COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a Decision of the European Parliament and of the Council on the participation of the Union in the Partnership for Research and Innovation in the Mediterranean Area (PRIMA) jointly undertaken by several Member States
Date: 2016-10-18
Institutions: Directorate-General for Research and Innovation, European Commission
Subjects: EU Member State, Framework Programme for Research and Development, Mediterranean region (EU), Mediterranean third countries, Union for the Mediterranean, food policy, innovation, research and development, scientific cooperation, water resources

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   EUROPEAN COMMISSION  Brussels, 18.10.2016  SWD(2016) 331 final   COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT  Accompanying the document Proposal for a Decision of the European Parliament and of the Council on the participation of the Union in the Partnership for Research and Innovation in the Mediterranean Area (PRIMA) jointly undertaken by several Member States {COM(2016) 662 final} {SWD(2016) 332 final}  
 
 
Executive Summary Sheet 

Impact assessment - Proposal for a Decision of the European Parliament and of the Council 

on the participation of the European Union in a Partnership for Research and Innovation in the 
Mediterranean Area (PRIMA)  

A. Need for action 
Water  provision  and  food  systems  in  the  Mediterranean  area  are  unsustainably  managed.  This  challenge  is 
being  exacerbated  by  climate  change  and  has  important  downstream  impacts  including  social  and  economic 
stress, instability and external migration. 
A key reason for the unsustainable management of water provision and food systems in the Mediterranean area 
is the lack of a set of common innovative solutions that are adapted to the local realities of the region and easily 
transferable across it, and have been fully piloted and demonstrated on the ground. 
These solutions are not forthcoming because the overall level of R&I investment in the Mediterranean area is not 
commensurate with the size of the regional challenge; investment levels differ greatly between countries; funding 
is not well focused on addressing the water and food challenge; the relevant stakeholders involved – for instance 
private  sector  ones  –  do  not  always  have  sufficiently  strong  R&I  capabilities;  and  the  R&I  and  collaboration 
efforts between EU Member States and Southern and Eastern Mediterranean countries are too scattered (mostly 
governed by bilateral agreements) to have any significant impact. 

What is this initiative expected to achieve?  
The general objective is to develop the fully piloted and demonstrated common innovative solutions in the field of 
water provision and food systems that the Mediterranean region urgently needs, thereby making water provision 
and  food  systems  in  the  Mediterranean  area  more  efficient,  cost-effective  and  sustainable,  and  thereby 
contributing to solving the higher-level problems in the field of nutrition, health, well-being and migration. 
This general objective is translated into the following four specific objectives: 
−  The formulation of a stable, long-term, common strategic R&I agenda in the field of water provision and food 

systems; 

−  The orientation of all national R&I programmes towards the implementation of the strategic R&I agenda; 
−  The structural involvement of all (public and private sector) relevant R&I actors in the implementation of the 
strategic R&I agenda by pooling knowledge and  financial resources so as  to achieve the necessary critical 
mass; 

−  The strengthening of R&I funding and implementation capabilities of all involved actors. 

What is the value added of action at the EU level?  
The initiative fits fully with the new Partnership Framework with third countries under the European Agenda on 
Migration as it addresses  some of the root causes of migration; is  clearly situated at the interchange between 
research,  climate  change,  environment  and  agriculture  policies;  and  exemplifies  the  new  development 
cooperation  model  championed  by  the  new  Partnership  Framework  insofar  as  it  involves  private  investors, 
leverages limited budget resources, and focuses on SMEs and sustainable infrastructure. 
Only  action  at  EU  level  is  capable  of  achieving  a  well-coordinated  and  integrated  programme  reaching  the 
needed  scale,  scope  and  critical  mass  to  deliver  on  the  specific  and  general  objectives.  Action  at  EU  level  is 
characterised  by  a  strong leverage  effect  as  it  mobilises  significant  additional  public  and  private  investment.  It 
also generates impacts that go beyond R&I policy and solutions, thus supporting the EU's external policies and 
efforts to address the root causes of migration. The involvement of the EU in PRIMA is also likely to strengthen 
Europe's  visibility  and  global  responsibility,  in  the  spirit  of  the  EU  Neighbourhood  Policy,  which  encourages 
differentiation and greater mutual ownership with neighbourhood partners. 

B. Solutions 

What  legislative  and  non-legislative  policy  options  have  been  considered?  Is  there  a  preferred 
choice or not? Why?  
Option 0: No policy change - Baseline scenario - Horizon 2020 will continue supporting topics on Water and 
Food  issues  in  general  on  an  ad  hoc  basis.  It  is  unlikely  that  dedicated  initiatives  aimed  at  integrating 
Mediterranean R&I systems would be launched. Individual actions would typically last 3-4 years. Impact would 
be limited. This is not the preferred option. 
Option 1: ERA-NET Cofund action – The main activity under Horizon 2020 would be the implementation of a 
single  (or  a  series)  of  co-funded  joint  call  for  proposals  per  action  resulting  in  the  funding  of  trans-national 
research  and/or  innovation  projects.  Individual  actions  would  typically  last  5  years.  It  would  not  allow  for 

