EUROPEAN COMMISSION Brussels, 21.3.2018 COM(2018) 141 final 2018/0067(NLE) Proposal for a COUNCIL DECISION on the extension of the Agreement for scientific and technological cooperation between the European Union and the Government of the United States of America



EXPLANATORY MEMORANDUM 1.CONTEXT OF THE PROPOSAL •Reasons for and objectives of the proposal Since 1998 the European Union (EU) and the United States of America (US) have been strategic partners for research. A first bilateral 'Agreement for scientific and technological cooperation between the European Community and the Government of the United States of America' ('the Agreement') was signed in Washington, DC, on 5 December 1997 and entered into force on 14 October 1998. Since then, the Agreement was extended three times, i.e. in 2003, in 2008 and in 2013 for an additional period of 5 years each time. The second extension included an amendment, namely the addition of research on security and space to the list of sectors for cooperative activities (Article 4). Article 12 letter (b) of the Agreement stipulates that: "This Agreement is concluded for an initial period of five years. Subject to review by the Parties in the final year of each successive period, the Agreement may be extended with possible amendments, thereafter for additional periods of five years by mutual written agreement between the Parties". The current Agreement is due to expire on 14 October 2018. An assessment of how the cooperation with the US is evolving and how it contributes to the objectives of the strategy for international cooperation has been carried out by Commission service. This assessment clearly demonstrates that the Agreement provides an important framework for facilitating cooperation between the EU and the US in common Science & Technology (S&T) priority areas leading to mutual benefits. The main instrument for cooperation is the EU Framework Programme for Research and Innovation. The EU's relationship with the US in Science, Technology and Innovation (STI) is stronger than with any other country outside Europe. Among non-Associated third countries, the US is by far the most active country in Horizon 2020 so far. This is true for the amounts of mutual research and development (R&D) investment, flows of scientists, volumes of cooperative activities and the number of co-authored publications and patents. These STI links reflect the strength of our economic ties with the US. If the US and the EU can find ways to meaningfully develop joint efforts, the results will lead to economic growth and jobs, a higher quality of life and joint solutions for global challenges. Among many great achievements, cooperation between the EU and the US in science and technology led to the signature of the Galway Statement in May 2013 and the launch of the Atlantic Ocean Research Alliance (AORA). Ever since, cooperation in marine and arctic research continues to gather momentum and global international recognition. The various AORA working groups have delivered world class results on various cooperation areas, such as seabed mapping, observing systems, aquaculture, ocean literacy, ocean health and stressors. It is therefore in the EU's interest to extend the 'Agreement for scientific and technological cooperation between the European Community and the Government of the United States of America' for a new period of five years. At the EU-US Joint Consultative Group established by the Agreement, held in Washington on 23 October 2017, both Parties confirmed their intention to extend the Agreement and agreed to continue cooperation, building on the ongoing success of programs alignment. Both Parties recognized the role of research and innovation as key drivers of jobs and economic growth, and that transatlantic research cooperation has been a primary source of new technologies and scientific discoveries for over a century. The substance of the extended Agreement should be identical to that of the current Agreement, as discussed and agreed with the US counterparts. •Consistency with existing policy provisions in the policy area This initiative is fully in line with the EU’s international cooperation strategy for research & innovation, whereby the US is a strategic partner of the EU in research and innovation. The EU’s strategy clearly states the importance of science & technology agreements as vehicles for defining and implementing multiannual roadmaps for cooperation with non-EU countries. The Agreement is also a means of implementing the EU’s international cooperation strategy for research and innovation, which calls for more internationalisation and openness in the EU’s research & innovation landscape.

