# EUR-Lex - 52013PC0500 - EN

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# 52013PC0500

**Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the participation of the Union in the Active and Assisted Living Research and Development Programme jointly undertaken by several Member States /* COM/2013/0500 final - 2013/0233 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

1.1.        Objectives of the proposal

The objective of this proposal is the
decision by Council and Parliament, on the basis of Article 185 of the TFEU, to
provide the legal means for the participation by the European Union in the
Active and Assisted Living Joint Programme undertaken by several Member States
(AAL Programme).

The overall objectives of the AAL Programme
are:

·
Enhance the availability of Information and
Communication Technology (ICT) based products and services for active and
healthy ageing, to improve the quality of life for elderly and their carers and
help increase the sustainability of care systems;

·
Maintain a critical mass of trans-European
applied research, development and innovation for ICT based products and
services for ageing well, in particular involving SMEs and users;

·
Leverage private investments and improve
conditions for industrial exploitation by providing a coherent framework for
developing European approaches and solutions including common minimum standards
that meets varying national and regional social preferences and regulatory
aspects

1.2.        Grounds for the proposal

Demographic ageing has been identified in
the Europe 2020 strategy as both a challenge and an opportunity for smart,
sustainable, and inclusive growth. The flagship initiatives “A Digital Agenda
for Europe” and “Innovation Union” both address demographic ageing as a
priority. The Digital Agenda focuses on ICT-enabled innovative services,
products and processes, and includes several actions on eHealth and a specific
action on reinforcing the AAL Programme. The AAL Programme will make an
important contribution to the Europe 2020 strategy and related flagship
initiatives and will help addressing the demographic challenge and create new
opportunities, in particular for small and medium size enterprises The
European Innovation Partnership on Active and Health Ageing (EIP AHA) expects
ICT solutions to play an important role in meeting its goals of two additional
healthy life years by 2020 as well as improving quality of life for citizens
and improving efficiency of care systems in Europe. The AAL Programme is a
major component for supporting the EIP AHA with ICT-based innovation as it
focuses on the "Valley of Death" part of the innovation chain where
research results need to be translated into new products and services ready to
enter the market. The AAL Programme will also benefit from the EIP, because the
EIP will accelerate market creation, large scale uptake and also contribute to
improved boundary conditions for the market: standardisation and
interoperability for example, which are not covered by the Programme, but are
mentioned in evaluation and consultations as barriers to deployment. The AAL
Programme is complemented by major national initiatives, such as a national
initiative on AAL and ageing in Germany, an Assisted Living Innovation Platform
in the UK and a Platform on Innovation in Ageing in France.

With these inter-related programmes that
jointly cover a significant part of the research and innovation ‘chain’, Europe
has a globally unique strength in ICT for ageing well. The AAL Programme
complements well the proposed ICT and ageing longer-term research and
innovation and market validation activities under the Horizon 2020 Framework
Programme.

The AAL Programme is also complementary to
the "More Years, Better Lives" Joint Programming Initiative (JPI) on
demographic change that brings together 13 European Countries, to address new
science based knowledge for future policy making on ageing, based on a wide
range of research disciplines. The AAL Programme can provide an application
context for the JPI’s multi-disciplinary research and feed the JPI research
agenda with user experience, while sharing research methodologies such as the
life course approach.

Taken together, these initiatives cover a
large part of the chain from fundamental research to market uptake, as
recommended by a number of independent assessments on EU research and
innovation programmes, as well as EU policy documents. These synergies will be
further strengthened under the Commission's proposal for Horizon 2020, the
Framework Research Programme for 2014-2020, which has a specific section for
societal challenges, with Health, Demographic Change and Wellbeing as one of
the priorities. The AAL Programme is mentioned as one of the Article 185 TFEU
initiatives eligible for continued support, provided they meet a given set of
criteria.

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

2.1.        Consultation on the future
on the AAL JP

The Commission has consulted the plans for
the AAL Programme with several external and internal stakeholders. The online
Public Consultation on the EIP-AHA carried out in 2011 reached 524 respondents which expressed their views on the
existing national, regional and local initiatives for active and healthy
ageing; from. About 38% of responses came from government institutions, 23%
from the industry including SMEs, 7% from the health and social care sector, 17%
from the research and academia and 15% from the organisation representing the
older people. The consultation showed that there is an insufficient involvement of end-users in the
development stage, which is the most significant barrier to innovation.

An interim evaluation
of the current AAL JP was carried out in December 2010 by five high level
experts headed by former Commissioner M. Kuneva[1].
It included interviews with over 40 selected stakeholders across Europe directly involved in the AAL
JP value-chain. About 33% of them came from government institutions, 27% from
the industry including SMEs, 27% from the research and academia and 11% from
the organizations representing older people. The evaluation panel stressed that it is important for
the AAL JP and its follow-up to ensure high operational
performance, further increase focus on broadly targeted solutions in real life
situations, promote technology for carers and intermediaries and strengthen
links with users and ensure deployment activities.

Furthermore public online consultation on
the AAL JP was carried out in 2010 and projects
funded under the AAL JP were surveyed in 2011.

The Commission has also consulted its
different part through Impact assessment Steering Group meetings in 2012, which
contributed to the planning and roadmap for the preparation of the Impact
assessment report, in particular concerning the problem statement and the
relevance of the AAL JP to other DGs. The Art. 185 Coordination Group led by DG
RTD contributed to the structure and argumentation of this report.

2.2.        The policy options

The Impact assessment report included the
following options:

Option 1 - AAL JP2
identical to AAL JP1 - This 'business as usual'- option is baseline scenario
presenting the continuation of the AAL JP for the years 2014 – 2020, just as
the current AAL JP which runs from 2008 to 2013.

Option 2 - No AAL JP2
- This option entails that there is no dedicated EU programme and co-financing
to bring together national research and innovation programmes in the field of
ICT for ageing well at the EU level after 2013. The money reserved for the
follow up to the AAL JP under the proposed H2020 could be spent – if it was
adopted – on additional research for ageing well within H2020 framework.

Option 3 - This
option of the follow-up to AAL JP1 would comprise an adapted scope and improved
implementation. The scope of the AAL JP2 programme would be aligned to the full
scope of the EIP AHA. Besides the Active Ageing and Independent Living pillar
of EIP AHA also the other two pillars would covered: Prevention, screening and
early diagnosis, and Care and Cure. Due to the change of the scope by the
alignment to EIP AHA, the name of the programme would change from Ambient
Assisted Living JP to Active and Assisted Living JP. The programme would be
co-financed by the Member States as well as project participants as during the
current AAL JP 2008 to 2013. The level of EC financing from Horizon 2020 would
remain the same as under the FP7. This option would also entail higher involvement of end-users, broadening the basis of funding to all actors, and improving the
operational performance.

2.3.        Consultation on the impact
assessment

These options were reviewed in February
2012 by the AAL JP General Assembly, which concluded by vote that continuing
the programme is of strategic importance and 15 out of 23 currently
participating countries stated their preferred scenario is the Option 3. The
second preferred option was to continue the programme in its current form
represented by the Option 1. Only two countries would not support the
continuation of the programme – Option 2.

In November 2012, the
Impact Assessment Board reviewed and approved the report. In its Opinion it
requested improvements of the impact assessment report which have been taken
into account. In particular the report now better explains the policy context,
the remaining problems, market failures and the baseline scenario. The
objectives were revised to provide solid basis for the measurement of the
progress of the AAL JP2. Different funding scenarios were illustrated in a more
comprehensive manner in the sensitivity analysis and the possible social and
health impacts were further developed. Finally the comparison of options in
terms of effectiveness, efficiency and coherence was included.

3.           LEGAL ELEMENTS OF THE PROPOSAL

3.1.        Legal basis

The proposal for the AAL Programme is based
on Article 185 of the Treaty on the Functioning of the European Union (TFEU), which
foresees that the Union may make provision for the participation of the European
Union in research and development programmes undertaken by several Member
States, including participation in the structures created for the execution of
those programmes.

3.2.        Subsidiarity principle

The subsidiarity principle applies as the
proposal does not fall under the exclusive competence of the European Union.
Subsidiarity is safeguarded by basing the proposal on Article 185 which
explicitly foresees the participation of the Union in research programmes
undertaken by several Member States. By implementing all operational aspects
where possible at national level, while ensuring a coherent approach at the
European level of the joint programme.

