Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EC) No 294/2008establishing the European Institute of Innovation and Technology
Date: 2011-11-30
Institutions: European Commission
Subjects: EU office or agency, EU research policy, higher education, innovation, research body

EUROPEAN COMMISSION 

Brussels, 30.11.2011 
COM(2011) 817 final 

2011/0384 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EC) No 294/2008 
establishing the European Institute of Innovation and Technology 

(Text with EEA relevance) 

{SEC(2011) 1433 final} 
{SEC(2011) 1434 final} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  European  Institute  of  Innovation  and  Technology  (EIT)  has  been  set  up  by  Regulation  (EC) 
294/2008 with the objective to contribute to sustainable economic growth and competitiveness by 
reinforcing the innovation capacity of the EU and its Member States. During the period 2014-2020 
the EIT will contribute to the general objective of "Horizon2020 - The Framework Programme for 
Research and Innovation" (hereinafter referred to as 'Horizon 2020')1, by integrating the knowledge 
triangle of higher education, research and innovation. This integration takes place primarily via the 
Knowledge and Innovation Communities (KICs), which bring together organisations on a long-term 
basis around societal challenges.  

The financial contribution from Horizon 2020 to the EIT will be implemented in accordance with 
the  Regulation  of  the  European  Parliament  and  of  the  Council  laying  down  the  rules  for  the 
participation and dissemination in "Horizon 2020"2. The EIT funding to the KICs will cover "KIC 
added value activities", however the KICs or their partner organisations may apply to other schemes 
under Horizon 2020 or European Union programmes in accordance with their respective rules and 
on equal footing with other applications.  

The proposed amendments are based on several sources: lessons learnt during the initial period, the 
proposal  for  the  EIT  Strategic  Innovation  Agenda,  which  builds  on  the  proposal  of  the  EIT 
Governing Board, the recommendations of the external evaluation report and Commission opinion 
on the evaluation, as well as the results of broad consultations with EIT stakeholders.  

2. 

RESULTS  OF  CONSULTATIONS  WITH  THE  INTERESTED  PARTIES  AND 
IMPACT ASSESSMENTS 

The preparation of the proposal took account of the responses to the open consultations on the EIT3. 
Views  were  expressed  by  the  Member  States  and  a  wide  range  of  stakeholders  from  industry, 
academia and civil society. It showed a strong support to the mission of the EIT to drive more and 
better  cooperation  between  the  worlds  of  academia,  entrepreneurship,  research  and  innovation. 
According to respondents, the EIT should play a distinctive role in 'Horizon 2020', the future EU 
Programme for Research and Innovation, and forge closer links with other European and national 
efforts.  A  majority  of  respondents  praised  the  way  in  which  the  EIT  ensures  the  participation  of 
businesses  in  its  work  and  urged  the  Institute  to  step  up  its  outreach  activities.  Moreover, 
respondents considered business involvement as highly relevant for the future success of the EIT. 
Flexibility,  clarity  on  rules  and  clear  returns  on  investment  is  therefore  fundamental  in  order  to 
attract private sector participation. 

The  proposal  also  relies  on  the  external  evaluation  report  in  which  the  concept  of  integrating  the 
knowledge triangle is regarded as highly relevant and the themes around which the EIT is structured 
are well-received. There is much support for the model which has been developed by the EIT, based 
around integrated networks of co-location centres. Respondents were also positive, and consistent, 
in their perspective that the value of the KICs was in acting as a catalyst to secure additional value 
from the activities which individual members already undertook. 

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3 

OJ C. p. 
OJ C. p. 
http://ec.europa.eu/education/eit/eit-consultation_en.htm 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

The  proposal  is  based  on  the  Article  173  TFEU  and  will  be  implemented  as  centralised  indirect 
management  

4. 

BUDGETARY IMPLICATION 

During the period 2014-2020 a financial contribution of 3.182.230 million Euro (current prices) for 
the  EIT  will  be  provided  from  Horizon  2020,  the  Framework  Programme  for  Research  and 
Innovation  (2014-2020).  The  legislative  financial  statement  attached  to  this  proposal  sets  out  the 
budgetary, human and administrative resource implications. 

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2011/0384 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EC) No 294/2008 
establishing the European Institute of Innovation and Technology 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the European Commission, 

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

Having regard to the opinion of the European Economic and Social Committee4, 

Having regard to the opinion of the Committee of the Regions5, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

The Europe  2020 strategy for smart, sustainable and  inclusive  growth assigns  a  prominent 
role to the European Institute of Innovation and Technology (hereinafter referred to as the 
EIT) which contributes to a number of flagship initiatives.  

During the period 2014-2020 the EIT should contribute to "Horizon2020 - The Framework 
Programme for Research and Innovation" established by Regulation No XX/XXXX of the 
European  Parliament  and  of  the  Council  (hereinafter  referred  to  as  'Horizon  2020')6 
objectives by integrating the knowledge triangle of research, innovation and education.  

In order to ensure a coherent framework for participants in Horizon 2020, the Regulation No 
XX/XXXX  of  the  European  Parliament  and  of  the  Council  laying  down  the  rules  for  the 
participation and dissemination in 'Horizon 2020' – the Framework Programme for Research 
and Innovation (2014-2020) (hereinafter referred to as 'Rules for Participation') should apply 
to the EIT. 

4 
5 
6 

OJ C , , p. . 
OJ C , , p. . 
OJ C. p. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

The rules concerning the management of intellectual property rights are defined in the Rules 
for Participation. 

The  rules  concerning  participating  states  and  third  countries  are  defined  in  Horizon  2020 
Regulation. 

The  EIT  should  directly  engage  with  national  and  regional  representatives  and  other 
stakeholders from across the innovation chain, generating beneficial effects on both sides. In 
order  to  render  such  dialogue  and  exchange  more  systematic,  an  EIT  Stakeholder  Forum 
should be organised, bringing together the wider community of stakeholders around cross-
cutting issues.  

The  scope  of  the  EIT  contribution  to  the  Knowledge  and  Innovation  Communities 
(hereinafter  referred  to  as  KICs)  should  be  defined  and  the  origins  of  KICs'  financial 
resources clarified. 

The  composition  of  the  EIT  bodies  should  be  simplified.  The  functioning  of  the  EIT 
Governing Board should be streamlined and the respective roles and tasks of the Governing 
Board and the Director should be further clarified.  

New  KICs,  including  their  priority  fields  and  the  organisation  and  timing  of  the  selection 
process,  should  be  launched  on  the  basis  of  modalities  defined  in  the  Strategic  Innovation 
Agenda. 

(10)  The  KICs  should  broaden  their  educational  activities,  by  providing  professional  training 

courses.  

(11)  Cooperation  on  the  organisation  the  monitoring  and  evaluations  of  the  KICs  between  the 
Commission and the EIT is required to ensure coherence with overall EU level monitoring 
and evaluation system. 

(12)  The KICs should seek synergies with relevant European Union initiatives. 

(13) 

In  order  to  assure  broader  participation  of  organizations  from  different  Members  States  in 
the KICs, the partner organizations should be established in at least three different Member 
States. 

(14)  The criteria and procedures for the financing, monitoring and evaluation of the activities of 
the KICs should be adopted by the EIT prior to launching the KIC selection process. 

(15)  The  EIT  Triennial  Work  Programme  should  take  into  account  the  Commission's  opinion 
its 

the  EIT's  specific  objectives,  as  defined 

concerning 
complementarities with European Union policies and instruments. 

in  Horizon  2020,  and 

(16)  The  EIT,  being  under  Horizon  2020,  will  be  part  of  the  mainstreaming  of  climate  change 

expenditures as defined in Horizon 2020. 

(17)  The evaluation of the EIT should provide timely input to the evaluation of Horizon 2020 in 

2017 and 2023. 

(18)  The  Commission  should  strengthen  its  role  in  monitoring  the  implementation  of  specific 

aspects of EIT activities. 

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(19)  This  Regulation  lays  down,  for  the  period  2014  to  2020,  a  financial  envelope  constituting 
the prime reference, within the meaning of point [17] of the Inter-institutional Agreement of 
XX/YY/201Z  between  the  European  Parliament,  the  Council  and  the  Commission  on 
cooperation  in  budgetary  matters  and  on  sound  financial  management,  for  the  budgetary 
authority  during  the  annual  budgetary  procedure.  The  financial  contribution  for  the  EIT 
should be provided from Horizon 2020. 

(20)  Although initially foreseen, the EIT Foundation will not receive a direct contribution from 

the EU budget, the EU discharge procedure should not apply to it.  

(21)  For reasons of clarity the Annex to Regulation (EC) No 294/2008 should be replaced by a 

new Annex.  

(22)  Regulation (EC) No 294/2008 should therefore be amended accordingly. 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 294/2008 is amended as follows: 

(1) 

Article 2 is amended as follows: 

(a)  Paragraphs 3 and 4 are deleted. 

(b)  Paragraph 7 is replaced by the following: 

"higher  education  institution"  means  an  institution  within  the  meaning  of  Article  2  of 
Decision (EC) No XXX/20XX of the European Parliament and of the Council establishing 
"Erasmus for all". 

(c) 

the following paragraph 10 is added: 

"10. 'Stakeholder Forum' means a meeting open to representatives of national and regional 
authorities, organized interests and individual entities from business, higher education, and 
research,  cluster  organisations,  as  well  as  other  interested  parties  from  across  the 
knowledge triangle". 

(d) 

the following paragraph 11 is added: 

11.  "KIC  added  value  activities"  means  activities  carried  out  by  partner  organisations 
contributing to the integration of the knowledge triangle of research, innovation and higher 
education, including establishment, administrative and coordination activities of the KICs. 

(2) 

Article 3 is replaced by the following: 

"Article 3 

Mission and Objectives 

The EIT’s mission is to contribute to sustainable European economic growth and competitiveness 
by  reinforcing  the  innovation  capacity  of  the  Member  States  and  the  Union.  It  shall  do  this  by 
promoting and integrating higher education, research and innovation of the highest standards 

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The EIT' General Objectives, Specific Objectives and result indicators for the period 2014-2020 are 
defined in Horizon 2020". 

(3) 

(4) 

In Article 4(1) point (b) is deleted: 

In Article 5(1) is amended as follows: 

(a)  point (a) is deleted. 

