Proposal for a Decision of the European Parliament and of the Council establishing a Competitiveness and Innovation Framework Programme (2007-2013) {SEC(2005) 433}
Date: 2005-04-06
Institutions: European Commission
Subjects: EU programme, competitiveness, innovation, small and medium-sized enterprises

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 6.4.2005 
COM(2005) 121 final 

2005/0050 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing a Competitiveness and Innovation Framework Programme 
(2007-2013) 

(presented by the Commission) 

{SEC(2005) 433} 

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EXPLANATORY MEMORANDUM 

1. 

INTRODUCTION 

The  Lisbon  European  Council  of  March 2000  set  the  objective  of  making  Europe  the  most 
competitive  and  dynamic  knowledge-based  economy  in  the  world.  It  emphasized  the 
importance  of  creating  a  climate  favourable  to  SMEs,  and  considered  it  important  to 
disseminate  best  practice  and  ensure  greater  convergence  between  Member  States.  The 
Gothenburg  European  Council  of  June 2001  defined  the  EU  Strategy  for  Sustainable 
Development to ensure that economic growth, social inclusion and environmental protection 
go  hand  in  hand.  Enterprises’  production  patterns  play  an  important  role  in  sustainable 
development. 

In  its  Communication  on  a  renewed  Lisbon  strategy  of  February 2005,  the  Commission 
proposes  to  focus  efforts  on  “delivering  stronger  and  lasting  growth  and  creating  more  and 
better jobs”1. This calls for actions to deliver growth and competitiveness and to make Europe 
a more attractive place to invest and work. It emphasizes the need to stimulate entrepreneurial 
initiative,  attract  sufficient  risk  capital  to  start  up  businesses,  and  sustain  a  strong  European 
industrial  base  whilst  facilitating  innovation  and  notably  eco-innovation,  more  and  better 
investment in education and training, the uptake of ICT and the sustainable use of resources. 

The Lisbon process has placed competitiveness firmly at the centre of political attention. In 
recent years concern to achieve greater coherence and synergy in the Community programmes 
and  instruments  that  are  relevant  to  meeting  the  Lisbon  goals  has  grown.  The  2003  Spring 
Council  called  for  “an  integrated  strategy  for  competitiveness  to  be  developed  by  the 
Commission,  reviewing  on  a  regular  basis  both  horizontal  and  sectoral  issues”2.  In  its 
response3, the Commission presented a preliminary analysis of relevant fields of activity, but 
expressed its intension to put forward proposals in the framework of the preparatory work for 
the  next  budgetary  period,  which  define  the  political  project  for  the  enlarged  Union  from 
2007-2013. The Commission therefore suggested in July 2004, in the context of its proposals 
for the next budgetary period, a framework programme for competitiveness and innovation4. 

2. 

THE COMPETITIVENESS AND INNOVATION FRAMEWORK PROGRAMME 

The Competitiveness and Innovation Framework Programme (CIP) will bring together into a 
common  framework  specific  Community  support  programmes  and  relevant  parts  of  other 
Community  programmes  in  fields  critical  to  boosting  European  productivity,  innovation 
capacity  and  sustainable  growth,  whilst  simultaneously  addressing  complementary 
environmental  concerns.  This  concerns  the  following  Community  measures  presently  in 
place:  Council  Decision 96/413/EC5  on  measures  to  strengthen  the  competitiveness  of 

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COM(2005) 24, 2.2.2005. 
Presidency  Conclusions  of  the  Brussels  European  Council  of  20  &  21st  March  2003,  paragraph  21, 
8410/03 of 5 May 2003. 
Some  key  issues  in  Europe's  competitiveness  -  towards  an  integrated  approach,  COM(2003)  704, 
21.11.2003. 
Communication on the Financial Perspectives 2007-2013 - COM(2004) 487, 14.7.2004. 
OJ L 167, 6.7.1996, p. 55. 

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European industry; Council Decision 2000/819/EC6 on a multiannual programme (MAP) for 
enterprise  and  entrepreneurship,  and  in  particular  for  small  and  medium-sized  enterprises 
(SMEs);  Regulation  (EC)  No 1655/20007  of  the  European  Parliament  and  of  the  Council 
concerning the Financial Instrument for the Environment (LIFE); Decision No 2256/2003/EC 
of the Parliament and of the Council on a multiannual programme for the monitoring of the 
eEurope 2005 action plan, dissemination of good practices and the improvement of network 
and  information  security;  Council  Decision 2001/48/EC  on  a  multiannual  Community 
programme  to  stimulate  the  development  and  use  of  European  digital  content  on  the  global 
networks  and  to  promote  linguistic  diversity  in  the  information  society;  Council  Regulation 
(EC) No 2236/95 on general rules for the granting of Community financial aid in the field of 
trans-European  networks,  Decision No  1336/97/EC8  of  the  European  Parliament  and  of  the 
Council  on  a  series  of  guidelines  for  trans-European  telecommunications  networks;  and 
Decision No 1230/2003/EC9 of the European Parliament and of the Council on a multiannual 
programme for action in the field of energy: ‘Intelligent Energy – Europe’ to support energy 
efficiency and new and renewable energy sources in all sectors including transport. 

the  overarching  objectives  of  enhancing  competitiveness  and 

The  CIP  will  provide  a  significant  and  coherent  legal  basis  for  Community  actions  which 
share 
innovation, 
complementing  the  research-oriented  activities  promoted  by  the  Community  Framework 
Programme on Research and Technological Development and Demonstration. As such it will 
be more visible and comprehensible for the public. However, the objectives and target groups 
of the CIP are diverse and the structure of the CIP therefore recognises the need to maintain 
the  visibility  of  its  individual  components.  The  CIP  will  therefore  be  composed  of  specific 
sub-programmes:  the  Entrepreneurship  and  Innovation  Programme,  the  ICT  Policy  Support 
Programme, and the Intelligent Energy- Europe Programme. 

The CIP will be open for participation to the members of the EEA, candidate countries and 
countries of the Western Balkans. Other third countries, in particular neighbouring countries 
or countries interested in co-operating with the Community in relation to innovation activities 
can  participate  in  the  framework  programme  if  bilateral  agreements  with  them  provide  for 
this. 

The Entrepreneurship and Innovation Programme 

The  2004  Spring  European  Council  emphasized  that  “competitiveness,  innovation,  and  the 
promotion of an entrepreneurial culture are defining conditions for growth – essential to the 
economy as a whole – and especially important for small and medium-sized enterprises”10. It 
also stressed that “Growth, to be sustainable, must be environmentally sound. Growth should 
be  decoupled  from  negative  environmental  impacts.  Clean  technologies  are  vital  in  order  to 
fully exploit synergies between enterprise and the environment”11. 

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OJ  L  333,  29.12.2000,  p.  84.  Decision  as  last  amended  by  Decision  No  593/2004/EC  (OJ  L  268, 
16.8.2004, p.3). 
OJ  L  192,  28.7.2000,  p.1.  Regulation  as  last  amended by  Regulation (EC)  No 1682/2004  (OJ  L  308, 
5.10.2004, p. 1). 
OJ  L  183,  11.07.1997,  p.  12.  Decision  as  last  amended  by  Decision  No  1376/2002/EC  (OJ  L  200, 
30.7.2002, p. 1). 
OJ L 176, 15.7.2003, p. 29.  
Presidency Conclusions of the Brussels European Council of 25 & 26 March 2004, Chapter III, Section 
(ii) “Competitiveness and Innovation”, paragraphs 17 & 28. 9048/04 of 19 May 2004. 
Idem, Chapter III, section (iv) « Environmentally Sustainable Growth », paragraphs 30 and 33. 

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The  Treaty  provides  the  basis  for  the  Community  and  the  Member  States  to  ensure  that  the 
conditions  necessary  for  the  competitiveness  of  the  Community's  enterprises  exist12.  Such 
activities  include  facilitating  adjustment  to  structural  changes,  encouraging  a  favourable 
environment  for  entrepreneurship  and  SMEs,  encouraging  an  environment  favourable  to 
enterprise  cooperation,  and  fostering  better  exploitation  of  the  innovative  potential  of 
enterprises. 

The Community supports at present enterprise and entrepreneurship policy development, and 
business support services and Community financial instruments for SMEs under the MAP. In 
addition  the  Commission  carries  out  analysis  and  actions  to  define  and  promote 
competitiveness  strategies  for  European  industry  and  service  sectors,  including  sectoral 
determinants  of  industrial  competitiveness.  The  sixth  framework  programme  for  research, 
technological development and demonstration supports a range of actions that are necessary 
to strengthen Europe’s technological capability and improve its innovation performance13. The 
LIFE Programme provides support to innovative techniques and methods in the environment 
field. A major part of this support is granted to SMEs, for the demonstration of a variety of 
clean technologies in key areas such as water quality and waste recycling. 

The  Entrepreneurship  and  Innovation  Programme  will  bring 
together  activities  on 
entrepreneurship, SMEs, industrial competitiveness and innovation. It will specifically target 
small  and  medium  sized  enterprises14,  from  hi-tech  “gazelles”  to  the  traditional  micro-  and 
family  firms  which  make  up  the  large  majority  of  enterprises  in  Europe.  It  will  cover 
industrial  and  services  sectors.  It  will  also  encourage  entrepreneurship  and  potential 
entrepreneurs both generally and in particular target groups, paying special attention to gender 
issues. It will contribute to encouraging young people to develop an entrepreneurial spirit and 
promoting  the  emergence  of  young  entrepreneurs  as  promoted  by  the  European  Pact  for 
Youth15. It will be an important, but not the only instrument for implementing the key actions 
in the strategic policy areas set out in the “European Agenda for Entrepreneurship”16 and for 
providing  Community  level  support  for  Member  States’  actions  in  pursuit  of  the  European 
Charter for Small Enterprises17. Although specifically addressed by the Entrepreneurship and 
Innovation Programme, SME interests will be reflected throughout the entire CIP. 

The  Entrepreneurship  and  Innovation  Programme  will  also  be  one  of  the  instruments 
supporting the implementation of the Environmental Technologies Action Plan18, which aims 
at  removing  the  obstacles  so  as  to  tap  the  full  potential  of  environmental  technologies  to 
protect the environment while contributing to competitiveness and economic growth, ensuring 
that  over  the  coming  years  the  European  Union  takes  a  leading  role  in  developing  and 
applying  environmental  technologies,  and  mobilising  all  stakeholders  in  support  of  these 
objectives. The 2004 Spring European Council welcomed the Action Plan and called for its 
implementation.  It  invited  in  particular  the  Commission  and  the  European  Investment  Bank 
Group (EIB) to explore the mobilisation of the range of financial instruments to promote such 

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Article 157. 
Decision No 1513/2002/EC of the European Parliament and of the Council. 
As defined in the Commission recommendation of 6 May 2003 - OJ L 124, 20.5.2003, pp. 36-41. 
European Council conclusions of 22-23 March 2005, Annex 1, European Pact for Youth. 
COM(2004) 70, 11.2.2004. 
Adopted  by  the  Council  on  13  June  2000  and  approved  by  the  European  Council  on  19  and  20  June 
2000. 
COM(2004) 38. 

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technologies.  The  Commission’s  communication  to  the  2005  Spring  European  Council19 
further  emphasised  the  need  to  strongly  promote  eco-innovation,  and  stated  that  the 
Commission will step up its promotion of environmental technologies. 

Innovation  is  a  business  process  connected  with  exploiting  market  opportunities  for  new 
products,  services  and  business  processes.  Indeed,  a  strong  competitive  pressure  is 
indispensable  to  provide  powerful  incentives  for  companies  to  continuously  engage  in 
innovation and RTD. This is closely related to the willingness to take risks and test new ideas 
on the market, and the availability of risk capital is crucial for it. Insufficient innovation is a 
major  cause  of  Europe’s  disappointing  growth  performance.  The  Entrepreneurship  and 
Innovation Programme will therefore support horizontal activities to improve, encourage and 
promote  innovation  (including  eco-innovation)  in  enterprises.  This  will  include  fostering 
sector-specific innovation, clusters, public-private innovation partnerships, and the application 
of  innovation  management.  It  will  also  contribute  to  the  provision  of  innovation  support 
services at regional level, in particular for trans-national knowledge and technology transfer 
and management of intellectual and industrial property. 

The  Competitiveness  Council  of  13 May 2003  called  on  Member  States  to  define  policy 
objectives in the field of innovation, reflecting the specific characteristics of their respective 
innovation  systems.  The  Entrepreneurship  and  Innovation  Programme  will  support  the 
development  of  innovation  governance  and  culture  through  analysis  and  monitoring  of 
innovation  performance,  and  the  development  and  coordination  of  innovation  policy.  The 
Programme  will  support  mutual  learning  for  excellence  in  national  and  regional  innovation 
policy-making,  it  will  encourage  cooperation  between  public  and  private  innovation  actors, 
promote awareness of innovation and disseminate good innovation practices. 

Poor  access  to  appropriate  forms  of  finance  is  frequently  quoted  as  a  main  barrier  to 
entrepreneurship  and  enterprise  innovation20.  This  problem  may  be  exacerbated  by  new 
accounting  standards  which  will  make  banks  more  sensitive  to  risk  and  lead  to  a  rating 
culture.  The  Entrepreneurship  and  Innovation  Programme  will  address  persistent  recognised 
market  gaps  leading  to  poor  access  to  equity,  venture  capital  and  loans  for  SMEs,  through 
Community  Financial  Instruments  operated  on  behalf  of  the  Commission  by  the  European 
Investment Fund (EIF), the Community’s specialised institution for providing venture capital 
and guarantee instruments for SMEs. Under the MAP, independent evaluations identified the 
market-based  approach  and  the  implementation  via  the  EIF  of  these  instruments  as  a  best 
practice21. They will therefore be continued and adapted in the new programme. 

The Community Financial Instruments for SMEs will ease the supply of seed and early stage 
capital for innovative start-ups and young companies. The High Growth and Innovative SME 
Facility  (GIF)  will  share  risk  and  reward  with  private  equity  investors  providing  important 
leverage for the supply of equity to innovative companies. The GIF instruments will increase 
the  supply  of  development  equity  for  innovative  SMEs  in  their  early  stages  and  in  the 
expansion phase, leveraging ‘follow-on’ capital to help them bring their products and services 
to market and continue research and development activities. 

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Working together for growth and jobs, a new start for the Lisbon Strategy - COM(2005) 24. 
Flash Eurobarometer No 160 on Attitudes to Entrepreneurship. 
Strategic  Evaluation  of  Financial  Assistance  Schemes  to  SMEs,  Deloitte  &  Touche,  Final  Report, 
December 2003.  

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The SME Guarantee Facility will continue to provide counter or co-guarantees to guarantee 
schemes  operating  in  eligible  countries,  and  direct  guarantees  to  financial  intermediaries.  It 
will  concentrate  on  addressing  market  failures:  (i)  in  the  access  of  SMEs  with  growth 
potential to loans (or loan substitutes such as leasing); (ii) in the provision of microcredit and 
(iii)  in  access  to  equity  or  quasi-equity.  A  (iv)  new  securitisation  window  will  mobilise 
additional  debt  financing  for  SMEs  under  appropriate  risk-sharing  arrangements  with  the 
targeted institutions. 

A Capacity Building Scheme will support the capacity of financial intermediaries to focus on 
additional  investment  and  technology  aspects.  Action  will  also  be  undertaken  to  facilitate 
SME financing in countries where banking intermediation is significantly lower than the EU 
average. 

European business and innovation support services play an important role in ensuring SMEs’ 
access to information relating to the functioning and opportunities of the internal market for 
goods  and  services  as  well  as  in  the  transnational  transfer  of  innovation,  knowledge  and 
technology.  These  services  can  play  a  cross-cutting  role  particularly  in  the  promotion  and 
dissemination  of  information  on  and  results  of  Community  programmes  and  in  providing 
interaction between the Commission and SMEs. 

The  Entrepreneurship  and  Innovation  Programme  will  also  support  positive  policy 
development through benchmarking, studies and exchanges of good practice between national 
and regional authorities and other experts in the enterprise, entrepreneurship, innovation and 
competitiveness  policy  fields.  It  will  work  with  Member  States  and  other  participating 
countries  to  improve  the  regulatory  and  administrative  environment  for  business.  Twinning 
actions  between  authorities  at  national  and  regional  level  may  be  initiated  as  a  means  of 
following-up on recommendations of such policy development activity. 

The ICT Policy Support Programme 

Actions for promoting the adoption of Information and Communication Technologies (ICTs) 
in businesses, administrations and public sector services have mostly been carried out in the 
context  of  the  eEurope  initiative  fostering  coordination  of  Member  States  Actions22.  These 
include  Community  funding  for  the  eTEN  (TEN  Telecom)  scheme23,  which  supports  the 
validation  and  deployment  of  trans-European  ICT-based  services.  It  also  comprises  the 
eContent  programme24,  which  aims  at  fostering  the  development  of  innovative  European 
digital  content  and  MODINIS,  which  provides  direct  support  to  benchmarking  activities, 
studies, forums and promotion and awareness actions that help implement eEurope. 

The  uptake  of  ICTs  by  both  the  private  and  public  sector  is  a  key  element  in  improving 
innovation performance and competitiveness. ICTs provide the backbone for the knowledge 
economy.  They  are  also  a  catalyst  for  organisational  change  and  innovation.  In  addition  to 
being a high growth sector, ICTs represent a substantial and increasing part of the added value 
of  all  products  and  services.  In  the  EU  for  instance,  of  around  1.4 %  annual  productivity 
growth between 1995 and 2000, it is estimated that around 0.7 % was due to ICTs. 

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Decision No 2256/2003/EC of the Parliament and of the Council. 
Decision No 1336/97/EC of the European Parliament and of the Council. 
Council Decision 2001/48/EC; this will be succeeded in 2005 by the eContentplus Programme. 

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ICTs help meet the growing demands for better healthcare (eHealth), for efficient education 
and  lifelong  learning  (eLearning),  for  better  quality  of  life  in  ageing,  for  more  security  and 
inclusion as well as better participation. ICTs enable public services and new digital content 
to  be  delivered  more  efficiently  and  in  a  more  targeted,  customised  and  accessible  manner. 
However, investments in ICTs and the use of online services in Europe are lower and slower 
than our major competitors, especially in service sectors. Between 1995 and 2001, investment 
in IT capital goods ran at 1.6 % of GDP less than the US25. Although primary responsibility 
for  investment  programmes  rests  with  business  and  national  administrations;  there  is  a 
in  December 2004  for  a 
Community  role.  The  Telecom  Council 
comprehensive policy on ICT. This was confirmed by the European Council of March 2005 
which asked the Commission to prepare a new information society initiative. 

therefore  called 

The  specific  ICT  Policy  Support  Programme  will  be  one  of  the  means  to  support  actions 
identified in the new initiative called “i2010: European Information Society” as announced in 
the Communication from the Commission on a renewed Lisbon strategy of February 200526. It 
will  stimulate  the  wider  uptake  of  ICT  by  citizens,  businesses  and  governments  and  aim  at 
intensifying the public investment in ICT. The programme will build on the lessons learned 
from  the  eTen,  eContent  and  MODINIS  programmes  whilst  improving  synergies  between 
them and improving their impact. The programme will support actions to develop the single 
European  information  space  and  to  strengthen  the  internal  market  for  information  products 
and services. It will aim to stimulate innovation through a wider adoption of and investment 
in ICTs to develop an inclusive information society, more efficient and effective services in 
areas of public interest and to improve quality of life. It will also address the fragmentation of 
the  European  digital  content  market,  supporting  production  and  distribution  of  online 
European  content  and  promoting  Europe’s  cultural  and  linguisticdiversities,  and  will  follow 
on  from  2008  from  the  eContent+  programme  recently  adopted  by  the  Council  and  the 
European Parliament. 

Although  most  financial  support  for  the  deployment  and  best  use  of  ICT  comes  from  the 
private  sector  and  the  Member  States,  Community  support  enables,  in  particular,  the 
development  of  common  approaches  and  coordinated  actions,  the  sharing  of  good  practices 
and the deployment of interoperable solutions across the Union. It also plays also a key role in 
promoting  a  multilingual  environment  respectful  of  cultural  diversity.  Community  action  is 
also  essential  to  ensure  proper  articulation  with  other  EU  policies  including  the  regulatory 
frameworks  for  eCommunications  and  Television  Without  Frontiers  as  well  as  the  internal 
market,  employment,  education  and  youth,  sustainable  development,  security  and  trade 
policy. 

The Intelligent Energy – Europe Programme 

The  Intelligent  Energy  –  Europe  programme  (2003-2006)27  will  be  continued  and  enlarged 
under  the  CIP.  Based  on  Article 175(1)  of  the  Treaty,  it  is  the  Intelligent  Energy  –  Europe 
Programme’s  objective  to  support  sustainable  development  as  it  relates  to  energy  and  to 
contribute  to  the  achievement  of  the  general  goals  of  environmental  protection,  security  of 
supply and competitiveness. 

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OECD (2003): ICT and economic growth. 
COM(2005) 24, 2.2.2005. 
Decision No 1230/2003/EC of the European Parliament and of the Council of 26 June 2003 - OJ L 176, 
15.7.2003, p. 29. 

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Nearly  94 %  of  greenhouse  gas  emissions  are  attributable  to  energy  consumption,  and 
transport  is  responsible  for  90 %  of  the  increases  in  CO2  emissions.  Energy  efficiency  and 
renewable  energy  sources  are  essential  to  meeting  Kyoto  requirements  and  to  reducing 
Europe’s  growing  dependence  on  energy  imports,  which  could  reach  almost  70 %  in  2030. 
The  Union  has  been  working  towards  the  ambitious  target  of  a  12 %  share  of  renewable 
energy in gross inland consumption by 201028 and to further reduce final energy consumption, 
but these targets will not be reached unless considerable extra action is taken at Member State 
and  Community  levels.  The  Union  has  set  itself  clear  quantitative  targets  for  the  uptake  of 
intelligent  energy  to  be  achieved  by  2010.  These  include  doubling  the  share  of  renewable 
energy  sources  in  EU  energy  consumption  to  reach  12 %,  increasing  to  21 %  the  share  of 
electricity generated by renewable sources, and increasing the share of bio-fuels up to 5.75 % 
in all petrol and diesel used for transport. A number of more qualitative targets are also to be 
achieved  such  as  increased  sales  of  energy  efficient  products/appliances  and  expand  high-
efficient cogeneration. Two important proposals have been made for Member States to extra 
reduce the amount of energy for final consumption by 1 % per year and for reduced energy 
consumption  of  energy-using  products  and  a  number  of  products  complying  to  eco-design 
requirements. 

In  parallel  to  these  legislative  measures,  the  Community  has  been  running  programmes  to 
help  the  implementation  of  Community  legislation.  The  Intelligent  Energy  –  Europe 
programme is the Community’s non-technological programme in the field of energy focusing 
on  the  removal  of  non-technical  barriers,  the  creation  of  market  opportunities  and  raising 
awareness. 

An ex-ante evaluation for the “Intelligent Energy – Europe” successor programme found that 
the  current  programme  is  cost  effective  and  that  the  new  programme  should  provide 
continuity. 