The objectives of the proposal cannot be
sufficiently achieved by the Member States alone as the specific knowledge and
excellence required for research and development of ICT based products and
services for ageing are spread across national borders and hence cannot be
combined at national level only. Without a coherent approach at European level
with critical mass, there is a high risk of duplication of efforts with the
consequence of increased costs. Furthermore, it is unlikely that a genuine
internal market for interoperable ICT solutions for ageing well can be
established without a joint programme with a European dimension.

The EU added value is directly linked to
the problems: fragmentation of the EU market and of research efforts, a lack of
focus on trans-EU deployment and a lack of a shared European vision on the
markets for ICT and ageing well.

3.3.        Proportionality principle

Article 185 of the TFEU invites the Union
to ‘make provision, in agreement with the Member States concerned, for
participation in research and development programmes undertaken by several
Member States, including participation in the structures created for the
execution of those programmes’. Member States are the driving force of the
initiative.

The proposal complies with the
proportionality principle as Member States will be responsible for developing
their joint programme and all operational aspects. The dedicated implementation
structure AAL Association has already demonstrated for the current AAL JP
that it can implement the programme efficiently and effectively. The Union will
provide incentives for improved coordination, ensure synergies with and
contribution to EU policies and to the priorities of Horizon 2020, monitor
implementation of the programme and ensure the protection of the EU’s financial
interests.

Notably, the proposed organisational
structure ensures a minimum of administrative burden, by having the main
administrative work being executed through national agencies under the
supervision and overall responsibility of the AAL Association created for this
purpose.

3.4.        Choice of the instrument

The proposed instrument is a Decision by
European Parliament and Council based on Article 185 of the TFEU. The
conclusions of the interim evaluation and an analysis of the options in the
impact assessment have demonstrated that Article 185 is the most appropriate
means for achieving the objectives of the AAL programme.

3.5.        Derogations from the Horizon
2020 Rules for Participation

Derogations from the following provisions
of Regulation (EU) No ... [Rules for the participation and dissemination in
Horizon 2020] are necessary to allow for the Union financial contribution and
Intellectual Property Rights protection to be implemented in accordance with the
rules for participation of the participating national programmes.

·
Verification of financial capacity extended to
all the participants and performed by participating national funding agencies:
Art. 14.5

·
The dedicated implementation structure does not
enter into agreement with the final beneficiaries: Art. 16(1)

·
Application of national rules for funding,
eligibility of costs, certificates on the financial statements and certificates
on the methodology: Art. 19[(1), (5) to (7)] and Art. 22-29

·
Rules governing IPR and dissemination of results
following national rules: Art. 38-45

This is justified because the AAL Programme
is intended as a close to market programme, in which many different national
funding streams are joined up (such as research innovation, health and industry
funding programmes). These programmes have by their nature different participation
rules and cannot be expected to fully align with Horizon 2020 Rules for
Participation.

In addition the AAL Programme is targeting
in particular small and medium size enterprises and user organisations not
usually participating in EU research and innovation activities. In order to
lower the administrative and legal threshold for their participation, the Union
financial contribution is provided in accordance with the rules of their national
funding programmes which they are more used to and implemented through a single
grant together with the corresponding national public support. The AAL JP
(2008-2013) has demonstrated that this approach has worked well and has allowed
to attract a high participation of more than 40% of small and medium size
enterprises.

The proposal provides appropriate
safeguards to guarantee respect of the principles of equal treatment and
transparency by the dedicated implementation structure when providing financial
support to third parties, as well as for the protection of the financial
interests of the Union. It also foresees the inclusion of detailed provisions
to this effect in an agreement to be concluded by the Union and the dedicated
implementation structure.

4.           BUDGETARY IMPLICATION

The Legislative Financial Statement
presented with this decision sets out the indicative budgetary implications. The
provisions of the Decision and of the delegation agreement to be concluded
between the Commission and the dedicated implementation structure must ensure
that the EU’s financial interests are protected.

The maximum amount EU contribution shall be
EUR [175,000,000 from the Horizon 2020 DG Connect budget allocated to Societal
Challenge 1, theme health, demographic change and wellbeing:[2]

5.           OPTIONAL ELEMENTS

5.1.        Simplification

The proposal provides for simplification of administrative
procedures for private parties. Notably, recipients of the research funding
from the new joint programme will benefit from a single contracting and payment
scheme using familiar national rules without any need for separate reporting concerning
the Union contribution. The EU will deal directly with the AAL Association,
which will be in charge of allocating, monitoring and reporting on the use of
the EU’s contribution.

5.2.        Review/revision/sunset
clause

The proposal includes a review clause for a mid-term review after
three years. The overall duration will be limited to seven years of
intervention and three additional years of completion.

5.3.        European Economic Area

The proposed act concerns an EEA matter and should therefore extend
to the European Economic Area.

2013/0233 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

on the participation of the Union in the
Active and Assisted Living Research and Development Programme jointly
undertaken by several Member States

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 185 and the second
paragraph of Article 188, thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the opinion of the
European Economic and Social Committee[3],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)       In its Communication ‘Europe
2020 A strategy for smart, sustainable and inclusive growth’[4], the Commission underscores the
need to develop favourable conditions for investment in knowledge and
innovation so as to achieve smart, sustainable and inclusive growth in the
Union. Both the European Parliament and the Council have endorsed that strategy.

(2)       Horizon 2020 - The
Framework Programme for Research and Innovation (2014-2020) established by Regulation (EU) No .../2013 of the European Parliament
and of the Council of ... 2013[5]
(hereinafter "Horizon 2020 Framework Programme") aims at achieving a
greater impact on research and innovation by contributing to the strengthening
of public-public partnerships, including through Union participation in
programmes undertaken by several Member States in accordance with Article 185 of
the Treaty.

(3)       Decision No 742/2008/EC of
the European Parliament and of the Council of 9 July 2008 on the Community's participation
in a research and development programme undertaken by several Member States
aimed at enhancing the quality of life of older people through the use of new
information and communication technologies[6]
provides for a Community financial contribution to the Ambient Assisted Living Joint
Research and Development Programme (hereinafter "AAL JP") matching
that of the Member States but not exceeding EUR 150 000 000 for the
duration of the Seventh Framework Programme of the European Community for
research, technological development and demonstration activities (2007-2013) established
by Decision No 1982/2006/EC of the European Parliament and of the Council of 18
December 2006[7].

(4)       In December 2012, the
Commission communicated to the European Parliament and the Council a report on the
interim evaluation of the AAL JP[8].
That evaluation was carried out by an expert panel. The overall opinion of that
expert panel was that AAL JP had achieved good progress towards its objectives
and remarkable results and that it should be continued beyond the current
funding period. The expert panel noted however a few shortcomings, notably the
need for stronger user involvement in projects and further improvements of the
operational performance in terms of time to contract and time to payment. [

(5)       In its communication entitled
‘The demographic future of Europe — from challenge to opportunity’[9], the Commission underlined the
fact that demographic ageing is one of the main challenges facing all the
Member States and that increased use of new technologies could help to control
costs, improve well-being and promote the active participation in society of elderly
people, as well as improving the competitiveness of Union economy.

(6)       In its entitled ‘Europe
2020 Flagship Initiative Innovation Union’[10],
the Commission indicated the ageing of the population as one of the societal
challenges where innovation breakthroughs can play an important role and boost
competitiveness, enable European companies to lead in the development of new
technologies, to grow and assume global leadership in new growth markets,
improve the quality and efficiency of public services and so contribute to
creating large numbers of new quality jobs.

(7)       In its communication entitled
‘European flagship initiative Digital Agenda for Europe’[11], the Commission proposed to
reinforce the AAL JP in order to help address the challenges of the ageing
population.

(8)       In its communication entitled
‘Taking forward the Strategic Implementation Plan of the European Innovation
Partnership on Active and Healthy Ageing’[12],
the Commission proposed to take account of relevant priorities of the Plan for
future research and innovation work programmes and instruments which are part
of Horizon 2020 Framework Programme. The Commission also proposed to take into
account the contributions that can be made by the AAL JP to the European
Innovation Partnership on Active and Healthy Ageing

(9)       Under the European
Innovation Partnership on Active and Healthy Ageing established under the
Innovation Union, ICT solutions are expected to play an important role in
meeting its goals of two additional healthy life years by 2020 as well as
improving quality of life for citizens and improving efficiency of care systems
in the Union. Its Strategic Implementation Plan sets out priorities for
accelerating and scaling up innovation in active and healthy ageing across the
Union, in three domains: prevention and health promotion, care and cure, and
independent living and social inclusion.

