EUROPEAN COMMISSION Brussels, 23.2.2021 COM(2021) 89 final 2021/0049(COD) Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the participation of the Union in the European Partnership on Metrology jointly undertaken by several Member States {SEC(2021) 91 final} - {SWD(2021) 35 final} - {SWD(2021) 36 final}



EXPLANATORY MEMORANDUM 1.CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal Horizon Europe – the new framework programme for research and innovation (2021 – 2027) – aims to achieve a greater impact on research and innovation by leveraging additional private and public funds via co-investment through European Partnerships. These partnerships are envisaged in areas where the scope and scale of the resources in research and innovation are justified to support achieving the Unions’ priorities targeted by Horizon Europe, notably its pillar 2 – Global challenges and industrial competitiveness. Article 8 of Regulation (EU) [XXX] of the European Parliament and of the Council (the ‘Horizon Europe Regulation’) provides that Institutionalised European Partnerships based on Articles 185 and 187 of the Treaty on the Functioning of the European Union (TFEU) ‘shall be implemented only where other parts of the Horizon Europe programme, including other forms of European Partnerships would not achieve the objectives or would not generate the necessary expected impacts, and if justified by a long-term perspective and high degree of integration’. In the Horizon Europe Regulation, the co-legislators also identified eight priority areas for possible Institutionalised European Partnerships based on Article 185 or Article 187 TFEU. Consequently, a set of 12 initiatives were identified as candidates and were the subject of a coordinated impact assessment. Metrology was acknowledged by the co-legislators as one of these priority areas under the Horizon Europe Regulation, hence the present proposal for a European Metrology Partnership. It builds on the lessons learnt from the European metrology research programme (EMRP) and the European metrology programme on innovation and research (EMPIR). However, the present initiative represents a new partnership to meet new challenges. It is not intended as a mere continuation of previous programmes. The proposal relates to the participation of the European Union in the European metrology programme undertaken by several Member States. Metrology is the scientific study of measurement. It is a key enabler of economic and social activity and, as such, is a public good. Currently, metrology research programmes lack impact at EU level due to the fragmentation of activities and the duplication of effort across Member States. This is at a time when Europe faces increased global competition in metrology in terms of scale and focus of investment as well as long-term financial commitment to metrology objectives. In the last decade, the US, China and India increased their investments in metrology by 60%, 50% and 52% respectively. During this period, investments in European institutes remained relatively static and did not respond to new and increasingly important research fields. The inadequate level of investment in Europe, coupled with the fragmentation of metrology capabilities, has resulted in efforts being spread out too thinly, without any strategic focus. The previous programmes funded at EU level, EMRP and EMPIR, have demonstrated the capability of reducing this fragmentation, and also co-fund activities for new metrology capacities and joint priorities. In recent years, the investments outside the EU have continued. In the US, the National Institute of Standards and Technology (NIST), which is the country’s national metrology institute, had an overall annual budget of USD 724.5 million in 2018 and 2019. Noteworthy actions include a dedicated programme for exploratory measurement sciences (the ‘lab programme’) with an annual budget in excess of USD 60 million and a research programme for fundamental measurements, including quantum science that has an annual budget of more than USD 160 million. According to the latest information available, the National Institute of Metrology (NIM) in China had an operational budget of EUR 180 million in 2018. In addition, China implemented a targeted research programme for metrology between 2016-2019 of about EUR 65 million and funded 160 collaborative research projects across China. By comparison, PTB, the national metrology institute (NMI) in Germany and the largest in Europe, has a total operating annual budget of EUR 200 million, in which the majority is not targeting research, but metrology services for industry and society. Our global competitors are making these strategic investments because of the growing need for metrology solutions targeting emerging technologies and new product development. Moreover, the increase in societal challenges requiring trustworthy standards and regulations makes it urgent to address the lack of embedment of metrology in the innovation system at European level. To maintain Europe’s competitive leadership in emerging technologies and new product development and in ensuring a forward-looking approach to trustworthy standards and regulations that anticipate societal challenges, it is essential that the European Metrology Initiative ensures that by 2030 metrology solutions in Europe are at least equal to the top global performers, in demonstrating world class in providing metrology services for existing, complex measurement challenges and new technologies.. This should be achieved through specialised pan-European networks that pool resources to attain a critical mass of capabilities. These metrology solutions should support sales of new innovative products and services by adopting and using key emerging technologies. The solutions should also contribute to the effective design and implementation of specific standards and regulations that underpin public policies addressing societal challenges. Consistency with existing policy provisions in the policy area As metrology is an enabler of all scientific and technological fields, improvements in metrology capabilities can accelerate scientific advancement and industrial developments to help address challenges related, for example, to health, the environment, climate change, social protection and cultural heritage. Any future European metrology initiative for joint research and innovation would therefore need to create and exploit linkages with several other initiatives under Horizon Europe and beyond. In Horizon Europe, metrology is relevant for research and innovation activities funded under the programme’s digital, industry and space cluster, as the robust accurate measurements provided by metrology make a critical contribution across manufacturing sectors, particularly to high-precision manufacturing of high value-added products such as aerospace, high-performance ICT and space equipment and pharmaceuticals. However, the use of robust accurate measurements is much wider than this, and therefore the European metrology partnership is relevant to a wide range of other European research and innovation policy areas and initiatives, including public-private partnerships. It is for instance relevant for the operation of smart electrical grids. Metrology is also important to ensuring accurate measurements in health diagnostics and delivery. More generally, there are complementarities with the European Partnerships envisaged under Horizon Europe for: ·digital intensive industries, such as Made in Europe in relation to discrete manufacturing; ·the monitoring of CO2 emissions and air pollution in general under the partnerships Clean Energy Transition and Processes4Planet;

·Key digital technologies; Smart networks and services, Artificial intelligence, data and robotics; ·The achievement of zero-emission road transport (2Zero), Safe and automated road transport through connected driving, and Clean aviation partnership. ·Synergies should also be built with the Innovative Health initiative and the Partnership for large-scale innovation and transformation of health systems in a digital and ageing society. Due to its crosscutting nature, the future European metrology partnership should also help to implement future Horizon Europe missions. It should also develop links with the future European Open Science Cloud Partnership. Beyond Horizon Europe, complementarities will be built with other European programmes to support the deployment of metrology solutions such as with the Connecting Europe Facility, the Digital Europe programme, and the LIFE environmental programme. A new Steering Group will oversee the links and efficient communication between the Partnership on Metrology and the other relevant programmes. Consistency with other Union policies The European metrology initiative will contribute widely to other Union policies beyond research and innovation. As an enabler across sectors and across disciplines, metrology solutions touch on all six priorities pursued by the Commission, as illustrated in the table below. Table: Role of metrology in the priorities of the Commission Priority Illustrations of metrology’s role A European Green Deal Provides metrics for achieving climate neutrality An economy that works for people Innovative and more accurate measurement tools are integral to a successful plan to fight cancer A Europe fit for the digital age Central to setting standards for 5G networks and digital services Protecting our European way of life Essential to provide confidence in a fully functioning Schengen Area to reinforce the European approach to customs risk management A stronger Europe in the world Underpins Europe’s role as a standard setter, leading a strong, open and fair-trade agenda and a functioning emissions trading system A new push for European democracy Ensuring standards to protect Europe against covert external interference Metrology ensures that when measurements are taken, they are traceable to internationally agreed definitions and standards. This is the basis of national and international metrology systems that create the accurate, reliable and trustworthy measurements underpinning a wide range of economic activities and public services and covering the entire internal market in an economy that works for people. This concerns the safety of consumer products as well as financial services, where metrology enables each financial transaction to be accurately time-stamped to ensure traceable evidence of it and to ensure compliance with European financial regulations. To foster a Europe fit for the digital age, accurate state-of-the-art measurement capabilities in national metrology institutes and designated institutes will enable modern digital services but also all emerging digital technologies, such as quantum or artificial intelligence. Achieving climate neutrality by 2050 will require clear measurement capabilities in remote sensing (such as Earth observation), environment and energy. More specifically, the policy areas of the European Green Deal are all directly related to metrology challenges. Accurate and traceable measurement capabilities enable robust environmental monitoring of the state of the climate. They also support the effective design and enforcement of environmental regulations by providing trustworthy data for the climate variables that support the Paris Agreement on Climate Change and for environmental parameters such as air and water quality. Measurement science for energy will, for instance, be essential in helping make the transition to renewable energies. In a low carbon future, understanding the magnitude, timescale and impact of climate change will be central. This requires accurate and reliable monitoring of all climate variables over the long timescales needed to detect and understand climate trends. Furthermore, metrology should underpin fit-for-purpose environmental regulations, such as on water or air pollution, including monitoring and enforcement. Beyond energy and environment, policy areas of the Green Deal such as sustainable industry, sustainable mobility, and biodiversity will all need a modern and capable metrology system. 2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY Legal basis The proposal for a European metrology initiative is based on Article 185 TFEU, which concerns 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. Subsidiarity (for non-exclusive competence) The subsidiarity principle applies, as the proposal does not fall under the exclusive competence of the European Union. Subsidiarity is safeguarded by the proposal being based on Article 185 TFEU, which explicitly provides for the participation of the Union in research programmes undertaken by several Member States. The objectives of the proposal cannot be sufficiently achieved by the Member States alone, as the scale and complexity of metrology require investments that go beyond the core research budgets of the national metrology institutes. The excellence required for research and development of cutting-edge metrology solutions is spread across national borders and hence cannot be attained at national level only. Without a consistent approach at European level with critical mass, there is a high risk of a duplication of efforts, resulting in higher costs and less impact. EU-level support to date has demonstrated the scope for fostering significant levels of integration of metrology research efforts across Europe. To date, integration has been driven by bottom-up project level collaboration. Given its growing importance in facilitating emerging technologies and responding to societal challenges, a more strategic approach to the integration of metrology efforts is required to strengthen the directionality of research. Accordingly, the added value of action at EU level through the European metrology initiative will come from developing and implementing a more programmatic approach that targets metrology research in areas of emerging technological and societal importance.