•Consistency with other Union policies The EU’s global strategy for the EU’s foreign and security policy confirms that research cooperation is an important aspect of EU foreign policy and sees research cooperation as an essential element of stronger socioeconomic ties. 2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY •Legal basis The EU’s power to act internationally in research and technological development is based on Article 186 TFEU. The procedural legal basis for the proposal is point (a)(v) of the second subparagraph of Article 218(6) TFEU. •Subsidiarity (for non-exclusive competence) The EU and its Members States have shared parallel competence in the area of research and technological development in accordance with Article 4(3) TFEU. Therefore EU's action cannot be replaced by action of Member States. 3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS •Regulatory fitness and simplification This initiative is not part of the REFIT agenda. 4.BUDGETARY IMPLICATIONS Only human and administrative resources are required; these are set out in the legislative financial statement. In the light of the above considerations, the Commission requests that the Council: - approves, on behalf of the Union, and with the consent of the European Parliament, the extension of the 'Agreement for scientific and technological cooperation between the European Union and the Government of the United States of America', for an additional period of five years (i.e., from 14.10.2018 until 13/10/2023) - authorises the President of the Council to designate the person(s) empowered to notify the Government of the United States of America that the Union has completed the internal procedures necessary for the entry into force of this renewed Agreement 2018/0067 (NLE) Proposal for a COUNCIL DECISION on the extension of the Agreement for scientific and technological cooperation between the European Union and the Government of the United States of America THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 186, in conjunction with point (a)(v) of the second subparagraph of Article 218(6) thereof, Having regard to the proposal from the European Commission, Having regard to the consent of the European Parliament, Whereas: (1)By Decision 98/591/EC, the Council approved the conclusion of the Agreement for scientific and technological cooperation between the European Community and the Government of the United States of America (the ‘Agreement’). The Agreement was signed in Washington, DC, on 5 December 1997 and entered into force on 14 October 1998. (2)In accordance with Article 12 of the Agreement, the Agreement is concluded for an initial period of five years. Subject to review by the Parties in the final year of each successive period, the Agreement may be extended, with possible amendments, thereafter for additional periods of five years by mutual written agreement between the Parties. (3)By Decisions 2004/756/EC, 2009/306/EC and 2014/240/EU the Council approved the extension of the Agreement for an additional period of five years each time. The current Agreement is due to expire on 14 October 2018. (4)The assessment carried out by Commission service demonstrates that the Agreement provides an important framework for facilitating cooperation between the Union and the United States of America in common Science & Technology priority areas leading to mutual benefits. It is therefore in the Unions interest to extend the Agreement for a new period of five years. (5)Both Parties confirmed their intention to extend the Agreement for an additional period of five years without any amendments to the Agreement. (6)The extension of the Agreement should be approved on behalf of the European Union, HAS ADOPTED THIS DECISION: Article 1 The extension of the Agreement for scientific and technological cooperation between the European Union and the Government of the United States of America, for an additional period of five years, is hereby approved on behalf of the Union. Article 2 The President of the Council shall designate the person(s) empowered to notify the Government of the United States of America, on behalf of the Union, that the Union has completed its internal procedures necessary for the extension of the Agreement in accordance with Article 12 of the Agreement. Article 3 This Decision shall enter into force on the date of its adoption. Done at Brussels, For the Council

The President LEGISLATIVE FINANCIAL STATEMENT 1.FRAMEWORK OF THE PROPOSAL/INITIATIVE 1.1.Title of the proposal/initiative 1.2.Policy area(s) concerned in the ABM/ABB structure 1.3.Nature of the proposal/initiative 1.4.Objective(s) 1.5.Grounds for the proposal/initiative 1.6.Duration and financial impact 1.7.Management 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 Council Decision on the extension of the Agreement for scientific and technological cooperation between the European Community and the Government of the United States of America 1.2.Policy area(s) concerned in the ABM/ABB structure Policy strategy and coordination of, in particular, the Directorates-General RTD, AGRI, CLIMA, JRC, EAC, ENER, GROW, CNECT, MARE and MOVE. 1.3.Nature of the proposal/initiative ◻ The proposal/initiative relates to a new action ◻ The proposal/initiative relates to a new action following a pilot project/preparatory action ☑ The proposal/initiative relates to the extension of an existing action ◻The proposal/initiative relates to an action redirected towards a new action 1.4.Objective(s) 1.4.1.The Commission's multiannual strategic objective(s) targeted by the proposal/initiative The present initiative will allow both Parties to improve and intensify their cooperation in scientific and technological areas of common interest. 1.4.2.Specific objective(s) and ABM/ABB activity(ies) concerned Specific objective No This decision will allow both Parties to enhance the cooperation and develop a more strategic partnership by increasing the scale and scope of existing cooperation, addressing global challenges by promoting reciprocal access to programmes and funding.