(b)  The following point (j) is inserted 

"(j) convene, at least once a year, the Stakeholders Forum to inform about the activities of 
the EIT, its experiences, good practices and contribution to Union innovation, research and 
education policies and objectives. Stakeholders shall be invited to express their views." 

(5) 

In Article 6(1), point (c) is replaced by the following: 

"(c) education and training activities at masters and doctoral level, as well as professional 
training courses, in disciplines with the potential to meet future European socio-economic 
needs and which promote the development of innovation-related skills, the improvement of 
managerial and entrepreneurial skills and the mobility of researchers and students;". 

(6) 

Article 7 is amended as follows: 

(a)  paragraph 1a is inserted: 

"1a. The EIT shall launch the selection and designation of KICs according to the priority 
fields and time schedule defined in the SIA." 

(b) 

in paragraph 2, the following point (h) is added: 

"(h) readiness to establish synergies with other European Union initiatives,"  

(c)  paragraph 3, is replaced by the following: 

"3.  The  minimum  condition  to  form  a  KIC  is  the  participation  of  at  least  three  partner 
organisations,  established  in  at  least  three  different  Member  States.  All  these  partner 
organisations must be independent of each other, within the meaning of Article 7 of Rules 
for Participation". 

(d)  paragraph 4 is replaced by the following: 

"4.  The  majority  of  the  partner  organisations  forming  a  KIC  shall  be  established  in  the 
Member States. At least one higher education institution and one private company shall be 
part of each KIC. " 

(e) 

the following paragraph 5 is added: 

"5.  The  EIT  shall  adopt  criteria  and  procedures  for  the  financing,  monitoring  and 
evaluating of the activities of the KICs prior to the launching of the selection procedure for 
new KICs." 

(7) 

The following Article 7a is inserted: 

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"Article 7a 

Principles for the evaluation and monitoring of KICs 

The EIT, shall on the basis of key performance indicators and in cooperation with the Commission, 
organise continuous monitoring and periodic external evaluations of the outputs, results and impact 
of each KIC." 

(8) 

The following Article 7b is inserted: 

"Article 7b 

Duration, continuation and termination of a KIC 

1. 

2. 

3. 

Subject to the outcomes of periodic evaluations and to the specificities of particular fields, 
a KIC shall normally have a time-frame of seven to fifteen years. 

The  Governing  Board  may  decide  to  extend  the  operation  of  a  KIC  beyond  the  period 
initially set if this is the most appropriate way to achieve the objectives of the EIT. 

In the event that evaluations of a KIC show inadequate results, the Governing Board shall 
take appropriate measures including reduction, modification or withdrawal of its financial 
support or termination of the agreement." 

(9) 

Article 10 is deleted. 

(10) 

Article 14 paragraph 2 is replaced by the following: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

"2. The KICs shall be financed, in particular, from the following sources: 

contributions from partner organizations, forming a substantial source of funding; 

statutory  or  voluntary  contributions  from  Member  States,  third  countries  or  public 
authorities within them; 

contributions from international bodies or institutions;  

revenue  generated  by  the  KICs’  own  activities  and  royalties  from  intellectual  property 
rights; 

capital endowments, including those managed by the EIT Foundation; 

bequests,  donations  and  contributions  from  individuals,  institutions,  foundations  or  any 
other national bodies; 

contribution from the EIT; 

financial  instruments,  including  those  funded  from  the  general  budget  of  the  European 
Union". 

Contributions may include contributions in kind." 

(11) 

Article 14 (4) is replaced by the following: 

"4. The EIT contribution may cover, up to 100% of total eligible costs of KIC added value 
activities".  

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(12) 

Article 15 is replaced by the following: 

"Article 15 

Programming and reporting 

The EIT shall adopt: 

(a) 

a  rolling  triennial  work  programme,  based  on  the  SIA,  once  it  is  adopted,  containing  a 
statement of the major priorities and planned initiatives of the EIT and the KICs, including 
an estimate of financing needs and sources. It shall also contain appropriate indicators for 
monitoring the KICs and EIT activities. The preliminary rolling triennial work programme 
shall  be  submitted  by  the  EIT  to  the  Commission  by  31  December  each  N-2.  The 
Commission  shall  deliver  an  opinion  within  three  months  with  regard  to  EIT  specific 
objectives as defined in Horizon 2020 and its complementarities with Union policies and 
instruments. The EIT shall take a due account of the Commission opinion, and in case of 
disagreement  justify  its  position.  The  final  work  programme  shall  be  transmitted  by  the 
EIT  to  the  European  Parliament,  the  Council,  the  Commission,  the  European  Economic 
and Social Committee and the Committee of the Regions for information; 

(b) 

an annual report by 30 June each year. The report shall outline the activities conducted by 
the EIT and the KICs during the preceding calendar year and assess the results with respect 
to  the  objectives,  indicators  and  timetable  set,  the  risks  associated  with  the  activities 
carried out, the use of resources and the general operation of the EIT." 

(13) 

Article 16 is amended as follows: 

(a) 

(b) 

in paragraph 2, the word "five" is replaced by the word "three"; 

the following paragraph 2a is inserted: 

"2a. The Commission may carry out further evaluations on themes or topics of strategic relevance, 
with the assistance of independent experts, to examine the progress made by the EIT towards the 
objectives set, identify the factors contributing to the implementation of the activities and identify 
good practices." 

(14) 

In Article 17, the following paragraph 2a is inserted: 

"2a. The SIA shall include  an analysis of potential synergies and complementarities  between EIT 
activities and other Union initiatives, instruments and programmes." 

(15) 

Article 19 is replaced by the following: 

"Article 19 

Budgetary commitments 

The  financial  envelope  from  Horizon  2020  for  the  implementation  of  this  Regulation  during  the 
period  from  1  January  2014  to  31  December  2020  is  set  at  EUR  3.182,230  million  The  annual 
appropriations  shall  be  authorised  by  the  budgetary  authority  within  the  limits  of  the  financial 
framework.  The  EIT  financial  contribution  to  the  KICs  shall  be  provided  under  this  financial 
envelope." 

(16) 

In Article 20, paragraph 5 is replaced by the following: 

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"5. The Governing Board shall adopt the draft estimate, accompanied by a draft establishment plan 
and the preliminary rolling triennial work programme and forward them by 31 December N-2 to the 
Commission." 

(17) 

In Article 20, paragraph 6 is replaced by the following: 

"6.  On  the  basis  of  the  estimate,  the  Commission  shall  enter  in  the  draft  general  budget  of  the 
European Union the estimates it deems necessary for the amount of the subsidy to be charged to the 
general budget." 

(18) 

Article 21 is amended as follows 

(a) 

the following paragraph 1a is inserted: 

"1a. The financial contribution to the EIT, shall be implemented in accordance with the Regulation 
of the European Parliament and of the Council establishing Horizon 2020 and with the Regulation 
of  the  European  Parliament  and  of  the  Council  laying  down  the  rules  for  the  participation  and 
dissemination in Horizon 2020". 

(b) 

paragraph 4 is replaced by the following: 

"4. Upon a recommendation from the Council, the European Parliament shall, before 30 April of the 
year n + 2, give a discharge for the year n to the Director in respect of the implementation of the 
EIT budget." 

(19) 

Article 22(4) is deleted 

(20) 

The following Article 22a is inserted: 

"Article 22a 

Winding up of the EIT 

In the event  of winding up  of the EIT,  its  liquidation shall intervene under the supervision of the 
Commission  in  conformity  with  the  laws  applicable.  The  agreements  with  the  KICs  and  the  act 
establishing the EIT Foundation shall lay down the appropriate provisions in such situation." 

The Annex to Regulation (EC) No 294/2008 shall be replaced by the Annex to this Regulation. 

Article 2 

This Regulation shall enter into force on 1 January 2014. 

Article 3 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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1. 

2. 

Statutes of the European Institute of Innovation and Technology 

ANNEX 

Section 1 

Composition of the Governing Board 

The Governing Board shall consist both of appointed and representative members. 

There shall be 12 appointed members, appointed by the Commission, providing a balance 
between those with experience in business, higher education and research. They shall have 
a four-year non-renewable term of office. 

Whenever necessary, the Governing Board shall submit to the Commission a proposal for 
appointment of a new member(s). The candidate(s) shall be chosen based on the outcome 
of a transparent and open procedure, involving consultation with stakeholders. 

The  Commission  shall  have  regard  to  the  balance  between  higher  education,  research, 
innovation and business experience as well as to gender balance and an appreciation of the 
higher education, research and innovation environments across the Union. 

The Commission shall appoint the member(s) and inform the European Parliament and the 
Council  about  the  selection  process  and  the  final  appointment  of  those  members  of  the 
Governing Board. 

In  the  event  that  an  appointed  member  is  unable  to  complete  his/her  term  of  office,  a 
substitute member shall be appointed by the same procedure as the incapacitated member 
in order to complete the latter’s term of office. A substitute member, who has served for a 
period  of  less  then  two  years,  may  be  re-appointed  by  the  Commission  for  a  period  of 
additional four years upon request of the Governing Board. 

During  a  transitional  period,  the  Board  members initially  appointed  for  a  six  year  period 
shall complete their mandate. Until that time there shall be 18 appointed members. Within 
six months after entry into force of this regulation, one third of twelve members appointed 
in 2012 shall be chosen by the Governing Board with the Commission approval to serve 
for a two year period, one third for a four year period and one third for a six year period. 

3. 

There shall be three representative members elected by the KICs from among their partner 
organizations.  They  shall  have  a  two-year  term  of  office,  renewable  once.  Their  term  of 
office shall cease if they leave the KIC. 

The conditions and modalities for election and replacement of the representative members 
shall be adopted by the Governing Board on the basis of a proposal from the Director. This 
mechanism  shall  ensure  an  appropriate  representation  of  the  diversity  and  shall  take  into 
account the evolution of the KICs. 

During  a  transitional  period,  the  representative members  initially  elected  for  a  three  year 
period  shall  complete  their  mandate.  Until  that  time  there  shall  be  four  representative 
members. 

4. 

The Governing Board members shall act in the interests of the EIT, safeguarding its goals 
and mission, identity and coherence, in an independent way.  

