Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the participation of the Union in a Research and Development Programme jointly undertaken by several Member States aimed at supporting research performing small and medium-sized enterprises
Date: 2013-07-10
Institutions: European Commission
Subjects: EU programme, European cooperation, competitiveness, research and development, small and medium-sized enterprises

EUROPEAN 
COMMISSION 

Brussels, 10.7.2013  
COM(2013) 493 final 

2013/0232 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the participation of the Union in a Research and Development Programme jointly 
undertaken by several Member States aimed at supporting research performing small 
and medium-sized enterprises  

(Text with EEA relevance) 

{SWD(2013) 242 final} 
{SWD(2013) 243 final} 

EN 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

1.1. 

Objectives of the proposal 

This proposal concerns the participation of the European Union, on the basis of Article 185 of 
the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU),  in  the  Eurostars-2  Joint 
Programme  (Eurostars-2)  undertaken  by  several  Member  States  as  a  follow-up  to  the 
Eurostars Joint Programme. 

The overall objectives of the Eurostars-2 are: 

(cid:121) 

(cid:121) 

to promote market-oriented transnational research activities in any fields of research-
performing  small  and  medium-sized enterprises (SMEs)1,2, especially those without 
previous  experience  in  transnational  research,  leading  to  the  placing  of  new  or 
improved products, processes and services on the market; 

to contribute to the completion of the European Research Area (ERA) and to increase 
the  accessibility,  efficiency  and  efficacy  of  public  funding  for  research-performing 
SMEs  in  Europe  by  aligning,  harmonising  and  synchronising  the  national  funding 
mechanisms. 

The  competitiveness  of  research-performing  SMEs  will  be  enhanced  and  will  therefore 
actively contribute to European economic growth and job creation to achieve the Europe 2020 
objectives. 

1.2. 

Grounds for the proposal 

SMEs make up the backbone of the European economy and have the potential to contribute 
significantly to creating more growth and jobs in the European Union. Across the EU, there 
are  around  20.7  million  SMEs  representing  more  than  98 %  of  all  businesses  in  the  EU, 
accounting for approximately 58 % of the EU’s GVA3,4 and employing more than 87 million 
people (67 % of total employment, and in some key industries as much as 80 % of all jobs). 

Amongst those SMEs, innovative research-performing SMEs form a very dynamic sub-group 
which  can  greatly  contribute  to  growth  and  jobs,  even  more  so  if  they  are  engaged  in 
transnational R&D collaboration. However, a number of market failures prevent SMEs from 
easily  accessing  the  necessary  private  funding  for  their  R&D;  existing  national  R&D 
programmes  very  seldom  accommodate  transnational  collaborations  and  are  not  sufficiently 
synchronised and interoperable. In addition, while a number of complementary EU initiatives 
address innovative SMEs (e.g. the financial instruments such as the Risk Sharing Instrument 

1 

2 

3 

4 

6 

of 

 50 
An  SME  is  a  firm  that  has  fewer  than  250  employees,  generates  annual  turnover  of  less  than  €
million  and  is  independent  of  larger  enterprises,  according  to  Commission  Recommendation 
2003/361/EC 
http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2003:124:0036:0041:en:PDF. 
A research-performing SME is an SME which reinvests at least 10 % of its turnover or devotes at least 
10 % of its full-time equivalents (FTEs) to research and development activities. 
Gross  Value  Added  (GVA)  includes  depreciation  and  rewards  to  labour,  capital  and  entrepreneurial 
risk. GVA is what remains when intermediate costs are deducted from sales or turnover. 
SME performance review 2012 Report, October 2012, http://ec.europa.eu/enterprise/policies/sme/facts-
figures-analysis/performance-review/files/supporting-documents/2012/annual-report_en.pdf. 

2003. 

May 

See 

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2 

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or the newly conceived SME instrument), a programme specifically dedicated to transnational 
R&D performed by research intensive SMEs does not exist at EU level. 
In 2008, 325 European countries that were members of the Eureka network6 decided to adopt 
a coherent approach at European level in the field of research-performing SMEs by setting up 
the Eurostars Joint Programme. The objective of Eurostars is to support research-performing 
SMEs by co-financing their market-oriented transnational research in a bottom-up manner and 
by providing them with a legal and organisational framework. 
Under the Decision7 of 9 July 2008 of the European Parliament and the Council, the European 
Union participates financially in Eurostars by way of Article 185 TFEU (ex-Article 169 EC) 
with  a  contribution  of  up  to  one  third  of  the  effective  contributions  of  the  participating 
Member States and the other participating countries, within a ceiling of €
 100 million, for the 
through  a  dedicated 
period  2008-2013.  The  Eurostars  Programme 
implementation  structure,  the  Eureka  Secretariat  (‘the  ESE’),  which  is  responsible  for  the 
execution of the programme, in particular organisation of the calls for proposals, verification 
of  the  eligibility  criteria,  peer-review  evaluation  and  selection  of  projects,  monitoring  of 
projects and allocation of the Union contribution. 
An  interim  evaluation  of  Eurostars8  was  conducted  in  2010  by  a  Group  of  Independent 
Experts9,  to  which  the  Commission  replied  with  an  Interim  Evaluation  Report10,  adopted  in 
April 2011. The Competitiveness Council, in its conclusions of 31 May 201111 on the above-
mentioned documents, welcomed the view of the Group that Eurostars is well aligned with the 
objectives of  Europe 2020, complements well the opportunities offered to SMEs  in  FP7 for 
international  cooperation  and  has  proven  attractive  to  the  target  group  by  successfully 
the  Group’s 
reaching  European 
recommendation  that  Eurostars  be  continued  beyond  2013  and  committed  to  consider  its 
continuation in the overall context of the future Common Strategic Framework for Research 
and Innovation Funding. 

research-performing  SMEs. 

It  also  welcomed 

implemented 

is 

5 

6 

7 

8 

9 

10 

11 

Eurostars  initially  included  26  EU  Member  States  and  five  countries  associated  with  the  Seventh 
Framework  Programme.  With  Malta  joining  Eurostars  in  October  2010,  all  EU  Member  States  take 
part.  The  associated  countries  are  currently  six:  Croatia,  Iceland,  Israel,  Norway,  Switzerland  and 
Turkey. 
Eureka  is  a  European  intergovernmental  network,  established  by  a  Conference  of  Ministers  of  17 
countries  and  Member  States  of  the  European  Communities  in  1985,  with  the  aim  of  supporting 
industrial  research  collaboration.  It  currently  has  40  member  countries  and  supports  also  individual 
projects, clusters and an umbrella programme besides Eurostars. 
Decision  No  743/2008/EC  of  the  European  Parliament  and  of  the  Council  of  9  July  2008  on  the 
Community’s participation in a research and development programme undertaken by several Member 
States aimed at supporting research and development performing small and medium-sized enterprises. 
OJ 
http://eur-
30.7.2008, 
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:201:0058:0067:EN:PDF. 
Full 
base/other_fp7_panel_evaluations/eurostars_programme_interim_evaluation.pdf. 
The  Group  of  Independent  Experts  was  chaired  by  Ms  Laperrouze,  former  Member  of  the  European 
Parliament and Vice-President of Parliament’s Committee on Industry, Research and Energy (ITRE). 
Report  from  the  Commission  to  the  European  Parliament  and  the  Council,  Interim  Evaluation  of  the 
Eurostars 
See 
http://ec.europa.eu/research/evaluations/pdf/archive/other_reports_studies_and_documents/communicat
ion_eurostars.pdf. 
See http://register.consilium.europa.eu/pdf/en/11/st11/st11030.en11.pdf. 

http://ec.europa.eu/research/evaluations/pdf/archive/fp7-evidence-

COM(2011) 

Programme, 

8  April 

Brussels, 

report: 

2011, 

Joint 

186. 

201, 

See 

58. 

p. 

L 

EN 

3 

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The Council also highlighted a number of recommendations for improving the programme in 
the  future,  including  the  need  for  participating  countries  and  the  EU  to  provide  sufficient 
funds to finance a maximum of top-ranking projects meeting the Eurostars threshold criteria; 
the need to further streamline and harmonise the implementation processes and funding rules 
at  national  level  to  improve  the  effectiveness  and  efficiency  of  Eurostars;  and  the  need  to 
continuously  improve  the  quality  of  evaluations  and  to  keep  a  short  time  to  contract  as  a 
priority. 

On 22 June 2012, the Eureka Ministerial Conference in Budapest endorsed a document (‘the 
Budapest document’) stating the interest of the Eureka countries in supporting the follow-up 
to  the  Eurostars  Programme.  The  Budapest  document  sets  out  a  common  vision  for  a 
Eurostars-2 and the basis for addressing the above-mentioned recommendations of the interim 
evaluation. In January 2013, the informal financial commitment indicated by the majority of 
the  Eurostars  countries  for  the  period  2014-2020  amounted  to  almost  three  times  the 
countries’ commitments for Eurostars. The Budapest document invites the EU to participate 
in Eurostars-2. 
The  Commission  proposal  for  Horizon  202012  includes  a  dedicated  activity  for  research-
intensive SMEs in ‘Innovation in SMEs’, which will support the next stage in the Eurostars 
scheme implemented in partnership with Member States and reoriented along the lines stated 
in  its  interim  evaluation.  This  is  the  only  programme  under  Horizon  2020  specifically 
dedicated to research-performing SMEs, open in any field of research and development, and 
having  an  additional  impact  on  furthering  integration  of  national  research  programmes, 
therefore  contributing  to  the  completion  of  the  ERA.  With  its  bottom-up  approach  and 
business-driven agenda, Eurostars-2 is well placed under the ‘Industrial Leadership’ part and 
will strongly contribute to achieving its objectives by supporting projects of direct relevance 
to  a  number  of  leading  and  enabling  industrial  technologies  and  help  innovative  research 
intensive SMEs to grow into world-leading companies. 

2. 

RESULTS  OF  CONSULTATIONS  WITH  INTERESTED  PARTIES  AND 
IMPACT ASSESSMENTS 

2.1. 