Proportionality Article 185 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’. 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 – the European Association of National Metrology Institutes (EURAMET) - has already demonstrated in previous metrology initiatives at European level (EMRP and EMPIR) that it can implement the programme efficiently and effectively. The Union will provide incentives for improved coordination, ensure synergies with and contributions to EU policies and the priorities of Horizon 2020, monitor implementation of the programme and ensure protection of the EU’s financial interests. The ex ante impact assessment for the European metrology initiative concludes that Article 185 TFEU is the most suitable basis for achieving the objective. This is detailed in Section 6 of the impact assessment, where an initiative under Article 185 TFEU scores best in terms of effectiveness and coherence and is as cost-efficient as the baseline option of Horizon Europe calls for proposals. Accordingly, the impact assessment confirms in Sub-Section 6.4 that this form of partnership would provide a stable framework, ensuring the partners’ commitment to long-term objectives. It would also provide the basis for a strategic approach to the future development of metrology in Europe and would, in this regard, be sufficiently flexible to allow top-down guidance from a steering group and targeted implementation of the initiative through specialised networks. Moreover, the impact assessment determines that by facilitating a long-term strategic approach and targeted implementation, this form of partnership would attract increased commitment and participation from industry and other end-users, leading to the take-up of metrology solutions. This strategic approach and targeted implementation, together with increased participation of industry and other end-users, would lead the way to a metrology system with much stronger capabilities and a top performer at global level. Choice of the instrument The proposed European metrology initiative will be 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 European metrology initiative. This conclusion is in line with the conclusions drawn for the previous programmes (EMRP and EMPIR). For this kind of instrument under art. 185 TFEU, Article 188(2) TFEU requires that the European Parliament and the Council adopt a decision. 3.RESULTS OF EX POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS Ex post evaluations In 2017, an independent, external expert group conducted an interim evaluation of EMPIR, the metrology initiative under Article 185 TFEU. The evaluation confirmed that the EMPIR programme had made good progress in meeting most of the programme’s objectives and was expected to increase European turnover by making use of the developed technologies. The evaluation recommended a new partnership at European level based on three recommendations. First, the strategic component should be strengthened. The national metrology institutes should engage with other stakeholder communities to develop ‘metrology value chains’ that can support the single market. The evaluation did not advocate a centralised European structure to implement the recommendation. It favoured a bottom-up approach to metrology activities based on agreed European-level objectives. For these reasons, the evaluation recommended that pan-European ‘centres of excellence’ in the form of networks (‘European metrology networks’) should feature in a potential successor partnership in order to deepen metrology’s capacity to respond to major societal challenges. Second, the role of external stakeholders, such as universities and industry should no longer be limited to participation in projects selected after calls. Instead, they should in future be more involved in programme development and in having more opportunities to participate in projects. The third recommendation was for programme implementation to proactively address metrology applications in emerging scientific areas and focus more on tackling societal challenges. Stakeholder consultations The Commission carried out an open public stakeholder consultation on a future European initiative in metrology. 225 respondents responded to the online public consultation. Of these, 50% identified themselves as academics/researchers, 16% as EU citizens, 14% as company/business organisations and 12% as public authorities. The remaining 8% included business associations, non-governmental organisations, non-EU citizens and non-governmental organisations. The respondents provided their views on the relevance of metrology research, identified problems facing the European metrology research system and assessed several possible policy solutions. The consultation highlighted a number of issues, including insufficient industrial exploitation, lack of cooperation of national metrology institutes (NMIs) with the wider science base, capacity gaps between EU Member States, insufficient mobility of researchers within the NMIs and lack of engagement with European standardisation bodies. Collection and use of expertise In preparing the proposal for the European metrology initiative, the Commission engaged with a wide range of external expertise. The approach was to capitalise on analysis from an independent external study, complemented by meetings and interviews with key stakeholders, as well as written feedback.

In this regard, the Commission contracted an external study covering all candidate institutionalised partnerships, including metrology and drew extensively on its analysis and findings in preparing the metrology proposal. In parallel, the Commission held meetings and carried out interviews throughout 2019 with EURAMET e.V, and other metrology experts. The Commission also held a consultative workshop with Member State experts in November 2019. Subsequently, there was a written consultation of national ministries with responsibility for metrology in March 2020. Impact assessment The impact assessment report for the proposed metrology initiative was completed in June 2020 (SWD(2021) 36). On 15 July 2020 the Regulatory Scrutiny Board gave a positive opinion on the impact assessment report (SEC(2021) 91). In its opinion, RSB requested the following: (1) As part of the objective to develop transnational metrology networks, the report explains that at a certain point (by 2030), a partnership would no longer be necessary. The report should clarify why this is included in the impact assessment report and how it links with the current initiative, which covers the financing period up to 2027. If it is confirmed that a partnership would no longer be necessary, the report should bring out more clearly how the currently proposed partnership is expected to help establish the necessary conditions for its future discontinuation. (2) The report should explain better how private sector actors would be involved under the preferred ‘public-public’ partnership form. It should clarify the incentives for them to engage. (3) The report could usefully provide more background explanation on the national metrology research bodies and how they function. The impact assessment includes the following options: The baseline scenario was a situation without a partnership and with only traditional calls for proposals under Horizon Europe. That would result in closing the current implementation structure of Article 185 with the ending of ongoing EMPIR projects in 2023, which would lead to winding down and social discontinuation costs. Under option 1, a co-funded European Partnership would be established. Such a partnership would make it easier for NMIs to pool resources but would pose a great risk of turning into a ‘closed club’, discouraging academia from engaging. In option 2, an Institutionalised European Partnership (Article 185 TFEU) would be established. Such an initiative would build on the progress made under EMPIR, the existing Institutionalised European Partnership, by expanding the list of European metrology networks with additional ones with new focus areas. It would involve actors from across the wider metrology value chain, including national ministries, standardisation bodies, regulators, industry, end-users and consumers. The level of EU financing under Horizon Europe would increase compared to Horizon 2020 due to the resources needed to compensate for the increased scope. The impact assessment report concluded that option 2 is the preferred option. This is in line with the results of the public consultation, where 62% of the respondents were in favour of an Institutionalised Partnership as the preferred option for the new initiative in metrology. All four major sub-groups of respondents (academia, company/business, EU citizens and public authority representatives) agreed, and there was no minority group favouring a different option. The economic benefits of the proposed initiative have both a direct and indirect component. The direct component is the increased sales of instrumentation and linked services in industry. This is estimated at EUR 50 million a year. In addition, the objective of promoting innovation in strategic application areas indirectly has a further long-term leveraged impact on sales. The social and environmental benefits are directly related to the specialised metrology networks. The networks provide specific metrology solutions for all stakeholders along the metrology value chain, including industry, end-users and citizens. Simplification The proposal will simplify the administrative procedures for public authorities and bodies (EU or national) and for private parties. The EU will deal directly with the dedicated implementation structure of the European metrology initiative, which will be in charge of allocating, monitoring and reporting on the use of the EU’s contribution. Fundamental rights The proposed Decision has no consequences for the protection of fundamental rights.