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Section 2 

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1. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

(m) 

(n) 

(o) 

(p) 

Responsibilities of the Governing Board 

The Governing Board shall take necessary strategic decisions, in particular: 

adopt  the  EIT  draft  Strategic  Innovation  Agenda  (SIA),  the  triennial  rolling  work 
programme, its budget, its annual accounts and balance sheet and its annual activity report, 
on the basis of a proposal from the Director; 

adopt criteria and procedures for the financing, monitoring and evaluating of the activities 
of the KICs, on the basis of a proposal from the Director; 

adopt the selection procedure of the KICs; 

select and designate a partnership as a KIC or withdraw the designation if necessary; 

ensure continuing evaluation of the activities of KICs; 

adopt  its  rules  of  procedure,  those  for  the  Executive  Committee,  as  well  as  the  specific 
financial rules of the EIT; 

define,  with  the  Commission’s  agreement,  appropriate  honoraria  for  members  of  the 
Governing Board and of the Executive Committee; these honoraria shall be benchmarked 
against similar provision in the Member States; 

adopt a procedure for selecting the Executive Committee and the Director; 

appoint  and  if  necessary  dismiss  the  Director,  and  exercise  disciplinary  authority  over 
him/her; 

appoint the Accounting Officer and the members of the Executive Committee;  

adopt a code of good conduct regarding conflicts of interest; 

establish where appropriate advisory groups which may have a defined duration; 

set  up  an  Internal  Auditing  Function  in  accordance  with  Commission  Regulation  (EC, 
Euratom) No 2343/2002; 

be  empowered  to  establish  a  Foundation  (hereinafter  referred  to  as  the  EIT  Foundation) 
with the specific objective of promoting and supporting the activities of the EIT; 

decide  on  EIT’s  language  regime,  taking  into  account  the  existing  principles  on 
multilingualism and the practical requirements of its operations; 

promote the EIT globally, so as to raise its attractiveness and make it a world-class body 
for excellence in higher education, research and innovation. 

Section 3 

Functioning of the Governing Board 

1. 

The Governing Board shall elect its Chairperson from among the appointed members. The 
term of office of the Chairperson shall be two years, renewable once. 

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2. 

3. 

4. 

5. 

1. 

2. 

3. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

Without  prejudice  to  paragraph  3,  the  Governing  Board  shall  adopt  decisions  by  simple 
majority of members having a right to vote. 

However,  decisions  under  Section  2(2)  (a),  (b),  (c),  (i)  and  (o),  and  Section  3(1)  shall 
require a majority of two thirds of all its members. 

The representative members may not vote on decisions under Section 2(2)(b), (c), (d), (e), 
(f), (g), (i), (j), (k), (o) and (p) 

The  Governing  Board  shall  meet  in  ordinary  session  at  least  three  times  a  year  and  in 
extraordinary session when convened by its Chairperson or on request of at least one third 
of its members. 

The  Governing  Board  shall  be  assisted  by  the  Executive  Committee.  The  Executive 
Committee  shall  consist  of  three  persons  including  the  Chairperson  of  the  Governing 
Board  who  will  also  chair  the  Executive  Committee.  The  two  members  other  than  the 
Chairperson shall be chosen by the Governing Board from among the Governing Board’s 
appointed  members.  The  Governing  Board  may  delegate  specific  tasks  to  the  Executive 
Committee. 

Section 4 

The Director 

The  Director  shall  be  a  person  with  expertise  and  high  reputation  in  the  areas  where  the 
EIT operates. The Director shall be appointed by the Governing Board for a term of office 
of  four  years.  The  Governing  Board  may  extend  that  term  of  office  once  by  four  years 
when it considers that the interests of the EIT are best served by so doing. 

The Director shall be responsible for operations and for the day-to-day management of the 
EIT  and  be  its  legal  representative.  The  Director  shall  be  accountable  to  the  Governing 
Board and report to it on an ongoing basis on the development of the EIT activities. 

The Director shall in particular: 

organize and manage the activities of the EIT; 

support  the  Governing  Board  and  the  Executive  Committee  in  their  work,  provide  the 
secretariat  for  their  meetings  and  with  all  information  necessary  for  the  performance  of 
their functions; 

prepare  a  draft  SIA,  a  preliminary  rolling  triennial  work  programme,  the  draft  annual 
report and the draft annual budget for submission to the Governing Board; 

prepare and administer the selection process for KICs and ensure that the various stages of 
that process are carried out in a transparent and objective manner; 

organise and manage the activities of the EIT; 

prepare, negotiate and conclude contractual agreements with the KICs; 

organize the Stakeholders Forum; 

ensure  the  implementation  of  effective  monitoring  and  evaluation  procedures  relating  to 
the performance of the EIT in accordance with Article 16 of the Regulation; 

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(i) 

(j) 

(k) 

(l) 

1. 

2. 

3. 

4. 

be responsible for administrative and financial matters, including the implementation of the 
EIT budget. In this the Director shall take due account of advice received from the Internal 
Auditing Function; 

be responsible for all staff matters; 

submit the draft annual accounts and balance sheet to the Internal Auditing Function, and 
subsequently to the Governing Board, through the Executive Committee; 

ensure  that  the  obligations  of  the  EIT  with  regard  to  the  contracts  and  agreements  it 
concludes are met; 

Section 5 

Staff of the EIT 

The staff of the EIT shall consist of personnel employed directly by the EIT under fixed 
term  contracts.  The  conditions  of  employment  of  other  servants  of  the  European  Union 
shall apply to the Director and the Staff of the EIT. 

Experts may be seconded to the EIT for a limited duration by participating States or other 
employers. 

The Governing Board shall adopt provisions enabling seconded experts from participating 
States or other employers to work at the EIT and defining their rights and responsibilities. 

The  EIT  shall  exercise,  with  regard  to  its  staff,  the  powers  which  are  devolved  to  the 
authority authorized to conclude the contracts with the staff members. 

A member of staff may be required to make good, in whole or in part, any damage suffered 
by  the  EIT  as  a  result  of  serious  misconduct  on  his/her  part  in  the  course  of  or  in 
connection with the performance of his/her duties. 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1. 

Title of the proposal/initiative 

1.2. 

Policy area(s) concerned in the ABM/ABB structure 

1.3. 

Nature of the proposal/initiative 

1.4. 

Objective(s) 

1.5. 

Grounds for the proposal/initiative 

1.6. 

Duration and financial impact 

1.7.  Management method(s) envisaged 

2. 

MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

2.2.  Management and control system 

2.3. 

Measures to prevent fraud and irregularities 

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

3.1. 

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

3.2. 

Estimated impact on expenditure 

3.2.1. 

Summary of estimated impact on expenditure 

3.2.2.  Estimated impact on EIT's appropriations 

3.2.3.  Estimated impact on EIT's human resources of an administrative nature 

3.2.4.  Compatibility with the current multiannual financial framework 

3.2.5.  Third-party participation in financing 

3.3. 

Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1. 

Title of the proposal/initiative 

Amendment of the Regulation of the European Parliament and the Council establishing the 
European Institute of Innovation and Technology (EIT) 

1.2. 

Policy area(s) concerned in the ABM/ABB structure7 

Horizon 2020 – The Framework Programme for Research and Innovation (2014-2020) 

15. Education and Culture 

1.3. 

Nature of the proposal/initiative 

(cid:133) The proposal/initiative relates to a new action 

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action8 

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

(cid:133) The proposal/initiative relates to an action redirected towards a new action 

1.4. 

Objectives 

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

The  main  general  mission  for  the  EIT  for  the  period  2014-2020  is  to  contribute  to 
sustainable European economic growth and competitiveness by reinforcing the innovation 
capacity of the Member States and the Union. It shall do this by promoting and integrating 
higher education, research and innovation of the highest standards. After an initial period, 
the long-term strategy of the EIT is to be set up in the Strategic Innovation Agenda (SIA), 
to be adopted by the European Parliament and the Council, on the basis of a Commission 
proposal.  The  SIA  builds  on  the  version  submitted  to  the  Commission  by  the  EIT 
Governing Board in June 2011.The SIA is a policy document outlining the priority fields 
of the EIT for future, including an overview of the planned activities for a period of seven 
years, in particular, the priority fields for the EIT Knowledge and Innovation Communities 
(KICs) and their selection and designation.  

For  the  period  2014-2020  the  EIT  will  become  a  key  player  of  Horizon  2020,  the 
Framework Programme for Research and Innovation, from which it will receive a financial 
contribution  of  3,182.230  billion  Euros  (current  prices)  as  established  under  Art.6.3  of 
Regulation  No  XX/XXXX  of  the  European  Parliament  and  of  the  Council  establishing 
Horizon 2020, the Framework Programme for Research and Innovation. Horizon 2020 is 
built  around  the  following  three  complementary  and  interlinked  pillars:  Excellence  in 
science;  Tackling  societal  challenges;  Creating  industrial  leadership  and  Competitive 
frameworks. The EIT will contribute primarily to the pillar "Tackling societal challenge" 

7 
8 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

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through  its  innovation  activities  and  knowledge  triangle  integration.  However,  given  its 
integrated,  cross–cutting  nature,  synergies  will  also  be  sought  with  other  pillars,  in 
particular the "competitiveness" pillar. 

A  first  allocation  of  EUR  1.493  million  shall  be  provided  to  the  European  Institute  of 
Innovation and Technology for activities under Title XVII of the Treaty on the Functioning 
of the European Union. A second allocation of up to EUR 1.689 million shall be provided, 
subject to the review set out in Article 26 (1) of the Regulation of the European Parliament 
and of the Council establishing Horizon 2020. This additional amount shall be provided on 
a  pro-rata  basis,  as  indicated  in  Annex  II,  from  the  amount  for  the  specific  objective 
"Leadership  in  enabling  and  industrial  technologies"  within  the  priority  on  industrial 
leadership  set  out  in  paragraph  2(b)  and  from  the  amount  for  the  priority  on  societal 
challenges set out in 2(c). 

