# EUR-Lex - 52013PC0607 - EN

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# 52013PC0607

**Proposal for a COUNCIL DECISION amending Decision 2007/198/Euratom establishing the European Joint Undertaking for ITER and the Development of Fusion Energy and conferring advantages upon it /* COM/2013/0607 final - 2013/0295 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

This Council Decision amends the Council
Decision (2007/198/Euratom) of 27 March 2007 establishing the European Joint
Undertaking for ITER and the Development of Fusion Energy and conferring
advantages upon it to provide the basis for the financing of the activities of
this Joint Undertaking (hereinafter "Fusion for Energy") for the
period 2014-2020 under the Euratom Treaty.

The Fusion for Energy cost estimates for
the construction phase (cost for Europe only), covering the period 2007-2020,
amounted in March 2010 to EUR 7.2 billion (in 2008 value). In July 2010 the
Council capped the European contribution to that phase to EUR 6.6 billion (in
2008 value). In February 2013, the European Council set up the maximum level of
the Euratom commitments for ITER in the Multiannual Financial Framework
Regulation for the period 2014-2020 at EUR 2.707 million (in 2011 value).

Under the Seventh Framework Programme the
Euratom contribution was made available through the Community research and
training programme adopted pursuant to Article 7 of the Euratom Treaty. This
financing modality required to comply with a series of requirements in terms of
participation, rules, planning, monitoring and evaluation which are specific to
research programmes. These requirements are now redundant given the
competencies and role assigned to Fusion for Energy in its Statutes.

Differently from what was done under the Seventh
Framework Programme, this proposal is not designed as a research programme
under Article 7 of the Euratom Treaty. It is instead based on Article 47 and
refers to the participation of Euratom in the financing of the Joint
Undertaking.

This amendment would serve the purpose of
ensuring the transfer of funds from the Commission to Fusion for Energy for the
European contribution to ITER without the aforementioned requirements specific to
research programmes. This,
however, does not prevent, in particular in case of additional costs, voluntary
contributions from Members of the Joint Undertaking other than Euratom as
provided for in Article 12(1)(c) of the Statutes of that Undertaking.

This amendment allows securing the financing of
the project for the next Multiannual Financial Framework. The transfer of funds
will have the advantage not to be limited anymore to the five years foreseen by
Article 7 of the Euratom Treaty for research and training programmes. It will
be aligned with the period covered by the Multiannual Financial Framework and
run for seven years. According to the ITER Agreement, the ITER project will
have an initial duration of 35 years (i.e. until 2041); thus, subsequent
Council decisions will be needed to continue to fund the Euratom contribution
to this project.

Activities to be funded by this Decision are
supporting the implementation of the roadmap towards the production of
electricity from fusion by 2050, adopted by members of the European Fusion
Development Agreement (EFDA) in November 2012. As such, this Decision will
allow synergies and complementarities with fusion research activities funded
under Council Regulation XXX [the Euratom Research and Training Programme].

2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

This proposal takes
full account of the responses to an extensive public consultation based on
the Green Paper 'From Challenges to Opportunities: Towards a Common Strategic
Framework for EU research and innovation funding'[1], within the preparation of the
Euratom Research and Training Programme (2014-2018) contributing to the
"Horizon 2020" Framework programme for Research and Innovation.

ITER was included in this consultation and in the internal and
external evaluations for the drafting of the impact assessment. This impact assessment concluded that the benefits of ITER,
which balance scientific, technical and financial risks, are, in the long term,
the commercial exploitation of fusion energy and, in the near term, the
competitiveness benefits to industry.