The Intelligent Energy – Europe Programme under the CIP aims therefore to accelerate action 
in relation to the agreed Community strategy and targets in the field of sustainable energy, in 
particular:  to  facilitate  the  development  and  implementation  of  the  energy  regulatory 
framework; to increase the level of investment in new and best performing technologies and 
to  increase  the  uptake  and  demand  for  energy  efficiency,  renewable  energy  sources  and 
energy  diversification,  including  in  transport,  through  awareness  and  knowledge  raising 
among  key  actors  in  the  EU.  The  programme  will  help  to  bridge  the  gap  between  the 
successful  demonstration  of  innovative  technologies  and  their  effective  introduction  to  the 
market to achieve mass deployment. It will help to strengthen the administrative capacity both 
to  develop  strategies  and  policies  and  to  implement  existing  regulations,  particularly  with 
regard  to  the  new  Member  States.  The  programme  will  also  aim  at  sustainable  economic 
growth with job creation, greater social cohesion and higher quality of life, while preventing 
waste of natural resources. 

The  programme  will  be  structured  in  three  specific  fields:  (i)  energy  efficiency  and  the 
rational  use  of  energy,  in  particular  in  the  building  and  industry  sectors  (‘SAVE’);  (ii)  new 
and renewable energy sources for centralised and decentralised production of electricity and 
heat and their integration into the local environment and the energy systems (‘ALTENER’); 
(iii) energy aspects of transport, the diversification of fuels, such as through new developing 
and  renewable  energy  sources,  and  renewable  fuels  and  energy  efficiency  in  transport 

28 

Communication from the Commission “The share of renewable energy in the EU” - COM(2004) 366, 
26.5.2004. 

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(‘STEER’).  Moreover  the  Programme  will  provide  funding  for  horizontal  initiatives 
integrating energy efficiency and renewable energy sources in several sectors of the economy 
and/or combining various instruments, tools and actors within the same action or project. 

The  international  dimension  of  the  Intelligent  Energy  Programme  (‘COOPENER’)  will  be 
continued  in  the  frame  of  the  new  external  assistance  instruments  proposed  by  the 
Commission in September 200429. 

Two main sorts of projects will be supported: on the one hand promotion and dissemination 
projects, which are supposed to promote favourable general conditions for sustainable energy 
technologies  including  administrative  structures,  general  awareness,  horizontal  and  vertical 
cooperation and networking as well as better implementation of the regulatory framework; on 
the other hand replication projects fostering systematically the deployment of new sustainable 
energy technologies. 

Regarding  the  implementation  and  management  of  the  programme,  the  Commission  is 
considering extending the term of the newly created ‘Intelligent Energy Executive Agency’, 
and delegating to this body those programme management tasks that do not involve political 
choices. 

3. 

MANAGEMENT  OF  THE  NEW  COMPETITIVENESS  AND  INNOVATION  FRAMEWORK 
PROGRAMME 

Although  the  component  programmes  of  the  CIP  will  be  served  by  their  own  management 
committees  and  establish  their  own  work  programmes,  the  CIP  will  provide  a  coherent 
approach  to  overarching  objectives.  Implementation  instruments  will  often  serve  more  than 
one  programme,  making  them  clearer  for  users.  The  CIP  will  therefore  be  simpler  than  the 
current arrangements where multiple funding schemes and instruments coexist. 

For example: 

– 

– 

29 

30 

Community  financial  instruments  will  support  SMEs  in  traditional  sectors,  and 
those investing in ICTs, innovation and environmental technologies. 

Business and innovation support services will play an important role in ensuring 
SMEs’  access  to  information  relating  to  the  functioning  and  opportunities  of  the 
internal market, providing feedback from SMEs for policy development and impact 
assessments,  and  helping  enterprises  co-operate  across  borders.  But  they  will  also 
disseminate 
innovation-related  policies, 
legislation, and support programmes, promote the exploitation of results of research 
programmes and provide brokerage services for technology and knowledge transfer, 
and for partnership building between innovation actors30. 

information  and  raise  awareness  of 

Communication on the instruments for external assistance under the Future Financial Perspective 2007-
2013  -  COM(2004)  626;  proposal  for  a  Regulation  establishing  an  instrument  for  Pre-accession 
Assistance  (IPA)  -  COM(2004)  627;  proposal  for  a  Regulation  laying  down  general  provisions 
establishing a European Neighbourhood and Partnership instrument - COM(2004) 628; proposal for a 
Regulation establishing a financial instrument for development cooperation and economic cooperation - 
COM(2004) 629. 
Including CORDIS innovation services.  

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– 

Networking  between  stakeholders  will  be  central  to  the  programme.  It  facilitates 
the flow of knowledge and ideas, which is in itself a crucial condition for innovation. 

Certain tasks relating to the specific programmes are planned to be indirectly managed by the 
Commission via the use of new and/or adaptation of existing executive agencies. This applies 
in particular to projects in the field of energy which will be managed and implemented by the 
extended  ‘Intelligent  Energy  Executive  Agency’.  The  Community  financial  instruments  for 
SMEs  will  mainly  be  managed  by  the  EIF.  Cooperation  with  international  financial 
institutions  will  involve  international  development  banks  such  as  the  European  Bank  for 
Reconstruction and Development (EBRD). 

4. 

CONSISTENCY WITH OTHER POLICIES 

The CIP, the Structural Funds and Rural Development 

The regional dimension  is  essential  to  improving European competitiveness and  innovation. 
The Commission’s proposed new cohesion policy addresses persistent regional disparities in 
these  fields  by  making  competitiveness  and  innovation  an  explicit  and  central  basis  for 
Structural  Fund  intervention  in  the  “Convergence”  and  “Regional  competitiveness  and 
employment”  Objectives.  In  addition,  the  Commission  will  propose  Community  Strategic 
Guidelines  on  cohesion,  which  will  set  out  how  EU-level  priorities  – 
including 
competitiveness and innovation – should be taken into account by the national and regional 
authorities responsible for managing structural funds. The Guidelines will be an opportunity 
to strongly encourage managing authorities to pursue investments that are complementary to 
EU  competitiveness  and  innovation  policy.  If  these  objectives  are  to  be  met  efficiently  and 
effectively, interventions must be based on an understanding of SME needs, effective policies 
for  boosting  enterprise  and  entrepreneurship,  innovation  and  ICT  use,  investments  in 
environmental technologies, energy use, good practice in debt and equity instruments, and in 
technology transfer. 

Similar  considerations  hold  for  many  interventions  of  the  new  Rural  Development  Policy. 
Following its core objectives – improved competitiveness of the agro-food chain, sustainable 
land  management,  economic  diversification  and  local  development  –  it  contributes  to  rural 
areas  throughout  the  EU  to  sustainable  development,  growth  and  employment.  A  particular 
accent is put on innovation. Most enterprises in rural areas are SMEs, with a high proportion 
of micro and small enterprises for which access to innovation and ICT is vital. 

Regions eligible for the convergence objective of the Structural Funds are encouraged to take 
part in exchanges organized in the context of the CIP, so that their specific situations are taken 
into account in the identification of good practices adapted to their needs. 

Where the CIP identifies and promotes best practice and excellence in these fields, cohesion 
funds  as  well  as  the  new  Rural  Development  Fund  should  ideally  be  used  by  national  and 
regional authorities as the main instrument to bring those who are lagging behind up to these 
levels of excellence; boosting regional competitiveness and innovation and thereby reducing 
disparities. Proposals for regional funding will be developed by regional bodies to meet their 
own  needs  and  ambitions  (as  befits  the  reinforced  principles  of  subsidiarity  and 
proportionality).  Therefore  care  must  be  taken  not  to  compromise  the  cohesion  principle  or 
conflict with the bottom-up governance structure of the Structural Funds. However, Member 
States  and  regions  should  be  actively  encouraged  by  the  CIP  to  ensure  that  ERDF  and 

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10 

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EARDF  supported  measures  follow  best  practice  examples  in  the  field,  as  developed  and 
identified in the context of CIP actions, in particular through networking activities. 

The CIP and FP7-RTD 

Competitiveness  and  Innovation  in  Europe  will  be  supported  not  just  by  the  7th  Framework 
Programme  for  Research,  Technological  Development  and  Demonstration  (FP7-RTD),  as 
well  as  by  the  CIP.  These  programmes  will  be  complementary  and  mutually  reinforcing  in 
their support of the Lisbon goals. 

The CIP will address both technological as well as non-technological aspects of innovation. 
With respect to technological innovation, it will focus on the downstream parts of the research 
and  innovation  process.  More  specifically,  it  will  promote  innovation  support  services  for 
technology  transfer  and  use,  projects  for  the  implementation  and  market  take-up  of  existing 
new  technologies  in  fields  like  ICT,  energy  and  environmental  protection31,  as  well  as  the 
development and coordination of national and regional innovation programmes and policies. 
It  will  also  improve  the  availability  and  access  of  innovative  SMEs  to  external  sources  of 
financing, including for R&D and innovation activities and promote the participation of SMEs 
in the FP7-RTD. 

For its part, the FP7-RTD will continue and strengthen support of trans-national cooperation 
in  research,  technological  development  and  demonstration,  in  particular  between  enterprises 
and  public  research  organisations,  of  specific  RTD  schemes  in  favour  of  SMEs,  and  of 
researcher’s  mobility  between  firms  and  academia.  In  doing  so,  it  will  focus  more  on  the 
technological  innovation  needs  of  industry  and  introduce  new  actions,  in  the  form  of  joint 
technological  initiatives  in  key  areas  of  industrial  interest.  It  will  also  further  promote  the 
dissemination  and  use  of  research  results  within  projects  and  in  specific  thematic  fields  as 
well the coordination of national research programmes and policies. Support of trans-national 
cooperation  between  research-driven  regional  clusters  will  complement  similar  activities  of 
the CIP focussing on regional innovation actions and policies. 

The CIP and Lifelong Learning 

Education  and  training  are  essential  for  ensuring  that  Europe’s  human  capital  is  kept  up  to 
date  with  the  skills  and  knowledge  necessary  for  innovation.  A  highly  skilled  workforce 
responds better to the quickly changing demands of enterprise and finds it easier to move to 
new  jobs.  Education  and  training  also  contributes  to  the  diffusion  of  knowledge  and  to  the 
process  whereby  organisations  learn  from  their  experiences  and  improve  their  processes, 
products  and  services.  Europe  needs  more  and  better  investment  in  education  and  training, 
and  the  adoption  of  the  proposed  ‘Integrated  Action  Programme  in  the  field  of  Lifelong 
Learning’32  will  help  to  promote  entrepreneurship,  support  continuous  vocational  education 
and training and help organisations to become ‘learning organisations’. 

The European Social Fund (ESF) will also support as a priority lifelong learning systems as 
part  of  its  priority  to  increase  adaptability  of  workers  and  enterprises,  in  particular  by 

31 

32 

One  concrete  example  for  this  is  the  Gallileo  project,  where  innovative  SMEs  could  develop 
applications  offered  by  the  Gallileo  satellite  positioning  system  for  logicistics,  transport,  safety  or 
security purposes. 
COM(2004) 474.  

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11 

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promoting  increased  investment  in  human  resources  by  enterprises,  especially  SMEs,  and 
workers. 

The  CIP,  the  ESF  and  the  Lifelong  Learning  programme,  in  particular  the  actions  under 
Leonardo da Vinci are thus mutually supportive. 

Actions  to  support  digital  literacy  will  take  into  account  the  policy  work  on  basic 
competences being carried out under the auspices of ‘Education and Training 2010’ and the 
support offered for digital literacy under the ‘Lifelong Learning programme’. 

The CIP and Trans-European networks 

It is vital for competitiveness and socio-economic cohesion in European Union that the Trans-
European  Networks  for  Transport,  Energy  and  Telecommunications  be  completed  and  in 
operation.  Access  to  the  networks  is  a  factor  of  key  importance  underpinning  success  for 
SMEs  within  the  single  market,  as  recalled  by  Article 154  of  the  Treaty.  The  CIP  and  the 
policy on Trans-European Networks reinforce each other by helping to foster competitiveness 
for  business:  for  example,  the  Intelligent  Energy  –  Europe  programme  will  support  more 
rational,  efficient,  and  sustainable  patterns  in  energy  use,  by  identifying  and  removing 
administrative, communications, and other non-technological barriers. CIP will thus facilitate 
interconnection with, and access to the Trans-European Energy Network. 

5. 

CONSULTATIONS AND IMPACT ASSESSMENT 

The  Commission’s  proposal  for  CIP  has  undergone  an  impact  assessment  and  public 
consultation. Stakeholders' views on the proposed CIP were collected from December 2004 to 
February 2005  on  the  basis  of  a  consultation  document.  This  focused  on  the  benefits  and 
added value of bringing together the different elements into a single programme, and on how 
the programme will relate to other Community measures on competitiveness and innovation. 
Stakeholder consultations for some of the specific components of the CIP have been carried 
out separately. 

The  idea  of  creating  a  framework  for  actions  to  boost  competitiveness  and  innovation 
received  generally  positive  feed-back,  although  some  feared  that  the  identity,  visibility  and 
political  focus  of  individual  programmes  might  be  weakened.  The  main  objectives  of  the 
programme  were  also  overwhelmingly  supported,  particularly  its  support  for  innovation. 
Respondents  concurred  that  there  was  a  clear  need  for  European  level  intervention  in  these 
areas,  notwithstanding  the  primary  responsibility  of  Member  States.  The  majority  of 
stakeholders  saw  the  proposed  framework  programme  as  an  opportunity  for  making  the 
component programmes of CIP more user-friendly and easily accessible to SMEs. 

The consultation process raised many useful comments and suggestions; these were, however 
more relevant to programming and implementation stages, rather than the legal act and will be 
taken into account at the appropriate time. 

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6. 

SUBSIDIARITY AND PROPORTIONALITY 

In accordance with its legal bases, the programme will address the challenges identified in a 
proportionate way and in accordance with the subsidiarity principle33. All of the fields covered 
in the CIP are the shared responsibility of the Member States and the Community34. The CIP 
will only intervene where there is a demonstrable European added value in working through 
Community  instruments  to  improve  delivery  at  national  and  subnational  levels  or  for 
achieving Community goals. The management committees established for components of the 
programme  will  ensure  that  the  activities  supported  by  it  are  in  line  with  Member  States’ 
priorities.  Proportionality  will  primarily  be  ensured  by  targeting  intervention  on  market 
failures. 

The  programme  instruments  are  also  in  line  with  the  principles  of  subsidiarity  and 
proportionality: 

– 

– 

– 

– 

33 

34 

leverage 

instruments 

is  ensured  by  providing 

Community  financial  instruments  for  SMEs  will  provide  additional  leverage  to 
national  instruments  with  the  backing  of  the  EIF’s  AAA  rating.  Proportionality  of 
these 
through  market-based 
intermediaries.  They  will  address  problems  that  continue  to  occur  despite  the 
integration  of  the  market  for  financial  services  due  to  recognised  and  persistent 
market failures, and they will complement other (own-resource based) interventions 
by  the  EIF  as  well  as  the  activities  of  other  international  financial  institutions.  The 
European  dimension  will  ensure  diffusion  of  good  practice  in  the  delivery  of  such 
instruments, and also stimulate coordinated activities. In many Member States such 
provision  is  deficient  and  access  to  suitable  finance  remains  an  obstacle  to 
entrepreneurship, innovation, information society development and the development 
and application of environmental technologies. 

Community support for European business and innovation support services will help 
partner  organisations  operating  in  the  Member  States  to  provide  SMEs  with 
additional  business  and  innovation  support  services  and  to  foster  business 
cooperation throughout the EU. With a common support structure, individual centres 
will be able to offer decentralised information and advisory services. Proportionality 
is ensured by cooperating with partner organisations that are well integrated into the 
economic life of their region. 

Policy  Development  actions,  such  as  exchanges  of  experience,  benchmarking  and 
coordination  of  national  policies,  will  assist  authorities  in  improving  their  policy 
approaches  to  conditions  for  entrepreneurship,  SME  development,  innovation,  eco-
innovation  and  development  and  adoption  of  ICTs.  Such  exchanges  are  part  of  the 
open method of coordination and are used as a tool for helping national authorities to 
improve  their  own  policy  responses.  They  may  be  followed  up  through  twinning 
actions whose Community added value derives from their cross-border nature. 

The  major  support  for  business  innovation  projects  in  Europe  stems  from  national 
and  regional  programmes  and  schemes.  However,  the  programmes  are  still 
fragmented along national and regional lines and therefore often cannot draw on the 

Article  5  of  the  EC  Treaty  and  the  Protocol  on  the  application  of  the  principles  of  subsidiarity  and 
proportionality, annexed to the Amsterdam Treaty. 
The legal bases of CIP are Articles 156, 157(3) and 175(1) of the Treaty. 

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13 

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creative  potential  available  in  other  EU  countries.  Support  for  teaming  up  national 
and  regional  business  innovation  programmes  addresses  this  problem,  in  particular 
through exchanges and promotion of best practice. 

– 

Shared  cost  projects  such  as  implementation,  pilot  and  market  replication  projects 
will  aim  to  encourage  innovation,  networking  among  stakeholders,  and  the  transfer 
and  market-take  up  of  new  technologies,  often  on  a  cross-border  basis.  Financial 
assistance  allocated  to  such  projects  will  be  established  on  the  basis  of  the 
Community  added  value  of  the  action  and  in  accordance  with  the  objectives  and 
work programme of the relevant programme. 

7. 

BUDGETARY IMPLICATIONS 

The  “legislative  financial  statement”  presented  with  this  Decision  sets  out  the  indicative 
budgetary implications. It is compatible with the financial programming for the period 2007-
2013 as proposed by the Commission35. 

35 

COM(2004) 101, 26.2.2004 

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2005/0050 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing a Competitiveness and Innovation Framework Programme 
(2007-2013) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 156, Article 157(3) and Article 175(1) thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Economic and Social Committee2, 

Having regard to the opinion of the Committee of the Regions3, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty4, 

Whereas: 

(1) 

(2) 

(3) 

1 
2 
3 
4 
5 

The Lisbon European Council of March 2000 set the objective of making Europe the 
most competitive and dynamic knowledge-based economy in the world. It emphasized 
the importance of creating a climate favourable to small and medium-sized enterprises 
(SMEs),  and  considered  it  important  to  disseminate  best  practice  and  ensure  greater 
convergence  between  Member  States.  The  Gothenburg  European  Council  of 
June 2001  defined  the  Community  Strategy  for  Sustainable  Development  to  ensure 
that economic growth, social inclusion and environmental protection go hand in hand. 
Enterprises’ production patterns play an important role in sustainable development. 

In order to contribute to the enhancement of competitiveness and innovation capacity 
in  the  Community,  the  advancement  of  the  knowledge  society,  and  sustainable 
development based on balanced economic growth, a Competitiveness and Innovation 
Framework  Programme  (hereinafter  “the  Framework  Programme”)  should  be 
established. 

This is in line with the Communication from the Commission to the Spring European 
Council entitled “Working together for growth and jobs – a new start for the Lisbon 
Strategy”5, which calls for actions to deliver growth and competitiveness and to make 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
COM(2005) 24, 2.2.2005 

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(4) 

Europe  a  more  attractive  place  to  invest  and  work,  recalling  that  entrepreneurial 
initiative must be stimulated, sufficient risk capital attracted to start up businesses, and 
a  strong  European  industrial  base  sustained  whilst  innovation  and  notably  eco-
innovation,  that  is,  innovation  related  to  or  using  environmental  technologies,  the 
uptake of information and communication technologies (ICT) and the sustainable use 
of resources should be promoted. Whilst competitiveness is to a large measure driven 
by vibrant  business operating in open and competitive  markets and supported by the 
right  framework  conditions,  in  particular  by  a  regulatory  framework  conducive  to 
innovation,  Community  financing  has  a  role  to  play  in  leveraging  support  and 
providing complementary funding in order to tackle situations of market failure. 

information  and  communication 

The  Framework  Programme  should  bring  together  those  specific  Community 
measures  in  the  field  of  entrepreneurship,  SMEs,  industrial  competitiveness, 
innovation, 
technology  (ICT),  environmental 
technologies  and  intelligent  energy  that,  until  now,  have  been  regulated  by  Council 
Decision 96/413/EC  of  25 June 1996  on  the  implementation  of  a  Community  action 
programme  to  strengthen  the  competitiveness  of  European  industry6,  Council 
Decision 2000/819/EC  of  20 December 2000  on  a  multiannual  programme  for 
enterprise  and  entrepreneurship,  and  in  particular  for  SMEs7,  Regulation  (EC) 
No 1655/2000  of  the  European  Parliament  and  of  the  Council  of  17  July 2000 
concerning  the  Financial  Instrument  for  the  Environment  (LIFE)8,  Decision No 
2256/2003/EC  of  the  European  Parliament  and  of  the  Council  of  17 November 2003 
on  a  multiannual  programme  for  the  monitoring  of  the  eEurope  2005  action  plan, 
dissemination  of  good  practices  and  the  improvement  of  network  and  information 
security9,  Council  Decision 2001/48/EC  of  22 December 2000  on  a  multiannual 
Community  programme  to  stimulate  the  development  and  use  of  European  digital 
content on the global networks and to promote linguistic diversity in the information 
society10, Decision No 1336/97/EC of the European Parliament and of the Council of 
17 June 1997  on  a  series  of  guidelines  for  trans-European  telecommunications 
networks11  and  Decision  No  1230/2003/EC  of  the  European  Parliament  and  of  the 
Council of 26 June 2003 on a multiannual programme for action in the field of energy: 
‘Intelligent  Energy  –  Europe’  to  support  sustainable  development  in  the  energy 
context12. 

(5) 

The  Framework  Programme  establishes  a  set  of  common  objectives,  the  total 
budgetary  envelope  for  pursuing  those  objectives,  different  types  of  implementing 
measures, and the arrangements for monitoring and evaluation and for the protection 
of the Communities’ financial interests. 

6 
7 

8 

9 
10 
11 

12 

OJ L 167, 6.7.1996, p. 55. 
OJ  L  333,  29.12.2000,  p.  84.  Decision  as  last  amended  by  Decision  No  593/2004/EC  (OJ  L  268, 
16.8.2004, p.3) 
OJ  L  192,  28.7.2000,  p.1.  Regulation  as  last  amended by  Regulation (EC)  No 1682/2004  (OJ  L  308, 
5.10.2004, p. 1). 
OJ L 336, 23.12.2003, p.1. 
OJ L 14, 18.1.2001, p. 32. 
OJ  L  183,  11.7.1997,  p.  12.  Decision  as  last  amended  by  Decision  No  1376/2002/EC  (OJ  L  200, 
30.7.2002, p. 1). 
OJ L 176, 15.7.2003, p. 29 . 

EN 

16 

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(6) 

(7) 

(8) 

The  Framework  Programme  should  exclude  research  and  technological  development 
activities  carried  out  in  accordance  with  Article 166  of  the  Treaty  and  should  be 
complementary 
the  Community  framework  programme  for  research  and 
technological  development  established  in  Decision […]  of  the  European  Parliament 
and of the Council of …13. 

to 

The common objectives of the Framework Programme should be pursued by specific 
programmes  entitled  “the  Entrepreneurship  and  Innovation  Programme”,  “the  ICT 
policy support Programme”, and “the Intelligent Energy – Europe Programme”. 