4.BUDGETARY IMPLICATIONS The legislative financial statement presented with this decision sets out the indicative budgetary implications. The Union’s maximum financial contribution, including EFTA appropriations, to the metrology partnership will be EUR 300 million in current prices for the duration of the Horizon Europe framework programme. The provisions of the Decision and of the contribution agreement to be concluded between the Commission and the dedicated implementation structure (Euramet e.V.) must ensure that the EU’s financial interests are protected. 5.OTHER ELEMENTS Implementation plans and monitoring, evaluation and reporting arrangements Implementation of the initiative will be based on a strategic research and innovation agenda agreed with the national partners in the initiative. The initiative’s performance will be monitored through annual reports approved by the European Commission. This will include reporting progress with the key performance indicators and other measures set out in the strategic research and innovation agenda. The proposal includes a review clause for an interim evaluation not later than 2025 and a final evaluation not later than 2030. European Economic Area The proposed Decision concerns an EEA matter and should therefore include the European Economic Area. Nevertheless, to ensure complementarity with third countries their participation is foreseen through a corresponding provision. Detailed explanation of the specific provisions of the proposal Article 1 of the proposed Decision determines the current and possible future geographical scope for the European Partnership on Metrology. Article 2 underlines the link with the Horizon Europe Regulation and sets out the objective of such a partnership against this background. It also lays down the general and specific objectives that a future partnership should comply with and deliver on. Articles 3 and 4 prescribe the financial contribution that the European Union will make to EURAMET out of the EU budget. Articles 5, 6 and 7 set the obligations under which Member States and other participating countries can contribute to the future partnership. It clarifies that participating countries should not only match the EU contribution but also fund other relevant activities, such as future European metrology networks. Article 8 clarifies the rules of participation for which there may be a derogation to the Horizon Europe rules in duly justified cases; it also sets the minimum guarantees to ensure more openness of future calls, for instance not only national metrology institutes but also other stakeholders should be entitled to coordinate future projects under this partnership. Article 9 sets the framework for implementation agreements between the European Commission and EURAMET. Article 10 enables the European Commission to act if participating countries fail to comply with their commitments under this Decision. Articles 11 and 12 provide safeguards to protect the European Union’s financial interests. On the future governance of the partnership, Articles 13 to 17 set a new framework. While it is mainly for EURAMET to set up this partnership, the Commission proposes setting up an external Steering Group co-chaired by the Commission and a Member State representative; the Group should offer an impetus for the new partnership to be closer to users’ needs and strengthen its impact on industry, regulation and standard setting. The Group should also include representatives from other European partnerships with private partners. In the same way as for other institutional partnerships, Article 18 proposes an interim and final evaluation in line with the Better Regulation principles. Articles 19 to 21 are intended to ensure a smooth functioning of the future European Partnership. 2021/0049 (COD)

Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the participation of the Union in the European Partnership on Metrology jointly undertaken by several Member States 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 subparagraph 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, Acting in accordance with the ordinary legislative procedure, Whereas: (1)In order to achieve the greatest possible impact of Union funding and the most effective contribution to the Union's policy objectives, Regulation (EU) [XXX] of the European Parliament and of the Council established Horizon Europe, the framework programme for research and innovation, that is, the policy and legal framework for European Partnerships with private and/or public sector partners. European Partnerships are a key element of the policy approach of Horizon Europe. They are set up to deliver on Union priorities targeted by Horizon Europe and ensure clear impact for the Union and its people, which can be achieved more effectively in a partnership, through a strategic vision that is shared and committed to by partners, rather than by the Union alone. (2)In particular, European Partnerships in the Horizon Europe pillar ’Global challenges and European industrial competitiveness’ are expected to play an important role in achieving the strategic objectives of accelerating the transitions towards sustainable development goals and a green and digital Europe and in contributing to recovery. European Partnerships are key to address complex cross-border challenges that require an integrated approach. They make it possible to address the transformational, systematic and market failures by bringing together a broad range of players across the value chains and industrial ecosystems to work towards a common vision and translating it into concrete roadmaps and a coordinated implementation of activities. Furthermore, they allow concentrating efforts and resources on common priorities to solve the complex challenges ahead. (3)To deliver on priorities and impact, European Partnerships should be developed through a broad involvement of relevant stakeholders across Europe, including industry, research organisations, bodies with a public service mission at local, regional, national or international level, and civil society organisations such as foundations that support and/or carry out research and innovation. These European Partnerships should also be one of the measures to strengthen cooperation between private and/or public sector partners at the international level, including by joining up research and innovation programmes and cross-border investment in research and innovation, bringing mutual benefits to people and businesses. (4)In line with the objectives of Regulation (EU) XXX, any Member State and any country associated to Horizon Europe should be entitled to participate in the European Partnership on Metrology (‘the Metrology Partnership’). In order to ensure complementarity within the European Economic Area and with other neighbouring countries, other third countries should be able to participate in the Metrology Partnership, subject to the conclusion of a relevant international agreement for scientific and technological cooperation with the Union and the agreement of the Participating States. (5)Horizon Europe introduces a more strategic, coherent and impact-driven approach to European Partnerships, building on the lessons learned from the Horizon 2020 interim evaluation. Horizon Europe Regulation intends to make a more effective use of Institutionalised European Partnerships notably by focusing on clear objectives, outcomes and impact that can be achieved by 2030, and by ensuring a clear contribution to the related Union policy priorities and policies. Close collaboration and synergies with other relevant initiatives at Union, national and regional level, in particular with other European Partnerships, will be key in achieving greater impact and ensuring that the results are used. (6)By Decision No 555/2014/EU of the European Parliament and of the Council, the Union decided to make a financial contribution to the European metrology programme for innovation and research (‘EMPIR’) matching that of the participating states but not exceeding EUR 300 000 000, for the duration of the 2014-2020 framework programme for research and innovation (‘Horizon 2020’) established by Regulation (EU) No 1291/2013 of the European Parliament and of the Council. In the mid-term evaluation of EMPIR in July 2017, a new initiative was suggested. (7)The Union’s financial contribution should be subject to formal commitments from the Participating States to financially contribute to the implementation of the Metrology Partnership and to the fulfilment of those commitments. Participating States’ contributions should include a contribution to administrative costs, subject to a ceiling of 5% of the budget of the Metrology Partnership. Participating States should commit to increase, if necessary, their contribution to the Metrology Partnership by establishing a reserve funding capability to ensure that they are able to fund their national entities, national metrology institutes (NMIs) and designated institutes (DIs) participating in the activities of the Metrology Partnership. The joint implementation of the Metrology Partnership requires an implementation structure. The Union’s financial contribution should be managed in accordance with the principle of sound financial management and with the relevant rules on indirect management laid down in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council . (8)The Metrology Partnership should be established. Such a partnership would be more effective compared to traditional calls or a co-funded partnership under the work programmes prepared under all the related clusters of pillar 2 of Horizon Europe. (9)The objective of this Decision is the participation of the Union in the Metrology Partnership in order to support its general objectives. The requirements of metrology are of such a scale and complexity that investments are needed that go beyond the core research budgets of the NMIs and DIs. The excellence required for research and the development of cutting-edge metrology solutions is spread across national borders and hence cannot be attained at national level only. Since the objectives of this Decision cannot be sufficiently achieved by the Member States, but can be better achieved at Union level by integrating national efforts into a consistent European approach, by bringing together compartmentalised national research programmes, by helping design common research and funding strategies across national borders, and by achieving the critical mass of actors and investments required, 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 same Article, this Decision does not go beyond what is necessary in order to achieve that objective. (10)The Metrology Partnership, aligned with the political priorities of the Commission (including the European Green Deal, an economy that works for people, and a Europe fit for the digital age) should be implemented over a period of ten years (from 2021 to 2031). The programme should include new activities compared to the EMPIR initiative under Horizon 2020, and in particular, the development of European metrology networks, which will respond to pressing societal challenges and metrology needs from emerging technologies. The metrology capacity provided through these networks should be equivalent and comparable to the other world leading metrology systems, demonstrating world class excellence. Calls for proposals under the Metrology Partnership should be launched during the implementation of Horizon Europe.