On the basis of the decision adopted by the
European Council on 8 February 2013, this proposal
will provide continuity for the project, in particular vis-à-vis our
international partners and secure the ITER funding for the whole duration of
the next MFF.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

The legal basis for this
Council Decision is provided for by Article 47 of the Euratom Treaty. This
Decision shall constitute the basic act for the period covered by the next Multiannual
Financial Framework and will be the basis for the adoption of the yearly
financing decisions by the Commission. The Commission decisions will allow the
transfer of funds to Fusion for Energy during the period 2014-2020. This proposal
will replace the proposal for a Council Decision on the adoption of a
Supplementary Research Programme for the ITER project (2014-2018)[2] adopted by the
Commission on 21 December 2011.

There is an ongoing
process to amend the Statutes of Fusion for Energy, in particular to grant Croatia voting rights after its accession to Euratom on 1st July 2013. An amendment to
Article 12.1 (a)[3]
will also be introduced to extend the possibilities of financing through the
general budget of the European Union.

4.           BUDGETARY IMPLICATION

The 'legislative
financial statement' attached to this proposal for a Council Decision sets out
the budgetary implications and the human and administrative resources needed
for its implementation.

2013/0295 (NLE)

Proposal for a

COUNCIL DECISION

amending Decision 2007/198/Euratom
establishing the European Joint Undertaking for ITER and the Development of
Fusion Energy and conferring advantages upon it

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing
the European Atomic Energy Community, and in particular the third and fourth
paragraph of Article 47 thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)       Council Decision 2007/198/Euratom[4] established the European Joint
Undertaking for ITER and the Development of Fusion Energy (hereinafter "Joint
Undertaking") to provide the contribution of the European Atomic Energy
Community (hereinafter "Euratom") to the ITER International Fusion
Energy Organisation and the Broader Approach Activities with Japan as well as
to prepare and coordinate a programme of activities in preparation for the
construction of a demonstration fusion reactor and related facilities.

(2)       Decision 2007/198/Euratom
provided a financial reference amount deemed necessary for the Joint
Undertaking together with the indicative total contribution of Euratom towards
such amount, which should be made available through the Community research and
training programmes adopted pursuant to Article 7 of the Treaty.

(3)       The resources deemed
necessary for the Joint Undertaking during the ITER construction phase, covering
the period 2007-2020, amounted in March 2010 to EUR 7 200 000 000 (in 2008
value). In July 2010 the Council of the European Union capped this amount to
EUR 6 600 000 000 (in 2008 value).

(4)       The European Parliament
and the Council set the maximum level of the Euratom commitments for ITER in
the Multiannual Financial Framework for the period 2014-2020 at EUR 2 707 000
000 (in 2011 value).

(5)       It is necessary to amend
Decision 2007/198/Euratom to allow the financing of the activities of the Joint
Undertaking for the period 2014-2020 from the general budget of the European
Union and not through the Euratom research and training programmes.

(6)       Third countries which have
concluded a cooperation agreement with Euratom in the field of nuclear energy
research, including the controlled nuclear fusion, that associate their
respective research programmes with the Euratom programmes are to contribute to
the financing of the activities of the Joint Undertaking. Their contribution should
be determined in the respective cooperation agreement with Euratom.

(7)       It is also appropriate to
update Decision 2007/198/Euratom as regards the provisions on protection of the
 Union's financial interests.

(8)       It is appropriate to
inform the Council and the European Parliament on the implementation of Decision
2007/198/Euratom on the basis of information provided by the Joint Undertaking.

(9)       Decision 2007/198/Euratom
should therefore be amended accordingly,

HAS ADOPTED THIS DECISION:

Article 1

Decision 2007/198/Euratom is amended as
follows:

(1) in Article 4(2), the following subparagraph
is added:

"The contribution of third countries which
have concluded a cooperation agreement with Euratom in the field of nuclear
energy research, including the controlled nuclear fusion, that associate their
respective research programmes with the Euratom programmes shall be determined
in the respective cooperation agreement with Euratom."

(2) in Article 4, paragraph 3 is replaced by
the following:

"3.      The Euratom contribution to the
Joint Undertaking for the period 2014-2020 is set at EUR 2 915 015 000 (in current
values)."