ABM/ABB activity(ies) concerned 1.4.3.Expected result(s) and impact Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. This decision will allow both the Union and the US to derive mutual benefit from the scientific and technical progress achieved through ongoing cooperation activities. It will allow for exchange of specific knowledge and transfer of know-how to the benefit of the scientific community, industry and citizens of both Parties. 1.4.4.Indicators of results and impact Specify the indicators for monitoring implementation of the proposal/initiative. The Commission will regularly monitor all actions carried out under the Agreement, including cooperation activities. This evaluation will cover, among others, the following points: (a) cooperation indicators — analysis of the number and type of participation of US entities in EU funded programmes (e.g. number of proposals, number of signed grant agreements, main collaboration links, main thematic; generated output) and vice-versa (whenever the data is available); (b) performance indicators — success rate of US entities participating in the EU framework programmes compared to other non-EU countries and to Member States/Associated countries to a Research Framework Programme; analysis of the quality of the participation (e.g. number of best ranked universities taking part on the programme, number of patents and publications coming from collaborative projects); (c) data collection regarding cooperation activities and links that go beyond the respective research funding programmes as well as assessment of the impact of these activities, like participation in multilateral initiatives and working groups. 1.5.Grounds for the proposal/initiative 1.5.1.Requirement(s) to be met in the short or long term This decision will allow the two Parties to continue to improve and intensify their cooperation in scientific and technological areas for mutual benefit. 1.5.2.Added value of EU involvement Cooperation in research & innovation between the US and the EU has been intensifying steadily in the past years. The involvement of the EU allows for activities with larger scale and scope for the benefit of all Member States. The extension of this Agreement will allow the EU to have easier access to scientific knowledge produced in the US and to engage in more cooperation activities leading to additional exchange of knowledge and technologies. 1.5.3.Lessons learned from similar experiences in the past Based on the experience so far in scientific and technological cooperation, it is considered mutually beneficial to continue research cooperation with US, as a strategic partner of the EU in research and innovation. 1.5.4.Compatibility and possible synergy with other appropriate instruments

The extension of the Agreement with the US is considered to be fully consistent with the overall policy framework on international cooperation in research and innovation (COM(2012)497). 1.6.Duration and financial impact ☑ Proposal/initiative of limited duration –☑ Proposal/initiative in effect from 14/10/2018 to 13/10/2023 –☑ Financial impact from 14/10/2018 to 13/10/2023 ◻ Proposal/initiative of unlimited duration –Implementation with a start-up period from YYYY to YYYY, –followed by full-scale operation. 1.7.Management mode(s) 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 208 and 209 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 2.MANAGEMENT MEASURES 2.1.Monitoring and reporting rules Specify frequency and conditions. Participation of US entities in the Framework Programme for Research and Innovation and other cooperative activities under the Agreement will be regularly followed through meetings of the Joint Consultative Group established under Art. 6 letter (b) of the Agreement. 2.2.Management and control system 2.2.1.Risk(s) identified Meetings and bilateral contacts take place on a regular basis allowing for the systematic sharing of information and control. No risks have been identified in the control system. 2.2.2.Information concerning the internal control system set up 2.2.3.Estimate of the costs and benefits of the controls and assessment of the expected level of risk of error 2.3.Measures to prevent fraud and irregularities Specify existing or envisaged prevention and protection measures. When the implementation of the Framework Programme calls for the use of external contractors or entails granting financial contribution to third parties, the Commission will carry out, where appropriate, financial audits, in particular if it has reason to doubt the realistic nature of work performed or described in the activity reports.