This funding in two multiannual allocations will cover:  

– 
in  the  first  allocation,  the  ongoing  developments  of  the  current  Knowledge  and 
Innovation Communities (hereinafter KICs) and seed money for the launch of the second 
wave of three new KICs 

in  the  second  allocation,  the  ongoing  developments  of  the  KICs  already  launched 

– 
and the seed money for the launch of the third wave of three new KICs 

The EIT financial contribution is based on a necessary expenditure for consolidation of the 
existing  three  KICs  (around  1.691  million  €    –  53.15%  of  the  total  EIT  budget),  gradual 
development towards new KICs in 2014 (1.012 million €– 31.81% of the total EIT budget) 
and 2018 (259,75 millions € – 8.16% of the total EIT budget), dissemination and outreach 
activities  (141,762  millions  €v–  4,45%  of  the 
total  EIT  budget)  and  administrative 
expenditure (77 millions € – 2.42%  of the total EIT budget),  

The projected EIT budget for the KICs during the period 2014-2020, corresponding to 25% 
of  the  KICs  budget  (KIC  added  value  activities),  is  equals  to  2.963,506  million  euro 
(93.13%  of  the  EIT  total  budget  for  the  period  2014/2020).  The  KICs  are  expected  will 
thereby mobilise a further 8,890 billion euro of other public and private sources (leverage 
effect).  

The contribution from KIC partners is not a classic grant "co-financing" requirement but as 
a  pre-requisite  for  a  minimum  level  of  involvement  of  existing  organisations  and  their 
financial  commitment  to  the  KIC.  This  bottom-up  approach:  (a)guaranteesstrong 
commitment  from  KIC  partners  (b)  incentivizes  investment  and  (c)  stimulates  structural 
and organizational change among KIC partners and beyond. 

1.4.2. 

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

Specific objectives 

As  defined  under  Regulation  XXX  of  the  European  Parliament  and  of  the  Council 
establishing  Horizon  2020,  the  Framework  Programme  for  Research  and  Innovation,  the 
EIT objective is to overcome fragmentation in the European innovation landscape and to 
enhance  Europe's  attractiveness  as  a  location  of  choice  for  top  level  talent  and 
entrepreneurs. 

This objective will be implemented through the following specific objectives and outputs:  

– 

– 

Consolidate the three existing KICs fostering their growth, impact and sustainability;  

Gradually develop towards new KICs; 

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Enhance  EIT's  impact  via  knowledge  sharing,  dissemination,  outreach  and 

– 
international exposure.  

In  this  context,  the  EIT  will  contribute  to  their  achievement  through  the  following 
operational objectives:  

To integrate the knowledge triangle (of research, innovation and education) to create 
– 
economic and social value and to enhance the returns from greater levels of collaboration 
and co-operation. 

To enhance the attractiveness and commercial relevance of post-graduate education 

– 
opportunities to attract, develop and retain appropriate skills across the EU. 

To  exploit  the  underutilised  potential  of  the  EU’s  research  strengths  to  deliver 

– 
greater returns in the product and labour markets. 

To develop effective collaborative linkages between centres of excellence to create a 

– 
critical mass for advanced innovation and education. 

To  promote  the  development  of  innovative  products  and  processes  where  market 

– 
failures lead to a sub-optimal provision.  

– 
To strengthen the capacity for entrepreneurship across the EU to create new business 
activity and increased realisation of the potential value of research and educational outputs. 

– 
To strengthen existing and potential centres of research, innovation and educational 
excellence  in  the  EU  to  produce  globally  competitive  centres  of  activity  with  global 
reputations for excellence. 

– 
To  address  disparities  in  innovation  capacity  across  the  EU  by  developing  and 
sharing  the  knowledge  of  the  returns  to  the  new  models  of  innovation  practices  and 
governance. 

ABM/ABB activity(ies) concerned 

15 - Education and Culture - European Institute of Innovation and Technology 

1.4.3.  Expected result(s) and impact 

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

The proposal is conducive to increase level of innovation and research. It will improve the 
overall  efficiency  of  the  innovation  efforts,  by  addressing  fragmentation  and  achieving 
critical  mass.  In  addition,  it  will  generate  value  by  capitalizing  on  existing  research  and 
boosting  its  market  relevance  as  well  as  by  providing  supply-side  improvements  in  the 
innovation process. A strong element of the activity of the EIT is to encourage changes to 
higher  education  provision  in  the  EU,  in  particular  though  an  EIT  quality  label  for  post-
graduate  courses.  This  will  positively  affect  cross-border  educational  provisions  and 
improve access to relevant courses.  
Owing  to  the  multi-  and  cross-disciplinary  approach  adopted  in  the  KICs,  the  sectors  of 
EIT priority fields will potentially engage with the EIT. The territorial impacts of the EIT 
are  likely  to  be  significant.  Regions  which  are  the  site  for  co-location  centres  will  have 
opportunities to gain positive benefits through economies of agglomeration and the reaping 
of  positive  externalities.  These  opportunities  will  be  fostered  if  a  close  cooperation  is 
established between the KIC partners in the regions and the authorities and organisations 
involved in designing and delivering the Regional Innovation Strategies.  
The  Commission  Staff  Working  Paper  on  the  impact  assessment  of  EIT  (IA) 
accompanying this legislative proposal contains more detailed information. 

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1.4.4. 

Indicators of results and impact 

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

To  measure  achievement  of  the  EIT's  specific  objectives,  a  set  of  indicators  are  set  out  in  the 
Regulation  XXX  of  the  European  Parliament  and  of  the  Council  establishing  Horizon  2020.  To 
complement this set of indicators, the achievement of the operational objectives of the EIT will be 
measure by the following set of indicators:  

the 

integrate 

To 
knowledge 
triangle  (of  research,  innovation 
and  education)  to  create  economic 
and social value and to enhance the 
returns  from  greater 
levels  of 
collaboration and co-operation. 

existing 

strengthen 

To 
and 
potential 
centres  of 
research, 
educational 
and 
innovation 
excellence  in  the  EU  to  produce 
globally  competitive  centres  of 
activity with global reputations for 
excellence 

the 

underutilised 
To 
exploit 
potential  of 
the  EU’s  research 
strengths  to  deliver  greater  returns 
in the product and labour markets. 

To  enhance  the  attractiveness  and 
relevance  of  post-
commercial 
graduate education opportunities to 
attract, 
retain 
appropriate skills across the EU. 

develop 

and 

between 

To  develop  effective  collaborative 
linkages 
of 
excellence to create a critical mass 
and 
for 
education. 

innovation 

advanced 

centres 

To  promote  the  development  of 
innovative  products  and  processes 
where  market  failures  lead  to  a 
sub-optimal provision. 

To  strengthen 
the  capacity  for 
entrepreneurship  across  the  EU  to 
create  new  business  activity  and 
increased 
the 
realisation 
potential  value  of  research  and 
educational outputs. 

of 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

540  organisations  from  universities,  business  and  research 
closely cooperating within integrated KICs; 

80 additional organisations joining already designated KICs; 

9  agreements  concerning  management  and  use  of  intellectual 
property within the KICs. 

8.890  billion  billion  Euros  from  other  than  EIT  financial 
sources  mobilised,  corresponding  to  75%  funding  of  the  total 
KICs budget (leverage effect of public and private sources); 

25 entrepreneurial curricula developed; 

85  education  and  training  modules  organised,  including  EIT 
labelled degrees 

3 KICs in the "cruising speed", 3 in the "development" and 3 
in the "start up/development" phase. 

45 KIC's co-location centres established providing for face-to-
face cooperation; 

start-ups 

600 
students/researchers/professors; 

and 

spin-offs 

created 

by  KICs 

6000 innovations in existing businesses developed by KIC 
students/researchers/professors; 

3000 licences and consultancy services. 

10.000 students in EIT Master degrees courses; 

10.000 students in EIT PhDs degrees courses;  

20.000 
students  and 
entrepreneurial courses; 

teachers 

trained  on  non-degree 

100%  of  degree  students  have  performed  geographical 

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– 

– 

– 

– 

– 

mobility and mobility between academia and business;  

25% of the teachers have completed international mobility or 
mobility between academia and business; 

at  least  25%  students  and  teachers  should  be  recruited 
internationally. 

600  organisations,  not  participating  in  the  KICs,  benefiting 
from EIT dissemination and outreach activities; 

40 best practices events organised by the EIT/KICs; 

2.500 individuals benefiting from KICs best practices through 
the fellowship schemes. 

address 

disparities 

To 
in 
innovation  capacity  across  the  EU 
by  developing  and  sharing  the 
knowledge  of  the  returns  to  the 
new models of innovation practices 
and governance 

1.5. 

Grounds for the proposal/initiative 

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

– 

– 

– 

Consolidate the three existing KICs9 fostering their growth, impact and sustainability,  

Gradually develop towards new KICs securing their selection and delivery. It is foreseen to 
expand the number of KICs by three new KICs in 2014 and another three in 2018.  

Enhance  EIT's  impact  via  knowledge  sharing,  dissemination,  outreach  and  international 
exposure.  Built  on  the  experience  of  excellent  KICs,  the  EIT  -  through  targeted 
dissemination  and  knowledge  sharing  measures  will  ensure  that  these  experiences  are 
being  shared  beyond  the  KICs  and  thereby  promote  a  fruitful  process  of  mutual  learning 
and  faster  uptake  of  new  innovation  models  across  the  whole  Union  and  all  its  Member 
States.  

1.5.2.  Added value of EU involvement 

The  EIT  explicitly  links  the  full  innovation  cycle  from  education  and  knowledge  creation  to 
innovative approaches in new and existing companies. Its approach represents a number of elements 
by which it brings true added value at EU level:  

• 

9 

Overcoming  fragmentation  via  long-term  integrated  partnerships  and  achieving  critical 
mass through its European dimension. Building on existing cooperation initiatives, the EIT 
brings the selected partnerships in the KICs to a more permanent and strategic level. KICs 
allow  world-class  partners  to  unite  in  new  configurations,  optimize  existing  resources, 
access new business opportunities via new value chains addressing higher risk, larger scale 
challenges. Moreover, while there are a significant number of centres of excellence across 
EU  Member  States,  they  often  do  not  attain  the  critical  mass  for  global  competition 
individually.  The  KICs'  co-location  centres  offer  strong  local  actors  the  opportunity  to 
closely connect to other excellent partners within the overall strategic framework offered 
by the KIC as a whole, thereby allowing them to act and be recognized globally.  

In 2009 the EIT designated three KICs in following areas: climate change adaptation and mitigation (Climate 
KIC),  the  future  information  and  communication  society  (EIT  ICTLabs)  and  sustainable  energy  (KIC 
InnoEnergy). 