(3) in Article 4, paragraph 4 is deleted.

(4) the following Article 5a is inserted:

"Article 5a
Protection of Union's Financial Interests

1.       The Commission shall take appropriate
measures ensuring that, when actions financed under this Decision are
implemented, the financial interests of the Union are protected by the
application of preventive measures against fraud, corruption and any other
illegal activities, by effective checks and, where irregularities are detected,
by the recovery of the amounts wrongly paid and, where appropriate, by
effective, proportionate and dissuasive penalties.

2.       The Commission or its representatives
and the Court of Auditors shall have the power of audit, on the basis of
documents and on-the-spot checks and inspections, over all grant beneficiaries,
contractors, subcontractors and other third parties who have received Euratom
funds under this Decision.

3.       The European Anti-fraud Office (OLAF)
may carry out investigations, including on-the-spot checks and inspections, in
accordance with the provisions and procedures laid down in Regulation (EC) No
1073/1999 of the European Parliament and of the Council* and Council Regulation
(Euratom, EC) No 2185/96** with a view to establishing whether there has been
fraud, corruption or any other illegal activity affecting the financial
interests of the Union in connection with an agreement or decision or a
contract funded under this Decision.

Without prejudice to paragraph 2 and the first
subparagraph of this paragraph, cooperation agreements with third countries and
international organisations, contracts, agreements and decisions resulting from
the application of this Decision shall expressly empower the Commission, the
Court of Auditors and the OLAF to conduct audits, on-the-spot checks and
inspections.

__________________

- 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)
(OJ L 136, 31.05.1999, p. 1).

** Council Regulation
(Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and
inspections carried out by the Commission in order to protect the European
Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2)."

(5) the following Article 5b is inserted:

"Article 5b 
Mid-term review

The Commission shall submit to the Council and
to the European Parliament, by 31 December 2017, at the latest, a progress report
on the implementation of this Decision on the basis of information provided by
the Joint Undertaking. That report shall set out the results of the use of the
Euratom contribution referred to in Article 2 as regards commitments and
expenditure."

Article 2
Entry into force

This Decision shall enter into force on the third
day following that of its publication in the Official Journal of the
European Union.

It shall apply from 1 January 2014.

Article 3
Addressees

This Decision is addressed to the
Member States.

Done at Brussels,

For
the Council

The
President

LEGISLATIVE FINANCIAL STATEMENT

1.         FRAMEWORK OF
THE PROPOSAL/INITIATIVE

1.1.      Title
of the proposal/initiative

1.2.      Policy area(s) concerned in the
ABM/ABB structure

1.3.      Nature of the proposal/initiative

1.4.      Objective(s)

1.5.      Grounds for the proposal/initiative

1.6.      Duration and financial impact

1.7.      Management method(s) envisaged

2.         MANAGEMENT
MEASURES

2.1.      Monitoring and reporting rules

2.2.      Management and control system

2.3.      Measures to prevent fraud and irregularities

3.         ESTIMATED
FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

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

3.2.      Estimated impact on expenditure

3.2.1.   Summary of estimated impact on
expenditure

3.2.2.   Estimated impact on operational
appropriations

3.2.3.   Estimated impact on appropriations of
an administrative nature

3.2.4.   Compatibility with the current
multiannual financial framework

3.2.5.   Third-party participation in financing

3.3.      Estimated impact on
revenue

LEGISLATIVE FINANCIAL STATEMENT

FRAMEWORK OF THE PROPOSAL/INITIATIVE

Title of
the proposal/initiative

Council
Decision amending Council Decision (2007/198/Euratom) of 27 March 2007 establishing
the European Joint Undertaking for ITER and the development of Fusion Energy and
conferring adavantges upon it

Policy area(s) concerned in the ABM/ABB structure[5]

- 08 –
Research and Innovation

Nature of the proposal/initiative

 ̈ The proposal/initiative relates to a
new action

 ̈ The proposal/initiative relates to a new action
following a pilot project/preparatory action[6]