Consultation on the future on the Eurostars Joint Programme 

An  extensive  number  of  consultations  have  been  performed  during  the  last  three  years  on 
Eurostars  and  its  future  development.  They  have  covered  all  internal  and  external 
stakeholders.  Comments  have  been  received  among  other  things  on  the  identification  of  the 
main problems and barriers, on issues linked to subsidiarity and on possible future options and 
their impacts. 

An  open  public  consultation  on  the  SME  support  measures  and  on  the  use  of  Article  185 
TFEU  took  place  as  part  of  the  public  consultation  on  the  ‘Green  Paper  on  a  Common 
Strategic  Framework  for  EU  Research  and  Innovation  Funding’,  European  Commission, 
February–May 2011. Eurostars was addressed or mentioned in 70 of the 849 position papers 
responding to the Green Paper. The views were positive for more than 80 % of the responding 
organisations.  The  few  critical  comments  (10 %)  mainly  had  to  do  with  synchronisation 
issues. Other remarks focused on the fact that Member States’ commitments were not always 
honoured, on the harmonisation of funding rules, on the budget level and the time to contract. 

12 

COM(2011) 811 final. 

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The Green Paper open consultation was followed up by two open Workshops on ‘Innovation 
in  Small  and  Medium  Enterprises’  in  Brussels13  involving  160  participants  consisting  of 
experts in both R&I and SME matters coming from European and national SME and industry 
associations  and  representatives  of  Member  States,  governmental  bodies  and  SME  National 
Contact  Points.  The  workshop  discussions  led  to  two  main  conclusions  on  the  scope  of  a 
future Eurostars-2: firstly, Eurostars-2 should continue with the same target group (research-
performing SMEs); secondly, there was no support among the workshop participants for the 
idea  of  enlarging  the  scope  of  Eurostars  also  to  non-research-performing  SMEs  since  the 
number and size of national programmes supporting other kind of SMEs (such as research for 
the  benefit  of  SMEs)  was  not  sufficient  to  form  a  critical  mass  and  to  set  up  a  joint 
programme under Article 185 TFEU. 

Potential and actual final beneficiaries of projects funded under Eurostars (SMEs and research 
institutes) and other stakeholders were also consulted in the context of the interim evaluation 
by  the  Group  of  Independent  Experts  in  201014.  The  group  recommended  continuing  the 
programme subject to the improvements along the lines indicated in the report. 

The  Commission  discussed  continuing  to  provide  EU  support  for  Eurostars-2  in  an  Impact 
Assessment  Steering  Group  (IASG)  gathering  different  Commission  departments  in  2012. 
The  IASG  contributed  to  the  planning  and  roadmap  for  the  preparation  of  the  Impact 
Assessment  Report  accompanying  this  proposal,  with  special  reference  to  the  problem 
statement and the relevance of the Eurostars Joint Programme to other EU policies. 

2.2. 

The policy options 

The Impact Assessment Report included the following options: 

Option 1 — The business as usual (BAU) option (baseline) 

This option corresponds to the continuation of the existing Eurostars Joint Programme during 
the  next  programming  period  (2014-2020)  with  its  current  format,  implementation 
arrangements  and  overall  budget.  The  EU  participation  and  financial  contribution  would  be 
the same as for Eurostars 1 (the EU financial contribution is up to €
 100 million under FP7). 
This option is set as the baseline. 

Option 2 — The zero option (no EU involvement in Eurostars-2) 

Under  this  option  the  EU  participation  and  financial  contribution  to  Eurostars  would  be 
stopped after the end of its current funding phase (by the end of 2013). Member States would 
be  left  to  decide  whether  to  continue  Eurostars  and  to  what  extent  to  pursue  the  scientific, 
managerial and financial integration. 

Option 3 — The reinforced partnership option 

The reinforced partnership option means that the existing Eurostars Joint Programme would 
be  continued  in  the  next  programming  period  as  an  Article  185  TFEU  initiative  in  an 
improved format based on full implementation of the recommendations made in the Interim 
Evaluation Report and with an enhanced degree of integration and on an extended scale. 

13 

14 

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on 

the 

reports 

internet: 
The 
http://ec.europa.eu/research/horizon2020/pdf/workshops/innovation_in_small_and_medium_enterprises
/summary_reports_workshops_on_21_june_and_12_july_2011.pdf#view=fit&pagemode=none. 
Interviews with 37 Eurostars participants, 17 national R&D institutions in 10 countries and more than 
3 000 registrants on the Eurostars application site. 

Workshops 

published 

the 

are 

on 

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Strongly encouraged by the Commission departments, Eureka member countries have agreed 
on  specific  measures  to  be  implemented  in  Eurostars-2  which  will  lead  to  a  short  time  to 
contract,  more  standardisation  of  rules  and  processes,  lean  administration  and  higher 
synchronisation and integration of funding. In order to enhance the programme and to support 
a  greater  number  of  research-intensive  SMEs  with  growth  potential,  Member  States 
committed to substantially increasing the financial volume of the programme. This responds 
to  the  increasing  demand  from  SMEs  since  the  start  of  the  programme  and  reflects  the 
absorption  capacity  of  the  Eurostars  target  group.  Consequently  and  in  order  to  incentivise 
and support further the above-mentioned improvements, the EU financial contribution would 
be raised accordingly. 

2.3. 

Results of the ex-ante impact assessment 

The ex-ante impact assessment concluded that Option 3 is the preferred option in view of its 
effectiveness  in  achieving  the  objectives,  its  efficiency  and  its  coherence  across  all  criteria. 
This  is  fully  supported  by  the  stakeholders,  since  99 %  of  the  respondents  to  a  survey 
addressed  to  all  HLRs/NPCs  in  November  2012  (28  Eureka  HLRs  and/or  NPCs  from  22 
Eureka member countries replied) considered the option of a ‘New reinforced partnership’ as 
very  suitable  and  capable  of  bringing  more  impact  in  ‘enhancing  the  competitiveness  of 
R&D-performing SMEs’. 

In  February  2012,  the  Impact  Assessment  Board  reviewed  and  approved  the  Impact 
Assessment  Report.  In  its  Opinion  it  requested  improvements  to  the  report,  and  these  have 
been taken into account. In particular, the report now explains more clearly the policy context, 
the relations with other EU initiatives, the remaining problems and the specific measures to 
address  them  and  links  them  more  closely  to  the  options.  The  objectives  were  revised  to 
provide  a  solid  basis  for  measuring  the  progress  achieved  by  Eurostars.  Finally,  the 
comparison of options in terms of effectiveness, efficiency and coherence was improved and 
the views of stakeholders better spelled out. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Legal basis 

The proposal for Eurostars-2 is based on Article 185 of the TFEU, which states that the Union 
may make provision for the participation of the European Union in research and development 
programmes  undertaken  by  several  Member  States,  including  participation  in  the  structures 
created for the execution of those programmes. 
The  Horizon  2020  Communication15  indicates  that:  ‘partnership  approaches  on  the  basis  of 
Articles 185 and 187 of the Treaty will also be continued’. 
Article 20(2)(b) of the proposal for a Regulation establishing Horizon 202016 lists a number of 
criteria for how public-public partnerships are to be identified. Eurostars complies with those 
criteria:  the  ‘Budapest  document’  on  Eurostars-2  endorsed  by  all  Eureka  countries  provides 
(a)  a  clear  definition  of  the  objectives  to  be  pursued  in  conformity  with  the  objectives  of 
Horizon 2020 and broader Union policy objectives indicated in section 1.1, (b) the financial 
commitments  of  the  participating  countries,  (c)  the  added  value  of  action  at  Union  level  as 

15 
16 

COM(2011) 808 final of 30.11.2011. 
COM(2011) 809 final of 30.11.2011. 

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mentioned in section 3.2 and (d) the critical mass, with regard to the size and the number of 
national programmes involved. 

3.2. 

Subsidiarity and proportionality principle 

The  subsidiarity  principle  applies  as  the  proposal  does  not  fall  under  the  exclusive 
competence  of  the  European  Union.  Subsidiarity  is  safeguarded  by  basing  the  proposal  on 
Article  185  TFEU,  which  explicitly  provides  for  the  participation  of  the  Union  in  research 
programmes  undertaken  by  several  Member  States,  whereby  all  operational  aspects  are 
implemented  where  possible  at  national  level,  while  ensuring  a  coherent  approach  at  the 
European level of the joint programme. 

The objectives of the proposal cannot be sufficiently  achieved by the Member States  alone: 
the national research programmes supporting research-performing SMEs lack interoperability 
and compatibility and only very few national programme cycles are synchronised and use a 
joint international peer review. 

Eurostars-2  respects  the  proportionality  principle  as  the  Member  States  themselves  will  be 
responsible  for  implementation  and all  operational aspects.  The  role  of  the  EU  is  limited  to 
providing 
improved  coordination  of  participating  programmes  and 
harmonisation  of  rules  and  regulations,  to  the  benefit  of  SMEs  interested  in  transnational 
R&D activities, and also ensuring synergy with relevant complementary activities in Horizon 
2020. 

incentives 

for 

The  added  value  of  the  Union  action  is  significant  as  the  EU  involvement  will  enable  the 
creation  of  a  new  legal  framework  where  EU  and  national  funding  can  be  pooled  under  a 
common  strategy  to  stimulate  transnational  collaborative  R&D  projects  initiated  and  led  by 
research-performing SMEs. The pooling of resources from national programmes and from the 
EU  enables  a  critical  mass  to  be  achieved  that  can  better  address  the  challenges  faced  by 
research-performing SMEs. This would otherwise not be feasible using the existing structures 
in Horizon 2020 and within national programmes. The Union’s contribution shall be equal to 
one third of thecontributions of the participating states. 

In  particular,  the  proposed  organisational  structure  keeps  the  administrative  burden  to  a 
minimum,  by  having  the  main  administrative  work  carried  out  through  national  agencies 
under the supervision and overall responsibility of the common legal structure identified for 
this purpose. 

