Third countries may contribute to the Programme through association agreements. The conditions determining the level of financial contribution will be laid down in association agreements with each country and shall ensure an automatic correction of any significant imbalance compared to the amount that entities established in the associated country receive through participation in the programme, taking into account the costs in managing the programme.

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

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

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

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.

The total number of external personnel will assist officials and temporary agents to contribute to the objectives of Horizon Europe during all the process, from the preparation of the Work Programme to the final dissemination of results during 2021-2027.

The total number of officials and temporary agents will be used to contribute to the objectives of Horizon Europe during all the process, from the preparation of the Work Programme to the final dissemination of results during 2021-2027.

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

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

The administrative appropriations required will be met by the appropriations which are already assigned to management of the action and/or which have been redeployed, 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 existing budgetary constraints.

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

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

Appropriations of an administrative nature financed from the envelope of the programme

within the meaning of Article [21(2)(b)] of the Financial Regulation

The legislation will ensure that audits and on-the-spot checks can be carried out by the Commission services, including OLAF, using the standard provisions recommended by OLAF.

It should be underlined that detected fraud has been very low in proportion to total expenditure, nevertheless the Directorates General charged with the implementation of the research budget remain committed to combat it.

The current Anti-Fraud Strategy of the Commission services responsible for the implementation of the previous Framework Programmes, covering grants, as well as the anti-fraud strategies relating to other expenditure, will be updated after the revision of the Commission's Anti-Fraud Strategy in 2018. This will also cover risks related to lump sum funding, which has different risks that need to be taken into account.

The services charged with the implementation of the research and innovation budget are determined to fight against fraud at all stages of the grant management process. They have developed, and are implementing, anti-fraud strategies, including an enhanced use of intelligence, especially using advanced IT tools, and training and information for staff. These efforts will continue. 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.

Note: this section only concerns the process of grant management (in the different management modes), for administrative and operational expenditure implemented through public procurement processes the risk of error at payment and closure should be below 2 %.

This scenario is based on the assumption that the measures of simplification are not subject to substantial modifications in the decision making process.

The overall expectation for error rates will depend on the balance between the two methods of funding (reimbursement of eligible costs and lump sums). The Commission aims to apply the lump sum funding model where appropriate. However, the main driver to adopt lump sum funding will not be reduction of the error rate, but the achievement of all the objectives of the programme.

The expected risk of error for grants with a funding model based on lump sum funding is close to 0 % (at payment and at closure).

The expected risk of error at payment for grants with a funding model based on the reimbursement of ineligible costs is 2.5-3.5 %. The risk of error at closure (after the effect of controls and corrections) is around (but not necessarily below) 2 %.

The narrower estimate of the costs of the control system (evaluation, selection, project management, ex-ante and ex-post control) are in the range of 3-4 % across the Commission services responsible for the implementation of the previous Framework Programmes for 2017 (including costs for the management of the Seventh Framework Programme and Horizon 2020). This is considered to be a reasonable cost in the light of the efforts needed to ensure that objectives are achieved and the number of transactions.

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)

The number of transactions involved means that a high level of systematic ex-ante control would be very expensive. The current control strategy therefore relies on risk-based ex ante controls and ex-post controls to assess the level of error and to detect and recover ineligible amounts. As the error rates have remained within the range established this control strategy is considered to be effective. Further development of some aspects is included, for example the inclusion of systems and processes audit, but radical change is not proposed.

The Horizon Europe proposal allows the Commission to use the lump sum funding model and the Commission intends to use this funding model more widely. However, it is too early to say how widely it can be used. This will depend on the results of the pilots currently under way.

The pilot scheme has to be evaluated, especially to see if it achieves all the objectives of the Programme (not just lowering the error rate). But, clearly, wider use of flat rate funding would reduce the error rate. However, it would move the risks to other stages of the internal control system – evaluation will become more important, as will the assessment of the deliverable.

Lump sum funding was proposed for Horizon 2020 but was considered to be unsuitable or premature. Nevertheless, the Commission is, in the Work Programme 2018, implementing pilot schemes based on lump sum funding. At the same time it has undertaken a number of communication actions to allay the concerns of stakeholders about this form of funding.

Horizon 2020 saw the introduction of lump sum funding for the SME stage 1 scheme (a payment of EUR 50 000 on delivery of a satisfactory scientific deliverable) and, by EIT KICs, for the funding of institutional costs related to delivery of EIT Labelled masters programmes. No additional justification for these payments, such as invoices, timesheets, proofs of payment, etc, is required. There are no financial errors.

The wider use of SCOs such as flat rates and unit costs, as well as continuing simplification of the rules, will assist in lowering the Horizon 2020 error rate, estimated at 3-4 % on a representative basis in Horizon Europe. However, the underlying problem of errors in a funding method based on the reimbursement of eligible costs remains. In such a system the representative error rate might be reduced to 2.5-3.5 %, with the residual error rate, after corrections, expected to be around (but not necessarily below) 2 %.

The errors identified during audits of Horizon 2020 show that some could be avoided by simplifications and the avoidance of unnecessary formalism in rules. Some changes have already been made in Horizon 2020 (new rules for internal invoicing and additional remuneration for example), and others will be be made where possible in Horizon Europe. However, such changes will now be limited in their effect on the error rate, generally only avoiding small errors.

-Around 6 % of the error relates to sub-contracting costs, 4 % to travel costs and 5 % to other categories. Note that errors relating to indirect costs, that constitute 28 % of the error in Seventh Framework Programme, have been reduced to almost zero thanks to the introduction of the flat rate to cover the indirect costs.

-Around 22 % of the error relates to other direct costs (not personnel). The most regular error identified is the lack of direct measurement of costs.

-Around 63 % of the error relates to errors in the charging of personnel costs. Regular problems identified are incorrect calculation of productive hours; incorrect rates or incorrect number of hours charged.

An analysis of error rates has been carried out for the Horizon 2020 audits so far performed shows that:

Some errors arise because beneficiaries have not understood the rules. These errors can be addressed by simplification, although some complexity will always remain. Other errors arise because beneficiaries have not followed the rules. Although this is a minority of cases, simplification of the current rules will not resolve them.

The first results of Horizon 2020 suggest a representative error rate of around 3 %, with a residual error rate less than 2.5 %. Note, however, that this is an early estimate which should be used with care, it is likely to rise, perhaps to the 3-4 % level (the level or error anticipated by the Commission for its Horizon 2020 proposal was 3.5 %, although this did not take account of various additional complexities added during the legislative process). The residual error rate should remain some way below 3 %, it is too early to say whether a rate of 2 % will be attained. The Commission still considers that the error rates for European Research Council grants and Marie Sklodowska-Curie Actions will remain below 2 %.

For grants, the estimated representative rate of error for Seventh Framework Programme was 5 %, with a 'residual' error rate of around 3 %, after taking account of all recoveries and corrections that have been or will be implemented. However, the error rates were lower in those parts of the programme where it was possible to use Simplified Cost Options (SCOs) more widely and/or where a small and stable group of beneficiaries were involved. This included the European Research Council grants and Marie Curie Actions.

The Court recognised the value of the simplifications introduced in Horizon 2020. It did however recommend, in its 2016 Annual Report, the wider use of Simplified Cost Options (SCOs). Such SCOs are already in use in parts of the programme, or for specific types of expenditure.

The basic funding model to date has been the reimbursement of eligible costs. As the European Court of Auditors has consistently pointed out, most recently in its 2016 Annual Report, 'the principal risk to the regularity of transactions is that beneficiaries declare ineligible costs which are neither detected nor corrected before [reimbursement]. This risk is particularly high for the Seventh Framework Programme, which has complex eligibility rules that are often misinterpreted by beneficiaries (especially those less familiar with the rules, such as SMEs, first-time participants and non-EU entities)'.

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

In direct management, the Commission will continue to rely to a large extent on Executive Agencies, established in accordance with the Council Regulation 58/2003. The delegation of activities to the Executive Agencies is subject to a mandatory independent ex-ante Cost-Benefit Analysis and the Executive Agencies undergo regular evaluations performed by external experts. The above mentioned Cost-Benefit Analysis will also consider the costs of control and supervision. Interim evaluations conducted in 2012 and in 2015 confirm the high efficiency and added value of the Executive Agencies in programme implementation.

These bodies are subject to regular evaluations to ensure that they remain pertinent to achieving the objectives of the Programme. Control strategies for the supervision of bodies operating under indirect management have been, or will be, developed.

In indirect management, the Commission will make use of the following bodies to implement the budget where this is appropriate and cost-effective and provides strong leverage effect:

The first indications from Horizon 2020 audits are that error rates have been maintained well within the expected range (see section 2.2.2). This demonstrates that, even if it can still be further developed, simplification measures already introduced have been effective.