(10)     The Active and Assisted
Living Research and Development Programme (hereinafter ‘the AAL Programme’) should
build on the achievements of the previous programme and address its
shortcomings by encouraging stronger user participation in projects and by a
more agile programme implementation.

(11)     A ceiling should be
established for the participation of the Union in the AAL Programme for the
duration of the Horizon 2020 Framework Programme. Union participation in the
AAL Programme should not exceed the financial contribution of the Participating
States for the duration of the Horizon 2020 Framework Programme in order to achieve
a high leverage effect and ensure an active involvement of the Participating
States in achieving the Programme objectives.

(12)     In line with the objectives
of Regulation (EU) No .../2013[H2020 FP], any Member State and any country
associated to the Horizon 2020 Framework Programme should be entitled to
participate in the AAL Programme.

(13)     In order to ensure that a
financial commitment by the Union will be matched by the Participating States,
the financial contribution by the Union should be subject to formal
commitments from the Participating States before the launch of the AAL
Programme and their fulfilment. The Participating States' contribution to the
AAL Programme should include the administrative costs incurred at national
level for the effective operation of the programme.

(14)     The joint implementation of
the AAL Programme requires an implementation structure. The Participating
States have agreed on the implementation structure for the AAL Programme and
set up in 2007 the Ambient Assisted Living Association IASBL, an international
non-profit organisation under Belgian law (hereinafter ‘AALA’). Given that,
according to the report on the Interim Evaluation, the existing governance
structure of AAL JP has proven to be efficient and of good quality, the AALA
should be used as implementation structure and should take the role as
allocation and monitoring body of the AAL Programme. The AALA should manage the
Union financial contribution and should ensure an efficient implementation of
the AAL Programme.

(15)     In order to achieve the
objectives of the AAL Programme, the AALA should provide financial support
mainly through grants to participants in actions selected by the AALA. Those
actions should be selected following calls for proposals under the
responsibility of the AALA, which should be assisted by independent external
experts. The ranking list should be binding as regards the selection of
proposals and the allocation of funding from the Union financial contribution
and from the national budgets for AAL Programme projects.

(16)     The Union financial
contribution should be managed in accordance with the principle of sound
financial management and with the rules on indirect management set out in
Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the
Council of 25 October 2012 on the financial rules applicable to the general
budget of the Union[13]
and Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the
rules of application of Regulation (EU, Euratom) No 966/2012[14].

(17)     In order to protect the
financial interests of the Union, the Commission should have the right to
reduce, withhold or terminate the Union financial contribution where the AAL
Programme is implemented inadequately, partially or late, or the Participating
States do not contribute, or contribute partially or late, to the financing of
the AAL Programme. Those rights should be provided for in the delegation
agreement to be concluded between the Union and the AALA.

(18)     Participation in indirect
actions funded by the AAL Programme is subject to Regulation (EU) No ... /2013 of
the European Parliament and of the Council of ... 2013 laying down the rules for
the participation and dissemination in 'Horizon 2020 - the Framework Programme
for Research and Innovation (2014-2020)'[15].
However, due to specific operating needs of the AAL Programme it is necessary
to provide for derogations from that Regulation in accordance with Article 1(3)
of that Regulation.

(19)     Specific derogations from Regulation (EU) No ... /2013 [H2020 RfP] are necessary as the AAL Programme is intended as a close to market innovation programme,
in which many different national funding streams are joined up (such as
research innovation, health and industry funding programmes). Those national programmes
have by their nature different participation rules and cannot be expected to
fully align with Regulation (EU) No ... /2013 [Horizon 2020 Rules for Participation]. In addition, the AAL
Programme is targeting in particular small and medium-sized enterprises and
user organisations not usually participating in Union research and innovation
activities. In order to facilitate the participation of those enterprises and
organisations, the Union financial contribution is provided in accordance with
the well-known rules of their national funding programmes and implemented
through a single grant combining Union funding with the corresponding national funding.

(20)     The financial interests of
the Union should be protected through proportionate measures throughout the
expenditure cycle, including the prevention, detection and investigation of
irregularities, the recovery of funds lost, wrongly paid or incorrectly used
and, where appropriate, administrative and financial penalties in accordance
with Regulation (EU, Euratom) No 966/2012, Delegated Regulation (EU) No
1268/2012, Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on
the protection of the European Communities financial interests[16], 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[17] and 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)[18].

(21)     The Commission should
conduct an interim evaluation assessing in particular the quality and
efficiency of the AAL Programme and progress towards the objectives set, as
well as a final evaluation, and prepare a report on those evaluations.

(22)     The evaluation should be
based on precise and up-to-date information. Upon request from the Commission,
the AALA and the Participating States should therefore submit any information
the Commission needs to include in the reports on the evaluation of the AAL
Programme.

(23)     The AAL Programme should
ensure the effective promotion of gender equality and comply with ethical
principles as reflected in the Horizon 2020 Framework Programme.

(24)     Since Participating States
have decided to continue the AAL Programme and its objectives directly support and
complement the Union policies in the field of active and healthy ageing and
given that the AAL Programme objectives cannot be sufficiently achieved by the
Member States alone and can, by reason of the scale of the action, be better
achieved at Union level, the Union may adopt measures, in accordance with the
principle of subsidiarity as set out in Article 5 of the Treaty on European
Union. In accordance with the principle of proportionality, as set out in that
Article, this Decision does not go beyond what is necessary in order to achieve
those objectives,

HAVE ADOPTED THIS DECISION:

Article 1

Participation
in the AAL Programme

1.           The Union shall
participate in the Active and Assisted Living Research and Development
Programme (hereinafter "AAL Programme") jointly undertaken by [Austria,
Belgium, Cyprus, Denmark, France, Hungary, Ireland, Luxembourg, the
Netherlands, Portugal, Romania, Poland, Slovenia, Spain, Sweden, United Kingdom
and Switzerland] (hereinafter "Participating States"), in accordance
with the conditions set out in this Decision.

2.           Any other Member State and
any other country associated to the Horizon 2020 - The Framework Programme for
Research and Innovation (2014-2020) established by Regulation (EU) No .../2013 (hereinafter
"Horizon 2020 Framework Programme") may join the AAL Programme
provided it fulfils the criterion set out in Article 3(1)(c) of this Decision.
Those Member States and associated countries that fulfil the condition set out
in Article 3(1)(c) shall be regarded as Participating States for the purposes
of this Decision.

Article 2

Union
financial contribution

1.           The maximum Union financial
contribution to the AAL Programme covering administrative costs and operational
costs shall be EUR 175.000.000. The contribution shall be paid from
appropriations in the general budget of the Union allocated to the relevant
parts of the Specific Programme implementing Horizon 2020 Framework Programme,
established by Decision ..../2013/EU in accordance with Article 58(1)(c)(vi) and
Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012.

2.           The annual financial commitment
of the Union to the AAL Programme shall not exceed the annual financial commitment
to the AAL Programme by Participating States.

3.           A maximum of 6 % of the
Union financial contribution shall be used to contribute to the administrative
costs of the AAL Programme.

Article 3

Conditions
for the Union financial contribution

1.           The Union financial
contribution shall be conditional upon the following:

(a)
proof by the Participating States that the AAL
Programme is set up in accordance with Annexes I and II;

(b)
the designation by the Participating States or by
organisations designated by the Participating States, of the Ambient Assisted
Living Association, a non-for-profit association with legal personality
established under Belgian law (hereinafter "AALA"), as the structure
responsible for the implementation of the AAL Programme and for allocating and
monitoring the Union financial contribution;

(c)
the commitment by each Participating State to
contribute to the financing of the AAL Programme;

(d)
proof by the AALA of its capacity to implement
the AAL Programme including allocating and monitoring the Union contribution in
the framework of indirect management of the Union budget in accordance with
Articles 58, 60 and 61 of Regulation (EU, Euratom) No 966/2012;

(e)
the establishment of a governance model for the
AAL Programme in accordance with Annex III.