3.3. 

Choice of instrument 

The  proposed  instrument  is  a  Decision  by  the  European  Parliament  and  Council  based  on 
Article 185 of the TFEU. 

3.4. 

Derogations from the Horizon 2020 Rules for Participation 

The  proposal  allows  derogations  from  a  number  of  Articles,  namely  Article  14(5)  on  the 
verification of the financial capacity of applicant. Article 16(1) on grant agreements, Article 
19 (1), (5) to (7) on the implementation of the action, Articles 22 to 28 on funding rules of the 
action. Those derogations result from the breakdown of responsibilities between the ESE and 
the national funding agencies: the ESE is in charge of receiving, distributing and monitoring 
the European Union contribution channelled to the beneficiaries through the national funding 
agencies. 

The main reason for it is that SMEs, the specific target group of Eurostars-2, in certain cases 
can  feel  more  at  ease  with  the  well-known  rules  of  the  participating  national  funding 
programmes than EU rules. The administrative and legal barriers to the participation of these 
SMEs  in  transnational  research  and  innovation  activities  is  therefore  lowered  by  the 

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application of national funding rules and the provision of the Union’s financial contribution 
and the corresponding national public support through one grant agreement. 

The proposal provides appropriate safeguards to guarantee respect for the principles of equal 
treatment  and  transparency  by  the  dedicated  implementation  structure  when  providing 
financial support to third parties, and in order to protect the financial interests of the Union. It 
also  provides  for  the  inclusion  of  detailed  provisions  to  this  end  in  an  agreement  to  be 
concluded  between  the  Union  and  the  dedicated  implementation  structure,  including  strong 
pressure for the rapid progressive harmonisation and alignment of national programme rules. 

4. 

BUDGETARY IMPLICATION 

The  Legislative  Financial  Statement  presented  with  this  decision  sets  out  the  indicative 
budgetary  implications.  The  maximum  Union’s  financial  contribution,  including  EFTA 
appropriations, to Eurostars-2 shall be EUR 287 million in current prices for the duration of 
the Horizon 2020 Framework Programme. The contributions will be made from the following 
objective17 under Part II ‘Industrial Leadership’ 

(cid:121) 

‘Innovation in SMEs’  

The provisions of the Decision and of the delegation agreement to be concluded between the 
Commission  and  the  dedicated  implementation  structure  must  ensure  that  the  EU  financial 
interests are protected. 

Legislative Financial Statement presented with this Decision sets out the indicative budgetary 
implications. 

5. 

OPTIONAL ELEMENTS 

5.1. 

Simplification 

The  proposal  provides  for  the  simplification  of  administrative  procedures  for  public 
authorities (EU or national) and for private parties. 

In  particular,  recipients  of  the  research  funding  from  the  new  joint  programme  will  benefit 
from a single contracting and payment scheme using familiar national rules without any need 
for separate reporting with regard to the Union’s contribution. 

The EU will deal directly with the dedicated implementation structure of Eurostars-2, which 
will  be  in  charge  of  allocating,  monitoring  and  reporting  on  the  use  of  the  Union’s 
contribution. 

5.2. 

Review/revision/sunset clause 

The  proposal  includes  a  review  clause  for  a  mid-term  review  after  three  years.  The  overall 
duration will be limited to seven years. 

5.3. 

European Economic Area 

The  proposed  act  concerns  an  EEA  matter  and  should  therefore  extend  to  the  European 
Economic Area. 

17 

The  amount  is  indicative  and  will  depend  on  the  final  amount  for  the  DG  RTD  under  the  above 
mentioned challenge /theme. 

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2013/0232 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the participation of the Union in a Research and Development Programme jointly 
undertaken by several Member States aimed at supporting research performing small 
and medium-sized enterprises  

(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 
Articles 185 and the second paragraph of Article 188 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 
Having regard to the opinion of the European Economic and Social Committee18,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

In  its  Communication  Europe  2020  A  Strategy  for  smart,  sustainable  and  inclusive 
growth19  the  Commission  underscores  the  need  to  develop  favourable  conditions  for 
investment  in  knowledge  and  innovation  so  as  to  achieve  smart,  sustainable  and 
inclusive growth in the Union. Both European Parliament and Council have endorsed 
this strategy. 

Horizon 2020 – The Framework Programme for Research and Innovation (2014-2020) 
established  by  Regulation  (EU)  No  …/2013  of  the  European  Parliament  and  of  the 
Council  of  …  201320  (hereinafter  "Horizon  2020  Framework  Programme")  aims  at 
achieving  a  greater  impact  on  research  and  innovation  by  contributing  to  the 
strengthening  of  public-public  partnerships,  including  through  Union  participation  in 
programmes undertaken by several Member States in accordance with Article 185 of 
the Treaty. 

By Decision No 743/2008/EC of the European Parliament and of the Council of 9 July 
2008  on  the  Community’s  participation  in  a  research  and  development  programme 
undertaken by several Member States aimed at supporting research and development 
performing small and medium-sized enterprises21, the Community decided to make a 
financial  contribution  to  Eurostars,  a  Joint  Programme  undertaken  by  all  Member 

18 
19 
20 
21 

OJ C, p. .[EESC opinion] 
COM(2010)2020 final of 3 March 2010 
OJ … [H2020 FP] 
OJ L 201, 30.7.2008, p. 58.  

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9 

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five  participating  countries 

States  and 
framework  of  Eureka,  an 
intergovernmental  initiative  established  in  1985  with  the  objective  of  promoting 
cooperation in industrial research.  

the 

in 

(4) 

(5) 

(6) 

(7) 

(8) 

In  April  2012,  the  Commission  communicated  to  the  European  Parliament  and  the 
Council a report on the Interim evaluation of Eurostars Joint Programme22 carried out 
by a Group of Independent Experts two years after the beginning of the programme. 
The  overall  opinion  of  the  experts  was  that  the  Eurostars  programme  meets  its 
objectives,  adds  value  to  European  research-performing  small  and  medium-sized 
enterprises  (hereinafter  ‘SMEs’)  and  should  be  continued  after  2013.  A  number  of 
recommendations for improvement were made, mainly addressing the need of further 
integration of national programmes and improvements in the operational performance 
in order to reach shorter time to contract and more transparency in the procedures.  

The definition of SME provided for in Commission Recommendation 2003/361/EC of 
6 May 2003 concerning the definition of micro, small and medium-sized enterprises23 
should apply.  

According  to  Council  Decision  2013/…/EU  of  …  2013  establishing  the  Specific 
Programme  implementing  Horizon  2020  -  The  Framework  Programme  for  Research 
and Innovation (2014-2020)24, support may be provided to  an action building on the 
Eurostars  Joint  programme  and  reorienting  it  along  the  lines  stated  in  its  interim 
evaluation.  

The Eurostars-2 Programme (hereinafter “Eurostars-2”), aligned with the Europe 2020 
strategy,  the  related  Flagship  initiative  ‘Innovation  Union’25  and  ‘A  Reinforced 
European  Research  Area  Partnership  for  Excellence  and  Growth’26  will  aim  at 
supporting research performing SMEs by co-financing their market oriented research 
projects  in  any  field.  As  such,  and  in  combination  with  the  activities  under  the 
‘Leading and Enabling Technology’ objective set out in the Horizon 2020 Framework 
Programme,  it  will  contribute  to  the  goals  of  the  Industrial  Leadership  part  of  that 
programme  to  speed-up  development  of  the  technologies  and  innovations  that  will 
underpin  tomorrow’s  businesses  and  help  innovative  European  SMEs  to  grow  into 
world-leading  companies.  As  part  of  the  improvements  from  the  previous  Eurostars 
programme,  Eurostars-2  should  head  towards  shorter  time  to  grant,  stronger 
integration  and  lean,  transparent  and  more  efficient  administration  to  the  ultimate 
benefit of research performing SMEs.  

The Eureka Ministerial Conference on 22 June 2012 in Budapest endorsed a strategic 
vision for Eurostars-2 (hereafter “Budapest Document”). The ministers committed to 
support the continuation of the Eurostars Joint programme after its termination in 2013 
for the period covered by the Horizon 2020 Framework Programme. This will consist 
of a reinforced partnership addressing the recommendations of the interim evaluation 
of  the  Eurostars  Joint  Programme.  The  Budapest  Document  sets  out  two  main 
objectives  for  Eurostars-2.  Firstly,  a  structural-oriented  objective  to  deepen  the 

22 
23 
24 
25 
26 

COM(2011) 186 of 8 April 2011.  
OJ L 124, 20.5.2003, p. 36. 
OJ … [H2020 SP] 
COM(2010) 546 final of 6 October 2010. 
COM(2012) 392 final of 17 July 2012.  

EN 

10 

   EN 

                                                 
synchronisation  and  alignment  of  the  national  research  programmes  in  the  field  of 
funding, which is a central element towards the realisation of the European Research 
Area  by  the  member  countries.  Secondly  a  content-related  objective  to  support 
research performing SMEs engaging in transnational research and innovation projects. 
The Budapest Document invites the Union to participate in the programme. 

(9) 

The  participating  states  intend  to  contribute  to  the  implementation  of  Eurostars-2 
during the period covered by Eurostars-2 (2014-2024). 

(10)  A  ceiling  should  be  established  for  the  Union’s  financial  contribution  to  Eurostars-2 
for the duration of the Horizon 2020 Framework Programme. Within that ceiling, the 
Union’s  contribution  should  be  equal  to  one  third  of  the  contribution  of  the 
participating states in order to ensure a critical mass necessary to satisfy the demand 
from projects deserving financial support, to achieve a high leverage effect and ensure 
stronger integration of national research programmes of the participating states.  

(11) 

In line with the objectives of the Horizon2020 Framework Programme, any Member 
State and any country associated to the Horizon 2020 Framework Programme should 
be entitled to participate in Eurostars-2. 

