EIT, annexed to this Regulation.

Article 65

Tasks

   In order to achieve its objective, the EIT shall ð in particular ï :

ê 1292/2013 Art. 1.4(a)

(a)identify, in accordance with the SIA, its main priorities and activities;

ê 294/2008

(b)raise awareness among potential partner organisations and encourage their participation in its activities;

ê 1292/2013 Art. 1.4(b) (adapted)

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(c)select and designate KICs in the priority fields in accordance with Article 97 and define their rights and obligations by ð framework partnership agreements and grant ï contractual agreement Ö agreements Õ , provide them with appropriate support, apply appropriate quality control measures, Ö and Õ continuously monitor and periodically evaluate their activities;

(d) ensure an appropriate level of coordination and facilitate communication and thematic cooperation between the KICs ð and launch calls for cross-KIC activities and shared services ï ;

ê 294/2008 (adapted)

ð new

(d)mobilise funds from public and private sources and use its resources in accordance with this Regulation. It shall in particular seek to raise a significant and increasing proportion of its budget from private sources and from income generated by its own activities

(e)encourage Ö strengthen Õ the recognition ð outside the EIT Community ï in the Member States of degrees and diplomas which are awarded by Ö participating Õ higher education institutions that are partner organisations and which may be labelled EIT degrees and diplomas ð and extend them to lifelong learning programmes ï;

ê 1292/2013 Art. 1.4(c)

(f)promote the dissemination of best practices for the integration of the knowledge triangle, including among KICs, in order to develop a common innovation and knowledge transfer culture, and encourage participation in outreach activities, including in the RIS;

ê 294/2008 (adapted)

ð new

(g)seek to become a world class body for ð foster ï excellence in higher education, research and innovation ð , in particular ï Ö by promoting the KICs as excellent innovation partners Õ;

ê 1292/2013 Art. 1.4(d)

(h)promote multidisciplinary approaches to innovation, including the integration of technological, social and non-technological solutions, organisational approaches and new business models;

ê 1292/2013 Art. 1.4(e) (adapted)

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(i)ensure complementarity and synergy between EIT activities and other Union programmes, where appropriate;

(j)promote the KICs as excellent innovation partners inside and outside the Union;

(jk) establish Ö organise regular meetings of Õ a Stakeholder Forum to inform about the activities of the EIT, its experiences, best practices and contribution to Union innovation, research and education policies and objectives and to allow stakeholders to express their views;. A meeting of the Stakeholder Forum shall be convened at least once a year.

(k)Ö organise meetings of a Õ Member States’ Rrepresentatives ð Group, at least twice a year, independently from ï shall meet in a special configuration, within the meeting Ö meetings Õ of the Stakeholder Forum, to ensure appropriate communication and flow of information with the EIT, and be informed of the achievements of, give advice to, and share experiences with, the EIT and the KICs. The special configuration of Member States’ Rrepresentatives ð Group ï within the Stakeholder Forum shall also ensure appropriate synergies and complementarities between EIT and KIC activities with national programmes and initiatives, including the potential national co-financing of KIC activities;.

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(l)design and coordinate support actions undertaken by the KICs for the development of entrepreneurial and innovation capacity of higher education institutions and their integration in innovation ecosystems.

ê 294/2008 (adapted)

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2.    The EIT shall have power to establish a Foundation (hereinafter referred to as the EIT Foundation) with the specific objective of promoting and supporting the activities of the EIT.

Article 76

KICs

1.    KICs shall Ö in particular Õ undertake in particular:

(a)innovation activities and investments with European added value ð , including the support to the creation and development of innovative businesses, ï fully integrating the higher education and research dimensions to attain a critical mass and stimulating the dissemination and exploitation of results;

ê 1292/2013 Art. 1.5(a) (adapted)

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(b)cutting-edge and innovation-driven research ð experimentation, prototyping and demonstration ï in areas of key economic and societal interest and drawing on the results of European Ö Union Õ and national research, with the potential to strengthen Europe’s Ö Union’s Õ competitiveness at international level and find solutions for the major challenges faced by European society;

ê 1292/2013 Art. 1.5(a)

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(c)education and training activities ð in particular ï 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 expand the Union’s talent base, promote the development of innovation-related skills, the improvement of managerial and entrepreneurial skills and the mobility of researchers and students, and foster knowledge-sharing, mentoring and networking among the recipients of EIT-labelled degrees and training;

ê 1292/2013 Art. 1.5(a)

(d)outreach activities and the dissemination of best practices in the innovation sector with a focus on the development of cooperation between higher education, research and business, including the service and financial sectors;

ê 1292/2013 Art. 1.5(a)

(e)to seek synergies and complementarities between KIC activities and existing European, national and regional programmes, where appropriate.

ê 1292/2013 Art. 1.5(b) (adapted)

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2.    ð Without prejudice to the framework partnership agreements and grant agreements between the EIT and the KICs, the ï KICs shall have substantial overall autonomy to define their internal organisation and composition, as well as their precise agenda and working methods. In particular, KICs shall:

(a)establish ð internal ï governance arrangements which reflect the knowledge triangle of higher education, research and innovation;

(b)aim to be open Ö ensure their openness Õ to new members whenever they add value to the partnership;

(c)function in an open and transparent way, in accordance with their internal rules;

(d)establish Ö and implement Õ business plans with objectives and key performance indicators;

(e)develop Ö establish and implement Õ strategies for financial sustainability.

ê 294/2008 (adapted)

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3.    The relationship between the EIT and each KIC shall be based on a contractual ð framework partnership agreements and grant ï agreement Ö agreements Õ .

ò new

Article 8

Rules for participation and dissemination

The rules for participation and dissemination of the Union framework programme supporting research and innovation shall apply. By way of derogation from those rules:

(a)the minimum conditions to form a KIC are set out in Article 9(3) and (4) of this Regulation;

(b)specific rules on ownership, access rights, exploitation and dissemination may apply for KIC added-value activities.

ê 294/2008

Article 97

Selection of KICs

ê 1292/2013 Art. 1.6(a) (adapted)

ð new

1.    A partnership shall be selected and designated by the EIT to become a KIC following a competitive, open and transparent procedure. Detailed Ö The Õ criteria ð of the Union framework programme supporting research and innovation ï  for the selection of the KICs, ð European partnerships shall apply. The EIT Governing Board may further specify those criteria, by adopting and publishing criteria for the selection of KICs ï based on the principles of excellence and innovation relevance., shall be adopted and published by the EIT. External and independent experts shall be involved in the selection process.