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• 

• 

Enhancing  the  impact  of  investments  on  education,  research  and  innovation  and 
testing new ways for innovation governance: The EIT acts as a catalyst, adding value to 
the existing research base, by accelerating the take-up and exploitation of technologies and 
research  outcomes.  Innovation  activities  contribute  in  turn  to  align  and  leverage  research 
investments  and  to  make  education  and  training  activities  responsive  more  to  business 
needs. On this basis, a virtuous, highly interactive process can be generated. To this end, 
the  EIT  has  been  equipped  with  a  substantial  degree  of  flexibility  to  test  out  new 
innovation models, allowing for true differentiation in the KICs' governance and funding 
KICs'  models  and  quick  adaptation  to  better  cope  with  emerging  opportunities  in  the 
respective fields. 

Nurturing  talent  across  borders  and  fostering  entrepreneurship  through  knowledge 
triangle  integration:  The  EIT  nurtures  people-driven  innovation  and  puts  students, 
researchers, and entrepreneurs at the heart of its efforts. The EIT provides new career paths 
between  academia  and  the  private  sector  and  innovative  schemes  for  professional 
development.  The  EIT  label  attached  to  innovative  KICs'  Masters  and  PhD  programmes 
will  contribute  to  creating  an  internationally  recognized  brand  of  excellence  helping  to 
attract  talent  from  Europe  and  abroad.  Entrepreneurship  is  fostered  through  a  new 
generation of world-class students, equipped with the knowledge and attitudes to turn ideas 
into  new  business  opportunities,  thereby  contributing  to  an  effective  exploitation  of 
knowledge and appropriation of the returns on investments by firms. 

1.5.3.  Lessons learned from similar experiences in the past 

The  EIT  has  successfully  completed  its  initial  phase,  which  was  dedicated  to  setting  up  the  EIT 
decision  making  and  executive  functions  –  Governing  Board  and  Headquarters  –  as  well  as  the 
operational arm, the Knowledge and Innovation Communities (KICs).  

For more information, please read the "Proposal for a Decision of the European Parliament and of 
the Council on the Strategic Innovation Agenda for the EIT". 

From  a  financial  view  point,  the  main  learnt  aspects  from  the  initial  set  up  of  KICs  are  the 
following: 

• 

• 

– 

The EIT funding mode which builds on joint strengths and resources of existing excellent 
organizations  with  the  EIT  funding  acting  as  a  catalyst  to  leverage  and  pool  together 
supplementary financial resources from a wide range of public and private partners seems 
appropriate.  Consequently,  the  EIT  funding  is  foreseen  only  for  "KIC  added  value 
activities",  in  particular  education,  entrepreneurship  and  business  creation  projects  of  the 
KICs,  which  top  up  investment  in  well-established  activities  (eg.  existing  research 
projects). 

The  KICs  go  through  various  development  phases  with  different  characteristics  as  to  the 
value of their total budgets. Their need for funding and the absorption capacity is relatively 
limited at the very beginning, during the set-up phase, but develops substantially over the 
following years. The fifteen-year life timeframe of the KIC covers the following phases: 

"setting-up"  phase  of  2  years:  it  is  a  time  for  a  KIC  to  get  organised,  set  up  necessary 
financial  and  legal  structures  as  well  as  recruit  crucial  staff.  During  this  period  the  EIT 
contribution  will  assure  on  average  35%  of  individual  KIC's  budget  corresponding  to  28 
million euro. 

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– 

– 

– 

"development" phase of 3 years: it is assumed that the KIC has been already established 
and begun implementing its core activities, however still dynamically expanding in terms 
of  the  scope  of  activities  and  the  number  of  partners.  During  this  period  the  EIT 
contribution  will  assure  around  26%  of  individual  KIC's  budget  corresponding  to  154,7 
million euro. 
"cruising speed" phase of 6 years: a KIC has a stable structure with clearly defined scope 
of  activities.  During  this  period  the  EIT  contribution  will  assure  on  average  25%  of 
individual KIC's budget corresponding to 475,5 million euro. 
"achieving  sustainability"  phase  of  4  years:  the  activities  of  KIC  are  similar  to  cruising 
speed phase while the EIT contribution will gradually decrease requiring a KIC to assure 
other sources of revenues. During this period the EIT contribution will assure on  average 
22% of individual KIC's budget corresponding to 258 million euro. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

The  inter-relationships  between  research,  innovation  and  education  are  increasingly  being 
recognised within EU initiatives and programmes. There is great potential for mutually reinforcing 
actions, and the strategic framework provided by Horizon 2020 will further ensure these synergies 
are better exploited. 
The  EIT  will  strongly  contribute  to  the  objectives  set  out  in  Horizon  2020,  in  particular  by 
addressing societal challenges in a complementary way to other initiatives in these areas. The EIT 
will  thereby  significantly  contribute  to  promoting  the  framework  conditions  that  are  needed  to 
realise  the  innovative  potential  of  EU  research  and  to  promote  the  completion  of  the  European 
Research Area (ERA). 
Moreover, the EIT brings a fully fledged education dimension to the EU's research and innovation 
policy.  Via  innovative,  entrepreneurial  education  it  plays  an  important  bridging  role  between  the 
research  and  Innovation  Framework  and  education  policies  and  programmes  and  provides  the 
continuity  and  longer  term  institutional  commitment  needed  to  deliver  sustainable  changes  in 
higher education.  
Moreover,  there  are  opportunities  for  mutually  reinforcing  interaction  with  the  Union's  Cohesion 
Policy by addressing the linkages between the local and global aspects of innovation. Co-location 
centres provide for cross-border collaboration within and outside of the KIC networks and are well 
positioned to capitalise and benefit from various funding schemes from their respective regions.  
While  opportunities  for  synergies  differ  depending  on  the  thematic  area  of  a  KIC,  a  number  of 
initiatives  and  programmes  at  EU  level  seem  particularly  prone  to  offering  benefits  from 
cooperation and coordination.  
Joint Programming Initiatives, a key instrument for addressing fragmentation in research, should 
provide the nucleus of the pan-European KIC research base. In turn, KICs can speed up and foster 
the  exploitation  of  excellent  public  research  pooled  together  by  the  JPIs,  thereby  addressing 
fragmentation  in  innovation.  The  Joint  Technology  Initiatives  (JTIs)  and  the  newly  established 
Public  and  Private  Partnerships  provide  platforms  for  promotion  of  large-scale  industry-driven 
research and enhance the development of major technologies. KICs can help catalysing these major 
research  investments  to  boost  technology  transfer  and  commercialisation  and  to  develop  new 
ventures  within  existing  business  via  entrepreneurial  top  talent.  Through  its  knowledge  triangle 
approach, the EIT will complement ERC investment on world-class frontier research by addressing 
the  whole  innovation  chain  from  ideas  to  application  and  exploitation  and  provide  additional 
opportunities  in  innovation  and  exposure  to  entrepreneurship  to  Marie  Curie  researchers  and 
Erasmus for all students. 
The  upcoming  European  Innovation  Partnerships  will  provide  overarching  frameworks  to 
facilitate  alignment  and  synergies  among  existing  supply  and  demand-driven  research  and 
innovation  instruments  and  policies.  For  interactions  with  the  EIPs,  the  distributed  nature  of  the 
KICs  provides  a  structured  network  of  practitioners  well  placed  to  identify  framework  conditions 

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and best practise on policy, regulatory or standardisation issues having an impact in a given sector 
or challenge. 

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1.6. 

Duration and financial impact 

Proposal/initiative of limited duration 

–  X  Proposal/initiative in effect from 01/01/2014 to 31/12/2020 

–    Financial impact from 01/01/2014 to 31/12/2022 

–  (cid:133) Proposal/initiative of unlimited duration 

–  (cid:133) Financial impact from [DD/MM]YYYY to [DD/MM]YYYY 

1.7.  Management mode(s) envisaged10 

Centralised direct management by the Commission 

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

–  (cid:133)  executive agencies 

–  X  bodies set up by the European Union11 

–  (cid:133)  national public-sector bodies/bodies with public-service mission 

–  (cid:133)  persons entrusted with the implementation of specific actions pursuant to Title V of 
the  Treaty  on  European  Union  and  identified  in  the  relevant  basic  act  within  the 
meaning of Article 49 of the Financial Regulation 

(cid:133) Shared management with the Member States 

(cid:133) Decentralised management with third countries 

(cid:133) Joint management with international organisations (to be specified) 

10 

11 

Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As referred to in Article 185 of the Financial Regulation. 

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24 

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2. 

MANAGEMENT MEASURES 

Simplification and flexibility are deemed critical for the success of the EIT and involvement of the 
business community. After the initial period, there is still room for the EIT to exploit its flexibility 
to a full, in order to push simplification further. 

Simplification,  implemented  in  a  responsible  and  accountable  manner,  is  a  must  for  the  EIT  to 
achieve  effective  results  and  promote  innovation  breakthroughs.  The  EIT  considers  simplification 
as dynamic process, embedded in the EIT operation and an integral part of its supporting function 
towards  the  KICs.  To  this  end,  the  EIT  will  strive  to  adapt,  improve  and  streamline  its  internal 
processes and constantly seek for simplified approaches that can help the KICs to cope with new, 
emerging needs and foster their impact.  

Operational simplification:  

Through  KICs'  experimentation  and  experience,  the  EIT  will  deliver  a  simplification  agenda  in 
key  areas,  including  benchmarks  to  assess  progress,  and  report  to  the  Commission  on  its 
implementation progress through the Triennial Work Programme. 

The Commission will monitor closely the EIT's ability to deliver the simplest possible agreements 
and  principles  for  the  funding  and  management  of  KICs  activities,  based  on  the  EIT's  own 
simplification agenda.  

Financial simplification: 

Since one of the objectives of the EIT is to facilitate private sector participation, the EIT Financial 
Rules12, which are based on the Framework Financial Regulation with specific derogations granted 
by the Commission, need to reflect its objectives and the need for sufficient operational flexibility 
to be attractive to its business and research/academic partners.  

On  the  another  hand,  as  provided  under  Article  1  of  the  Regulation  laying  down  the  rules  for 
participation  and  dissemination  under  Horizon  2020,  rules  which  depart  from  those  laid  down  in 
this Regulation, or under Regulation (EU No XX/2012 (the Financial Regulation) will be requested, 
if  needed,  taking  into  account  the  provisions  of  the  EIT  Regulation  and  the  specific  needs  of  the 
EIT. (i.e. call for designation and selection of the new waves of KICs instead of call for proposals). 

