Proposal for a COUNCIL REGULATION establishing the Shift2Rail Joint Undertaking
Date: 2013-12-16
Institutions: European Commission
Subjects: European Joint Undertaking, harmonisation of standards, innovation, rail transport, research and development, transport infrastructure













EUR-Lex - 52013PC0922 - EN











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52013PC0922

Proposal for a COUNCIL REGULATION establishing the Shift2Rail Joint Undertaking /* COM/2013/0922 final - 2013/0445 (NLE) */









TABLE OF CONTENTS
EXPLANATORY MEMORANDUM...................................................................................... 5
1........... CONTEXT OF THE PROPOSAL.............................................................................. 5
1.1........ General context............................................................................................................. 5
1.2........ Reasons and objectives for a
Joint Undertaking in the field of rail............................. 5
2........... RESULTS OF CONSULTATIONS WITH
THE INTERESTED PARTIES AND IMPACT ASSESSMENTS.......................................................................................................... 6
2.1........ Consultation of interested parties
and use of expertise................................................ 6
2.2........ Impact assessment........................................................................................................ 7
3........... LEGAL ELEMENTS OF THE PROPOSAL.............................................................. 7
3.1........ Content of the proposal................................................................................................ 8
3.2........ Legal basis.................................................................................................................... 7
3.3........ Subsidiarity and proportionality................................................................................... 8
4........... BUDGETARY IMPLICATION................................................................................. 8
COUNCIL REGULATION establishing the
Shift2Rail Joint Undertaking............................. 9
LEGISLATIVE FINANCIAL STATEMENT........................................................................ 22
1........... FRAMEWORK OF THE
PROPOSAL/INITIATIVE.............................................. 22
1.1........ Title of the proposal/initiative..................................................................................... 22
1.2........ Policy area(s) concerned in the
ABM/ABB structure................................................ 22
1.3........ Nature of the proposal/initiative................................................................................. 22
1.4........ Objective(s)................................................................................................................. 22
1.5........ Grounds for the
proposal/initiative............................................................................. 22
1.6........ Duration and financial impact.................................................................................... 22
1.7........ Management mode(s) envisaged................................................................................ 22
2........... MANAGEMENT MEASURES................................................................................ 22
2.1........ Monitoring and reporting rules................................................................................... 22
2.2........ Management and control system................................................................................ 22
2.3........ Measures to prevent fraud and
irregularities.............................................................. 22
3........... ESTIMATED FINANCIAL IMPACT OF
THE PROPOSAL/INITIATIVE.......... 22
3.1........ Heading(s) of the multiannual
financial framework and expenditure budget line(s) affected        22
3.2........ Estimated impact on expenditure............................................................................... 22
3.2.1..... Summary of estimated impact on
expenditure........................................................... 22
3.2.2..... Estimated impact on operational
appropriations......................................................... 22
3.2.3..... Estimated impact on appropriations
of an administrative nature............................... 22
3.2.4..... Compatibility with the current
multiannual financial framework............................... 22
3.2.5..... Third-party contributions............................................................................................ 22
3.3........ Estimated impact on revenue...................................................................................... 22
1........... FRAMEWORK OF THE
PROPOSAL/INITIATIVE.............................................. 23
1.1........ Title of the proposal/initiative..................................................................................... 23
1.2........ Policy area(s) concerned in the
ABM/ABB structure................................................ 23
1.3........ Nature of the proposal/initiative................................................................................. 23
1.4........ Objective(s)................................................................................................................. 23
1.4.1..... The Commission's multiannual
strategic objective(s) targeted by the proposal/initiative    23
1.4.2..... Specific objective(s) and ABM/ABB
activity(ies) concerned.................................... 23
1.4.3..... Expected result(s) and impact.................................................................................... 24
1.4.4..... Indicators of results and impact................................................................................. 24
1.5........ Programme level monitoring and
reporting, based on project and work package data, and including the monitoring
of the quality of deliverables against a set of satisfaction criteria; the
monitoring of project management to verify its overall quality and the
compliance with the strategic work programme. Grounds for the
proposal/initiative............................................................................................ 24
1.5.1..... Requirement(s) to be met in the
short or long term.................................................... 24
1.5.2..... Added value of EU involvement............................................................................... 24
1.5.3..... Lessons learned from similar
experiences in the past................................................. 24
1.5.4..... Compatibility and possible synergy
with other appropriate instruments.................... 25
1.6........ Duration and financial impact.................................................................................... 26
1.7........ Management mode(s) planned.................................................................................... 26
2........... MANAGEMENT MEASURES................................................................................ 27
2.1........ Monitoring and reporting rules................................................................................... 27
2.2........ Management and control system................................................................................ 27
2.2.1..... Risk(s) identified........................................................................................................ 27
2.2.2..... Internal control system set up..................................................................................... 27
2.2.3..... Costs and benefits of the controls.............................................................................. 27
2.2.4..... Expected level of risk of error.................................................................................... 28
2.3........ Measures to prevent fraud and
irregularities.............................................................. 28
3........... ESTIMATED FINANCIAL IMPACT OF
THE PROPOSAL/INITIATIVE.......... 29
3.1........ Heading(s) of the multiannual
financial framework and expenditure budget line(s) affected        29
3.2........ Estimated impact on expenditure............................................................................... 30
3.2.1..... Summary of estimated impact on
expenditure........................................................... 30
3.2.2..... Estimated impact on operational
appropriations......................................................... 32
3.2.3..... Estimated impact on appropriations
of an administrative nature............................... 33
3.2.3.1.. Summary..................................................................................................................... 33
3.2.3.2.. Estimated requirements of human
resources.............................................................. 35
3.2.4..... Compatibility with the current
multiannual financial framework............................... 37
3.2.5..... Third-party contributions............................................................................................ 37
EXPLANATORY
MEMORANDUM
1.           CONTEXT
OF THE PROPOSAL
1.1.        General
context
Ambitious EU goals relating to climate
change, energy supply and the environment mean that the railway sector will be
required to take on a significant share of the ever-increasing demand for
transport in the next decades. In its 2011 White Paper on a Roadmap to a Single
European Transport Area[1],
the Commission underlines the importance of creating a Single European Railway
Area in order to achieve a more competitive and resource-efficient European
transport system. Consequently, the Commission has adopted proposals for a 4th
Railway Package[2]
which aim to remove remaining administrative, technical and regulatory
obstacles holding back the rail sector both in terms of market opening and in
terms of interoperability. However, the overarching goal of establishing an
internal market for rail and achieving a more efficient and customer-responsive
industry will necessarily imply the emergence of innovative approaches
throughout the whole of the rail value chain, in business models, services and
products, which will, in turn, require a dramatic increase in research and
innovation efforts.
One of the main aims of Horizon 2020, the
Framework Programme for Research and Innovation covering the period 2014-2020,
is to strengthen European industry through actions supporting research and
innovation across a range of key industrial sectors. In particular, it provides
for the creation of public-private partnerships (PPPs) to support these sectors
and help to tackle some of the key challenges Europe is facing. As part of its
Innovation Investment Package announced in July 2013[3], the Commission has
already put forward a number of legislative proposals for PPPs to be
established under the Horizon 2020 Framework Programme in the form of joint
undertakings with a view to implementing Joint Technology Initiatives in
various industrial sectors. This proposal is fully aligned with the approach to
the Joint Technology Initiative joint undertakings of the Innovation Investment
Package.
1.2.        Reasons
and objectives for a Joint Undertaking in the field of rail
Revitalising Europe's railways is a key
goal of the EU’s transport policy to enable rail to compete successfully with
other modes of transport. New technologies can do much to help modernise Europe’s railways, while also reducing operational and infrastructure costs and creating
new business opportunities for the European rail supply industry. In past
decades, significant investments in EU rail research and innovation have helped
the European rail supply industry to retain a leading position at global level,
namely with the development of high-speed trains, ERTMS, automated metro
systems, etc. However, a recent Commission study on the competitiveness of the
railway supply industry[4]
shows that Asia is steadily overtaking Europe as the largest rail supply
market, namely thanks to a surge in research and innovation investments in
countries like China and Korea.
At the same time, rail research and innovation suffers
from the following important market and systemic failures that justify public
intervention:
·        
High level of product customisation due to the diversity
of national standards and operating frameworks;
·        
Lack of a system-wide approach to innovation due
to limited or uncoordinated participation of actors from the full rail value
chain and the complexity of interfaces between railway sub-systems; 
·        
Limited private investment in research and
innovation and limited market uptake of innovations due to low operational
margins and funding gaps in the full innovation cycle;
·        
Heightened financial risks due to the capital-intensity
of investments and long product lifecycles.
Set against these
challenges, a coordinated EU approach to research and innovation in the rail
sector via the establishment of a joint undertaking is proposed to support the
completion of the Single European Railway Area and to increase the
competitiveness of the EU rail sector vis-à-vis the other transport modes and
vis-à-vis foreign competition.
The general objectives of the proposed joint undertaking
on rail are to:
·        
facilitate joint vision development and
strategic agenda setting;
·        
develop a programming approach in European research
and innovation so as to realise a broad-based focus embracing all potential
partners;
·        
build critical mass to ensure the scale and
scope required; 
·        
ensure an efficient use of public and private
resources.