(11)The Metrology Partnership’s activities should be in line with the objectives and research and innovation priorities of Horizon Europe and with the general principles and conditions laid down in Article XXX of Regulation (EU) [Horizon Europe Regulation]. (12)A ceiling should be established for the Union’s financial participation in the Metrology Partnership for the duration of Horizon Europe. Within the limits of that ceiling, the Union contribution should be up to equal to the contribution of the States participating in the Metrology Partnership in order to achieve a high leverage effect and ensure a stronger integration of Participating States’ programmes. (13)In accordance with Article XX of Regulation (EU) [XXX] [Horizon Europe Regulation], the general objective of Horizon Europe is to deliver scientific, economic and societal impact from the Union’s investments in research and innovation so as to strengthen the scientific and technological bases of the Union and foster its competitiveness, including in its industry, deliver on the Union strategic priorities, and contribute to tackling global challenges, including the Sustainable Development Goals by following the principles of Agenda 2030 for Sustainable Development and the Paris Agreement under the United Nations Framework Convention on Climate Change. (14)The Participating States have agreed upon the implementation structure for the predecessor initiatives the European metrology research programme (‘EMRP’) and EMPIR. In 2007, EURAMET e.V. (‘EURAMET’), the European Regional Metrology Organisation and a non-profit association under German law, was set up to serve as this structure. EURAMET also has tasks and obligations related to the wider European and global harmonisation of metrology. Membership in EURAMET is open to all European NMIs, as members, and to DIs, as associates. Membership in EURAMET is not conditional upon the existence of national metrology research programmes. Given that, according to the mid-term evaluation report of EMPIR, the governance structure of EURAMET has proved to be efficient and of high quality for the implementation of the EMRP and EMPIR, EURAMET should also be used to implement the Metrology Partnership. EURAMET should therefore manage the Union’s financial contribution. (15)In order to achieve the objectives of the Metrology Partnership, EURAMET should provide financial support mainly in the form of grants to participants in actions selected at the level of EURAMET. Those actions should be selected following calls for proposals under the responsibility of EURAMET. The ranking list should be binding for the selection of proposals and the allocation of funding from the Union’s financial contribution and from the financial contributions from Participating States for the research projects and related activities. For the activities funded by the Participating States’ contributions to European metrology networks, the actions funded should also be under the responsibility of EURAMET. (16)Participation in indirect actions funded by the Metrology Partnership is subject to Council Regulation (EU) No XXX [RfP Horizon Europe]. However, due to specific operating needs of the Metrology Partnership, in particular to build and manage future European Metrology Networks and to facilitate adequate financial participation of the Participating States, it should be possible to provide for a limitation of the coordinator role in a proposal to NMIs and DIs of the Participating States, where necessary. (17)Contributions from Participating States should be ensured through institutional funding from the NMIs and DIs. The wide variety of underlying activities should contribute to the objectives of the Metrology Partnership and be laid out in the annual work plans, with links to operational costs and expenditure. Among others, the contributions should cover the costs of services that directly deliver calibrations and other services traceable to the International System of Units. Contributions from Participating States should also include a financial contribution to the administrative costs of the Metrology Partnership. (18)In order to ensure transparency and accessibility for the programme, calls for proposals by the Metrology Partnership should also be published on the single portal for participants as well as through other Horizon Europe electronic means of dissemination managed by the Commission. (19)The functioning of the funding model with regard to the matching principle between Union and non-Union funds should be reassessed at the time of the interim evaluation of the Metrology Partnership in order to ensure the matching principle for Participating States’ financial contributions is being respected. (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. (21)In order to protect the Union's financial interests, the Commission should have the right to reduce, suspend or terminate the Union’s financial contribution if the Metrology Partnership is implemented inadequately, partially or late, or if the Participating States do not contribute, or contribute partially or late, to the financing of the Metrology Partnership. Those rights should be provided for in the contribution agreement to be concluded between the Union and EURAMET. (22)For the purpose of simplification, administrative burdens should be reduced for all parties. Double audits and disproportionate documentation and reporting should be avoided. When audits are conducted, the specific characteristics of the national programmes should be taken into account, as appropriate. Audits of recipients of Union funds provided in accordance with this Decision should ensure a reduction in the administrative burden, in accordance with Regulation (EU, Euratom) 2018/1046. (23)Upon request from the Commission the European Parliament, the Council or the Court of Auditors, EURAMET and the Participating States should submit any information the Commission needs to include in the reports on the evaluation of the Metrology Partnership. (24)The Commission should conduct an interim evaluation not later than 2025, assessing in particular the quality and efficiency of the Metrology Partnership, the progress made towards achieving the objectives set and a final evaluation not later than 2030 and should prepare a report on those evaluations, HAVE ADOPTED THIS DECISION: Article 1 Participation in the European Partnership on Metrology 1.The Union shall participate in the European Partnership on Metrology (‘the Metrology Partnership’), an institutionalised partnership as referred to in Article 8(1), point (c), of Regulation (EU) […] [Horizon Europe], jointly undertaken by Austria, Belgium, [Bosnia and Herzegovina], Bulgaria, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Lithuania, [Norway], Spain, the Netherlands, Poland, Portugal, Romania, [Serbia], Slovenia, Slovakia, Sweden [Switzerland and Turkey] (the ‘Participating States’), in accordance with the conditions laid down in this Decision. 2.Any Member State other than those specified in paragraph 1 and any other country associated to Horizon Europe may participate in the Metrology Partnership, provided it fulfils the condition laid down in Article 4(1), point (c). It shall be regarded as a Participating State for the purposes of this Decision. 3.Any third country not associated to Horizon Europe may participate in the Metrology Partnership, provided they conclude an international agreement for scientific and technological cooperation with the Union setting out the terms and conditions of its participation in the Metrology Partnership and provided they obtain the approval by the Metrology Partnership Committee referred to in Article 13(3), point (f). If it fulfils those conditions, it shall be regarded as a Participating State for the purposes of this Decision.

Article 2 Objectives of the Metrology Partnership 1.The Metrology Partnership shall contribute to the implementation of Regulation (EU) … [XXX][Horizon Europe] and in particular Article 3 thereof. 2.Without prejudice to paragraph 1, the Metrology Partnership shall, through the involvement and commitment of partners in designing and implementing a programme of research and innovation activities, pursue the following general objectives: (a)to develop a sustainable coordinated metrology system on a European level; (b)to ensure that state-of-the-art metrology capabilities are taken up directly by innovators in their ecosystems; (c)to increase the impact of metrology on societal challenges in relation to the implementation of policies, standards and regulations to make them fit for purpose. 3.When implementing the general objectives set out in paragraph 2, the Metrology Partnership shall pursue the following specific objectives: (a)to develop by 2030 new research capabilities which are built within the framework of new European Metrology Networks and which perform in terms of calibration and measurement capabilities at least equal to the leading metrology institutes outside the Participating States ; (b)to support, by 2030, sales of new innovative products and services through the use and adoption of the new metrology capabilities in key emerging technologies; (c)to contribute fully and effectively, by 2030, to the design and implementation of specific standards and regulations that underpin public policies addressing societal challenges. Article 3 The Union’s financial contribution to the Metrology Partnership 1.The Union’s financial contribution to the Metrology Partnership, including the European Free Trade Association appropriations and third country appropriations, shall not exceed the Participating States' contributions to the Metrology Partnership. The Union financial contribution shall be up to EUR 300 million to match the contributions of the Participating States specified in Article 1 (1). 2.For the calculation of the Union financial contribution, any contributions from the Participating States to administrative costs in excess of 5% of the total combined contributions to the Metrology Partnership shall not be taken into account. 3.The Union’s financial contribution shall be paid from the appropriations in the general budget of the Union allocated to the relevant parts of the specific programme implementing Horizon Europe, established by Decision [XXX] of the European Parliament and of the Council on establishing the specific programme implementing Horizon Europe – the Framework Programme for Research and Innovation. 4.The Union’s financial contribution shall be used by EURAMET e.V. (‘EURAMET’) to fund the activities referred to in Article 6(1), point (a). 5.The Union's financial contribution shall not be used to cover the administrative costs of the Metrology Partnership. Article 4 Conditions for the Union’s financial contribution