This  Decision  establishes  a  financial  framework  for  the  entire  duration  of  the 
programme, which is to be the principal point of reference for the budgetary authority 
within  the  meaning  of  point 33  of  the  inter-institutional  agreement  of  6 May 1999 
between  the  European  Parliament,  the  Council  and  the  Commission  on  budgetary 
discipline and improvement of the budgetary procedure14. 

(9) 

A specific and indicative budget should be reserved for each specific programme. 

(10) 

In order to ensure that financing be limited to tackling market failures, and with a view 
to  avoiding  market  distortions,  funding  from  the  Framework  Programme  should 
comply with the Community State aid rules and the accompanying instruments and the 
Community definition of SMEs in place. 

(11)  The Agreement on the European Economic Area (EEA) and the additional protocols to 
the Association Agreements provide for the participation of the respective countries in 
Community  programmes.  Participation  by  other  countries  should  be  possible  when 
agreements and procedures so allow. 

(12)  The  Framework  Programme  and  the  specific  programmes  should  be  regularly 

monitored and evaluated in order to allow for readjustments. 

(13)  Appropriate measures should also be taken to prevent irregularities and fraud and the 
necessary steps should be taken to recover funds lost, wrongly paid or incorrectly used 
in  accordance  with  Council  Regulations 
(EC,  Euratom)  No 2988/95  of 
18 December 1995  on  the  protection  of  the  European  Communities  financial 
interests15,  (Euratom,  EC)  No 2185/96  of  11 November 1996  concerning  on-the-spot 
checks and inspections carried out by the Commission in order to protect the European 
Communities' financial interests against fraud and other irregularities16 and Regulation 
(EC)  No 1073/1999  of  the  European  Parliament  and  of  the  Council  concerning 
investigations conducted by the European Anti-Fraud Office (OLAF)17. 

(14)  The  growth  and  competitiveness  of  enterprises  in  industrial  and  service  sectors 
depends  on  their  ability  to  adjust  quickly  to  change  and  to  exploit  their  innovative 
potential. This challenge concerns enterprises of all size, but is particularly acute for 

13 
14 
15 
16 
17 

OJ L  
OJ C 172, 18.6.1999, p.1. 
OJ L 312, 23.12.1995, p. 1. 
OJ L 292, 15.11.1996, p.2. 
OJ L 136, 31.5.1999, p. 1. 

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17 

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smaller  enterprises.  It  is  therefore  appropriate  to  establish  a  specific  programme, 
entitled “the Entrepreneurship and Innovation programme”. 

(15)  The Community can be the catalyst and coordinator of Member States’ efforts. It can 
contribute  to,  and  complement  their  achievements,  in  particular  by  promoting  the 
exchange  of  national  and  regional  experiences  and  practices,  by  defining  and 
disseminating best practices, and by contributing to the availability of European wide 
supply of services in support of business and innovation, in particular for SMEs. 

‘Stimulating  Technologies 

(16)  The  Communication  from  the  Commission  to  the  Council  and  the  European 
Parliament  on 
for  Sustainable  Development:  An 
Environmental  Technologies  Action  Plan  for  the  European  Union’18  calls  for 
Community  programmes  to  support  the  development  and  uptake  of  environmental 
technologies and calls for the mobilisation of financial instruments to share the risks of 
investing in environmental technologies. 

(17)  Market-based  Community  financial  instruments  for  SMEs  complement  and  add 
leverage to financial schemes at the national level. They can foster private investment 
for the creation of new innovative companies, and they can support companies with a 
high growth potential in their expansion phase to reduce a recognised equity gap. They 
can improve access of existing SMEs to loan finances for activities that support their 
competitiveness and growth potential. 

(18)  The  European  Investment  Fund  (EIF)  is  the  Community’s  specialised  vehicle  for 
providing risk capital and guarantee instruments for SMEs. It contributes to the pursuit 
of  Community  objectives,  including  a  knowledge-based  society,  innovation,  growth, 
employment and the promotion of entrepreneurial spirit. The EIF ensures the required 
continuity in the management of Community programmes and has gathered extensive 
experience therein. The operation by the EIF of Community financial instruments for 
SMEs on behalf of the Commission has therefore been considered a good practice by 
independent  evaluations.  The  EIF  has  also  the  expertise  to  support  emerging  actions 
based on public-private partnerships launched by Member States aiming at attracting 
high-risk  investment  streams  from  the  capital  markets  to  the  benefit  of  innovative 
small businesses. 

(19) 

Impending changes in the financial environment and new accounting standards make 
financial  institutions  more  sensitive  to  risk,  lead  to  a  rating  culture,  and  may  tighten 
the credit supply to SMEs, at least during a transitional phase. The Entrepreneurship 
and Innovation programme should therefore respond to the changing financing needs 
of SMEs, including the need for proximity financing and their adaptation to the new 
financial environment whilst avoiding market distortions. 

(20)  Services  in  support  of  business  and  innovation  play  an  important  role  in  ensuring 
SMEs’  access  to  information  relating  to  the  functioning  and  opportunities  of  the 
internal  market  for  goods  and  services  as  well  as  in  the  trans-national  transfer  of 
innovation,  knowledge  and  technology.  They  also  have  a  crucial  role  to  play  in 
facilitating SME’s access to information on Community legislation applying to them 
and on future legislation to which they can prepare and adapt in a cost-effective way. 

18 

COM(2004) 38, 28.1.2004. 

EN 

18 

   EN 

 
                                                 
External evaluations have stressed that the horizontal role in the delivery of European 
business support services should be strengthened. This concerns the dissemination of 
information  on  Community  programmes  and  the  promotion  of  the  participation  of 
SMEs  in  those  programmes,  in  particular  SME  participation  in  the  Community 
framework  programme  for  research,  technological  development  and  demonstration. 
Evaluations  have  also  stressed  the  importance  of  facilitating  interaction  between  the 
Commission and SMEs. 

(21)  The  Community  must  equip  itself  with  a  sound  analytical  basis  to  support  policy 
making  in  the  fields  of  SMEs,  entrepreneurship,  innovation  and  competitiveness  in 
industrial  sectors.  Such  a  basis  should  add  value  to  the  information  available  at  the 
national  level  in  these  fields.  The  Community  should  provide  for  the  common 
development  of  competitiveness  strategies  for  industrial  and  service  sectors,  and  for 
the  promotion  of  best  practices  in  relation  to  an  entrepreneurial  environment  and 
culture, including corporate social responsibility and equal gender opportunity, and to 
promote the emergence of young entrepreneurs 

(22)  The  European  Council  of  20  and  21 March 2003  gave  priority  to  innovation  and 
entrepreneurship  and  stressed  the  need  for  Europe  to  do  more  to  turn  ideas  into  real 
value-added.  It  called  for  further  action  in  order  to  create  the  conditions  in  which 
business  innovates.  The  linear  model  of  innovation,  that  assumes  that  research  leads 
directly to innovation, has proved to be insufficient to explain innovation performance 
and  to  design  appropriate  innovation  policy  responses.  Recognising  that  enterprises 
are at the heart of the innovation process, funding to stimulate innovation activities of 
enterprises  and  preparing  the  market-take  up  of  innovation  as  well  as  innovation 
governance  and  culture  should  therefore  be  placed  under  the  Entrepreneurship  and 
Innovation programme. This should help to ensure that innovation works to promote 
competitiveness  and  is  carried  through  into  practical  application  at  a  business  level. 
The  European  Council  of  25  and  26 March 2004  added  that  clean  technologies  are 
vital to fully exploit synergies between enterprise and the environment. The promotion 
of eco-innovation, which includes innovative clean technologies, can help exploit their 
potential. 

(23)  The  market  for  knowledge  transfer  and  absorption  is  frequently  opaque,  and  lack  of 
information  or  failure  to  make  connections  creates  market  barriers.  Businesses  also 
find it difficult to incorporate technologies which are not part of their traditional field 
of activity and to access new types of skills. Financial risks can be high for innovation, 
profitability  may  be  delayed  by  development  hitches  and  tax  may  not  be  neutral 
between  success  and  failure.  Skills  needed  to  exploit  opportunities  may  be  in  short 
supply. Institutional or regulatory obstacles can delay or undermine the emergence of 
new markets and access to them. In addition, economic circumstances can determine 
whether innovation takes place or not. 

(24)  Those  barriers  to  the  market  penetration  of  innovation  technologies  are  particularly 
relevant  for  environmental  technologies.  Market  prices  too  often  do  not  completely 
reflect  the  environmental  costs  of  products  and  services.  The  part  of  the  costs  not 
reflected in market prices are borne by society as a whole, rather than by the producers 
of pollution. This market failure, together with the Community interest in preserving 
resources,  preventing pollution and protecting  the  environment  more  cost-efficiently, 
justifies reinforced support for eco-innovation. 

EN 

19 

   EN 

 
(25)  The  Community’s  innovation  actions  aim  to  support  the  development  of  innovation 
policy  in  the  Member  States  and  their  regions  and  to  facilitate  the  exploitation  of 
synergy  effects  between  national,  regional  and  European  innovation  policy  and 
support  activities.  The  Community  is  able  to  facilitate  trans-national  exchanges, 
mutual  learning  and  networking  and  can  drive  co-operation  on  innovation  policy. 
Networking among stakeholders is the key to facilitating the flow of knowledge and 
ideas that are necessary for innovation. 

the 

information  society 

(26)  The Council resolution endorsed at the Telecom Council of 9 December 2004 provides 
the  basis  for  the  proposal  of  a  new  information  society  initiative  to  reinforce  the 
contribution  of 
its 
Communication  on  a  new  start  for  the  Lisbon  strategy,  the  Commission  proposes  to 
focus efforts on “delivering stronger and lasting growth and creating more and better 
jobs”.  It  highlights  the  uptake  of  ICT  by  both  the  private  and  public  sector  as  a  key 
element  to  improve  our  innovation  performance  and  competitiveness.  A  specific 
programme  entitled  “the  ICT  policy  support  Programme”  should  therefore  be 
established. 

to  Europe’s  performance. 

In 

(27) 

ICT provide the backbone for the knowledge economy. They account for around half 
of  the  productivity  growth  in  modern  economies  and  provide  unique  solutions  to 
address  the  key  societal  challenges.  The  improvement  of  public  sector  and  general 
interest  services  needs  to  be  conducted  in  close  collaboration  with  the  relevant 
Community  policies,  for  example,  in  the  fields  of  public  health,  education  and 
training, environment, transport and internal market development and competition. 

(28)  The deployment and best use of innovative ICT based solutions should be stimulated, 
in  particular  for  services  in  areas  of  public  interest.  Community  support  should  also 
facilitate  the  coordination  and  the  implementation  of  actions  for  developing  the 
Information society across the Member States. 

(29)  The  midterm  evaluation  of  the  eTEN  (Trans  European  Network  for  Telecom) 
programme recommends using a demand driven approach for Community intervention 
to projects supporting trans-European services in areas of public interest. 

(30)  The  eGovernment19  and  eHealth20  Communications  from  the  Commission  and  related 
Council  conclusions,  call  for  increased  effort  in  innovation,  good  practise  exchange, 
interoperability  and  identified  the  need  for  increased  synergies  between  related  EU 
programmes. 

(31)  A legislative framework has been defined to deal with the challenges of digital content 
in  the  Information  Society.  This  is  defined  in  Directive 2003/98/EC  of  the  European 
Parliament  and  of  the  Council  of  17 November 2003  on  the  re-use  of  public  sector 
information21, Directive 2001/29/EC of the European Parliament and of the Council of 
22 May 2001 on the harmonisation of certain aspects of copyright and related rights in 

19 
20 
21 

COM(2003) 567. 
COM(2004) 356. 
OJ L 345, 31.12.2003, p. 90. 

EN 

20 

   EN 

 
                                                 
the information society22 and Directive 96/9/EC of the European Parliament and of the 
Council of 11 March 1996 on the legal protection of databases23. 

(32)  Different  practices  among  Member  States  continue  to  create  technical  barriers 
impeding wide access and re-use of public sector information in the Community. 

(33)  Community  actions  concerning  digital  content  should 
Community’s multilingual and multicultural specificity. 

take  account  of 

the 

(34)  Natural  resources,  the  prudent  and  rational  utilisation  of  which  is  provided  for  in 
Article 174  of  the  Treaty,  include,  apart  from  renewable  energy  sources,  oil,  natural 
gas and solid fuels, which are essential energy sources but are also the main sources of 
carbon dioxide emissions. 

(35)  The  Green  Paper  entitled  "Towards  a  European  strategy  for  the  security  of  energy 
supply"24  noted  that  the  European  Union  is  becoming  increasingly  dependent  on 
external  energy  sources  and  that  its  dependence  could  rise  to  70 %  in  20-30  years' 
time. It therefore stressed the need to balance supply policy against clear action for a 
demand  policy  and  called  for  better  managed  and  more  environmentally  friendly 
consumption,  particularly  in  the  transport  and  building  sectors.  It  also  called  for 
priority  to  be  given  the  development  of  new  and  renewable  sources  on  the  energy 
supply side in order to respond to the challenge of global warming and to achieve the 
target already established by earlier action plans and resolutions of 12 % energy from 
renewable energy sources in gross internal consumption by 2010. 

(36)  Directive 2001/77/EC  of 

the  European  Parliament  and  of 

the  Council  of 
27 September 2001  on  the  promotion  of  electricity  produced  from  renewable  energy 
sources  in  the  internal  energy  market25  requires  Member  States  to  set  national 
indicative  targets  consistent  with  the  Community  global  indicative  target  of  12 %  of 
gross national energy consumption by 2010 and in particular with the 21 % indicative 
share  of  electricity  produced  from  renewable  energy  sources  in  total  Community 
electricity consumption by 2010. The Commission Communication entitled ‘The share 
of renewable energy in the EU’26, warned that the target of a 12 % share of renewable 
energy in overall energy consumption in the Community in 2010 will not be reached 
unless considerable extra action is taken. 

(37)  Directive 2002/91/EC  of 

the  European  Parliament  and  of 

the  Council  of 
16 December 2002  on  the  energy  performance  of  buildings27  requires  Member  States 
to apply minimum energy performance requirements for new and existing buildings, to 
ensure  the  energy  certification  of  buildings  and  to  require  the  regular  inspection  of 
boilers and of air-conditioning systems in buildings. 

22 
23 
24 
25 
26 
27 

OJ L 167, 22.6.2001, p. 10. 
OJ L 77, 27.3.1996, p. 20. 
COM(2000) 769, 29.11.2000. 
OJ L 283, 27.10.2001, p. 33. 
COM(2004) 366, 26.5.2004. 
OJ L 1, 4.1.2003, p. 65. 

EN 

21 

   EN 

 
                                                 
(38)  Directive 2003/30/EC of the European Parliament  and  of the Council of  8 May 2003 
on the promotion of the use of biofuels or other renewable fuels for transport28 requires 
Member States to ensure that a minimum proportion of biofuels and other renewable 
fuels is placed on their market. 

(39)  Directive 2004/8/EC  of 

the  European  Parliament  and  of 

the  Council  of 
11 February 2004 on the promotion of cogeneration based on a useful heat demand in 
the  internal  energy  market  and  amending  Directive 92/42/EEC29  requires  Member 
States to carry out analyses of their potential for high-efficiency cogeneration and to 
set up support schemes in conformity with the identified national potentials. 

(40) 

In  order  to  facilitate  the  implementation  of  these  Community  measures,  to  achieve 
greater  market  penetration  for  renewable  energy  sources  and  to  improve  energy 
efficiency, there is a need for specific promotion programmes at Community level to 
create the conditions for moving towards sustainable energy systems, in particular to 
support  the  standardisation  of  equipment  which  produces  or  consumes  renewable 
energy  sources,  to  increase  technology  deployment  and  to  spread  best  practices  in 
demand side management. The same applies to the Community measures related to the 
labelling  of  energy  efficiency  of  electrical,  electronic,  office  and  communications 
equipment and the standardisation of lighting, heating and air-conditioning equipment. 
A  specific  programme  entitled  “The  Intelligent  Energy-  Europe  Programme”  should 
therefore be established. 

(41)  Achieving the full impact of the established strategy in sustainable energy requires not 
only  continuity  with 
to  policy  development  and 
the  Community  support 
implementation and removal of existing non-technological barriers through enhanced 
promotion  campaigns,  but  and  above  all,  support  to  accelerate  investment  and 
stimulate the market uptake of innovative technologies across the Community. 

(42)  Alongside environmental advantages, renewable energy sources and energy efficiency 
are  within  the  fastest  growing  industries  in  the  Community,  creating  new  and 
innovative  jobs.  The  European  renewable  energy  industry  leads  the  world  in  the 
development of technologies for renewable energy electricity generation. They benefit 
economic and social cohesion and avoid the dissipation of resources. 

(43)  Decision  No  1230/2003/EC  of  the  European  Parliament  and  of  the  Council  of 
26 June 2003  adopting  a  multiannual  programme  for  action  in  the  field  of  energy 
‘Intelligent Energy – Europe’ (2003-2006)30 will expire on 31 December 2006. 

(44)  Three  of  the  four  specific  fields  of  the  programme  established  by  Decision 
No 1230/2003/EC  should  be  continued  under  this  programme.  These  are:  (i) 
promoting  energy  efficiency  and  the  rational  use  of  energy  resources  (‘SAVE’);  (ii) 
promoting  new  and  renewable  energy  sources  (‘ALTENER’);  and  (iii)  promoting 
energy  efficiency  and  the  use  of  new  and  renewable  energy  sources  in  transport 
(‘STEER’).  

28 
29 
30 

OJ L 123, 17.5.2003, p. 42. 
OJ L 52, 21.2.2004, p. 50. 
OJ L 176, 15.7.2003, p. 29. 

EN 

22 

   EN 

 
                                                 
(45)  The  international  dimension  (‘COOPENER’)  of  the  programme  established  by 
Decision  No  1230/2003/EC  should  be  continued  in  the  framework  of  the  new 
Community instruments for external assistance31.  

(46) 

In  accordance  with  the  principles  of  good  governance  and  better  regulation,  the 
Commission has commissioned independent experts to carry out an ex-ante evaluation 
of a renewed multiannual Community programme in the field of energy to succeed the 
ongoing  Intelligent  Energy  –  Europe  programme  after  31 December 2006.  In  their 
report,  the  experts  concluded  on  the  necessity  to  ensure  the  continuity  of  the 
programme  ‘Intelligent  Energy  –  Europe’  after  2006,  and  to  renew  it  into  a  more 
comprehensive and ambitious instrument. 

(47)  Since  the  objectives  of  the  actions  to  be  taken  concerning  the  enhancement  of  the 
Community’s  competitiveness  and  innovation  cannot  be  sufficiently  achieved  by  the 
Member  States  because  of  the  need  for  multilateral  partnerships,  trans-national 
mobility and Community-wide exchanges of information, and can therefore, by reason 
of the nature of the actions and measures necessary, be better achieved at Community 
level,  the  Community  may  adopt  measures,  in  accordance  with  the  principle  of 
subsidiarity  as  set  out  in  Article 5  of  the  Treaty.  In  accordance  with  the  principle  of 
proportionality,  as  set  out  in  that  Article,  this  Decision  does  not  go  beyond  what  is 
necessary in order to achieve those objectives. 

(48)  The measures necessary for the implementation of this Decision should be adopted in 
accordance  with  Council  Decision 1999/468/EC  of  28 June 1999  laying  down  the 
procedures for the exercise of implementing powers conferred on the Commission32. 

(49)  Taking  into  account  the  nature  of  the  issues  to  be  dealt  with  under  the  specific 
programmes,  the  Commission  should  be  assisted  by  different  committees  for  the 
implementation of each specific programme. 

(50)  Decision [xxx]  of  the  European  Parliament  and  of  the  Council  establishes  a 
multiannual programme, named eContentplus, to make digital content in Europe more 
accessible,  usable  and  exploitable.  That  Decision  will  expire  at  the  end  of  2008. 
Thereafter  measures  foreseen  to  make  digital  content  in  Europe  more  accessible, 
usable and exploitable should be continued under the ICT policy support Programme 
established by this Decision33. 

(51)  The  measures  provided  for  in  Decision 96/413/EC  should  be  integrated  into  the 
Entrepreneurship and Innovation programme. Decision 96/413/EC should therefore be 
repealed, 

HAVE DECIDED AS FOLLOWS: 

31 
32 
33 

OJ C 64, 16.3.2005, p. 4. 
OJ L 184, 17.7.1999, p. 23. 
OJ L 

EN 

23 

   EN 

 
                                                 
TITLE I 
COMMON PROVISIONS 

Chapter I 
The Competitiveness and Innovation Framework Programme 

Article 1 
Establishment 

1. 

2. 

3. 

A framework programme for Community action in the field of competitiveness and 
innovation,  covering  the  period  from  1 January 2007  until  31 December 2013, 
hereinafter ‘the Framework Programme’, is hereby established. 

The  Framework  Programme  shall  contribute  to  the  competitiveness  and  innovative 
capacity  of  the  Community  as  an  advanced  knowledge  society,  with  sustainable 
development  based  on  balanced  economic  growth  and  a  highly  competitive  social 
market  economy  with a high level of protection and improvement of the quality of 
the environment. 

The Framework Programme shall not cover research and technological development 
activities carried out in accordance with Article 166 of the Treaty. 

Article 2 
Objectives 

1. 

The Framework Programme shall have the following objectives: 

(a) 

to foster the competitiveness of enterprises and in particular Small and Medium 
sized Enterprises (SMEs); 

(b) 

to promote innovation including eco-innovation; 

(c) 

(d) 

to  accelerate  the  development  of  a  competitive,  innovative  and  inclusive 
Information Society; 

to  promote  energy  efficiency  and  new  and  renewable  energy  sources  in  all 
sectors including transport. 

2. 

The  objectives  of  the  Framework  Programme  shall  be  pursued  through  the 
implementation  of  the  following  specific  programmes  established  in  Title II, 
hereinafter ‘the specific programmes’: 

(a) 

the Entrepreneurship and Innovation Programme; 

(b) 

the ICT policy support Programme; 

EN 

24 

   EN 

 
(c) 

the Intelligent Energy-Europe Programme. 

Article 3 
Budget 

1. 

2. 

3. 

The  financial  reference  amount  for  the  implementation  of  the  Framework 
Programme shall be EUR 4 212.6 million. 

An  indicative  budgetary  breakdown  for  the  specific  programmes  is  set  out  in 
Annex I. 

Annual appropriations shall be authorised by the budgetary authority within the limit 
of the financial perspective. 

Article 4 
Participation of third countries 

The Framework Programme shall be open to the participation of: 

(a)  EFTA  countries  which  are  members  of  the  EEA,  in  accordance  with  the 

conditions laid down in the EEA Agreement; 

(b) 

candidate  countries  benefiting  from  a  pre-accession  strategy,  in  accordance 
with  the  general  principles  and  general  terms  and  conditions  for  the 
participation  of  these  countries  in  Community  programmes  established  in  the 
respective Framework Agreement and Association Council Decisions; 

(c) 

countries  of  the  Western  Balkans,  in  accordance  with  the  provisions  to  be 
determined  with  those  countries  following  the  establishment  of  framework 
agreements concerning their participation in Community programmes; 

(d)  other third countries, when agreements so allow. 