- certificates on the financial statements above a certain threshold, and certification on methodologies to calculate unit costs or ex-ante assessment on Large Research Infrastructure on a voluntary basis;

-procedures for selecting the best projects and translating them into legal instruments;

The narrower estimate of the costs of the control system (evaluation, selection, project management, ex-ante and ex-post control) are in the range of 3-4 % across the Commission services responsible for the implementation of the previous Framework Programmes for 2017 (including costs for the management of Seventh Framework Programme and Horizon 2020). This is considered to be a reasonable cost in the light of the efforts needed to ensure that objectives are achieved and the number of transactions.

Under Horizon 2020, to end February 2018, 154 000 proposals have been received (with 537 000 individual applications), 18 000 contracts signed (with 79 000 individual participations). Despite the dramatic increase in the number of proposals compared to Seventh Framework Programme, 95 % of contracts have been signed within the 8 month limit set by the legislation. The common IT systems and business processes have ensured efficiency at all levels. A Common Support Centre provides cost effective services to all Commission services responsible for the implementation of the previous Framework Programmes, with running costs of around 0.7 % of expenditure in 2017. Validation of Legal Entities and organisation of project evaluations has been centralised in the Research Executive Agency, giving economies of scale, and ensuring efficient organisation of evaluations.

The Framework Progamme for Research & Innovation will be implemented through direct and Indirect Management. There are no fundamental changes from the Horizon 2020 Framework Programme. However, further simplification measures will be implemented whenever it is possible.

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

In addition, the JRC's direct actions are assessed internally by means of an annual internal evaluation and externally through peer review by a number of top-level experts selected in consultation with the JRC's Board of Governors.

Report will be produced giving information on management processes (from year one) and, progressively, information on outputs and results. An interim evaluation and a final evaluation are planned.

All data on the management processes (applications, success rates, time to grant, type of beneficiaries, etc.) will be collected and stored, and made available in real time via a dedicated data storage. Today, the reference system (CORDA) works well , and is available for Member States and other interested bodies.

Short, medium and long term indicators have been set on the basis of a number of impact pathways. Reporting rules for participants have been designed with these indicators in mind, but also with a conscious intention to limit the administrative burden for participants. Wherever possible data will be collected from open sources.

Some rationalisation will be done at the level of the partnerships (which will be presented under a new common term ‘European Partnerships’), with the main focus on streamlining the current structure and number of existing entities and to make the partnership landscape more coherent both internally (within the FP) and externally (better co-ordination with other Union programmes and external partners). However, this rationalisation will not have impact on the actual legal forms used.

The types of implementing bodies expected to be established/renewed for Horizon Europe are:

It is expected that the Commission will continue channelling most of the funds through the Executive Agencies, with additional actions delivered by Union bodies or other bodies entrusted with budget implementation under indirect management established under articles 185 and 187 of the TFEU and targeted at specific priorities.

The implementation of Horizon Europe activities will be following the main principles established for Horizon 2020, with a substantial part of the global Horizon Europe budget expected to be implemented through specially-designed management modes.

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

–◻ 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.

–☑ bodies governed by the private law of a Member State that are entrusted with the implementation of a European Partnership and that provide adequate financial guarantees;

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

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

–☑ by its departments, including by its staff in the Union delegations;

–☑ Financial impact from 01/01/2021 to 31/12/2027 for commitment appropriations and from 01/01/2021 to 31/12/2033 for payment appropriations.

A non-exhaustive list of such arrangements and funding programmes include synergies with the following programmes:

Horizon Europe is designed to be implemented enabling synergies with other Union funding programmes, in particular through arrangements for complementary funding from EU programmes where management modalities permit; either in sequence, in an alternating way, or through the combination of funds including for the joint funding of actions.

The Communication on the interim evaluation of Horizon 2020 identified several areas for improvement. Findings of the interim evaluation of Horizon 2020 were based on extensive stakeholder feedback and the strategic recommendations of the independent High Level Group on maximising the impact of EU R&I Programmes (Lamy High Level Group).

EU Framework Programmes have generated significant and long-lasting impacts , as shown by successive evaluations since the EU started investing in R&I in 1984. While European research and innovation programmes have been successful, there are important lessons to be learned from the past, from stakeholder feedback, and from analytical studies. Research, innovation and education should be addressed in a more coordinated manner and coherent with other policies and research results better disseminated and valorised into new products, processes and services. The intervention logic of EU support programmes should be developed in a more focused, concrete, detailed, inclusive and transparent manner. Programme access should be improved and start-up, SME, industrial, EU13 and extra-EU participation increased. Monitoring and evaluation need to be strengthened.

·providing a sound knowledge base for policy-making (e.g. the work of the UN’s IPCC on climate change relied extensively on EU-funded research).

·having a positive structuring effect on national R&I ecosystems (the European Research Council has become a global beacon of excellence, inducing national and institutional changes to support and attract its grantees);

·increasing the EU's attractiveness as a place for education, research, innovation and business (EU-funded teams grow faster and attract twice as many collaborations from outside the EU);

·strengthening support for the emergence and scale-up of breakthrough market creating innovations (SMEs supported through EU R&I funding grow faster than comparable non-EU funded SMEs);

·strengthening scientific excellence through EU-wide competition and cooperation (EU-funded peer-reviewed publications are cited more than twice the world average);

·pooling public and private resources and knowledge to achieve critical mass for tackling global challenges and for taking leadership in EU and global markets (e.g. only EU-level action can overcome the thin distribution of patients affected by rare disease and the lack of standardisation and data);

·boosting EU competitiveness through the creation of trans-national and multidisciplinary networks and new markets, with positive knowledge dissemination and technology transfers across the Union to prepare deployment of new products and services (EU-funded R&I teams are 40 % more likely than non-EU funded teams to be granted patents, which are also of higher quality and commercial value);

The specific benefits of EU investments in the area of R&I are:

Research & Innovation (R&I) is a crucial part of the knowledge-based society and one where a strong European dimension leverage additional funds at national level, without evidence of substitution. Typically, R&I projects chosen for EU funding harness a higher level of EU or international cooperation and have a scale, scope and level of sophistication that would prevent them from going ahead with national funding alone (83 % of EU R&I projects would not have gone ahead without the EU-support). In a world of heightened technological competition, not investing in R&I on an EU scale would result in a decline of the EU's global competitiveness with foreseeable economic social and environmental impacts.

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.

–strengthen the impact of research and innovation in developing, supporting and implementing EU policies, and the uptake of innovative solutions in industry and society to address global challenges;

–support the creation and diffusion of high-quality new knowledge, technologies and solutions to global challenges;

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

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

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

2.The financial envelope for the Specific Programme may also cover technical and administrative assistance expenses necessary to ensure the transition between the Specific Programme and the measures adopted under its predecessor Decision 2013/743/EU.

Where necessary, any remaining tasks of the Committee established by Decision 2013/743/EU shall be undertaken by the Committee referred to in Article 12 of this Decision.

1.This Decision shall not affect the continuation or modification of the actions concerned, until their closure, under Decision 2013/743/EU, which shall continue to apply to the actions concerned until their closure.

6.The Commission shall regularly inform the Committee of the overall progress of the implementation of the specific programme and shall provide it with timely information on all actions proposed or funded under Horizon Europe, as specified in Annex III.

5.Where the opinion of the committee is to be obtained by written procedure, that procedure shall be terminated without result when, within the time-limit for delivery of the opinion, the chair of the committee so decides or a simple majority of committee members so request.

4.Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

3.Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

2.The committee shall meet in different configurations as set out in Annex II, having regard to the subject matter to be discussed.

1.The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

(d)any additional obligations for beneficiaries, in accordance with Articles 35 and 37 of the FP/RfP Regulation.

(c) the amount allocated to blended finance in accordance with Articles 41 to 43 of Regulation … FP/RfP Regulation:

(b)for grants the priorities, the selection and award criteria and the relative weight of the different award criteria and the maximum rate of funding of the total eligible costs;

(a)an indication of the amount allocated to each action and mission and an indicative implementation timetable;

3.In addition to requirement in Article 110 of the Financial Regulation, the work programmes referred to in paragraph 2 of this Article shall, as appropriate, contain:

(d)the JRC, where the multi-annual work programme shall take into account the opinion provided by the Board of Governors of the JRC referred to in Decision 96/282/Euratom.