(12)  The Union’s financial contribution should be subject to formal commitments from the 
participating  states  to  contribute  to  the  implementation  of  Eurostars-2  and  to  the 
fulfilment  of  those  commitments. Financial support under Eurostars-2 should mainly 
take  the  form  of  grants  to  projects  selected  following  calls  for  proposals  launched 
under the Eurostars-2. In order to meet the objectives of Eurostars-2, the participating 
states  shall  ensure  sufficient  financial  contribution  to  fund  a  reasonable  number  of 
proposals selected through each call. 

(13)  The  joint  implementation  of  Eurostars-2  requires  an  implementation  structure.  The 
participating  states  have  agreed  on  designating  the  Eureka  Secretariat  (hereinafter 
“ESE”)  as  the  implementation  structure  for  Eurostars-2.  ESE  is  a  non-profit 
international  association  under  Belgian  law  and,  since  2008,  is  responsible  for  the 
implementation of Eurostars. ESE’s role goes beyond the implementation of Eurostars, 
being at the same time the secretariat of the Eureka initiative, with its own governance 
linked  to  the  managing  of  Eureka  projects  outside  of  Eurostars.  The  Union, 
represented by the Commission, is a founding member of the Eureka initiative and full 
member of the Eureka Secretariat association.  

(14) 

In  order  to  achieve  the  objectives  of  Eurostars-2,  ESE  should  be  in  charge  of  the 
organisation  of  the  calls  for  proposals,  the  verification  of  the  eligibility  criteria,  the 
peer-review evaluation and the selection and the monitoring of projects as well as the 
allocation of the Union contribution. The evaluation of proposals should be performed 
centrally  by  independent  external  experts  under  the  responsibility  of  ESE  following 
calls  for  proposals.  The  projects’  ranking  list  should  be  binding  for  the  participating 
states as regards the allocation of funding from the Union's financial contribution and 
from contribution from participating states. 

(15)  Overall the programme should demonstrate a clear progress towards further alignment 
and  synchronisation  of  the  national  research  and  innovation  programmes  as  a  truly 
financial 
Joint  Programme 
synchronisation.  Stronger  scientific  integration  should  be  achieved  through  the 
common definition and implementation of activities and should ensure the excellence 
and  the  high  impact  of  the  projects  selected.  Management  integration  should  ensure 
further improvement of operational excellence and accountability for the programme. 

scientific,  management  and 

featuring 

stronger 

EN 

11 

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Stronger financial integration should be based on overall and yearly adequate financial 
contribution  by  the  Eurostars-2  Participating  States  and  a  high  degree  of  national 
synchronisation.  This  should  be  achieved  through  a  progressive  harmonisation  of 
national funding rules.  

(16)  The Union's financial contribution should be managed in accordance with the principle 
of sound financial management and with the rules on indirect management set out in 
Regulation  (EU,  Euratom)  No  966/2012  of  25  October  2012  of  the  European 
Parliament and of the Council on the financial rules applicable to the general budget of 
the Union27 and Commission Delegated Regulation (EU) No 1268/2012 of 29 October 
2012 on the rules of application of Regulation (EU, Euratom) No 966/201228.  

(17) 

In  order  to  protect  the  Union's  financial  interests,  the  Commission  should  have  the 
right to reduce, suspend or terminate the Union's financial contribution if Eurostars-2 
is  implemented  inadequately,  partially  or  late,  or  if  the  participating  states  do  not 
contribute, or contribute partially or late, to the financing of Eurostars-2. Those rights 
should be provided for in the delegation agreement to be concluded between the Union 
and the ESE.  

(18)  Participation  in  indirect  actions  funded  by  Eurostars-2  is  subject  to  Regulation  (EU) 
No …/2013 of the European Parliament and of the Council of …2013 laying down the 
rules  for  the  participation  and  dissemination  in  'Horizon  2020  –  the  Framework 
Programme  for  Research  and  Innovation  (2014-2020)29.  However,  due  to  specific 
operating  needs  of  Eurostars-2  it  is  necessary  to  provide  for  derogations  from  that 
Regulation  in  accordance  with  Article  1(3)  of  that  Regulation  [Rules  for  the 
participation and dissemination in Horizon 2020]. 

(19) 

In  order  to  facilitate  the  participation  of  SMEs  which  are  more  used  to  national 
channels  and  which  would  otherwise  carry  out  research  activities  only  within  their 
national  boundaries,  the  Eurostars-2  financial  contribution  should  be  provided  in 
accordance with the well-known rules of their national programmes and implemented 
through  a  funding  agreement  directly  administered  by  the  national  authorities, 
combining Union funding with the corresponding national funding. Derogation should 
therefore  be  made  from  Article  14(5),  Articles  16(1),  19[(1),  (5)  to  (7)],  22  to  28  of 
Regulation  (EU)  No  …  [Rules  for  the  participation  and  dissemination  in  Horizon 
2020]. 

(20)  Audits of recipients of Union funds provided under Eurostars-2 should be carried out 
in  accordance  with  Regulation  (EU)  No  …/2013  of  the  European  Parliament  and  of 
the Council of … 2013 [the Horizon 2020 Framework Programme].  

(21)  The  Union's  financial  interests  should  be  protected  through  proportionate  measures 
throughout the expenditure cycle, including the prevention, detection and investigation 
of  irregularities,  the  recovery  of  funds  lost,  wrongly  paid  or  incorrectly  used  and, 
where  appropriate,  administrative  and  financial  penalties  in  accordance  with 
Regulation (EU, Euratom) No 966/2012. 

27 
28 
29 

OJ L 298, 26.10.2012, p.1 
OJ L362, 31.12.2012, p.1. 
OJ … [H2020 RfP] 

EN 

12 

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(22)  The  Commission  should  conduct  an  interim  evaluation  assessing  in  particular  the 
quality and efficiency of Eurostars-2 and progress towards the objectives set, as well 
as a final evaluation and prepare a report on those evaluations.  

(23)  Upon  request  from  the  Commission,  ESE  and  the  participating  states  should  submit 
any information the Commission needs to include in the reports on the evaluation of 
Eurostars-2.  

(24)  Since  the  objectives  of  this  Decision,  namely  to  support  transnational  research 
activities  performed  by  research-intensive SMEs and to contribute to the integration, 
alignment  and  synchronisation  of  national  research  funding  programmes  cannot  be 
sufficiently  achieved  by  the  Member  States  alone  due  to  lack  of  transnational 
dimension  and  of  complementarity  and  interoperability  of  national  programmes  and 
can therefore, by reason of scale and impact of the action, be better achieved at Union 
level, the Union may adopt measures, in accordance with the principle of subsidiarity 
as  set  out  in  Article  5  of  the  Treaty  on  European  Union.  In  accordance  with  the 
principle of proportionality, as set out in that Article, this Decision does not go beyond 
what is necessary in order to achieve those objectives, 

HAVE ADOPTED THIS DECISION: 

Article 1 

Subject matter 

This Decision lays down rules on the participation of the Union in the second Research and 
Development  Programme  jointly  undertaken  by  several  Member  States  aimed  at  supporting 
research  performing  small  and  medium-sized  enterprises  (SME)  (hereinafter  "Eurostars-2") 
and the conditions for its participation.  

Article 2 

Definitions 

For the purpose of this Decision the following definitions apply: 

(1) 

(2) 

"SME"  mean  micro-, 
in Commission Recommendation 2003/361/EC in the version of 6 May 2003; 

small-  and  medium-sized  enterprises,  as  defined 

"research performing SME" is an SME which reinvests at least 10% of its turnover to 
research and development activities or dedicates at least 10% full-time equivalents to 
research and development activities. 

Article 3 

Objectives 

Eurostars-2 shall pursue the following objectives: 

(1) 

promote research activities that comply with the following conditions: 

(a) 

the  activities  are  carried  out  by  transnational  collaboration  of  research-
performing  SMEs  among  themselves  or  including  other  actors  of  the 
innovation chain (e.g. universities, research organisations)  

(b) 

results  of  activities  are  expected  to  be  introduced  into  the  market  within  two 
years of the completion of an activity  

EN 

13 

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(2) 

(3) 

increase  the  accessibility,  efficiency  and  efficacy  of  public  funding  for  SMEs  in 
Europe by aligning, harmonising and synchronising the national funding mechanisms 
of participating states 

promote  the  participation  of  SMEs  without  previous  experience  in  transnational 
research. 

Article 4 

Participation in Eurostars-2 

The Union shall participate in Eurostars-2 jointly undertaken by Belgium, Bulgaria, 
the  Czech  Republic,  Denmark,  Germany,  Estonia,  Ireland,  Greece,  Spain,  France, 
Croatia,  Italy,  Cyprus,  Latvia,  Lithuania,  Luxembourg,  Hungary,  Malta,  the 
Netherlands,  Austria,  Poland,  Portugal,  Romania,  Slovenia,  Slovakia,  Finland, 
Sweden and the United Kingdom as well as Iceland, Israel, Norway, Switzerland and 
Turkey (hereinafter “participating states”), in accordance with the conditions set out 
in this Decision. 

(EU)  No  …/2013  … 

Any other Member State and any other country associated to the Horizon 2020 –The 
Framework  Programme  for  Research  and  Innovation  (2014-2020)  established  by 
Regulation 
(hereinafter  “Horizon  2020  Framework 
Programme”) may participate in Eurostars-2 provided it fulfils the condition set out 
in  Article  6(1)(c)  of  this  Decision.  Those  Member  States  and  associated  countries 
that fulfil that condition shall be regarded as participating states for the purposes of 
this Decision. 

Article 5 

Union's financial contribution 

The  maximum  Union's  financial  contribution,  including  EFTA  appropriations,  to 
Eurostars-2  shall  be  EUR  287  million30.  The  contribution  shall  be  paid  from  the 
appropriations  in  the  general  budget  of  the  Union  allocated  to  the  relevant  parts  of 
the  Specific  Programme  implementing  the  Horizon  2020  Framework  Programme, 
established  by  Decision  …  /2013/EU  in  accordance  with  Article  58(1)(c)(vi),  and 
Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012. 