More specifically, by developing,
integrating, demonstrating and validating innovative technologies and solutions
for rolling stock, infrastructure and traffic management systems, the joint
undertaking will serve to accelerate and facilitate the market uptake of
technological breakthroughs that can be measured against the following quantifiable
performance indicators, inter alia:
·        
Life-cycle costs and competitiveness, namely defined
as a reduction in the overall costs of rail transport, thereby reducing costs
for users and public subsidies for the tax payer. 
·        
Capacity and user demand, namely defined as the
frequency of trains/metro/trams per hour available on a specific route, as well
as the load factors of passenger and freight travel options;
·        
Reliability and quality of service, namely defined
as the improvement in on-time arrivals, reflecting the need for improved
punctuality by rail users but also affecting investment requirements for new
fleets as fewer reliable vehicles are needed.
In addition, these breakthroughs will
contribute to removing remaining technical obstacles
holding back the rail sector in terms of interoperability and efficiency and to
reducing negative externalities linked to railway transport.
According to rail
industry studies, a coordinated research and innovation effort of EUR 800
million to EUR 1 billion, under the ambit of a well-defined public-private
partnership structure, would lead to an overall reduction in life-cycle costs
of up to 50%, to an overall increase in capacity of up to 100%, and to an
overall increase in reliability of up to 50% in the different rail market
segments.
2.           RESULTS
OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS
2.1.        Consultation
of interested parties and use of expertise
Extensive consultations with stakeholders were
organised. A web-based open consultation was launched on 28 June 2013. It was
open for 12 weeks, until 19 September 2013, and provided all interested
stakeholders with a possibility to express their views. 372 responses were
received, including 152 responses from individual citizens and 220 from
representatives of organisations or institutions. Responses came from 24
different EU countries and are thus highly representative of the whole EU. 60%
of responses came from the five countries that currently receive the largest
shares of current EU funding for rail research, namely France, Spain, Italy, Germany and the United Kingdom. 
The majority of respondents were private
companies (42%), followed by research organisations and universities (21.8%),
industry associations and chambers of commerce (11.5%), SMEs (10%) and public
authorities (5.5%). The remainder included NGOs, self-employed people or other.
Respondents were mostly from the rail supply industry (rolling stock, vehicle
components, construction and building), with just 5% of responses coming from
infrastructure managers and 4% from railway undertakings. 
This online consultation was complemented
by individual meetings with sector representatives. 
A stakeholder hearing was also organised on
12 September 2013, to which 85 stakeholder representatives participated. More details
on this consultation process can be found in Annex V of the impact assessment.
2.2.        Impact
assessment
The proposed Regulation has been the
subject of a Commission Impact Assessment which is attached to the proposal.
The Impact Assessment analysed different options for implementing future rail
research and innovation activities, including the continuation of collaborative
research, the establishment of a contractual PPP, the establishment of an institutional
PPP in the form of a joint undertaking, or the coordination of research and
innovation activities by the European Railway Agency. The Impact Assessment
concluded that that, despite the longer set-up time, the establishment of a joint
undertaking, taking into account the lessons learned from existing joint
undertakings, provides the most appropriate governance structure for
implementing future rail research and innovation activities. 
The main benefits of the joint undertaking
are that the coordination, programming and execution of rail research and
innovation activities would be the responsibility of a single, dedicated
administrative structure, ensuring more continuity and less fragmentation of research
and innovation efforts. The development of a strategic long-term plan and of
detailed work programmes, in close cooperation with all market players, will
ensure the quality and relevance of future research and innovation projects in
terms of supporting the competitiveness of the rail sector. The leading role
played by the Commission will also ensure the alignment of the research and
innovation strategy with the objectives of achieving a Single European Railway
Area. The stable nature of the joint undertaking and the firm, legally binding,
commitments from the EU and industry partners will ensure a stronger leverage
effect than other options. The joint undertaking also ensures broad and
balanced stakeholder participation, thanks to a flexible and transparent
management of membership conditions and advisory roles.
The joint undertaking is also the preferred
option according to the results of the public consultation. It is judged to be
nearly twice as effective as any other option, with four in five respondents
judging it would be effective or very effective in responding to the identified
challenges.
3.           LEGAL
ELEMENTS OF THE PROPOSAL
3.1.        Content
of the proposal
This proposal
concerns setting-up the Shift2Rail Joint Undertaking (S2R Joint Undertaking)
under Article 187 of the Treaty on the Functioning of the European Union
(TFEU). The S2R Joint Undertaking will share the standard provisions of the proposals
for the five Joint Technology Initiative joint undertakings presented in July
2013. Nevertheless, public authorities are expected to play a stronger role in
the S2R Joint Undertaking than is the case in the Joint Technology Initiative joint
undertakings given its core objective of contributing
to implement the Single European Railway Area, hence, the governance structure of
the S2R Joint Undertaking will be different.
The S2R Joint Undertaking should be
established for a period ending on 31 December 2024. It will be founded by the
Union, represented by the European Commission, and by the Founding Members other
than the Union, listed in Annex II to this Regulation. The activities of the
S2R Joint Undertaking will be jointly funded by the Union and the members of
the S2R Joint Undertaking other than the Union.
3.2.        Legal
basis
The legal basis for the proposal is Article
187 of the TFUE. The Rules for Participation and Dissemination of Horizon 2020 will
apply. 
3.3.        Subsidiarity
and proportionality
The objectives of the proposal cannot be
sufficiently achieved through national programmes because the scale of the
challenge exceeds the capacity of any Member State to act alone. Significant
differences exist among national programmes. Their fragmentation and occasional
overlapping calls for more efficient action at EU level. The pooling and
coordination of research and innovation efforts at EU level stands a better
chance of success, given the transnational nature of the infrastructure and
technologies to be developed, and also the need to achieve a sufficient mass of
resources. The involvement of the EU will help to rationalise research
programmes and ensure interoperability of the systems developed, not only
through common pre-normative research to support the preparation of standards,
but also through the de facto standardisation which will arise from the close
research cooperation and the transnational demonstration projects. This
standardisation will open a wider market and promote competition. In accordance
with the principle of proportionality, the provisions of this Regulation do not
go beyond what is necessary to achieve its objectives.
4.           BUDGETARY
IMPLICATION 
The maximum Union financial contribution to
the Shift2Rail initiative shall be EUR 450 million[5], including EFTA
contributions, paid from the appropriations in the general budget of the Union allocated to the Horizon 2020 Specific Programme implementing the Horizon 2020
Framework Programme. This contribution will be made from the Smart, Green and
Integrated Transport Challenge under the Societal Challenges pillar[6]. This amount includes EUR
52 million that has been set aside for funding collaborative rail research actions
under the H2020 Transport Work Programme for 2014-2015, while awaiting the
launch of the S2R Joint Undertaking. These collaborative research actions will
be a precursor to the research and innovation actions that will be funded by
the S2R Joint Undertaking. The management of these actions and the
corresponding budget, as well as any amounts not committed following the calls
for proposals, may be taken over by S2R Joint Undertaking once it achieves the
operational capacity to implement its own budget. The funds made available by the
 Union to cover operational costs will be at least matched by contributions
from industry. 
The administrative costs of the S2R Joint
Undertaking shall not exceed EUR 27 million for the duration of the S2R Joint
Undertaking. These costs will be covered through financial contributions in
equal parts by the Union and the S2R Joint Undertaking members other than the Union[7].
2013/0445 (NLE)
Proposal for a
COUNCIL REGULATION
establishing the
Shift2Rail Joint Undertaking 
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 187 and the first
paragraph of Article 188 thereof,
Having regard to the proposal from the
European Commission,
Having regard to the opinion of the
European Parliament[8],

Having regard to the opinion of the
Economic and Social Committee[9],
Whereas:
(1)       Europe 2020 Strategy[10] underscores the need
to develop favourable conditions for investment in knowledge and innovation, including
eco-innovation, so as to achieve smart, sustainable and inclusive growth in the
 Union. 
(2)       The White Paper on a
Roadmap to a Single European Transport Area, adopted on 28 March 2011 (the "2011
White Paper")[11],
emphasises the need to create a Single European Railway Area to achieve a more
competitive and resource-efficient Union transport system, and to address major
societal issues such as rising traffic demand, congestion, security of energy
supply and climate change. It adds that innovation will be essential for this
strategy and that EU research needs to address the full cycle of research,
innovation and deployment in an integrated way through focusing on the most
promising technologies and bringing together all actors involved.
(3)       Regulation (EU) No …/2013
of the European Parliament and of the Council of … 2013 establishing Horizon
2020 - the Framework Programme for Research and Innovation for the period 2014-2020
(“Horizon 2020 Framework Programme”)[12]
aims to achieve a greater impact of research and innovation efforts by
combining EU and private-sector funds in public-private partnerships (PPPs) in
areas where research and innovation can contribute to the Union's wider
competitiveness goals and help tackle societal challenges. The Union
involvement in these partnerships can take the form of financial contributions
to joint undertakings established on the basis of Article 187 of the Treaty.
(4)       In accordance with
Decision (EU) No …/2013 of the Council of … 2013 establishing the Specific
Programme implementing Horizon 2020 (2014-2020)[13] support may be
provided to joint undertakings established in the Horizon 2020 Framework
Programme under the conditions specified in that Decision.
(5)       The Communication from the
Commission to the European Parliament, the Council, the European Economic and
Social Committee and the Committee of the Regions on Public-private
partnerships in Horizon 2020: a powerful tool to deliver on innovation and
growth in Europe[14]
identifies specific public-private partnerships to be supported, including the
five Joint Technology Initiative joint undertakings and the SESAR (Single
European Sky ATM Research) Joint Undertaking. In addition, it calls for a joint
undertaking in the railway sector in light of the scale of research and
innovation efforts required to build EU leadership in rail technologies and the
policy need to complete the Single European Railway Area.