(c)the EIC, where the work programme shall be prepared following the advice of the EIC Board under point (b) of Article 10(1), in accordance with the examination procedure referred to in Article 12(4);

(b)all clusters under the pillar 'Global Challenges and Industrial Competitiveness', MSCA, research infrastructures, support to innovation ecosystems, sharing excellence and reforming and enhancing the European R&I System, in accordance with the examination procedure referred to in Article 12(4);

(a)the ERC, where the work programme shall be established by the Scientific Council under point (b) of Article 7(2), in accordance with the advisory procedure referred to in Article 12(3). The Commission shall depart from the work programme established by the Scientific Council only when it considers that it is not in accordance with the provisions of this Decision. In that case, the Commission shall adopt the work programme by means of an implementing act in in accordance with the examination procedure referred to in Article 12(4). The Commission shall duly motivate this measure;

2.The Commission shall adopt separate work programmes, by means of implementing acts, for the implementation of actions under the following components, as set out in Article 3(1) of this Decision :

Work programmes shall set out, where applicable, the overall amount reserved for blending operations.

1.The Programme shall be implemented by work programmes referred to in Article 110 of Financial Regulation. They shall be prepared following a strategic planning process as described in Annex I to this Decision.

5.A code of conduct addressing, inter alia, the avoidance of conflict of interests shall be established by the Commission. Members of the EIC Board are expected to accept the code of conduct upon assuming office.

The President shall chair the EIC Board, prepare its meetings, assign tasks to members, and may establish dedicated sub-groups, in particular to identify emerging technology trends from EIC's portfolio. He or she shall promote the EIC, act as interlocutor with the Commission and represent the EIC in the world of innovation. The Commission may provide for administrative support for the President to undertake his or her duties.

The President shall be appointed for a term of office limited to four years, renewable once.

4.The EIC Board shall have a President who shall be appointed by the Commission following a transparent recruitment process. The President shall be a high profile public figure linked to the innovation world.

Their term of office shall be limited to two years, renewable twice, with a rolling appointments system (members appointed every two years).

The members of the EIC Board shall be appointed by the Commission, following an open call for nominations or for expression of interests or both, whichever the Commission will find more appropriate,, and taking into account the need for balance in expertise, gender, age and geographical distribution.

3.The EIC Board shall be composed of 15 to 20 high level individuals drawn from various parts of Europe's innovation ecosystem, including entrepreneurs, corporate leaders, investors and researchers. It shall contribute to outreach actions, with EIC Board members striving to enhance the prestige of the EIC brand.

The EIC Board shall act in accordance with its mandate set out in Pillar III of Annex I, section 1.

The EIC Board shall act in the interest of achieving the objectives of the EIC component. It shall act with integrity and probity and carry out its work efficiently and with transparency.

(c)emerging technology trends from EIC's portfolio, to inform the programming in other parts of the Specific Programme;

(b)identify in cooperation with relevant Commission services possible regulatory barriers faced by entrepreneurs, in particular those awarded support under the EIC component;

(a)any matter which from an innovation perspective may enhance and foster innovation eco-systems across Europe, the achievements and impact of the objectives of the EIC component and the capacity of innovative firms to roll out their solutions;

(c)the criteria for assessment of the innovativeness and risk profile of the proposals and the appropriate balance of grants, equity and other forms of financing for the EIC accelerator;

4.For the purpose of managing EIC blended finance, the Commission shall make use of indirect management, or where this is not possible, may establish a special purpose vehicle. The Commission shall seek to ensure the participation of other public and private investors. Where this is not possible at the initial set up, the special purpose vehicle will be structured in such a way that it can attract other public or private investors in order to increase the leverage effect of the Union contribution.

(a)in accordance with the principles set out in paragraph 1 of this Article, taking due account of the opinion of the EIC Board on the overall strategy for the EIC, referred to Article 10(1)(a); and

3.The Commission shall ensure that the implementation of the EIC is:

1.The Commission shall establish a European Innovation Council (EIC) for implementing actions under Pillar III 'Open Innovation' which relate to the EIC. The EIC shall operate according to the following principles: focus on breakthrough and disruptive innovation, autonomy, ability to take risk, efficiency, effectiveness, transparency and accountability.

2.The Commission shall ensure that the dedicated implementation structure follows strictly, efficiently and with the necessary flexibility the objectives and requirements of the ERC alone.

1.The dedicated implementation structure shall be responsible for the administrative implementation and programme execution, as described in Pillar I of Annex I, section 1. It shall support the Scientific Council in the conduct of all of its tasks.

4.The Scientific Council shall act exclusively in the interest of achieving the ERC, according to the principles set out in Article 6. It shall act with integrity and probity and carry out its work efficiently and with the greatest possible transparency.

3.The Scientific Council shall act in accordance with the mandate set out in Pillar I of Annex I, section 1.

The Commission shall depart from the positions established by the Scientific Council in accordance with points (a), (c), (d), and (e) of the first subparagraph only when it considers that the provisions of this Decision have not been respected. In that case, the Commission shall adopt measures to maintain continuity in the implementation of the specific programme and the achievements of its objectives, setting out the points of departure from the Scientific Council positions and duly motivating them.

(d)its position on any matter which from a scientific perspective may enhance achievements and impact of the ERC and the quality of the research carried out;

(c)the methods and procedures for peer review and proposal evaluation on the basis of which the proposals to be funded are determined;

Their term of office shall be limited to four years, renewable once, on the basis of a rotating system which shall ensure the continuity of the work of the Scientific Council.

The members of the Scientific Council shall be appointed by the Commission, following an independent and transparent procedure for their identification agreed with the Scientific Council, including a consultation of the scientific community and a report to the European Parliament and the Council.

1.The Scientific Council shall be composed of scientists, engineers and scholars of the highest repute and appropriate expertise, of both women and men in different age groups, ensuring a diversity of research areas and acting in their personal capacity, independent of extraneous interests.

The Commission shall ensure that the implementation of the ERC actions is in accordance with the principles set out in paragraph 4 of this Article as well as with the overall strategy for the ERC, referred to in point (a) of Article 7(2), established by the Scientific Council.

6.The Commission shall act as the guarantor of the autonomy and integrity of the ERC and shall ensure the proper execution of the tasks entrusted to it.

5.The activities of the ERC shall support research carried out across all fields by individual and transnational teams in competition at the European level.

4.The ERC shall operate according to the principles of scientific excellence, autonomy, efficiency, effectiveness, transparency and accountability. It shall ensure continuity with ERC actions conducted under Decision …/EC.

The President shall chair the Scientific Council and shall ensure its leadership and liaison with the dedicated implementation structure, and represent it in the world of science.

The President shall be appointed by the Commission following a transparent recruitment process involving an independent dedicated search committee, for a term of office limited to four years, renewable once. The recruitment process and the candidate selected shall have the approval of the Scientific Council.

3.The ERC shall have a President who shall be chosen from among senior and internationally respected scientists.

2.The ERC shall be composed of the independent Scientific Council provided for in Article 7 and the dedicated implementation structure provided for in Article 8.

1.The Commission shall establish a European Research Council ("ERC"), for implementing the actions under Pillar I 'Open Science' which relate to the ERC. The ERC shall succeed the ERC set up by Decision C(2013) 1895.

2.Specific provisions to enable an efficient and flexible portfolio approach may be set out in the work programme provided for in Article 11.

(b)adjustment actions, or termination if appropriate, based on implementation assessments of the mission;

(a)content of work programmes and their revision as needed for achieving the mission objectives, in co-design with stakeholders and the public where relevant;

1.For each mission, a mission board may be established. It shall be composed of around 15 high level individuals including relevant end-users' representatives. The mission board shall advise upon the following:

2.The amount referred to in paragraph 1 of this Article shall be distributed among the components set out in Article 3(1) of this Decision in accordance with Article 9(2) of Regulation … FP/RfP Regulation. The arrangements of Article 9(3) to (8) of Regulation … FP/RfP Regulation shall apply.

1.In accordance with Article 9(1)of Regulation … FP/RfP Regulation, the financial envelope for the implementation of the Specific Programme for the period 2021 to 2027 shall be EUR 94 100 000 000 in current prices.

2.The activities to be carried out under the parts referred to in paragraph 1 are set out in Annex I.

(b)reforming and enhancing the European R&I system, as described in Annex I, Part 'Strengthening the European Research Area', section 2.

1.In accordance with Article 4(1) of Regulation … FP/RfP Regulation, the Specific Programme shall consist of the following parts:

3.Within the objectives referred to in paragraph 2, account may be taken of new and unforeseen needs that arise during the period of implementation of the Specific Programme. That may, if duly justified, include responses to emerging opportunities, crises and threats, as well as responses to needs relating to the development of new Union policies.

(p)improving access to risk finance, in particular where the market does not provide viable financing.

(e)attracting, training and retaining researchers and innovators in the European Research Area, including through mobility of researchers;

1.The Specific Programme shall contribute to the general and specific objectives set out in Article 3 of Regulation … FP/RfP Regulation

It lays down the operational objectives of the Specific Programme, the budget for the period 2021 – 2027, the rules for implementation of the Specific Programme and activities to be carried out under the Specific Programme .