In order to reach the objective of simplification, a number of measures will be implemented in the 
grant management process, in line with the simplification of funding rules proposed under Horizon 
2020. This will be provided through: 

• 

• 

12 

Simplified  reimbursement  of  real  direct  costs,  with  a  broader  acceptance  of  KICs’  usual 
accounting, including the eligibility of certain taxes and charges; 

The possibility of using unit personnel costs (average personnel costs) for KICs for which 
this is their usual accounting method, and for SME owners without a salary; 

Commission  Decision  C(2009)  2661  of  3  March  2009  granting  consent  to  the  derogations  requested  by  the 
European  Institute  of  Innovation  and  Technology  from  Regulation  (EC,  Euratom)  No  2343/2002  on  the 
Framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) 
No 1605/2002 

EN 

25 

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• 

• 

• 

• 

• 

• 

Simplification  of  time-recording  by  providing  a  clear  and  simple  set  of  minimum 
conditions,  in  particular  abolition  of  time-recording  obligations  for  staff  working  full 
time/more than half time on the EU project; 

One single reimbursement rate for all KICs; 

One single flat rate covering indirect costs as a general rule; 

System of unit costs and flat rates for scholarships; 

A  control  strategy,  as  described  in  section  2.2.2,  achieving  a  balance  between  trust  and 
control will further reduce the administrative burden for KICs. 

In accordance with the Rules for Participation proposed under Horizon 2020, the value of 
contributions  in  kind  provided  to  the  KICs  by  third  parties  may  be  eligible,  which 
constitutes a major change compared to the current cost eligibility rules. 

2.1.  Monitoring and reporting rules 

Specify frequency and conditions. 

Rules for monitoring and reporting will be established in view of efficiency and cost effectiveness, 
based on the experience gained. It will be based on a comprehensive, well-timed and harmonised 
strategy, with a strong focus on outputs, results and impacts (see section 1.4.4 of this document). 

MONITORING 

The Commission has reinforced its efforts in supporting the EIT in establishing a sound and solid 
results-oriented monitoring system. The monitoring system should acknowledge the independence 
of  the  EIT  and  the  autonomy  of  the  KIC  and  their  contractual  relations.  At  the  same  time,  the 
monitoring  system  should  ensure  full  accountability  of  the  EIT  and  full  flexibility  of  KIC  in 
pursuing their business plans. The Commission will cooperate with the EIT in order to measure the 
progress achieved. 
The EIT monitoring will be set up in line with the following four layers: 
1. Monitoring of a KIC on the basis of its individual targets and Key Performance Indicators (KPIs) 
stipulated  in  the  KIC  business  plans.  A  substantial  degree  of  leeway  to  the  KICs  will  be  given 
(bottom-up approach) to define their internal strategies and organisation as well as to define their 
activities and mobilise the resources needed.  
2.  The  EIT  monitoring  of  all  KICs,  which  will  focus  on  a  series  of  EIT’s  strategic  objectives,  as 
identified  in  the  EIT  Scoreboard,  covering  a  common  set  of  indicators  across  all  KICs.  The 
Scoreboard  will  focus  on  achievements,  outputs  and  generation  of  both  economic  and  societal 
impact  of  all  KICs.  The  EIT  Scoreboard  will  measure  the  KICs  performance  against  particular 
objectives Moreover, as proposed in the revision of the legal basis, prior to launching the new calls, 
the EIT will publish the criteria and procedures for the financing, monitoring and evaluating of the 
activities of the KICs.  
3.  The  monitoring  of  the  EIT's  own  activities,  which  will  combine  quantitative  and  qualitative 
indicators  in  a  medium-term  perspective.  It  will  measure  for  instance  the  EIT's  performance  in 
providing support to the KICs, the intensity and coverage of outreach (the number of best practice 
events), dissemination and international activities and the impact of the EIT in the wider European 
policy innovation, research and education agendas (for example % adoption of EIT tested models 
by other initiatives). 
4. Monitoring and Evaluation of the EIT as an EU innovation institute under Horizon 2020, which 
will  be  done  be  the  Commission  in  accordance  with  the  provisions  of  the  EIT  Regulation  and  as 
also described under Articles 25 and 26 of the Regulation XXX of the European Parliament and of 

EN 

26 

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the Council on Horizon 2020 of XXX. The evaluations are foreseen for 2016 (only the EIT), 2017 
(EIT  interim  Evaluation  as  part  of  Horizon  2020)  and  2023  (EIT  ex-post  Evaluation  as  part  of 
Horizon 2020). Moreover, it is proposed that the Commission, at any time, may carry out further 
evaluations on themes or topics of strategic relevance. The synergies of EIT planned activities with 
other  EU  programmes  should  be  assured  via  the  assessment  by  the  Commission  of  the  EIT 
Triennial Work Programme. 

REPORTING 

As the EIT is a Union body receiving a subsidy from the European Union budget, from the financial 
management and control perspective, the EIT will be treated as other bodies set up under the Treaty 
and  generally  referred  to  as  Union  agencies.  This  means  that  point  [17]  of  the  Inter-institutional 
Agreement of XX/YY/201Z between the European Parliament, the Council and the Commission on 
cooperation in budgetary matters and on sound financial management, for the budgetary authority 
during  the  annual  budgetary  procedure  applies  to  the  EIT.  As  regards  the  reporting  on  the 
implementation of the monitoring system: 

• 

• 

The Triennial Work Program (TWP) of the EIT will identify relevant priorities and targets 
within  the  strategic  objectives  of  the  EIT  for  the  following  year  (n+1).  KICs  should  be 
consulted on priorities and targets before the final adoption of the TWP in order to be able 
to fully integrate them in their relevant annual Business Plans. 

The  Annual  Activity  Report  for  the  previous  year  (n-1)  will  include  the  results  of  the 
monitoring  process  for  n-1  and  describe  how  and  to  what  extent  objectives  have  been 
achieved.  The  Annual  Activity  Report  should  take  account  of  the  Cost  and  Performance 
Reports of the KIC for the previous year (n-1) of their operations. 

The  KICs  reporting  conditions  have  been  established  in  the  framework  of  the  Framework 
Partnerships  Agreement  and  Annual  Grant  Agreements  (performance  and  cost  reporting).  On  the 
other hand, in order to increase the efficiency and cost-effectiveness and based on the experience 
gained by the EIT during the implementation of the annual grant agreements by the KICs, a number 
of simplifications measures will be implemented in the grant management process, which will have 
as major goals to reduce the administrative workload for KICs and to increase the quality of data 
gathered.  On  the  other  hand,  as  explained  above,  a  common  set  of  indicators  across  all  KICs 
through the Scoreboard will be implemented, with focus on achievements, outputs and generation 
of both economic and societal impact of all KICs.  

2.2.  Management and control system 

2.2.1.  Risk(s) identified 

Taking  into  account  the  clear  need  to  manage  the  European  budget  in  a  efficient  and  effective 
manner, and to prevent fraud and waste, the EIT when implementing the budget, will establish an 
internal  control  system  that  will  give  reasonable  assurance  that  the  error  over  the  course  of  the 
multiannual  expenditure  period,  is  within  a  range  of  2-5%,  and  ideally  around  3.5%,  as  proposed 
under the Regulation laying down the rules for participation and dissemination under Horizon 2020, 
under which basis the internal control system and the audit strategy will be built on. 
The EIT internal control framework will also built on: the Commission Internal Control Standards, 
EIT own procedures, ex-ante checks of 100% of KICs' declared expenditures financed by the EIT, 
audit certificates, ex-ante certification of cost declaration methodologies, ex-post audits on a sample 
of claims, projects results and external evaluation. 
According with Article 38(4) of the Financial Rules of the EIT, the authorising officer has put in 
place, in compliance with the standards adopted by the Governing Board on the basis of equivalent 
standards  laid  down  by  the  Commission,  and  having  due  regard  to  the  risks  associated  with  the 
management environment and the nature of the action financed, the organisational structure and the 

EN 

27 

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internal  management  and  control  systems  and  procedures  suited  to  the  performance  of  the  EIT 
duties. 
The Risk Management Exercise is done on a yearly basis in order to mitigate any risks linked with 
the implementation of  the  whole EIT activities. In this context,  the EIT should take  into account, 
when  establishing  the  internal  control  framework,  the  risks  of  the  activities  implemented,  the 
specific  characteristics  of  the  population  and  recurrence  of  beneficiaries  (actually  3  KICs),  the 
frequency of the grants awarded (annual) and the size of transactions (see point 1.5.3 on the fifteen 
life time frame of  the KIC and the different phases of development) and avoiding any overlap of 
funding.  
Taking into account that the first annual grants to KICs were awarded on 2010, the EIT has not yet 
results  of  error  rates.  However,  during  the  implementation  of  the  current  grant  agreements,  the 
following categories of risks have been identified: 

– 

– 

– 

– 

– 

errors derived from the complexity of rules; 

errors derived from the interpretation of rules; 

respect of eligibility rules;  

supporting documents available;  

wrong calculation of indirect costs. 

The simplification measures described above will also contribute to the improvement and reduction 
of error rates. 

2.2.2.  Control method(s) envisaged 

As  described  under  Article  23  of  the  Regulation  XXX  of  the  European  Parliament  and  of  the 
Council on Horizon 2020 of XXX, the control system set up by the EIT shall provide reasonable 
assurance  of  achieving  adequate  management  of  the  risks  relating  to  the  effectiveness  and 
efficiency of the operations, assuring the legality and regularity of the underlying transactions and 
achieving a balance between trust and control. It will further reduce the administrative burden for 
KICs 
As part of the control system that will be implemented by the EIT, the audit strategy shall be based 
on  the  financial  audit  of  a  representative  sample  of  expenditure  across  the  whole  EIT  budget, 
notably  through  the  annual  grants  awarded  to  KICs  in  a  yearly  basis.  This  representative  sample 
may  be  complemented  by  a  selection  based  on  an  assessment  of  the  risks  related  to  expenditure 
during  the  ex-ante  checks  of  100%  of  claims  and  the  experience  obtained  will  be  used  in  the 
assessment  of  the  control  framework  of  risk  assessment  for  grants  implementation.  Audits  of 
expenditure shall be carried out in a coherent manner in accordance with the principles of economy, 
efficiency and effectiveness.  
As regards the internal control Framework of the EIT, The EIT has developed and overall strategy, 
including a supervisory structure, on the implementation of internal control processes that support 
the entire expenditure life cycle. Senior management ensures that this overall strategy as well as the 
Standardisation and Simplification Initiative (SSI) and its implementation are formally accepted by 
the Governing Board. 
The Standardisation and Simplification Initiative (SSI) implemented by the EIT, follows a threefold 
approach: 

– 

– 

– 

EN 

Standardised EIT planning exercise and work programme; 

Link with the Risk-Management exercise; 

Develop Standard Operating Procedures (SOP). 