1.The Union’s financial contribution shall be conditional upon all of the following: (a)the demonstration by the Participating States that the Metrology Partnership is set up in accordance with this Decision; (b)the designation by the Participating States, or national metrology institutes (NMIs) designated by Participating States, of EURAMET as the structure responsible for implementing the Metrology Partnership and for receiving, allocating and monitoring the Union’s financial contribution; (c)the commitment by each Participating State to contribute to the financing of the Metrology Partnership and to establish a reserve funding capability of 50% of the amount of the commitment; (d)the demonstration by EURAMET of its capacity to implement the Metrology Partnership, including receiving, allocating and monitoring the Union’s financial contribution in the framework of indirect management of the Union budget in accordance with Articles 62 and 154 of Regulation (EU, Euratom) 2018/1046; (e)the establishment of a governance model for the Metrology Partnership in accordance with Articles 13 to 16 of this Decision. 2.During the implementation of the Metrology Partnership, the Union's financial contribution shall also be conditional upon the following: (a)the implementation by EURAMET of the Metrology Partnership's activities set out in Article 6 in line with the objectives set out in Article 2; (b)the maintenance of an appropriate and efficient governance model in accordance with Articles 13 to 16; (c)the compliance by EURAMET with the reporting requirements set out in Article 155 of Regulation (EU, Euratom) 2018/1046; (d)the fulfilment of the commitments referred to in paragraph 1, point (c), of this Article. Article 5 Participating States' contributions to the Metrology Partnership 1.The Participating States specified in Article 1(1) shall make contributions or arrange for their national funding bodies to make contributions, whether financial or in kind, of at least EUR 363 million during the period from 1 January 2021 until 31 December 2031. A share of the contributions from the Participating States shall be in the form of financial contributions. 2.The Participating States' contributions shall consist of the following: (a)financial or in-kind contributions to the implementing activities referred to in Article 6(1); and (b)financial or in-kind contributions to cover all the administrative costs of EURAMET. 3.The financial or in-kind contributions referred to in paragraph 2, point (a), shall cover the costs incurred by the Participating States in implementing the activities referred to in Article 6(1), point (b), less any direct or indirect Union financial contribution to those costs. 4.The financial or in-kind contributions referred to in paragraph 2, point (b), shall cover the costs incurred by the Participating States in relation to the administrative costs of EURAMET for the implementation of the Partnership. 5.For the purpose of valuing the in-kind contributions referred to in paragraph 2, points (a) and (b), the costs shall be determined in accordance with the usual accounting practices of the Participating States or the national funding bodies concerned, the applicable accounting standards of the Participating State where the national funding bodies concerned are established and the applicable International Accounting Standards and International Financial Reporting Standards. The costs shall be certified by an independent auditor appointed by the Participating States or the national funding bodies concerned. Should there be any uncertainty arising from the certification, the valuation method may be verified by EURAMET. In the event of remaining uncertainties, the valuation method may be audited by EURAMET.

6.Contributions referred to in paragraph 2, counting as contributions from Participating States, shall be made after the adoption of the annual work programme. If the annual work programme is adopted during the reference year referred to in Article 6(3), the contributions referred to in paragraph 2, point (b), counting as contributions from Participating States included in the annual work programme, may comprise contributions made as from 1 January of that year. Exceptionally, the contributions referred to in paragraph 2, point (b), made after the date of Metrology Partnership Decision entry into force may count as contributions from Participating States provided that they are included in the Metrology Partnership’s first annual work programme. Article 6 Activities of EURAMET 1.The Metrology Partnership shall support a wide range of research and innovation activities by means of: (a)indirect actions within the meaning of Article 2, point 25 of Regulation (EU) [XXX] [Horizon Europe Regulation] and that in accordance with Article 7 of this Decision are funded by EURAMET mainly in the form of grants following transnational open and competitive calls for proposals organised by EURAMET, and that include: –(i) scientific-technical actions supporting fundamental scientific metrology laying the basis for all successive steps, including applied metrology research and development and metrology-related services; –(ii) metrology research to provide solutions for societal challenges focusing on contributions to energy, health and climate and to develop projects in specific European metrology networks addressing these challenges; –(iii) research to develop novel measurement instrumentation aiming at industrial take-up of metrological technologies to stimulate innovation in industry; –(iv) pre-normative and co-normative metrology research and development in support of policy implementation, regulations and accelerate faster marketing of market introduction of innovative products and services; (b)activities funded by the Participating States without the Union’s financial contribution referred to in Article 3 which consist of metrology capacity-building activities on different technological levels whose aim is to achieve a balanced and integrated metrology system in the Participating States enabling them to develop their scientific and technical capabilities in metrology, and which include activities not selected from the calls for proposals described in point (a), and outlined in the annual work programmes, including any of the following: –(i) activities under the national programmes of the Participating States such as transnational projects contributing to the priorities laid out in a European metrology network and the EURAMET technical committees. –(ii) actions for the dissemination and exploitation of results of metrology research; –(iii) actions specifically addressing metrology institutes which have no or limited scientific capabilities, by supporting them in using other Union, national or regional programmes for training and mobility, cross-border cooperation or investment in metrology infrastructure; –(iv) the organisation of external dissemination and knowledge transfer activities to promote the Metrology Partnership and maximise its impact. 2.Before identifying the topics of each call for proposals referred to in paragraph 1, point (a), EURAMET shall invite individuals or organisations from the metrology research community and the general metrology value chain to suggest potential research topics. Article 7 Annual work programme 1.The Metrology Partnership shall be implemented on the basis of annual work programmes covering activities to be undertaken for the period from 1 January to 31 December of a given year (‘reference year’). 2.EURAMET shall adopt the annual work programmes by 31 March of the reference year, after obtaining approval from the Commission. In adopting the annual work programmes, both EURAMET and the Commission shall act without undue delay. EURAMET shall make the annual work programme publicly available. 3.Activities referred to in Article 6(1), points (a) and (b), may be launched only in the reference year and only after the adoption of the annual work programme for that year.

4.Activities may be funded by EURAMET only if they are set out in the annual work programme. The annual work programme shall distinguish between the activities referred to in Article 6(1), point (a), the activities referred to in Article 6(1), point (b), and the administrative costs of EURAMET. The annual work programme shall include their corresponding expenditure estimates and the budget being allocated to activities funded with the Union’s financial contribution referred to in Article 3 and to activities funded by the Participating States without such a Union’s financial contribution. The annual work programme shall also include the estimated value of the Participating States' in-kind contributions referred to in Article 5(2), point (b). 5.Amended annual work programmes for a reference year and annual work programmes for subsequent reference years shall take into account the results of previous calls for proposals. They shall endeavour to address insufficient coverage of scientific topics, in particular those initially addressed in activities under Article 6(1), point (b), that could not be adequately funded. 6.The calls for proposals under the relevant annual work programmes, shall be launched by 31 December 2027. In duly justified cases, they may be launched by 31 December 2028. 7.EURAMET shall monitor and report annually to the Commission on the implementation of all activities included in the annual work programme. 8.Any communication or publication relating to the activities of the Metrology Partnership and performed in cooperation with the Metrology Partnership, whether undertaken by EURAMET, a Participating State or its national funding bodies, or participants to an activity, shall be labelled or co-labelled as being co-funded by the Metrology Partnership under Horizon Europe. Article 8 Rules for participation and dissemination 1.EURAMET shall be considered a funding body within the meaning of Article 2, point 13 of Regulation [(EU) [XXX] [Horizon Europe Regulation] and shall provide financial support to indirect actions referred to in Article 6(1), point (a), of this Decision in accordance with Articles 6(2), of Regulation (EU) [XXX]. 2.In accordance with the Article 13 (1) of the HE Regulation, in duly justified cases, the annual work programme may provide for a limitation of the coordinator role in indirect actions to NMIs and DIs of the Participating States in order to ensure that the objectives and Participating States’ contribution targets are met. 3.EURAMET shall ensure appropriate interactions with NMIs and DIs in the indirect actions referred to in Article 6(1), point (a), according to the designation by the appropriate national authority. EURAMET shall also encourage and support the participation of other entities in all calls. Article 9 Agreements between the Union and EURAMET Provided an equivalent level of protection of the financial interest of the Union is ensured, EURAMET shall be entrusted with the implementation of the Union contribution in accordance with Article 62(3) and Article 154 of Regulation (EU, Euratom) 2018/1046. Article 10 Termination, reduction or suspension of the Union’s financial contribution 1.If the Metrology Partnership fails to meet the conditions under which the Union’s financial contribution is entrusted, the Commission may terminate, proportionally reduce or suspend the Union’s financial contribution referred to in Article 3. 2.If the Participating States do not contribute to the financing of the Metrology Partnership, contribute only partially or do not respect the time frames for the contributions referred to in Article 5, the Commission may terminate, proportionally reduce or suspend the Union’s financial contribution referred to in Article 3. The Commission’s decision shall not hinder the reimbursement of eligible costs already incurred by the Participating States before the decision to terminate, proportionally reduce or suspend the Union’s financial contribution is notified to the Metrology Partnership. Article 11 Ex post audits 1.The ex post audits of expenditure on indirect actions referred to in Article 6(1), point (a), shall be carried out by EURAMET in accordance with Article 48 of Regulation …[Horizon Europe](EU) [XXX] [].