This Decision establishes the specific programme implementing Horizon Europe - the Framework Programme for Research and Innovation (the ‘Specific Programme’), as set out in Article 1(3)(a) of the FP/RfP Regulation…/…/EU.

(9)The types of financing and the methods of implementation under this Decision shall be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. For grants, this shall include consideration of the use of lump sums, flat rates and scales of unit costs.

(8)The completion of the Digital Single Market and the growing opportunities from the convergence of digital and physical technologies requires a stepping up of investments. Horizon Europe will contribute to these efforts with a substantial increase of spending in main digital research and innovation activities compared to the Research and Innovation Framework Programme Horizon 2020. This should ensure that Europe remains at the forefront of global research and innovation in the digital field.

(7)Reflecting the important contribution that research and innovation should make to address challenges in food, agriculture, rural development and the bioeconomy, and to seize the corresponding research and innovation opportunities in close synergy with Common Agricultural Policy, relevant actions under the Specific Programme will be supported with EUR 10 billion for the cluster 'Food and Natural Resources' for the period 2021-2027.

(6)The Specific Programme's actions should be used to address market failures or sub-optimal investment situations, in a proportionate manner, without duplicating or crowding out private financing and have a clear European added value.

(5)Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, this Specific Programme will contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the EU budget expenditures supporting climate objectives. Actions under this Specific Programme are expected to contribute 35% of the overall financial envelope of the Specific Programme to climate objectives. Relevant actions will be identified during the Specific Programme's preparation and implementation, and reassessed in the context of the relevant evaluations and review processes.

(4)The Board of Governors of the Joint Research Centre (JRC), set up by Commission Decision 96/282/Euratom has been consulted on the scientific and technological content of the Specific Programme on the non-nuclear direct actions of the JRC;

(3)In order to ensure uniform conditions for the implementation of the Specific Programme, implementing powers should be conferred on the Commission to adopt work programmes for the implementation of the Specific Programme. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.

(2)FP/RfP Regulation (EU) No … sets out the general and specific objectives of Horizon Europe, the structure and the broad lines of activities to be carried out, while this specific programme implementing Horizon Europe - the Framework Programme for Research and Innovation (the 'Specific Programme') should define the operational objectives and the activities which are specific to parts of Horizon Europe. The provisions on implementation set out in FP/RfP Regulation (EU) No … apply fully to the Specific Programme, including those relating to ethical principles.

(1)In accordance with Article 182(3) of the Treaty on the Functioning of the European Union (TFEU), the Horizon Europe - Framework Programme for Research and Innovation ("Horizon Europe"), established by FP/RfP Regulation (EU) No … of the European Parliament and of the Council of… , is to be implemented through specific programmes, which define the detailed rules for their implementation, fix their duration and provide for the means deemed necessary.

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

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

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 173(3) and 182(4) thereof,

See Annex I of this proposal for more detail on the areas funded under each of the pillars and on programme activities. This includes implementation arrangements and general principles with a specific focus on strategic planning, dissemination and communication, exploitation and market uptake, support for policy-making and international cooperation.

In implementing Horizon Europe, the Commission will be assisted by a Committee (see Article 12) within the meaning of Regulation (EU) No 182/2011. It would meet in different configurations (see Annex II of this Decision), depending on the subject matter to be discussed.

This part will also include activities on: foresight activities; monitoring and evaluating the Framework Programme and disseminating and exploiting results; modernising European universities; supporting enhanced international cooperation; and science, society and citizens.

The main components of this particular part are: ‘sharing excellence’; and ‘reforming and enhancing the European R&I system’, covering the next generation Policy Support Facility.

Another feature of the Open Innovation pillar is an increased cooperation with innovation ecosystems aimed at improving the environment within which innovation can flourish, in particular but not exclusively via the EIT, which will promote sustainable innovation ecosystems and develop entrepreneurial and innovation skills in priority areas through its Knowledge and Innovation Communities.

The Accelerator will place a particular emphasis on innovation generated within the Pathfinder, though it will also fund projects from other parts of Horizon Europe such as the European Research Council or the European Institute of Innovation and Technology's Knowledge and Innovation Communities.

The Accelerator will support the further development and market deployment of breakthrough and market-creating innovations, to a stage where it can be financed under normal commercial terms by investors (e.g. from demonstration, user testing, pre-commercial production, including scale-up). It will provide EIC blended finance (i.e. grants combining direct equity and access to financial guarantees).

The Pathfinder for Advanced Research will provide grants from the early technology stage (including proof-of-concept, technology validation) to the early commercial stage (early demonstration, developing a business case and strategy).

The EIC will provide direct tailor-made support to innovators through two main funding instruments – the Pathfinder and the Accelerator – which will both focus through a mainly bottom-up, high-risk approach on breakthrough innovation; on innovator needs and be pro-actively managed.

The Commission may recruit programme managers, following an open and transparent selection procedure, for the implementation of the EIC.

The European Innovation Council will be the sole channel for the Union support to breakthrough market-creating innovation. It will govern relevant activities previously carried out in Horizon 2020, such as Innovation in SMEs and Future and Emerging Technologies (FET Open and FET Proactive), and Access to Risk Finance (now aligned with the InvestEU Fund Regulation).

To implement the EIC, the Commission will establish a high level board (the EIC Board) that will advise, inter alia, on the overall strategy, objectives, activities, evaluation criteria and selection of experts. The work programme for the implementation of the EIC actions will be prepared by the Commission on the basis of the advice of the EIC Board.

–activities aiming at enhancing and developing the overall European innovation landscape, including support to the European Institute of Innovation and Technology (EIT).

–scaling up breakthrough and market-creating innovation through a new European Innovation Council (EIC – see articles 9 to 10); and

The Future and Emerging Technologies (FET) flagships of Horizon 2020 have similar features to the mission's concept. For this reason, and also to simplify the funding landscape, any FET flagships planned under Horizon Europe will be set up as missions, in accordance with the mission criteria and implemented using the same modalities.

Other relevant projects which may contribute to the success of the missions may be incorporated in the portfolio approach, and a broad range of actors, such as foundations, may also be able to contribute.

The applicable evaluation and selection criteria, along with the evaluation method for missions (e.g. ensuring a portfolio approach), will be set out in the work programme. The aim is will be to assess excellence and impact at the collective level.

The evaluation of proposals will be done with the help of independent evaluators who will be responsible for proposing a portfolio of projects that collectively address a given mission.

The implementation provisions will allow a ‘portfolio approach’, whereby proposals will be evaluated and selected, and projects managed within a portfolio of actions, rather than individually.

Mission managers may be recruited by the Commission to ensure that the best available expertise is used to implement and achieve the stated objectives.

For co-designing the missions and steering their implementation, the Commission may set up mission boards. They will advise on potential high-impact missions and rely in doing so on a design process that involves stakeholders and includes public outreach. The mission boards will be composed of stakeholders, including end-users to ensure their engagement, and Commission departments to ensure links to Union policies. The members of the mission boards will normally be appointed by the Commission, following an open call for expression of interests, and taking into account the need for balance in expertise, gender, age and geographical distribution. However, if appropriate, existing governance structures could also be used as mission boards.

The first few missions will be introduced in the first strategic planning exercise. Based on the first two years' experience, the number and scale of missions could be increased in subsequent work programmes. Whilst the duration of the Union support to missions would not be expected to exceed 10 years and will be subject to regular review (through the work programme cycle), the timeframe for expected impact of missions could spread out beyond this timeframe.

There will not be a separate budget for missions, though missions will have a budget assigned through the work programme. Missions are normally expected to be cross-cutting in nature and so receive their budget from more than one cluster.

Missions will be decided and co-designed as part of the Horizon Europe strategic planning process, which will include a collaborative effort by relevant Commission departments, Member States, the European Parliament and relevant stakeholders.

A small number of missions with specific goals will be launched from within the pillar, establishing a comprehensive portfolio of projects, but also drawing on relevant activities and outputs from other parts of the programme. The specific provisions on missions are set out in Article 5.

The clusters – supported by areas of intervention – cut across typical boundaries between disciplines, sectors and policy areas and will lead to more collaboration and increased impact in what concerns Union and global policy priorities.

This pillar includes five thematic clusters that address the full spectrum of global challenges through top-down collaborative R&I activities.

This pillar builds on the success of the European Research Council, the Marie Skłodowska-Curie Actions and the Research Infrastructures component in the current framework programme. For the specific rules on the European Research Council see Articles 6 to 8.

To support the full utilisation of the potential of the programme to contribute to climate objectives, the Commission will seek to identify relevant actions throughout the programme preparation, implementation, review and evaluation processes.