(6)       The Communication from the
Commission to the European Parliament, the Council, the European Economic and
Social Committee and the Committee of the Regions on the Fourth Railway Package
– Completing the single European railway area to foster Union competitiveness
and growth (the "Fourth Railway Package")[15] highlights the need
for a joint undertaking in the railway sector to help develop rail as a
transport mode by promoting step-change innovations for passenger rolling
stock, freight transport, traffic management systems and rail infrastructure.
It stresses the importance of achieving better value for money in rail given
the scarcity of public funds, thanks to the creation of a single market, and
calls for a more European approach to rail in order to encourage modal shift
from road and air. 
(7)       The Shift2Rail Joint
Undertaking (hereinafter "S2R Joint Undertaking") should be a PPP
aimed at stimulating and better coordinating Union research and innovation investments
in the rail sector with a view to accelerating and facilitating the transition
towards a more integrated, efficient, sustainable and attractive EU railway
market, in line with the business needs of the rail sector and with the general
objective of achieving a Single European Railway Area. In particular, the S2R
Joint Undertaking should contribute to specific objectives defined in the 2011
White Paper and in the Fourth Railway Package, including the improved efficiency
of the rail sector for the benefit of the public purse; a considerable
expansion or upgrading of the capacity of the rail network, so as to enable
rail to compete effectively and take a significantly greater proportion of passenger
and freight transport; an improvement in the quality of rail services by
responding to the needs of rail passengers and freight forwarders; the removal of technical obstacles holding back the sector in terms
of interoperability; and the reduction of negative
externalities linked to railway transport. The progress of the S2R Joint
Undertaking towards meeting these objectives should be measured against key
performance indicators.
(8)       The rules for the
organisation and operation of the S2R Joint Undertaking should be laid down in
the Statutes of the S2R Joint Undertaking as part of this Regulation.
(9)       The founding members of
the S2R Joint Undertaking should be the Union, represented by the Commission,
and the Founding Members other than the Union, listed in Annex II, so long as they
accept the Statutes set out in Annex I to this Regulation. These Founding Members
other than the Union are financially sound single legal entities who have the financial
capacity and have expressed their agreement, in writing, following intensive
stakeholder consultations, to make a major financial contribution to pursue the
research activities in the area of the S2R Joint Undertaking, within a
structure well adapted to the nature of a public-private partnership.
(10)     Substantial participation
from industry is an essential element of the S2R initiative. It is therefore
fundamental that the public budget for the S2R initiative be at least matched
by contributions from industry. Membership will therefore be open to other
public or private entities willing to commit the necessary resources to carry
out research and innovation activities in the area of the S2R Joint Undertaking.

(11)     The objective of the S2R Joint
Undertaking shall be to manage the research, development and validation
activities of the S2R initiative by combining public and private sector funding
provided by its members and by drawing on internal and external technical
resources. It shall establish new forms of collaboration, that are consistent
with competition rules, between stakeholders from the entire rail value chain
and from outside the traditional rail sector, and shall bring in the experience
and expertise of the European Railway Agency on issues relating to
interoperability and safety.
(12)     In order to achieve its
objectives, the S2R Joint Undertaking should provide financial support, mainly
in the form of grants to members and through the most appropriate measures,
such as procurement or the award of grants following calls for proposals.
(13)     The S2R Joint Undertaking
should operate in a transparent way providing all relevant available
information to its appropriate bodies as well as promoting its activities
accordingly.
(14)     The activities undertaken
by the S2R Joint Undertaking are mainly research and innovation activities.
Therefore, Union funding should be paid from the Horizon 2020 Framework Programme.
To achieve maximum impact, the S2R Joint Undertaking should develop close
synergies with other Union programmes and funding instruments, such as the
Connecting Europe Facility, the European Structural and Investment Funds or the
Risk Sharing Funding Facility.
(15)     Contributions from members
other than the Union should be defined in a membership agreement with the S2R
Joint Undertaking. These contributions should not only be limited to the
administrative costs of the S2R Joint Undertaking and to the co-financing
required to carry out research and innovation actions supported by the S2R
Joint Undertaking. Their contributions should also relate to additional
activities to be undertaken by them; in order to ensure a strong leverage
effect. Those additional activities should represent contributions to the
broader S2R initiative.
(16)     Participation in indirect
actions funded by the S2R Joint Undertaking should comply with Regulation (EU)
No … /2013 of the European Parliament and of the Council of … 2013 laying down
the rules for participation and dissemination in "Horizon 2020 - the
Framework Programme for Research and Innovation (2014-2020)"[16] 
(17)     The Union financial
contribution to the S2R Joint Undertaking should be managed in accordance with
the principle of sound financial management and with the relevant rules on
indirect management laid down in Regulation (EU, Euratom) No 966/2012 of the
European Parliament and of the Council[17]
and Commission Delegated Regulation (EU) No 1268/2012.[18]
(18)     Audits of recipients of
Union funds under this Regulation should be carried out in such a manner that
the administrative burden is reduced, in compliance with Regulation (EU) No
…/2013 [the Horizon 2020 Framework Programme].
(19)     The financial interests of
the Union and of the other members of the S2R Joint Undertaking 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.
(20)     The Commission's internal
auditor should exercise the same powers over the S2R Joint Undertaking as those
exercised in respect of the Commission.
(21)     In accordance with Article
287(1) of the Treaty, the constituent instrument of bodies, offices or agencies
set up by the Union may preclude the examination of the accounts of all revenue
and expenditure of those bodies, offices or agencies by the Court of Auditors.
In accordance with Article 60(5) of Regulation (EU, Euratom) No 966/2012, the
accounts of the bodies under Article 209 of Regulation (EU, Euratom) No
966/2012 are to be examined by an independent audit body which is to give an
opinion inter alia on the reliability of the accounts and the legality and
regularity of the underlying transactions. Avoidance of duplication of the
examination of the accounts justifies that the accounts of the S2R Joint
Undertaking should not be subject to examination by the Court of Auditors.
(22)     In order to facilitate the establishment
of the S2R Joint Undertaking, the Commission should be responsible for the
establishment and initial operation thereof until the S2R Joint Undertaking has
the operational capacity to implement its own budget.
(23)     Since the objectives of the
S2R Joint Undertaking in strengthening industrial research and innovation
across the Union cannot be sufficiently achieved by the Member States and can be
better achieved at Union level, thereby avoiding duplication, retaining
critical mass and ensuring that public financing is used in an optimal way, 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 Regulation does
not go beyond what is necessary in order to achieve those objectives.
HAS ADOPTED THIS REGULATION:
Article 1– Establishment
1.           In order to coordinate and
manage Union research and innovation investments in the European rail sector, a
joint undertaking within the meaning of Article 187 of the Treaty (the "Shift2Rail
Joint Undertaking" or "S2R Joint Undertaking") is hereby
established until 31 December 2024. 
2.           The S2R Joint Undertaking shall
constitute a body entrusted with the implementation of a public-private
partnership referred to in Article 209 of Regulation (EU, Euratom) No 966/2012
of the European Parliament and the Council[19].
3.           The S2R Joint Undertaking
shall have legal personality. In every Member State, it shall enjoy the most
extensive legal capacity accorded to legal persons under the law of that State.
It may acquire or dispose of movable and immovable property and may be a party
to legal proceedings.
4.           The seat of the S2R Joint
Undertaking shall be located in Brussels, Belgium.
5.           The Statutes of the S2R Joint
Undertaking are set out in Annex I.
Article 2 – Objectives
1.           The S2R Joint Undertaking
shall have the following as general objectives:
(a)         
to contribute to the implementation of
Regulation (EU) No …/2013 of the European Parliament and of the Council of
….2013 establishing the Horizon 2020 Framework Programme and in particular part
of the Smart, Green and Integrated Transport Challenge under the Societal
Challenges pillar of Decision No … /2013 EU of the Council of …2013
establishing the Horizon 2020 Specific Programme.
(b)         
to contribute to the achievement of the Single
European Railway Area, to a faster and cheaper transition to a more attractive,
competitive, efficient and sustainable European rail system, and to a modal
shift from road and air to rail, through a comprehensive and co-ordinated
approach addressing the research and innovation needs of the rail system and
its users. This approach shall cover rolling stock, infrastructure and traffic
management for the market segments of freight and of long-distance, regional, local
and urban passenger traffic, as well as intermodal links between rail and other
modes, providing users with an integrated end-to-end
solution for their rail travel and transport needs – from transaction support
to en-route assistance.
(c)         
to develop – and ensure the effective and
efficient implementation of – a strategic Master Plan (the "S2R Master
Plan"), as referred to in clause 1(4) of the Statutes contained in Annex I.

(d)        
to act as a central reference point on
rail-related research and innovation actions funded at Union level, ensuring
coordination among projects and providing all stakeholders with relevant
information.
(e)         
to actively promote the participation and close
involvement of all relevant stakeholders from the full
rail value chain and from outside the traditional rail industry, in particular: manufacturers of
railway equipment (both rolling stock and train control systems) and their
supply chain, infrastructure managers, railway operators (both passenger
and freight), rail vehicle leasing companies, certifying
agencies, professional staff associations, user associations (both
passenger and freight), as well as the relevant scientific institutions or the
relevant scientific community. The involvement of small and medium sized
enterprises (SMEs), as defined in Commission Recommendation 2003/361/EC[20], shall be encouraged.