2.           During the implementation
of the AAL Programme, the Union financial contribution shall also be
conditional upon the following:

(a)
the implementation by the AALA of AAL Programme objectives
as set out in Annex I and activities set out in Annex II in accordance with Regulation
(EU) No ... [Rules for the participation and dissemination in Horizon 2020],
subject to Article 5 of this Decision;

(b)
the maintenance of an appropriate and efficient
governance model in accordance with Annex III;

(c)
the compliance by the AALA with the reporting
requirements set out in Article 60 (5) of Regulation (EU, Euratom) No
966/2012;

(d)
the fulfilment of the commitments by each Participating
State referred to in point (c) of paragraph 1 and the fulfilment of the annual commitments
to contribute to the financing of the AAL Programme.

Article 4
Contributions from Participating States

1.           Contributions from the Participating
States shall consist of the following:

(a)
financial contributions to the indirect actions
supported under the AAL Programme in accordance with Annex II;

(b)
in-kind contributions corresponding to the
administrative costs incurred by the national administrations for the effective
implementation of the AAL Programme in accordance with Annex II.

Article 5

Rules
for participation and dissemination

1.           For the purposes of Regulation
(EU) No .../2013 [Rules for the participation and dissemination in Horizon 2020],
the AALA shall be considered a funding body and shall provide financial support
to indirect actions in accordance with Annex II to this Decision.

2.           By way of derogation from Article
14(5) of Regulation (EU) No .../2013 [Rules for the participation and
dissemination in Horizon 2020], the financial capacity of the applicants shall
be verified by the designated national programme management organisation according
to rules of participation in the designated national programmes.

3.           By way of derogation from Article
16(1) of Regulation (EU) No .../2013 [Rules for the participation and
dissemination in Horizon 2020], the grant agreements with participants shall be
signed by the designated national programme management agency..

4.           By way of derogation from Articles
19[((1), (5) to (7)] and 22 to 29 of Regulation (EU) No .../2013 [Rules for the
participation and dissemination in Horizon 2020], the funding rules of the
designated national programmes shall apply to the grants administered by the
designated national programme management agencies .

5.           By way of derogation from Articles
38 to 46 of Regulation (EU) No .../2013 [Rules for the participation and
dissemination in Horizon 2020], the rules of the designated national programmes
governing results, access rights to background and results shall apply.

Article 6
Implementation of the AAL Programme

1.           The AAL Programme shall be
implemented on the basis of annual work plans in accordance with Annex II.

Article 7

Agreements
between the Union and the AALA

1.           Subject to a positive ex-ante
assessment of the AALA in accordance with Article 61(1) of Regulation (EU,
Euratom) No 966/2012, the Commission, on behalf of the Union, shall conclude a
delegation agreement and annual transfer of funds agreements with the AALA.

2.           The delegation agreement
referred to in paragraph 1 shall be concluded in accordance with Article 58(3) and
Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012 and Article 40 of Delegated
Regulation (EU) No 1268/2012. It shall also set out the following:

(a)
the requirements concerning the AALA's
contribution regarding relevant indicators out of the performance indicators set
out in Annex II to Decision (EU) No .../2013 [the Specific Programme implementing
the Horizon 2020 Framework Programme];

(b)
the requirements concerning the AALA's
contribution to the monitoring referred to in Decision (EU) No .../2013 [the
Specific Programme implementing the Horizon 2020 Framework Programme];

(c)
the specific performance indicators necessary
for monitoring the functioning of the AALA in accordance with Article 3(2);

(d)
the arrangements regarding the provision of data
and information necessary to ensure that the Commission is able to meet its
dissemination and reporting obligations.

Article 8

Termination,
reduction or suspension of the Union financial contribution

1.           Where the AAL Programme is
not implemented in accordance with the conditions set out in Article 3, the Commission
may terminate, proportionally reduce or suspend the Union financial
contribution in line with the actual implementation of the AAL .

2.           Where the Participating States
do not contribute, contribute partially or late to the financing of the AAL
Programme, the Commission may terminate, proportionally reduce or suspend the
Union financial contribution, taking into account the amount of funding allocated
by the Participating States to implement the AAL Programme.

Article 9

Ex-post
audits

1.           Ex-post audits of
expenditure on indirect actions shall be carried out by the designated national
programme management agencies in accordance with Article 23 of Regulation (EU)
No ... [the Horizon 2020 Framework Programme].

2.           The Commission may decide
to carry out the audits referred to in paragraph 1 itself.

Article 10

Protection
of the financial interests of the Union

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, if irregularities are detected, by
the recovery of the amounts wrongly paid and, where appropriate, by effective,
proportionate and dissuasive administrative and financial penalties.

2.           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 of
25 May 1999 concerning investigations conducted by the European
Anti-Fraud Office (OLAF)[19]
and 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[20]
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 a grant agreement or grant decision or a contract funded in
accordance with this Decision.

3.           Contracts, grant agreements
and grant decisions, resulting from the implementation of this Decision shall
contain provisions expressly empowering the Commission, AALA, the Court of
Auditors and OLAF to conduct audits and investigations, according to their
respective competences.

4.           The AALA shall grant the
Commission staff and other persons authorized by the Commission, as well as by the
Court of Auditors, access to its sites and premises and to all the information,
including information in electronic format, needed in order to conduct the
audits referred to in paragraph 3.

5.           In implementing the AAL
Programme, the Participating States shall take the legislative, regulatory,
administrative or other measures necessary for protecting the Union’s financial
interest, in particular, to ensure the full recovery of any amounts due to the
Union in accordance with Regulation (EU, Euratom) No 966/2012 and Delegated
Regulation (EU) No 1268/2012.

Article 11

Communication
of information

1.           At the request of the
Commission, the AALA shall submit to the Commission any information necessary
for the preparation of the reports referred to in Article 12.

2.           The Participating States
shall submit, through the AALA, any information requested by the European
Parliament and the Council concerning the financial management of the AAL
Programme.

3.           The Commission shall
communicate the information referred to in paragraph 2 in the reports
set out in Article 12.

Article 12

Evaluation

1.           By 31 December 2017 the
Commission shall conduct an interim evaluation of the AAL Programme. The
Commission shall prepare a report on that evaluation which includes conclusions
of the evaluation and observations by the Commission. The Commission shall send
that report to the European Parliament and to the Council by 30 June 2018.

2.           At the end of Union
participation in the AAL Programme but no later than 31 December 2022, the
Commission shall conduct a final evaluation of the AAL Programme. The
Commission shall prepare a report on that evaluation which includes results of
the evaluation. The Commission shall send that report to the European
Parliament and to the Council.

Article 13

Entry
into force

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

Article 14

Addressees

This Decision is addressed to the Member
States.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

ANNEX I

Objectives of the AAL Programme

1.           The AAL Programme shall
fulfil the following objectives:

1.1.        accelerate the emergence of
innovative ICT-based products and services for active and healthy ageing at
home, in the community, or at work, thus improving the quality of life,
autonomy, participation in social life, skills or employability of older adults
and increasing the efficiency of health and social care provision;

1.2.        maintain and further
develop a critical mass of applied research, development and innovation at Union
level in the areas of ICT-based products and services for active and healthy ageing;

1.3.        develop cost-effective solutions,
including establishing relevant interoperability standards and facilitating the
localisation and adaptation of common solutions, which are compatible with
varying social preferences and regulatory aspects at national or regional level,
respect the privacy and dignity of the older adults and, where applicable, support
access to services in rural and peripheral areas or benefit other groups of
people, such as people with disabilities.

2.           The AAL Programme shall establish
a favourable environment for the participation of small and medium-sized
enterprises.

3.           The AAL Programme shall focus
on close-to-market applied research and innovation and shall complement related
longer-term research and large scale innovation activities envisaged under the
Horizon 2020 Framework Programme, and other European and national initiatives.
It shall also contribute to the implementation of the European Innovation
Partnership on Active and Healthy Ageing.

ANNEX II

ACTIVITIES of the AAL Programme

I. Indirect actions

1.           The implementation of the
AAL Programme shall mainly support market-oriented research and innovation
projects for active and healthy ageing, which shall demonstrate the capability
to exploit the project results within a realistic time frame; The financing of
those indirect actions under the AAL Programme shall mainly take the form of
grants. It may take other forms such as prizes, pre-commercial procurement, and
public procurement of innovative solutions.