The Commission proposal for the 2021-2027 Multiannual Financial Framework set a more ambitious goal for climate mainstreaming across all EU programmes, with an overall target of 25% of EU expenditure contributing to climate objectives. The contribution of this programme to the achievement of this overall target will be tracked through an EU climate marker system at an appropriate level of disaggregation, including the use of more precise methodologies where these are available. The Commission will continue to present the information annually in terms of commitment appropriations in the context of the annual draft budget.

It will also be aligned tightly with other Union programmes, not least to promote faster dissemination and uptake of results from investments in research and innovation.

The priorities of Horizon Europe will be very closely aligned with the Union’s general strategic priorities and its policies. The strategic planning will be based on foresight activities, studies and other scientific evidence and take account of relevant existing initiatives at Union and national level. It will incorporate inter-disciplinary and cross-sectoral perspectives and ensure that all activities under Horizon Europe are coordinated in an effective manner.

The strategic planning exercise will lay out a multiannual strategy for the development of work programme content (as set out in Article 11), though it will remain sufficiently flexible to respond rapidly to unexpected needs and crises, as well as the policy priorities set out in the Commission’s Work Programme cycle. It will take the second pillar – Global Challenges and Industrial Competitiveness - as the centre of gravity for this planning.

The implementation of Horizon Europe will be steered by an inclusive and transparent strategic planning process of the research and innovation activities the programme will fund. This will follow extensive consultations and exchanges with Member States, the European Parliament as appropriate, and with various stakeholders, including civil society organisations, about priorities (including missions, under the Global Challenges and Industrial Competitiveness pillar), and the suitable types of action and forms of implementation, in particular European partnerships.

This legal act sets out specific implementation and programming provisions for the framework programme, especially for

The proposal for the Framework Programme (a Framework Programme for Research and Innovation entitled ‘Horizon Europe’, including laying down its rules for participation and dissemination), sets out the general and specific objective of Horizon Europe, the structure and the broad lines activities to be carried out, while this Decision should define the operational objectives and the activities which are specific to parts of Horizon Europe.

This proposal provides for a date of application as of 1 January 2021 and is presented for a Union of 27 Member States, in line with the notification by the United Kingdom of its intention to withdraw from the European Union and Euratom based on Article 50 of the Treaty on European Union received by the European Council on 29 March 2017.The following section details the specific points in this proposal.

For more on the overall Horizon Europe proposal, see the explanatory memorandum for the underlying act (proposal for a regulation establishing 'Horizon Europe – the Framework Programme for Research and Innovation and laying down its rules for participation and dissemination').

The specific programme established by this Decision is based both on Article 182 TFEU and, due to its strong support for innovation, on Article 173 TFEU.

As per Article 182 of the Treaty on the Functioning of the European Union (‘TFEU’) the framework programme shall be implemented through specific programmes that set out detailed rules for implementing it, fix its duration and provide for the means deemed necessary. The programme Horizon Europe will be implemented through the specific programme established by this Decision and the specific programme on defence research.

The proposal is framed by the premise that research and innovation (R&I) delivers on citizens’ priorities, boosts the Union’s productivity and competitiveness, and is crucial for sustaining our socio-economic model and values, and enabling solutions that address challenges in a more systemic way.

The ‘Horizon Europe’ proposal is fully in line with the Commission's proposal on the next long-term Union budget for 2021 to 2027, as well as the Commission’s priorities, as set out in its Agenda for Jobs, Growth, Fairness and Democratic Change and global policy priorities (the Sustainable Development Goals). It supports the agenda of the Union post-2020 as agreed in the Rome Declaration of 25 March 2017.

EUROPEAN COMMISSION Brussels,7.6.2018 COM(2018) 436 final ANNEXES to the Proposal for a



DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the specific programme implementing Horizon Europe – the Framework Programme for Research and Innovation



ANNEX I PROGRAMME ACTIVITIES The following will be applied in the implementation of the Programme. Strategic Planning The implementation of Horizon Europe's programme-level objectives in an integrated manner will be ensured by multiannual Strategic Planning. Such planning will provide the focus on impact for the Programme overall and coherence between its different pillars, as well as synergy with other EU programmes and support to and from other EU policies. The Strategic Planning will promote strong engagement with citizens and civil society organisations at all stages of research and innovation, the co-creation of knowledge, effective promotion of gender equality, including the integration of the gender dimension in research and innovation content, and will ensure and promote the adherence to the highest ethics and integrity standards. It will include extensive consultations and exchanges with Member States, the European Parliament as appropriate, and with various stakeholders about priorities, including missions, under the 'Global Challenges and Industrial Competitiveness' pillar, and the suitable types of action to use, in particular European partnerships. Based on such extensive consultations, the Strategic Planning will identify common objectives and common areas for activities such as partnership areas (the proposed legal basis sets out only the instruments and criteria that will guide their use) and mission areas. The Strategic Planning will help to develop and realise the implementation of policy for the relevant areas covered, at EU level as well as complementing policy and policy approaches in the Member States. EU policy priorities will be taken into consideration during the Strategic Planning process to increase the contribution of research and innovation to the realisation of policy. It will also take into account foresight activities, studies and other scientific evidence and take account of relevant existing initiatives at EU and national level. The Strategic Planning will promote synergies between Horizon Europe and other Union Programmes, including the Euratom programme, thus becoming a point of reference for research and innovation in all related programmes across the EU budget and non-funding instruments. This will also promote faster dissemination and uptake of research and innovation results and avoid duplication and overlaps between funding possibilities. It will provide the frame for linking the direct research actions of the Joint Research Centre and other actions supported under the Programme, including the use of results for support to policy. A Strategic Plan will lay out a multiannual strategy for realising content in the work programme (as set out in Article 11), while retaining sufficient flexibility to respond rapidly to unexpected opportunities and crises. As Horizon Europe is a programme for 7 years, the economic, societal and policy context in which it will operate may change significantly during its life-time. Horizon Europe needs to be able to swiftly adapt to these changes. There will therefore be the possibility to include support for activities beyond the descriptions set out below, where this is duly justified, to address major developments or unforeseen events, policy needs, or crisis situations, for example in response to serious threats to health arising for example from epidemics. In the implementation of Horizon Europe, particular attention will be paid to ensuring a balanced and broad approach to research and innovation, which is not only limited to the development of new products processes and services on the basis of scientific and technological knowledge and breakthroughs, but also incorporates the use of existing technologies in novel applications and continuous improvement and non-technological and social innovation. A systemic, cross-disciplinary, cross-sectoral and cross-policy approach to research innovation will ensure that challenges can be tackled while also giving rise to new competitive businesses and industries, fostering competition, stimulating private investments and preserving the level playing field in the internal market. In the 'Global Challenges and Industrial Competitiveness' and the 'Open Innovation' Pillars, research and innovation will be complemented with activities which operate close to the end-users and the market, such as demonstration, piloting or proof-of-concept, excluding however commercialisation activities going beyond the research and innovation phase. This will also include support to demand-side activities that help accelerate the deployment and diffusion of a broad range of innovations. Emphasis will be put on non-prescriptive calls for proposals. Under the 'Global Challenges and Industrial Competitiveness' pillar, building on experience in Horizon 2020, the social sciences and the humanities will be fully integrated across all clusters, including specific and dedicated activities. Likewise, activities involving marine and maritime research and innovation will be implemented in a strategic and integrated manner in line with the EU Integrated Maritime Policy, the Common Fisheries Policy Policies and international commitments. 'FET Flagships' supported under Horizon 2020 will continue to be supported under this Programme. As they present substantial analogies with missions, other 'FET flagships', if any, will be supported under this Framework Programme as missions geared towards future and emerging technologies. Science and Technology Cooperation dialogues with the EU's international partners and policy dialogues with the main world regions will make important contributions to the systematic identification of opportunities for cooperation which, when combined with differentiation by country/region, will support priority setting.