The Union’s financial audits will be carried out either by its own staff or by accounting experts approved according to the law of the audited party. The Union will choose the latter freely, while avoiding any risks of conflicts of interest which might be indicated to it by the party subject to the audit. In addition, the Commission will make sure, in carrying out the research activities, that the financial interests of the Union are protected by effective checks and, where irregularities are detected, by deterrent and proportionate measures and penalties. In order to achieve this aim, rules on checks, measures and penalties, with reference to Regulations No 2988/95, No 2185/96 and No 883/2013 will be incorporated in all contracts used in the implementation of the framework programme. In particular, the following points will have to be provided for in the contracts: - the insertion of specific clauses in the contracts to protect the financial interests of the EU in carrying out checks and controls in relation to the work performed; - the carrying out of administrative checks as part of anti-fraud measures, in accordance with Regulations No 2185/96, No 1073/1999 and No 1074/1999; - the application of administrative penalties for all intentional or negligent irregularities in the implementation of the contracts, in accordance with the Framework Regulation No 2988/95, including a blacklisting mechanism; - the fact that any recovery orders in the event of irregularities and fraud must be enforceable according to Article 299 of the Treaty on the Functioning of the European Union. In addition and as a routine measure, a programme of checks on scientific and budgetary aspects of cooperation will be carried out by the staff responsible in the Directorate – General for Research and Innovation (DG RTD). An internal audit will be carried out by the Internal Audit unit of DG RTD, and local inspections will be carried out by the European Court of Auditors. 3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected ·Existing budget lines In order of multiannual financial framework headings and budget lines. Heading of multiannual financial framework Budget line Type of

expenditure Contribution

Heading 1a – Competitiveness for growth and jobs Diff./Non-diff. from EFTA countries from candidate countries from third countries within the meaning of Article 21(2)(b) of the Financial Regulation 1a 08.01.05 Non-diff. YES YES NO NO ·New budget lines requested In order of multiannual financial framework headings and budget lines. Heading of multiannual financial framework Budget line Type of

expenditure Contribution Number

[Heading………………………………………] Diff./Non-diff. from EFTA countries from candidate countries from third countries within the meaning of Article 21(2)(b) of the Financial Regulation [XX.YY.YY.YY] YES/NO YES/NO YES/NO YES/NO 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 1a 'Competetiveness for growth and jobs'

DG: RTD Year

2018 Year

2019 Year

2020 Year

2021 Year

2022 Year

2023 TOTAL • Operational appropriations Number of budget line Commitments (1) Payments (2) Number of budget line Commitments (1a) Payments (2a) Appropriations of an administrative nature financed from the envelope of specific programmes Number of budget line 08.01.05 (3) TOTAL appropriations

for DG RTD Commitments =1+1a +3 0.024 0.060 0.060 0.060 0.060 0.036 0.298 Payments =2+2a +3 0.024 0.060 0.060 0.060 0.060 0.036 0.298









• TOTAL operational appropriations Commitments (4) Payments (5) • TOTAL appropriations of an administrative nature financed from the envelope for specific programmes (6) 0.024 0.060 0.060 0.060 0.060 0.036 0.298 TOTAL appropriations

under HEADING <1a>

of the multiannual financial framework Commitments =4+ 6 0.024 0.060 0.060 0.060 0.060 0.036 0.298 Payments =5+ 6 0.024 0.060 0.060 0.060 0.060 0.036 0.298 If more than one heading is affected by the proposal / initiative: • TOTAL operational appropriations Commitments (4) Payments (5) • TOTAL appropriations of an administrative nature financed from the envelope for specific programmes (6) TOTAL appropriations

under HEADINGS 1 to 4

of the multiannual financial framework

(Reference amount) Commitments =4+ 6 Payments =5+ 6







Heading of multiannual financial

framework 5 ‘Administrative expenditure’ EUR million (to three decimal places) Year

2018 Year

2019 Year

2020 Year

2021 Year 2022 Year 2023 TOTAL DG: RTD • Human resources • Other administrative expenditure 0.0048 0.012 0.012 0.012 0.012 0.0072 0.060 TOTAL DG RTD Appropriations 0.0048 0.012 0.012 0.012 0.012 0.0072 0.060 TOTAL appropriations

under HEADING 5

of the multiannual financial framework (Total commitments = Total payments) 0.0048 0.012 0.012 0.012 0.012 0.0072 0.060 EUR million (to three decimal places) Year