2.The Commission may decide to carry out the audits referred to in paragraph 1 itself. In such cases, the Commission shall do so in accordance with the applicable rules, in particular Article 48(3) of Regulation (EU) [XXX] [Horizon Europe] and Article 127 of Regulation (EU, Euratom) 2018/1046. Article 12 Protection of the financial interests of the Union 1.The Commission shall take appropriate measures to ensure 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 penalties. 2.In implementing the Metrology Partnership, the Participating States shall take the legislative, regulatory, administrative and other measures necessary to protect the financial interests of the Union, in particular, to ensure full recovery of any amounts due to the Union in accordance with Regulation (EU, Euratom) 2018/1046. 3.EURAMET shall grant Commission staff and other persons authorised by the Commission, as well as 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 their audits. 4.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 (EU, Euratom) No 883/2013 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, a decision or a contract funded under this Decision. 5.The European Public Prosecutor’s Office (EPPO) may carry out investigations in accordance with the provisions and procedures laid down in Council Regulation (EU) 2017/1939, with a view to investigating criminal offences affecting the financial interests of the Union as set out in Article 4 of that Regulation. 6.Without prejudice to paragraphs 3, 4 and 5, agreements, decisions and contracts resulting from the implementation of this Decision shall contain provisions expressly empowering the Commission, EURAMET, the Court of Auditors, the EPPO and OLAF to conduct such audits, on-the-spot checks and investigations in accordance with their respective competences. Article 13 Governance of the Metrology Partnership 1.The bodies governing the Metrology Partnership shall include at least the following: (a)the Metrology Partnership Committee; (b)the Steering Group. (c)the Secretariat of EURAMET. Article 14 The Metrology Partnership Committee 1.The Metrology Partnership Committee shall manage the Metrology Partnership in order to ensure that the Metrology Partnership as executed meets its objectives. 2.The Metrology Partnership Committee shall be composed of representatives of EURAMET members from all the Participating States. The voting weights shall be calculated from the national commitments according to the square root of the commitment. 3.The Metrology Partnership Committee shall, in particular:

(a)take decisions on the strategic research and innovation agenda; (b)take decisions on the planning of calls for proposals and the evaluation review procedure; (c)adopt the annual work programme after obtaining the Commission’s approval and after consulting the Steering Group referred to in Article 15; (d)take decisions on the selection of the projects to be funded according to the ranking lists following the evaluations of the call of proposals referred to in Article 6(1) point (a); (e)monitor the progress of the funded projects; (f)approve the participation in the Metrology Partnership of any third country not associated to Horizon Europe, provided that third country has concluded an international agreement with the Union, referred to in Article 1(3). 4.The Commission shall have observer status in the meetings of the Metrology Partnership Committee. However, the adoption of the annual work programme by the Metrology Partnership Committee shall require the Commission’s prior consent. The Metrology Partnership Committee shall invite the Commission to its meetings and shall send the Commission all relevant documents. The Commission may take part in the Metrology Partnership Committee’s discussions. 5.The Metrology Partnership Committee shall elect its Chairperson and theirDeputy according to the voting weights explained in paragraph 2. The Chairperson of the Metrology Partnership Committee shall represent EURAMET in matters related to the Metrology Partnership. Article 15 The Steering Group 1.The Commission shall set up a Steering Group. The Steering Group shall be an advisory body of the Metrology Partnership and it shall give advice to the Metrology Partnership on the emerging priorities for metrology research at European level. It shall in particular: (a)identify emerging technologies and markets where metrology research could become relevant in the future; (b)identify research areas contributing to the smooth functioning of the single market, including to relevant regulations and standards; (c)advise the Metrology Partnership on priorities for their future work programmes. 2.The Steering Group shall be composed of 12 members: (a)4 representatives from European standard setters and regulators designated by EURAMET; (b)5 representatives from different European partnerships set up in accordance with Regulation [(EU) [XXX][Horizon Europe] with private partners representing the industry. The Commission shall designate the representatives in an open and transparent manner; (c)Chairperson of the EURAMET; (d)1 representative designated by the Commission, and 1 representative of a national ministry who is not a staff member of a national metrology institute represented in EURAMET. The ministry representative should beappointed by the Metrology Partnership Committee. 3.At least 50% of the members referred in paragraph 2, points (a) and (b), shall be rotated at the latest after the interim evaluation referred to in Article 18(1).

4.The Steering Group shall be jointly chaired by the representatives referred to in paragraph 2, point (d). Article 16 The Secretariat of EURAMET 1.The Secretariat of EURAMET, providing general administrative support for EURAMET, shall keep the bank accounts for the Metrology Partnership. 2.A Management support unit shall be established as part of the Secretariat of EURAMET and shall be responsible for the implementation and day-to-day management of the Metrology Partnership. Article 17 Communication of information 1.At the request of the Commission, EURAMET shall provide the Commission with any information necessary for preparing the evaluation reports referred to in Article 18. 2.The Participating States shall submit to the Commission, through EURAMET, any information requested by the European Parliament, by the Council or by the Court of Auditors concerning the financial management of the Metrology Partnership. 3.The Commission shall include the information referred to in paragraph 2 in the evaluations referred to in Article 18. Article 18 Evaluation 1.The Commission shall conduct an interim evaluation and a final evaluation of the Metrology Partnership in the framework of the Horizon Europe evaluations, as specified in Article 47 of Regulation (EU) …. [Horizon Europe]. 2.The evaluations shall examine how the Metrology Partnership fulfils its mission and objectives, cover all its activities and evaluate its European added value, effectiveness, efficiency, including its openness and transparency, the relevance of the activities pursued and their coherence and/or complementarity with relevant regional, national and Union policies, including synergies with other parts of Horizon Europe (such as missions, clusters or thematic/specific programmes). The evaluations shall take into account the views of stakeholders, at both European and national level and shall, where relevant, also include an assessment of the long-term scientific, societal, economic, technological impacts of the preceding initiatives. They shall include, where relevant, an assessment of the most effective policy intervention mode for any future action, as well as the relevance and coherence of any possible renewal of the Metrology Partnership, given the overall policy priorities and the research and innovation support landscape, including the positioning against other initiatives supported through the Horizon Europe framework programme. Article 19 Access to results and information on proposals 1.EURAMET shall provide the Commission access to all information related to the indirect actions it funds. Such information shall include results of beneficiaries participating in indirect actions of the Metrology Partnership or any other information deemed necessary for developing, implementing, monitoring and evaluating Union policies or programmes. Such access rights are limited to a non-commercial and non-competitive use and shall comply with applicable confidentiality rules. 2.For the purposes of developing, implementing, monitoring and evaluating Union policies or programmes, EURAMET shall provide the Commission with information included in submitted proposals. Article 20 Confidentiality

Without prejudice to Article 17, EURAMET shall ensure the protection of confidential information whose disclosure beyond Union institutions and other Union bodies, offices or agencies could damage the interests of its members or of participants in the activities of the Metrology Partnership. Such confidential information includes but is not limited to personal, commercial, sensitive non-classified and classified information. Article 21 Conflict of interest 1.EURAMET, its bodies and staff, and the bodies of the Metrology Partnership, shall avoid any conflict of interest in the implementation of their activities. 2.EURAMET shall adopt rules for the prevention, avoidance and management of conflicts of interest in respect of the staff of EURAMET, the members and other persons serving in the Metrology Partnership Committee and in the other bodies or groups of EURAMET and the Metrology Partnership, in accordance with Article 154(4), point (d) of the Regulation (EU, Euratom) 2018/1046. Article 22 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 23 Addressees This Decision is addressed to the Member States. Done at Brussels, For the European Parliament For the Council The President 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 mode(s) planned 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 Proposal for a Decision of the European Parliament and of the Council on the participation of the Union in the European Partnership on Metrology jointly undertaken by several Member States