Without  exceeding  the  maximum  amount  set  out  in  paragraph  1,  the  Union's 
contribution shall be equal to one third of the contributions of the participating states 
referred to in Article 7 (1)(a). It shall cover administrative and operational costs. 

A maximum of 2% of the Union’s financial contribution may be used to contribute to 
the  administrative  costs  of  Eurostars-2.  Participating  states  shall  cover  any  other 
administrative costs necessary for the implementation of Eurostars-2. 

The amount is indicative and will depend on the final agreed amount for DG Research and Innovation 
for  the  objective  “Innovation  in  SMEs”  under  Part2-Industrial  Leadership,  which  will  be  finally 
approved by the Budgetary Authority in the final version of the legislative and financial statement. 

1. 

2. 

1. 

2. 

3. 

30 

EN 

14 

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Article 6 

Conditions for the Union's financial contribution 

1. 

The Union's financial contribution shall be conditional upon the following: 

(a) 

(b) 

(c) 

(d) 

the  demonstration  by  the  participating  states  that  they  have  set  up  the 
Eurostars-2 in accordance with the objectives laid down in Article 3; 

the  designation  by  the  participating  states  or  organisations  designated  by  the 
participating states, of the Eureka Secretariat AISBL (hereafter “ESE”), as the 
implementing  Eurostars-2  and  for  receiving, 
structure  responsible  for 
allocating and monitoring the Union's financial contribution; 

the  commitment  by  each  participating  state  to  contribute  to  the  financing  of 
Eurostars-2; 

the demonstration by ESE of its capacity to implement Eurostars-2, including 
receiving,  allocating  and  monitoring  the  Union  financial  contribution,  in  the 
framework  of  indirect  management  of  the  Union  budget  in  accordance  with 
Articles 58, 60 and 61 of Regulation (EU, Euratom) No 966/2012;  

(e) 

the  establishment  of  a  governance  model  for  the  Eurostars-2  in  accordance 
with Annex II. 

2. 

During  the  implementation  of  Eurostars-2,  the  Union’s  contribution  shall  also  be 
conditional upon: 

(a) 

(c) 

(d) 

(e) 

(f) 

the  implementation  by  the  ESE  of  Eurostars-2  objectives  set  out  in  Article  3 
and  activities  set  out  in  Annex  I  in  accordance  with  the  rules  for  the 
participation and dissemination referred to in Article 8; (b)  the maintenance of 
an appropriate and efficient governance model in accordance with Annex II; 

the compliance by ESE with the reporting requirements set out in Article 60 (5) 
of Regulation (EU, Euratom) No 966/2012; 

the effective payment by the participating states of the financial contribution to 
all participants to Eurostars-2 projects selected for funding following the calls 
for proposals launched under Eurostars-2, fulfilling the commitments referred 
to in point (c) of paragraph 1; 

allocation of the funding from the national budgets for Eurostars-2 projects and 
the  Union's  financial  contribution  in  accordance  with  the  ranking  lists  of  the 
projects; 

the demonstration of a clear progress in the scientific, managerial and financial 
integration  by  the  establishment  of  minimum  operational  performance  targets 
and milestones for the implementation of Eurostars-2. 

Article 7  

Contribution from participating states 

1. 

Contribution  from  the  participating  states  shall  consist  of  the  following  financial 
contributions: 

(a) 

the co-financing of the selected Eurostars-2 projects, mainly through grants; 

EN 

15 

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2. 

1. 

2. 

3. 

4. 

1. 

2. 

1. 

2. 

(b) 

financial contribution to the administrative costs of Eurostars-2 not covered by 
the Union contribution as set out in Article 5 (3). 

Each participating state shall designate a NFB to administer financial support to the 
national participants in Eurostars-2 in accordance with Article 8. 

Article 8 

Rules for participation and dissemination 

For  the  purpose  of  Regulation  (EU)  No  …  [Rules  for  the  participation  and 
dissemination in Horizon 2020] the ESE shall be considered a funding body. 

By  way  of  derogation  from  Article  14(5)  of  Regulation  (EU)  No  …  [Rules  for  the 
participation and dissemination in Horizon 2020], the ESE shall verify the financial 
capacity of all applicants. 

By  way  of  derogation  from  Article  16(1)  of  Regulation  (EU)  No  …  [Rules  for  the 
participation  and  dissemination  in  Horizon  2020],  the  grant  agreements  with  the 
beneficiaries of the indirect action shall be signed by the NFBs concerned. 

By way of derogation from Articles 19(1), (5) to (7) and 22 to 28 of Regulation (EU) 
No … [Rules for the participation and dissemination in Horizon 2020], the funding 
rules of the participating national programmes shall apply to the grants administered 
by the NFBs. 

Article 9  

Implementation of Eurostars-2  

Eurostars-2 shall be implemented on the basis of annual work plans.  

Eurostars-2  shall  provide  financial  support  mainly  in  the  form  of  grants  to 
participants following calls for proposals. 

Article 10 

Agreements between the Union and ESE 

Subject to a positive ex-ante assessment of ESE in accordance with Article 61(1) of 
Regulation  (EU,  Euratom)  No  966/2012,  the  Commission,  on  behalf  of  the  Union, 
shall conclude a delegation agreement and annual transfer of funds agreements with 
the ESE. 

The  delegation  agreement  referred  to  in  paragraph  1  shall  be  concluded  in 
accordance to Articles 58(3), 60 and 61 of Regulation (EU, Euratom) No 966/2012 
and in Article 40 of Delegated Regulation (EU) No 1268/2012. It shall also set out 
the following:  

(a) 

(b) 

the  requirements  for  ESE  regarding  the  performance  indicators  set  out  in 
Annex II to Decision (EU) No … [the Specific Programme implementing the 
Horizon 2020 Framework Programme];  

the requirements for ESE's contribution to the monitoring referred to in Annex 
III to Decision (EU) No … [the Specific Programme implementing the Horizon 
2020 Framework Programme];  

(c) 

the specific performance indicators related to the functioning of ESE;  

EN 

16 

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(d) 

(e) 

(f) 

the  requirements  for  ESE  regarding  the  provision  of  information  on 
administrative  costs  and  of  detailed  figures  concerning  the  implementation  of 
Eurostars-2; 

the  arrangements  regarding  provision  of  data  necessary  to  ensure  that  the 
Commission is able to meet its dissemination and reporting obligations; 

the obligation for ESE to sign Bilateral Agreements with the NFBs before any 
transfer  of  Union’s  financial  contribution,  laying  down  the  minimum 
operational  performance  targets  and  milestones  for  the  implementation  of 
Eurostars-2.  

Article 11 

Termination, reduction or suspension of the Union’s financial contribution 

If  Eurostars-2  is  not  implemented  or  is  implemented  inadequately,  partially  or  late, 
the  Commission  may  terminate,  proportionally  reduce,  or  suspend  the  Union 
financial contribution in line with the actual implementation of Eurostars-2. 

If  the  participating  states  do  not  contribute,  contribute  partially  or  late  to  the 
financing  of  Eurostars-2,  the  Commission  may  terminate,  proportionally  reduce,  or 
suspend the Union financial contribution, taking into account the amount of funding 
allocated by the participating states to implement Eurostars-2.  

Article 12 

Ex-post audits  

ESE shall ensure that ex-post audits of expenditure on indirect actions are carried out 
by the respective NFBs in accordance with Article 23 of Regulation (EU) No … [the 
Horizon 2020 Framework Programme].  

1. 

2. 

1. 

2. 

The Commission may decide to carry out the audits referred to in paragraph 1 itself.  

Article 13 

Protection of the financial interests of the Union 

1. 

2. 

3. 

The  Commission  shall  take  appropriate  measures  ensuring  that,  when  actions 
financed under this Decision are implemented, the financial interests of the Union are 
protected by the application of preventive measures against fraud, corruption and any 
other illegal activities, by effective checks and, if irregularities are detected, by the 
recovery  of  the  amounts  wrongly  paid  and,  where  appropriate,  by  effective, 
proportionate and dissuasive administrative and financial penalties. 

ESE shall grant Commission staff and other persons authorised by it, as well as the 
Court  of  Auditors,  access  to  its  sites  and  premises  and  to  all  the  information, 
including information in electronic format, needed in order to conduct their audits. 

The European Anti-fraud Office (OLAF) may carry out investigations, including on-
the-spot  checks  and  inspections,  in  accordance  with  the  provisions  and  procedures 

EN 

17 

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laid down in Council Regulation (Euratom, EC) No 2185/9631 and Regulation (EC) 
No  1073/1999  of  the  European  Parliament  and  of  the  Council32  with  a  view  to 
establishing  whether  there  has  been  fraud,  corruption  or  any  other  illegal  activity 
affecting  the  financial  interests  of  the  Union  in  connection  with  an  agreement  or 
decision or a contract funded under this Decision. 

Contracts, grant agreements  and grant decisions, resulting from the implementation 
of this Decision shall contain provisions expressly empowering the Commission, the 
Court  of  Auditors,  OLAF  and  the  ESE  to  conduct  such  audits  and  investigations, 
according to their respective competences. 

In  implementing  Eurostars-2,  the  participating  states  shall  take  the  legislative, 
regulatory,  administrative  or  other  measures  necessary  for  protecting  the  Union’s 
financial  interests,  in  particular  to  ensure  full  recovery  of  any  amounts  due  to  the 
Union  in  accordance  with  Regulation  (EU,  Euratom)  No  966/2012  and  Delegated 
Regulation (EU) No 1268/2012. 

Article 14 

Communication of information 

At the request of the Commission, ESE shall send any information necessary for the 
preparation of the reports referred to in Article 15. 

The  participating  states  shall  submit  to  the  Commission,  through  ESE,  any 
information  requested  by  the  European  Parliament,  the  Council  or  the  Court  of 
Auditors concerning the financial management of Eurostars-2.  