While the European Institute of Innovation and Technology's (EIT) focus on innovation ecosystems makes it naturally fit within the Open Innovation pillar of Horizon Europe, the planning of the EIT Knowledge and Innovation Communities (KICs) will be aligned through the Strategic Planning process with the Global Challenges and Industrial Competitiveness pillar. Dissemination and Communication Horizon Europe will provide dedicated support for open access to scientific publications, to knowledge repositories and other data sources. Dissemination and knowledge diffusion actions will be supported, also from cooperation with other EU programmes, including clustering and packaging results and data in languages and formats for target audiences and networks for citizens, industry, public administrations, academia, civil society organisations, and policy makers. For this purpose, Horizon Europe may make use of advanced technologies and intelligence tools. There will be appropriate support for mechanisms to communicate the programme to potential applicants (e.g. National Contact Points). The Commission will also implement information and communication activities relating to Horizon Europe, to promote the fact that results were obtained with the support of EU funding. They will also seek to raise public awareness on the importance of research and innovation and the broader impact and relevance of EU funded research and innovation, by means of e.g. publications, media relations, events, knowledge repositories, databases, multi-channel platforms, websites or a targeted use of social media. Horizon Europe will also provide support to the beneficiaries to communicate their work and its impact to society at large. Exploitation and Market Uptake The Commission will establish comprehensive measures for exploitation of Horizon Europe results and the knowledge produced. This will accelerate exploitation towards market uptake and boost the impact of the Programme. The Commission will systematically identify and record the results of the research and innovation activities under the Programme and transfer or disseminate these results and knowledge produced in a non-discriminatory fashion to industry and enterprises of all sizes, public administrations, academia, civil society organisations and policy-makers, in order to maximise the European added value of the Programme. International Cooperation Greater impact will be obtained through aligning actions with other nations and regions of the world within an international cooperation effort of unprecedented scale. Based on mutual benefit, partners from across the world will be invited to join EU efforts as an integral part of initiatives in support of EU action for sustainability, reinforced research and innovation excellence, and competitiveness. International joint action will ensure effective tackling of global societal challenges and Sustainable Development Goals, access to the world's best talents, expertise and resources, and enhanced supply and demand of innovative solutions. Working Methodologies for Evaluation The use of high quality independent expertise in the evaluation process underpins the engagement of the programme across all stakeholders, communities and interests, and is a prerequisite for maintaining the excellence and relevance of the funded activities. The Commission or funding body will ensure the impartiality of the process, and avoid conflicts of interest in line with Article 61 of the Financial Regulation. Exceptionally, when justified by the requirement to appoint the best available experts and/or by the limited size of the pool of qualified experts, independent experts assisting or being members of the evaluation committee may evaluate specific proposals for which they declare a potential interest. In this case, the Commission or funding body shall take all necessary remedial measures to ensure the integrity of the evaluation process. The evaluation process will be managed accordingly, including a stage involving an interaction between diverse experts. The evaluation committee will take into account the particular circumstances when identifying proposals for funding.



PILLAR I

OPEN SCIENCE The search for breakthroughs in understanding and the acquisition of knowledge; the world class facilities needed to achieve this including physical and knowledge infrastructures for research and innovation as well as the means to openly disseminate and share knowledge; and an adequate supply of excellent researchers; are at the very heart of economic, social and cultural progress in all its forms. Open and excellent science is inextricably linked to the achievement of world leading innovation. Scientific and technological paradigm shifts have been identified as key drivers for productivity growth, competitiveness, wealth, sustainable development and social progress. Such paradigm shifts have historically tended to originate from the public-sector science base before going on to lay the foundations for whole new industries and sectors. Public investment in research, especially through universities and public research institutions (PRIs) and research facilities, often undertakes the longer-term, higher-risk research and complements the activities of the private sector. Besides this it creates skills, knowhow and experience, new scientific instruments and methodologies, as well creating the networks which transmit the latest knowledge. European science and researchers have been and continue to be at the forefront in many areas. But this is not a position we can take for granted. There is ample evidence to show that as the pace of research continues to grow, so the number of countries competing to be the best is increasing as well. The traditional challenge from countries such as the United States is now being joined by economic giants such as China and India, from the newly industrialising parts of the world in particular, and from all countries where governments recognise the manifold and abundant returns which derive from investing in research.



1.EUROPEAN RESEARCH COUNCIL (ERC) 1.1.Rationale Although the EU remains the largest producer of scientific publications in the world, it is essentially a 'mass producer' of knowledge with, relative to its size, comparatively few centres of excellence that standout at the world level and with large areas of average and poor performance. Compared with the US and now China to some degree, the EU still tends to follow a 'distributed excellence model' in which resources are spread across a larger number of researchers and research institutions Another challenge is that in many EU countries the public sector still does not offer sufficiently attractive conditions for the best researchers. These factors compound Europe's relative unattractiveness in the global competition for scientific talent. The global research landscape is evolving dramatically and becoming increasingly multipolar as a result of a growing number of emerging countries, in particular China, expanding their scientific production. So whereas the EU and the United States accounted for nearly two-thirds of world expenditure on research and development in 2000, this share had fallen to less than half by 2013. The ERC supports the best researchers with flexible, long-term funding to pursue ground breaking, high-gain/high-risk research. It operates autonomously led by an independent Scientific Council made up of scientists, engineers and scholars of the highest repute and appropriate expertise and diversity. The ERC is able to draw on a wider pool of talents and ideas than would be possible for any national scheme, reinforcing excellence through the way in which the best researchers and the best ideas compete against each other. Frontier research funded by the ERC has a substantial direct impact in the form of advances at the frontiers of knowledge, opening the way to new and often unexpected scientific and technological results and new areas for research. In turn, this generates radically new ideas which drive innovation and business inventiveness and tackle societal challenges. The ERC also has a significant structural impact, driving up the quality of the European research system over and above the researchers and actions it funds directly. ERC-funded actions and researchers set an inspirational target for frontier research in Europe, raising its profile and making it more attractive for the best researchers worldwide as a place to work, and work with. The prestige of hosting ERC grant- holders creates competition between Europe's universities and research organisations to offer the most attractive conditions for top researchers and can indirectly help them to assess their relative strengths and weaknesses and bring about reforms. The gap between the research performance of the US and the EU countries has narrowed over the 10 years since the ERC was established. The ERC funds a relatively small percentage of all European research, but from this achieves a disproportionally high scientific impact. The average citation impact of the research supported by the ERC is comparable to that of the world’s top elite research universities. The ERC’s research performance is extremely high when compared with the world’s largest research funders. The ERC funds a great deal of frontier research in many of the research areas that have received the highest numbers of citations, including those areas that are rapidly emerging. Although ERC funding is targeted to frontier research it has resulted in a substantial number of patents. So there is clear evidence that the ERC attracts and funds excellent researchers through its calls and ERC actions are producing a substantial number of the most significant and high impact research findings worldwide in emerging areas leading to breakthroughs and major advances. The work of ERC grantees is also highly interdisciplinary and ERC grantees collaborate internationally and publish their results openly across all fields of research including the social sciences and humanities. There is also already evidence of the longer term impacts of ERC grants on careers, on training highly skilled postdocs and PhDs, on raising the global visibility and prestige of European research and on national research systems through its strong benchmarking effect. This effect is particularly valuable in the EU's distributed excellence model because ERC funded status can replace and serve as a more accurate indicator of research quality than recognition based on the status of institutions. This allows ambitious individuals, institutions, regions and countries to seize the initiative and scale up the research profiles in which they are particularly strong. 1.2.Areas of intervention 1.2.1.Frontier Science Research funded by the ERC is expected to lead to advances at the frontier of knowledge, with scientific publications of the highest quality, to research results with high societal and economic potential impact and with the ERC setting a clear and inspirational target for frontier research across the EU, Europe and internationally. Aiming to make the EU a more attractive environment for the world's best scientists, the ERC will target a measurable improvement in the EU's share of the world's top 1 % most highly cited publications, and aim at a substantial increase in the number of excellent researchers from outside Europe which it funds. ERC funding shall be awarded in accordance with the following well-established principles. Scientific excellence shall be the sole criterion on which ERC grants are awarded. The ERC shall operate on a 'bottom-up' basis without predetermined priorities.

Broad Lines –Long-term funding to support excellent investigators and their research teams to pursue ground-breaking, high-gain/high-risk research; –Starting researchers with excellent ideas to make the transition to independence while consolidating their own research team or programme; –New ways of working in the scientific world with the potential to create breakthrough results and facilitate commercial and social innovation potential of funded research; –Sharing experience and best practices with regional and national research funding agencies to promote the support of excellent researchers; –Raising the visibility of ERC programmes.