2.           In addition, actions for
the purposes of brokerage, programme promotion, actions to raise awareness of
the current capabilities, foster deployment of innovative solutions and connect
supply and demand side organisations and investors may be supported.

3.           Actions aimed at improving
the quality of proposals, feasibility studies and workshops may also be supported.
The collaboration with the regions of the Union may be envisaged to enlarge the
group of stakeholders involved in the AAL Programme.

II. Implementation

1.           The AAL Programme shall be
implemented on the basis of annual work plans identifying topics for calls for proposals.

2.           The annual work plans
shall be agreed with the Commission as a basis for the annual financial
contribution from the Union.

3.           The implementation of the
AAL Programme shall entail consultations with relevant stakeholders (including decision-makers
from public authorities, user representatives, private-sector service providers
and insurance providers as well as industry including small and medium-sized
enterprises) concerning the applied research and innovation priorities to be
addressed.

4.           The implementation of the AAL
Programme shall take into account demographic trends and demographic research
in order to provide solutions that reflect the social and economic situation
across the Union.

5.           Due account shall be taken
of possible gender, ethical and privacy issues, in line with international
guidelines.

6.           In line with the close-to-market
nature of the AAL Programme and in compliance with the rules set out in
Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the
Council of 25 October 2012 on the financial rules applicable to the general
budget of the Union, the AALA shall establish appropriate minimum performance
targets for time to grant and time to payment in accordance with the [Rules for
Participation and][the Financial Regulation] and ensure compliance with them by
Participating States during the implementation of the AAL Programme.

7.           Each Participating State
shall facilitate the participation of organisations representing demand side
actors.

8.           Each Participating State
shall co-finance the selected projects of the participants in their relevant
national programmes through designated national programme management agencies. Those
agencies shall subsequently channel the Union funding from the AALA on the
basis of a common project description, which forms part of an agreement to be
concluded between the designated national programme management agencies and the
respective participants for each funded project.

9.           After the closure of a
call for project proposals, a central eligibility check shall be carried out by
the AALA in cooperation with the designated national programme management
agencies. The check shall be performed on the basis of the common eligibility
criteria for the AAL Programme which shall be published with the call for project
proposals

10.         The AALA shall, with the
assistance of the national programme management agencies, check the fulfilment of
additional national eligibility criteria set out in the calls for project proposals.

11.         The national eligibility
criteria shall relate only to the legal and financial status of the individual
applicants and not to the content of the proposal and shall concern the
following aspects:

11.1.      applicant type, including
legal status and purpose;

11.2.      liability and viability,
including financial soundness, fulfilment of fiscal and social obligations.

12.         Eligible project proposals
shall be evaluated and selected by the AALA with the assistance of independent
experts, on the basis of transparent and common evaluation criteria, as set out
in the published call for proposals. That selection, once adopted by the
General Assembly of the AALA, shall be binding on the Participating States.

13.         If a project participant
fails to meet one or more of the national eligibility criteria or if the
corresponding national budget for commitment for funding is exhausted, the
Executive Board of the AALA may decide that an additional central independent
evaluation of the proposal concerned should be carried out with the assistance
of independent experts, in order to evaluate the proposal either without the
participation of the participant in question or with a replacement participant,
as suggested project participants.

14.         Legal and financial issues concerning
participants in projects selected for funding shall be handled by the designated
national programme management agency. National administrative rules and principles
shall be applied.

ANNEX III

Governance of the AAL Programme

The organisational structure for the AAL
Programme shall be as follows:

1.           The AALA, an international
not-for-profit association established under Belgian law, shall constitute the
dedicated implementation structure created by the Participating States.

2.           The AALA shall be responsible
for all the activities of the AAL Programme. The AALA’s tasks shall include
contract and budget management, the development of the annual work plans,
organisation of the calls for proposals, handling of the evaluation and ranking
of proposals for funding.

3.           In addition, the AALA shall
supervise and be responsible for project monitoring and shall transfer the
associated payments of the Union contributions to designated national programme
management agencies. It shall also organise dissemination activities.

4.           The AALA shall be governed
by the General Assembly. The General Assembly shall be the decision-making body
of the AAL Programme. It shall appoint the members of the Executive Board and
supervise the implementation of the AAL Programme, including the approval of
annual work plans, allocation of national funding to projects and the handling
of applications for new membership. It shall work on the basis of a one-country
one-vote principle. Decisions shall be taken by simple majority, except for
decisions on the succession, admission or exclusion of members or the
dissolution of the Association, for which specific voting requirements may be
set out in the statutes of the Association.

5.           The Commission shall have
an observer status in the meetings of the AALA General Assembly and shall approve
the annual work plan. The Commission shall be invited to all the meetings of
the AALA and may take part in the discussions. All the relevant documents
circulated in connection with the AALA General Assembly shall be communicated
to the Commission.

6.           The AAL Executive Board —
consisting of at least a president, a vice-president and a treasurer — shall be
elected by the General Assembly to undertake the specific management
responsibilities such as budget planning, staffing and contracting. It shall legally
represent the Association and report to the General Assembly.

7.           The Central Management Unit
established as a part of the AALA shall be responsible for the central
management of the implementation of the AAL Programme in close coordination and
cooperation with the national programme management agencies, which shall be authorised
by the Participating States to undertake work associated with project
management and administrative and legal aspects for the national project participants
as well as to provide support for the evaluation and negotiation of project
proposals. The Central Management Unit and national programme management agencies
shall work together as the Management Unit under the supervision of the AALA.

8.           An Advisory Board with
representatives from industry, users and other stakeholders, seeking balance
between generations and gender, shall provide recommendations for priorities
and topics to be addressed in the calls for proposals and other actions of the
AAL Programme.

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.      Objectives

1.5.      Grounds
for the proposal/initiative

1.6.      Duration
and financial impact

1.7.      Management
mode(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
contributions

3.3.      Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.        Title of the
proposal/initiative

Participation of the Union in the Active and Assisted Living (AAL)
Research and Development Programme (hereinafter AAL Programme) jointly
undertaken by several Member States.

1.2.        Policy area(s) concerned
in the ABM/ABB structure[21]

Research and Technological Development: Horizon 2020 Framework
Programme.

Digital Agenda Action 78; Reinforcing the AAL Joint Programme

1.3.        Nature of the
proposal/initiative

 ̈ The proposal/initiative relates to a new action

 ̈ The proposal/initiative relates to a new action
following a pilot project/preparatory action[22]

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

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

1.4.        Objectives

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

Europe 2020

Innovation Union

Digital Agenda for Europe

European Research Area

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

The main operational objective of this legislative proposal,
namely the participation by the Union in a Joint R&D and Innovation Programme
undertaken between several Member States in the field of Active and Assisted
Living, has already been foreseen in the Horizon 2020 Framework Programme for
RTD and in its "Societal Challenges" Specific Programme.

The specific objectives associated with this operational objective
are:

(2)
Establish and operate the AAL Programme

(3)
Launch Programme supporting measures

(4)
Launch and co-finance collaborative research and
innovation projects with 2-3 year to market perspective

1.4.3.     Expected result(s) and impact

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

The AAL Programme will combine Union, National and private resources
to pursue innovative ICT solutions for allowing Europe's citizens to age
independently and well, while contributing to the overall sustainability of
their care and providing new economic opportunities for European industry.

The added value of the Union's involvement is substantial because:

The Union intervention will enable the creation of a new legal
framework where Union and National funding can be combined under a common
strategy to stimulate international collaborative R&D and innovation
projects, in particular involving SMEs. This would otherwise not be feasible
using the existing structures.

The AAL Programme will allow for addressing the demographic ageing
challenge by fostering the emergence of new innovative ICT-based products and
services for independent living of elderly people, thus increasing their
quality of life and autonomy and reducing the costs of their care. This will be
done in a coherent and non-fragmented way with higher critical mass and lead to
more cost-effective and interoperable solutions.

Industry and in particular SMEs will be supported more efficiently by
providing a critical mass and a coherent European approach for developing
interoperable solutions. In addition, it will be possible to adapt AAL
solutions to national/regional social preferences and regulations. This is an
important prerequisite for commercial exploitation and market development and
provides strong potential for SMEs involvement.

Finally, the proposed scheme will create incentives for increased
national and industrial investments in R&D and innovation in the field of
ICT and ageing, thus contributing to the objective of 3% of European GDP for
R&D.