ê 1292/2013 Art. 1.6(b)

21a.    The EIT shall launch the selection and designation of KICs according to the priority fields and time schedule defined in the SIA.

ê 1292/2013 Art. 1.6(c)

2.    In accordance with the principles enshrined in paragraph 1, the selection criteria for the designation of a KIC shall, inter alia, include:

(a)the current and potential innovation capacity, including entrepreneurship, within the partnership as well as its excellence in higher education, research and innovation;

(b)the partnership’s capacity to achieve the goals of the SIA and thereby contribute to the general objective and priorities of Horizon 2020;

(c)a multidisciplinary approach to innovation, including the integration of technological, social and non-technological solutions;

(d)the partnership’s capacity to ensure sustainable and long-term self-supporting financing, including a substantial and increasing contribution from the private sector, industry and services;

(e)an appropriately balanced participation in the partnership of organisations active in the knowledge triangle of higher education, research and innovation;

(f)the demonstration of a plan for the management of intellectual property appropriate to the sector concerned, including the way in which contributions from the various partner organisations have been taken into account;

(g)measures to support the involvement of, and cooperation with, the private sector, including the financial sector and in particular SMEs, as well as the creation of start-ups, spin-offs and SMEs, with a view to the commercial exploitation of the results of the activities of KICs;

(h)readiness to establish concrete measures to interact and cooperate with the public and third sectors, as appropriate;

(i)readiness to interact with other organisations and networks outside the KIC with the aim of sharing best practices and excellence;

(j)readiness to establish concrete proposals for synergies with Union and other relevant initiatives.

ê 1292/2013 Art. 1.6(d)

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3.    The minimum condition to form a KIC is the participation of at least three ð independent ï partner organisations, established in at least three different Member States. All such partner organisations must be independent of each other, within the meaning of Article 8 of Regulation (EU) No 1290/2013 of the European Parliament and of the Council 19 .

ê 1292/2013 Art. 1.6(e)

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4.    In addition to the condition set out in paragraph 3, at least two thirds of the partner organisations forming a KIC shall be established in the Member States. At least one higher education institution ð , one research organisation ï and one private company shall be part of each KIC.

ê 1292/2013 Art. 1.6(f)

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5.    The EIT shall adopt and publish criteria and procedures for financing, monitoring and evaluating the activities of the KICs prior to the launching of the selection procedure for new KICs. The special configuration of Member States’ Rrepresentatives ð Group referred to in Article 6(k)ï within the Stakeholder Forum shall be promptly informed of them.

ê 1292/2013 Art. 1.7 (adapted)

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Article 107a

Principles for the evaluation and monitoring of KICs

The EIT shall, on the basis of key performance indicators set out, inter alia, in Regulation (EU) No 1291/2013 ð the Union framework programme supporting research and innovation ï  and in the SIA, and in ð close ï cooperation with the Commission, organise continuous monitoring and periodic external evaluations of the output, results and impact of each KIC. The results of such monitoring and evaluations shall be reported to the European Parliament and to the Council and shall be made public.

Article 117b

Duration, continuation and termination of a KIC

1.    Subject to the outcome of the continuous monitoring and periodic evaluations and to the specificities of particular fields, a KIC shall normally have a time-frame of seven to fifteen years.

ê 1292/2013 Art. 1.7 (adapted)

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2 1.    ð By way of derogation from Article 130(4)(c) of the Financial Regulation, ï tThe EIT may establish a framework partnership agreement with a KIC for an initial period of seven years.

3 2.    ð Subject to the outcome of a comprehensive mid-term review before the expiry of the initial period of seven years, ï Tthe Governing Board may decide to extend the framework partnership agreement with a KIC beyond the Ö initial Õ period initially set, ð for another period of a maximum of seven years or to discontinue the EIT’s financial contribution and not to extend the framework partnership agreement. The Governing Board shall take into account in particular the achieved level of financial sustainability of a KIC, its capacity to ensure openness to new members as well as ï within the limits of the Union financial envelope ð contribution ï referred to in Article 2019, if this is the most appropriate way to achieve ð and relevance with regard to ï the objectives of the EIT.

4 3.    In the event that evaluations of a KIC show inadequate results ð or lack of European added value ï , the Governing Board shall take appropriate measures, including the reduction, modification or withdrawal of its Ö the EIT’s Õ financial support Ö contribution Õ or the termination of the Ö framework partnership Õ agreement.

ò new

4.    Subject to the outcome of a final review before the expiry of the fourteenth year of the framework partnership agreement, the EIT may conclude a memorandum of cooperation with a KIC.

ê 294/2008 (adapted)

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Article 128

Degrees and diplomas

1.    Degrees and diplomas relating to the higher education activities referred to in point (c) of Article 76(1)(c) shall be awarded by participating higher education institutions in accordance with national rules and accreditation procedures. The ð framework partnership agreements and grant ï contractual agreement Ö agreements Õ between the EIT and the KICs shall provide that these degrees and diplomas may also be labelled EIT degrees and diplomas.

2.    The EIT shall encourage participating higher education institutions to:

(a)award joint or multiple degrees and diplomas, reflecting the integrated nature of the KICs. However, these may also be awarded by a single higher education institution;

ê 1292/2013 Art. 1.8

(baa)disseminate best practices on horizontal issues;

ê 294/2008 (adapted)

(cb)take into account:

(i)Community Ö Union Õ action undertaken in accordance with Articles 149 Ö 165 Õ and 150 Ö 166 Õ of the Treaty;

(ii)action undertaken in the context of the European Higher Education Area.

Article 139

Ö Operational Õ iIndependence of the EIT and consistency with Ö Union Õ Community, Member State or intergovernmental action

1.    The EIT shall carry out its activities independently of national authorities and external pressures.

2.    The activity of the EIT shall be consistent with other action and instruments to be implemented at Community Ö Union Õ level, in particular in the fields of higher education, research and innovation.

3.    The EIT shall also take appropriate account of policies and initiatives at regional, national and intergovernmental levels in order to make use of best practices, well established concepts and existing resources.

ê 294/2008 (adapted)

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Article 1411

Legal status

1.    The EIT shall be a Community Ö Union Õ body and shall have legal personality. In each of the Member States, it shall enjoy the widest possible legal capacity accorded to legal persons under national legislation. In particular, it may acquire or dispose of movable and immovable property and be a party to legal proceedings.