2.           More specifically, the S2R
Joint Undertaking shall seek to develop, integrate, demonstrate and validate innovative
technologies and solutions that uphold the strictest safety standards and the
value of which can be measured against the following key performance indicators,
inter alia:
(a)         
a 50% reduction of the life-cycle cost of the
railway transport system, through a reduction of the costs of developing,
maintaining, operating and renewing infrastructure and rolling stock, as well
as through increased energy efficiency;
(b)         
a 100% increase in the capacity of the railway
transport system, to meet increased demand for passenger and freight railway
services; 
(c)         
a 50% increase in the reliability and
punctuality of rail services; 
(d)        
the removal of remaining
technical obstacles holding back the rail sector in terms of interoperability
and efficiency, in particular by endeavouring to close
points which remain open in Technical Specifications for Interoperability
(TSIs) due to lack of technological solutions and by ensuring
that all systems and solutions developed by the S2R Joint Undertaking are fully
interoperable;
(e)         
the reduction of negative externalities linked
to railway transport, in particular noise, vibrations, emissions and other
environmental impacts.
Article 3 – Union financial contribution
1.           The maximum Union financial
contribution to the Shift2Rail initiative shall be EUR 450 million, including
EFTA contributions, paid from the appropriations in the general budget of the
Union allocated to the Horizon 2020 Specific Programme implementing the Horizon
2020 Framework Programme, in accordance with the relevant provisions of Article
58(1)(c)(iv) and Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012 for
bodies referred to in Article 209 of that Regulation. This amount includes:
(a)         
a maximum contribution to the S2R Joint
Undertaking, to cover administrative costs and operational costs, of EUR 398 million.
The maximum Union contribution to cover administrative costs shall be EUR 13.5
million.
(b)         
an additional amount of maximum EUR 52 million,
earmarked under the H2020 Transport Work Programme 2014-2015. The management of
this additional contribution may be taken over by S2R Joint Undertaking once it
achieves the operational capacity to implement its own budget.
2.           Additional
funds complementing the contribution referred to in paragraph 1 may be
allocated from other Union instruments to support
actions for the deployment of
mature outcomes of the S2R Joint Undertaking.
3.           The arrangements for the Union
contribution shall be set out in a delegation agreement and annual transfer of
funds agreements, which shall be concluded between the Commission, on behalf of
the Union, and the S2R Joint Undertaking. 
4.           The delegation agreement referred
to in paragraph 3 shall address the elements set out in Article 58(3) and
Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012 and in Article 40 of
Commission delegated Regulation (EU) No 1268/2012 as well as inter alia the
following:
(a)         
the requirements for the S2R Joint Undertaking's
contribution regarding the relevant performance indicators referred to in Annex
II to Decision No …/EU [the Specific Programme implementing the Horizon 2020
Framework Programme];
(b)         
the requirements for the S2R Joint Undertaking's
contribution in view of the monitoring referred to in Annex III to Decision No
…/EU [the Specific Programme implementing the Horizon 2020 Framework
Programme];
(c)         
the specific performance indicators related to
the functioning of the S2R Joint Undertaking;
(d)        
the arrangements regarding the provision of data
necessary to ensure that the Commission is able to draft its research and
innovation policy and to meet its dissemination and reporting obligations;
(e)         
the use of and changes to human resources, in
particular recruitment by function group, grade and category, the
reclassification exercise and any changes to the number of staff members.
Article 4 – Contributions of Members
other than the Union
1.           Each member of the S2R Joint
Undertaking other than the Union shall make or arrange for its affiliated
entities to make its respective contribution. The total contribution from all
members other than the Union shall be of at least EUR 470 million over the
period defined in Article 1.
2.           The contribution referred
to in paragraph 1 shall consist of the following:
(a)         
contributions to the S2R Joint Undertaking of at
least EUR 350 million, as laid down in clause 15(2) and clause 15(3)(b) of the
Statutes set out in Annex I, including at least EUR 200 million from the Founding
Members other than the Union and their affiliated entities, and at least EUR
150 million from Associated Members and their affiliated entities; 
(b)         
in-kind contributions of at least EUR 120
million, of which at least EUR 70 million from the Founding Members other than
the Union and their affiliated entities, and at least EUR 50 million from Associated
Members and their affiliated entities, consisting of the costs incurred by them
in implementing additional activities outside the work plan of the S2R Joint
Undertaking, which are complementary to this work plan and contribute to the
objectives of the S2R Master Plan. Other Union funding programmes may support
those costs in compliance with the applicable rules and procedures. In such
cases, Union financing shall not substitute for the in-kind contributions from
the Members other than the Union or their affiliated entities.
The costs referred to in point (b) shall not be
eligible for financial support by the S2R Joint Undertaking. The corresponding
activities shall be set out in the membership agreement referred to in clause
3(2) of the Statutes in Annex I, indicating the estimated value of those
contributions.
3.           The Members of the S2R
Joint Undertaking other than the Union shall report each year by 31 January to
the Governing Board of the S2R Joint Undertaking on the value of the
contributions referred to in paragraph 2 made in each of the previous financial
years. 
4.           For the purpose of valuing
the in kind contributions referred to in point (b) of paragraph 2 and clause 15(3)(b)
of the Statutes set out in Annex I, the costs shall be determined according to
the usual cost accounting practices of the entities concerned, to the
applicable accounting standards of the country where each entity is
established, and to the applicable International Accounting Standards /
International Financial Reporting Standards. The costs shall be certified by an
independent external auditor appointed by the entity concerned. The valuation
of the contributions shall be verified by the S2R Joint Undertaking. In case of
remaining uncertainties, the valuation may be audited by the S2R Joint
Undertaking, as referred to in clause 20 of the Statutes.
5.           Any member of the S2R
Joint Undertaking other than the Union that fails to meet its commitments
concerning the contributions referred to in paragraph 2 within six months of
the time-limit set out in its membership agreement shall be disqualified from
voting in the Governing Board until such time as its obligations have been met.
If the obligations have still not been met upon expiry of an additional
six-month period, its membership shall be revoked. 
6.           Further to paragraph 5, the
Commission may terminate, proportionally reduce or suspend the Union financial
contribution to the S2R Joint Undertaking or trigger the winding up procedure
referred to in clause 23(2) of the Statutes set out in Annex I if those members
or their affiliated entities do not contribute, contribute only partially or
contribute late with regard to the contributions referred to in paragraph 2.
Article 5 – Financial Rules
The S2R Joint Undertaking shall adopt its
specific financial rules in accordance with Article 209 of Regulation (EU,
Euratom) No 966/2012 and Regulation (EU) No … [Delegated Regulation on the Model
Financial Regulation for bodies referred to in Article 209 of the Financial
Regulation]. 
Article 6 – Staff
1.           The Staff Regulations of
Officials and the Conditions of Employment of other Servants of the European Union
as laid down by Council Regulation (EEC, Euratom, ECSC) No 259/68[21] and the rules adopted by
agreement between the institutions of the Union for the purpose of giving
effect to those Staff Regulations and Conditions of Employment of Other
Servants shall apply to the staff employed by the S2R the Joint Undertaking.
2.           The Governing Board shall
exercise, with respect to the staff of the S2R Joint Undertaking, the powers
conferred by the Staff Regulations on the Appointing Authority and by the
Conditions of Employment of Other Servants on the Authority Empowered to
Conclude Contract of Employment (hereinafter "the appointing authority
powers"). 
The Governing Board shall adopt, in accordance
with Article 110 of the Staff Regulations, a decision based on Article 2
paragraph 1 of the Staff Regulations and on Article 6 of the Conditions of
Employment of Other Servants delegating the relevant appointing authority
powers to the Executive Director and defining the conditions under which this
delegation of powers can be suspended. The Executive Director is authorised to
sub-delegate those powers.
Where exceptional circumstances so require, the
Governing Board may, by way of a decision, temporarily suspend the delegation
of the appointing authority powers to the Executive Director and those
sub-delegated by the latter and exercise them itself or delegate them to one of
its members or to a staff member of the S2R Joint Undertaking other than the
Executive Director.
3.           The Governing Board shall
adopt the appropriate implementing rules to the Staff Regulations and the
Conditions of Employment of Other Servants in accordance with Article 110 of
the Staff Regulations.
4.           The staff resources shall
be determined in the staff establishment plan of the S2R Joint Undertaking indicating
the number of temporary posts by function group and by grade and the number of
contract staff expressed in full-time equivalents, in line with its annual
budget. 
5.           The staff of the S2R Joint
Undertaking shall consist of temporary staff and contract staff. 
6.           All costs related to the
staff shall be borne by the S2R Joint Undertaking.
Article 7 – Seconded national experts
and trainees
1.           The S2R Joint Undertaking
may make use of seconded national experts and trainees not employed by the S2R Joint
Undertaking. The number of seconded national experts expressed in full-time
equivalents shall be added to information on staff as referred to in Article
6(4) of this Regulation in line with the annual budget.
2.           The Governing Board shall
adopt a decision laying down rules on the secondment of national experts to the
S2R Joint Undertaking and on the use of trainees.
Article 8 – Privileges and immunities
The Protocol on the Privileges and
Immunities of the Union shall apply to the S2R Joint Undertaking and its staff.
Article 9 – Liability of the S2R Joint
Undertaking
1.           The contractual liability
of the S2R Joint Undertaking shall be governed by the relevant contractual
provisions and by the law applicable to the agreement, decision or contract in
question.