Chapter II 
Implementation of the Framework Programme 

Article 5 
Work programmes 

1. 

2. 

The Commission shall adopt annual work programmes for the specific programmes 
in accordance with the procedure referred to in Article 46(2). 

The Commission shall ensure their implementation. 

Amendments to the annual work programmes referred to in paragraph 1 concerning 
budgetary  allocations  of  more  than  EUR 1 million  shall  be  adopted  in  accordance 
with the procedure referred to in Article 46(2). 

EN 

25 

   EN 

 
Article 6 
Type of implementing measures 

1. 

The measures for the implementation of the work programmes shall be, in particular: 

(a)  Community financial instruments for SMEs; 

(b)  networks bringing together a variety of stakeholders; 

(c) 

pilot  projects,  market  replication,  projects  and  other  measures  to  support  the 
take-up of innovation; 

(d)  policy analyses, development and coordination with participating countries; 

(e) 

information sharing, dissemination and awareness raising; 

(f) 

support to joint actions of Member States or regions; 

(g)  procurement  based  on  technical  specifications  elaborated  in  cooperation  with 

the Member States; 

(h) 

twinning between authorities at national and regional level. 

2. 

3. 

These and additional implementing measures, as set out in section 2 of Chapters I, II 
and III of Title II, may be applied to any of the specific programmes, if the relevant 
work programme so provides. 

The funding granted shall fully comply with the Community state aid rules and the 
accompanying instruments. 

Article 7 
Technical assistance 

The budgetary envelope established under this Decision may also cover expenditure related to 
preparatory  actions,  monitoring,  control,  audit  and  evaluation  directly  necessary  for  the 
implementation of this Decision and for the achievement of its objectives. 

in  particular, 

Those  actions  may, 
information  activities, 
publications,  expenditure  on  informatics  tools,  systems  and  networks  for  the  exchange  and 
processing  of 
technical,  scientific  and 
administrative assistance and expertise to which the Commission may need to have recourse 
for the purposes of the implementation of this Decision. 

information,  and  any  other  expenditure  on 

include  studies,  meetings, 

Article 8 
Monitoring and evaluation 

1. 

The  Commission  shall  regularly  monitor  the  implementation  of  the  Framework 
Programme and its specific programmes. 

EN 

26 

   EN 

 
The  Commission  shall  establish  an  annual  implementation  report  for  each  specific 
programme regarding the supported activities by means of financial implementation, 
results and impacts. 

2. 

The Framework Programme and its specific programmes shall be subject to interim 
and  final  evaluations  which  shall  examine  issues  such  as  relevance,  coherence  and 
synergies, effectiveness, efficiency, sustainability and utility. 

The interim evaluations may also include ex-post evaluation elements with regard to 
previous programmes. 

3. 

The  interim  and  final  evaluations  of  the  specific  programmes  and  the  necessary 
budgetary allocations shall be included in the respective work programmes. 

The  interim  and  final  evaluation  of  the  Framework  Programme  and  the  necessary 
budgetary  allocations  shall  be  included  in  the  work  programme  for  the  specific 
programme “Entrepreneurship and Innovation Programme”, established in Chapter I 
of Title II 

4. 

The  interim  evaluation  of  the  Framework  Programme  shall  be  completed  by 
31 December 2009, the final evaluation by 31 December 2011. 

5. 

1. 

2. 

The  interim  and  final  evaluations  of  the  specific  programmes  shall  be  arranged  in 
such  a  way  that  their  results  can  be  taken  into  account  in  the  interim  and  final 
evaluation of the Framework Programme. 

The  Commission  shall  communicate  the  main  results  of  the  interim  and  final 
evaluations  of  the  Framework  Programme  and  of  its  specific  programmes  to  the 
European  Parliament,  the  Council,  the  European  Economic  and  Social  Committee 
and the Committee of the Regions. 

Article 9 
Protection of the Communities’ financial interests 

The  Commission  shall  ensure  that,  when  actions  financed  under  this  Decision  are 
implemented,  the  financial  interests  of  the  Community  are  protected  by  the 
application of measures to prevent fraud, corruption and any other illegal activities, 
by effective checks and by the recovery of amounts unduly paid and, if irregularities 
are detected, by effective, proportional and dissuasive penalties, in accordance with 
Regulation  (EC,  Euratom)  No 2988/95  and  Regulation  (Euratom,  EC)  No 2185/96, 
and with Regulation (EC) No 1073/1999. 

For the Community actions financed under this Decision, Regulation (EC, Euratom) 
No 2988/95  and  Regulation  (Euratom,  EC)  No 2185/96  shall  apply  to  any 
infringement  of  a  provision  of  Community  law,  including  infringements  of  a 
contractual obligation stipulated on the basis of the programme, resulting from an act 
or  omission  by  an  economic  operator,  which  has,  or  would  have,  the  effect  of 
prejudicing the general budget of the European Communities or budgets managed by 
them, by an unjustified item of expenditure. 

EN 

27 

   EN 

 
3. 

All implementing measures resulting from this Decision shall provide, in particular, 
for  supervision  and  financial  control  by  the  Commission  or  any  representative 
authorized by it and by audits by the European Court of Auditors, if necessary on-
the-spot. 

TITLE II 
THE SPECIFIC PROGRAMMES 

Chapter I 
The Entrepreneurship and Innovation Programme 

SECTION 1 
OBJECTIVES AND FIELDS OF ACTION 

Article 10 
Establishment and objectives 

1. 

2. 

A  programme  in  support  of  enterprise  and  SMEs,  entrepreneurship,  innovation  and 
industrial  competitiveness,  (hereinafter  ‘the  Entrepreneurship  and  Innovation 
Programme’), is hereby established. 

The Entrepreneurship and Innovation Programme shall provide for action to support, 
improve, encourage and promote: 

(a) 

access  to  finance  for  the  start-up  and  growth  of  SMEs  and  investment  in 
innovation activities, including eco-innovation; 

(b) 

creation of an environment favourable to SME co-operation; 

(c) 

innovation in enterprises, including eco-innovation; 

(d) 

entrepreneurship and innovation culture; 

(e) 

enterprise and innovation related economic and administrative reform. 

Article 11 
Access to finance for the start-up and growth of SMEs 

Action in relation to access to finance for the start-up and growth of SMEs and for investment 
in innovation activities, including eco-innovation, may include: 

(a) 

increasing  investment  volumes  of  risk  capital  funds  and  investment  vehicles 
promoted by business angels; 

(b) 

providing leverage to SME debt financing instruments; 

EN 

28 

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(c) 

improving the financial environment for SMEs. 

Article 12 
SME co-operation 

Action in relation to SME co-operation may include: 

(a) 

(b) 

fostering services in support of SMEs; 

contributing  to  measures  helping  SMEs  to  cooperate  with  other  enterprises  across 
borders, including SME involvement in the field of European standardisation; 

(c) 

promoting and facilitating international business cooperation. 

Article 13 
Innovation, including eco-innovation in enterprises 

Action in relation to innovation, including eco-innovation, may include: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

fostering  sector-specific  innovation,  clusters,  innovation  networks,  public-private 
innovation  partnerships  and  cooperation  with  relevant  international  organisations, 
and the use of innovation management; 

supporting national and regional programmes for business innovation; 

supporting the take-up of innovative technologies; 

supporting  services  for  trans-national  knowledge  and  technology  transfer  and  for 
intellectual and industrial property management; 

exploring new types of innovation services; 

fostering technology and knowledge through data archiving and transfer. 

Article 14 
Entrepreneurship and innovation culture 

Action in relation to entrepreneurship and innovation culture may include: 

(a) 

(b) 

(c) 

encouraging  entrepreneurial  mindsets,  skills  and  culture,  and  the  balancing  of 
entrepreneurial risk and reward, in particular for young entrepreneurs; 

encouraging  a  business  environment 
development and growth; 

favourable 

to 

innovation,  enterprise 

supporting  policy  development  and  cooperation  between  actors,  including  national 
and regional programme managers. 

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Article 15 
Enterprise and innovation related economic and administrative reform 

Action  regarding  to  enterprise  and  innovation  related  economic  and  administrative  reform 
may include: 

(a) 

(b) 

collecting  data,  analysing  and  monitoring  performance,  and  developing  and 
coordinating policy; 

contributing to the definition and promotion of competitiveness strategies related to 
industry and service sectors; 

(c) 

supporting mutual learning for excellence in national and regional administrations. 

SECTION 2 
IMPLEMENTATION 

Article 16 
Community financial instruments for SMEs 

1. 

Community financial instruments shall be operated with the aim to facilitate access 
to finance for SMEs in certain phases of their life cycle: seed, start-up, expansion and 
business  transfer.  Investments  made  by  SMEs  in  activities  such  as  technological 
development,  innovation,  and  technology  transfer  shall  be  included  in  the  scope  of 
the instruments. 

2. 

The instruments referred to in paragraph 1 shall be the following: 

(a) 

the High Growth and Innovative SME Facility (GIF); 

(b) 

the SME Guarantee (SMEG) Facility; 

(c) 

the Capacity Building Scheme (CBS). 

3. 

Implementation arrangements concerning the different instruments are laid down in 
Annex II. 

Article 17 
The GIF 

1. 

The GIF shall be operated by the EIF on behalf of the Commission. 

It shall carry out the following tasks: 

(a) 

contributing to the establishment and financing of SMEs and the reduction of 
the  equity and risk capital  market gap, which prevents SMEs from exploiting 
their growth potential; 

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(b) 

supporting  innovative  SMEs  with  high  growth  potential,  in  particular  those 
undertaking research, development and other innovation activities; 

2. 

The GIF shall consist of two windows: 

The  first  window,  called  GIF1,  shall  cover  early  stage  (seed  and  start  up) 
investments.  It  shall  target  investments  in  specialised  venture  capital  funds  such  as 
early  stage  funds,  funds  operating  regionally,  funds  focused  on  specific  sectors, 
technologies  or  RTD  and  funds  linked  to  incubators,  which  shall  in  turn  provide 
capital to SMEs. It may also co-invest in funds and investment vehicles promoted by 
business angels. 

The second window, called GIF2, shall cover expansion stage investments and shall 
invest  in  specialised  risk  capital  funds,  which  in  turn  shall  provide  quasi-equity  or 
equity  for  innovative  SMEs  with  high  growth  potential  in  their  expansion  phase. 
GIF2 investments shall avoid buy-out or replacement capital. 

GIF  may  invest  in  intermediaries  by  working,  where  appropriate,  with  national 
schemes aimed at developing small business investment companies. 

Article 18 
The SMEG Facility 

1. 

The SMEG Facility shall be operated by the EIF on behalf of the Commission. 

It shall carry out the following tasks: 

(a) 

providing  counter-guarantees  or,  where  appropriate,  co-guarantees  for 
guarantee schemes operating in the eligible countries; 

(b)  providing direct guarantees for any other appropriate financial intermediary. 

2. 

The SMEG Facility shall consist of four windows: 

The first window, (a) debt financing via loans or leasing, shall reduce the particular 
difficulties  SMEs  face  in  accessing  finance  due  to  the  perceived  higher  risk 
associated  with  investments  in  knowledge  related  activities  such  as  technological 
development,  innovation  and  technology  transfer  and  due  to  the  lack  of  sufficient 
collateral. 

The second window, (b) microcredit financing, shall encourage financial institutions 
to  play  a  greater  role  in  the  provision  of  loans  of  a  smaller  amount  which  would 
normally  involve  proportionately  higher  unit  handling  costs  for  borrowers  with 
insufficient  collateral.  In  addition  to  guarantees  or  counter-guarantees,  financial 
intermediaries  may  receive  grants  to  partially  offset  the  high  administrative  costs 
inherent in microcredit financing. 

The  third  window,  (c)  guarantees  for  equity  or  quasi-equity  fund  investments  in 
SMEs,  shall  include  investments  by  local  or  regional  funds  which  provide  seed 
capital  and/or  capital  in  the  start-up  phase,  as  well  as  mezzanine  finance  funds,  in 

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order  to  reduce  the  particular  difficulties  which  SMEs  face  because  of  their  weak 
financial structure, and those arising from business transfers. 

The fourth window, (d) securitisation of SME debt finance portfolios, shall mobilise 
additional debt financing for SMEs under appropriate risk-sharing arrangements with 
the targeted institutions. Support for those transactions shall be conditional upon an 
undertaking by the originating institutions to grant a significant part of the resulting 
liquidity  of  the  mobilised  capital  for  new  SME  lending  in  a  reasonable  period  of 
time. 

Article 19 
The CBS 

1. 

The  CBS  shall  be  operated  with  international  financial  institutions,  including  the 
European  Bank  for  Reconstruction  and  Development  (EBRD),  the  European 
Investment  Bank  (EIB),  the  EIF  and  the  Council  of  Europe  Development  Bank 
(CEB). 

It shall carry out the following tasks: 

(a) 

(b) 

improving  the  investment  and  technology  expertise  of  funds  investing  in 
innovative SMEs or SMEs with growth potential; 

stimulating  the  supply  of  credit  to  SMEs  by  enhancing  the  credit  appraisal 
procedures for SME lending. 

2. 

The CBS shall consist of the Seed Capital Action and the Partnership Action. 

The  Seed  Capital  Action  shall  provide  grants  to  stimulate  the  supply  of  venture 
capital for innovative SMEs and other SMEs with growth potential, including those 
in  the  traditional  economy,  through  support  for  seed  and  start-up  funds  or  similar 
organisations.  Grants  shall  be  provided  for  the  long-term  recruitment  of  additional 
staff with specific investment or technology expertise. 

The Partnership Action shall provide grants to financial intermediaries to cover the 
cost of technical assistance to improve their credit appraisal procedures for SME debt 
financing,  with  the  aim  of  stimulating  the  supply  of  finance  to  SMEs  in  countries 
with low banking intermediation. 

For  the  purpose  of  the  Partnership  Action  “low  intermediation”  shall  relate  to 
banking  in  countries  where  domestic  credit  as  a  percentage  of  the  country  Gross 
Domestic  Product  is  significantly  below  the  Community  average  according  to 
relevant data established by the European Central Bank or the International Monetary 
Fund. 

The Partnership action shall accompany the credit lines or the risk-sharing provided 
by  international  financial  institutions  to  partner  banks  or  financial  institutions  from 
the eligible countries. A significant part of the action shall relate to improving banks’ 
capacity  to  assess  the  commercial  viability  of  projects  with  a  significant  eco-
innovation component. 

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1. 

2. 

3. 

4. 

5. 

6. 

1. 

2. 

Article 20 
Services in support of business and innovation 

Services  in  support  of  business  and  innovation,  in  particular  for  SMEs,  shall  be 
encouraged. 

For the purpose of paragraph 1, financial support may be granted to network partners 
to provide, in particular: 

(a) 

Information, Feedback and Business Cooperation services; 

(b) 

Innovation, Technology and Knowledge transfer services; 

(c)  Services encouraging the participation of SMEs in the Community framework 

Programme for RTD. 

Details concerning these services are laid down in Annex III. 

The Commission shall select network partners through calls for proposals in relation 
to  the  different  services  referred  to  in  paragraph 2(a),  (b)  and  (c).  Following  those 
calls  for  proposals  the  Commission  may  establish  a  framework  partnership 
agreement  with  selected  network  partners  specifying  the  type  of  activities  to  be 
offered,  the  procedure  for  awarding  grants  to  them  and  the  general  rights  and 
obligations of each party. The framework partnership may cover the whole period of 
duration of the programme. 

In  addition  to  the  services  referred  to  under  paragraph 2(a),  (b)  and  (c),  the 
Commission may provide financial support for the implementation of other activities 
within  the  scope  of  the  framework  programme  following  calls  for  proposals 
restricted to the network partners. 

The  Commission  shall  support  the  network  partners  by  making  available  the 
appropriate  coordination  and  operational  support.  Organisations  established  in 
countries which are  not participating in the  programme  may  have  the  possibility  to 
benefit from this coordination and operational support. 

The  Commission  shall  ensure  that  network  partners  cooperate  with  each  other  and 
that, in the event that a network partner is unable to address an enquiry referred to it, 
that that partner refers the enquiry to a competent network partner. 

Article 21 
Business innovation support scheme 

The  Business  innovation  support  scheme  shall  foster  trans-national  cooperation 
between programmes in support of business innovation. 

A  group  of  cooperating  programmes  may  be  eligible  for  Community  support  when 
they: 

(a) 

are individually managed by public authorities at national or sub-national level; 
and 

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33 

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(b) 

together involve at least three participating countries; and 

(c) 

are coordinated or jointly operated. 

3. 

4. 

5. 

6. 

Following  Community  calls  for  proposals,  eligible  groups  of  cooperating 
programmes may be selected for support. 

Support may be granted to selected groups of cooperating programmes with a view 
to adding value to a whole group or to one or more specific actions under a group, to 
creating synergy between cooperating programmes, or to ensuring critical mass. 

Support may take the form of providing additional Community finance for selected 
groups of cooperating programmes by contributions: 

(a) 

(b) 

to  a  common  fund  for  the  support  of  action  under  a  group  of  cooperating 
programmes; or 

to  the  funding  of  specific  common  actions  under  a  group  of  cooperating 
programmes. 

Action supported from such a common fund, or specific common actions that have 
benefited from Community finance, shall be open to all those who would have been 
eligible to participate in the corresponding action under any cooperating programme 
in the group. 

Article 22 
Policy analyses, development and coordination with participating countries 

The  following  may  be  undertaken  in  support  of  policy  analyses,  development  and 
coordination with participating countries: 

(a) 

(b) 

(c) 

(d) 

1. 

studies,  data  collection,  surveys  and  publications,  based  where  possible  on  official 
statistics; 

meetings  of  experts,  including  from  public  institutions  and  interested  parties, 
conferences and other events; 

awareness raising, networking and other relevant activities; 

benchmarking  of  national  and  regional  performances,  and  work  on  good  practices 
including their dissemination and implementation. 

Article 23 
Twinning between authorities at national and regional level 

In order to allow for targeted administrative  co-operation, twinning actions may be 
established on the basis of calls for proposals to national contact points. These may 
subsequently  identify  a  lead  expert  or  a  team  of  experts  in  agreement  with  the 
relevant national or regional authorities. 

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34 

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2. 

3. 

The  Commission  shall  review  the  work  plan  established  by  the  lead  expert  or  the 
teams of experts and may award a grant to public administrations. 

The  twinning  actions  may  be  accompanied  by  central  support  services  from  the 
Commission. 

Article 24 
Programme support measures 

The Commission may undertake the following: 

(a) 

(b) 

(c) 

analysis  and  monitoring  of  competitiveness  and  sectoral  issues,  including  for  the 
Commission’s annual report on the competitiveness of European industry; 

preparation  of  impact  assessments  of  Community  measures  of  particular  relevance 
for the competitiveness of enterprises; 

evaluation of specific aspects or specific implementation measures in relation to this 
programme; 

(d) 

dissemination of appropriate information in relation to this programme. 

SECTION 3 
WORK PROGRAMME 

Article 25 
Work programme 

The  work  programme  shall  set  out  in  detail  the  objectives  and  priorities,  operational 
timetables as well as the rules for participation and the criteria for the selection and evaluation 
of the measures referred to in Articles 16 to 23. 

Chapter II 
The ICT policy support Programme 

SECTION 1 
OBJECTIVES AND FIELDS OF ACTION 

Article 26 
Establishment and objectives 

1. 

2. 

EN 

A  programme  in  support  of  information  and  communication  technologies  policy, 
hereinafter ‘the ICT Policy Support Programme’, is hereby established. 

The ICT Policy Support Programme shall provide for the following actions: 

35 

   EN 

 
(a) 

development  of  the  Single  European  information  space  and  strengthening  of 
the internal market for information products and services; 

(b) 

stimulation of innovation through a wider adoption of and investment in ICTs; 

(c) 

development  of  an  inclusive  information  society  and  more  efficient  and 
effective services in areas of public interest, and improvement of the quality of 
life. 

3. 

The actions referred to in paragraph 2 shall be carried out with a particular emphasis 
on promotion and awareness raising of the opportunities and benefits that ICTs bring 
to citizens and businesses. 

Article 27 
The Single European information space 

Action in relation to the Single European information space shall aim at: 

(a) 

(b) 

(c) 

ensuring  seamless  access  to  ICT-based  services  and  establishing  appropriate 
framework  conditions  for  rapid  and  appropriate  take  up  of  converging  digital 
communications and services, including interoperability, security and trust aspects; 

improving  the  conditions  for  the  development  of  digital  content  with  a  special 
emphasis on multilingualism and cultural diversity; 

monitoring the European Information Society, through data collection and analysis of 
the development, availability and use of digital communication services including the 
growth  of  internet,  access  to  broadband  as  well  as  developments  of  content  and 
services. 

Article 28 
Innovation through the wider adoption of and investment in ICTs 

Action in relation to innovation through the wider adoption of and investment in ICTs shall 
aim at: 

(a) 

(b) 

(c) 

promoting  innovation  in  processes,  services  and  products  enabled  by  ICTs,  in 
particular  in  SMEs  and  public  services,  taking  into  account  the  necessary  skills 
requirements; 

facilitating  public  and  private  interaction  as  well  as  partnerships  for  accelerating 
innovation and investments in ICTs; 

promoting and raising awareness of the opportunities and benefits that ICTs bring to 
citizens  and  businesses  and  stimulating  debate  at  the  European  level  on  emerging 
ICT trends. 

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Article 29 
An inclusive Information Society, more efficient and effective services in areas of public 
interest and improved quality of life 

Actions in relation to the development of an inclusive information society and more efficient 
and effective services in areas of public interest, and the improvement of quality of life shall 
aim at: 

(a) 

(b) 

(c) 

widening ICT accessibility and digital literacy; 

reinforcing  trust  and  confidence  as  well  as  support  of  ICT  use,  addressing,  in 
particular, privacy concerns; 

improving  the  quality,  efficiency  and  availability  of  electronic  services  in  areas  of 
public  interest  and  for  ICT  enabled  participation,  including  interoperable  pan-
European  or  cross  border  public  services  as  well  as  the  development  of  common 
interest building blocks and sharing good practices. 

SECTION 2 
IMPLEMENTATION 

Subsection 1 
Implementation of projects, best practice actions and thematic 
networks 

Article 30 
General 

The  ICT  policy  Support  Programme  may  be  implemented  by  projects,  best  practice  actions 
and  thematic  networks,  including  actions  for  wide  scale  testing  and  demonstration  of 
innovative public services with a pan-European dimension. 

Projects,  best  practice  actions  and  thematic  networks  shall  be  aimed  at  stimulating  the 
deployment and best use of innovative ICT based solutions, in particular for services in areas 
of  public  interest.  Community  support  shall  also  facilitate  the  coordination  and  the 
implementation of actions for developing the Information society across the Member States. 