2.    The Protocol Ö No 7 Õ on the Privileges and Immunities of the European Communities Ö Union Õ shall apply to the EIT.

Article 1512

Liability

1.    The EIT shall be solely responsible for meeting its obligations.

2.    The contractual liability of the EIT shall be governed by the relevant contractual provisions and the law applicable to the contract in question. The Court of Justice shall have jurisdiction pursuant to any arbitration clause contained in a contract concluded by the EIT.

3.    In the case of non-contractual liability, the EIT shall, in accordance with the general principles common to the laws of the Member States, make good any damage caused by it or its servants in the performance of their duties.

The Court of Justice shall have jurisdiction in any dispute relating to compensation for such damage.

4.    Any payment by the EIT for covering the liability referred to in paragraphs 2 and 3 and the costs and expenses incurred in connection therewith shall be considered expenditure of the EIT and shall be covered by the resources of the EIT.

5.    The Court of Justice shall have jurisdiction in actions brought against the EIT under the conditions provided for in Articles 230 Ö 263 Õ and 232 Ö 265 Õ of the Treaty.

Article 1613

Transparency and access to documents

1.    The EIT ð and the KICs ï shall ensure that its Ö their Õ activities are conducted with a high level of transparency. In particular, the EIT ð and the KICs ï shall set up an accessible, free website providing information about the Ö their Õ activities of the EIT and individual KICs.

ê 1292/2013 Art. 1.10

2.    The EIT shall make public its rules of procedure, its specific financial rules referred to in Article 221(1) and the detailed criteria for the selection of the KICs referred to in Article 97 before issuing calls for proposals for the selection of the KICs.

ê 294/2008 (adapted)

ð new

3.    The EIT shall make public without delay its rolling triennial work programme ð single programming document ï and ð consolidated ï annual activity report referred to in Article 1815.

4.    Without prejudice to paragraphs 5 and 6, the EIT shall not divulge to third parties confidential information it has received for which confidential treatment has been requested and is justified.

5.    The members of the EIT bodies shall be subject to the confidentiality requirement referred to in Article 287 Ö 339 Õ of the Treaty.

The information gathered by the EIT in accordance with this Regulation shall be subject to Regulation (EU) 2018/1725 of the European Parliament and of the Council 20 Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data 21 .

6.    Regulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission documents 22 shall apply to the documents held by the EIT. The Governing Board shall adopt practical arrangements for applying that Regulation no later than six months after the EIT has been set up.

7.    Official documents and publications of the EIT shall be translated in accordance with the Ö Council Õ Regulation No 1 of 15 April 1958determining the languages to be used by the European Economic Community 23  ð shall apply to the EIT ï . The required translation services Ö required for the functioning of the EIT Õ shall be provided by the Translation Centre for bodies of the European Union, set up by Council Regulation (EC) No 2965/1994 24 .

Article 1714

Financial resources Ö Financing of the KICs Õ 

1.    The EIT shall be financed through a contribution from the general budget of the European Union within the financial envelope as set out in Article 19 and other private and public sources.

ê 1292/2013 Art. 1.11(a) (adapted)

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12.    The KICs shall be financed, in particular, from the following sources:

(a)contributions from partner organisations, forming a substantial source of funding;

(b)voluntary contributions from Member States, Ö associated countries or Õ third countries or public authorities within them;

(c)contributions from international bodies or institutions;

(d)revenue generated by the KICs’ own assets and 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 Ö established under national law Õ ;

(g)the Ö financial Õ contribution from the EIT;

(h)financial instruments, including those funded from the general budget of the Union.

Contributions may include contributions in kind.

ê 294/2008

23.    The modalities for accessing funding from the EIT shall be defined in the financial rules of the EIT referred to in Article 221(1).

ò new

3. Budgetary commitments for actions extending over more than one financial year may be broken down over several years into annual instalments, subject to adequate monitoring of estimated financial needs of the KICs to be established on an annual basis.

ê 1292/2013 Art. 1.11(b) (adapted)

ð new

4.    The EIT Ö financial Õ contribution to the KICs may cover up to 100 % of the total eligible costs of KIC added-value activities ð in the initial stages of the KIC life ï . ð Such contribution shall gradually decrease over time in compliance with the co-funding rates defined in the SIA. ï

ê 294/2008 (adapted)

ð new

5.    The KICs or their partner organisations may apply for Community Ö Union Õ assistance Ö financial contribution Õ , in particular in the framework of Community Ö Union Õ programmes and funds, in accordance with their respective rules and on an equal footing with other applications. In that case, such Ö contribution Õ assistance shall not Ö cover the same costs Õ be attributed for activities already funded through the general budget of the European Ö under another Õ Union Ö programme Õ .

ê 1292/2013 Art. 1.11(c)

6.    The EIT contribution shall not, on average, exceed 25 % of a KIC’s overall funding.

ò new

6.    Contributions from partner organisations to the financing of the KICs shall be determined in accordance with the co-funding rates refered to in paragraph 4 of this Article and reflect the KICs strategy for financial sustainability.

ê 1292/2013 Art. 1.11(c) (adapted)

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7.    The EIT shall establish a competitive review Ö allocation Õ mechanism for allocating Ö granting Õ an appropriate share of its financial contribution to the KICs. It shall include assessing the KICs’ business plans and performance as measured by continuous monitoring ð , and in particular their progress in achieving financial sustainability ï .

ê 1292/2013 Art. 1.12 (adapted)

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Article 1815

Programming and reporting

1.    The EIT shall adopt a ð single programming document ï rolling triennial work programme based on the SIA, ð in accordance with its financial rules ï once it is adopted, containing Ö the following: Õ

(a) a statement of the major priorities and planned initiatives of the EIT and the KICs;,

(b)including an estimate of financing needs and sources;

(c) It shall also contain appropriate indicators for monitoring the KICs and EIT activities using a results oriented Ö an impact-oriented Õ approach; The preliminary rolling triennial work programme shall be submitted by the EIT to the Commission by 31 December of the year which ends two years before the entry into force of the triennial work programme in question (year N - 2). 

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(d) other components as laid down in its financial rules. 

ê 1292/2013 Art. 1.12 (adapted)

ð new

The Commission shall deliver an opinion on EIT specific objectives as defined in Horizon 2020 and its complementarities with Union policies and instruments within three months of the submission of the work programme. The EIT shall take due account of the Commission opinion and, in the event 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. Upon request, the Director shall present the final work programme to the committee responsible of the European Parliament.