2.           In the case of
non-contractual liability, the S2R Joint Undertaking shall, in accordance with
the general principles common to the laws of the Member States, make good any
damage caused by its staff in the performance of their duties.
3.           Any payment by the S2R Joint
Undertaking in respect of the liability referred to in paragraphs 1 and 2 and
the costs and expenses incurred in connection therewith shall be considered as
expenditure of the S2R Joint Undertaking and shall be covered by its resources.
4.           The S2R Joint Undertaking
shall be solely responsible for meeting its obligations.
Article 10 – Jurisdiction of the Court
of Justice and applicable law
1.           The Court of Justice shall
have jurisdiction under the conditions laid down in the Treaty as well as in
the following cases:
(a)         
in any dispute between the members which relates
to the subject matter of this Regulation;
(b)         
pursuant to any arbitration clause contained in agreements,
decisions or contracts concluded by the S2R Joint Undertaking;
(c)         
in disputes related to compensation for damage
caused by the staff of the S2R Joint Undertaking in the performance of their
duties;
(d)        
in any dispute between the S2R Joint Undertaking
and its servants within the limits and under the conditions laid down in the
Staff Regulations of Officials and the Conditions of Employment of Other
Servants of the European Union.
2.           For any matter not covered
by this Regulation or by other acts of Union law, the law of the State where
the seat of the S2R Joint Undertaking is located shall apply.
Article 11 – Evaluation 
1.           By 31 December 2017, the
Commission shall conduct an interim evaluation of the S2R Joint Undertaking. The
Commission shall send the conclusions of the evaluation, and its observations,
to the European Parliament and to the Council by 30 June 2018.
2.           On the basis of the
conclusions of the interim evaluation referred to in paragraph 1 the Commission
may act in accordance with Article 4(5) or take any other appropriate actions.
3.           Within six months after
the winding up of the S2R Joint Undertaking, but in any event no later than two
years after the triggering of the winding up procedure referred to in clause 23
of the Statutes contained in Annex I, the Commission shall conduct a final
evaluation of the S2R Joint Undertaking. The results of that final evaluation
shall be presented to the European Parliament and to the Council.
Article 12 – Discharge
1.           The discharge of the
budget implementation with regard to the Union contribution to the S2R Joint
Undertaking shall be part of the discharge given by the European Parliament,
upon recommendation of the Council, to the Commission in accordance with the
procedure provided for in Article 319 of the Treaty. 
2.           The S2R Joint Undertaking
shall fully cooperate with the institutions involved in the discharge procedure
and provide, as appropriate, any necessary additional information. In this
context, it may be requested to be represented in meetings with the relevant
institutions or bodies and assist the Commission authorising officer by
delegation.
Article 13 – Ex-post
audits
1.           Ex-post audits of
expenditure on indirect actions shall be carried out by the S2R Joint
Undertaking in accordance with Article 23 of Regulation (EU) No … [the Horizon
2020 Framework Programme] as part of the Horizon 2020 Framework Programme
indirect actions.
2.           To ensure coherence, the
Commission may decide to carry out the audits referred to in paragraph 1. 
Article 14 – Protection
of the financial interests of the members
1.           Without prejudice to
clause 19(4) of the Statutes set out in Annex I, the S2R Joint Undertaking
shall grant Commission staff and other persons authorised by the S2R Joint
Undertaking or the Commission, 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.
2.           The European Anti-fraud
Office (OLAF) may carry out investigations, including on-the-spot checks and
inspections, in accordance with the provisions and procedures laid down in Regulation
(EU, Euratom) No 883/2013 of the European Parliament and of the Council[22] and Council Regulation
(Euratom, EC) No 2185/96 of 11 November 1996[23]
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
Regulation.
3.           Without prejudice to
paragraphs 1 and 2, contracts, agreements and decisions, resulting from the
implementation of this Regulation shall contain provisions expressly empowering
the Commission, the S2R Joint Undertaking, the Court of Auditors and OLAF to
conduct such audits and investigations, according to their respective
competences.
4.           The S2R Joint Undertaking
shall ensure that the financial interests of its members are adequately
protected by carrying out or commissioning appropriate internal and external
controls.
5.           The S2R Joint Undertaking
shall accede to the Interinstitutional Agreement of 25 May 1999 between the
European Parliament, the Council and the Commission concerning internal investigations
by OLAF[24].
The S2R Joint Undertaking shall adopt the necessary measures needed to
facilitate internal investigations conducted by OLAF.
Article 15 – Confidentiality
Without prejudice
to Article 16, the S2R Joint Undertaking shall ensure the protection of
sensitive information whose disclosure could damage the interests of its
Members or of participants in the activities of the S2R Joint Undertaking. 
Article 16 – Transparency
1.           Regulation (EC) No
1049/2001 of the European Parliament and of the Council of 30 May 2001
regarding access to European Parliament, Council and Commission documents[25] shall apply to
documents held by the S2R Joint Undertaking.
2.           The S2R Joint Undertaking
shall adopt practical arrangements for implementing Regulation (EC) No
1049/2001.
3.           Without prejudice to
Article 10, decisions taken by the S2R Joint Undertaking pursuant to Article 8
of Regulation (EC) No 1049/2001 may form the subject of a complaint to the
Ombudsman under the conditions laid down in Article 228 of the Treaty.
4.           The S2R Joint Undertaking
shall adopt practical arrangements for implementing Regulation (EC) No
1367/2006 of the European Parliament and of the Council of 6 September 2006 on
the application of the provisions of the Aarhus Convention on Access to
Information, Public Participation in Decision-making and Access to Justice in
Environmental Matters to Community institutions and bodies[26]. 
Article 17 – Rules for participation and
dissemination
Regulation (EU) No … [Rules for
participation and dissemination in Horizon 2020] shall apply to the actions
funded by the S2R Joint Undertaking. In accordance with that Regulation, the
S2R Joint Undertaking shall be considered as a funding body and shall provide
financial support to indirect actions as set out in clause 2 of the Statutes
contained in Annex I.
Article 18 – Support from the host State
An administrative agreement may be
concluded between the S2R Joint Undertaking and the State where its seat is
located concerning privileges and immunities and other support to be provided
by this State to the S2R Joint Undertaking.
Article 19 – Initial actions
1.           The Commission shall be
responsible for the establishment and initial operation of the S2R Joint
Undertaking until it has the operational capacity to implement its own budget.
The Commission shall carry out, in accordance with Union law, all necessary
actions in collaboration with the other Members and with the involvement of the
competent bodies of the S2R Joint Undertaking.
2.           For that purpose, 
(a)         
until the Executive Director takes up his duties
following his/her appointment by the Governing Board in accordance with clause 9
of Annex I, the Commission may designate a Commission official to act as
interim Executive Director and exercise the duties assigned to the Executive
Director who may be assisted by a limited number of Commission officials:
(b)         
by derogation from Article 6 (2) of this
Regulation, the interim Director shall exercise the appointing authority
powers;
(c)         
the Commission may assign a limited number of
its officials on an interim basis.
3.           The interim Executive
Director may authorise all payments covered by the appropriations provided in
the annual budget of the S2R Joint Undertaking once approved by the Governing Board
and may conclude agreements, decisions and contracts, including staff contracts
following the adoption of the S2R Joint Undertaking's staff establishment plan.
4.           The interim Executive
Director shall in common accord with the Executive Director of the S2R Joint
Undertaking and subject to the approval of the Governing Board determine the
day on which the S2R Joint Undertaking has the capacity to implement its own
budget. From that day, the Commission shall abstain from making commitments and
executing payments for the activities of the S2R Joint Undertaking.
Article 20 – Entry into force
This Regulation shall enter into force on
the twentieth day following that of its publication in the Official Journal
of the European Union.
This Regulation shall be binding
in its entirety and directly applicable in the Member States.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
LEGISLATIVE
FINANCIAL STATEMENT
1.           FRAMEWORK
OF THE PROPOSAL/INITIATIVE 
              1.1.    Title
of the proposal/initiative

              1.2.    Policy area(s) concerned in the ABM/ABB structure
              1.3.    Nature of the proposal/initiative 
              1.4.    Objective(s) 
              1.5.    Grounds for the proposal/initiative 
              1.6.    Duration and financial impact 
              1.7.    Management mode(s) 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
LEGISLATIVE FINANCIAL STATEMENT
1.           FRAMEWORK
OF THE PROPOSAL/INITIATIVE 
1.1.        Title
of the proposal/initiative 
Proposal for a Council Regulation establishing the Shift2Rail Joint
Undertaking a
1.2.        Policy
area(s) concerned in the ABM/ABB structure[27] 
Policy area: Title 6 - Transport
Activity: Chapter 06 03 "Horizon 2020: research and innovation
related to transport"
1.3.        Nature
of the proposal/initiative 
X The proposal/initiative relates to a new action 
¨ The proposal/initiative relates to a new action
following a pilot project/preparatory action[28]

¨ The proposal/initiative relates to the extension of
an existing action 
¨ The proposal/initiative relates to an action
redirected towards a new action 
1.4.        Objective(s)
1.4.1.     The
Commission's multiannual strategic objective(s) targeted by the
proposal/initiative 
The general objective of the proposed initiative is to better align
EU rail research and innovation efforts to support the completion of the Single
European Railway Area, while accelerating the market take-up of innovative
solutions, thereby increasing the competitiveness of the EU rail sector. 