Article 31 
Projects, best practice actions and thematic networks 

1. 

The following shall be supported: 

(a) 

projects including implementation, pilot and market replication projects;. 

(b)  best  practice  actions  to  spread  knowledge  and  share  experience  across  the 

Community. 

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(c) 

thematic  networks  bringing  together  a  variety  of  stakeholders  around  a  given 
objective, so as to facilitate co-ordination activities and transfer of knowledge. 

2. 

The  projects  shall  be  aimed  at  promoting  innovation,  technology  transfer  and  the 
dissemination of new technologies that are ready for market uptake. 

The  Community  may  award  a  grant  to  the  budget  of  the  projects  referred  to  in 
paragraph 1(a) corresponding to a maximum of 50 % of their total cost. Public sector 
bodies may be reimbursed on the basis of 100 % of additional costs. 

3. 

The  best  practice  actions  shall  be  conducted  in  clusters  addressing  specific  themes 
and linked through thematic networks 

The  Community  contribution  for  the  measures  set  out  in  paragraph 1(b)  shall  be 
limited  to  direct  costs  deemed  necessary  or  appropriate  for  achieving  the  specific 
objectives of the action. 

4. 

The thematic networks may be linked to best practice actions. 

Support for thematic activities shall be granted towards the additional eligible costs 
of  co-ordinating  and  implementing  the  network.  The  Community  participation  may 
cover the additional eligible costs of those measures. 

Subsection 2 
Other provisions 

Article 32 
Applications 

Applications for Community support shall provide, where appropriate, a financial plan listing 
all  the  components  of  the  funding  of  the  projects,  including  the  financial  support  requested 
from the Community, and any other requests for support from other sources. 

Article 33 
Policy analyses, development and coordination with participating countries 

The  following  shall  be  undertaken  in  support  of  policy  analyses,  development  and 
coordination with participating countries: 

(a) 

(b) 

(c) 

studies,  data  collection,  surveys,  and  publications,  based  where  possible  on  official 
statistics; 

meetings  of  experts  from  public  institutions  and  interested  parties,  conferences  and 
other events; 

awareness  raising,  networking  and  other  relevant  activities  between  experts  from 
public institutions and interested parties; 

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(d) 

benchmarking of national performances, and work on good practices including their 
dissemination and implementation. 

Article 34 
Promotion, communication, information sharing and dissemination 

1. 

The  following  shall  be  undertaken  in  support  of  the  implementation  of  the 
programme or the preparation of future activities: 

(a) 

promotion, dissemination, information and communication activities; 

(b) 

exchange  of  information,  knowledge  and  experience,  conferences,  seminars, 
workshops or other meetings and the management of clustered activities. 

2. 

Measures  devoted  to  the  commercialisation  of  products,  process  or  services, 
marketing activities and sales promotion shall not be eligible for support. 

Article 35 
Projects of common interest: procurement based on technical specifications elaborated 
in coordination with Member States 

Where  it  is  necessary,  in  order  to  achieve  the  objectives  of  the  ICT  Policy  Support 
Programme,  and  where  there  is  a  clear  common  interest  of  Member  States  as  concerns 
European-level deployment of products, services, or of core service components or building 
blocks,  the  Commission  may  establish  projects  of  common  interest  comprising  necessary 
technical and organisational tasks. 

The Commission shall, in coordination with the Member States, agree on common technical 
specifications  and  implementation  schedules  for  such  projects.  On  the  basis  of  the  agreed 
common  technical  specifications  and  implementation  schedules,  the  Commission  shall  issue 
calls  for  tender  for  implementation  of  the  projects  concerned.  The  procurement  shall  be 
carried out solely by the Commission on the basis of the rules applicable to procurement by 
the Community. 

SECTION 3 
WORK PROGRAMME 

Article 36 
Work programme 

The work programme shall set out in detail the objectives and priorities, the measures needed 
for their implementation, operational timetables and determine the criteria for the evaluation 
and selection of the implementing measures in line with the objectives set out in Article 26. 

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Chapter III 
The Intelligent Energy-Europe Programme 

SECTION 1 
OBJECTIVES AND FIELDS OF ACTION 

Article 37 
Establishment and objectives 

1. 

A programme in support of energy efficiency, renewable energy sources and energy 
diversification,  hereinafter  ‘the  Intelligent  Energy  –  Europe  Programme’,  is  hereby 
established. 

2. 

The Intelligent Energy – Europe Programme shall provide for action, in particular: 

(a) 

to foster energy efficiency and the rational use of energy resources; 

(b) 

(c) 

to  promote  new  and  renewable  energy  sources  and  to  support  energy 
diversification; 

to promote energy efficiency and the use of new and renewable energy sources 
in transport. 

Article 38 
Operational objectives 

In operational terms the Intelligent Energy – Europe Programme shall aim at: 

(a) 

(b) 

providing  the  elements  necessary  for  the  improvement  of  sustainability,  the 
development of the potential of cities and regions, as well as for the preparation of 
the legislative measures needed to attain the related strategic objectives; developing 
the  means  and  instruments  to  follow  up,  monitor  and  evaluate  the  impact  of  the 
measures adopted by the Community and its Member States in the fields addressed 
by that programme; 

boosting  investment  across  the  Member  States  in  new  and  best  performing 
technologies in the fields of energy efficiency, renewable energy sources and energy 
diversification,  including  in  transport,  by  bridging  the  gap  between  the  successful 
demonstration of innovative technologies and their effective market uptake in broad 
scale in order to leverage public and private sector investment, promote key strategic 
technologies,  bring  down  costs,  increase  market  experience  and  contribute  to 
reducing  the  financial  risks  and  other  perceived  risks  and  barriers  that  hinder  this 
type of investment; 

(c) 

removing the non-technological barriers to efficient and intelligent patterns of energy 
production  and  consumption  by  promoting  institutional  capacity  building  including 
the  local  and  regional  level,  by  raising  awareness,  notably  through  the  educational 

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40 

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system,  by  encouraging  exchanges  of  experience  and  know-how  among  the  main 
players concerned, business and citizens in general and by stimulating the spread of 
best  practices  and  best  available  technologies,  notably  by  means  of  promotion  at 
Community level. 

Article 39 
Energy efficiency and rational use of resources (SAVE) 

Action to foster energy efficiency and the rational use of energy resources may include: 

(a) 

improvement of energy efficiency and the rational use of energy, in particular in the 
building and industry sectors, with the exception of actions covered by Article 41; 

(b) 

supporting the preparation of legislative measures and their application. 

Article 40 
New and renewable resources (ALTENER) 

Action to promote new and renewable energy resources may include: 

(a) 

(b) 

promoting  new  and  renewable  energy  sources  for  centralised  and  decentralised 
production  of  electricity  and  heat  and  supporting  the  diversification  of  energy 
sources, with the exception of actions covered by Article 41; 

integrating  new  and  renewable  energy  sources  into  the  local  environment  and  the 
energy systems; 

(c) 

supporting the preparation of legislative measures and their application. 

Article 41 
Energy in transport (STEER) 

Action  to  promote  energy  efficiency  and  the  use  of  new  and  renewable  energy  sources  in 
transport may include: 

(a) 

(b) 

(c) 

supporting 
diversification of fuels; 

initiatives  relating 

to  all  energy  aspects  of 

transport,  and 

the 

promoting renewable fuels and energy efficiency in transport; 

supporting the preparation of legislative measures and their application. 

Article 42 
Horizontal initiatives 

Action  to  combine  several  of  the  specific  fields  referred  to  in  Articles 39,  40  and  41  or 
relating to certain Community priorities may include: 

(a) 

integrating energy efficiency and renewable energy sources in several sectors of the 
economy; 

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(b) 

combining various instruments, tools and actors within the same action or project. 

SECTION 2 
IMPLEMENTATION 

Article 43 
Promotion and dissemination projects 

The following shall be supported: 

(a) 

(b) 

(c) 

(d) 

strategic  studies  on  the  basis  of  shared  analysis  and  regular  monitoring  of  market 
developments and energy trends for the preparation of future legislative measures or 
for  the  review  of  existing  legislation,  including  as  regards  the  functioning  of  the 
internal energy market, for the implementation of the medium and long term strategy 
in the energy field to promote sustainable development, as well as for the preparation 
of  long-term  voluntary  commitments  with  industry  and  other  stake-holders  and  for 
the development of standards, labelling and certification systems; 

creation, enlargement or reorganisation of structures and instruments for sustainable 
energy  development,  including  local  and  regional  energy  management,  and  the 
development of adequate financial products and market instruments; 

promotion of sustainable energy systems and equipment in order to further accelerate 
their  penetration  of  the  market  and  stimulate  investment  to  facilitate  the  transition 
from  the  demonstration  to  the  marketing  of  more  efficient  technologies,  awareness 
campaigns  and  the  creation  of  institutional  capabilities,  in  particular  aimed  at 
implementing the clean development mechanism and joint implementation under the 
Kyoto Protocol; 

development  of  information,  education  and  training  structures,  the  utilisation  of 
results, the promotion and dissemination of know-how and best practices involving 
all  consumers,  dissemination  of  results  of  the  actions  and  projects  and  cooperation 
with the Member States through operational networks; 

(e) 

monitoring  of  the  implementation  and  the  impact  of  Community  legislative  and 
support measures. 

Article 44 
Market replication projects 

Community  funding  shall  be  for  actions  and  projects  concerned  with  the  first  market 
replication of just-proven technologies of Community relevance, designed to promote, with a 
view to their broader utilisation within the Member States, either under different economic or 
geographical  conditions  or  with  technical  modifications,  innovatory  techniques  processes  or 
products  which  have  already  been  technically  demonstrated  with  success  but,  owing  to 
residual risk, have not yet penetrated the market, so that the Community shares the risk that is 
involved  in  the  economic  exploitation  of  the  results  of  research,  technological  development 
and demonstration activities. 

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42 

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SECTION 3 
WORK PROGRAMME 

Article 45 
Work programme 

The work programme shall set out the rules for each of the specific actions and measures for 
implementing the objectives laid down in Article 37, the implementation arrangements as well 
as  the  funding  arrangements  and  the  rules  for  participation.  It  shall  determine  the  selection 
criteria, reflecting the objectives of the Intelligent Energy - Europe Programme, and shall lay 
down the indicative timetable for the implementation of the work programme, in particular as 
regards the contents of the calls for proposals. 

TITLE III 
GENERAL AND FINAL PROVISIONS 

Article 46 
Committees 

1. 

The Commission shall be assisted by the following Committees: 

(a) 

(b) 

(c) 

for the Entrepreneurship and Innovation Programme, by a committee called the 
EIP Management Committee (EIPC); 

for  the  ICT  Policy  Support  Programme,  by  a  committee  called  the  ICT 
Management Committee (ICTC); 

for  the  Intelligent  Energy  Europe  Programme,  by  a  committee  called  the  IEE 
Management Committee (IEEC). 

2. 

Where 
to 
Decision 1999/468/EC shall apply, having regard to Article 8 thereof. 

this  paragraph,  Articles  4  and  7  of 

is  made 

reference 

The period laid down in Article 4(3) of Decision 1999/468/EC shall be three months. 

3. 

The Committees referred to in paragraph 1 shall adopt their rules of procedure. 

Decision 96/413/EC is repealed. 

Article 47 
Repeal 

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43 

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Article 48 
Transitional measures 

The implementation measures in pursuance of the objective set out in Article 27(b) shall be 
carried out under Decision …./ …/EC of the European Parliament and of the Council34 until 
31 December 2008. 

Thereafter  the  actions  which  are  initiated  under  Decision …./  …/EC  on  or  before 
31 December 2008  shall  be  administered  in  conformity  with  that  Decision,  except  that  the 
committee  established  by  that  Decision  shall  be  replaced  by  the  committee  established  in 
Article 46(1)(b) of this Decision. 

Article 49 
Entry into force 

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

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

34 

OJ L , , p. . 

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44 

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ANNEX I 
Indicative budgetary breakdown 

The indicative budgetary allocations for the specific programmes are the following: 

(a) 

(b) 

(c) 

EUR 2 631  million  for  the  pursuance  of  the  Entrepreneurship  and  Innovation 
Programme’),  of  which  up  to  520 million  will  be  implemented  to  promote  eco-
innovation; 

EUR 801.6 million for the pursuance of the ICT Policy support Programme; 

EUR 780 million for the pursuance of ‘the Intelligent Energy – Europe Programme’. 

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45 

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ANNEX II 
Implementation arrangements for the Community financial instruments for SMEs 
laid down in Article 16 

Arrangements common to all Community financial instruments for SMEs 

Budget 

1. 

A. 

The  budgetary  allocation  shall  cover  the  full  cost  of  each  instrument,  including  payment 
obligations towards financial intermediaries such as losses from guarantees, management fees 
for the EIF and the international financial institutions managing the EU resources, as well as 
any other eligible costs or expenses. 

The  transfer  of  resources  between  instruments  shall  be  kept  flexible  in  order  to  respond  to 
new developments and changing market conditions occurring during the programme. 

B. 

Trust accounts 

Separate  Trust  accounts  shall  be  set  up  by  the  EIF  and  the  relevant  international  financial 
institutions  to  hold  the  budgetary  funds  relating  to  each  instrument.  These  accounts  may  be 
interest-bearing. Interest received until 31 December 2013 may be added to the resources and 
can be used for the purpose of the respective instrument. 

Payments made by the trustee to honour payment obligations towards financial intermediaries 
shall be debited from the corresponding Trust account. Amounts to be paid back by the trustee 
to the general budget of the European Communities, the trustee’s management fees and other 
eligible  costs  and  expenses  shall  be  debited  from  the  Trust  account  in  accordance  with  the 
terms set out in the agreements between the Commission and the trustee. The Trust account 
shall be credited with  receipts originating from  the Commission, interest and, depending  on 
the  instrument,  with  the  proceeds  from  realised  investments  (GIF)  or  with  commitment  and 
guarantee fees as well as other receivables (SMEG Facility). 

After 31 December 2013, any balances on the Trust accounts, other than funds committed and 
not yet debited and funds reasonably required to cover eligible  costs and expenses, shall be 
returned to the general budget of the European Communities. 

C. 

Fees 

An  appropriate  fee  policy  shall  apply  to  the  operation  of  the  instruments.  The  fees  shall  be 
established by the Commission in line with market practices and shall take into account: 

– 

– 

– 

– 

the  overall  duration  of  the  respective  instrument  and  the  corresponding  monitoring 
requirements which extend beyond the budgetary commitment period; 

the eligible countries; 

the degree of novelty and complexity of the instrument; 

the  associated  number  of  activities  such  as  market  research,  identification  of  and 
negotiations  with  intermediaries,  structuring  of  deals,  closing,  monitoring  and 
reporting. 

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46 

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D. 

Visibility 

Each intermediary shall provide an appropriate level of visibility to the support given by the 
Community. 

2. 

A. 

Implementation of the High Growth and Innovative SME Facility (GIF) 

Introduction 

Fiduciary, management and monitoring aspects shall be agreed between the Commission and 
the EIF. The Commission shall apply specific guidelines on treasury management. 

B. 

Intermediaries 

GIF1  and  GIF2  shall  target  commercially  oriented  intermediaries  managed  by  independent 
teams  combining  the  appropriate  mix  of  skills  and  experience.  The  intermediaries  shall  be 
selected  in  conformity  with  best  business  and  market  practices  in  a  transparent  and  non-
discriminatory  manner,  avoiding  any  conflict  of  interest  with  the  aim  of  working  through  a 
wide range of specialised funds or similar structures. 

C. 

Eligibility criteria 

GIF shall be complementary to the own-resource based activities of the European Investment 
Bank  Group  including  the  EIF  by  adopting  an  investment  policy  involving  a  higher  risk 
profile, both as regards intermediary funds and their investment policies. 

GIF 1 

GIF 1 shall invest in intermediary venture capital funds investing in SMEs up to 10 years old, 
typically  starting  from  pre-A  (seed)  and  A  (early  stage)  rounds  and  providing  follow-on 
investment  where  appropriate.  The  maximum  aggregate  investment  in  an  intermediary 
venture capital fund shall be 25 % of the total capital held by the relevant fund, or up to 50 % 
for new funds likely to have a particularly strong catalytic role in the development of venture 
capital  markets  for  a  specific  technology  or  in  a  specific  region  as  well  as  business  angels’ 
investment  vehicles.  The  maximum  aggregate  investment  in an  intermediary  venture  capital 
fund shall be 50 % in those cases where the fund’s investment focus is on SMEs active in eco-
innovation. At  least 50 % of the capital invested in any fund  shall be provided by  investors 
operating  in  circumstances  corresponding  to  normal  market  conditions  (under  the  “market 
economy investor principle”), irrespective of the legal nature and ownership structure of the 
investors  providing  this  part  of  the  capital.  No  commitment  in  a  single  fund  shall  exceed 
EUR 30 million.  GIF1  may  co-invest  with  EIF  own  resources  or  resources  under  the  EIB 
mandate or other resources managed by the EIF. 

GIF 2 

GIF 2 shall invest in intermediary risk capital funds investing in SMEs, typically in B and C 
(expansion) rounds. The usual maximum aggregate investment in an intermediary risk capital 
fund shall be 15 % of the total capital held by the relevant fund, or up to 25 % for: 

– 

new  funds  likely  to  have  a  particularly  strong  catalytic  role  in  the  development  of 
risk capital markets for a specific technology or in a specific region; 

EN 

47 

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– 

– 

funds whose main investment focus is on SMEs active in eco-innovation; 

funds set up by first time management teams. 

In the case of co-investment with EIF own resources or resources under the EIB mandate or 
other resources managed by the EIF, the maximum GIF2 contribution shall be 15 %. At least 
50 %  of  the  capital  invested  in  any  fund  shall  be  provided  by  investors  operating  in 
circumstances  corresponding  to  normal  market  conditions  (under  the  “market  economy 
investor principle”), irrespective of the legal nature and ownership structure of the investors 
providing  this  part  of  the  capital.  No  commitment  in  a  single  fund  shall  exceed 
EUR 30 million. 

D. 

Investment pari passu 

The  investment  made  under  the  GIF  in  an  intermediary  fund  shall  rank  pari  passu with  the 
private investors. 

E. 

Life of the facility 

The  GIF  shall  be  a  long-term  facility  which  will  usually  take  5  to  12  year  positions  in 
intermediary funds. In any case, life of investments under the GIF shall not exceed 19 years 
from the time of signature of the delegation agreement between the Commission and the EIF. 
Suitable  exit  strategies  shall  need  to  be  defined  in  the  agreements  between  the  EIF  and  the 
intermediaries. 

F. 

Realisation of investments 

As most of the investments to be made under the GIF shall be in unquoted, illiquid entities, 
the realisation of those investments shall be based on the distribution of the proceeds received 
by the intermediary from the sale of their investments in SMEs. 

G. 

Reinvestment of proceeds from realised investments 

including  dividends  and 

Proceeds, 
the  EIF  until 
31 December 2013, shall be added to the resources of the Facility and used for the purpose of 
the Facility. 

reimbursements 

received  by 

3. 

A. 

Implementation of the SME Guarantee (SMEG) Facility 

Introduction 

Fiduciary, management and monitoring aspects shall be agreed between the Commission and 
the EIF. The Commission shall apply specific guidelines on treasury management. 

B. 

Intermediaries 

Intermediaries shall be chosen among the guarantee schemes already operating or which may 
be  established  in  the  eligible  countries,  including  mutual  guarantee  organisations,  and  any 
other  appropriate  financial  institution.  Selection  procedures  shall  be  transparent  and  non-
discriminatory, avoiding any conflict of interest. 

Intermediaries shall be selected in conformity with best market practice with regard to: 

EN 

48 

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– 

– 

– 

the effect on the volume of financing (debt, equity or quasi equity) made available to 
SMEs, and/or 

the effect on SMEs’ access to finance, and/or 

the effect on risk-taking in SME financing by the intermediary concerned. 

C. 

Eligibility 

The financial criteria governing the eligibility under the SMEG Facility shall be determined 
for each intermediary on the basis of their activities, with the aim of reaching as many SMEs 
as possible. These rules shall reflect market conditions and practices in the relevant territory. 

Financing for the acquisition of tangible and intangible assets, including innovation activities, 
technological development and the acquisition of licenses shall be eligible. 

Criteria  relating  to  the  fourth  SMEG  window,  (d)  securitisation  of  SME  debt  financing 
portfolios,  include  individual  and  multi-seller  transactions  as  well  as  multi-country 
transactions.  Eligibility  shall  be  based  on  best  market  practices,  in  particular  regarding  the 
credit quality and risk diversification of the securitised portfolio. 

D. 

Terms of the guarantees 

The guarantees issued by the EIF on behalf of the Commission under the (a) debt financing, 
(b) microcredit, and (c) equity or quasi-equity  windows  of  the SMEG Facility shall cover a 
part  of  the  risk  taken  by  the  financial  intermediary  in  a  financing  portfolio  of  individual 
transactions.  The  fourth  window  of  the  SMEG  Facility,  (d)  securitisation,  shall  involve 
sharing  the  risk  of  certain  securitised  tranches  which  are  senior  to  the  first  loss  piece  or 
leaving the risk of a significant part of the first loss piece to the originator and sharing the risk 
of the remaining part. 

The guarantees given by the EIF relating to the (a) debt financing, (b) microcredit, (c) equity 
or  quasi  equity  windows  of  the  SMEG  Facility  shall  usually  rank  pari  passu  with  the 
guarantees or, where appropriate, with the financing given by the intermediary. 

The EIF may charge to a financial intermediary  a fee  calculated on  amounts committed  but 
not used according to an agreed schedule (“commitment fees”)  as well as guarantee fees. It 
may also charge fees related to individual securitisation transactions. 

E. 

EIF's capped maximum cumulative losses 

The cost of the facility to the general budget of the European Communities shall be capped so 
that it does not, under any circumstances, exceed the budgetary allocation made available to 
the EIF under this facility. There shall be no contingent liability on the budget. 

The  EIF's  obligation  to  pay  its  share  of  the  intermediary’s  losses  shall  continue  until  the 
cumulative  amount  of  payments  made  to  cover  losses  from  a  specific  financing  portfolio, 
reduced  where  appropriate  by  the  cumulative  amount  of  corresponding  loss  recoveries, 
reaches a pre-agreed amount, after which the EIF's guarantee shall be automatically cancelled. 

EN 

49 

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F. 

Loss recoveries and other revenue payable to the Trust Account 

Any loss recoveries received from a given intermediary shall be credited to the Trust account 
and shall be taken into account in the calculation of the EIF’s capped maximum cumulative 
losses towards the intermediary. Any other revenues, such as commitment fees and guarantee 
fees, shall be credited to the Trust account and, if received prior to 31 December 2013, shall 
be added to the resources of the Facility. 

G. 

Duration of the Facility 

Individual SME guarantees may have a maturity of up to 10 years. 

4. 

A. 

Implementation of the Capacity Building Scheme (CBS) 

Introduction 

Implementation  details  for  the  Seed  Capital  action  and  the  Partnership  action,  including 
fiduciary, management and monitoring aspects, shall be subject to an agreement between the 
Commission and the EIF or the relevant international financial institutions. 