2.    The EIT shall adopt an ð consolidated ï annual Ö activity Õ report by 30 June each year. The report Ö , which Õ shall outline Ö include comprehensive information on Õ the activities conducted by the EIT and the KICs during the preceding calendar year and ð on the EIT’s contribution to the objectives of the Union framework programme supporting research and innovation, and ï  Ö to the Union innovation, research and education policies and objectives. It shall also Õ  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. ð The consolidated annual activity report shall include further comprehensive information in accordance with the EIT’s financial rules. ï The EIT shall transmit the annual report to the European Parliament and the Council and inform them of the activities of the EIT, its contribution to Horizon 2020 and to the Union innovation, research and education policies and objectives at least once a year.

Article 1916

Monitoring and evaluation of the EIT

1.    The EIT shall ensure that its activities, including those managed through KICs, shall be subject to continuous and systematic monitoring and periodic independent evaluation ð in accordance with its financial rules ï , to ensure both the highest quality of outcome, scientific excellence and the most efficient use of resources. The outcomes of the evaluations shall be made public.

2.    By June 2011 and every three years after the entry into force of a new financial framework, Tthe Commission shall provide for an evaluation Ö evaluations Õ of the EIT ð with the assistance of independent experts selected on the basis of a transparent process in accordance with its financial rules ï . This shall be based on an independent external evaluation and Ö Those evaluations Õ shall examine how the EIT fulfils its mission,. It shall cover all activities of the EIT and the KICs and shall assess the ð European ï added value of the EIT, the impact, effectiveness, sustainability, efficiency and relevance of the activities pursued and their relationship ð coherence ï and/or complementarity with ð relevant ï existing national and Community Ö Union Õ policies ð , including synergies with other parts of the Union framework programme supporting research and innovation ï , to support higher education, research and innovation. It Ö They Õ shall take into account the views of stakeholders, at both European and national level ð and feed into the Commission programme evaluations provided for in the Union framework programme supporting research and innovation ï .

ê 1292/2013 Art. 1.13(b) (adapted)

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32a.    The Commission may carry out further evaluations of themes or topics of strategic relevance, with the assistance of independent experts ð selected on the basis of a transparent process ï , to examine the progress made by the EIT towards the objectives set, identify the factors contributing to the implementation of the activities and identify best practices. In so doing Ö By carrying out those further evaluations Õ , the Commission shall fully consider the administrative impact on the EIT and the KICs.

ê 294/2008 (adapted)

43.    The Commission shall forward Ö communicate Õ the results of the Ö evaluations Õ evaluation, together with Ö accompanied by Õ its Ö observations Õ own opinion and, where appropriate, any proposals to amend this Regulation, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. The Governing Board shall take due account of the findings of evaluations in the programmes and operations of the EIT.

ê 294/2008 (adapted)

Article 18

Initial phase

1.    Within 12 months after its creation, the Governing Board shall submit the draft of the first rolling triennial work programme, referred to in Article 15(a), to the European Parliament, the Council and the Commission. The European Parliament, the Council and the Commission may each address an opinion to the Governing Board on any subject covered in draft within three months of the day on which they received it. Where such opinions are addressed to it, the Governing Board shall reply within a period of three months, indicating any adjustments in the priorities and planned activities.

2.    Within a period of 18 months from the date of creation of the Governing Board, the EIT shall select and designate two or three KICs in accordance with the criteria and procedures set out in Article 7.

3.    The Commission shall submit the proposal for the first SIA, on the basis of the draft provided by the EIT, to the European Parliament and the Council before the end of 2011.

In addition to the content of a SIA in accordance with Article 17, the first SIA shall include:

(a)detailed specifications and terms of reference concerning the operation of the EIT;

(b)the modalities for cooperation between the Governing Board and the KICs;

(c)modalities of the funding of the KICs.

4.    After the adoption of the first SIA in accordance with Article 17(4), the Governing Board may select and designate additional KICs pursuant to the provisions of Articles 6 and 7.

ê 1292/2013 Art. 1.15 (adapted)

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Article 2019

Budgetary commitments Ö EIT budget Õ

1.    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 2711,4 million in current prices.

ò new

1.    The revenue of the EIT shall consist of a contribution from the Union. The revenue of the EIT may also include a contribution from other private and public sources.  

The Union contribution may be provided through a financial contribution from the Union framework programme supporting research and innovation and other Union programmes, without prejudice to the amounts decided in the respective MFF. 

ê 1292/2013 Art. 1.15

ð new

2.    That amount shall constitute the prime reference for the European Parliament and the Council during the budgetary procedure, within the meaning of point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management 25 .

23.    The annual appropriations shall be authorised by the European Parliament and the Council within the limits of the financial framework. The EIT financial contribution to the KICs shall be provided under this financial envelope ð from the Union contribution referred in paragraph 1 ï .

ê 294/2008

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Article 2120

Preparation and adoption of the annual budget

1.    ð The content and structure of the budget of the EIT shall be established in accordance with its financial rules. ï The expenditure of the EIT shall include the staff, administrative, infrastructure and operational expenses. Administrative expenditure shall be kept to a minimum.

2.    The financial year shall correspond to the calendar year.

23.    The Director shall draw up an estimate of the revenue and expenditure of the EIT for the following financial year and shall forward it to the Governing Board.

4.    Revenue and expenditure shall be in balance.

ê 1292/2013 Art. 1.16(a)

ð new

35.    The Governing Board shall adopt the draft estimate ð of EIT’s revenue and expenditure ï , accompanied by a draft establishment plan,  and the preliminary rolling triennial work programme and forward them ð as a part of the single programming document by the date specified in the EIT’s financial rules ï to ð the European Parliament, the Council  and ï the Commission by 31 December of the year N - 2.

ê 1292/2013 Art. 1.16(b)

6.    On the basis of the estimate, the Commission shall enter in the draft general budget of the Union the estimates it deems necessary for the amount of the subsidy to be charged to the general budget.

ê 294/2008 (adapted)

7.    The budgetary authority shall authorise the appropriations for the subsidy to the EIT.

48.    The Governing Board shall adopt the EIT budget, which shall become final following the final adoption of the general budget of the European Union. Where appropriate, it shall be adjusted accordingly.

59.    The Governing Board shall, as soon as possible, notify the budgetary authority of its intention to implement any project which may have significant financial implications for the funding of the EIT budget, in particular any projects relating to property such as the rental or purchase of buildings. It shall inform the Commission thereof.