1.4.2.     Specific
objective(s) and ABM/ABB activity(ies) concerned 
Specific objective No
(1)         
Foster focused, coordinated and long-term
investment in EU rail research and innovation
(2)         
Increase the leverage of EU rail research and
innovation funding
(3)         
Establish sustained networks and knowledge
exchange between diverse stakeholders
(4)         
Mitigate risks linked to innovation
(5)         
Increase the operational performance and
effectiveness of rail research and innovation
ABM/ABB activity(ies) concerned
06.03.03.01, Achieving a resource-efficient,
environmentally-friendly, safe and seamless European transport system
1.4.3.     Expected
result(s) and impact
The initiative is expected to accelerate the penetration of
technological innovations that will support the creation of a truly integrated
and interoperable EU railway market, thereby increasing the competitiveness of
the EU rail sector, vis-à-vis both other transport modes and foreign
competitors. This will, in turn, contribute to raising the quality, reliability
and cost-efficiency of EU rail services. 
1.4.4.     Indicators
of results and impact 
The detailed framework for monitoring and evaluation will be
developed by the S2R Joint Undertaking, but the processes will include project
level and work package monitoring and reporting on a regular (quarterly) basis,
based on a concise set of reliable key performance indicators (KPIs). 
1.5.        Programme
level monitoring and reporting, based on project and work package data, and
including the monitoring of the quality of deliverables against a set of
satisfaction criteria; the monitoring of project management to verify its
overall quality and the compliance with the strategic work programme. Grounds for the proposal/initiative 
1.5.1.     Requirement(s)
to be met in the short or long term 
To set-up the Joint Undertaking as a new structure of Partnership
between the Commission and Industry for research and innovation funding.
To define in a strategic Master Plan the priority research and
innovation activities, including large-scale demonstration activities, required
to achieve the objectives of the JU.
To mobilise public and private sector funds for financing the
activities of the strategic Master Plan.
To organise competitive calls for proposals, evaluation and
selection of projects.
To monitor and follow up financial and scientific aspects of
projects.
To set-up and implement all procedures of the S2R Joint Undertaking
including financial auditing.
To organise any other activity linked to the S2R Joint Undertaking.
1.5.2.     Added value of EU involvement 
Levels of rail R&I funding have historically been low and what
investment does take place suffers from fragmentation and inefficiencies, due
to significant differences among national programmes and railway systems. The
pooling and coordination of R&I efforts at EU level stands a better chance
of success given the transnational nature of the infrastructure and
technologies to be developed in support of the SERA, and the need to achieve a
sufficient mass of resources. Action at EU level will help to rationalise
research programmes and ensure interoperability of the systems developed. This
standardisation will open a wider market and promote competition. 
1.5.3.     Lessons
learned from similar experiences in the past 
Past rail research and innovation efforts at EU level have not
succeeded in supporting new technologies enabling the further integration of
diverse national railway ecosystems and of different rail subsystems.
Furthermore, the market uptake and impact of EU rail research and innovation
projects under previous framework programmes has been low and slow.
The EU’s new programme for research and innovation, Horizon 2020,
underlines the need to improve the efficiency of EU funding by pooling together
existing research and innovation efforts and expertise, namely through
Public-Private Partnerships. EU level public-private partnerships in research
and innovation were first introduced in the 7th research Framework Programme
(FP7), in the form of Joint Undertakings established under Article 187 of the
Treaty on the Functioning of the European Union (TFEU). 
Successive evaluations of these experiences have highlighted the
beneficial impacts to Europe's economy and society of better coordinating EU
R&I funding. 
Evaluations of existing Joint Undertakings have also raised the need
for stronger commitments from industry partners, with clearer measurement of
these commitments and the associated leverage effect, as well as the need to
provide them with clear objectives and to ensure greater openness towards new
participants.
1.5.4.     Compatibility
and possible synergy with other appropriate instruments 
There may be synergies between funding actions in Horizon 2020 and
funds of Member States and Regions. The stable nature of the Joint Undertaking
will give confidence to potential outside partners, thus helping to attract
funding from other sources. 
Also, synergies can be considered with other EU-level instruments,
such as the Connecting Europe Facility (CEF).
1.6.        Duration
and financial impact 
X Proposal/initiative of limited
duration 
–     
X  Proposal/initiative in effect from 01/01/2014
to 01/01/2024
–     
X  Financial impact from 2014 to 2020 for the
commitment appropriations and from 2014 to 2024 for the payment appropriations.
¨ Proposal/initiative of unlimited
duration
–     
Implementation with a start-up period from YYYY
to YYYY,
–     
followed by full-scale operation.
1.7.        Management
mode(s) planned[29] 
¨ Direct management by the Commission
–     
¨ by its departments, including by its staff in the Union
delegations; 
–     
¨  by the executive agencies; 
¨ Shared management with the Member States 
X Indirect management by
delegating implementation tasks to:
–     
¨ third countries or the bodies they have designated;
–     
¨ international organisations and their agencies (to be specified);
–     
¨the EIB and the European Investment Fund;
–     
X bodies referred to in Article 209 of the
Financial Regulation;
–     
¨ public law bodies;
–     
¨ bodies governed by private law with a public service mission to the
extent that they provide adequate financial guarantees;
–     
¨ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that
provide adequate financial guarantees;
–     
¨ persons entrusted with the implementation of specific actions in
the CFSP pursuant to Title V of the TEU, and identified in the relevant basic
act.
–       If more than one management mode is
indicated, please provide details in the "Comments" section.
Comments 
No comments
2.           MANAGEMENT
MEASURES 
2.1.        Monitoring
and reporting rules 
Specify frequency and conditions. 
The S2R Joint Undertaking will be monitored through intermediary
contacts and as provided in clause 19 of the Statutes.
As an PPP body under Article 209 FR, the S2R Joint Undertaking
functions under strict monitoring rules. Monitoring is performed through:
- the supervision of the Governing Board;
- mid-term and final evaluations by external experts (every 3 years
and at the end of the programme, under the supervision of the Commission).
2.2.        Management
and control system 
2.2.1.     Risk(s) identified 
The risks assessment was performed in the impact assessment report.
Table 8 in the commission Staff Working Document provides an overview of the
different risks and their assessment (pp. 39-40).
2.2.2.     Internal
control system set up 
The Commission through the Authorising Officer by Delegation will
ensure that the rules applicable to the S2R Joint Undertaking fully comply with
the requirements of Article 60 and 61 of the Financial Regulation. 
The internal control framework for the S2R Joint Undertaking will be
built on:
-the implementation of the Internal Control Standards offering at
least equivalent guarantees to those of the Commission;
-procedures for selecting the best projects through independent
evaluation, and for translating them into legal instruments;
- project and contract management throughout the lifetime of every
project; 
-ex-ante checks on 100% of claims, including receipt of audit
certificates and ex-ante certification of cost methodologies;
- ex post audits on a sample of claims as part of the Horizon 2020
ex-post audits;
- and scientific evaluation of project results.
2.2.3.     Costs
and benefits of the controls 
The Commission's internal auditor shall exercise the same powers
over the Joint Undertaking as those exercised in respect of the Commission.
Moreover, the Governing Board may arrange, as appropriate, for the
establishment of an internal audit capability of the Joint Undertaking. 
The Executive Director of the S2R Joint Undertaking, as Authorising
Officer, will be required to introduce a cost-effective system of internal
control and management. He/she will be required to report to the Commission on
the internal control framework adopted.
The Commission will monitor the risk of non-compliance through the
reporting system that it will develop, as well as by following the results of
ex post audits on the recipients of EU funds from the S2R Joint Undertaking, as
part of ex post audits covering the whole of the Horizon 2020.
The control system established will need to take account of the
strong feeling, amongst the recipients of EU funds as well as amongst the
legislative authority, that the control burden required to attain an error
limit of 2% has become too great. This runs the risk of lowering the
attractiveness of the Union's Research programme, and so negatively affecting
Union research and innovation.
2.2.4.     Expected
level of risk of error 
As the rules of participation in the S2R Joint Undertaking are the
same as those that the Commission will use, and with a population of
beneficiaries with a similar risk profile to those of the Commission, it can be
expected that the level of error will be similar to that established by the
Commission for Horizon 2020, i.e. to give reasonable assurance that the risk of
error over the course of the multiannual expenditure period is, on an annual
basis, within a range of 2-5 %, with the ultimate aim to achieve a residual
level of error as close as possible to 2 % at the closure of the multi-annual
programmes, once the financial impact of all audits, correction and recovery
measures have been taken into account.
2.3.        Measures
to prevent fraud and irregularities 
Specify existing or
envisaged prevention and protection measures.
The Commission will ensure that appropriate measures are in place to
ensure that, when actions financed under this Regulation 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
deterrent penalties.
According to point 2.2.1 of the Commission Anti-Fraud Strategy
(COM(2011) 376 final), the Commission will develop close cooperation and
synergies and also promote the relevant standards set out in this Anti-fraud
Strategy within EU institutions including joint undertakings.
The S2R Joint Undertaking will cooperate with the Commission
services in matters relating to fraud and irregularity. The S2R Joint
Undertaking shall adopt an anti-fraud strategy, proportionate to fraud risks
taking into account the costs and benefits of the measures to be implemented. Furthermore,
the Court of Auditors shall have the power of audit, on the basis of documents
and on-the spot, over all grant beneficiaries, contractors and subcontractors
who have received Union funds under the Programme.
The European Anti-fraud Office (OLAF) may carry out on-the-spot
checks and inspections on economic operators concerned directly or indirectly
by such funding in accordance with the procedures laid down in Regulation
(Euratom, EC) No 2185/96 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 a grant agreement or grant decision
or a contract concerning Union funding.