Intermediaries shall be selected in conformity with best market practices. 

Selection  procedures  for  the  provision  of  technical  assistance  shall  be  transparent  and  non-
discriminatory, avoiding any conflict of interest. 

B. 

Seed Capital action 

The  Seed  Capital  action  shall  be  operated  on  a  trust  basis.  The  budgetary  allocation  shall 
cover the full cost of the action, including its management fees and any other eligible costs or 
expenses.  The  grants  provided  shall  support  investment  funds  which  include  seed  capital  in 
their global investment programme, by covering part of the resulting management costs. 

C. 

Partnership action 

The  Partnership  action  shall  be  operated  through  the  EIF  or  relevant  international  financial 
institutions.  It  shall  cover  technical  assistance,  management  fees  and  other  eligible  costs 
supporting capacity building. 

5. 

Evaluation 

the  Growth  and  Employment 

The  external  evaluations  shall  be  carried  out  by  independent  experts,  taking  account  of  the 
impact  of 
Initiative  established  under  Council 
Decision 98/347/EC and of the Multiannual Programme for enterprise and entrepreneurship, 
and  in  particular  for  small  and  medium-sized  enterprises  (SMEs)  established  by  Council 
Decision 2000/819/EC.  The  external  evaluations  shall  assess  the  impact  of  the  Community 
financial  instruments  for  SMEs  and  provide  a  qualitative  analysis  of  achieved  results,  in 
particular, by assessing the leverage effect and cost-benefit of each instrument. The evaluation 
reports shall present statistical data, including: 

– 

for the GIF, the number of SMEs reached and the number of jobs created; 

EN 

50 

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– 

– 

– 

– 

for  the  SMEG  Facility,  the  total  volume  of  loans  provided  by  the  financial 
intermediaries to SMEs and the number of SMEs reached; 

for the Seed Capital action, the number of organisations supported and the volume of 
seed capital investments; 

for  the  Partnership  action,  the  number  of  intermediaries  supported  and  SMEs 
reached; 

any specific outputs relating to eco-innovation. 

Appropriate visibility shall be given to the results and lessons learned from the reports of the 
external evaluators and to the sharing of best practices among stakeholders. 

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ANNEX III 
Details of the services in support of business and innovation  
laid down in Article 20 

a. 

Information, Feedback and Business cooperation services 

– 

– 

– 

– 

– 

– 

– 

disseminating  information  relating  to  the  functioning  and  opportunities  of  the 
internal market for goods and services; 

promoting  pro-actively  Community  programmes,  initiatives  and  policies 
relevant for SMEs. 

operating tools to measure the impact of existing legislation on SMEs; 

contributing  to  the  carrying-out  of  impact  assessment  studies  of  the 
Commission; 

operating  other  appropriate  means  to  engage  SMEs  in  the  European  policy-
making process. 

assisting SMEs to develop cross-border activities; 

supporting SMEs to find business partners through appropriate tools. 

b. 

Innovation, technology and knowledge transfer services 

– 

– 

– 

– 

– 

disseminating  information  and  raising  awareness  regarding  innovation-related 
policies, legislation, and support programmes; 

engaging in the dissemination and exploitation of research results; 

providing  brokerage  services  for  technology  and  knowledge  transfer,  and  for 
partnership building between innovation actors; 

stimulating the capacity of firms, especially SMEs to innovate; 

facilitating linkage to other innovation services. 

c. 

Services  encouraging 
FrameworkProgramme for RTD 

the  participation  of  SMEs 

in 

the  Community 

– 

– 

– 

raising  awareness  among  SMEs  regarding  the  Community  Framework 
Programme for RTD; 

helping  SMEs  to  identify  their  RTD  needs  and  to  find  partners  with  similar 
RTD needs; 

assisting  SMEs  in  the  preparation  and  coordination  of  project  proposals  for 
participation in the Community Framework Programme for RTD. 

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LEGISLATIVE FINANCIAL STATEMENT 

1.  NAME OF THE PROPOSAL : 

Proposal for a Decision of the European Parliament and of the Council establishing a 
Competitiveness and Innovation framework Programme (2007-2013) 

2.  ABM / ABB FRAMEWORK 

Policy area:  Enterprise and Industry 

Activities: 

Competitiveness, Industrial Policy, Innovation and Entrepreneurship 

Policy area:  Economic and Financial Affairs 

Activities: 

Operations and Financial Instruments 

Policy area: 

Information Society and Media 

Activities: 

eEurope 

Policy area:  Environment 

Activities: 

Environmental programmes and projects 

Policy area:  Energy and Transport 

Activities: 

“Intelligent Energy Europe” Programme 

3.  BUDGET LINES 

3.1. Budget lines (operational lines and related technical and administrative assistance 

lines (ex- B.A lines)) including headings : 

Headings within the Financial Perspectives 2007-2013 

1. Sustainable Growth;  

1a) Competitiveness for growth and employment  

A  new  budget  structure  will  be  defined  after  approval  of  the  Interinstitutional 
agreement on the Financial Perspective 2007-2013. For information, the current 
budget  lines  corresponding  to  the  activities  that  will  be  carried  on  in  the 
Competitiveness and Innovation Programme are listed below. 

Economic and financial affairs 

01 04 05 (Programme for enterprise and entrepreneurship – improvement of the 
financial environment for SMEs, Council Decision 2000/819/EC); 

EN 

53 

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Enterprise and Industry 

02  02  03  01  (Multiannual  Programme  for  enterprise  and  entrepreneurship,  and 
particularly for SMEs, Council Decision 2000/819/EC); 

02 02 03 02 Support for SMEs in the New Financial Environment 

02 02 03 03 Pilot project: Transfer of expertise through mentoring  

02 03 01 Research and Innovation 

02 03 02 Support for the coherent development of policies 

02  05  (Competitiveness  and  sustainable  development,  Council  Decision 
96/419/EC);  

02  01  04  03  Industrial  competitiveness  policy  for  the  European  Union  — 
Expenditure on administrative management 

02  01  04  04  (Programme  for  enterprise  and  entrepreneurship,  administrative 
support, Council Decision 2000/819/EC);  

02 01 05 01Expenditure related to research staff 

02 01 05 02 Research extern al staff 

02 01 05 03 Other management expenditure for research 

Information Society and Media 

09 030100 Modinis 

09 030200 Promotion of the European digital presence in global networks 

09  010402  Promotion  of  the  European  digital  presence  in  global  networks  - 
Expenditure on administrative management 

09 030400 Trans-European telecommunications networks 

09  010403  Trans-European  telecommunications  networks  -  Expenditure  on 
administrative management 

Environment 

07 03 04 LIFE III (Financial Instrument for the Environment — 2000 to 2006) 
— Projects on Community territory—Part II (environmental protection) 

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54 

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07  01  04  03  LIFE  III  (2000-2006)  –  part  II  (environmental  protection)  – 
expenditure on administrative management 

Energy and Transport 

ABB 06 04 01: "Intelligent Energy for Europe" Programme (2003-2006) 

ABB  06  01  04  08:  "Intelligent  Energy  for  Europe"  Programme  (2003-2006)  - 
Expenditure on administrative management 

ABB 06 01 04 30: “Intelligent Energy Executive Agency 

3.2. Duration of the action and of the financial impact: 

Period of application: 1st January 2007 – 31st December 2013 

Payments from the EU budget may be made beyond 31st December 2013 

3.3. Budgetary characteristics (add rows if necessary) : 

Budget line 

Type of 
expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

Operational 
expenditure 
Entrepreneurship 
and 
programme 

Innovation 

Non-
comp 

Operational 
expenditure 
Policy 
programme 

ICT 
support 

Non-
comp 

Operational 
expenditure 
Intelligent  Energy 
Europe Programme 

Non-
comp 

Diff1  YES 

YES 

YES 

Diff 

YES 

YES 

YES 

Diff 

YES 

YES 

YES 

Administrative 
expenditure  for  the 
framework 
Programme 

Non-
comp 

Non-
Diff 

YES 

YES 

YES 

As of 2007: 
1a 

As of 2007: 
1a 

As of 2007: 
1a  

As of 2007: 
1a 

1 

Differentiated appropriations 

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55 

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4.  SUMMARY OF RESOURCES 

4.1. Financial Resources (current prices) 

4.1.1.  Summary of commitment appropriations (CA) and payment appropriations (PA) 

EUR million (to 3 decimal places) 

Section 
no. 

Expenditure type 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

Operational expenditure2 

Commitment 
Appropriations (CA) 

8.1 

a 

Payment  Appropriations 
(PA) 

b 

385,700 

423,900 

516,000 

561,000 

630,000 

677,000 

733,000 

3926,600 

173,800 

263,700 

382,000 

476,300 

625,000 

637,600 

700,8003 

3926,600 

667,400 

Administrative 
expenditure  within 
reference amount4 

Technical 
& 
administrative  assistance 
(NDA) 

8.2.4 

c 

27,000 

30,000 

37,000 

40,000 

47,000 

50,000 

55,000 

286,000 

TTOOTTAALL  RREEFFEERREENNCCEE  AAMMOOUUNNTT  

Commitment 
Appropriations 

Payment 
Appropriations 

a
+
c 

b
+
c 

Administrative 
not 
included 
amount6 

expenditure 
in  reference 

412,700 

453,900 

553,000 

601,000 

677,000 

727,000 

788,000 

4212,600 

200,800 

293,700 

419,000 

516,300 

672,000 

687.600 

722,400 

4212,600 

700,8005 

Human 
associated 
(NDA) 

resources 

and 
expenditure 

8.2.5 

d 

3,240 

3,240 

3,240 

3,240 

3,240 

3,240 

3,240 

22,680 

2 
3 
4 

5 
6 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 
Beyond 2013. 
Expenditure  within  article  xx  01  04  of  Title  xx.  Note:  part  of  this  amount  should  finance  the 
Executive agency, subject to a preliminary cost-benefit study. 
Beyond 2013. 
Expenditure  within  chapter  xx  01  other  than  articles  xx  01  04  or  xx  01  05.  Additional  costs 
compared to current expenditure for the implementation of the Programme’s elements as existing 
today. 

EN 

56 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
 
 
 
 
                                                 
Administrative  costs,  other 
than  human  resources  and 
not 
associated 
included in reference amount 
(NDA) 

costs, 

8.2.6 

e 

- 

- 

- 

- 

- 

- 

- 

- 

Total indicative financial cost of intervention     

TOTAL CA including cost 
of Human Resources 

a+c+d+e 

TOTAL PA including cost 
of Human Resources 

b+c+d+e 

415,940 

457,140 

556,240 

604,240 

680,240 

730,240 

791,240 

4235,280 

204,040 

296,940 

422,240 

519,540 

675,240 

690,840 

725,640
700,8007 

4235,280 

4.1.2.  Compatibility with Financial Programming 

The proposal is compatible with financial programming as proposed by the 
Commission (COM(2004)101 of 26 February 2004) 

4.1.3.  Financial impact on Revenue 

The proposal has no financial implications on revenue 

4.2. Human Resources FTE (including officials, temporary and external staff) – see 

detail under point 8.2.1. 

Annual 
requirements8 

Total 
number 
human resources 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

of 

30 

- 

- 

- 

- 

- 

- 

5.  CHARACTERISTICS AND OBJECTIVES 

5.1. Need to be met in the short or long term 

As  an  essential  instrument  in  support  of  the  strategy  for  growth  and  jobs,  the 
Competitiveness  and  Innovation  Programme  will  have  to  meet  the  following 
needs: 

7 
8 

Beyond 2013. 
The 19 posts shown are additional human resources as compared to 2006. After 2007, no further 
additional human resources are required. 

EN 

57 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
                                                 
•  Foster  the  competitiveness  of  enterprises  and  in  particular  SMEs,  by 
improving  access  to  finance,  providing  Europe-wide  business  and  innovation 
support services, encouraging entrepreneurial spirit in Europe. 

•  Boosting  innovation,  including  eco-innovation,  as  one  of  the  keys  to 

productivity growth. 

•  Encouraging 

the  development  and  uptake  of 

Information  and 
Communication  Technologies  (ICT)9,  one  of  the  main  innovative  means  to 
improve productivity. 

•  Accelerating  action  in  the  fields  of  energy  efficiency,  renewable  energy 

sources and energy diversification in Europe. 

Beyond addressing the problems outlined above, the underlying motive force is to bring 
together  Community  programmes  and  activities  in  the  field  of  competitiveness  and 
innovation  into  one  coherent  and  synergetic  framework,  while  also  addressing 
complementary environmental concerns.  

5.2. Value-added  of  Community  involvement  and  coherence  of  the  proposal  with 

other financial instruments and possible synergies 

All  the  areas  covered  by  the  framework  Programme  (which  is  based  on  Articles  156, 
157(3) and 175(1) of the Treaty)  fall under shared responsibility of Member States and 
Community.  The  CIP  will  therefore  intervene  only  where  a  demonstrable  European 
added value is present, and the management committees of each specific programme will 
ensure  coherence  and  complementarity  with  actions  at  Member  States  level.  As  an 
instrument 
the 
Competitiveness  and  Innovation  framework  Programme  clearly  finds  its  place  in  the 
context  of  a  partnership  between  different  actors,  and  its  instruments  are  designed  to 
provide a leverage effect. Moreover, the innovation and business support networks will 
perform a feedback function and help the Commission in constantly assessing the actual 
needs, the proportionality of actions and the respect of subsidiarity. 

the  Community  strategy  for  growth  and 

implement 

jobs, 

to 

There are certain system/market failures that can best be tackled via public interventions. 
The  Competitiveness  and  Innovation  framework  Programme  will  add  value  to  national 
interventions by: 

•  Providing a European dimension in support of innovation for enterprises, through 
assistance  services  in  the  areas  of  transfer  of  technology,  clustering  and 
networking. Innovation policy takes place mostly at national and regional levels 
but  there  is  a  need  for  intervention  at  Community  level,  as  international  co-
operation  is  developing  rapidly  in  innovation  matters,  and  for  trans-national 
exchange  of  experience,  networking  and  benchmarking.  Therefore  Community 
action  will  add  value  to  national  interventions  by  providing  a  European 

9 

Enterprise Policy  Scoreboard, SEC(2003) 1278, 4.11.2003. 

EN 

58 

   EN 

 
                                                 
dimension in support of innovation for enterprises, through assistance services in 
the areas of transfer of technology, clustering and networking.  

•  einforcing  competitiveness  and  facilitating  SMEs’  access  to  finance;  the 
Community  intervention  has  a  leverage  potential  on  other  existing  financial 
instruments, and details on the expected impact are made available in the Impact 
Assessment. 

•  ccelerating the uptake of environmental technologies leading to a more efficient 
use  of  resources  and  the  opening  of  new  markets,  while  protecting  the 
environment  more  cost-efficiently.  This  should  contribute  to  improving  the 
competitiveness of European industry and creating the conditions for sustainable 
economic growth. 

•  Stimulating  a  wider  uptake  of  ICT  by  businesses,  public  sector  and  citizens 
across  Europe,  and  developing  an  information  society  for  all,  based  on 
trustworthy  and  secure  products  and  services.  ICT  uptake  and  best  use  are 
affected by perceived concerns with regard to returns on investments and security 
aspects,  with  a  genuine  European  dimension  (if  not  global,  for  example  in  the 
security field). The EU level, for reasons of scale and scope, is also best suited to 
fostering interoperability for the users' benefit10. 

•  Accelerating the uptake of sustainable energy technologies, in the context of EU 

targets for sustainable energy and the Millennium Development goals. 

As  far  as  synergies  with  other  Community  programmes  are  concerned,  please  refer  to 
chapter 4 of the explanatory memorandum.  

Finally, the very structure and concept of the CIP reflects the intention to create synergies 
between several Community programmes that existed separately up to 2006 by bringing 
them under a common framework. 

5.3. Objectives, expected results and related indicators11 of the proposal in the context 

of the ABM framework 

5.3.1.  The Competitiveness and Innovation framework Programme 

The framework Programme has the following objectives: 

10 

11 

Preliminary  Analysis  of  the  Contributions  of  the  EU  Information  Society  Policies  and  Programmes  to  the 
Lisbon and Sustainable Development Strategies – ongoing study by DG INFSO C3, 2005. 
The  indicators  relevant  to  the  policy  development  and  coordination  activities  are,  by  necessity, 
rather “soft”. This is due to the fact that their direct impacts are difficult to measure because (a) 
they  are  often  influential  in  nature,  rather  than  direct  actions,  (b)  they  are  therefore  difficult  be 
isolate  from contextual  factors, and it is thus difficult  to establish direct causal relationships, (c) 
the  impact  on  the  final  beneficiaries  usually  depends  on  subsequent  implementation  of 
recommendations by Member States. 

EN 

59 

   EN 

 
                                                 
(a) 

to  foster  the  competitiveness  of  enterprises  and  in  particular  Small 
and Medium sized Enterprises (SMEs); 

(b) 

to promote innovation including eco-innovation; 

(c) 

(d) 

to  accelerate  the  development  of  a  competitive,  innovative  and 
inclusive Information Society; 

to promote energy efficiency and new and renewable energy sources 
in all sectors including transport. 

These  objectives  are  pursued  through  the  implementation  of  specific 
programmes.  Indicators  are  established  at 
level  of  specific 
programmes. 

the 

5.3.2.  The Entrepreneurship and Innovation programme: 

The  programme  shall  provide  for  action  to  support,  improve,  encourage  and 

promote: 

access  to  finance  for  the  start-up  and  growth  of  SMEs  and  investment  in 

innovation activities; 

SME co-operation; 

Innovation, including eco-innovation in enterprises; 

innovation governance and culture; 

economic  and  administrative 

reform 

for  more  entrepreneurship  and 

competitiveness in industry and service sectors. 

Access to finance for the start-up and growth of SMEs12 and investment in innovation activities 

Objective 

Indicators 

Verification source 

increasing investment volumes of 
venture capital funds and 
investment vehicles promoted by 
business angels 

Degree of change (in investment 
volumes of venture capital funds 
and investment vehicles 
promoted by business angels) 

Annual  reporting  and  monitoring,  
programme evaluation 

providing leverage to SME debt 
financing instruments 

Change in volume of investment 
financing 

Annual  reporting  and  monitoring,  
programme evaluation 

The number of SMEs receiving 

Annual  reporting  and  monitoring,  

12 

With regard to the Community Financial Instruments it should be the indicators shown are subject 
to external variables and influences, not least the state of the economy and political conditions at 
local, regional, national, and Community level. 

EN 

60 

   EN 

 
 
                                                 
new financing 

programme evaluation 

Jobs created in SMEs receiving 
new financing 

Annual  reporting  and  monitoring,  
programme evaluation 

Total net disbursement 

Annual reporting and monitoring 

improving the financial 
environment for SMEs 

The number of SMEs receiving 
new financing 

Annual  reporting  and  monitoring,  
programme evaluation 

Objective 

Indicators 

Verification source 

SME co-operation 

fostering services in support of 
SMEs 

contributing to measures helping 
SMEs to cooperate with other 
enterprises across borders, 
including SME cooperation in the 
field of European standardisation 

promoting and facilitating 
international business 
cooperation 

Number of queries answered 

Annual reporting and monitoring 

Number of awareness raising 
campaigns  

Number of on-line consultations 
carried out 

Annual reporting and monitoring 

Annual reporting and monitoring 

Number of cross-border 
cooperation projects carried out 

Annual  reporting  and  monitoring,  
programme evaluation 

Number of international 
cooperation projects carried out 

Annual  reporting  and  monitoring,  
programme evaluation 

Innovation, including eco-innovation in Enterprises 

Objective 

Indicators 

Verification source 

Better innovation performance of 
EU enterprises 

Employment in high-tech 
services (% of total workforce) 

European Innovation Scoreboard 
(this corresponds to the out-put 
indicators currently used in the  EIS) 

High-tech exports - Exports of 
high technology products as a 
share of total exports 

Sales of new-to-market products 
(% of turnover) 

Sales of new-to-firm not new-to-
market products (% of turnover) 

Employment in medium-high and 
high-tech manufacturing (% of 
total workforce) 

EPO patents registration per 
million population 

USPTO patents registration per 
million population 

EN 

61 

   EN 

 
 
 
 
To foster sector-specific 
innovation, clusters, networks of 
excellence, public-private 
innovation partnerships and 
cooperation with relevant 
international organisations, 
initiatives and networks, and the 
use of innovation management 

Triadic patent families per million 
population 

Number of domestic community 
trademarks registration per 
million population 

Number of domestic industrial 
designs registration per million 
population 

More information on sector 
specific innovation needs and 
performances. 

Increase of interaction and 
cooperation among, clusters, 
networks of excellence, public-
private innovation partnerships 
including science-industry 
cooperation 

SMEs using non-technological 
change (% of SMEs) 

University R&D expenditures 
financed by business sector 

Innovative SMEs co-operating 
with others (% of SMEs) 

Annual reporting and monitoring,  
programme evaluation 

Annual reporting and monitoring,  
programme evaluation 

Annual reporting and monitoring,  
programme evaluation 

European Innovation Scoreboard 

European Innovation Scoreboard 

European Innovation Scoreboard 

To support national and regional 
programmes for business 
innovation 

Number of joint or coordinated 
programmes or actions. 

Annual reporting and monitoring,  
programme evaluation 

Annual reporting and monitoring,  
programme evaluation 

Annual reporting and monitoring,  
programme evaluation 

Number of enterprises benefiting 
from the support from these joint 
or coordinated programmes or 
actions. 

Amount of national and regional 
funding, as well as private co-
funding leveraged for business 
innovation per € 1 million CIP 
contribution. 

supporting services, in particular 
for trans-national knowledge and 
technology transfer and 
management of intellectual and 
industrial property  

Number of services provided 

Number of technology transfer 
agreements resulting from the 
services. 

Annual reporting and monitoring,  
programme evaluation 

Annual reporting and monitoring,  
programme evaluation 

exploring new types of 
innovation services 

Results of evaluation with regard 
to any new types of innovation 
services tested 

Annual reporting and monitoring,  
programme evaluation 

To support the market replication 
of innovative technologies 

Number of demonstrations 
performed 

Annual reporting and monitoring,  
programme evaluation 

EN 

62 

   EN 

 
To support the uptake and wider 
use of environmental 
technologies, to improve the 
eco-efficiency of EU industry 

Number of environmental 
technologies supported 

Annual reporting and monitoring,  
programme evaluation 

Indicators under development on 
eco-efficiency and on the market 
penetration of environmental 
technologies 

Innovation scoreboard, programme 
evaluation 

Entrepreneurship and Innovation culture 

Objective 

Indicators 

Verification source 

Encouraging entrepreneurial 
mindsets, skills and culture, and 
the balancing of entrepreneurial 
risk and reward 

Degree of change in propensity 
to become an entrepreneur 

Eurobarometer, programme 
evaluation 

Quality of regulatory and 
administrative  environment 

Eurobarometer, programme 
evaluation 

Contributing to the definition and 
promotion of competitiveness 
strategies for industry and 
service sectors 

Number and quality of 
contributions  

Annual reporting and monitoring, 
programme evaluation 

Facilitating mutual understanding 
and learning between national 
and regional  

actors 

Number of initiatives launched in 
the area, including conferences 
and studies 

Annual reporting and monitoring,  
programme evaluation 

Economic and Administrative Reform   

Objective 

Indicators 

Verification source 

Collecting data, analysing and 
monitoring performance, and 
developing and coordinating 
policy 

Number of qualitative studies in 
the area 

Annual reporting and monitoring,  
programme evaluation  

To support mutual learning for 
excellence in national and 
regional administrations  

Number of new mutual learning 
and cooperation projects and 
networks 

Annual reporting and monitoring,  
programme evaluation 

To promote awareness of 
innovation and disseminating 
good innovation practices 

Number of awareness-raising 
events/campaigns completed 

Annual monitoring, programme 
evaluation 

Number of hits on Innovation 
Portal web-site 

EN 

63 

   EN 

 
 
 
5.3.3.  The ICT Policy support programme 

The ICT Policy Support Programme shall provide for the following actions: 

(a) 

(b) 

(c) 

development of the Single European information space and strengthening 
of the internal market for information products and services; 

stimulation  of  innovation  through  a  wider  adoption  of  and  investment  in 
ICTs; 

development  of  an  inclusive  information  society  and  more  efficient  and 
effective  services  in  areas  of  public  interest,  and  improvement  of  the 
quality of life. 