610.    Any substantial modification of the budget shall follow the same procedure.

Article 2221

Implementation and control of the budget

1.    The EIT shall adopt its financial rules in accordance with Article 185(1) 70(3) of Ö the Financial Regulation Õ  Regulation (EC, Euratom) No 1605/2002. These may not depart from Regulation (EC, Euratom) No 2343/2002 except where the EIT’s specific operating needs so require and with the Commission’s prior consent. Due account Ö Appropriate consideration Õ shall be given to the need for adequate operational flexibility in order to enable the EIT to achieve its objectives and attract and retain private sector partners.

ê 1292/2013 Art. 1.17(a)

ð new

21a.    The financial contribution to the EIT ð from the Union framework programme supporting research and innovation and other Union programmes ï shall be implemented in accordance with ð the rules of those programmes ï Regulation (EU) No 1290/2013 and with Regulation (EU) No 1291/2013.

ê 294/2008

32.    The Director shall implement the budget of the EIT.

43.    The accounts of the EIT shall be consolidated with the Commission’s accounts.

ê 1292/2013 Art. 1.17(b)

4.    Upon a recommendation from the Council, the European Parliament shall, before 15 May of the year nN + 2, give a discharge for the year N to the Director in respect of the implementation of the EIT budget for year n.

ê 294/2008 (adapted)

ð new

Article 2322

Protection of the financial interests of the Community Ö Union Õ

1.    With a view to combating fraud, corruption and other illegal acts, Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning investigations conducted by the European Anti-Fraud Office (OLAF) 26  Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council 27 shall apply to the EIT in its entirety.

2.    The EIT shall accede to the Interinstitutional Agreement of 25 May 1999 between the European Parliament, the Council of the European Union and the Commission of the European Communities concerning internal investigations by the European Anti-fraud Office (OLAF) 28 . The Governing Board shall formalise this accession and adopt the necessary measures to help OLAF carry out internal investigations.

3.    All decisions adopted and contracts ð framework partnership agreements or grant agreements ï concluded by the EIT shall provide explicitly that 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 Community Ö Union Õ funds, including at the premises of the final beneficiaries.

ê 1292/2013 Art. 1.19

ð new

Article 2422a

Winding up of the EIT

In the event of the EIT being wound up, its liquidation shall take place under the supervision of the Commission in accordance with the applicable laws. The contractual ð framework partnership agreements or grant ï agreements with the KICs and the act establishing the EIT Foundation shall lay down the appropriate provisions in such situation.

ê 294/2008

ð new

Article 2523

Statutes

The Statutes of the EIT ð are ï , as set out in the Annex I, are hereby adopted.

ò new

Article 26

Repeal

Regulation (EC) No 294/2008 is repealed.

References to the repealed Regulation shall be construed as references to this Regulation and shall be read in accordance with the correlation table in Annex III.

ê 294/2008 (adapted)

Article 2724

Entry into force

This Regulation shall enter into force on the 20th Ö twentieth Õ day following Ö that of Õ its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

LEGISLATIVE FINANCIAL STATEMENT

1.    FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy area(s) concerned (Programme cluster)

1.3.    The proposal/initiative relates to:

1.4.    Grounds for the proposal/initiative

1.4.1.    Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative

1.4.2.    Added value of Union involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this point 'added value of Union involvement' is the value resulting from Union intervention which is additional to the value that would have been otherwise created by Member States alone

1.4.3.    Lessons learned from similar experiences in the past

1.4.4.    Compatibility and possible synergy with other appropriate instruments

1.5.    Duration and financial impact

1.6.    Management mode(s) planned

1.7.    Management mode(s) planned

2.    MANAGEMENT MEASURES

   2.1.    Monitoring and reporting rules

   2.2.    Management and control system(s)

   2.2.1.    Justification of the management mode(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed

   2.2.2.    Information concerning the risks identified and the internal control system(s) set up to mitigate them

   2.2.3.    Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ value of the related funds managed"), and assessment of the expected levels of risk of error (at payment & at closure)

   2.3.    Measures to prevent fraud and irregularities

3.    ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

   3.1.    Heading of the multiannual financial framework and new expenditure budget line(s) proposed

   3.2.    Estimated impact on expenditure

   3.2.1.    Summary of estimated impact on expenditure

   3.2.2.    Summary of estimated impact on appropriations of an administrative nature

   3.2.3.    Third-party contributions

   3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.    FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy area(s) concerned (Programme cluster)

1.3.    The proposal/initiative relates to:

◻ a new action 

◻ a new action following a pilot project/preparatory action 29  

X the extension of an existing action 

◻ a merger or redirection of one or more actions towards another/a new action 

1.4.    Grounds for the proposal/initiative

1.4.1.    Requirement(s) to be met in the short or long term including a detailed ti    meline for roll-out of the implementation of the initiative

1.4.2.    Added value of Union involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this point 'added value of Union involvement' is the value resulting from Union intervention which is additional to the value that would have been otherwise created by Member States alone

1.4.3.    Lessons learned from similar experiences in the past

1.4.4.    Compatibility and possible synergy with other appropriate instruments

1.5.    Duration and financial impact

X limited duration

X    in effect from [01/01]2021 to [31/12]2027

X    Financial impact from 2021 to 2027 for commitment appropriations and from 2021 to 2029 for payment appropriations.

◻ unlimited duration

Implementation with a start-up period from YYYY to YYYY,

followed by full-scale operation.

1.6.    Management mode(s) planned 32  

◻ Direct management by the Commission

◻ by its departments, including by its staff in the Union delegations;

◻    by the executive agencies

◻ Shared management with the Member States

X Indirect management by entrusting budget implementation tasks to:

◻ third countries or the bodies they have designated;

◻ international organisations and their agencies (to be specified);

◻the EIB and the European Investment Fund;

X bodies referred to in Articles 70 and 71 of the Financial Regulation;

◻ public law bodies;

◻ bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees;

◻ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees;

◻ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act.

If more than one management mode is indicated, please provide details in the ‘Comments’ section.

2.    MANAGEMENT MEASURES

2.1.    Monitoring and reporting rules 

Specify frequency and conditions.

2.2.    Management and control system(s)

2.2.1.    Justification of the management mode(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed

2.2.2.    Information concerning the risks identified and the internal control system(s) set up to mitigate them 

2.2.3.    Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ value of the related funds managed"), and assessment of the expected levels of risk of error (at payment & at closure)

2.3.    Measures to prevent fraud and irregularities 

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy.