28 

   EN 

 
The Standard Operating Procedures (SOP) are detailed, written instructions to achieve uniformity of 
the  performance  of  a  specific  process;  the  instructions  usually  cover  more  than  one  task  or  area 
within the EIT, Unit, Section or teams. 
In  the  framework  of  the  simplification  with  a  focus  on  performance,  and  in  order  to  increase  the 
efficiency,  regularity  and  reduce  any  possible  error  rate  of  the  activities  implemented  by  the  EIT 
related with the KICs activities, the use of grants in the form of lump sums, flat rates and scales of 
unit  costs  will  be  proposed  in  line  with  the  profile  of  the  activities  implemented  by  the  KICs,  as 
proposed in the Regulation XXX of the European Parliament and of the Council on Horizon 2020 
of XXX . As regards audit certificates on the financial statements to be provided by the KICs and 
the different partners, by which independent auditors to certify the legality and conformity of the 
amounts declared in the financial reports, the threshold for such certificates will be established at 
the  level  defined  under  Article  28  of  the  Regulation  laying  down  the  rules  for  participation  and 
dissemination  under  Horizon  2020.  All  other  provisions  defined  on  this  regulation  will  be  also 
applied as regards the certificates on the methodology and the certifying auditors. 

2.3.  Measures to prevent fraud and irregularities 

2.3.1 

Specify existing or envisaged prevention and protection measures. 

As  described  under  Article  24  of  the  Regulation  XXX  of  the  European  Parliament  and  of  the 
Council  on  Horizon  2020  of  XXX,  the  EIT  shall  take  appropriate  measures  ensuring  that  the 
financial interest of the union are protected. The proposals for Horizon 2020 have been subject to 
fraud  proofing  and  an  assessment  of  their  impact.  Overall  the  measures  proposed  should  have  a 
positive impact of the fight against fraud, especially the greater emphasis on risk based audit and 
reinforce evaluation and control. 
The EIT is determined to fight against fraud at all stages of the grant management process and other 
activities  implemented.  All  decisions  adopted  and  contracts  concluded  by  the  EIT,  provide 
explicitly that the European Antifraud Office (OLAF) and the Court of Auditors may carry out on-
the-spot  inspections  of  the  documents  of  all  contractors  and  sub-contractors  which  have  received 
Union funds, including at the premises of the final beneficiaries, in accordance with the procedures 
laid down in Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on 
the spot check and inspections13. 
OLAF is entitled to carry out internal investigation in the EIT, and the Governing Board has signed 
an  agreement  on  acceding  to  the  inter-institutional  Agreement  of  25  May  1999  between  "the 
European Parliament, the Council and the Commission" concerning investigations by OLAF14. 
The EIT also has taken a decision concerning the terms and conditions for internal investigations in 
relation  to  the  prevention  of  fraud,  corruption  and  any  illegal  activity  detrimental  to  the  Union's 
interests. 

13 
14 

OJ L 292, 15.11.1996, p. 2 
Decision of the Governing Board of the EIT of 20 February 2009. 

EN 

29 

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

3.1. 

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

Heading  of 
multiannual 
financial 
framework 

1 

1 

Heading  of 
multiannual 
financial 
framework 

•  Existing expenditure budget lines 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Number 15.02.11 

European  Institute  of  Innovation  and 
Technology (EIT) 

Type 
expenditure 

of 

Contribution 

DA/NDA 
(15) 

from 
EFTA16 
countries 

from 
candidate 
countries17 

from third 
countries 

within 
the 
meaning  of 
Article 
18(1)(aa) 
of 
Financial 
Regulation 

the 

15  02  11  01  “Governing  Structure” 
2008/2013 

DNA 

YES 

NO 

NO 

NO 

15  02  11  02 
and 
Innovation  Communities  (KICs)  and 
other operational activities" 2008/2013 

“Knowledge 

DA 

YES 

NO 

NO 

NO 

•  New budget lines requested 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type 
expenditure 

of 

Contribution 

DA/NDA 
(18) 

from 
EFTA19 
countries 

from 
candidate 
countries20 

from third 
countries 

within 
the 
meaning  of 
Article 
18(1)(aa) 
of 
Financial 
Regulation 

the 

15  07  03  01  “Governing  Structure” 
2014/2020 

DNA 

YES 

NO 

NO 

NO 

15  07  03  02 
and 
Innovation  Communities  (KICs)  and 
other operational activities" 2014/2020 

“Knowledge 

DA 

YES 

NO 

NO 

NO 

15 
16 
17 
18 
19 
20 

DA= Differentiated appropriations / DNA= Non-Differentiated Appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 
DA= Differentiated appropriations / DNA= Non-Differentiated Appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

EN 

30 

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3.2. 

Estimated impact on expenditure 

3.2.1. 

Summary of estimated impact on expenditure 

Heading 
framework: 

of  multiannual 

financial 

Number 

1 – Administrative and Operational Expenditure EIT 

EUR million (to 3 decimal places) in current prices 

The EIT 

Title  1  -  15  07  03  01 
“Governing 
Structure” 
2014/2020 

Title  2  -  15  07  03  01 
“Governing 
Structure” 
2014/2020 

Title  3  -  15  07  03  02 
“Knowledge 
and 
Innovation  Communities 
(KICs) 
other 
and 
activities" 
operational 
2014/2020 

TOTAL appropriations 
for the EIT 

Payments 

(2a) 

Commitments 

(1b) 

Payments 

(2b) 

Commitments 

(1c) 

Payments 

(2c) 

Commitments 

=1a+1
b+1c 

Payments 

=2a+2
b+2c 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

Year 
2021 

Year 
2022 

TOTAL 

2014-2022 

Commitments 

(1a) 

5,837 

6,386 

7,949 

8,108 

8,730 

8,905 

9,083 

5,837 
1,592 

6,386 
1,732 

7,949 
1,987 

8,108 
2,027 

8,730 
2,183 

8,905 
2,226 

9,083 
2,271 

1,592 

2,271 
267,498  324,047  389,375  472,279  497,460  554,832  599,777 

1,732 

1,987 

2,027 

2,183 

2,226 

54,998 

54,998 
14,017 

14,017 
3105,268 

232,723  281,921  338,756  410,883  432,790  482,704  521,806  299,888 

103,796 

3105,267 

274,926  332,165  399,312  482,414  508,373  565,963  611,130 

3174,283 

240,151  290,039  348,693  421,018  443,703  493,835  533,159  299,888 

103,796 

3174,283 

EN 

31 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading 
framework: 

of  multiannual 

financial 

1 

" Administrative expenditure DG EAC"  

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

2014-2020 

EUR million (to 3 decimal places) in current prices 

DG: EAC 

(cid:121) Human resources – Establisment Plan - 15.01.05.01 

0,472 

0,481 

0,491 

0,501 

0,511 

0,521 

0,531 

(cid:121) Human resources – Establisment Plan - 15.01.05.02 

0,145 

0,148 

0,151 

0,154 

0,157 

0,161 

0,164 

(cid:121) Other administrative expenditure - 15.01.05.03 

0,371 

0,378 

0,551 

0,563 

0,401 

0,497 

0,597 

TOTAL DG EAC 

0,988 

1,008 

1,194 

1,217 

1,069 

1,179 

1,292 

3,507 

1,081 

3,359 

7,947 

TOTAL 
under 
of the multiannual financial framework 

appropriations 
EAC  

HEADING 1 

(Total 
= Total payments) 

commitments 

0,988 

1,008 

1,194 

1,217 

1,069 

1,179 

1,292 

7,947 

EUR million (to 3 decimal places) in current prices 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018* 

Year 
2019* 

Year 
2020* 

Year 
2021 

Year 
2022 

TOTAL 

2014-2022 

appropriations  
TOTAL 
under 
1  
of  the  multiannual  financial 
framework 

HEADINGS 

Commitments 

275,914 

333,173 

400,505 

483,632 

509,442 

567,142 

612,422 

3182,230 

Payments 

241,139 

291,047 

349,887 

422,236 

444,772 

495,014 

534,451 

299,888 

103,796 

3182,230 

* An additional amount of EUR 1689,006 million shall be made available for the years 2018-2020 pro-rata from the budgets of the Societal challenges 
and  Leadership  in  enabling  and  industrial  technologies,  on  an  indicative  basis  and  subject  to  the  review  set  out  in  Article  26(1)  of  Regulation 
XX/XXX of Horizon 2020. 