1.3.Implementation 1.3.1.The Scientific Council The Scientific Council is the guarantor of the quality of the activity from the scientific perspective and has full authority over decisions on the type of research to be funded. In the context of the implementation of the framework programme and in order to carry out its tasks, as set out in Article 7, the Scientific Council will: (1) Scientific strategy: –establish the overall scientific strategy for the ERC, in the light of scientific opportunities and European scientific needs; –establish the work programme and develop the ERC's mix of support measures in line with its scientific strategy; –establish the necessary international cooperation initiatives including outreach activities, to increase the visibility of the ERC for the best researchers from the rest of the world, in line with its scientific strategy. (2) Scientific management, monitoring and quality control: –ensure a world-class peer review system based on fully transparent, fair and impartial treatment of proposals by establishing positions on implementation and management of calls for proposals, evaluation criteria, peer review processes including the selection of experts, the methods for peer review and proposal evaluation and the necessary implementing rules and guidelines, on the basis of which the proposals to be funded will be determined under the supervision of the Scientific Council; –experts shall be appointed on the basis of a proposal from the ERC Scientific Council in the case of ERC frontier research actions; – ensure that ERC grants are implemented according to simple, transparent procedures that maintain the focus on excellence, encourage initiative and combine flexibility with accountability by continuously monitoring the quality of the operations and implementation; –review and assess the ERC's achievements and the quality and impact of the research funded by the ERC and make recommendations for corrective or future actions;

–establish positions on any other matter affecting the achievements and impact of the ERC's activities and the quality of the research carried out. (3) Communication and dissemination: –raise the global profile and visibility of the ERC by conducting communication and outreach activities including scientific conferences to promote the ERC's activities and achievements and the results of the projects funded by the ERC with the scientific community, key stakeholders and the general public; –where appropriate, consult with the scientific, engineering and scholarly community, regional and national research funding agencies and other stakeholders. –regularly report to the Commission on its own activities. The members of the Scientific Council shall be compensated for the tasks they perform by means of an honorarium and, where appropriate, reimbursement of travel and subsistence expenses. The President of the ERC will reside in Brussels for the duration of the appointment and devote most of his/her working time to ERC business. He/she will be remunerated at a level commensurate with the Commission's top management and will be provided by the Dedicated Implementation Structure with the necessary support to carry out his or her functions. The Scientific Council shall elect from amongst its members three Vice-Chairs who shall assist the President in its representation and the organisation of its work. They may also hold the title of Vice-President of the ERC. Support will be provided to the three Vice-Chairs to ensure adequate local administrative assistance at their home institutes. 1.3.2.Dedicated Implementation Structure The dedicated implementation structure will be responsible for all aspects of administrative implementation and programme execution, as provided for in the ERC work programme. It will, in particular, implement the evaluation procedures, peer review and selection process in accordance with the strategy established by the Scientific Council and will ensure the financial and scientific management of the grants. The dedicated implementation structure will support the Scientific Council in the conduct of all of its tasks as set out above including the development of its scientific strategy, its monitoring of the operations and its review and assessment of the ERC's achievements as well as its outreach and communications activities, provide access to the necessary documents and data in its possession, and keep the Scientific Council informed of its activities. In order to ensure an effective liaison with the dedicated implementation structure on strategy and operational matters, the leadership of the Scientific Council and the Director of the dedicated implementation structure will hold regular coordination meetings. The management of the ERC will be carried out by staff recruited for that purpose, including, where necessary, officials from the EU institutions, and will cover only the real administrative needs in order to assure the stability and continuity necessary for an effective administration. 1.3.3.Role of the Commission In order to fulfil its responsibilities as set out in Articles 6, 7 and 8 and in the context of its own responsibilities for budget execution, the Commission will: –ensure the continuity and renewal of the Scientific Council and provide support for a standing Identification Committee for the identification of future Scientific Council members; –ensure the continuity of the dedicated implementation structure and the delegation of tasks and responsibilities to it taking into account the views of the Scientific Council;

–ensure that the dedicated implementation structure carries out the full range of its tasks and responsibilities; –appoint the Director and the members of the management of the dedicated implementation structure taking into account the views of the Scientific Council; –ensure the timely adoption of the work programme, the positions regarding implementing methodology and the necessary implementing rules including the ERC Rules of Submission and the ERC Model Grant Agreement, taking into account the positions of the Scientific Council; –regularly inform and consult the Programme Committee on the implementation of the ERC activities; –as responsible for the overall implementation of the Research Framework Programme, monitor the dedicated implementation structure.



2.MARIE SKŁODOWSKA-CURIE ACTIONS (MSCA) 2.1.Rationale Europe needs a highly-skilled and resilient human capital base in research and innovation that can easily adapt to and find sustainable solutions for future challenges, such as major demographic changes in Europe. To ensure excellence, researchers need to be mobile, collaborate and diffuse knowledge across countries, sectors and disciplines, with the right combination of knowledge and skills to tackle societal challenges and support innovation. Europe is a scientific powerhouse with around 1.8 million researchers working in thousands of universities, research centres and world-leading companies. However, it is estimated that the EU will need to train and employ at least one million new researchers by 2027 in order to achieve the targets beings set for increased investment in research and innovation. This need is particularly acute in the non-academic sector. The EU must reinforce its efforts to entice more young women and men to a career in research, to attract researchers from third countries, retain its own researchers and reintegrate European researchers working elsewhere back to Europe. In addition, in order to more widely spread excellence, the conditions under which researchers perform must be further improved throughout the European Research Area (ERA). In this respect, stronger links are needed notably with the European Education Area (EEdA), the European Regional Development Fund (ERDF), and European Social Fund (ESF+). These challenges can best be addressed at EU level due to their systemic nature and to the cross-country effort needed to solve them. The Marie Skłodowska-Curie Actions (MSCA) focus on excellent research that is fully bottom-up, open to any field of research and innovation from basic research up to market take-up and innovation services. This includes research fields covered under the Treaty on the Functioning of the European Union and the Treaty establishing the European Atomic Energy Community (Euratom). If specific needs arise and additional funding sources become available, the MSCA may target certain activities in specific challenges (incl. identified missions), types of research and innovation institutions, or geographical locations in order to respond to the evolution of Europe's requirements in terms of skills, research training, career development and knowledge sharing. The MSCA are the main instrument at EU-level for attracting researchers from third countries to Europe, thus making a major contribution to global cooperation in research and innovation. Evidence shows that the MSCA not only have a positive impact on individuals, organisations, and at system level, but also yield high-impact and breakthrough research results while at the same time contributing significantly to societal as well as strategic challenges. Long-term investment in people pays off, as indicated by the number of Nobel Prize winners who have been either former MSCA fellows or supervisors. Through global research competition between scientists and between host organisations from both the academic and non-academic sector, and through the creation and sharing of high-quality knowledge across countries, sectors and disciplines, the MSCA contribute notably to the goals of the 'Jobs, growth and investment' agenda, the EU Global Strategy and to the United Nations Sustainable Development Goals. The MSCA contribute to making the ERA more effective, competitive and attractive on a global scale. This can be achieved by focusing on a new generation of highly-skilled researchers and providing support for emerging talent from across the EU and beyond; by fostering the diffusion and application of new knowledge and ideas to European policies, the economy and society, inter alia through improved science communication and public outreach measures; by facilitating cooperation between research-performing organisations; and by having a pronounced structuring impact on the ERA, advocating an open labour market and setting standards for quality training, attractive employment conditions and open recruitment for all researchers. 2.2.Areas of Intervention 2.2.1.Nurturing Excellence through Mobility of Researchers across Borders, Sectors and Disciplines

The EU must remain a reference for excellent research and thus attractive for the most promising researchers, European and non-European alike, at all stages of their careers. This can be achieved by enabling researchers and research-related staff to move and collaborate between countries, sectors and disciplines and thus benefit from high-quality training and career opportunities. This will facilitate career moves between the academic and non-academic sector as well as stimulate entrepreneurial activity. Broad Lines –Mobility experiences within or outside Europe for the best or most promising researchers regardless of nationality to undertake excellent research and develop their skills as well as career in both the academic and non-academic sector. 2.2.2.Fostering new Skills through Excellent Training of Researchers The EU needs a strong, resilient and creative human resource base, with the right combination of skills to match the future needs of the labour market, to innovate and to convert knowledge and ideas into products and services for economic and social benefit. This can be achieved through training researchers to further develop their core research competences as well as enhance their transferable skills such as a creative and entrepreneurial mindset. This will allow them to face current and future global challenges, and improve their career prospects and innovation potential. Broad Lines –Training programmes to equip researchers with a diversity of skills relevant to current and future global challenges. 2.2.3.Strengthening Human Capital and Skills Development across the European Research Area In order to foster excellence, promote cooperation between research-performing organisations and create a positive structuring effect, high-quality training standards, good working conditions and effective career development of researchers need to be more widely spread across the ERA. This will help modernise or enhance research training programmes and systems as well as increasing institutions' worldwide attractiveness. Broad Lines –Training programmes to foster excellence and spread best practices across institutions and research and innovation systems; –Cooperation, production and diffusion of knowledge within the EU and with third countries. 2.2.4.Improving and Facilitating Synergies Synergies between research and innovation systems and programmes at EU, regional and national level need to be significantly strengthened. This can be achieved in particular through synergies and complementarities with other parts of Horizon Europe such as the European Institute of Innovation and Technology (EIT) and other EU programmes, notably the ESF+, including via a Seal of Excellence. Broad Lines –Training programmes and similar research career development initiatives supported through complementary public or private funding sources at regional, national or EU level.