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addressing  substantially  the  innovation  dimension,  since  the  national  programmes  that  would  collaborate  and 
coordinate their activities are mainly addressing research activities of public research organisations. Option 1 is 
not expected to integrate national funding programmes in a common research strategic agenda. This is not the 
preferred option. 
Option 2: PRIMA Joint Programme based on Article 185 TFEU – It enables the EU to make provision for its 
participation  in  research  and  development  programmes  undertaken  by  several  Member  States,  including 
participation  in  the  structures  created  for  the  execution  of  those  programmes.  Article  26  of  the  Horizon  2020 
Framework Programme Regulation specifies the conditions and criteria for identifying and proposing an initiative 
pursuant  to  Article  185  TFEU.  Among  other  criteria,  Article  185  initiatives  may  only  be  proposed  by  the 
Commission in cases where there is a need for a dedicated implementation structure and where there is a high 
level  of  commitment  of  Participating  States  to  integration  at  scientific,  management  and  financial  levels.  This 
option  comprises 
its  complete 
implementation  through  multiple  transnational  calls  for  proposals,  undertaken  by  several  PS  and  implemented 
through a dedicated implementation structure (DIS-funding body). This is typically a long-term commitment (10 
years). The EU would provide financial support, by matching national investments. This option is the one best 
situated  to  achieve  the  specific  and  general  objectives  and  notably  the  realisation  of  a  number  of  pilots  and 
demonstrators in strategically important areas related to water provision and food systems. It takes full account 
of  all  lessons  learned  -  with  respect  to  the  management  of  the  EU  financial  contribution,  the  achievement  of 
impact, etc. – from the implementation of past and on-going Article 185 initiatives. This option is also designed 
so  as  to  ensure  sound  financial  management  and  to  protect  the  financial  interests  of  the  European  Union 
through adequate ex-ante checks, financial reporting, and ex-post verification. 

formulation  of  a  comprehensive  strategic  research  agenda  and 

the 

Who supports which option? 
From the on line Stakeholder consultations, Option 2 is considered to represent the optimal policy option. 
According  to  the  Expert  Group,  as  stated  in  its  report,  Option  2  is  also  considered  representing  the  most 
favourable policy option. 
From  a  broad  policy  perspective,  the  option  to  prioritize  must  be  commensurate  with  the  importance  of  the 
problem to tackle and its acuteness, the need to address it in earnest and without delay, and the ambition and 
commitment  of  the  participants  to  devote  sufficient  resources  and  collective  attention  to  ensure  a  successful 
outcome.  In  this  perspective,  due  to  a  potentially  higher  level  of  effectiveness  for  achieving  the  identified 
objectives,  a  better  efficiency  of  implementation,  and  more  coherence  with  other  policies  and  programmes, 
Option  2  appears  the  most  adequate,  although  not  exempt  from  a  number  of  risks  which  would  have  to  be 
properly mitigated. 

C. Impacts of the preferred option 

What are the benefits of the preferred option (if any, otherwise main ones)? 
The preferred Article 185 option will achieve the rapid integration of national R&I  programmes and activities in 
the  Mediterranean  area.  It  will  ensure  the  efficient  and  effective  delivery  of  fully  piloted  and  demonstrated, 
common innovative, integrated solutions for the sustainable management of water provision and food systems. It 
will  provide  greater  opportunities  for  SMEs  and  other  companies  in  the  food  and  water  sectors  in  the 
Mediterranean  area.  It  will  have  large-scale  positive  environmental  impacts.  It  will  improve  the  livelihoods  of 
farmers. It will produce sizeable positive economic impacts. It will improve nutrition and health for the people of 
the  Mediterranean  area.  And  it  will  contribute  to  greater  political  stability  and  reduced  internal  and  external 
migration. 

What are the costs of the preferred option (if any, otherwise main ones)? 
The initiative requires investing 200 million EUR from Horizon 2020 over the 10-year duration of the PRIMA Joint 
programme. This EU financial contribution matches a similar amount committed by the Participating States (PS). 
A clear division of labour will be established between the EU financial contribution and the financial contribution 
from  the  PS.  The  EU  financial  contribution  will  be  focused  mainly  on  the  R&I  activities  at  higher  technology 
readiness levels in the form of support with the needed critical mass for a limited number of strategically chosen 
pilots and demonstrators. National financial contributions will be focused on R&I activities at lower Technology 
Readiness  Levels,  on  mobility  and  training  actions,  on  networking  activities,  etc.  The  Annual  Work  Plans  will 
ensure the consistency between all activities and  their  orientation towards the achievement of the operational, 
specific and general objectives. 

How will businesses, SMEs and micro-enterprises be affected?  
The initiative will provide businesses, SMEs and micro-enterprises in the Mediterranean area, in particular those 
in the water and food sectors, with greater economic opportunities. In the Mediterranean area, Micro, Small and 
Medium Enterprises constitute a key economic and employment driver. Food industry SMEs account for a large 
share of the total number of SMEs and have much innovation potential. According to the PRIMA Expert Group, 

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half  of  the  food  SMEs  would  be  able  to  perform  innovation  activities,  enabling  them  to  become  involved  to  a 
much greater extent in for instance food industry value chains.  

Will there be significant impacts on national budgets and administrations?  
Under the initiative, Participating states would contribute EUR 200 million. The initiative would fully involve public 
sector  stakeholders  in  all  PS,  including  ministries,  agencies  and  other  funding  entities  within  EU  and  non-EU 
countries  that  have  an  interest  in  the  problems  confronting  the  Mediterranean  area  in  the  domain  of  water 
provision  and  food  systems.  Knowledge  transfer  and  skill  creation  is  considered  a  direct  impact  of  the 
implementation  of  Option  2,  as  it  implies  the  set-up  of  a  new  and  integrated  modus  operandi  towards  the 
Mediterranean region in R&I. 

Will there be other significant impacts?  
The impacts of the Article 185 option are wide-ranging and comprise R&I, industrial, environmental, agricultural, 
nutritional, health, political and migration impacts. . 

D. Follow up 

When will the policy be reviewed?  
In case of an Article 185, effectiveness should be evaluated at both programme level (focusing on whether the 
overall objectives have been achieved) and national level (focusing on individual countries goals). An interim and 
a final independent evaluation are foreseen. The conditions and data requirements for these evaluations need to 
be specified at the start of the Article 185 initiative. 

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