ý The
proposal/initiative relates to the extension of an existing action

 ̈ The proposal/initiative relates to an action redirected
towards a new action

Objectives

The Commission's multiannual strategic objective(s)
targeted by the proposal/initiative

This
Council Decision shall have the general objective of contributing to the
long-term decarbonisation of the energy system in a safe, efficient and secure
way. This Council Decision will contribute to the Europe 2020 strategy and to
its flagship initiatives "Innovation Union", "An industrial
policy for the globalisation era" and "An agenda for new skills and
jobs", since it will support the mobilisation of European high-tech
industries which will gain new skills and manufacturing capabilities through
participation in Fusion for Energy (F4E) procurement contracts. In addition,
since the decarbonisation of the energy system is one of its major objectives,
it will also contribute to the "Resource efficient Europe" flagship
initiative.

Specific objective(s) and ABM/ABB activity(ies) concerned

To provide the Euratom contribution to the ITER
Organization, for the construction of the ITER facilities, as well as for ITER
related activities.

Expected result(s) and impact

Specify
the effects which the proposal/initiative should have on the
beneficiaries/groups targeted.

This
Decision will result in Europe making its contributions to the construction of
ITER. Europe is making the largest contribution to the project (45% of the
construction costs) and the impacts of this Decision will be greatest in Europe, both at near term (benefits to European industry) and at long term (a leading role
in the commercial exploitation of fusion energy).

The project
is already having a positive impact on industrial competitiveness and job
creation as the project requires procurement of high tech components.. More
than three quarters of the Community contribution to ITER will result in
contracts with private companies. The creation of new jobs in Europe directly
due to ITER activities will be significant. In the long term, ITER presents a
unique opportunity for European high tech industry and construction companies
to gain a competitive advantage and become leading actors in the design of the
first generation of fusion power plants and the subsequent international
commercialisation.

Indicators of results and impact

Specify
the indicators for monitoring implementation of the proposal/initiative.

The
indicators which will measure progress in the European contributions to ITER
construction will be the achievement of milestones by F4E in providing the
european components as "in kind" contributions to ITER. The overall
planning and annual Work Programme of F4E specify the timetable for the
achievement the milestones which covers all the procurement activities during
ITER construction. F4E regularly reports to its governance body (the Governing
Board) and to the EU Council on the project's progress.

Grounds for the proposal/initiative

Requirement(s) to be met in the short or long term

The
European Council decided on 8 February 2013 to fund the ITER project within the
Multi-annual Financial Framework (MFF) for the period 2014-2020. This Council
Decision will allow the transfer of funds to Fusion for Energy to carry out the
tasks assigned to it.

Added value of Euratom involvement

The
involvment of Euratom stands from the signature of the ITER Agreement. This
Decision allows for sound budgetary multi annual planning of F4E.

Lessons learned from similar experiences in the past

The Joint
European Torus (JET) project has demonstrated that building and operating a
large fusion research infrastructure under the Euratom coordination is
efficient and maximises the scientific and industrial benefits. However, the
scale required for the ITER construction is unprecedented and requires a
collaboration at global level for which there is no example to be found in the
past.

Coherence and possible synergy with other relevant
instruments

This
Decision will allow synergies and complementarities with fusion research
activities with the Euratom research programme complementing Horizon 2020
(2014-2018). The fusion activities under this framework will provide important
scientific contribution to the construction and operation of ITER.

Duration and financial impact

ý Proposal/initiative of limited duration

ý         Proposal/initiative in effect from
01/01/2014 to 31/12/2020

ý         Financial impact from 2014 to 2026

 ̈ Proposal/initiative of unlimited duration

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

followed by full-scale
operation.