3.           ESTIMATED
FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 
3.1.        Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected 
·      New budget lines requested 
In order of multiannual financial framework
headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number 1A [Heading Competiveness for growth and jobs] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation 
 1A || 06.03.07.33 – Shift2Rail (S2R) Joint Undertaking – Support expenditure 06.03.07.34 – Shift2Rail (S2R) Joint Undertaking || Diff. || YES || YES || YES || YES 
The contribution to these
budget lines is expected to come from:
DG MOVE (budget lines 06.03 03 01 and 06.01.05.03): 70%
DG RTD (budget lines 08.02.03.04 and 08.01.05.03):
30%
The yearly financial contribution per
budget line is indicated in the table below*.
 Budget line || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
 06.03.03.01 || 36.000 || 31.000 || 31.000 || 36.400 || 49.000 || 58.800 || 65.834** || 308.034 
 06.01.05.03[30] || 0.336 || 0.947 || 1.137 || 1.136 || 1.137 || 1.136 || 1.137 || 6.966 
 08.02.03.04 || 16.000 || 13.000 || 13.000 || 15.600 || 21.000 || 25.200 || 28.215** || 132.015 
 08.01.05.03 || 0.144 || 0.406 || 0.487 || 0.487 || 0.487 || 0.487 || 0.487 || 2.985 
 TOTAL || 52.480 || 45.353 || 45.623 || 53.624 || 71.624 || 85.623 || 95.673 || 450.000 
*This table
includes the amount of EUR 52 million (of which 70% financed by DG MOVE and 30%
financed by DG RTD) that will be committed in 2014 for funding collaborative
rail research actions under the H2020 Transport Work Programme 2014-2015, while
awaiting the launch of the S2R Joint Undertaking. The management of these
actions and the corresponding budget, as well as any amounts not committed following
the calls for proposals, may be taken over by S2R Joint Undertaking once it
achieves the operational capacity to implement its own budget.
**Including EUR
2,484 million on line 06.03.03.01 and EUR 1,065 million on line 08.01.05.03, totaling
EUR 3,594 million to be frontloaded in 2020 for the administrative costs of 2021-2024.

3.2.        Estimated
impact on expenditure 
3.2.1.     Summary
of estimated impact on expenditure 
EUR million (to three decimal places)
 Heading of multiannual financial framework || 1A || Heading 1A – Competiveness for growth and jobs 
   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 S2R Joint Undertaking ||   || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year 2021 || Year 2022 || Year 2023 || Year 2024 || TOTAL 
 Title 1 - Staff expenditure || Commitments || (1) || 0.080 || 0.453 || 0.524 || 0.523 || 0.524 || 0.523 || 1.527 || 0.000 || 0.000 || 0.000 || 0.000 || 4.154 
 Payments || (2) || 0.080 || 0.453 || 0.524 || 0.523 || 0.524 || 0.523 || 0.524 || 0.430 || 0.305 || 0.179 || 0.089 || 4.154 
 Title 2 - Infrastructure and operating expenditure || Commitments || (1a) || 0.400 || 0.900 || 1.100 || 1.100 || 1.100 || 1.100 || 3.646 || 0.000 || 0.000 || 0.000 || 0.000 || 9.346 
 Payments || (2a) || 0.400 || 0.900 || 1.100 || 1.100 || 1.100 || 1.100 || 1.100 || 0.900 || 0.700 || 0.500 || 0.446 || 9.346 
 Title 3 - Operational expenditure || Commitments || (3a) || 52.000 || 44.000 || 44.000 || 52.000 || 70.000 || 84.000 || 90.500 || 0.000 || 0.000 || 0.000 || 0.000 || 436.500 
 Payments || (3b) || 0.000 || 50.000 || 58.000 || 58.000 || 58.000 || 58.000 || 58.000 || 44.000 || 30.000 || 16.000 || 6.500 || 436.500 
 TOTAL appropriations S2R Joint Undertaking || Commitments || 1+1a +3a || 52.480 || 45.353 || 45.624 || 53.623 || 71.624 || 85.623 || 95.673 || 0.000 || 0.000 || 0.000 || 0.000 || 450.000 
 Payments || 2+2a+3b || 0.480 || 51.353 || 59.624 || 59.623 || 59.624 || 59.623 || 59.624 || 45.330 || 31.005 || 16.679 || 7.035 || 450.000 
   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
The S2R Joint
Undertaking is based on a shared costs basis with industry. Expenditure in the
above table relates only to the Union contribution to the S2R Joint
Undertaking. 
ERA will play an
observer role. This role will be fulfilled with existing resources. No
additional staff or appropriations will be requested for these tasks.
EUR million (to three decimal places)
 Heading of multiannual financial framework || 1A || Administrative expenditure in the Commission 
   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
   || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Years 2021 and later || TOTAL 
 DG MOVE 
 Ÿ Human resources || 0.419 || 0.326 || 0.326 || 0.326 || 0.326 || 0.326 || 0.326 || p.m. || 2.376 
 Ÿ Other administrative expenditure ||   ||   ||   || 0.07 ||   ||   || 0.07 ||   || 0.14 
 TOTAL DG MOVE || Appropriations || 0.419 || 0.326 || 0.326 || 0.396 || 0.326 || 0.326 || 0.396 || p.m. || 2.516 
 DG RTD 
 Ÿ Human resources || 0.179 || 0.140 || 0.140 || 0.140 || 0.140 || 0.140 || 0.140 || p.m. || 1.018 
 Ÿ Other administrative expenditure ||   ||   ||   || 0.03 ||   ||   || 0.03 ||   || 0.06 
 TOTAL DG RTD || Appropriations || 0.179 || 0.140 || 0.140 || 0.170 || 0.140 || 0.140 || 0.170 || p.m. || 1.078 
 TOTAL DG MOVE & RTD || Appropriations || 0.598 || 0.466 || 0.466 || 0.566 || 0.466 || 0.466 || 0.566 || p.m. || 3.594 
 TOTAL appropriations under HEADING 1 of the multiannual financial framework || (Total commitments = Total payments) || 0.598 || 0.466 || 0.466 || 0.566 || 0.466 || 0.466 || 0.566 || p.m. || 3.594 ||   ||   ||   ||   
The Union
contribution to the Joint Undertaking is shared by DG MOVE (70%) and DG RTD
(30%). 
EUR million (to three decimal places)
   ||   ||   || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Years 2021 and later || TOTAL 
 TOTAL appropriations under HEADING 1 of the multiannual financial framework || Commitments ||   || 53.078 || 45.819 || 46.090 || 54.189 || 72.090 || 86.089 || 96.239 || 0.000 || 453.594 
 Payments ||   || 1.078 || 51.819 || 60.090 || 60.189 || 60.090 || 60.089 || 60.190 || 100.049 || 453.594 
3.2.2.     Estimated
impact on operational appropriations 
–     
¨  The proposal/initiative does not require the use of operational
appropriations 
–     
X  The proposal/initiative requires the use of
operational appropriations, as explained below:
Commitment appropriations in EUR million (to three
decimal places)
 Indicate objectives and outputs || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year 2021 || Year 2022 || Year 2023 || Year 2024 || Total 
 Specific objective: Coordination of all relevant rail R&I activities in the EU and in line with the S2R Master Plan. || 52.000 || 44.000 || 44.000 || 52.000 || 70.000 || 84.000 || 90.500 || 0 || 0 || 0 || 0 || 436.500 
3.2.3.     Estimated
impact on appropriations of an administrative nature
3.2.3.1.  Summary 
–     
¨  The proposal/initiative does not require the use of appropriations
of an administrative nature 
–     
X  The proposal/initiative requires the use of
appropriations of an administrative nature, as explained below:
Staffing
numbers in FTEs
   || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year 2021 || Year 2022 || Year 2023 || Year 2024 || TOTAL 
 Total Temporary agents || 0.5 || 4 || 4 || 4 || 4 || 4 || 4 || 4 || 3 || 2 || 1 || 34.5 
 Of which AD Grades || 0.5 || 4 || 4 || 4 || 4 || 4 || 4 || 4 || 3 || 2 || 1 || 34.5 
 Of which AST Grades || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 
 Contract agents || 2 || 10 || 13 || 13 || 13 || 13 || 13 || 9 || 6 || 3 || 1.5 || 96.5 
 Seconded National Experts || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 
 TOTAL || 2.5 || 14 || 17 || 17 || 17 || 17 || 17 || 13 || 9 || 5 || 2.5 || 131 
 * In the case of PPP bodies under Article 209 FR, this table is included for information purposes. Staffing implications of the joint undertakings have been considered in the context of the decisions on resources relating to the new management modes under the Multi Annual Financial Framework. The result ensures budget neutrality compared to the level of administrative expenditures foreseen for the implementation of Horizon 2020. Staff numbers have been calculated based on a benchmark of existing joint undertakings. Staff numbers would rise gradually between 2014 and 2016, and then remain stable until 2020. They would then be phased out as of 2021 as the S2R Joint Undertaking enters its winding down and legacy management phase. Of course, if the decision is taken to extend the duration of the S2R Joint Undertaking, staff costs in the years 2021 to 2024 would remain similar to levels in 2020. At full speed, staff would likely include: ·         The Executive Director and an advisor/assistant è2 FTEs ·         One head of unit and one secretary for one Financial and Administration Unit and one Programme unit è4 FTEs ·         Staff in the Financial and Administration Unit, including at least one financial and accounting officer, one HR and general administration officer, one communications and stakeholder relations officer, one IT officer and a legal and contractual officer è5 FTEs ·         Staff in the Programme Unit, including at least one project manager for each of the 5 innovation programmes and one in charge of cross-cutting issues è6 FTEs In year 2014, it is estimated that the staff will consist of 6 members of staff (including the Executive Director, and one Head of Unit (AD Grade Temporary Agents), as well as 4 Contract agents) who will be recruited between June and October 2014, hence the equivalent of a total of 2.5 FTEs. In 2024, the number of FTEs is also calculated on the assumption that some members of staff may not work the full year if the Joint Undertaking is phased out.   