3.    ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

3.1.    Heading of the multiannual financial framework and new expenditure budget line(s) proposed 

3.2.    Estimated impact on expenditure 

3.2.1.    Summary of estimated impact on expenditure

EUR million (to three decimal places)

This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative Financial Statement , which is uploaded to DECIDE for interservice consultation purposes.

EUR million (to three decimal places)

EUR million (to three decimal places)

3.2.2.    Summary of estimated impact on appropriations of an administrative nature

◻    The proposal/initiative does not require the use of appropriations of an administrative nature

X    The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:

EUR million (to three decimal places)

The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that 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.

3.2.2.1    Estimated requirements of human resources 39

◻    The proposal/initiative does not require the use of human resources.

X    The proposal/initiative requires the use of human resources, as explained below:

Estimate to be expressed in full time equivalent units

The human resources required will be met by staff from the DG 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:

3.2.2.2    Estimated requirements of human resources in the European Institute of Innovation & Technology (EIT)

Estimate to be expressed in full time equivalent units

Description of tasks to be carried out:

3.2.3.    Third-party contributions 

The proposal/initiative:

◻    does not provide for co-financing by third parties

X provides for the co-financing by third parties estimated below:

Appropriations in EUR million (to three decimal places)

3.3.    Estimated impact on revenue 

◻    The proposal/initiative has no financial impact on revenue.

X    The proposal/initiative has the following financial impact:

◻    on own resources

X    on other revenue

please indicate, if the revenue is assigned to expenditure lines ◻    

EUR million (to three decimal places)

For assigned revenue, specify the budget expenditure line(s) affected.

Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).

(1)    Regulation (EC) No 294/2008 of the European Parliament and of the Council of 11 March 2008 establishing the European Institute of Innovation and Technology (OJ L 97, 9.4.2008, p. 1).

(2)    Regulation (EU) No 1292/2013 of the European Parliament and of the Council of 11 December 2013 amending Regulation (EC) No 294/2008 establishing the European Institute of Innovation and Technology (OJ L 347, 11.12.2013, p. 174).

(3)    Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation 2014-2020 and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).

(4)    The current SIA covers the period 2014-2020.

(5)    Decision No 1312/2013/EU of the European Parliament and of the Council of 11 December 2013 on the Strategic Innovation Agenda of the European Institute of Innovation and Technology (EIT): the contribution of the EIT to a more innovative Europe (OJ L 347, 20.12.2013, p. 892).

(6)    ICF (2017), Evaluation, p. 36.

(7)    Legislative financial statement for the proposal for a Regulation of the European Parliament and of the Council on the European Institute of Innovation and Technology (recast) and for a Decision of the European Parliament and of the Council on the Strategic Innovation Agenda of the European Institute of Innovation and Technology (EIT) 2021-2027: Boosting the Innovation Talent and Capacity of Europe.

(8)    OJ C […], […], p. […].

(9)    OJ C […], […], p. […].

(10)    Regulation (EC) No 294/2008 of the European Parliament and of the Council of 11 March 2008 establishing the European Institute of Innovation and Technology (OJ L 097, 9.4.2008, p. 1).

(11)    See Annex II.

(12)    Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

(13)    Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications (OJ L 255, 30.9.2005, p. 22). Directive as last amended by Commission Regulation (EC) No 1430/2007 (OJ L 320, 6.12.2007, p. 3).

(14)    OJ L 248, 16.9.2002, p. 1. Regulation as last amended by Regulation (EC) No 1525/2007 (OJ L 343, 27.12.2007, p. 9).

(15)    OJ C 139, 14.6.2006, p. 1. Interinstitutional Agreement as amended by Decision 2008/29/EC of the European Parliament and of the Council (OJ L 6, 10.1.2008, p. 7).

(16)    Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (OJ L 122, 10.5.2019, p. 1).

(17)    OJ L 357, 31.12.2002, p. 72.

(18)    Regulation (EU) No 1291/2013 of 11 December 2013 of the European Parliament and of the Council establishing Horizon 2020 - The Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).

(19)    Regulation (EU) No 1290/2013 of the European Parliament and of the Council of 11 December 2013 laying down the rules for the participation and dissemination in ‘Horizon 2020 – the Framework Programme for Research and Innovation (2014-2020)’ and repealing Regulation (EC) No 1906/2006 (OJ L 347, 20.12.2013, p. 81).

(20)    Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC.(OJ L 295, 21.11.2018, p. 39).

(21)    OJ L 8, 12.1.2001, p. 1.

(22)    Regulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission documents (OJ L 145, 31.5.2001, p. 43).

(23)    Council Regulation No 1 of 15 April 1958 determining the languages to be used by the European Economic Community (OJ 17, 6.10.1958, p. 385/58). Regulation as last amended by Regulation (EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1).

(24)    Council Regulation (EC) No 2965/1994 of 28 November 1994 setting up a Translation Centre for bodies of the European Union (OJ L 314, 7.12.1994, p. 1). Regulation as last amended by Regulation (EC) No 1645/2003 (OJ L 245, 29.9.2003, p. 13).

(25)    OJ C 373, 20.12.2013, p. 1.

(26)    OJ L 136, 31.5.1999, p. 1.

(27)    Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).

(28)    OJ L 136, 31.5.1999, p. 15.

(29)    As referred to in Article 58(2)(a) or (b) of the Financial Regulation.

(30)    COM (2018) 435 final.

(31)    Article 9(2)(c)(2).

(32)    Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx  

(33)    COM (2018) 323 final, of 2.5.2018

(34)    Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.

(35)    EFTA: European Free Trade Association.

(36)    Candidate countries and, where applicable, potential candidates from the Western Balkans.

(37)    The cost of the EIT staff and Title II has been calculated applying the correction coefficient for HU (71.9), as indicated in the page 16, table 5 of https://ec.europa.eu/eurostat/documents/6939681/7070380/Annualreport2018.pdf/97053a94-29eb-4e93-8883-e826426e3d55  

(38)    Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. This represents the maximum from the amount allocated to the EIT from the Programme, to be devoted to the Commission's administrative expenditure.

(39)    These figures are aligned with the overall Legislative financial statement of Horizon Europe which includes only the authorised staff in place in 2020 in Directorates General, but do not prejudge on the possible specific needs of staff working on EIT for the period 2021-2027.

(40)    AC= Contract Staff; AL = Local Staff; END = Seconded National Expert; INT = agency staff; JPD= Junior Professionals in Delegations.