EN 

32 

EN 

 
  
 
 
 
 
  
  
 
 
 
 
 
3.2.2.  Estimated impact on operational appropriations 

–  (cid:133)  The proposal/initiative does not require the use of operational appropriations 
–  X  The proposal/initiative requires the use of operational appropriations, as explained below: 

Commitment appropriations in EUR million (to 3 decimal places) in current prices 

Indicate 
objectives and 
outputs  

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 
2014 - 2020 

OUTPUTS 

(cid:216) 

Type 
of 
output
21 

Avera
ge 
cost  
of the 
output 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

r
C
e
b
o
m
u
st  N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

Total 
number 
of 
outputs 

Total  
cost 

SPECIFIC OBJECTIVE No 122 Consolidation and fostering growth and impact of existing KICs 

- Output 

KICs 

Sub-total for specific objective N°1 

3 

3 

256.89 

256.89 

3 

3 

281.83 

281.83 

3 

3 

284.49 

284.49 

3 

3 

313.77 

313.77 

SPECIFIC OBJECTIVE No 2 – Gradual development towards new KICs 

- Output 

- Output 

KICs 

KICs 

3 

25.98 

3 

82.81 

3 

135.98 

Sub-total for specific objective N°2 

3 

25.98 

3 

82.81 

3 

135.98

3 

3 

3 

3 

6 

214.31 

214.31 

232.61 

27.57 

260.18 

3 

3 

3 

3 

6 

183.36 

183.36 

260.17 

87.87 

348.04 

3 

3 

3 

3 

6 

SPECIFIC OBJECTIVE No 3 - Enhancing EITs impact via knowledge sharing, dissemination, outreach and international exposure  

- Output 

Sub-total for specific objective N°3 

10.61 

10.61 

16.24 

16.24 

22.08 

22.08 

22.52 

22.52 

22.97 

22.97 

23.43 

23.43 

156.70 

156.70 

274.87 

144.31 

419.17 

23.90 

23.90 

21 

21 

18 

9 

27 

1 691,346 

1 691,346 

1 012,410 

259,750 

1 272,160 

141.762 

141.762 

21 
22 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.4.2. "Specific objective(s)…" 

EN 

33 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
TOTAL COST 

267,50 

324,05 

389,38 

472,28 

497,46
5 

554,83 

599,78 

3 105,268 

EN 

34 

EN 

 
  
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on appropriations of on EIT human resources 

3.2.3.1.  Summary 

–  (cid:133)  The  proposal/initiative  does  not 

require 

the  use  of  administrative 

appropriations 

–  X  The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below: 

EUR million (to 3 decimal places) in current prices 

Officials 
Grades)  
(AD 
EAC Budget Line: 15 01 05 01 

Officials 
(AST 
grades)EAC  Budget  Line: 
15 01 05 01 
agent 
Contractual 
EAC  Budget  Line:  15  01 
05 02 

Contractual 
agent 
EIT Budget Line: 15 07 03 
01 
Temporary agents 
EAC Budget Line: 15 01 05 
01 
Seconded National Experts 
EAC Budget Line: 15 01 05 
02 
Seconded National Experts 
EIT  Budget  Line:  15 07 03 
01 

Contribution 
Agreement23 

Host 

TOTAL 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 
2014-2020 

0,472 

0,481 

0,491 

0,501 

0,511 

0,521 

0,531 

3,507 

0 

0 

0 

0 

0 

0 

0 

0 

0,068 

0,069 

0,071 

0,072 

0,074 

0,075 

0,076 

0,505 

1,358 

1,386 

1,413 

1,441 

1,470 

1,500 

1,530 

10,098 

5,121 

5,224 

5,469 

5,864 

6,419 

6,547 

6,678 

41,322 

0,077 

0,079 

0,081 

0,082 

0,084 

0,086 

0,087 

0,576 

0,387 

0,395 

0,484 

0,493 

0,503 

0,513 

0,523 

3,299 

-1,560 

-1,560 

0 

0 

0 

0 

0 

-3,120 

5,924 

6,074 

8,007 

8,454 

9,060 

9,241 

9,426 

56,187 

23 

The Host Agreement foresee that the Hungarian Government covers the wage costs of 20 Contractual 
Agents  employees  during  5  years  (2011-2015)  corresponding  to  a  cash  contribution  of  1,560  million 
Euro by year. 

EN 

35 

   EN 

 
 
                                                 
3.2.3.2.  Estimated requirements of human resources  

–  (cid:133)  The proposal/initiative does not require the use of human resources 

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

–  a) Human resources EIT and DG EAC  

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year
2014 

Year
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

(cid:121) Establishment plan posts (officials and temporary agents) 

XX 07 03 01 (Headquarters and Commission’s 
Representation Offices) 

15 07 03 01 (Delegations) EIT 

63 

63 

65 

67 

70 

70 

15 01 05 01 (Indirect research) 

3,5 

3,5 

3,5 

3,5 

3,5 

3,5 

70 

3,5 

10 01 05 01 (Direct research) 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)24 

15  07  03  01  (CA,  INT,  SNE  from  the  "global 
envelope") 

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

XX 01 04 yy 25 

- at Headquarters26 

- in delegations 

15 01 05 02 (CA, INT, SNE - Indirect research) 

2 

2 

2 

2 

2 

2 

2 

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

Other budget lines (specify) 

TOTAL 

68,5  68,5 

70,5  72,5  75,5 

75,5 

75,5 

The  human  resources  required  will  be  met  by  staff  from  the  DG  EAC  who  are  already  assigned  to 
management  of  the  action  and/or  have  been  redeployed  within  the  DG,  together  if  necessary  with  any 
additional  allocation  which  may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure 
and in the light of budgetary constraints. 

24 

25 
26 

CA=  Contract  Agent;  INT=  agency  staff  ("Intérimaire");  JED=  "Jeune  Expert  en  Délégation"  (Young  Experts  in 
Delegations); LA= Local Agent; SNE= Seconded National Expert;  
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially  for  Structural  Funds,  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and  European 
Fisheries Fund (EFF). 

EN 

36 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Description of tasks to be carried out: 

Officials  and  temporary  agents  DG 
EAC 

External personnel DG EAC 

- Tasks related to the adoption process of the EIT Budget, in particular: draft budget, 
transfers; 
- Preparation of the Commission opinion on the EIT Triennial Work Programme; 
- Preparation of the position of the Commission observer at the EIT Governing Board 
meetings; 
-  Preparation  of  the  Commission  decision  on  appointing  the  members  of  the  EIT 
Governing Board; 
- Coordination and alignment with other EU initiatives, in particular Horizon 2020; 
- Preparation of the Commission position at the EIT Stakeholders Platform; 
-  Organisation  of  the  annual  meetings  between  the  EIT-KICs  and  Commission 
services; 
- Preparation of calls for new KICs; 
- Monitoring and evaluation of the EIT; 
- Assurance of compliance of the EIT labelled degrees with actions undertaken in the 
context of Higher Education Area. 
-  Contribution  to  the  preparation  of  the  Commission  opinion  on  the  EIT  Triennial 
Work Programme; 
- Contribution to the coordination and alignment with other EU initiatives, in particular 
Horizon 2020; 
- Contribution of the Commission position at the EIT Stakeholders Platform; 
- Contribution to the organisation of the annual meetings between the EIT-KICs and 
Commission services; 
- Contribution to the preparation of calls for new KICs; 
- Contribution to the assurance of compliance of the EIT labelled degrees with actions 
undertaken in the context of Higher Education Area. 

–  B) Human resources of EIT 

Establishment plan posts EIT 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Temporary staff 

TOTAL establishment 
 plan posts 
Other staff (in FTE) 

Contract agents (CA) 

Seconded National  
Experts (SNE) 

Total other staff 

TOTAL EIT 
STAFF 

AD  27 
AST  11 

38 

20 

5 

27 
11 

38 

20 

5 

28 
11 

39 

20 

6 

29 
12 

41 

20 

6 

32 
12 

44 

20 

6 

32 
12 

44 

20 

6 

32 
12 

44 

20 

6 

63 

63 

65 

67 

70 

70 

70 

Description of tasks to be carried out: 

Temporary Agents  
EIT 

- Tasks process of the EIT Budget and with the Simplification Agenda; 
- Preparation of the new waves of designation and selection of KICs; 
- Coordination and alignment with other EU initiatives, in particular Horizon 2020; 
- EIT Stakeholders Platform; 
- Organisation of meetings and Hearings between the EIT and KICs; 
- Consolidation of existing KICs; 

EN 

37 

   EN 

 
  
  
 
  
  
  
  
  
  
  
  
  
  
  
External personnel 
EIT 

- Monitoring and evaluation of the EIT; 
- EITs impact via knowledge sharing, dissemination, outreach and international exposure. 
- Contribution to the preparation of the new waves of designation and selection of new 
KICs; 
- Contribution to the Entrepreneurial and Education agenda of the EIT; 
- Contribution to the EIT Stakeholders Platform; 
- Contribution to the assurance of compliance of the EIT labelled degrees with actions 
undertaken in the context of Higher Education Area. 

In  the  light  of  the  Establishment  Plan  regarding  the  current  Multiannual  Financial  Framework,  for  the 
EIT,  as  newly  created  agency,  it  was  foreseen  a  total  staff  of  61  TFEs  covering  the  period  until  2013 
(corresponding to 37 AT + 20 CA + 4 SNE). In this context, DG EAC as parent DG, will closely follow-
up the implementation by the EIT of the current Establishment Plan. 

On  the  other  hand,  during  the  annual  preparation  of  the  Budget,  the  parent  DG  will  request  to  the 
Budgetary Authority only the necessary staff in order to achieve the EIT objectives.  

It is also important to underline and recognize the significant increase in workload and competences for 
the EIT in the context of the revision of the actual EIT Regulation and the SIA, as well as the importance 
of the new budget that the EIT will implement.  

3.2.4.  Compatibility with the current multiannual financial framework 

–  X  Proposal/initiative is compatible the current multiannual financial framework. 

–  (cid:133)  Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the  multiannual 

financial framework. 

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

–  (cid:133)  Proposal/initiative  requires  application  of  the  flexibility  instrument  or  revision  of  the 

multiannual financial framework27. 

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

3.2.5.  Third-party contributions 

–  The proposal/initiative does not provide for co-financing by third parties 

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

Appropriations in EUR million (to 3 decimal places) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

Total 

Host  Agreement  with  the 
Hungarian Government* 

1.560 

1.560 

0 

0 

0 

0 

0 

3.120 

27 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

38 

   EN 

 
 
                                                 
TOTAL 
funded 

appropriations 

1.560 

1.560 

0 

0 

0 

0 

0 

3.120 

* The Host Agreement foresee that the Hungarian Government covers the rental fee of the EIT premises 
during  20  years  (2011-2030)  and  the  wage  costs  of  20  employees  during  5  years  (2011-2015) 
corresponding to a cash contribution of 1,560 million Euro by year. 

EN 

39 

   EN 

 
 
 
3.3. 

Estimated impact on revenue 

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

–  (cid:133)  Proposal/initiative has the following financial impact: 

– 

– 

(cid:133) 

(cid:133) 

on own resources 

on miscellaneous revenue 

EUR million (to 3 decimal places) 

Appropriations 
available for the 
ongoing  budget 
year 

Budget revenue line: 

Article …………. 

Impact of the proposal/initiative28 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

…  insert  as  many  columns  as  necessary 
in  order  to  reflect  the  duration  of  the 
impact (see point 1.6) 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

Specify the method for calculating the impact on revenue. 

28 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. 
gross amounts after deduction of 25% for collection costs. 

EN 

40 

   EN