Management mode(s) envisaged[7]

ý Centralised direct management by the Commission

ý Centralised indirect management with the delegation of implementation tasks to:

 ̈         executive agencies

ý         bodies set up by the Communities[8]

 ̈         national public-sector bodies/bodies
with public-service mission

 ̈         persons entrusted with the
implementation of specific actions pursuant to Title V of the Treaty on
European Union and identified in the relevant basic act within the meaning of
Article 49 of the Financial Regulation

 ̈ Shared
management with the Member
States

 ̈ Decentralised
management with third countries

 ̈ Joint
management with international
organisations (to be specified)

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

Comments:

Management
will be through the services of the Commission and through F4E. The Commission
represents Euratom in the governing bodies of both the ITER Organization (IO)
and F4E.

MANAGEMENT MEASURES

This Decision will be implemented by the
Commission and F4E, which channels the Euratom contribution to the ITER Project
and to other activities related to ITER, such as the Broader Approach
activities with Japan.

The Commission, on behalf of Euratom,
participates in the decision-making bodies the ITER Organization and F4E: 1)
The Commisison participates in the the ITER Council, in the Scientific and
Technical Advisory Committee (STAC) and in the Management Advisory Committee of
the ITER Council (MAC); 2) as member of F4E, the Commission participates in the
Governing Board, the Executive Committee, the Technical Advisory Panel, the
Administration and Finance Committee and the “Bureau”.

Monitoring and reporting rules

Monitoring and reporting are based on the
management and reporting rules that are applied by F4E and the IO, which
require the approval of all key documents by the governaning bodies. Through
these bodies, the Commission monitors and revises the documents defining the
implementing activities for ITER.

F4E is setting up a project management and
reporting process, fully integrating various aspects of the reporting system to
the GB.

Every year and in line with the Council
conclusions of 12 July 2010, F4E reports to the Council on the progress
achieved in implementing the cost containment and savings plan as well as on
the performance and management of F4E and the ITER project, including the
fulfillment of the schedule activities within its annual budget. In response to
these Council conclusions, F4E has appointed an independent expert who assesses
the project progress on the basis of existing reports and submits its opinion
to the F4E GB and to the Competitiveness Council once a year.

F4E and the Commission have signed an
Administrative Agreement which defines the modalities and conditions applicable
to the transfer of the Community financial contribution to F4E.

Management and control system

The Commission participates in the
decision-making bodies of the IO and F4E. The Commission follows and revises
all initiatives needed to implement the ITER project, in particular those of a
financial nature.

The Commission's Internal Audit Service (IAS)
acts as Internal Auditor of F4E since 2012, under the modalities agreed between
the Directorate General of the IAS and F4E. Also, the European Anti-Fraud
Office (OLAF) enjoys the same powers with respect to F4E and its staff as it
enjoys in respect of Commission departments.

As regards the governance of F4E, at the end of
May 2011, F4E's GB at the initiative of the Commission adopted a set of
measures to improve the governance of F4E. In addition, since the 1st of
January 2011, a new organisational structure to have a more project-oriented
organisation has been put in place.

F4E's Financial Regulation is similar to the
Commission's Financial Regulation, including public procurement procedures
equivalent to the Commission's standards.

F4E is accountable to its GB, to the Council and
the European Parliament, the latter providing the annual discharge for the
budget, based on a recommendation by the Council. In addition, F4E is audited
twice a year by the European Court of Auditors that provides a report to the
Commission, the Council and the Parliament as part of the annual discharge.

Internal control framework

The internal control framework is built on:

1. The Commission's Internal Control Standards
applied by the Directorate General in charge of ITER when adopting any decision
concerning F4E, in particular those having a financial nature;

2. The Internal Control Standards that F4E is
implementing to carry out systematic surveillance exercises and follow-up the
implementation of any recommendation;

3. Technical, financial and political
Commission's review of F4E and ITER activities;

4. Ex-ante checks and ex-post controls on
procurements. Risks are assessed regularly and progress in the execution of
work and the consumption of resources is monitored regularly, based on defined
objectives and indicators.