(41)    Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).

(42)    Bilateral Association Agreements are not fixed yet. Contributions from associated countries will come on top of the amounts presented in this Legislative Financial Statement.

EUROPEAN COMMISSION

Brussels, 11.7.2019

COM(2019) 331 final

ANNEXES

to the

Proposal for a Regulation of the European Parliament and of the Council

on the European Institute of Innovation and Technology (recast)

{SEC(2019) 275 final} - {SWD(2019) 330 final} - {SWD(2019) 331 final}

ê 1292/2013 Art. 2 and Annex (adapted)

ð new

ANNEX I

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 of representative members.

12.    There Ö The Governing Board Õ shall be Ö composed of Õ 12 ð 15 ï 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 Ö The Õ term of office Ö of the members of the Governing Board shall be four years Õ . ð The Commission may extend that term of office once by a two-year period on the proposal of the Governing Board ï.

Whenever necessary, the Governing Board shall submit to the Commission a ð shortlist of candidates for the purpose of ï proposal for appointment of a new member(s) Ö or members Õ. The ð shortlisted ï candidate(s) Ö candidates Õ shall be chosen Ö selected Õ on the basis of the outcome of a transparent and open procedure ð initiated by the EIT ï , 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 and geographical balance and an appreciation of the higher education, research and innovation environment across the Union.

The Commission shall appoint the member(s) Ö or members Õ and inform the European Parliament and the Council of the selection process and of 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 than two years may be reappointed by the Commission for an additional period of four years at the request of the Governing Board.

During a transitional period, the Board members initially appointed for a six-year period shall complete their term of office. Until that time there shall be 18 appointed members. Within six months of entry into force of this Regulation, one third of the twelve members appointed in 2012 shall be chosen by the Governing Board with the Commission's approval to serve for a two-year period, one third for a four-year period and one third for a six-year period.

ò new

The Commission shall appoint three additional members of the Governing Board to reach the number of 15 within eighteen months of entry into force of this Regulation. The Board members appointed before the entry into force of this Regulation shall complete their non-renewable term of office.

ê 1292/2013 Art. 2 and Annex (adapted)

ð new

In exceptional and duly justified circumstances, ð in particular ï in order to maintain the integrity of the Governing Board, the Commission may, at Ö on Õ its own initiative, terminate the term of office of a member of the Board.

3.    There shall be three representative members elected by the KICs from among their partner organisations. 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 procedures for the 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 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 term of office. Until that time there shall be four representative members.

24.    The Governing Board members shall act in the interests of the EIT, safeguarding its goals and mission, identity, autonomy and coherence, in an independent and transparent way.

SECTION 2

RESPONSIBILITIES OF THE GOVERNING BOARD

1.     The Governing Board ð , in exercising its responsibility for steering the activities of the EIT, ï shall take necessary strategic decisions, in particular:

(a)adopt ð the EIT’s contribution to the Commission’s proposal on ï the EIT's draft Strategic Innovation Agenda (SIA);,

(b) Ö adopt the Õ EIT’s ð single programming document ï triennial rolling work programme, budget, annual accounts and balance sheet and ð consolidated ï annual activity report, on the basis of a proposal from the Director;

(cb)adopt criteria and procedures for financing, monitoring and evaluating the activities of the KICs, ð including the maximum allocation of EIT funds to them ï on the basis of a proposal from the Director;

(dc)adopt the selection procedure of the KICs;

(ed)select and designate a partnership as a KIC or withdraw the designation where appropriate;

(e)ensure the continuing evaluation of the activities of the KICs;

ò new

(f) authorise the Director to prepare, negotiate and conclude framework partnership agreements, grant agreements and memoranda of cooperation, with the KICs;

(g) authorise the Director to extend framework partnership agreements with the KICs beyond the period initially set;

(h) authorise the Director to prepare, negotiate and conclude grant agreements with other legal entities;

(i) adopt effective monitoring and evaluation procedures relating to the performance of the EIT and KICs in accordance with Article 19, and supervise their implementation by the Director;

(j) take appropriate measures, including the reduction, modification or withdrawal of the EIT’s financial contribution to the KICs or the termination of the framework partnership agreements with them;

(k) promote the EIT globally, so as to raise its attractiveness, and for this purpose authorise the Director to sign memoranda of understanding with Member States, associated countries or third countries;

(l) decide on the design and coordination of support actions undertaken by the KICs for the development of entrepreneurial and innovation capacity of higher education institutions and their integration in innovation ecosystems.

2.    The Governing Board shall take other procedural and operational decisions necessary for the fulfilment of its tasks and the activities of the EIT, in particular:

ê 1292/2013 Art. 2 and Annex (adapted)

ð new

(af)adopt its rules of procedure, those for the Executive Committee, as well as the specific financial rules of the EIT;

(bg)define, with the Commission's agreement, appropriate fees for members of the Governing Board and of the Executive Committee,; such fees Ö which Õ shall be benchmarked against similar remuneration in the Member States;

(ch)adopt a procedure for selecting the Executive Committee and the Director;

(di)appoint Ö the Director Õ and if necessary ð extend his/her term of office ï Ö or remove Õ dismiss the Director Ö from office Õ , and exercise disciplinary authority over him/her ð in accordance with Section 5 ï;

(ej)appoint the Accounting Officer and the members of the Executive Committee;

(fk)adopt a code of good conduct regarding conflicts of interest;

(gl)establish, where appropriate, advisory groups which may have a defined duration;

(hm)set up an Internal Auditing Function in accordance with ð EIT’s financial rules ï Commission Regulation (EC, Euratom) No 2343/2002 1 ;

(n)be empowered to establish a Foundation with the specific objective of promoting and supporting the activities of the EIT;

(io)decide on the ð working ï Ö languages Õ language policy of the EIT, taking into account 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.

ò new

(j) convene an annual senior-level meeting with the KICs.

3. The Governing Board shall take decisions in compliance with the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Union, laid down in Council Regulation (EEC, Euratom, ECSC) No 259/68 2 , relating to the EIT staff and the conditions of its employment, in particular:

(a) adopt the implementing measures for giving effect to the Staff Regulations and the Conditions of Employment of Other Servants, in accordance with Article 110(2) of the Staff Regulations;

(b) exercise in accordance with point (c) the powers conferred by the Staff Regulations on the Appointing Authority and by the Conditions of Employment of Other Servants on the Authority Empowered to Conclude a Contract of Employment (the ‘appointing authority powers’);

(c) adopt, in accordance with Article 110(2) of the Staff Regulations, a decision based on Article 2(1) of the Staff Regulations and Article 6 of the Conditions of Employment of Other Servants, delegating relevant appointing authority powers to the Director and defining the conditions under which this delegation of powers can be suspended. The Director shall be authorised to sub-delegate those powers;

(d) adopt a decision to temporarily suspend, where exceptional circumstances so require, the delegation of the appointing authority powers to the Director and those sub-delegated by the latter and exercise them itself or delegate them to one of its members or to a staff member other than the Director.