 EUR million (to three decimal places) 
 EUR millions || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year 2021 || Year 2022 || Year 2023 || Year 2024 || TOTAL 
 Total Temporary agents || 0.066 || 0.436 || 0.436 || 0.436 || 0.436 || 0.436 || 0.436 || 0.436 || 0.327 || 0.218 || 0.109 || 3.772 
 Of which AD Grades || 0.066 || 0.436 || 0.436 || 0.436 || 0.436 || 0.436 || 0.436 || 0.436 || 0.327 || 0.218 || 0.109 || 3.772 
 Of which AST Grades || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 
 Contract agents || 0.094 || 0.470 || 0.611 || 0.611 || 0.611 || 0.611 || 0.611 || 0.423 || 0.282 || 0.141 || 0.071 || 4.536 
 Seconded National Experts || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 || 0.000 
 TOTAL || 0.160 || 0.906 || 1.047 || 1.047 || 1.047 || 1.047 || 1.047 || 0.859 || 0.609 || 0.359 || 0.180 || 8.308 
Staff costs are
based on the average staff costs calculated by DG BUDG, minus staff overhead
costs, leading to direct staff costs of 109,000 EUR for temporary agents and of
47,000 EUR for contract agents, except in year 2014, where the full cost of the
AD grade official is taken (132,000 EUR), given the higher grades of these
positions.
The human
resources appropriations required will be met by appropriations from the DG
that are already assigned to management of the action and/or have been
redeployed within the DG, together if necessary with any additional allocation
which may be granted to the managing DG under the annual allocation procedure
and in the light of budgetary constraints.
3.2.3.2.   Estimated requirements of human resources 
–     
¨  The proposal/initiative does not require the use of human
resources. 
–     
X  The proposal/initiative requires the use of
human resources, as explained below:
Estimate to be expressed in full time
equivalent units
 Parent DG || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 ||   
 Establishment plan posts (officials and temporary staff) ||   
 XX 01 01 01 (Headquarters and Commission’s Representation Offices) ||   ||   ||   ||   ||   ||   ||   ||   
 XX 01 01 02 (Delegations) ||   ||   ||   ||   ||   ||   ||   ||   
 08 01 05 01 (Indirect research) || 1.5 || 1 || 1 || 1 || 1 || 1 || 1 ||   
 06 01 05 01 (Indirect research) || 2.5 || 2 || 2 || 2 || 2 || 2 || 2 ||   
 10 01 05 01 (Direct research) ||   ||   ||   ||   ||   ||   ||   ||   
 External staff (in Full Time Equivalent: FTE)[1] ||   
 XX 01 02 01 (CA, SNE, INT from the ‘global envelope’) ||   ||   ||   ||   ||   ||   ||   ||   
 XX 01 02 02 (CA, LA, SNE, INT and JED in the delegations) ||   ||   ||   ||   ||   ||   ||   ||   
 XX 01 04 yy[2] || at Headquarters[3] ||   ||   ||   ||   ||   ||   ||   ||   
 in delegations ||   ||   ||   ||   ||   ||   ||   ||   
 06 01 05 02 (CA, SNE, INT - Indirect research) || 1 || 1 || 1 || 1 || 1 || 1 || 1 ||   
 10 01 05 02 (CA, SNE, INT- Direct research) ||   ||   ||   ||   ||   ||   ||   ||   
 Other budget lines (specify) ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL || 5* || 4 || 4 || 4 || 4 || 4 || 4 ||     
*Staffing numbers
within the Commission are higher in 2014 than in the following years given the
need for the Commission to set up the S2R Joint Undertaking, and also to manage
collaborative research projects under the Transport Work Programme 2014-2015,
which will subsequently be taken over by the Joint Undertaking.
From 2015 to 2020, 4
FTEs will be required including 3 AD positions and 1 contract agent. The staff
numbers for the period after 2020 will be decided at a later stage.
 S2R Joint Undertaking || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year 2021 || Year 2022 || Year 2023 || Year 2024 
 Establishment plan posts (officials and temporary staff) 
 Temporary Agents (AD grades) || 0.5 || 4 || 4 || 4 || 4 || 4 || 4 || 4 || 3 || 2 || 1 
 Temporary Agents (AST grades) || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 
 External staff (in Full Time Equivalent: FTE)[1] 
 CA || 2 || 10 || 13 || 13 || 13 || 13 || 13 || 9 || 6 || 3 || 1.5 
 SNE ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 INT ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL || 2.5 || 14 || 17 || 17 || 17 || 17 || 17 || 13 || 9 || 5 || 2.5 
In the
case if PPP bodies under Article 209 FR, this table is included for information
purposes. 
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 || As described in the Statutes of the S2R Joint Undertaking 
 External staff || As described in the Statutes of the S2R Joint Undertaking 
3.2.4.     Compatibility
with the current multiannual financial framework 
–     
X  Proposal/initiative is compatible the current
multiannual financial framework.
–     
¨  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.
–     
¨  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[31].
Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.
3.2.5.     Third-party
contributions 
–     
¨  The proposal/initiative does not provide for co-financing by third
parties. 
–     
X  The proposal/initiative provides for the
co-financing estimated below:
Appropriations in EUR million (to 3 decimal places)
   || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Years 2021 and later || Total 
 Specify the co-financing body – contribution in cash to the administrative costs || 0.480 || 1.353 || 1.624 || 1.623 || 1.624 || 1.623 || 1.624 || 3.549 || 13.500 
 Specify the co-financing body – contribution in kind to the operational costs* || 0.000 || 41.000 || 41.000 || 41.000 || 41.000 || 41.000 || 41.000 || 90.500 || 336.500 
 TOTAL appropriations cofinanced || 0.480 || 42.353 || 42.624 || 42.623 || 42.624 || 42.623 || 42.624 || 94.049 || 350.000 
 Additional activities || 0.000 || 10.000 || 12.000 || 12.000 || 12.000 || 12.000 || 12.000 || 50.000 || 120.000 
 TOTAL third-party commitments || 0.480 || 52.353 || 54.624 || 54.623 || 54.624 || 54.623 || 54.624 || 144.049 || 470.000 

Estimated impact on revenue 
–     
X  Proposal/initiative has no financial impact
on revenue.
–     
¨  Proposal/initiative has the following financial impact:
–                   
¨         on own resources 
–                   
¨         on miscellaneous revenue 
[1]               White Paper on a Roadmap to a Single European Transport
Area – Towards a competitive and resource efficient transport system,
COM/2011/0144 final
[2]               The Fourth Railway Package – Completing the single
European railway area to foster European competitiveness and growth, COM (2013)
25 final
[3]               COM(2013) 494 final
[4]               EC, Sector Overview and Competitiveness Survey of the
Railway Supply Industry, May 2012, p. 100
[5]               Indicative amount in current prices. The amount will
depend on the final agreed amount for DG MOVE and DG RTD for the theme 'Smart,
green and integrated transport' which will be approved by the Budgetary
Authority in the final version of the legislative and financial statement.
[6]               Except for the Union contribution to the
administrative costs.
[7]               The resources to cover the Union contribution to
administrative costs of the S2R Joint Undertaking will be redeployed from
Horizon 2020 administrative lines.
[8]               OJ C , , p. .
[9]               OJ C , , p. .
[10]             COM(2010)2020 final
[11]             White Paper on a Roadmap to a Single European Transport
Area – Towards a competitive and resource efficient transport system,
COM/2011/0144 final
[12]             OJ … [H2020 FP] 
[13]             OJ … [H2020 SP]
[14]             COM(2013) 494 final
[15]             COM (2013) 25 final
[16]             OJ … [H2020 RfP]
[17]             Regulation (EU, Euratom) No 966/2012 of the European
Parliament and of the Council of 25 October 2012 on the financial rules
applicable to the general budget of the Union and repealing Council Regulation
(EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).
[18]             OJ L 362, 31.12.2012, p. 1.
[19]             OJ L 298, 26.10.2012, p. 1.
[20]             Commission Recommendation 2003/361/EC of 6 May 2003
concerning the definition of micro, small and medium-sized enterprises (OJ L
124, 20.5.2003, p. 36)
[21]             OJ 56, 4.3.1968, p. 1
[22]             OJ L 248, 18.9.2013, p.1.
[23]             OJ L 292, 15.11.1996, p. 2-5.
[24]             OJ L 136, 31.5.1999, p. 15.
[25]             OJ L 145, 31.5.2001, p. 43.
[26]             OJ L 264, 25.9.2006, p. 13-19.
[27]             ABM: activity-based management – ABB: activity-based
budgeting.
[28]             As referred to in Article 54(2)(a) or (b) of the
Financial Regulation.
[29]             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
[30]             In case there are not sufficient resources on budget
line 06 01 05 03, the lines 06 01 05 01 and 06 01 05 02 will be used as a source
of funding.
[31]             See points 19 and 24 of the Interinstitutional
Agreement (for the period 2007-2013).