2.2.2.   Expected
level of risk of non-compliance

There is an
inherent financial risk in F4E due to the nature of its activities (large and
complex in-kind procurements with high technical risks). Measures to monitor
and better control the functioning of F4E have been put in to alleviate this
situation. The Commission together with F4E will continue to identify the risks
related to the implementation of this project, notably in terms of costs, and
will take the most appropriate measures to manage and mitigate these risks.

2.3.      Measures
to prevent fraud and irregularities

The Commission's Directorate General charged with
the implementation of the ITER project and budget is committed to fight against
fraud in line with the Commission Anti-fraud strategy COM(2011)376 of 24 June
2011.

The administrative monitoring of the contracts,
grants and related payments is under the responsibility of F4E.

The Commission and F4E take into account the
financial interests of the European Union notably in compliance with Council
Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection
of the European Communities’ financial interests and Article 53(a) of the
Financial Regulation.

F4E developes ex-post audit strategies to assess
the legality and regularity of the underlying transactions.

The European Anti-Fraud Office (OLAF) enjoys the
same powers with respect to F4E and its staff, as it enjoys in respect of
Commission departments.

3.         ESTIMATED
FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

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

New budget lines
requested

In
order
of multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

|| Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

Heading 1 || 08 01 05 21 Expenditure related to officials and temporary agents implementing Research and Innovation progarmmes – ITER progarmme* 08 01 05 22 External personnel implementing Research and Innovation programmes – ITER programme* 08 01 05 23 Other management expenditure for Research and Innovation programmes – ITER programme* 08 04 01 Construction, operation and exploitation of the ITER facilities – European Joint Undertaking for ITER – Fusion for Energy (F4E) || Diff./non-diff. || NO || NO || YES || YES

*- The precise numbering of the budget lines will be
defined at later stage.

3.2.      Estimated impact on expenditure

3.2.1.   Summary of estimated impact on expenditure

In current prices - EUR million (to 3
decimal places)

|| || || Year 2014[9] || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Years >2020 || TOTAL

|| || || || || || || || ||

Number of budget line. 08 04 01 || Commitments || (1) || 720,882 || 881,858 || 319,853 || 317,241 || 289,125 || 260,929 || 125,127 || || 2.915,015

Payments || (2) || 78,179 || 150,000 || 180,000 || 300,000 || 460,000 || 570,000 || 460,000 || 716,836 || 2.915,015

|| || ||

Appropriations of an administrative nature financed from the envelope for ITER programme[10] || || || || || || || || ||

Number of budget line 08 01 05 21 08 01 05 22 08 01 05 23 || || (3) || 5,128 0,133 1,846 || 6,477 0,979 2,610 || 6,606 0,999 2,662 || 6,738 1,019 2,715 || 6,874 1,039 2,769 || 7,135 0,935 2,826 || 7,278 0,954 2,882 || || 46,236 6,058 18,310

TOTAL appropriations Heading 1 || Commitments || =1+3 || 727,989 || 891,924 || 330,120 || 327,713 || 299,807 || 271,825 || 136,241 || || 2.985,619

Payments || =2+3 || 85,286 || 160,066 || 190,267 || 310,472 || 470,682 || 580,896 || 471,114 || 716,836 || 2.985,619

*

3.2.2.   Estimated impact on operational appropriations

 ̈         The proposal/initiative does not
require the use of operational appropriations

ý         The proposal/initiative requires the
use of operational appropriations, as explained below:

Commitment appropriations in EUR million (to 3 decimal
places)

Indicate objectives and outputs ò || || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

OUTPUTS

Type of output[11] || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost

SPECIFIC OBJECTIVE No 1[12]... || || || || || || || || || || || || || || || ||

- Output* || || 416,430 || 1 || 720,882 || 1 || 881,858 || 1 || 319,853 || 1 || 317,241 || 1 || 289,125 || 1 || 260,929 || 1 || 125,127 || 7 || 2.915,015

Sub-total for specific objective N°1 || || || || || || || || || || || || || || || ||

TOTAL COST || 1 || 720,882 || 1 || 811,858 || 1 || 319,853 || 1 || 317,241 || 1 || 289,125 || 1 || 260,929 || 1 || 125,127 || 7 || 2.915,015

- The output of the
ITER project will be the annual activity report provided by F4E (Barcelona
Agency) in which the advancement of the project is described.