The  indicators  relevant  to  the  ICT  policy  support  programme  build  on  the  existing  and 
used  Eurostat  Information  Society  Policy  and  Structural  indicators  and  on  the  eEurope 
indicators. When these indicators are not sufficient to best capture measures of quality of 
objectives  or  effectiveness  of  policy  measures,  other  “soft”  indicators  are  to  be  used 
based on Eurobarometer surveys.  

It should be remembered that these indicators are also subject to review and update.  

Objective 

Indicators 

Verification source 

Development  of  single  European 
information space;  

Quality  and  effectiveness  of 
content  accessibility  by  different 
devices 

Eurostat 
Structural 
barometer 
reporting 
programme evaluation 

Information  Society 
Euro-
-  Annual 
monitoring,  

Indicators; 
survey 
and 

eEurope  Indicator13  4  -  Annual 
reporting 
monitoring,  
and 
programme evaluation 

Speed  of 
interconnections  and 
services  available  between  and 
research  and 
within  national 
education 
(NRENs) 
within EU and world-wide 

networks 

ensuring  seamless  access 
ICT–based 
establishing 
framework  conditions 
and  appropriate 

to 
and 
appropriate 
for  rapid 
take  up  of 

services 

13 

Liste des indicateurs d’étalonnage pour le plan d’action eEurope - 13493/00 - ECO 338 - n° doc 
préc. : 10486/00 ECO 216 CAB 7 SOC 266 EDUC 117. The eEurope indicators are subject to a 
process  of  periodical  revision  and  update  in  the  course  of  eEurope  Action  Plans  and  follow-up 
initiatives. 

EN 

64 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
converging 
digital 
communications  and  services. 
include 
Issues 
interoperability  and  higher  levels 
of security and trust 

stake 

at 

Percentage of EU web sites in the 
national top 50 visited 

Perceived quality of public service 
multilingual websites 

eEurope  Indicator  22  -  Annual 
monitoring,  
reporting 
programme evaluation 

and 

Eurobarometer  survey  -  Annual 
reporting 
monitoring,  
programme evaluation 

and 

Eurostat 

Eurostat 

Eurostat 

Citizens  access to and use of the 
Internet 

Enterprises  access  to  and  use  of 
ICTs 

Information 
Indicators 

Society 

Policy 

ENISA monitoring; Eurobarometer 
-  Annual 
survey;  Eurostat 
reporting 
monitoring,  
programme evaluation 

and 

Perceived  security.  Quality  of 
filtering  technologies.  Number  of 
network 
concerns. 
security 
Number  of  criminal  cases  on  the 
internet. 
users' 
Internet 
experience  and  usage  regarding 
ICT-security. (** see below). 

Wider adoption of and investment 
in ICTs,  

Eurostat  /  OECD  indicators  on 
ICT investment 

Eurostat 
Structural 
statistical 
reporting 
programme evaluation 

Information  Society 
Indicators  –  OECD 
-  Annual 
reports 
monitoring,  
and 

eEurope  indicator  (22-  iii  –  iv)  - 
Annual  reporting  and  monitoring,  
programme evaluation 

innovation 

promoting 
in 
processes,  services  and  products 
enabled  by  ICT,  notably  in  SMEs 
and  public  services,  taking  into 
the  necessary  skills 
account 

Amount 
of 
government 
(by  pages  or  by 
information 
megabytes)  which  is  digitalised 
and available on line 

EN 

65 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
requirements,  accelerating 
the 
translation of ICT research results 
into practical applications 

Employment in the on-line content 
sector 

facilitating  public  and  private 
interaction as well as partnerships 
for  accelerating  innovation  and 
investments  in  ICTs,  increasing 
the  attractiveness  of  Europe  as  a 
place  to  invest  in  innovation  in 
ICT 

promoting  and  raising  awareness 
of  the  opportunities  and  benefits 
that  ICT  brings  to  citizens  and 
businesses,  stimulating  debate  at 
the  European  level  on  emerging 
ICT trends 

Percentage of companies that buy 
Internet 
and 
Definition 

sell  over 

the 

Public  use  of  government  on-line 
services  - 
for 
submission of forms 

information/ 

for 

Percentage of public procurement 
which can be carried out on-line 

reports; 
indicators 

eSkills 
eLearning 
reporting 
programme evaluation 

and 

Eurostat 
-  Annual 
monitoring,  

eEurope  indicator  16  -  Annual 
reporting 
monitoring,  
programme evaluation 

and 

eEurope  indicator  18  -  Annual 
monitoring,  
reporting 
programme evaluation 

and 

eEurope  indicator  19  -  Annual 
reporting 
monitoring,  
programme evaluation 

and 

Information  Society, 
Inclusive 
more  efficient  and  effective 
services in areas of public interest 
and improved quality of life.  

Information 
Indicators 

Society 

Policy 

Eurostat  -  Annual  reporting  and 
monitoring, 
programme 
evaluation 

Quality  and  efficiency  of  on-line 
services. Impact on quality of life 

Eurobarometer  survey  -  Annual 
reporting 
monitoring,  
programme evaluation 

and 

Information 
Indicators 

Society 

Policy 

eEurope  indicator  10  -  Annual 
reporting 
monitoring,  
programme evaluation 

and 

Percentage  of  teachers  using  the 
Internet 
non-computing 
for 
teaching on a regular basis 

eEurope  indicator  11  -  Annual 
monitoring,  
reporting 
programme evaluation 

and 

Percentage  of  workforce  with  (at 
least) basic IT training  

eEurope  indicator  12  -  Annual 
reporting 
monitoring,  
programme evaluation 

and 

eEurope  indicator  13  -  Annual 
monitoring,  
reporting 

and 

widening 
digital literacy; 

ICT  accessibility  and 

reinforcing trust and confidence 
as well as support of ICT use, 
addressing in particular privacy 
concerns; 

improving the quality, efficiency 
and availability of electronic 
services in areas of public interest 
and for ICT enabled participation, 
[including interoperable pan-
European or cross border public 
services as well as the 
development of common interest 
building blocks and sharing good 
practices]. 

EN 

66 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number  of  places  and  graduates 
in ICT related third level education 

programme evaluation 

Percentage  of  workforce  using 
telework 

Definition 

** (as above) 

EN 

67 

   EN 

 
 
 
 
 
 
 
 
5.3.4.  The Intelligent Energy Europe Programme 

The proposed programme aims to support sustainable development in the energy context, 
making a balanced  contribution to  the achievement of the following general  objectives: 
security of energy supply, competitiveness, and environmental protection. The Union has 
set itself clear quantitative targets for the uptake of sustainable energy to be achieved by 
2010. These include: 

•  doubling  the  share  of  renewable  energy  sources  in  EU  energy  consumption  to  reach 

12%,  

•  increasing to 22% the share of electricity generated by renewable sources and  

•  increasing up to 5.75% the share of bio-fuels in all petrol and diesel used for transport.  

•  Rationalise  and  stabilise  energy  consumption  to  reduce  energy  intensity,  aiming  at 

saving at least 1% more energy each year. 

A number of more qualitative targets are also to be achieved such as increased sales of 
energy efficient products/appliances, expand high-efficient cogeneration, reduced energy 
consumption  of  energy-using  products  and  number  of  products  complying  with  eco-
design requirements. A proposal has also been made for Member States to further reduce 
the amount of energy distributed to final consumers by 1% per year. 

The  objectives  and  a  non-exhaustive  list  of  key  baseline  indicators  are  presented  in  the 
table below: 

Objectives 

Key baseline indicators 

Justification / source 

To  provide  22%  of  electricity  from 
renewable  sources  in  EU-15  (21% 
in EU-25) 

Contribution  of  renewable  energy 
sources 
electricity 
to 
generation. (Eurostat data). 

total 

2001/77/EC:  The  Promotion  of 
Electricity  from  renewable  energy 
internal  energy 
sources 
market 

the 

in 

To  have  5.75%  of  biofuels  in  all 
petrol and diesel used for transport 
by 2010 

Biofuels  production  (contribution  to 
total petrol and diesel market).  

2003/30/EC.  Promotion  of  the  use 
of biofuels or other renewable fuels 
for transport 

Rationalise  and  stabilise  energy 
reduce  energy 
consumption 
intensity,  aiming  at  saving  at  least 
1% more energy each year. 

to 

Hectares  growing  biomass 
biofuel production. (Eurostat data) 

for 

Electricity  generated  by  CHP  plant 
(Eurostat data) 

2004/08/EC: 
of 
cogeneration  based  on  useful  heat 
demand. 

Promotion 

Other  indicators  can  also  be  used 
to  indirectly  measure  the  impact  of 
a  number  of  energy  savings 
Directives.  They  can  be  used  to 
measure  impacts  in  terms  of  CO2 
intensity  and 
emissions,  energy 

2002/91/EC.  Directive  on 
Energy Performance of Buildings 

the 

COM(2003)  739:  Proposal  for  a 
Directive  on  energy  end  use 

EN 

68 

   EN 

 
 
(Voluntary 
efficiency 
towards 
consumption 

initiatives) 

labelling 

reducing 

Energy 
to  contribute 
energy 

energy and electricity consumption: 

efficiency and energy services.  

•  CO2 emissions per capita 
•  Energy intensity 
• 
• 

Final energy consumption 
Final household energy 
consumption by fuel 

Baseline  indicators  could  include 
data  on 
the  average  energy 
efficiency  of  appliances  sold,  the 
improvements  in  energy  efficiency 
of appliances (rating A to G, now to 
be A++) 

For eco-design, could cover a wide 
range of products, including heating 
and  water  heating  equipment, 
lighting, 
electric  motor  systems, 
domestic 
office 
appliances, 
equipment,  consumer  electronics 
and air conditioning systems. 

Energy labelling Directives: 

• 

• 

• 

• 

• 
• 

• 

• 

95/12/EC – Household 
washing machines 
95/13/EC – Household electric 
tumble driers 
96/60/EC – Household 
combined washers-driers 
97/17/EC – Household 
dishwashers 
98/11/EC – Household lamps 
2002/40/EC -Household 
electric ovens 
2002/31/EC - Household air-
conditioners 
2003/66/EC - household 
electric refrigerators, freezers 
and their combinations 

Minimum 
requirements 
products: 

energy 

efficiency 
for  energy  using 

• 
• 

• 

92/42/EC – Hot water boilers 
96/57/EC – Household electric 
refrigerators, freezers and 
combinations 
2000/55/EC – Ballasts for 
fluorescent lighting 

Regulation  (EC)  No  2422/2001  - 
efficiency 
energy 
labelling 
programme 
for  office  equipment 
(Energy Star) 

for  a 
COM(2003)453:  Proposal 
Directive 
a 
on 
framework  for  the  setting  of  Eco-
design 
for  energy 
using products 

requirements 

establishing 

Establishing 
market 

the 

internal  energy 

Degree  of  openness  for  gas  and 
electricity markets (Eurostat data) 

Electricity  and  Gas  Directives  on 
establishing 
internal  energy 
market  (Directives  96/92/EC  and 
98/30/EC respectively) 

the 

5.4. Method of Implementation (indicative) 

EN 

69 

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The method chosen for the implementation of the action is: 

Centralised Management. 

The  action  will  be  partly  directly  managed  by  the  Commission  and  partly 
indirectly  by  delegation  to  national  public-sector  bodies/bodies  with  public-
service  mission  (the  European  Investment  Fund)  for  the  implementation  of  the 
Community financial instruments for SMEs. 

Concerning other possibilities for indirect management and given the nature of the 
actions  and  projects  planned  within  the  proposed  programme  (2007-2013),  the 
Commission considers making use of an existing executive agency or creating a 
new one. This will concern only tasks that do not involve political choices. 

EN 

70 

   EN 

 
 
 
 
 
 
6.  MONITORING AND EVALUATION 

Regular  monitoring  of  the  implementation  of  the  framework  Programme  and  of  its 
specific  programmes  is  foreseen,  in  accordance  with  the  principles  of  sound  financial 
management.  Monitoring  shall  include  the  drawing  up  of  regular  reports  on  progress 
made  in  implementing  the  supported  activities  by  means  of  financial  implementation, 
results  and  impact  indicators.  Audits  of  individual  programme  elements  will  also  be 
carried out on a regular basis, as part of the annual programming and management cycle 
of the Commission. 

The  Commission  shall  also  establish,  for  each  specific  programme,  an  annual 
implementation  report  regarding  the  supported  activities  by  means  of  financial 
implementation, results and impact indicators. 

6.1. Evaluation 

6.1.1.  Ex-ante evaluation 
The Entrepreneurship and Innovation Programme14  

A combined impact assessment and ex-ante evaluation for a Programme of Community 
Support  for  Entrepreneurship  and  Enterprise  Competitiveness  was  carried  out  in  2004. 
The  current  multiannual  programme  (MAP)  for  enterprise  and  entrepreneurship,  and  in 
particular for small and medium-sized enterprises (SMEs), adopted by Council Decision 
2000/819/EC  will  end  at  the  end  of  200615.  The  Commission  therefore  undertook  an 
extensive combined impact assessment and ex-ante evaluation of the programme foreseen 
to  follow  on  from  the  MAP,  which  would  also  incorporate  certain  Innovation  activities 
from the Framework Programme for Research and Technical Development. 

The combined impact assessment and ex-ante evaluation was used to formally verify that 
the financial intervention as proposed is based on a coherent strategy, which is relevant to 
the needs, problems and issues that it is supposed to address. It also helped to ensure that 
this intervention is complementary to, coherent with and not in contradiction with other 
public interventions and that the necessary monitoring and evaluation systems are being 
designed  into  the  programme  in  order  to  facilitate  the  intermediate  and  ex-post 
evaluations to take place at a later date. It examined alternative policy approaches in view 

14 
15 

EN 

It  was  originally  due  to  end  at  the  end  of  2005.  However,  due  to  the  decision  to  examine  the 
possibility to establish a Competitiveness and Innovation framework Programme, a procedure to 
prolong the multiannual programme (MAP) for enterprise and entrepreneurship, and in particular 
for small and medium-sized enterprises to 31 December 2006 is currently underway. 

71 

   EN 

 
 
 
 
 
                                                 
 
of  the  pursued  objectives  and  explains  why  the  Commission  opted  for  the  proposed 
programme  design  and  its  delivery  method.  It  presented  the  expected  economic,  social 
and  environmental  impacts  of  the  proposed  new  programme,  and  dealt  with  the  cost-
effectiveness of the proposed programme. It described what was considered to ensure that 
monitoring  and  future  evaluations  of  the  programme  will  be  possible  and  reliable. 
Potential risks for fraud and counter measures were also contemplated. A detailed public 
consultation  of  stakeholders  was  carried  out  when  designing  the  proposal  for  the  new 
programme. The combined impact assessment and ex-ante presents its design, the results 
obtained and how the gathered views and comments have been dealt with in preparing the 
programme16. 

The ICT policy support Programme 

Today, investments in ICTs and the use of on-line services in Europe is lower and slower 
than  our  major  competitors17,  especially  in  service  sectors.    This  is  undermining  the 
Union’s potential for economic growth,  for improving its public sector services and for 
addressing major upcoming societal and economic challenges.  

While the prime responsibility remains with business and national public administrations 
when making their investment programmes, Community actions play a key role. Without 
sufficient financial support:   

o  There will be insufficient support to pilot actions demonstrating the benefits of 

ICT to citizens and businesses.  

o  The development of fragmented and non interoperable ICT based services of 

public interest in the member states. Investment in ICT in public services in the 
member states will be tens of Billion Euro per year in the next decade. 
Community support is essential to ensure sharing best practice, costs reductions 
and above all the development of interoperable solutions and pan European 
services.    

o  A reduced budget will lead to a wide digital divide between a Europe that is aware 
of ICT potential and a Europe that is far from innovation and best use of ICT.  

o  This also has effects on the integration of an enlarged Europe and will lead also to 
the loss of cultural assets stemming from multilingualism and cultural diversity.  

What impact will it have on the Lisbon goals? 

16 
17 

Final report available on request at ENTR-DEVELOP-ENTERPR-POLICY@cec.eu.int  
Between  1995  and  2001,  investment  in  IT  capital  goods  ran  at  1.6  %  of  GDP  less  than  the  US; 
from  Francesco  Daveri,  Why  is  there  a  productivity  problem  in  the  EU?,  Centre  for  European 
Policy Studies.  

EN 

72 

   EN 

 
 
 
 
                                                 
A  clear  evidence  of  the  role  of  ICT  in  achieving  the  Lisbon  goals  is  its  impact  on 
productivity growth. More than half of the productivity growth gap between Europe and 
the US in the last decade was due to under investment in ICT.    

In addition to being a high growth sector, ICTs represent a substantial and increasing part 
of the added value of all innovative products and services which are the sources of new 
economic activities and jobs creation. 

The Intelligent Energy Europe Programme 

An  ex-ante  evaluation  of  the  renewal  of  the  multiannual  Community  programme  for 
action in the field of energy “Intelligent Energy – Europe II” (2007-2013) was conducted 
by a committed panel of high-level, independent experts, chaired by Ms. Lis Broome, all 
belonging  to  the  consortium  that  was  formed  by  ECORYS  Nederland  BV,  ECOTEC 
Research  and  Consulting  Ltd  and  COWI  A/S.  The  experts  have  carried  out  a  thorough 
study  based  on  a  variety  of  inputs,  including  existing  assessments  of  previous 
programmes,  relevant  market  reports  and  taking  into  account  the  results  from  wider 
stakeholder  consultations.  The  evaluation comprised  seven  stages,  whose  outcomes  and 
recommendations  are  summarised  below.  Some  parts  of  it  are  further  developed 
elsewhere in this Financial Statement. 

This  evaluation  has  been  used  to  formally  verify  that  the  financial  intervention  as 
proposed  is  based  on  a  coherent  strategy,  which  is  relevant  to  the  needs,  problems  and 
issues  that  it  is  supposed  to  address.  It  also  helps  to  ensure  that  this  intervention  is 
complementary to, coherent with and not in contradiction with other public interventions 
and  that  the  necessary  monitoring  and  evaluation  systems  are  being  designed  into  the 
programme in order to facilitate the intermediate and ex-post evaluations to take place at 
a later date.  

The final report has been submitted to the Commission services on 26 May 2004 and is 
available on request at tren-info@cec.eu.int.  

6.1.2.  Measures taken following an intermediate/ex-post evaluation (lessons 

learned from similar experiences in the past) 

The Entrepreneurship and Innovation Programme 

External  evaluations  by  independent  experts18  have  confirmed  that  the  multiannual 
programme  (MAP)  for  enterprise  and  entrepreneurship,  and  in  particular  for  small  and 

18 

EN 

Final  Evaluation  on  the  Multiannual  Programme  for  enterprise  and  entrepreneurship  and  in 
at 
1460 
particular 

15.11.2004, 

available 

SMEs, 

(2004) 

SEC 

also 

for 

of 

73 

   EN 

 
 
 
 
                                                 
medium-sized  enterprises  (SMEs)  (Council  Decision  2000/819/EC),  met  its  overall 
objectives and that its delivery instruments are effective:  

–  The  Community  financial  instruments  for  SMEs  were  found  to  have  contributed 
successfully to facilitating SMEs’ access to finance. They address recognised market 
gaps  or  market  failures  which  will  continue  to  exist  despite  the  integration  of  the 
financial  services  market.  In  addition,  greater  visibility  for  the  Community  financial 
instruments  should  be  achieved.  The  role  of  the  European  Investment  Fund  (EIF)  in 
operating  Community  financial  instruments  for  SMEs  has  been  considered  a  best 
practice. 

–  The  evaluations  have  positively  stressed  the  role  of  business  support  services  for 
SMEs.  However,  these  evaluations  suggested  strengthening  their  transversal  role 
Network  in  the  delivery  of  the  programme,  including  raising  awareness,  promoting 
and disseminating the programme including its instruments, activities and results.  

–  It was also suggested that activities aiming to exchanging experience and identifying  
good  practices  between  the  Member  States  with  a  view  to  improve  the  environment 
for  entrepreneurship  and  enterprise  become  more  focussed.  Also,  monitoring  the 
follow-up activities carried out by the Member States would add value in this regard.  

The lessons learnt from evaluations are being applied directly in the new programme, as 
demonstrated below: 

What the evaluators found: 

How it is addressed by the proposed 
programme: 

Lack  of  consistency  between  the  objectives  of 
the  programme  and  actions  carried  out  under 
the programme 

Clear objectives and actions 

Better  integration  of  various  policy  making 
instruments  

Focus  on  stable  objectives  and  transversal 
delivery instruments for the entire programme  

Visibility  of  the  programme,  including  financial 
instruments, should be improved  

Allocated  resources  do  not  correspond  to  the 
programme’s targets  

Best projects, best practices studies should be 
better promoted 

raising  via  programme 
More  awareness 
support and the transversal role of the business 
and innovation support services 

Objectives and resources have been reviewed 

More  awareness 
raising  via  programme 
support and the transversal role of the business 
and innovation support services 

Overall number of actions should be reduced to 
enhance visibility 

Will  be  achieved  via  the  framework  clear 
objectives and actions 

http://europa.eu.int/comm/enterprise/enterprise_policy/mult_entr_programme/doc/sec_2004_1460
_en.pdf 

EN 

74 

   EN 

 
                                                                                                                                                  
The  business  support  services  Mission  should 
be  redefined  &  adapted  to  the  needs  of 
enterprises  

Not  only 
management support will be re-oriented 

their  mission,  but  also 

the 

As  regards  environmental  technologies,  the  mid-term  evaluation  of  the  LIFE  III 
instrument confirmed that its part on Environment (LIFE-Environment) has demonstrated 
and proven a variety of clean technologies in key areas, such as improving water quality 
and  recycling  waste,  the  adoption  of  which  will  aid  the  implementation  of  EU 
environmental policy.  