The macro-economic added value for European economy and society that
will result from the exploitation of the results of the Ageing Well Programme
has not been addressed in this financial statement.

1.4.4.     Indicators of results and
impact

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

The indicators of results and impact set out in the Horizon 2020 –
Framework Programme for Research and Innovation specific objective are
monitored and annually reported by the dedicated management structure to the
Commission.

The following results are expected that will be measured through
related indicators:

Leveraging investments and national efforts; by providing incentives for investments following common
strategies and implementation.

Indicators: (i) number of countries participating; (ii) commitments
and payments by Participating States; (iii) national funding committed and
spent in projects of the Joint Programme; (iv) resources invested by industry
and other stakeholders through their participation and co-funding of projects.

Improving coherence of R&D and innovation in ICT for Ageing Well
across Europe; by removing the current
fragmentation of efforts by developing common strategies and joint calls for
proposals with critical mass.

Indicators: This result will be achieved de-facto when the Joint
Programme will become fully operational with a significant participation of
countries.

Programme Efficiency; by providing
certainty about availability of national budgets, having a central proposal
submission, evaluation and selection scheme and by providing a user-friendly
scheme for European collaborative applied and market oriented research and
innovation based on familiar national rules. This should result in a new and
more efficient support for relevant participants, in particular SMEs, thus
leading to higher industrial investments and shorter time to market and exploit
results.

Indicators: (v) time interval between
proposal submission and project launch; (vi) number of SMEs participating;
(vii) overhead costs for operating the Joint Programme.

Significant economic and social benefits and contribution to key policy
objectives; this will be measured as part of the
foreseen independent mid-term and final evaluation in addition to the other
indicators presented.

1.5.        Grounds for the
proposal/initiative

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

The AAL Programme will combine Union, National and private resources
to pursue innovative ICT solutions for allowing Europe's citizens to age
independently and well, while contributing to the overall sustainability of
their care and providing new economic opportunities for European industry.

1.5.2.     Added value of EU
involvement

The added value of the Union involvement is substantial because:

·
The Union intervention will enable the
continuation of the existing AAL Programme where Union and National funding can
be combined under a common strategy to stimulate international collaborative R&D
and innovation projects, in particular involving SMEs. This would otherwise not
be feasible using the existing structures.

·
The AAL Programme will allow for addressing the
demographic ageing challenge by fostering the emergence of new innovative
ICT-based products and services for independent living of elderly people, thus
increasing their quality of life and autonomy and reducing the costs of their
care. This will be done in a coherent and non-fragmented way with higher
critical mass and lead to more cost-effective and interoperable solutions.

·
Industry and in particular SMEs will be
supported more efficiently by providing a critical mass and a coherent European
approach for developing interoperable solutions. In addition, it will be
possible to adapt AAL solutions to national/regional social preferences and
regulations. This is an important prerequisite for commercial exploitation and
market development and provides strong potential for SMEs involvement.

·
Finally, the proposed scheme will create
incentives for increased national and industrial investments in R&D and
innovation in the field of ICT and ageing, thus contributing to the objective
of 3% of European GDP for R&D.

The macro-economic added value for European economy and society that
will result from the exploitation of the results of the AAL Programme has not
been addressed in this financial statement.

1.5.3.     Lessons learned from
similar experiences in the past

On the basis of the interim evaluation of the predecessor AAL JP
operated under FP7 the following lessons have been learned:

·
The AAL Programme should be continued as it
provides clear added value, in particular for SMEs, by creating the necessary critical
mass in research and innovation on ageing well at European level to help
relevant products and services enter the market;

·
It should focus on how regional innovation
actors (mostly SMEs) can understand and address the European market;

·
It should Improve the operational efficiency, in
particular regarding time to grant and payments;

·
It should improve the involvement from the early
stages of the project design of service providers and in particular end users
in call specification and evaluation.

These lessons have been taken into account to shape the AAL Programme2.

1.5.4.     Compatibility and possible synergy with other appropriate instruments

The first European Innovation Partnership on Active and Health
Ageing (EIP AHA)[23]
expects ICT solutions to play an important role in meeting its goals of 2
additional healthy life years by 2020 as well as improving quality of life for
citizens and improving efficiency of care systems in Europe. Its Strategic
Implementation Plan (SIP) sets out priorities for accelerating and scaling up
innovation in active and healthy ageing across Europe, in the three domains prevention
and health promotion, care and cure, and independent living and social
inclusion. The launch by the Council of the EIP AHA enhances the future
relevance of the AAL Programme and its follow up. The AAL Programme is a major
component for implementing the SIP, as it focuses on the "Valley of
Death" part of the innovation chain. The AAL Programme will also benefit
from the EIP, because the EIP will accelerate market creation, large scale
uptake and also contribute to improved boundary conditions for the market:
standardisation and interoperability for example, which are not covered by the
AAL Programme, but are mentioned in evaluation and consultations as barriers to
deployment.

AAL Programme is complemented by major national initiatives, such as
a national initiative on AAL and ageing in Germany, an Assisted Living
Innovation Platform in the UK and a Platform on Innovation in Ageing in France.

With these inter-related programmes that jointly cover a significant
part of the research and innovation ‘chain’, Europe has a globally unique
strength in ICT for ageing well. The AAL Programme complements well the
longer-term ICT and ageing research in the Horizon 2020 Programme and the ICT
based solutions it delivers can be fed into innovation and market validation activities
under the Horizon 2020 Programme.

The AAL Programme is also complementary to the "More Years,
Better Lives" Joint Programming Initiative (JPI)[24] on demographic change that brings
together 13 European Countries, to address new science based knowledge for
future policy making on ageing, based on a wide range of research disciplines.
The AAL Programme can provide an application context for the JPI’s
multi-disciplinary research and feed the JPI research agenda with user
experience, while sharing research methodologies such as the life course
approach.

In the Commission proposal for a Decision on the Strategic
Innovation Agenda of the European Institute of Innovation and Technology (EIT)
2014-2020, "Innovation for healthy living and active ageing" is one
of the priority themes for the EIT Knowledge and Innovation Communities (KICs)
wave in 2014-2015.

Taken together, these initiatives cover a large part of the chain
from fundamental research to market uptake, as recommended by a number of
independent assessments on EU research and innovation programmes, as well as EU
policy documents.

1.6.        Duration and financial impact

X Proposal/initiative of limited
duration

–
Proposal/initiative in effect from 01/01/2014 to
31/12/2023

–
Financial impact from 2014 to 2020 on commitment
appropriations and from 2014 to 2023 on payment appropriations.

 ̈ Proposal/initiative of unlimited
duration

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

–
followed by full-scale operation.

1.7.        Management mode(s)
envisaged[25]

 ̈ Centralised direct management by the Commission

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

–
 ̈  executive agencies

–
 ̈  bodies set up by the European Union[26]

–
X  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

A dedicated implementation structure entitled the Ambient Assisted
Living Association has been established and is governed by participating
countries for managing the initiative. The Union financial contribution to the
initiative will be provided through this organisation. National funding bodies
or their delegated agencies will manage the EU financial contribution and enter
into grant agreements with organisations to receive financial support for
collaborative research and innovation activities.

Relevant comments:

The financial contribution of the European Union will be paid to the
dedicated management entity established by ParticipatingStates which will
manage the Programme. The Union contribution will be provided subject to
approval of a work plan and associated national budgetary commitments.

The organisational structure for the AAL Programme is composed of
the following entities:

The AAL Association created as a dedicated management structure by ParticipatingStates
will sign a delegation agreement and annual transfer of funds agreements with
the European Commission to receive the annual funding from the Framework
Programme. It will be responsible for all the activities of the AAL Programme
and will be headed by a director, who will be the legal representative of the
Association.

The AAL Association will be responsible for all the activities of
the AAL Programme. The AAL Association's tasks include contract and budget
management, the development of the annual work programmes, organisation of the
calls for proposals, handling of the evaluation and ranking of projects. In
addition it supervises project monitoring and transfers the associated payments
of the European Union contributions to nominated national programme agencies.
It also organises dissemination activities.

The AAL Association is governed by the General Assembly. The General
Assembly is the decision taking body of AAL Programme and it appoints the
members of the Board of Directors and supervises the implementation of AAL
Programme, including approval of annual work plans, allocation of national
funding to projects and applications for new membership. It will work on the
basis of a one country one vote principle and will use simple majority for
decision making. The Commission will have an observer status in the meetings of
the General Assembly.