1.2.Policy area(s) concerned (Programme cluster) Activity: Horizon Europe Cluster 4: Digital, industry and space 1.3.The proposal/initiative relates to: ☑ a new action ◻ a new action following a pilot project/preparatory action ◻ the extension of an existing action ◻ a merger or redirection of one or more actions towards another/a new action 1.4.Grounds for the proposal/initiative 1.4.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative The initiative’s main objectives can be divided up in a scientific, economic and societal objective. The scientific objective is to develop a sustainable coordinated world-class metrology system on a European level. The economic objective is to ensure that state-of-the-art metrology capabilities are taken up directly by innovators in their ecosystems. The societal objective is to increase the impact of metrology on societal challenges in relation to the implementation of policies, standards and regulations to make them fit for purpose. The initiative is expected to start operating in the second or third quarter of 2021 (depending on the adoption date of its basic act by the Council and the European Parliament). The main activity of the initiative is supporting collaborative research actions between metrology institutes and external metrology stakeholders. There will be an initial ramp-up phase in the call years of 2021 and 2022, in order to reach a stable call budget for the years 2023 – 2026. For the last call year in 2027 it is estimated to reduce the call budget to allow for a gradual phasing out. At the same time, the national funding is providing the funds to create European Metrology Networks in strategic technological and societal areas. The first Networks are being built up from the start of the initiative with the potential of new Networks being launched every year of implementation. By 2030, all the general and specific objectives will be achieved and subject to an ex-post evaluation. 1.4.2.Added value of Union involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this point 'added value of Union involvement' is the value resulting from Union intervention, which is additional to the value that would have been otherwise created by Member States alone. Reasons for action at European level (ex-ante): The problems addressed by the initiative are of a nature and magnitude that EU-level concerted action will be more appropriate than individual Member States developing their own initiatives. This will enable more coherent and coordinated efforts, and avoid duplication. The primary reason for the Union financial contribution to the intiative is the opportunity to fund trans-national research actions directly targeting joint strategic priorities for metrology. An Article 185 initiative also gives the legal, long-term certainty of institutional funding with commitments both from the Union as well as the institutional funding available at national level. Expected generated Union added value (ex-post):

The EU involvement allows for creating economies at scale and for consolidating the metrology research capacity. The EU involvement will also ensure leverage of the national resources to create an European metrology capacity fit for common societal challenges and technological transitions in line with the needs of the Single Market. These issues are addressed further in the Impact Assessment document attached to this proposal. 1.4.3.Lessons learned from similar experiences in the past By achieving a significant level of integration of national metrology efforts, EU action under the Seventh Framework Programme and Horizon 2020 has enabled Europe to establish global leadership in many fields of metrology. As metrology research grows in importance as an enabler of emerging technologies, other global regions are increasing significantly their metrology investments and targeting them strategically. EU action at this stage is needed, therefore, to maintain the momentum of integration so that it becomes embedded along the metrology value chain and so increases engagement of metrology stakeholders including regulators and standard setters, industry and societal end-users, as well as citizens. This is the key to achieving the long-term sustainability of integrated metrology research in Europe. It is critical that such EU action is maintained now in order to achieve sustainability. Otherwise, as the 2017 mid-term evaluation points out, metrology efforts in Europe risk becoming fragmented again, with capacity building in smaller National Metrology Institutes (NMIs) being stunted while larger NMIs conclude bilateral arrangements with their counterparts in other world regions, so undermining Europe’s technological sovereignty. 1.4.4.Compatibility and possible synergy with other appropriate instruments According to the Horizon Europe Regulation, all European Partnerships need to ensure coordination and/or joint activities with other relevant research and innovation initiatives to secure optimum level of interconnections and ensure effective synergies. Strong synergies should be established with the other European Partnerships that are closely related to measurement-intensive applications. In addition, the Article 185 instrument allows for seamless integration of national funding programmes which are aligned to national priorities for metrology. It will align in particular with other instruments under the European priorities “A Europe fit for the digital age”, “An Economy that works for people”, and “A European Green Deal”, and will be able to engage with all programmes and actions under the proposed Horizon Europe framework programme for research and innovation, including all clusters under Pillar 2 “Global Challenges and Industrial Competitiveness”. Monitoring of synergies and collaboration will be done through the Annual Activity Report. 1.5.Duration and financial impact ☑ limited duration –☑ in effect from [01/01]2021 to [31/12]2031 –☑ Financial impact from 2021 to 2027 for commitment appropriations and from 2022 to 2032 for payment appropriations. ◻ unlimited duration –Implementation with a start-up period from YYYY to YYYY, –followed by full-scale operation. 1.6.Management mode(s) planned ◻ Direct management by the Commission

–◻ by its departments, including by its staff in the Union delegations; –◻ by the executive agencies ◻ Shared management with the Member States ☑ Indirect management by entrusting budget implementation tasks to: –◻ third countries or the bodies they have designated; –◻ international organisations and their agencies (to be specified); –◻the EIB and the European Investment Fund; –◻ bodies referred to in Articles 70 and 71 of the Financial Regulation; –◻ public law bodies; –☑ bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees; –◻ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees; –◻ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act. –If more than one management mode is indicated, please provide details in the ‘Comments’ section. Comments EURAMET is an association (Eingetragener Verein, e.V.) under German law, and is entrusted by the Member States and other European countries to represent them as the Regional Metrology Organisation for Europe. The Union’s financial contribution to the initiative will be provided through this organisation. 2.MANAGEMENT MEASURES 2.1.Monitoring and reporting rules In line with Horizon Europe Regulation, the partnership shall adopt a monitoring system that is in line with the requirements set out in Article 45, Annex III and Annex V of Horizon Europe Regulation, and feed into the same single database as the other components of Horizon Europe. The reporting and monitoring system shall provide key management and implementation data (including microdata at the level of individual entities), allow to track progress according to the Key Impact Pathways (including the progress to deliver on EU priorities), and the partnership criteria. The partnership shall report on specific indicators (that are not covered by the Key Impact Pathways) allowing to track progress made in the short, medium and long term towards delivering on the vision and specific and operational objectives of the partnership as set out in the Regulation establishing the Partnership, including on the targets set by 2030. The indicators, data sources and methodologies shall allow for an assessment over time of achievements, progress towards impacts, including delivery on EU policy objectives, and the identification of potential needs for corrective measures. It should consider both qualitative and quantitative data, identify responsibilities for data collection, and set out concrete approaches to develop realistic baseline, targets and/or benchmarks to identify progress, where relevant, and in line with Horizon Europe impact approach. All the information collected shall be provided in close to real-time to Commission services based on common data models and fed into a single database as specified in Article 45 of the Horizon Europe Regulation. For that purpose, appropriate reporting systems shall be put in place to support a continuous and transparent reporting, including on committed and actually provided financial and in-kind contributions, visibility and positioning in the international context, impact on research and innovation-related risks of private sector investments. Reporting should be in line with the standard Horizon Europe reporting requirements. The development of the reporting systems in the context of the strategic coordinating process shall also involve Member States and partnership representatives in order to ensure synchronization and coordination of reporting and monitoring efforts, including on the division of data collection and reporting tasks. The reporting system at project level shall include detailed information on the projects funded, their results, their diffusion and use by key target groups, and the overall difference this is making for science, the economy, society and/or the environment, in line with the projects’ objectives and targeted impacts. This should be complemented by relevant data on the added value and impact of the partnership at European, national and regional level. Appropriate data sharing mechanism with common Horizon Europe monitoring and reporting databases needs to be ensured. By 31 December 2024, the Commission will conduct an interim evaluation of the initiative and will communicate the conclusions thereof, accompanied by its observations, to the European Parliament and to the Council by 30 June 2025. Within six months of the winding up of the initiative, but no later than two years after the decision to wind it up, the Commission will conduct a final evaluation of the initiative. The results of the final evaluation will be presented to the European Parliament and to the Council.