The  Commission  shall  include  the  information  referred  to  in  paragraph  2  in  the 
reports referred to in Article 15. 

Article 15 

Evaluation 

By  31  December  2017  the  Commission  shall  conduct  an  interim  evaluation  of 
Eurostars-2.  The  Commission  shall  prepare  a  report  on  that  evaluation  which 
includes  conclusions  and  observations  by  the  Commission.  The  Commission  shall 
send that report to the European Parliament and to the Council by 30 June 2018. 

At  the  end  of  the  Union’s  participation  in  the  Eurostars-2  but  no  later  than  31 
December 2022, the Commission shall conduct a final evaluation of Eurostars-2. The 
Commission shall prepare a report on that evaluation which includes results of that 
evaluation.  The  Commission  shall  send  that  report  to  the  European  Parliament  and 
the Council. 

4. 

5. 

1. 

2. 

3. 

1. 

2. 

Article 16 

Entry into force 

31 
32 

OJ L 292, 15.11.1996, p. 2. 
OJ L 136, 31.5.1999, p. 1. 

EN 

18 

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

Article 17 

Addressees 

This Decision is addressed to the Member States. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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19 

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ANNEX I 

IMPLEMENTATION 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

ESE  shall  organise  continuously  open  calls  for  proposals  with  cut-off  dates  for  the 
award of financial support to indirect actions. 

Applicants shall submit project proposals to ESE as single entry point.  

After the closure of a call for proposals, a central eligibility check shall be carried out 
by  ESE  on  the  basis  of  the  eligibility  criteria  set  out  in  the  annual  work  plan.  No 
different or further eligibility criteria may be added by the Participating States. 

The ESE shall verify the financial capacity of the participants according to common, 
clear and transparent rules.  

Eligible  proposals  shall  be  evaluated  centrally  and  ranked  by  a  group  of  external 
independent  experts  in  accordance  with  the  criteria  set  out  in  Article  14(1)  of 
Regulation  (EU)  No  …  [Rules  for  the  participation  and  dissemination  in  Horizon 
2020], on the basis of transparent procedures. 

The ESE shall provide an evaluation review procedure in accordance with Article 15 
of Regulation (EU) No … [the Rules for Participation and dissemination in Horizon 
2020].  

The  ranking  list,  approved  as  a  whole  by  the  Eurostars-2  high  level  group  (HLG) 
referred  to  in  Annex  II,  shall  be  binding  for  the  allocation  of  funding  from  the 
national budgets for Eurostars-2 projects. 

Once the ranking list is approved, each Participating State shall finance its national 
participants  in  those  projects  selected  for  funding  through  the  designated  National 
Funding Body, making all possible efforts to ensure that the top-50 ranked projects 
and  at  least  50  to  75%  of  the  projects  above  thresholds  are  funded.  The  financial 
contribution to the participants shall be calculated according to the funding rules of 
the  Eurostars-2  Participating  State’s  national  programme.  The  Union’s  financial 
contribution  shall  be  transferred  by  ESE  to  the  NFBs  provided  that  the  NFBs  have 
paid their financial contribution to the projects.  

All eligible participants in project selected centrally shall be funded. The granting of 
financial  support  by  the  NFBs  to  project  participants  selected  centrally  shall  be 
subject to the principles of equal treatment, transparency and co-funding. 

ESE shall be responsible for evaluating proposals, informing NFBs, coordinating the 
synchronisation  process,  monitoring  projects  through  project  reporting  and  audits 
carried out by NFBs, and reporting to the Commission ensuring a short time to grant. 
It  shall  also  take  appropriate  measures  to  encourage  recognition  of  the  Union’s 
contribution  to  the  Eurostars-2  programme,  both  to  the  programme  itself  and  to 
individual  projects.  It  shall  promote  appropriate  visibility  for  such  contribution 
through the use of the Horizon 2020 logo in all published material, including printed 
and electronic publications, related to Eurostars-2.  

ESE shall conclude Eurostars-2 Bilateral Agreements with the NFBs. The Eurostars-
2 Bilateral Agreements shall set out the responsibilities of the contracting parties in 
accordance  with  the  Eurostars-2  rules,  objectives  and  implementation  modalities. 
The  Eurostars-2 Bilateral  Agreements  shall include the rules governing the transfer 
of  the  Union’s  contribution  and  the  minimum  operational  targets  and  national 

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progressive  milestones  for  further  integration  and  synchronisation  of  national 
programmes,  including  a  shorter  time-to-grant  in  accordance  with  the  [Rules  for 
Participation  and][the  Financial  Regulation].  These  targets  and  milestones  shall  be 
agreed by the Eurostars-2 HLG in consultation with the European Commission. The 
signature  of  the  Eurostars-2  Bilateral  Agreement  and  the  compliance  with  the 
operational  targets  and  milestones  shall  be a  pre-condition  for  NFBs  to  receive  the 
Union’s contribution.  

Networking  activities  and  exchange  of  good  practices  shall  also  be  organised 
amongst  the  participating states in order to favour stronger integration at scientific, 
managerial and financial level. 

Other activities shall also include brokerage, programme promotion and networking 
activities  with  other  stakeholders  (investors,  research  and  innovation  providers, 
intermediaries)  mainly  to  widen  participation  from  beneficiaries  in  all  Participating 
States  and  to  involve  SMEs  with  no  prior  experience  in  transnational  research 
projects.  

12. 

13. 

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GOVERNANCE OF EUROSTARS-2 

ANNEX II 

1. 

The ESE shall manage the Eurostars-2 Programme. The ESE is an international non-
profit  association  established  under  Belgian  law  (Aisbl)  in  1997  by  the  EUREKA 
countries and by the European Union represented by the Commission.  

The  Head  of  ESE  as  the  legal  representative  of  ESE  shall  be  in  charge  of 
implementing the Eurostars-2 programme by the following: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

the preparation of the annual budget for the calls, central organisation of joint 
calls  for  proposals  and  reception  of  the  proposals  as  single  entry  point;  the 
central organisation of the eligibility and evaluation of proposals, according to 
common eligibility and evaluation criteria, central organisation of the selection 
of  proposals  for  funding,  and  project  monitoring  and  follow-up;  the  receipt, 
allocation and monitoring of the Union contribution; 

collecting the necessary information from the NFBs for the transfer the Union 
contribution; 

promotion of the Eurostars-2 Programme; 

reporting  to  the  Eurostars-2  HLG  and  the  Commission  on  Eurostars-2, 
including on progress towards further integration; 

informing the Eureka network about the Eurostars-2 activities; 

the  delegation  agreement  with 

the  bilateral 
signing 
agreements  with  the  NFBs  and  the  contracts  with  the  experts  assessing  the 
Eurostars-2 applications; 

the  Commission, 

(g) 

adopting the Eurostars-2 annual work plan following the prior agreement of the 
Eurostars-2 HLG and of the Commission.  

2. 

The  Eurostars-2  HLG,  composed  of  the  national  representatives  in  the  EUREKA 
High Level Group of the Eurostars-2 Participating States, shall supervise operations 
of ESE on Eurostars-2 by the following: 

(a) 

(b) 

(c) 

(d) 

supervising the implementation of the Eurostars-2 Programme; 

appointing  the  members  of  the  Eurostars-2  Advisory  Group  (hereinafter 
"EAG"); 

approving the annual work plan; 

approving the ranking list of Eurostars-2 projects to be funded and taking the 
award decision. 

The Union, represented by the Commission, shall have the status of observer in the 
Eurostars-2  HLG.  The  Commission  shall  be  invited  to  participate  to  the  meetings, 
shall receive all meeting documents and may take part in the discussion. 

Any  other  EUREKA  country  not  participating  in  the  Eurostars-2  Programme  shall 
have the right to send representatives to Eurostars-2 HLG meetings as observers. 

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3. 

The EAG shall be composed of EUREKA National Project Coordinators (persons in 
the  national  government  or  agency  dealing  with  the  operational  level  of  the 
management of Eureka/Eurostars programme and in charge of the promotion of the 
Eurostars-2  Programme  in  the  participating  countries)  from  the  participating 
countries.  The Commission  shall  have  the right to send representatives in the EAG 
meetings as observers. The EAG meetings shall be chaired by the ESE. 

The EAG shall advise the ESE as well as the Eurostars-2 HLG on the arrangements 
for the implementation of Eurostars-2. 

4. 

The NFB shall be in charge of the administration of financial support to the national 
participants.  

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1. 

1.2. 

Title of the proposal/initiative 

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

1.3.  Nature of the proposal/initiative 

1.4.  Objectives 

1.5.  Grounds for the proposal/initiative 

1.6.  Duration and financial impact 

1.7.  Management mode(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 operational appropriations 

3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.4.  Compatibility with the current multiannual financial framework 

3.2.5.  Third-party contributions 

3.3. 

Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1. 

Title of the proposal/initiative 

Participation of the Union in a Research and Development Programme jointly undertaken by 
several  Member  States  aimed  at  supporting  research  performing  small  and  medium-sized 
enterprises. 

1.2. 

Policy area(s) concerned in the ABM/ABB structure33 

Research and Technological development: 

HORIZON 2020 (H2020) — Industrial Leadership — Innovation in SMEs 

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 action34 

(cid:58) 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 overall objective of this legislative proposal, is to stimulate European economic growth 
and job creation by enhancing the competitiveness of research-performing small and medium 
size enterprises (SMEs), therefore contributing to the Europe 2020.  

This will be achieved by: 

(1)  promoting  market-oriented  transnational  research  activities  without  thematic  restrictions 
by research-performing SMEs leading to new or improved product, processes and services to 
the market;  

(2)  contributing  to  the  completion  of  the  ERA  and  to  increase  accessibility,  efficiency  and 
efficacy of public funding for research-performing SMEs in Europe by aligning, harmonising 
and synchronising the national funding mechanisms. 

1.4.2. 