ê 1292/2013 Art. 2 and Annex

ð new

SECTION 3

FUNCTIONING OF THE GOVERNING BOARD

1.    The Governing Board shall elect its Chairperson from among the appointed ð its ï members. The term of office of the Chairperson shall be two years, renewable once.

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2.    The representative of the Commission shall participate in the meetings of the Governing Board, without the right to vote, but his/her agreement shall be required in accordance with paragraph 5. He/she shall have the right to suggest points on the agenda of the Governing Board.

3.    The Director shall participate in the meetings of the Governing Board, without the right to vote.

ê 1292/2013 Art. 2 and Annex (adapted)

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42.    Without prejudice to paragraph 3, Tthe Governing Board shall adopt decisions by simple majority of members having a right to vote.

However, decisions under points (a), (b), (c), (d), ð and (l) ï of Section 2(1) and points (di) and (io) of Section 2(2), and Ö as well as Õ under paragraph 1 of this Section shall require a majority of two thirds of its members having the right to vote.

3.    The representative members may not vote on decisions under points (b), (c), (d), (e), (f), (g), (i), (j), (k), (o) and (p) of Section 2.

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5.    Decisions of the Governing Board under points (c), (g), (i) and (k) of Section 2(1), point (b) of Section 2(2) and point (a) of Section 2(3) shall require agreement of the Commission, expressed by its representative in the Governing Board.

ê 1292/2013 Art. 2 and Annex

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64.    The Governing Board shall meet in ordinary session at least three ð four ï times a year and in extraordinary session when convened by its Chairperson or at the request of at least one third of all its members ð or the representative of the Commission ï .

ê 1292/2013 Art. 2 and Annex (adapted)

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SECTION 4

Ö THE EXECUTIVE COMMITTEE Õ

15.    The Governing Board shall be assisted by Tthe Executive Committee Ö shall assist the Governing Board in the performance of its tasks Õ .

2.    The Executive Committee shall consist of three appointed ð four ï members and the Chairperson of the Governing Board, who shall also chair the Executive Committee. The three ð four ï members other than the Chairperson shall be chosen by the Governing Board from among the Governing Board's appointed members ð , providing a balance between those with experience in business, higher education and research ï . ð The term of office of the members of the Executive Committee shall be two years, renewable once. ï

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3.    The Executive Committee shall prepare the meetings of the Governing Board in cooperation with the Director.

ê 1292/2013 Art. 2 and Annex

4. The Governing Board may delegate specific tasks to the Executive Committee.

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5.    The Governing Board may request the Executive Committee to supervise and monitor the implementation of decisions and recommendations of the Governing Board.

6.    The Executive Committee shall be consulted on the draft EIT’s contribution to the Commission’s proposal on the SIA, draft single programming document, draft consolidated annual activity report, draft annual budget and draft annual accounts and balance sheet before their submission to the Governing Board.

7.    Decisions of the Executive Committee shall be adopted on the basis of a majority of the members present. Each member shall have one vote.

8.    The representative of the Commission shall participate in the meetings of the Executive Committee, without the right to vote. The representative of the Commission shall have the right to suggest points on the agenda of the Executive Committee.

9.    The Director shall participate in the meetings of the Executive Committee, without the right to vote.

10.    The members of the Executive Committee shall act in the interests of the EIT, safeguarding its goals and mission, identity, autonomy and coherence, in an independent and transparent way. They shall regularly report to the Governing Board on the adopted decisions and tasks assigned to them by the Governing Board.

ê 1292/2013 Art. 2 and Annex (adapted)

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SECTION 54

THE DIRECTOR

1.    The Director shall be a person with expertise and high reputation in the areas where the EIT operates. ð The Director shall be a member of the EIT staff and shall be engaged as a temporary agent under Article 2(a) of the Conditions of Employment of Other Servants. ï 

2. The Director shall be appointed by the Governing Board ð from a list of candidates proposed by the Commission, following an open and transparent selection procedure. For the purpose of concluding the contract with the Director, the EIT shall be represented by the Chairperson of the Governing Board. ï 

Ö 3. The Õ for a term of office of Ö the Director shall be Õ four years. The Governing Board ð , acting on a proposal from the Commission that takes into account its evaluation of the Director’s performance and the EIT’s future tasks and challenges, ï may extend that term of office once by Ö for Õ a four-year period ð of up to two years ï when it considers that the interests of the EIT are best served by so doing. ð A Director whose term of office has been extended may not participate in another selection procedure for the same post. ï 

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4. The Director may be removed from office only upon a decision of the Governing Board acting on a proposal from the Commission.

ê 1292/2013 Art. 2 and Annex

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52.    The Director shall be responsible for operations and for the day-to-day management of the EIT and shall 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 ð and all activities falling under his/her responsibility ï .

63.    The Director shall in particular:

(a)organise 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 supply all information necessary for the performance of their duties;

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(c)support the Governing Board in preparing the EIT’s contribution to the Commission’s proposal on the SIA;

ê 1292/2013 Art. 2 and Annex (adapted)

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(dc)prepare a draft (SIA), ð  the draft single programming document ï a preliminary rolling triennial work programme, the draft ð consolidated ï annual Ö activity Õ report and the draft annual budget for submission to the Governing Board;

(ed)prepare and administer the KICs selection process and ensure that the various stages of that process are carried out in a transparent and objective manner ð , under the supervision of the Governing Board ï ;

(fe)prepare, negotiate and conclude ð , with the agreement of the Governing Board, framework partnership agreements, grant ï contractual agreements ð and memoranda of cooperation, ï with the KICs;

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(g)prepare, negotiate and conclude, with the agreement of the Governing Board, grant agreements with other legal entities;

ê 1292/2013 Art. 2 and Annex (adapted)

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(hf)organise ð the meetings of ï the Stakeholder Forum, including Ö and of Õ the special configuration of Member States' Rrepresentatives ð Group, under the supervision of the Governing Board ï ;

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