2018 Year

2019 Year

2020 Year

2021 Year

2022 Year

2023 TOTAL TOTAL appropriations

under HEADINGS 1 to 5

of the multiannual financial framework Commitments 0.0286 0.0715 0.0715 0.0715 0.0715 0.0429 0.358 Payments 0.0286 0.0715 0.0715 0.0715 0.0715 0.0429 0.358 3.2.2.Estimated impact on operational appropriations –☑ The proposal/initiative does not require the use of operational appropriations –◻ The proposal/initiative requires the use of operational appropriations, as explained below: Commitment appropriations in EUR million (to three decimal places) Indicate objectives and outputs ⇩ Year

N Year

N+1 Year

N+2 Year

N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) TOTAL OUTPUTS Type Average cost No Cost No Cost No Cost No Cost No Cost No Cost No Cost Total No Total cost SPECIFIC OBJECTIVE No 1… - Output - Output - Output Subtotal for specific objective No 1 SPECIFIC OBJECTIVE No 2 ... - Output Subtotal for specific objective No 2 TOTAL COST

3.2.3.Estimated impact on appropriations of an administrative nature 3.2.3.1.Summary –◻ The proposal/initiative does not require the use of appropriations of an administrative nature –☑ The proposal/initiative requires the use of appropriations of an administrative nature, as explained below: EUR million (to three decimal places) Year

2018 Year

2019 Year

2020 Year

2021 Year

2022 Year

2023 TOTAL HEADING 5

of the multiannual financial framework Human resources Other administrative expenditure 0.0048 0.012 0.012 0.012 0.012 0.0072 0.060 Subtotal HEADING 5

of the multiannual financial framework 0.0048 0.012 0.012 0.012 0.012 0.0072 0.060 Outside HEADING 5

of the multiannual financial framework Human resources 0.024 0.060 0.060 0.060 0.060 0.036 0.298 Other expenditure

of an administrative nature Subtotal

outside HEADING 5

of the multiannual financial framework 0.024 0.060 0.060 0.060 0.060 0.036 0.298 TOTAL 0.0286 0.0715 0.0715 0.0715 0.0715 0.0429 0.358 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. 3.2.3.2.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 Year

2018 Year

2019 Year 2020 Year 2021 Year 2022 Year 2023 • Establishment plan posts (officials and temporary staff) XX 01 01 01 (Headquarters and Commission’s Representation Offices) XX 01 01 02 (Delegations) 08 01 05 01 (Indirect research) 0.2 0.5 0.5 0.5 0.5 0.3 10 01 05 01 (Direct research) • External staff (in Full Time Equivalent unit: FTE) XX 01 02 01 (AC, END, INT from the ‘global envelope’) XX 01 02 02 (AC, AL, END, INT and JED in the delegations) XX 01 04 yy - at Headquarters - in Delegations XX 01 05 02 (AC, END, INT – Indirect research) 10 01 05 02 (AC, END, INT – Direct research) Other budget lines (specify) TOTAL 0.2 0.5 0.5 0.5 0.5 0.3 XX is the policy area or budget title concerned. The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

Description of tasks to be carried out: Officials and temporary staff Preparation and management of meetings of the Joint Consultative Group established under Art. 6(b) of the Agreement, as well as follow –up of the functioning and implementation of the Agreement. Calculations are done proportionally considering the duration of the Agreement. External staff 3.2.4.Compatibility with the current multiannual financial framework –☑ The proposal/initiative is compatible the current multiannual financial framework. –◻ The proposal/initiative will entail reprogramming of the relevant heading in the multiannual financial framework. Explain what reprogramming is required, specifying the budget lines concerned and the corresponding amounts. –◻ The proposal/initiative requires application of the flexibility instrument or revision of the multiannual financial framework. Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts. 3.2.5.Third-party contributions –☑ The proposal/initiative does not provide for co-financing by third parties. –The proposal/initiative provides for the co-financing estimated below: Appropriations in EUR million (to three decimal places) Year

N Year

N+1 Year

N+2 Year

N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) Total Specify the co-financing body TOTAL appropriations co-financed



3.3.Estimated impact on revenue –☑ The proposal/initiative has no financial impact on revenue. –◻ The proposal/initiative has the following financial impact: –◻ on own resources –◻ on miscellaneous revenue EUR million (to three decimal places)