By 15 February of each year, EURAMET will present to the Commission, for approval, an annual activity report on the progress made by the Partnership in the previous calendar year, in particular in relation to the work plan for that year. The report will include information on the research performed, innovation and other actions and the corresponding expenditure; the proposals submitted, with a breakdown by participant type, and by country; the indirect actions selected for funding, with a breakdown by participant type, and by country, and indicating the contribution of the Union to the individual participants and actions. 2.2.Management and control system(s) 2.2.1.Justification of the management mode(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed Indirect management is justified because the European Partnership on Metrology is a public-public partnership with part of the funding brought in under form of in kind contributions by the Participating States. Each year, the decision on the contribution to the European Partnership on Metrology will be taken by virtue of the EU Budget adopted for that year. A Delegation Agreement signed between the European Commission and EURAMET will indicate that for the tasks to be carried out each year the Commission will pay a contribution upon conclusion of a Transfer of Funds agreement with EURAMET. The Delegation Agreement should be preceded by an ex-ante assessment of EURAMET to assess its internal control framework and financial management. The Commission will ensure that the rules applicable to the European Partnership on Metrology fully comply with the requirements of the Financial Regulation. Monitoring arrangements, including through the Union supervision into the governance of the Partnership, as well as reporting arrangements will ensure that the Commission services can meet the accountability requirements both to the College and to the Budgetary Authority. The internal control framework for EURAMET for the implementation of the European Partnership on Metrology is built on: • the implementation of the Internal Control Standards offering at least equivalent guarantees to those of the Commission; • procedures for selecting the best projects through independent evaluation, and for translating them into legal instruments; • project and contract management throughout the lifetime of every project; • ex-ante checks on 100% of claims, including receipt of audit certificates and ex-ante certification of cost methodologies; • ex-post audits on a sample of claims as part of the Horizon Europe ex-post audits; • scientific evaluation of project results 2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them (1) Capacity of the dedicated implementation structure EURAMET to manage the Union’s budget and to protect the EU’s financial interests. The control method will be in line with the requirements as laid out in the EU financial regulations, and in particular that the Commission retains the right to terminate, reduce or suspend its contribution if the implementation is not acceptable or appropriate. (2) Capacity of participating states to finance their contributions to the programme.

EU funds can only be released upon evidence of national financial commitments, both at annual financing agreement level and at the level of payments towards national participants in the projects. Another safeguard is that EU funding cannot exceed 50% of the total public funding provided in the programme and EU funding cannot cover administrative expenditure. 2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ value of the related funds managed"), and assessment of the expected levels of risk of error (at payment & at closure) As the rules for participation of Horizon Europe applicable to the Metrology Partnership are similar if not to those that the Commission will use in its Work Programme, and with a population of beneficiaries with a similar risk profile to those of the Commission, it can be expected that the error margin will be similar to that foreseen by the Commission for Horizon Europe, i.e. to give reasonable assurance that the risk of error over the course of the multiannual expenditure period is, on an annual basis, within a range of 2-5%, with the ultimate aim to achieve a residual error rate as close as possible to 2% at the closure of the multi-annual programmes, once the financial impact of all audits, correction and recovery measures have been taken into account. See the Legislative Financial Statement for Horizon Europe for full details of the error rate expected with respect to participants. 2.3.Measures to prevent fraud and irregularities Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy. The Commission will ensure that procedures to fight against fraud at all stages of the management process are applied by the European Partnership for Metrology. The proposals for Horizon Europe have been subject to fraud proofing and an assessment of their impact. Overall, the measures proposed should have a positive impact on the fight against fraud, especially the greater emphasis on risk-based audit and reinforced scientific evaluation and control. The Commission will ensure that appropriate measures are in place to guarantee that, when actions financed under this Regulation 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 deterrent penalties. While implementing the current Article 185 EMPIR initiative, EURAMET already cooperates with the Commission services in matters relating to fraud and irregularity. The Commission will ensure that this will continue and be strengthened. The Court of Auditors shall have the power of audit, on the basis of documents and on-the-spot, over all grant beneficiaries, contractors and subcontractors who have received Union funds under the Programme. The European Anti-Fraud Office (OLAF) may carry out on-the-spot checks and inspections on economic operators concerned directly or indirectly by such funding in accordance with the procedures laid down in 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 a grant agreement or grant decision or a contract concerning Union funding. 3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 3.1.Heading of the multiannual financial framework and new expenditure budget line(s) proposed Heading of multiannual financial framework Budget line Type of

expenditure Contribution Heading 1 Single Market, Innovation and Digital – Horizon Europe Diff./Non-diff. from EFTA countries from candidate countries from third countries within the meaning of Article [21(2)(b)] of the Financial Regulation 1 01 02 02 40 - Cluster Digital, Industry and Space 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 1 Heading Single Market, Innovation and Digital Horizon Europe

2021 2022 2023 2024 2025 2026 2027 Post 2027 TOTAL Operational appropriations (split according to the budget lines listed under 3.1) Commitments (1) 26.000 43.000 51.000 51.000 47.000 43.000 39.000 300.000 Payments (2) 0 11.700 31.050 44.900 50.200 49.200 45.600 67.350 300.000 Appropriations of an administrative nature financed from the envelope of the programme Commitments = Payments (3) 0.381 0.389 0.396 0.405 0.413 0.420 0.430 - 2.834 TOTAL appropriations for the envelope of the programme Commitments =1+3 26.381 43.389 51.396 51.405 47.413 43.420 39.430 302.834 Payments =2+3 0.381 12.089 31.446 45.305 50.613 49.620 46.030 67.350 302.834



Heading of multiannual financial

framework 7 ‘Administrative expenditure’ This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative Financial Statement , which is uploaded to DECIDE for interservice consultation purposes.



EUR million (to three decimal places) 2021 2022 2023 2024 2025 2026 2027 Post 2027 TOTAL Human resources - - - - - - - 0 Other administrative expenditure - - - - - - - 0 TOTAL appropriations under HEADING 7 of the multiannual financial framework (Total commitments = Total payments) - - - - - - - 0 EUR million (to three decimal places) 2021 2022 2023 2024 2025 2026 2027 Post 2027 TOTAL TOTAL appropriations

across HEADINGS

of the multiannual financial framework Commitments 26.381 43.389 51.396 51.405 47.413 43.420 39.430 302.834 Payments 0.381 12.089 31.446 45.305 50.613 49.620 46.030 67.350 302.834 3.2.2.Summary of estimated impact on appropriations of an administrative nature –☑ The proposal/initiative does not require the use of appropriations of an administrative nature –◻ The proposal/initiative requires the use of appropriations of an administrative nature, as explained below: EUR million (to three decimal places) Years 2021 2022 2023 2024 2025 2026 2027 TOTAL HEADING 7

of the multiannual financial framework Human resources Other administrative expenditure Subtotal HEADING 7

of the multiannual financial framework Outside HEADING 7

of the multiannual financial framework Human resources Other expenditure

of an administrative nature Subtotal

outside HEADING 7

of the multiannual financial framework

TOTAL 0 The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.



3.2.2.1.Estimated requirements of human resources –◻ The proposal/initiative does not require the use of human resources. –☑ The proposal/initiative requires the use of human resources, as explained below: Estimate to be expressed in full time equivalent units Years 2021 2022 2023 2024 2025 2026 2027 • Establishment plan posts (officials and temporary staff) Headquarters and Commission’s Representation Offices Delegations - - - - - - - Research 2.5 2.5 2.5 2.5 2.5 2.5 2.5 • External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED Heading 7 Financed from HEADING 7 of the multiannual financial framework - at Headquarters - - - - - - - - in Delegations - - - - - - - Financed from the envelope of the programme - at Headquarters - - - - - - - - in Delegations - - - - - - - Research - - - - - - - Other (specify) - - - - - - - TOTAL 2.5 2.5 2.5 2.5 2.5 2.5 2.5 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 For programme supervision and policy guidance (PO and LO) and evaluation/governance administrative tasks and responsibilities for the Commission. External staff n/a 3.2.3.Third-party contributions The proposal/initiative: –◻ does not provide for co-financing by third parties –☑ provides for the co-financing by third parties estimated below: Appropriations in EUR million (to three decimal places) Years 2021 2022 2023 2024 2025 2026 2027 TOTAL Participating States 31.000 52.000 62.000 62.000 57.000 52.000 47.000 363.000 TOTAL appropriations co-financed 31.000 52.000 62.000 62.000 57.000 52.000 47.000 363.000 3.3.Estimated impact on revenue –☑ The proposal/initiative has no financial impact on revenue.