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

Specific objective No 3.1 of Innovation in Small and Medium Enterprises 

The  specific  objective  of  the  ‘Innovation  in  Small  and  medium  Size  Enterprises’  under  the 
‘Industrial  leadership’  priority  is  to  stimulate  growth  by  means  of  increasing  the  level  of 
innovation  in  SMEs,  covering  their  different  innovation  needs  over  the  whole  innovation 
cycle  for  all  types  of  innovations,  thereby  creating  more  fast  growing,  international  active 
SMEs. 

33 
34 

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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25 

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The  Eurostars-2  Joint  Programme  will  combine  Union,  national  and  private  sources  of 
funding  to  support  market-oriented  research,  executed  in  transnational  projects  initiated  and 
led by research-performing SMEs. 

The objective associated with this specific objective is the establishment and operation of the 
Eurostars-2 with R&D projects led by research-performing SMEs as the main output. 

ABM/ABB activity concerned: 08- Research and Innovation. 

1.4.3.  Expected result(s) and impact 

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

The  firms  participating  in  Eurostars  projects  should  be  able  to  develop  new  products, 
processes and services and significantly strengthen their competitive position in the European 
and global marketplace. 

The expected impact (counted three years after the end a Eurostars projects on average) is of 
M€10 increase in turnover for every 1M€ public fund, 25 jobs on average created for every 
M€1 of public fund and 3 new or improved prod ucts, processes or services on the market. 

1.4.4. 

Indicators of results and impact 

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

The indicators of results and impact set out in the Horizon 2020 — Framework Programme 
for  Research  and  Innovation  specific  objective  ‘Innovation  in  SMEs’  are  monitored  and 
annually reported by the dedicated management structure to the Commission. 

The indicators of results and impact set out in the Horizon 2020 – Framework Programme for 
Research and Innovation specific objective “Innovation in SMEs” are monitored and annually 
reported by the dedicated management structure to the Commission. 

The  main  indicator  is  the  “Share  of  participating  SMEs  introducing  innovations  new  to  the 
company or the market, covering the period of the project plus 3 years”. The target is 50%. 

Other  indicators  possibly  further  detailed  and  complemented  with  in  the  Delegation 
Agreement between the Commission and the ESE, will refer to: 

Investments  and  co-funding  of  the  Eurostars  Joint  Programme  by  the  participating  states; 
Programme  efficiency  (in  terms  of  time  to  evaluation  results);  Progress  towards  the 
integration  of  national  programmes  (including  time  to  grant);  Management  integration 
(including  a  single  reporting  system  and  central  evaluation  in  place),  Financial  integration 
(with top 50 ranking Eurostars projects always funded and standard financial viability check 
in place. 

1.5. 

Grounds for the proposal/initiative 

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

Eurostars-2  is  the  follow  up  of  Eurostars  implemented  along  the  lines  of  the  interim 
evaluation recommendations. 

The Union’s contribution is needed for the establishment and operation of the Eurostars-2 in 
order  to  allow  co-financing  of  the  activities  with  the  participating  states.  The  Union’s 
contribution  will  in  particular  be  used  to  co-finance  participants  in  selected  Eurostars-2 
projects following open calls for proposals. 

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1.5.2.  Added value of EU involvement 

The EU intervention will contribute to the continuation of a legal framework where EU and 
national  funding  are  combined  under  a  common  strategy  to  stimulate  transnational 
collaborative R&D and innovation projects for the benefit of research-performing SMEs. In 
particular, the participation of the EU will act as an incentive for the Eurostars participating 
states to further harmonise and align national programmes (rules and procedures), in line with 
the  European  Research  Area  and  will  create  incentives  for  increased  national  and  industrial 
investments  in  R&D  and  innovation  in  all  the  S&T  fields,  thus  contributing  to  the  EU2020 
objectives  and  to  the  final  benefit  of  the  research-performing  SMEs  with  high  growth 
potential, which could become the large European firms of tomorrow.  

1.5.3.  Lessons learned from similar experiences in the past 

An  interim  evaluation  conducted  in  2010  concluded  that  Eurostars  is  well  aligned  with  the 
objectives of Europe  2020, complements well the opportunities offered to SMEs  in FP7 for 
transnational cooperation and is attractive to the target group and for those reasons was worth 
considering its continuation beyond 2013. 

The following recommendations for improvement were also made, i.a. the participating states 
and the Union to provide sufficient funds to finance the maximum of top ranking projects; to 
further  streamline  and  harmonise  the  implementation  processes  and  funding  rules  at  the 
national  level;  to  improve  the  quality  of  evaluations  and  to  keep  short  time  to  contract  as  a 
priority. 

These lessons have been taken fully into account in the design of Eurostars-2. 

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

Horizon2020 foresee a number of instruments supporting SMEs besides Eurostars-2: the SME 
instrument, the ‘Access to finance instruments’ and the possibility for SMEs to participate via 
the more traditional collaborative projects. 

Eurostars-2  is  different  and  at  the  same  time  complementary  to  the  above  mentioned 
initiatives.  

While  each  of  those  instruments  responds  to  particular  needs  of  a  certain  type  of  SMEs, 
supporting  them  in  different  development  stages  of  their  research/business  idea  (high 
technology  readiness  for  the  SME  instruments,  need  of  loans/equity  rather  than  grants  for 
Financial  Instruments),  however  none  of  them  is  specifically  dedicated  to  transnational 
research  performing  SMEs  and  contribute  to  the  integration  and  harmonisation  of  national 
programmes as Eurostars-2 does through the use of Article 185 TFEU. 

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1.6. 

Duration and financial impact 

(cid:58) Proposal/initiative of limited duration 

•  (cid:58) 

Proposal/initiative  in  effect  from  01/01/2014  to  31/12/2020  for 
to  2024  for  payment 

commitment  appropriation  and  from  2014  up 
appropriations  

•  (cid:133) 

Financial impact from YYYY to YYYY 

(cid:133) Proposal/initiative of unlimited duration 

• 

• 

Implementation with a start-up period from YYYY to YYYY, 

followed by full-scale operation. 

1.7.  Management mode(s) envisaged35 

(cid:133) Centralised direct management by the Commission 

(cid:58) Centralised indirect management with the delegation of implementation tasks to: 

•  (cid:133) 

•  (cid:133) 

executive agencies 
bodies set up by the Communities36 

•  (cid:58) 

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) 

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

Comments 

The  financial  contribution  of  the  EU  to  the  joint  programme  will  be  paid  to  the  dedicated 
implementation  structure,  acting  on  behalf  of  participating  states.  The  dedicated 
implementation  structure  will  manage  Eurostars-2  and  receive,  allocate  and  monitor  the 
Union’s  financial  contribution.  The  structure  identified  by  the  participating  states  is  the 
EUREKA Secretariat. The governance structure is described in greater detail in Annex III of 
the Decision. 

35 

36 

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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2. 

MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

Specify frequency and conditions. 

In accordance with the Horizon 2020 — Framework Programme for Research and Innovation, 
the implementation of the Eurostars-2 Programme is annually monitored and reported by the 
dedicated management structure to the Commission. 

An interim evaluation will be conducted after three years of operation with the assistance of 
independent experts. A final evaluation will be conducted by external experts at the end of the 
programme. The Commission will submit the results to EP and Council. 

2.2.  Management and control system 

2.2.1.  Risk(s) identified 

1) The key risks concern the capacity of the dedicated implementation structure to manage the 
Unions’ budget contribution and the effective monitoring of the national agencies involved in 
the day to day operation of the programme 

2)  As  with  other  programmes  with  high  SMEs  participation,  there  is  a  risk  of  possible 
financial  losses  due  to  the  specific  target  group  of  Eurostars-2  (SMEs)  and  the  indirect 
centralised management approach. 

3)  A  third  risk  concerns  the  capacity  of  involved  countries  to  effectively  finance  their 
contributions to the programme. 

2.2.2.  Control method(s) envisaged 

Risk 1 is mitigated by the fact that the EU, represented by the Commission, is full member of 
the  Eureka  governance  structure,  supervising  the  dedicated  implementation  structure  for  all 
Eureka matters. 

For  mitigating  risk  2,  as  mentioned  in  Article  13,  in  implementing  the  Eurostars-2 
Programme,  the  participating  states  shall  take  the  legislative,  regulatory,  administrative  or 
other  measures  necessary  for  protecting  the  Union’s  financial  interests.  In  particular,  the 
participating states shall take the necessary measures to ensure full recovery of any amounts 
due to the Union. 

Concerning risks 1 and 2, see also chapter 2.3. 

Concerning  risk  3,  the  Union’s  contribution  will  be  transferred  to  the  beneficiaries  via  the 
participating  states’  funding  agencies  only  when  proof  will  be  provided  of  the  effective 
payment of the national contribution to the beneficiary. 

In  addition,  the  Union’s  contribution  cannot  exceed  one  third  of  the  contribution  of  the 
participating states and Union’s support to administrative expenditures cannot exceed 2 % of 
the overall Union’s contribution. 

Additional  mitigation  measures  will  be  decided  in  the  framework  of  the  Delegation 
Agreement  between  the  EU  and  the  ESE  and  of the Bilateral Agreements between the ESE 
and the NFBs. 

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2.2.3.  Costs and benefits of controls and probable non-compliance rate 

The  control  system  set  up  for  implementation  of  the  programme  will  be  designed  so  as  to 
provide reasonable assurance of achieving adequate management  of  the risks  relating to  the 
effectiveness  and  efficiency  of  the  operations  as  well  as  the  legality  and  regularity  of  the 
underlying transactions, taking due account the special nature of Eurostars-2 as public-public 
partnership. The control system must strike a balance between trust and control, taking into 
account administrative and other costs of controls at all levels, especially for participants, so 
that  it  can  best  contribute  to  achieving  the  objectives  of  the  Horizon  2020  Framework 
Programme. 

2.3.  Measures to prevent fraud and irregularities 

Specify existing or envisaged prevention and protection measures. 