The AALA Board of Directors – consisting of a Director and two Vice-Directors
(alternatively one vice-director and one treasurer) - will be elected to
undertake the specific management responsibilities such as budget planning,
staffing and contracting. It legally represents the Association and reports to
the General Assembly.

National Programme Management Agencies are endorsed by the Participating
States to undertake work associated with project management and administrative and
legal aspects for the national project partners as well as to provide support
for the evaluation and negotiation of the proposals. They work under the
supervision of the AAL Association.

An Advisory Board with representatives from industry and other stakeholders
will provide recommendations for priorities and topics to be addressed in the calls
for proposals of the AAL Programme.

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting
rules

Specify frequency
and conditions.

In accordance with the Horizon 2020 – Framework Programme for
Research and Innovation, the implementation of the AAL Programme is annually
monitored and reported by the dedicated management structure to the Commission,
where applicable. The Programme will be monitored through annual reports which
will be provided by the dedicated management structure. These will give a
detailed overview on the implementation of the Programme according to the
indicators presented in Section 1.4.4.

A mid-term evaluation will be carried out after 3 years of operation
with assistance of independent experts and will assess: (1) the implementation
of the Programme towards further scientific, management and financial
integration; (2) the added value and effectiveness of the joint programme in
meeting its objectives. A final evaluation by external experts shall be
conducted by the end of the programme.

2.2.        Management and control
system

2.2.1.     Risk(s) identified

1) The key risks concern the capacity of the dedicated
implementation structure to manage the Unions budget contribution and the
effective monitoring of the national agencies involved in the day to day
operation of the programme

2) Another risk is the effective protection against fraud and
possible financial losses due to the high involvement of SMEs and the indirect
centralised management approach.

3) A third risk concerns the capacity of involved countries to
effectively finance their contributions to the programme.

2.2.2.     Control method(s) envisaged

Concerning risks 1 and 2, see chapter 2.3.

Concerning risk 3, then the safeguards which ensures that EU funds
only can be released upon evidence of national financial commitments both at
annual transfer of funds agreement level and at the level of payments towards
national participants in the joint programme projects, Another safeguard is
that EU funding cannot exceed 50% of the total public funding provided in the
programme and that EU support to administrative expenditures cannot exceed 6%
of the overall EU contribution.

2.2.3.     Costs and benefits of controls
and probable non-compliance rate

In accordance with Article 7 of the decision on the Programme, the
control system set up for the implementation of the Programme will be designed
so as to provide reasonable assurance of achieving adequate management of the
risks relating to the effectiveness and efficiency of the operations as well as
the legality and regularity of the underlying transactions, taking due account
the special nature of the AAL Programme as public-public partnership. The
control system shall ensure an appropriate balance between trust and control,
taking into account administrative and other costs of controls at all levels,
especially for participants so that it can best contribute to achieving the
objectives of the Horizon 2020 Framework Programme.

2.3.        Measures to prevent fraud
and irregularities

Specify existing or
envisaged prevention and protection measures.

Article 3 of the Decision establishing the AAL Programme states that
the Unions's contribution is conditional upon the compliance by the AAL
Association with the reporting requirements set out in Article 60(5) of
Regulation (EU, Euratom) No 966/2012. According to Article 8, the Commission
may terminate, reduce or suspend its contribution.

The delegation agreement to be concluded between the Commission and
the AALA in compliance with Article 61 of Regulation (EU, Euratom) No 966/2012,
will provide for the Commission to supervise the activities of the AALA, in
particular by carrying out audits.

Further anti-fraud measures will be implemented as part of the
detailed agreement between the Commission and the dedicated management
structure.

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

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

·
Existing budget lines

In order of
multiannual financial framework headings and budget lines.

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

Number 09 04 03 01 Improving lifelong health and wellbeing of all || Diff./non-diff. ([27]) || from EFTA countries[28] || from candidate countries[29] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

1A || || Diff./non-diff. || YES || YES || YES || YES

3.2.        Estimated impact on
expenditure

3.2.1.     Summary of estimated impact
on expenditure

EUR million (to three decimal places)

Heading of multiannual financial framework: || Number 1A || Heading ...........................................................................................]

DG: CNECT || || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || 2021 || 2022 || 2023 || TOTAL

Ÿ Operational appropriations || || || || || || || || || || ||

Number 09 04 03 01 || Commitments || (1) || 25 || 25 || 25 || 25 || 25 || 25 || 25 || || || || 175

Payments || (2) || 2,7 || 10 || 17,3 || 24,7 || 24,7 || 24,7 || 24,7 || 23,2 || 15,8 || 7,2 || 175

Number of budget line || Commitments || (1a) || || || || || || || || || || ||

Payments || (2a) || || || || || || || || || || ||

Appropriations of an administrative nature financed from the envelope of specific programmes[30] || || || || || || || || || || ||

Number of budget line || || (3) || || || || || || || || || || ||

TOTAL appropriations for DG CNECT || Commitments || =1+1a +3 || 25 || 25 || 25 || 25 || 25 || 25 || 25 || || || || 175

Payments || =2+2a +3 || 2,7 || 10 || 17,3 || 24,7 || 24,7 || 24,7 || 24,7 || 23,2 || 15,8 || 7,2 || 175

Ÿ TOTAL operational appropriations || Commitments || (4) || 25 || 25 || 25 || 25 || 25 || 25 || 25 || || || || 175

Payments || (5) || 2,7 || 10 || 17,3 || 24,7 || 24,7 || 24,7 || 24,7 || 23,2 || 15,8 || 7,2 || 175

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || 0,008 || 0,008 || 0,038 || 0,008 || 0,008 || 0,008 || 0,038 || || || || 0,116

TOTAL appropriations under HEADING 1A of the multiannual financial framework || Commitments || =4+ 6 || 25,008 || 25,008 || 25,038 || 25008 || 25,008 || 25,008 || 25,038 || || || || 175,116

Payments || =5+ 6 || 2,708 || 10,008 || 17,338 || 24,708 || 24,708 || 24,708 || 24,738 || 23,2 || 15,8 || 7,2 || 175,116

If more than one heading is affected by the proposal /
initiative:

Ÿ TOTAL operational appropriations || Commitments || (4) || || || || || || || || || || ||

Payments || (5) || || || || || || || || || || ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || || || || || || || || || || ||

TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || 25,008 || 25,008 || 25,038 || 25,008 || 25,008 || 25,008 || 25,038 || || || || 175,116

Payments || =5+ 6 || 2,708 || 10,008 || 17,338 || 24,708 || 24,708 || 24,708 || 24,738 || 23,2 || 15,8 || 7,2 || 175,116

Heading of multiannual financial framework || 5 || ‘Administrative expenditure’

EUR million (to three decimal places)

|| || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || 2021 || 2022 || 2023 || TOTAL

DG: CNECT || || || ||

Ÿ Human resources || 0,262 || 0,262 || 0,262 || 0,262 || 0,262 || 0,262 || 0,262 || || || || 1,834

Ÿ Other administrative expenditure || 0.024 || 0.024 || 0.024 || 0.024 || 0.024 || 0.024 || 0.024 || || || || 0.168

TOTAL DG CNECT || Appropriations || 0,286 || 0,286 || 0,286 || 0,286 || 0,286 || 0,286 || 0,286 || || || || 2.002

TOTAL appropriations for HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0,286 || 0,286 || 0,286 || 0,286 || 0,286 || 0,286 || 0,286 || || || || 2.002

EUR million (to three decimal places)

|| || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || || || || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 25,294 || 25,294 || 25,324 || 25,294 || 25,294 || 25,294 || 25,324 || || || || 177,118

Payments || 2,994 || 10,294 || 17,624 || 24,994 || 24,994 || 24,994 || 25,024 || 23,2 || 15,8 || 7,2 || 177,118

3.2.2.     Estimated impact on
operational appropriations

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

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

Commitment appropriations in EUR million (to three
decimal places)

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

OUTPUTS

Type[31] || Average cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Total Number || Total Cost