2.2.5.Promoting Public Outreach The awareness of the programme’s activities and the public recognition of researchers need to be enhanced across the EU and beyond, to raise the global profile of the MSCA and to develop a better understanding of the impact of researchers’ work on citizens’ daily lives, and to encourage young people to embark on research careers. This can be achieved through better dissemination, exploitation and diffusion of knowledge and practices. Broad Lines –Public outreach initiatives to stimulate interest in research careers, especially amongst young people; –Promotion activities to raise the global profile, visibility and awareness of the MSCA; –Diffusion and clustering of knowledge through cross-project collaboration and other networking activities such as an alumni service.



3.RESEARCH INFRASTRUCTURES 3.1.Rationale State of the art research infrastructures provide key services to research and innovation communities, playing an essential role in extending the frontiers of knowledge. Supporting research infrastructures at the EU level helps to mitigate what in many cases is the reality of scattered national research infrastructures and pockets of scientific excellence, as well as tackling the low circulation of knowledge across silos. The overall aim is to endow Europe with world-class sustainable research infrastructures open and accessible to all researchers in Europe and beyond, which fully exploit their potential for scientific advance and innovation. Key objectives are to reduce the fragmentation of the research and innovation ecosystem, avoiding duplication of effort, and better coordinate the development and use of research infrastructures. It is crucial to support open access to research infrastructures for all European researchers as well as, through the European Open Science Cloud (hereafter 'EOSC'), increased access to digital research resources, specifically tackling the currently sub-optimal embracement of open science and open data practises. Equally, the EU needs to tackle the rapid increase of global competition for talent by attracting third country researchers to work with European world-class research infrastructures. Increasing the competitiveness of European industry is also a major objective, supporting key technologies and services relevant for research infrastructures and their users, thus improving the conditions for supply of innovative solutions. Past framework programmes have made a significant contribution towards the more efficient and effective use of national infrastructures as well as developed with the European Strategy Forum on Research Infrastructures (ESFRI) a coherent and strategy-led approach to policy making on pan-European research infrastructures. This strategic approach has generated clear advantages, including reducing duplication of effort with more efficient overall use of resources, as well as standardising processes and procedures. EU supported activity will provide added value through: consolidating and optimised existing research infrastructures alongside efforts to develop new infrastructures; establishing the European Open Science Cloud (EOSC) as an effective scalable and sustainable environment for data-driven research; the interconnection of national and regional research and education networks, enhancing and securing high-capacity network infrastructure for massive amounts of data and access to digital resources across borders and domain boundaries; overcoming barriers preventing the best research teams from accessing the best research infrastructures services in the EU; fostering the innovation potential of research infrastructures, focused on technology development and co-innovation as well as increased use of research infrastructures by industry. And the international dimension of EU research infrastructures must be reinforced, fostering stronger cooperation with international counterparts and international participation in European research infrastructures for mutual benefit. Activities will contribute to different Sustainable Development Goals (SDGs) such as: SDG 3 – Good Health and Well-Being for People; SDG 7 – Affordable and Clean Energy; SDG 9 – Industry Innovation and Infrastructure; SDG 13 – Climate Action. 3.2.Areas of intervention 3.2.1.Consolidating the Landscape of European Research Infrastructures The establishment, operation and long-term sustainability of research infrastructures identified by ESFRI is essential for the EU to ensure a leading position in frontier research, the creation and use of knowledge and the competitiveness of its industries. The European Open Science Cloud (EOSC) should become an effective and comprehensive delivery channel for research infrastructures services and should provide Europe's research communities with the next generation of data services for harvesting, storing, processing (e.g. analytics, simulation, visualisation services) and sharing big science data. The EOSC should also provide researchers in Europe with access to the majority of data generated and collected by research infrastructures as well as to HPC and exascale resources deployed under the European Data Infrastructure (EDI).

The pan-European research and education network will link together and enable remote access to research infrastructures and research resources, by providing interconnectivity between universities, research institutes and research and innovation communities at EU level as well as international connections to other partner networks worldwide. Broad Lines –The life-cycle of pan European research infrastructures through the design of new research infrastructures; their preparatory and implementation phase, their early-phase operation in complementarity with other funding sources, as well as the consolidation and optimisation of the research infrastructure ecosystem by monitoring the ESFRI landmarks and facilitating service agreements, evolutions, mergers or decommissioning of pan-European research infrastructures; –The European Open Science Cloud, including: scalability and sustainability of the access channel; effective federation of European, national, regional and institutional resources; its technical and policy evolution to cope with new research needs and requirements (e.g. usage of sensitive data sets, privacy by design); data inter-operability and compliance with the FAIR principles; and a wide user base; –The pan-European research and education network underpinning the EOSC and EDI as well as enabling the delivery of HPC/data services in a cloud based environment capable of coping with extreme large data sets and computational processes. 3.2.2.Opening, Integrating and Interconnecting Research Infrastructures The research landscape will be significantly enhanced through ensuring openness to key international, national and regional research infrastructures for all EU researchers and integrating their services when necessary so as to harmonise access conditions, improve and enlarge service provision and encourage common development strategy of high tech components and advanced services through innovation actions. Broad Lines –Networks that bring together national and regional funders of research infrastructures for the co-funding of trans-national access of researchers; –Networks of pan EU, national and regional research infrastructures addressing global challenges for the provision of access to researchers as well as for the harmonisation and improvement of the infrastructures' services; –Integrated networks of research infrastructures for development and implementation of a common strategy/roadmap for technological development required to improve their services through partnership with industry; as well as high-tech components in areas such as scientific instrumentation; and for fostering the use of research infrastructures by industry, e.g. as experimental test facilities. 3.2.3.Reinforcing European Research Infrastructure policy and International Cooperation Support is needed so that policy makers, funding bodies or advisory groups such as ESFRI are well-aligned towards developing and implementing a coherent and long-term EU strategy on research infrastructures. Similarly, support to strategic international cooperation will strengthen of the position of European research infrastructures at international level, ensuring their global networking and interoperability and reach. Broad Lines –Survey, monitoring and assessment of research infrastructures at EU level, as well as policy studies, communication and training actions, international cooperation actions for research infrastructures, and specific activities of relevant policy and advisory bodies.

4. PILLAR II

GLOBAL CHALLENGES AND INDUSTRIAL COMPETITIVENESS Many of the challenges which confront the EU are also global challenges. The scale and complexity of the problems are vast, and need to be matched by the appropriate money, resources and effort in order to find solutions. These are precisely the areas where the EU must work together; smart, flexible and joined-up for the benefit and well-being of our citizens. Greater impact can be obtained through aligning actions with other nations and regions of the world within an unprecedented international cooperation along the lines indicated by the Sustainable Development Goals and the Paris climate agreement. Based on mutual benefit, partners from across the world will be invited to join EU efforts as an integral part of research and innovation for sustainability. Research and innovation are key drivers of sustainable growth and industrial competitiveness, and they will contribute to finding solutions to today’s problems, to reverse as quickly as possible, the negative and dangerous trend that currently links economic development, the use of natural resources and social issues, and turn it into new business opportunities. The EU will benefit as user and producer of technologies and industries showcasing how modern industrialised, sustainable inclusive, open and democratic society and economy can function and develop. The growing economic-environmental-social examples of the sustainable industrial economy of the future will be fostered and boosted, be they for: health and well-being for all; or resilient inclusive and secure societies; or available clean energy and mobility; or a digitised economy and society; or a transdisciplinary and creative industry; or space marine or land-based solutions; or food and nutrition solutions; sustainable use of natural resources climate protection and adaptation, all generating wealth in Europe and offering higher quality jobs. Industrial transformation will be crucial. Research and innovation under this pillar of Horizon Europe is grouped into integrated clusters of activities. Rather than addressing sectors, the investments aim at systemic changes for our society and economy along a sustainability vector. These will only be achieved if all actors, both private and public, engage in co-designing and co-creating research and innovation; bringing together end-users, scientists, technologists, producers, innovators, businesses, educators, citizens and civil society organisations. Therefore, none of the thematic clusters is intended for only one set of actors. Clusters will develop and apply digital, key enabling and emerging technologies as part of a common strategy to promote the EU's industrial leadership. Where appropriate this will use EU space-enabled data and services. There will be support to bring technology from lab to market and to develop applications including pilot lines and demonstrators, measures to stimulate market uptake and to boost private sector commitment. Synergies with other programmes will be maximised. The clusters will boost the quick introduction of first-of-its-kind innovation in the EU through a broad range of embedded activities, including communication, dissemination and exploitation, standardisation as well as support to non-technological innovation and innovative delivery mechanisms, helping create innovation friendly societal, regulatory and market conditions such as the innovation deals. Pipelines of innovative solutions originating from research and innovation actions will be established and targeted to public and private investors as well as other relevant EU and national programmes.