Member States value the programme and feel that LIFE complements and fills the gaps in 
national programmes. It is felt that LIFE projects are most effective where the private and 
public  sectors  work  together  and  where  larger  SME’s  are  involved.  There  has  been 
considerable  debate  both  in  the  Commission  and  amongst  Member  States  over  the 
definition  of  innovation  and  whether  only  projects  that  are  innovative  across  Europe 
should qualify for support. The evaluation criteria regarding the innovation character of 
proposals has been reinforced consequently. In addition, nearly all stakeholders feel that 
LIFE-Environment  should  improve  the  dissemination  in  particular  as  regards  the 
replication of the results of the projects funded. 

The ICT policy support Programme 

External  evaluations  by  independent  experts  have  confirmed  that  eContent,  eTEN  and 
PROMISE  (now  Modinis)  programmes,  contribute  to  the  achievement  of  their  overall 
objectives  and  guarantee  value  added.  However,  evaluations  stated  that  the  following 
improvements  are  to  be  achieved  in  a  number  of  areas,  where  the  ICT  Policy  Support 
Programme could provide ground for increased synergy, effectiveness and impact. 

eContent 

Main emerging needs have been identified as follows: 

• 

• 

to help overcome barriers originated by cultural, linguistic, legal, organisational 
and technical European specificity that hamper usability and reusability, 
searchability and interoperability of digital content in areas of public interest; 
to pursue further the potential of digital content technologies for the availability of 
“quality” content-based information services for businesses and citizens, 
particularly those stimulated by the cross border re-use of public sector 
information consequent to adoption of the Public Sector Information (PSI) 
Directive6; 

EN 

75 

   EN 

 
 
 
 
• 

• 

• 

to accompany the roll out of broadband networks and the deployment of “3G” 
services by enhancing the process of development, use and exploitation of 
suitable content; 
to help attaining the full potential of distributed systems such as the World Wide 
Web; 
to improve structured access to existing good practices and initiatives;to facilitate 
a more structured co-operation in the field of digital content at European level. 

eTEN 

 The evaluation also pointed to the importance of the programme and the need to re-shape 
it. In this sense too, the Commission should consider if needs may be better fulfilled by 
supporting  the  roll-out  of  services  that  are  operable  in  one  MS  to  other  MSs  (i.e 
replication of validated services) rather than simply looking to fund new services across 
borders19 

MODINIS (former PROMISE) 

The MODINIS programme takes stock of the PROMISE experience and established the 
necessary tools for improving coordination among member States and between them and 
the EU, hence, possibly reinforcing the means of the Open Method of Coordination.  

The Intelligent Energy Europe Programme 

The  outcomes  and  recommendations  of  available  evaluations  can  be  summarised  as 
follows.  

•  There is a real need for a Community led financial instrument to follow on from 
the  current  programme  beyond  2006.  It  will  be  an  essential  contribution  to 
achieving  the  EU  targets  and  objectives  for  sustainable  energy.  It  brings  added-
value to other Community and national initiatives. 

•  The  new  programme  should  provide  continuity  to  the  support  under  the  current 
programme.  It  should  concentrate  on  increasing  the  level  of  investment  in 
sustainable energy technologies, increasing the demand for sustainable energy and 
strengthening administrative capacity to develop strategies and policies as well as 
to  implement  existing  regulations.  It  is  very important  that the  programme  links 
directly  with  other  Community  and  Member  States  programmes  and  policies  in 
order to guarantee mainstream funding, exploit synergies and multiply the impact 
of the Community financial intervention. 

•  The increased financial framework for the programme is in line with the evolution 

proposed for the follow-on programme. 

19 

Intermediate  Evaluation  of  the  eTEN  (formerly  TEN-Telecom)  Programmes  (Executive  Summary)  – 
European Commission, DG Information Society, December 2004. 

EN 

76 

   EN 

 
 
                                                 
•  As  regards  management,  the  Commission  should  later  evaluate  the  performance 
of the Intelligent Energy Executive Agency and consider the externalisation of the 
programme management to this body. 

•  The development of a monitoring indicator system is difficult, mainly because the 
intervention  favours  both  “hard”  (result  from  the  concrete  replication  projects) 
and  “soft”  (result  from  the  other  measures  funded  through  the  programmes,  e.g. 
promotion, dissemination) impacts.  

•  There  are  a  number  of  potential  risks  that  the  proposed  programme  might  face, 
but  most  of  them  can  be  minimised  through  the  careful  design  of  the  Work 
Programme. 

EN 

77 

   EN 

 
  
6.1.3.   Terms and frequency of future evaluation 

The  framework  Programme  and  its  specific  programmes  shall  be  subject  to 
interim  and  final  evaluations  which  shall  examine  issues  such  as  relevance, 
coherence and synergies, effectiveness, efficiency, sustainability and utility. The 
interim evaluations may also include ex-post evaluation elements with regard to 
previous programmes. 

The interim and final evaluations of the specific programmes and the necessary 
budgetary  allocations  shall  be  included  in  the  respective  work  programmes  of 
those programmes.  

The  interim  evaluation  of  the  framework  Programme  shall  be  completed  by  31 

December 2009, the final evaluation by 31 December 2011. 

The interim and final evaluations of the specific programmes shall be arranged 
in  a  way  that  their  results  can  be  taken  into  account  in  the  interim  and  final 
evaluation of the framework Programme. 

7.  ANTI-FRAUD MEASURES  

A  large  number  of  financial  and  administrative  control  mechanisms  are  provided  for, 
corresponding to the specific nature of the action concerned. They apply throughout the 
process and include in particular: 

Before contract signature: 

- 

- 

- 

Responsible  definition  of  actions  and  drafting  of  specifications  ensuring 
controllability  of  the  achievement  of  the  required  results  and  of  the  costs 
incurred; 

Qualitative  and  financial  analysis  of  the  tenders,  proposals  or  applications  for 
subsidy; 

Involvement of other Commission departments concerned in order to avoid any 
duplication of work; 

After contract signature: 

- 

- 

Examination of the statements of expenditure before payment, at several levels 
(financial  manager,  responsible  technical  officers)  and  consultation  of  the 
Commission departments concerned as regards the results; 

Payment for the work, after acceptance, on the basis of a percentage estimated 
before  awarding  the  contract  and  in  the  light  of  a  final  financial  report  on  the 
action; 

EN 

78 

   EN 

 
 
- 

- 

Internal audit by the financial controller;  

Local  inspection  to  detect  errors  or  other  irregularities  by  examination  of  the 
supporting documentation. 

Information and monitoring of compliance with procedures by experts from the Member 
States  invited  to  the  meetings  of  the  Programme  Committee  referred  to  in  Article  8(2). 
Other bodies concerned, such as the European Parliament, will be fully informed about 
the results 

A  large  part  of  the  proposed  budget  for  the  new  programme  will  be  dedicated  to  the 
Community financial instruments. It is proposed that their management is continued to be 
carried  out  with  the  European  Investment  Fund  (EIF),  building  on  the  control  and 
monitoring arrangements currently in place. The EIF deals with intermediaries from the 
financial  sector  with  high  professional  standards.  The  EIF’s  monitoring  and  control 
procedures have been subject to multiple audits by external auditors and by the European 
Court of Auditors and are found to operating satisfactorily. Additionally, it is proposed to 
cooperate  with  International  Financial  Institutions  such  as  the  European  Bank  for 
Reconstruction  and  Development  (EBRD)  for  the  Capacity  building.  In  these  cases 
management  agreements  will  require  the  same  standards  of  monitoring  and  control  as 
those  with  the  EIF.  In  addition,  the  proposed  Decision  provides  for  monitoring  and 
financial  control  by  the  Commission  (or  any  authorised  representative),  including  the 
European  Anti-Fraud  Office,  and  for  audits  by  the  Court  of  Auditors,  which  may  be 
undertaken in situ as necessary. 

EN 

79 

   EN 

 
8.  DETAILS OF RESOURCES 

8.1. Objectives of the proposal in terms of their financial cost 

(Headings of 
Objectives, actions 
and outputs should be 
provided)

Operational 
objective N° 1

Action 1

Action 2

Action 3

Sub-total Objective 
n°1

Of which total ECO

Operational 
objective N°2

Action 1

Action 2

Action 3

Sub-total Objective 
n°2

EN 

Type of output

Av. cost

Year 2007

Year 2008

Year  2009

Year  2010

Year  2011

Year 2012

Year 2013

TOTAL

n

n+1

n+2

n+3

n+4

n+5

n+6

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

provide for action to support, improve, encourage and promote access to finance for the start-up and growth of SMEs and investment in innovation activities, including eco-innovation

increase investment volumes of risk capital funds and investment vehicles promoted by business angels [art 11 (a)]

Entrepreneurship and innovation Programme

provide leverage to SME debt financing instruments [ art 11 (b)]

improve the financial environment for SMEs [art 11 (c)]

117

15

130

17

143

19

148

21

158

23

170

26

170

29

1036

150

provide for action to support, improve, encourage and promote creation of an environment favourable to SME co-operation

foster services in support of SMEs [art 12 (a)]

contribute to measures helping SMEs to cooperate with other enterprises across borders, including SME involvement in the field of European standardisation [ art 12 (b)]

promote and facilitate international business cooperation [art 12 (c)]

101

84

43

46

104

115

77

570

80 

   EN

 
 
 
 
 
 
 
 
 
 
 
 
 
(Headings of 
Objectives, actions 
and outputs should be 
provided)

Operational 
objective N° 3

Action 1

Action 2

Action 3

Action 4

Action 5

Action 6

Sub-total Objective n° 
3

Of which ECO-
Innovation

Operational 
objective N° 4

Action 1

Action 2

Action 3

Sub-total Objective n° 
4

Of which ECO-
Innovation 

Sub-total 
objective n°3 and 
n°4

Of which total ECO-
Innovatrion

EN 

Type of output

Av. cost

Year 2007

Year 2008

Year  2009

Year  2010

Year  2011

Year 2012

Year 2013

TOTAL

n

n+1

n+2

n+3

n+4

n+5

n+6

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

provide for action to support, improve, encourage and promote innovation in enterprises,  including eco-innovation 

foster sector-specific innovation, clusters, innovation networks, public- private innovation partnerships and  cooperation with relevant international organisations and the use of innovation management      [art 13 (a)]

support national and regional programmes for business innovation [art 13 (b)]

support the take-up of innovative technologies [ art 13 (c)]

support services for trans-national knowledge and  technology transfer and for  intellectual and industrial  property management   [ art 13 (d)]

explore new types of innovation services [art 13 (e)]

foster technology and knowledge through data archiving and  transfer  [art 13 (f)]     

35

24

51

26

122

44

139

53

114

65

95

41

provide for action to support, improve, encourage and promote entrepreneurship and innovation culture

encourage entrepreneurial mindsets, skills and culture, and the balancing of  entrepreneurial risk and reward, in particular for young entrepreneurs  [art 14 (a)]

encourage a business environment favourable to innovation, enterprise development and growth  [ art 14 (b)]

support policy development and cooperation between actors, including national and regional programme managers [art 14 (c)]

10,9

2,5

45,9

26,5

38,9

9,5

89,9

35,5

18,9

4,5

140,9

48,5

25,9

7

164,9

60

16,9

4

130,9

69

46,8

11,5

141,8

52,5

177

71

27,7

7

204,7

78

733

324

186

46

919

370

81 

   EN

 
 
 
 
 
(Headings of 
Objectives, actions 
and outputs should be 
provided)

Operational 
objective N°5

Action 1

Action 2

Action 3

Sub-total Objective n° 
5

Total objective 1-5

Type of output

Av. cost

Year 2007

Year 2008

Year  2009

Year  2010

Year  2011

Year 2012

Year 2013

TOTAL

n

n+1

n+2

n+3

n+4

n+5

n+6

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

provide for action to support, improve, encourage and promote enterprise and innovation related economic and administrative reform 

collect data, analyse and monitor performance, and develop  and coordinate policy      [ art 15 (a)]

contribute to the definition and promotion of competitiveness strategies  related  to industry and service sectors [art 15 (b)]

support mutual learning for excellence in national and regional administrations  [art 15 (c)]

19,1

283,00

9,1

313,00

13,1

340,00

14,1

15,1

373,00

408,00

11,2

438,00

24,3

476,00

106

2631,00

EN 

82 

   EN

 
 
 
(Headings of 
Objectives, actions 
and outputs should be 
provided)

Operational 
objective N°1

Action 1

Action 2

Action 3

Sub-total Objective 
n°1

Operational 
objective N°2

Action 1

Action 2

Action 3

Sub-total Objective 
n°2

Operational 
objective N°3

Action 1

Action 2

Action 3

Sub-total Objective 
n°3

Total objective 1-3

EN 

Type of output

Av. cost

Year 2007

Year 2008

Year  2009

Year  2010

Year  2011

Year 2012

Year 2013

TOTAL

n

n+1

n+2

n+3

n+4

n+5

n+6

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

ICT policy support Programme

provide for action to develop the Single European information space and to strengthen the internal market for information products and services

ensure seamless access to ICT-based services and establish appropriate framework conditions for rapid and appropriate take up of converging digital communications and services, including interoperability, security 
and trust aspects   [art 27 (a)]

improve the conditions for the development of digital content with a special emphasis on multilingualism and cultural diversity         [ art 27 (b)]

monitor the European Information Society, through data collection and analysis of the development, availability and use of digital communication services including the growth of internet, access to broadband as well 
as developments of content and services [art 27 (c)]

10

10

47

48

49

51

52

267

provide for action to stimulate innovation through a wider adoption of and investment in ICTs

promote innovation in processes, services and products enabled by ICTs, inn particular in SMEs and public services, taking into account the necessary skills requirements         [art 28 (a)]

facilitate public and private interaction as well as partnerships for accelerating innovation and investments in ICTs;        [ art 28 (b)]

promote and raise awareness of the opportunities and benefits that ICTs bring to citizens and businesses and stimulate debate at the European level on emerging ICT trends [art 28 (c)]

20

20

27

27

28

29

30

181

provide for action to develop an inclusive information society and more efficient and effective services in areas of public interest and to improve quality of life

widen ICT accessibility and digital literacy         [art 29 (a)]

reinforce trust and confidence as well as support of ICT use, address in particular privacy concerns      [ art 29 (b)]

improve the quality, efficiency and availability of electronic services in areas of public interest and for ICT enabled participation, including interoperable pan-European or cross border public services as well as the 
development of common interest building blocks and share good practices [art 29 (c)]

39,7

69,70

40,9

70,90

49

123,00

53

55

128,00

132,00

57

137,00

59

141,00

353,6

801,60

83 

   EN

 
 
 
Type of output

Av. cost

Year 2007

Year 2008

Year  2009

Year  2010

Year  2011

Year 2012

Year 2013

TOTAL

(Headings of 
Objectives, actions 
and outputs should be 
provided)

n

n+1

n+2

n+3

n+4

n+5

n+6

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

No. outputs

Total cost

VE)

provide for action to foster energy efficiency and the rational use of energy resources (SAVE)

INTELLIGENT ENERGY – EUROPE II Programme

Action 1

Action 2

Sub-total Objective 
n°1

Operational 
objective N°2

Action 1

Action 2

Action 3

Sub-total Objective 
n°2

Operational 
objective N°3

Action 1

Action 2

Action 3

Sub-total Objective 
n°3

Total objective 1- x

EN 

improve energy efficiency and the rational use of energy in particular in the building and industry sectors, with the exception of actions covered by Article 41 (STEER) [art 39 (a)]

support the preparation of legislative measures and their application [art 39 (b)]

23,5

25

31,25

37,75

50,85

53,8

61,65

283,8

provide for action to promote new and renewable energy sources and to support energy diversification (ALTENER)

promote new and renewable energy sources for centralised and decentralised production of electricity and heat and supporting the diversification of energy sources, with exception of actions covered by Article  41 
(STEER)  [art 40 (a)]

integrate new and renewable energy sources into the local environment and the energy systems [art 40 (b)]

support the preparation of legislative measures and their application [art 40 (c)]

24,5

27

38,25

40,5

55,2

63,85

67,05

316,35

provide for action to promote energy efficiency and the use of new and renewable energy sources in transport (STEER)

support initiatives relating to all energy aspects of transport, and the diversification of fuels [art 41 (a)]

promote renewable fuels and energy efficiency in transport [art 41 (b)]

support the preparation of legislative measures and their application [art 41 (c)]

12

60,00

18

70,00

20,5

90,00

21,75

100,00

30,95

137,00

34,35

152,00

42,3

171,00

179,85

780,00

84 

   EN

 
 
 
 
Competitiveness and Innovation framework Programme

Total 2007

Total 2008

Total 2009

Total 2010

Total 2011

Total 2012

Total 2013

Total 

Entrepreneurship and innovation 
Programme

ICT policy support Programme

INTELLIGENT ENERGY – EUROPE II 
Programme

283,00

313,00

69,70

60,00

70,90

70,00

340,00

123,00

90,00

373,00

128,00

100,00

408,00

132,00

137,00

438,00

137,00

152,00

476,00

141,00

171,00

2631,00

801,60

780,00

CIP Total

412,70

453,90

553,00

601,00

677,00

727,00

788,00

4212,60

EN 

85 

   EN

 
 
8.2. Administrative Expenditure 

The  needs  for  human  and  administrative  resources  shall  be  covered  within  the  allocation 
granted  to  the  managing  DG  in  the  framework  of  the  annual  allocation  procedure.  The 
allocation  of  posts  should  take  into  account  an  eventual  reallocation  of  posts  between 
departments on the basis of the new financial perspectives 

8.2.1.  Number and type of human resources 

This  table  only  shows  ADDITIONAL  posts  needed  for  the  framework  Programme 
implementation. 

Types of 
post 

Staff to be assigned to management of the action using additional resources 
(number of posts/FTEs) 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

A*/AD 

B*, 
C*/AST 

15 

15 

Officials 
or 
temporary 
staff89 
(XX 01 
01) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Staff  financed90  by 
art. XX 01 02 

staff91 
Other 
financed  by  art.  XX 
01 04/05 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

TOTAL 

30 

8.2.2.  Description of tasks deriving from the action 

11 additional posts (5 AD and 6 AST) are necessary for the increased workload 
in DG Economic and Financial Affairs related to the increase of budget for the 
financial  instruments  for  SMEs  and  the  implementation  of  the  capacity 
building.  

10  additional  posts  (4  AD  and  6  AST)  are  necessary  for  ensuring  the  overall 
coordination  of  the  programme  in  DG  Enterprise  and  Industry  and  to  the 
implementation of the new instruments in support of innovation. 

89 
90 
91 

Cost of which is NOT covered by the reference amount. 
Cost of which is NOT covered by the reference amount. 
Cost of which is included within the reference amount. 

EN 

86 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
5 additional posts (2 AD and 3 AST) are necessary for the increased workload 
in  DG  Environment  related  to  the  follow-up  of  the  programme  and  the 
implementation  of  new  actions  regarding  eco-innovation.  It  should  be  noted 
that  the  phasing  out  of  the  current  LIFE  programme  and  the  launch  of  the 
future LIFE+ will allow only limited re-allocation of staff to these new tasks. 

4  additional  posts  (4  AD)  are  required  to  manage  the  ICT  actions  in  DG 
Information Society and Media. 

8.2.3.  Sources of human resources (statutory) 

The  Programme  will  mainly  be  managed  by  posts  currently  allocated  to  the 
management of the programmes to be replaced by the CIP.  

If the structure of the new financial perspectives allows for a shift between the 
two establishment plans: 

•  23 Research posts in DG Enterprise and Industry currently working in 
Innovation (FP6) are to be transformed in “Fonctionnement” posts, as 
from  2007  (14  AD,  9  AST),  as  some  activities,  currently  performed 
under the FP6, will be continued under the CIP; 

•  16 Research posts in DG Information Society and Media are currently 
working  on  non  Research  area  and  are  to  be  transformed  in 
“Fonctionnement” posts, as from 2007 (11 AD and 5 AST) to work in 
the  ICT  Programme.  This  is  a  “part”  of  the  compensation  already 
requested by  DG INFSO in the  framework of  the APS  exercise 2006, 
where  50  Research  posts  were  requested  to  be  transformed  in 
“fonctionnement“ posts. 

8.2.4.  Other Administrative expenditure included in reference amount (XX 01 04/05  – 

Expenditure on administrative management) 

EUR million (to 3 decimal places) 

Budget line 

(number and heading) 

2007  2008  2009  2010  2011  2012  2013 

TOT
AL 

1  Technical 
assistance 
costs) 

and 

(including  related 

administrative 
staff 

EN 

87 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
     Executive agencies92 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

     Other 

technical  and  administrative 

assistance 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

                  - intra muros  

                  - extra muros 

   Total  Technical  and  administrative 
assistance 

27 

30 

37 

40 

47 

50 

55 

286 

8.2.5.  Financial cost of human resources and associated costs not included in the 

reference amount93 

EUR million (to 3 decimal places) 

Type of human resources 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Officials  and 
staff (XX 01 01) 

temporary 

3,240 

3,240 

3,240 

3,240 

3,240 

3,240 

3,240 

Staff  financed  by  Art  XX 
01  02  (auxiliary,  END, 
contract staff, etc.) 

(specify budget line) 

Total cost of Human 
Resources and associated 
costs (NOT in reference 
amount) 

- 

- 

- 

- 

- 

- 

- 

3,240 

3,240 

3,240 

3,240 

3,240 

3,240 

3,240 

Calculation– Officials and Temporary agents 

The  cost  of  the  30  additional  officials  and  temporary  staff  (XX  01  01)  posts  has  been 
calculated at an average cost of 108000 € per post year. 

Total: 3.240.000 

8.2.6 Other administrative expenditure not included in reference amount 

92 

93 

To  be  determined;  as  far  as  the  Intelligent  Energy  –  Europe  Programme  is  concerned,  the  same 
proportion  of  expenses  for  the  executive  agency  will  be  aimed  for  as  under  the  Intelligent  Energy  – 
Europe (2003-2006) programme.  
Increase  in  staff  only  foreseen  for  the  first  year  (2007),  therefore  costs  remain  stable  throughout  the 
period. 

EN 

88 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
EUR million (to 3 decimal places) 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n 

Year 
n+5 

and 
later 

TOTAL 

     XX 01 02 11 01 – Missions 

     XX 01 02 11 02 – Meetings & Conferences 

     XX 01 02 11 03 – Committees94  

     XX 01 02 11 04 – Studies & consultations 

     XX 01 02 11 05 - Information systems 

 2 

  Total  Other  Management 
Expenditure (XX 01 02 11) 

3 

Other 

expenditure 

administrative 
including reference to budget line) 

nature 

of 

an 
(specify 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Administrative expenditure, other 
than human resources and associated 
costs (NOT included in reference 
amount) 

- 

- 

- 

- 

- 

- 

Calculation - Other administrative expenditure not included in reference amount 

- 

- 

- 

- 

- 

- 

- 

- 

It  is  envisaged  to  run  the  framework  Programme  with  no  additional  administrative 
expenditure not included in the reference amount, as compared to the current expenditure for 
the implementation of the Programme’s elements as existing today. 

94 

Specify the type of committee and the group to which it belongs. 

EN 

89 

   EN