Article 6 of the Decision establishing EUROSTARS-2 states that the Union’s contribution is 
conditional  upon  the  compliance  by  ESE  with  the  reporting  requirements  set  out  in  Article 
60(5) of Regulation (EU, Euratom) No 966/2012. According to Article 11, the Commission 
may terminate, reduce or suspend its contribution.  

The delegation agreement to be concluded between the Commission and ESE in compliance 
with Article 61 of Regulation (EU, Euratom) No 966/2012 will provide for the Commission 
to supervise the activities of ESE, in particular by carrying out audits. 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

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

– 

Existing budget lines 

In order of multiannual financial framework headings and budget lines. 

Heading of 
multiannual 
financial 
framework  08 02 02 03 

Budget line 

Increasing innovation in small 
and  medium-sized  enterprises 
(SMEs) 

Type of  
expenditure 

Contribution  

Diff./non-
diff. 
(37) 

from 
EFTA 
countries

38

from 
candidate 
39 
countries

from 
third 
countries 

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

1A 

Diff./non-
diff. 

YES 

YES 

YES 

YES 

37 
38 
39 

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

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3.2. 

Estimated impact on expenditure 

3.2.1. 

Summary of estimated impact on expenditure 

Heading of multiannual financial framework:  Number  Heading: 1a – Competitiveness for growth and jobs 

EUR million (to three decimal places) 

DG: RTD 

(cid:121) Operational appropriations  

Number of budget line:08 02 02 03 

Number of budget line 

Commitments 
Payments 
Commitments 
Payments 

(1) 

(2) 

(1a) 

(2a) 

Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes41  
Number of budget line 

(3) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

Year 
2021-2024 

TOTAL 

33,500 

35,000 

38,000 

41,000 

43,000 

46,000 

50,500 

4,000 

28,000 

30,000 

32,000 

34,000 

36,000 

40,000 

83,000 

287,00040 
287,000 

0,337 

0,344 

0,351 

0,358 

0,365 

0,372 

0,380 

2,505 

TOTAL appropriations 
for DG RTD 

Payments 

=2+2a 

+3 

4,337 

28,344 

30,351 

32,358 

34,365 

36,372 

40,380 

83,000  289,505 

Commitments 

=1+1a +3

33,837 

35,344 

38,351 

41,358 

43,365 

46,372 

50,880 

289,505 

40 
41 

The amounts are subject to agreement on the financial programming for budget line 08 02 02 03. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, 
direct research. 

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(cid:121) TOTAL operational appropriations  

Commitments 
Payments 

(cid:121) TOTAL appropriations of an administrative nature financed 
from the envelope for specific programmes  

TOTAL appropriations  
under HEADING <….> 
of the multiannual financial framework 

Commitments 

Payments 

(4) 

(5) 

(6) 

=4+ 6 

=5+ 6 

If more than one heading is affected by the proposal / initiative: 
(cid:121) TOTAL operational appropriations  

(4) 

Commitments 
Payments 

(cid:121) TOTAL appropriations of an administrative nature financed 
from the envelope for specific programmes  

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount) 

Commitments 

Payments 

(5) 

(6) 

=4+ 6 

=5+ 6 

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Heading of multiannual financial  
framework  

5 

‘Administrative expenditure’ 

Year 
2014 

Year 
2014  

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

2021 – 
2024 

TOTAL 

EUR million (to three decimal places) 

DG: RTD 

(cid:121) Human resources 
(cid:121) Other administrative expenditure  

TOTAL DG RTD 

Appropriations  

TOTAL appropriations 
for HEADING 5 
of the multiannual financial 
framework  

(Total 
commitments 
Total payments) 

= 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

2021 – 
2024 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial 
framework  

Commitments 

33,837 

35,344 

38,351 

41,358 

43,365 

46,372 

50,880 

Payments 

4,337 

28,344 

30,351 

32,358 

34,365 

36,372 

40,380 

83,000 

289,505 

289,505 

EN 

34 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on operational appropriations 

– 

– 

(cid:133) 

(cid:58) 

The proposal/initiative does not require the use of operational appropriations 

The proposal/initiative requires the use of operational appropriations, as explained below: 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

Commitment appropriations in EUR million (to three decimal places) 

Indicate 
objectives and 
outputs 

(cid:216) 

Type 

r
Aver
e
b
age 
m
u
cost  N

Cost 

r
e
b
m
u
N

Cost 

r
e
b
m
u
N

Cost 

r
e
b
m
u
N

Cost 

r
e
b
m
u
N

Cost 

r
e
b
m
u
N

Cost 

r
e
b
m
u
N

Cost 

l
a
t
o
T

r
e
b
m
u
N

Total Cost*** 

SPECIFIC OBJECTIVE No 1 

- Output (* **) 

R&D 
projects

0,56 

180 

100,70
0 

205,
000

114,80
0

240 

134,6
00

275 

154,4
00

325 

181,60
0

375 

209,80
0

450 

252,100 

2050 

1.148,000 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2… 

- Output 

Subtotal for specific objective No 2 

TOTAL COST 

180 

100,70
0 

205 

114,80
0 

240 

134,6
00 

275 

154,4
00 

325 

181,60
0 

375 

209,80
0 

450 

252,100 

2050 

1.148,000 

* A share of EU contribution may be used to cover the administrative costs of the dedicated implementation structure, with a ceiling of 2 % of the MEU contribution 

** An average cost of EUR 1,4M€ is assumed for Eurostars projects with an average public co-funding rate of 40%. With a public  funding of 0,56M€ per project, and an 
overall programme budget of 1148M€ (861M€ from Eurostars-2 participating states + 287M€ of EU contribution), about 2050 project

s can be funded 

*** The EU contribution to the total costs shall not exceed EUR 287 million. 

EN 

35 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary 

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

administrative nature 

–  (cid:58)  The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

Other 
expenditure  

administrative 

Subtotal HEADING 5 
of the multiannual 
financial framework  

42

Outside HEADING 5
of the multiannual 
financial framework 

Human resources  

Other 
of 
an 
nature 

expenditure  
administrative 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

0,337 

0,344 

0,351 

0,358 

0,365 

0,372 

0,380 

TOTAL 

0,337 

0,344 

0,351 

0,358 

0,365 

0,372 

0,380 

The  administrative  appropriations  required  will  be  met  by  the  appropriations  of  the  DG  which  are  already  assigned  to 
management  of  the  action  and/or  which  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.

42 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

36 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.  Estimated requirements of human resources 

– 

– 

(cid:133) 

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

The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

(cid:58) 
below: 

2014 

2015 

Estimate to be expressed in full time equivalent units 
2016 

2017 

2018 

2019 

2020 

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

08 01 01 01 (Headquarters and 
Commission’s Representation 
Offices) 
08 01 01 02 (Delegations) 
08 01 05 01 (Indirect research) 
10 01 05 01 (Direct research) 

1.5 

1.5 

1.5 

1.5 

1.5 

1.5 

1.5 

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

43

08 01 02 01 (CA, INT, SNE from the 
‘global envelope’) 
08 01 02 02 (CA, INT, JED, LA and 
SNE in the delegations) 
44

08 01 04 yy

- at headquarters 
- in delegations  

08 01 05 02 (CA, SNE, INT — 
Indirect research) 
10 01 05 02 (CA, SNE, INT — 
Direct research) 
Other budget lines (specify) 
TOTAL 

2 

2 

2 

2 

2 

2 

2 

3.5 

3.5 

3.5 

3.5 

3.5 

3.5 

3.5 

is the policy area or budget title concerned. 

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

Description of tasks to be carried out: 

Officials and temporary staff 

External staff 

Participation in meetings of the governance body of Eurostars 2 taking place 
in the Eureka Secretariat premises (on average each body meets once every 
two months)  
Approval of the annual work plan 
Monitoring of implementation based on the yearly reports  
Coordination of the mid-term and final evaluations and preparation of the 
Commission reply to those evaluation in form of a Commission Report to be 
transmitted to Parliament and Council 
(1.5 official) 
Support to preparation of delegation agreement with the DIS 
Preparation of annual financing decision and related payments 
Administrative support  
(2 CA) 

43 

44 

CA=  Contract  Agent;  LA  =  Local  Agent;  SNE  =  Seconded  National  Expert;  INT  =  agency  staff 
(‘Intérimaire’); JED= ‘Jeune Expert en Délégation’ (Young Experts in Delegations). . 
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

37 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.4.  Compatibility with the current multiannual financial framework 

–  (cid:58)  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 framework45. 

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

3.2.5.  Third-party contributions 

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

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

Appropriations in EUR million (to three decimal places) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

Total 
In Mill 
euro 

67,200 

79,800 

96,600 

113,400 

138,600 

163,800 

201,600 

861,000 

Specify 
financing 
Member States46 

the 
body 

co-
: 

TOTAL 
appropriations 
financed  

co-

67,200 

79,800 

96,600 

113,400 

138,600 

163,800 

201,600 

861,000 

Co-financing details 

The Union’s contribution to operating costs (excluding the evaluation costs) of the Eurostars 
2 Programme will be at maximum 2% of the overall Union’s financial contribution. 

The Union’s contribution shall be equal to one third of the contributions of the participating 
states, but shall in any case not exceed 287 M€.  

Moreover,  the  organisations  participating  in  R&D  projects  selected  through  the  Calls  for 
Proposals launched by the Programme will co-finance these projects. These co-fundings are 
expected  to  amount  to  an  average  of  60%  of  the  public  funding  received  (but  this  differs 
amongst the participating states).  

45 
46 

See points 19 and 24 of the Interinstitutional Agreement. 
Belgium, Bulgaria, Czech Republic, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Italy, 
Croatia,  Cyprus,  Latvia,  Lithuania,  Hungary,  Malta,  the  Netherlands,  Austria,  Poland,  Portugal, 
Rumania, Slovenia, Finland and Sweden as well as Iceland, Israel, Norway, Switzerland and Turkey. 

EN 

38 

   EN 

 
 
                                                 
3.3. 

Estimated impact on revenue 

–  (cid:59)  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 

EN 

39 

   EN