3.2.3.   Estimated impact on appropriations of an
administrative nature

3.2.3.1.            Summary

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

ý         The proposal/initiative requires the
use of administrative appropriations, as explained below:

EUR
million (to 3 decimal places)

|| Year 2014[13] || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL

HEADING 1 of the multiannual financial framework || || || || || || || ||

Human resources running the programme (RTD) || 5,261 || 7,456 || 7,605 || 7,757 || 7,913 || 8,070 || 8,232 || 52,294

Other administrative expenditure (RTD) || 1,846 || 2,610 || 2,662 || 2,715 || 2,769 || 2,826 || 2,882 || 18,310

Subtotal HEADING 1 RTD || 7,107 || 10,066 || 10,267 || 10,472 || 10,682 || 10,896 || 11,114 || 70,604

F4E || || || || || || || ||

Human resources || 34,300 || 37,800 || 38,600 || 39,400 || 40,200 || 39,900 || 39,500 || 269,700

Other expenditure of an administrative nature* || 6,900 || 7,300 || 10,400 || 7,500 || 7,700 || 7,900 || 8,100 || 55,800

Subtotal HEADING 1 F4E || 41,200 || 45,100 || 49,000 || 46,900 || 47,900 || 47,800 || 47,600 || 325,500

*
estimated figures

TOTAL HEADING 1 || 48,307 || 55,166 || 59,267 || 57,372 || 58,582 || 58,696 || 58,714 || 396,104

3.2.3.2.            Estimated requirements of human
resources

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

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

Estimate to be expressed in
full amounts (or at most to one decimal place)

|| Year 2014[14] || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020

||  Establishment plan posts (officials and temporary agents) ITER, to be integrated into s specific establishment plan for ITER in Heading 1

At Headquarters 08 01 05 21 || 50 || 50 || 50 || 50 || 50 || 50 || 50 ||

|| || || || || || || ||

|| || || || || || || ||

|| || || || || || || ||

||  External personnel (in Full Time Equivalent unit: FTE)[15] ITER in Heading 1 ||

08.04.01 || AD Officials || 44 || 44 || 44 || 44 || 44 || 44 || 44 ||

AD Temporary || 174 || 174 || 174 || 174 || 174 || 174 || 174 ||

AST Officials || 18 || 18 || 18 || 18 || 18 || 18 || 18 ||

AST Temporary || 26 || 26 || 26 || 26 || 26 || 26 || 26 ||

CA || 153 || 153 || 153 || 153 || 153 || 153 || 153 ||

SNE || 7 || 7 || 7 || 7 || 7 || 7 || 7 ||

- (JU ITER-F4E (Barcelona) (*) || 422 || 422 || 422 || 422 || 422 || 422 || 422 ||

08 01 05 22 (CA, INT, SNE - Indirect research) || 15 || 15 || 15 || 15 || 15 || 15 || 15 ||

10 01 05 22 (CA, INT, SNE - Direct research) || || || || || || || ||

Other budget lines (specify) || || || || || || || ||

TOTAL || 487 || 487 || 487 || 487 || 487 || 487 || 487 ||

08 is the policy area or budget title concerned.

The administrative cost (including staff) of running the ITER
programme (outside the operating grant to the European Joint Undertaking for
ITER (F4E)) should follow the operational appropriations for the ITER programme
itself.

(*) The 422 FTE financed
in Budget 2012 under lines 08.04 01.