SPECIFIC OBJECTIVE No 1[32]... || || || || || || || || || || || || || || || ||

Output 1 || Establishment and operation of Joint Programme (*) || 1,5/ year || 1 || 1,5 || 1 || 1,5 || 1 || 1,5 || 1 || 1,5 || 1 || 1,5 || 1 || 1,5 || 1 || 1,5 || 7 || 10,5

Subtotal for specific objective n° 1 || 1 || 1,5 || 1 || 1,5 || 1 || 1,5 || 1 || 1,5 || 1 || 1,5 || 1 || 1,5 || 1 || 1,5 || 7 || 10,5

SPECIFIC OBJECTIVE n° 2... || || || || || || || || || || || || || || || ||

Output 2 || Supporting Action || 0,200 || 5 || 1 || 5 || 1 || 5 || 1 || 5 || 1 || 5 || 1 || 5 || 1 || 5 || 1 || 35 || 7

Subtotal for specific objective n° 2 || 5 || 1 || 5 || 1 || 5 || 1 || 5 || 1 || 5 || 1 || 5 || 1 || 5 || 1 || 35 || 7

SPECIFIC OBJECTIVE n° 3... || || || || || || || || || || || || || || || ||

Output 3 || Projects (*) || 2 || 25 || 23,5 || 25 || 23,5 || 25 || 23,5 || 25 || 23,5 || 25 || 23,5 || 25 || 23,5 || 25 || 23,5 || 175 || 164,5

Subtotal for specific objective n° 3 || 25 || 23,5 || 25 || 23,5 || 25 || 23,5 || 25 || 23,5 || 25 || 23,5 || 25 || 23,5 || 25 || 23,5 || 175 || 164,5

TOTAL COST || || 25 || || 25 || || 25 || || 25 || || 25 || || 25 || || 25 || || 175

(*)        The cost of central management
of the AAL Joint Programme will be supported with up to 6% of the EU
contribution and will include costs of proposal evaluation.

(**)      Assuming
an average total cost per project of 4 Million Euro, out of which 50 % will be
covered by public funding, to be shared between the EU and the Participating
States in accordance with the ratio between the respective annual commitments
(estimated ~40-50%).

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 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)

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || 2021 || 2022 || 2023 || TOTAL

HEADING 5 of the multiannual financial framework || || || || || || || || || || ||

Human resources || 0,262 || 0,262 || 0,262 || 0,262 || 0,262 || 0,262 || 0,262 || || || || 1,834

Other administrative expenditure || 0.180 || 0.180 || 0.180 || 0.180 || 0.180 || 0.180 || 0.180 || || || || 1.260

Subtotal HEADING 5 of the multiannual financial framework || 0,442 || 0,442 || 0,442 || 0,442 || 0,442 || 0,442 || 0,442 || || || || 3,094

Outside HEADING 5[33] of the multiannual financial framework || || || || || || || || || || ||

Human resources || || || || || || || || || || ||

Other expenditure of an administrative nature || 0,008 || 0,008 || 0,038 || 0,008 || 0,008 || 0,008 || 0,038 || || || || 0,116

Subtotal outside HEADING 5 of the multiannual financial framework || 0,008 || 0,008 || 0,038 || 0,008 || 0,008 || 0,008 || 0,038 || || || || 0,116

TOTAL || 0,450 || 0,450 || 0,480 || 0,450 || 0,450 || 0,450 || 0,480 || || || || 3,210

The administrative
appropriations required will be met by the appropriations of the DG which are
already assigned to management of the action and/or which 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.

3.2.3.2.  Estimated requirements of
human resources

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

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

Estimate to be expressed in full time
equivalent units

|| 2014 || 2015 || 2016 || 2017-2020 || Total

Ÿ Establishment plan posts (officials and temporary agents) ||

XX 01 01 01 (Headquarters and Commission’s Representation Offices) || 2 || 2 || 2 || 8 || 14

XX 01 01 02 (Delegations) || || || || ||

XX 01 05 01 (Indirect research) || || || || ||

10 01 05 01 (Direct research) || || || || ||

Ÿ External personnel (in Full Time Equivalent unit: FTE)[34] ||

XX 01 02 01 (CA, INT, SNE from the "global envelope") || || || || ||

XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || || || || ||

XX 01 04 yy[35] || - at headquarters || || || || ||

- in delegations || || || || ||

XX 01 05 02 (CA, SNE, INT - Indirect research) || || || || ||

10 01 05 02 (CA, SNE, INT - Direct research) || || || || ||

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

TOTAL || 2 || 2 || 2 || 8 || 14

XX is the policy area or budget title
concerned.

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:

Officials and temporary staff || The main tasks deriving from the action will be: -    Participation in meetings of the General Assembly of the AAL association as Commission observer 4 two day meetings/year (Director/HoU level) -    Participation in workshops and dissemination events 3 times per year (HoU level) -    Negotiation, Preparation and payment of grant contracts with the dedicated implementation structure (Project Officer level + B/C Assistant level) -    Monitoring of implementation + assistance to mid-term and ex-post evaluations (Project Officer level) -    Financial and legal auditing of the implementation of the Programme (Financial Officer level)

External staff ||

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.[36]

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

3.2.5.     Third-party contributions

–
The proposal/initiative provides for the estimated
minimum co-financing estimated below:

Appropriations in EUR million (to three decimal
places)

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || 2021 || 2022 || 2023 || Total

Participating States || 25 || 25 || 25 || 25 || 25 || 25 || 25 || || || || 175

TOTAL appropriations cofinanced || 25 || 25 || 25 || 25 || 25 || 25 || 25 || || || || 175

Co-financing details

A maximum European Union contribution of up to
25 Million euros per year shall be provided subject to an investment of at
least 25 Million euros per year by the Participating States, who will
contribute at least 175 Million euros between 2014-2020 from national budgets to
the AAL Programme.

The EU contribution to operational costs of the
AAL Programme will be at maximum 6% of the overall EC contribution to the AAL
Programme.

The EU contribution shall represent a fixed
percentage of the overall public funding from the participating national
programmes, but shall in any case not exceed 50 % of the public funding of the AAL
Programme. This fixed percentage shall be defined in the contract between the
dedicated management structure and the Commission and will be based on the
multi-annual commitment of the participating Partner States and the European Union
contribution.

Moreover, the organisations participating in
R&D projects selected through the Calls for Proposals launched by the
Programme will co-finance these projects. These contributions are expected to
amount to a minimum of about 300 Million euros for the duration of the
Programme.

3.3.        Estimated impact on revenue

–
X  Proposal/initiative has no financial impact
on revenue.

[1]               See http://ec.europa.eu/information_society/activities/einclusion/docs/aal/interim_evaluation_report.pdf

[2]               the amount is indicative
and will depend on the final LFS agreed by the Horizon 2020 and an amount for
DG Connect foreseen under societal challenges, theme health, demographic change
and well-being

[3]               OJ C ..., ..., p. ....

[4]               COM(2010)2020 final of 3 March 2010.

[5]               OJ ... [H2020 FP]

[6]               OJ L 201, 30.7.2008, p. 49.

[7]               OJ L 412, 30.12.2006, p. 1.

[8]               COM(2010) 763 final of 16 December 2010.

[9]               COM(2006) 571 final of 12 October 2006.

[10]             COM(2010) 546 final of 6 October 2012.

[11]             COM(2010) 245 final of 19 May 2010.

[12]             COM(2012) 83 final of 29 February 2012.

[13]             OJ L 298, 26.10.2012, p. 1.

[14]             OJ L 362, 31.12.2012, p. 1.

[15]             OJ L..., ..., p. ... [H2020 RfP].

[16]             OJ L 312, 23.12.1995, p. 1.

[17]             OJ L 292, 15.11.1996, p. 2.

[18]             OJ L 136, 31.5.1999, p. 1.

[19]             OJ L 136, 31.5.1999, p. 1.

[20]             OJ L 292, 15.11.1996, p. 2.

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

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

[23]             COM(2012) 83 final, 29 February 2012

[24]             COM(2008) 468, towards Joint Programming in research

[25]             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

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

[27]             Diff. = Differentiated appropriations / Non-Diff. = Non-differentiated
appropriations.

[28]             EFTA: European Free Trade Association.

[29]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

[30]             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.

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

[32]             As described in point 1.4.2. ‘Specific objective(s)...’

[33]             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.

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

[35]             Sub-ceiling
for external staff covered by
operational appropriations (former "BA" lines).

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