Description
of tasks to be carried out:

Officials and temporary agents || Staff working in the headquarters are in charge of the definition and subsequent follow-up of the activities both from the domestic agency in Barcelona (F4E) and the ITER project where the Commission is a representative of the European partnership. Staff working in the domestic agency in Barcelona (F4E) are in charge of the European contribution for the procuring, contracting and financial implementation of the work plan of ITER International Organisation as defined in the ITER Council decision 2007/198/Euratom of 27 March 2007.

External personnel

3.2.4.   Compatibility with the current multiannual
financial framework

X         Proposal/initiative
is compatible the current multiannual financial framework.

 ̈         Proposal/initiative will entail
reprogramming of the relevant heading in the multiannual financial framework.

Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.

 ̈         Proposal/initiative requires
application of the flexibility instrument or revision of the multiannual
financial framework[16].

Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.

3.2.5.   Third-party contributions

The proposal/initiative
does not provide for co-financing by third parties

ý The proposal/initiative provides for the
co-financing estimated below*:

Appropriations in EUR million (to 3
decimal places)

|| Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || Total

Specify the co-financing body || || || || || || || ||

TOTAL appropriations cofinanced || || || || || || || ||

- - The programme may receive third countries contributions (based on the
cooperation agreement between the third countries and Euratom) which at this
stage are not known yet.

3.3.      Estimated impact on revenue

 ̈         Proposal/initiative has no financial
impact on revenue.

ý         Proposal/initiative has the following
financial impact:

 ̈         on own resources

ý         on miscellaneous revenue

EUR million (to 3 decimal places)

Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[17]

Year N || Year N+1 || Year N+2 || Year N+3 || ... insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6)

Article 6XXX* || || || || || || || ||

*The
precise numbering of the budget lines will be defined at a later stage.

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

08 04 50 01 -
Appropriations accruing from contributions from (non-European Economic Area)
third parties to research and technological development (2014 to 2020);

08 04 50 02 - Appropriations accruing from
contributions from (non-European Economic Area) third parties to research and
technological development (prior 2014)

Specify
the method for calculating the impact on revenue.

“Certain third countries may contribute to
a supplementary funding of the ITER through cooperation agreements between
these countries and Euratom. The method of calculation will be agreed in these Cooperation
Agreements and is not necessarily the same in all agreements. Mostly the
calculations are based on the GDP of the third country compared to the GDP of
the Member States whilst applying this percentage to the overall budget voted.”

[1]               COM (2011) 48

[2]               COM (2011) 931

[3]               This Article provides for "the Euratom
contribution shall be made available through the Community research and
training programmes adopted pursuant to Article 7 of the Treaty"

[4]               Council Decision 2007/198/Euratom of 27 March 2007
establishing the European Joint Undertaking for ITER and the Development of
Fusion Energy and conferring advantages upon it (OJ L 90, 30.03.2007, p. 58).

[5]               ABM: Activity-Based
Management – ABB: Activity-Based Budgeting.

[6]               As referred to in Article 49(6)(a) or (b) of the
Financial Regulation.

[7]               Details of management
modes and references to the Financial Regulation may be found on the BudgWeb
site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[8]               As referred to in Article 185 of the Financial
Regulation.

[9]               Year N is the year in which implementation of the
proposal/initiative starts.

[10]             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.

[11]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).

[12]             As described in Section 1.4.2. "Specific
objective(s)..."

[13]             Year N is the year in which implementation of the
proposal/initiative starts.

[14]             Year N is the year in which implementation of the
proposal/initiative starts.

[15]             CA= Contract Agent; INT= agency staff ("Intérimaire");
JED= "Jeune Expert en Délégation" (Young Experts in
Delegations); LA= Local Agent; SNE= Seconded National Expert;

[16]             See points 19 and 24 of the Interinstitutional
Agreement.

[17]             As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25% for collection costs.